Translating Information into Action


Information must be actionable, if it is to be of value to you. That means it must include a customer profile (most often consisting of demographics and buying behavior—psycho-graphics—that enables you to assign all of your customers to one or another of your defined segments. Unless you’re both ready and able to use the results of all this effort to alter your marketing strategy, your money is probably better spent elsewhere. Segmentation only pays off if you use it to fine tune your marketing program.

If you have computed the lifetime value for each segment, you can now make a very scientific assignment of resources to customer groups. You can be selective in this process. If you choose, focusing on just a few segments—or even one. In fact, that may be a good way to validate your ideas before you institute any large-scale changes in your marketing strategy. The important thing is that you use the information to adapt marketing into a more customer-focused and less product-centered approach.

Often you can finance new marketing initiatives by re-deploying the budgets previously spent in pursuit of unprofitable business, because you can now recognize it for what it is. Screening out can be as important as targeting.

You can then assign an appropriate percentage of your marketing budget to each segment which merits pursuit, echoing the percentage of profits that segment has the potential to generate. Consider members with lower grades within a well-defined, profitable segment as areas of opportunity. You know that companies with a given cluster of needs and buying behaviors can be profitably attracted to your offerings and way of doing business. All that remains is to focus on expanding penetration there.

Put your marketing imagination to work. Because you now understand the priorities of each segment so well, you’ll also know how to determine the most potent messages for each, and the media mix that can best deliver it. In addition, because the economics of each segment are clear, you can develop a plan that matches communications alternatives to allotted budget on a cost-per-contract basis.

As a result, most of your money will be invested where the profit potential for developing loyal customers is the greatest. Whilst this strategy appears to be self-evident, it too seldom happens in real life decision-making, since quantification of potential profitability by market segment is sadly lacking.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

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Leveling the Playing Field


Creating new heroes, designing graded levels of achievement, and establishing broadbanded pay plans are all so important. These techniques provide an environment where money and prestige are spread throughout the organization. Since the employee now knows he can acquire them through a variety of different paths, money and prestige become less of a factor in his decision making. He is free to choose his path based upon his current understanding of his talents and non-talents. He may still make the occasional misstep, but he is much more likely to focus not only toward roles where he excels, but toward roles that bring him lasting satisfaction and roles he yearns to play for a very long time.

On the level playing field, you bear conversations that you never thought you would hear. Conversations like this: “I live my role. I am the best in the company at it. I am making a lot of money doing it. And I am having more of an impact than I ever thought was possible in my life. So I said to my boss, I said, “Your one objective with me is to see to it that I am never promoted again. If you can do that, you have me for your life.”

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

The Intangibility and Measurement of Learning


An important aspect of learning is its intangibility. Learning is non-observable; it takes place within people and can only be inferred from actual behavior. For this reason, it is called an intervening variable. Because it must be inferred from behavior, it is often difficult to measure: other factors influence behavior, and it is sometimes difficult to distinguish what part of the behavior is attributable to learning. Two men may be assigned a task and given instructions on how to accomplish it. One may achieve much better results than the other, but that does not necessarily mean he has learned more. He may have had more ability to begin with, or he may have had a greater motivation to succeed than the other.

Performance is the result of learning, ability, motivation, and a variety of external factors. One man may produce more even having learned less because his ability or motivation enables him to perform more effectively. A student who works hard in a course and learns a great amount may see another student work less hard, appear to learn less, but receive a high grade. Such situations are common both in school and in the business world. The factor sometimes overlooked is the initial degree of skill or knowledge brought to the task, and the resultant effect on performance. Often it is performance that is observed, judged, and rewarded.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Smart People Add, Foolish People Take Away


The most important way we learn is by thoughtful observation. Lessons that teach us success fundamentals are available in every encounter with other people.

Consider this example. You visit a candy store and order a pound of unboxed candy. The person behind the counter puts a big scoop of candy on the scales, maybe 20 ounces, and then begins to take away your candy, piece by piece, until the weight is exactly 16 ounces.

How do you feel? Cheated. Subconsciously, you perceived the big 20-ounce pile of candy as your candy. Now, as the person behind the counter takes some of it away, you feel your candy is being stolen.

Intelligent people behind the counter use the add-to approach. They put a relatively small amount of candy on the scales, maybe 10 or 12 ounces. Then, they add a few pieces until the scale shows 16 ounces. Subconsciously, this makes you feel good because you perceive you are getting extra candy.

Sixteen ounces are still 16 ounces. But the way a pound is counted makes a mighty big difference. To be sure, computer personnel must be careful in weighing merchandise. The point is that never make the customer feel cheated.

Successful business search for creative ways to use the generous add-on tactic to increase sales. The magazine subscription that includes a free pocket calculator, a remote-control device that comes free with the purchase of a television set, and the two-for-the-price-of-one sale by a drug chain are examples. People like you and buy from you when you give more than they expect in exchange for their money.

Evidence that generosity, the add-on approach, works wonders is overwhelming. Nevertheless there are still many businesses that believe success is spelled CHEAT. Store that advertise non-existent appliances at a ridiculously low price and then try to browbeat and intimidate the customer into buying a much higher priced product are common examples. Observe such scoundrels only to learn how to succeed.

You can use the “add-to” principle in every facet of life:

  • Give unexpected, extra service to your employer and you become a candidate for more pay, for more fringe benefits, and for promotion.
  • Put something extra into your assignment at school and get a better grade.
  • Give more time to your kids and get more love and cooperation in return.
  • Show respect to the parking lot attendent and your car gets better treatment.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Causes of New Product Failure


Many new products with satisfactory potential have failed to make the grade. Many of the reasons for new product failure relate to execution and control problems. The following is a brief list of some important causes of new product failures after they have been carefully screened, developed and marketed.

  1. No competitive point of differene, unexpected reactions from competitors, or both.
  2. Poor positioning.
  3. Poor quality of product.
  4. Nondelivery of promised benefits of product.
  5. Too little marketing support.
  6. Poor perceived prices/quality (value) relationship.
  7. Faulty estimates of market potential and other marketing research mistakes.
  8. Faulty estimates of production and marketing costs.
  9. Improper channels of distribution selected.
  10. Rapid change in the market (economy) after the product was introduced.

 Some of these problems are beyond the control of management; but it is clear that successful new product planning requires large amounts of reliable information in diverse areas. Each department assigned functional responsibility for product development automatically becomes an input to the information system needed by the new product decision maker. For example, when a firm is developing a new product, it is wise for both engineers and marketers to consider both the kind of market to be entered (e.g., consumer, organizational, international) and specific target segments. These decisions will be of paramount influence on the design and cost of the finished good, which will, of course, directly influence, price, sales, and profits.

 My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

More about Transformational Leadership


Transformational leadership refers to the bulk of leadership models, which focus on the exchanges that occur between leaders and their followers. Politicians who win votes by promising no new taxes are demonstrating transactional leadership. Similarly, managers who offer promotions to employees who surpass their goals are exhibiting transactional leadership. In the classroom, teachers are being transactional when they give students a grade for work completed. The exchange dimension of transactional leadership is very common and can be observed at many levels throughout all types of organizations.

 In contrast to transactional leadership, transformational leadership refers to the process whereby an individual engages with others and creates a connection that raises the level of motivation and morality in both the leader and the follower. This type of leader is attentive to the needs and motives of followers and tries to help followers reach their fullest potential.

 My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight