Non Price Competition


In spite of the emphasis placed on price in microeconomic theory, marketers often compete on product attributes other than price. You may have noted that price differences between products such as gasoline, men’s haircuts, candy bars, and even major products such as compact cars and private colleges are often small, if there is any price difference at all. Very rarely will you see price used as a major promotional appeal on television. Instead, marketers tend to stress product images and consumer benefits such as comfort, style, convenience, and durability.

Many organizations promote the services that accompany basic products rather than price. The idea is to make a relatively homogeneous product better by offering more service. Quite often the reason marketers emphasize non-price is because prices are so easy to match. Few competitors can match the image of a friendly, responsive, consumer-oriented company.

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.

Advertisements

Pure Competition


The term competition is used ambiguously not only in ordinary conversation but in economic literature as well. Its common meaning is rivalry, but in economics when used along with the word pure, it carries a different meaning. Following are necessary conditions for pure competition:

  1. Homogeneity of the product: For competition to exist in a market all sellers of the product being exchanged sell homogeneous units of the product, or at least the buyers of that product believe that this is so.
  2. Smallness of each buyer or seller relative to the market: Each buyer and each seller of the product under consideration is too small in relation to the entire market for the product to influence significantly the price of the product that is being bought or sold.
  3. Absence of artificial restraints: There are no artificial restrictions on the demands for, the supplies of, and the prices of whatever is being exchanged. No government price fixing nor any institutional fixing or administering of price by producers’ associations, labor unions, or other private agencies. There is no supply restriction enforced by the government or by organized producer groups. Control of demand through governmental rationing is nonexistent.
  4. Mobility: There is mobility of goods and services of resources in the economy. New firms are free to enter any desired industry, and resources are free to move among alternative uses to those where they desire employment. Sellers are able to dispose of their goods and services where the price is highest. Resources are able to secure employment in their highest paid uses.

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.

Target Marketing & Mass Marketing


A marketing strategy that specifies particular target customers is called ‘target marketing’ to distinguish it from ‘mass marketing.” Target marketing says that a marketing mix is tailored to fit some specific target customers. In contrast, mass marketing—the typical production-oriented approach—vaguely aims at “everyone” with the same marketing mix. Mass marketing assumes that everyone is the same—and considers everyone a potential customer. It may help to think of target marketing as the “rifle approach” and mass marketing as the “shotgun approach.”

Commonly used terms can be confusing. The term mass marketing and mass marketers do not mean the same thing. Far from it, mass marketing means trying to sell to “everyone.” Mass marketers aim at clearly defined target markets. The confusion with mass marketing occurs because their target markets usually are large and spread out.

Target marketing is not limited to small market segments—only to fairly homogeneous ones. A very large market—even what is sometimes called the “mass market” –may be fairly homogeneous, and a target marketer will deliberately aim at it.

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.

Mobilizing Support


Mobilizing support for change requires a blend of logic, emotions, and values. The change managers should:

  1. Developing clarity about the target audience: in an effort to achieve acceptance of any change idea, it is very important to clearly understand who the relevant stakeholders are, what are their identities, their aspirations, their values, and their influence in the organization. The target audience is never homogeneous group. These would be people who may be ready to support the change ideas quickly, people who oppose change no matter how sensible the ideas are, and people who are willing to listen but should not be taken for granted. A change manager should identify the real interests of these sub-groups and should tailor the communication and persuasion effort accordingly. In other words, the change manager should be sensitive to the fact that there would be multiple views and perceptions in an organization and it is important to be clear as to what these are.
  2. Getting people involved: When a change manager begins the change campaign by making a strong presentation and supporting it with huge data, there is a danger that employees at the receiving end may become mere spectators and skeptics. At the same time, it is not realistic to expect that people would volunteer themselves to engage in defining a change initiative. What is most useful in such a situation is ‘foot in the door’ approach. This involves asking people to make a small initial commitment, which may be in the nature of asking their views on the present situation and discussing possible courses of action. Over a period of time, these small commitments could be extended to sustain larger change objectives. This approach is particularly useful to attract skeptics to the change program.
  3. Crafting the message: A primary process in the influence effort is not change in attitude towards an object, but change in definition and meaning of the object. Once meaning changes, attitudes change accordingly. A change manager should present the idea in such a manner that it evokes sufficient curiosity among members to explore it further. The message should be simple, but clear enough in its scope. Rather than a conclusive statement, it should invite people for a dialogue. People tend to be more attracted towards stories and symbols than hard numerical data. A change manager should be able to make use of these soft dimensions of relationships to gain attention to the change idea.
  4. Timing the campaign: Many ideas are rejected because they are presented at a wrong time. A change manager should first use informal meetings to generate the need for improving present levels of performance and make people receptive to new suggestions. Change ideas should be presented only when people are willing to engage in a dialogue process. This is very similar to a gardener first preparing the soil before sowing the seeds.
  5. Sustaining the momentum: Mobilizing support for change is never a one-time activity. It takes considerable amount of time to get people involved and committed to the change idea. It should be best for people with high expertise and credibility to lead the change. People listen to those who have expertise while framing their position. Then those people should be identified who favor the change idea and they should be helped to articulate their views in public. People tend to stick to their positions that are made in public

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

Homogeneous or Heterogeneous Teams and Creativity


Homogeneous teams—ones in which members have similar values and attributes—have the advantage of cohesion, and cohesion may translate into high productivity and goal accomplishment. But excessive cohesion can turn into groupthink and dumb decisions that do not respond to situational changes and contingencies. Heterogeneous teams are those whose members have diverse orientation. Agreements in such teams may be difficult; but having to reconcile diverse viewpoints may lead to more innovative solutions. In situations where creativity is important, as in strategic planning or research or ad teams, heterogeneous teams should have an advantage over homogeneous teams.

Creativity is more than fresh ideas. These ideas need to be workable. In making fresh ideas workable, the cohesive team may be at an advantage. For successful creativity therefore, fresh ideas need to be generated by heterogeneous teams but made workable by homogeneous teams. Or perhaps the heterogeneous team needs to adopt the norm that for generating fresh ideas it should leverage its internal diversity, but that for selecting a creative idea generated and making it workable the team needs to operate highly cohesively.

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 contact www.asifjmir.com, Line of Sight