Strategic Marketing & Budgeting


A phase in the strategic marketing management process is budgeting. A budget is a formal, quantitative  expression of an organization’s planning and strategy initiatives expressed in financial terms. A well-prepared budget meshes and balances an organization’s financial, production, and marketing resources so that overall organizational goals or objectives are attained.

An organization’s master budget consists of two parts: 1) an operating budget, and 2) a financial budget. The operating budget focuses on an organization’s income statement. Since the operating budget projects future revenue and expenses, it is sometimes referred to as a pro forma income statement or profit plan. The financial budget focuses on the effect that the operating budget and other initiatives (such as capital expenditures) will have on the organization’s cash position.

In addition to the operating and financial budget, many organizations prepare supplemental special budgets, such as an advertising and sales budget, and related reports tied to the master budget. Budgeting is more than an accounting function. It is an essential element of strategic marketing management.

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.

International Codes of Environmental Conduct


A number of business organizations have developed codes of environmental conduct. Among the most important ones are the following:

  • International Chamber of Commerce (ICC): The ICC developed the Business Center for Sustainable Development, 16 principles that identify key elements of environmental leadership and call on companies to recognize environmental management as among their highest corporate priorities.
  • Global Environmental Management Initiative (GEMI): A group of over 20 companies dedicated to fostering environmental excellence, GEMI developed several environmental self assessment programs, including one that helps firms assess their progress in meeting the goals of the Business Center for Sustainable Development.
  • Keidanren: This major Japanese industry association has published a  Global Environmental Charter that sets out a code of environmental behavior that calls on its members to be “good corporate citizens.”
  • Chemical Manufacturers Association (CMA): The U.S. based industry association developed Responsible Care: A Public Commitment, which commits its member-companies to a code of management practices, focusing on process safety, community awareness, pollution prevention, safe distribution, employee health and safety, and product stewardship. The group is working for the international adoption of these principles.
  • CERES Principles: These are 10 voluntary standards developed by the Coalition of Environmentally Responsible economies that commit signatory firms to protection of the biosphere, sustainable use of natural resources, energy conservation, risk reduction, and other environmental goals.
  • International Organization for Standards (ISO): ISO 14000 is a series of voluntary standards introduced in 1966 by the ISO, an international group based in Geneva, Switzerland, that permit companies to be certified as meeting global environmental performance standards.

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.

Entrepreneurial Challenge


We have experienced such an explosion of entrepreneurs in last two decades. There are many reasons why people are willing to take the risks of starting business. These reasons generally include the following:

  • Opportunity: Many people do not have necessary skills for working in today’s complex organizations. They do have the initiative and drive to work the long hours demanded by entrepreneurship. They are willing to sacrifice to see that their children have a chance of a good life. The same is true of many corporate managers who leave the security of the corporate life and try running businesses of their own.
  • Profit: Profit is only one reason to become an entrepreneur, but an important one. The profit potential of entrepreneurship is fantastic.
  • Independence: Many entrepreneurs simply do not enjoy working for someone else. They do not like the stress and demands of business.
  • Challenge: Entrepreneurs are excitement junkies who flourish on taking risks. They seek achievement more than power.

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.

 

Job Restructuring


Job restructuring comprises an important group of work organization methods which aim at increasing both productivity and job satisfaction. Increased job satisfaction itself can also result in higher productivity and better motivation. Many managers and workers feel that job restructuring , covering job enrichment and job enlargement, is a promising strategy for improved job satisfaction.

Job restructuring can build up the content of jobs, so as to enhance skills, interest, initiative and range of responsibility while reducing frustration and monotony. Job enrichment and job enlargement are concerned with job and work changes through modification of the workers’ tasks. Restructuring, the addition of further similar tasks, is often referred to as job enlargement and can be viewed as horizontal change. One variation of job enlargement is job rotation. Workers are “rotated” between various fragmented activities with some degree of choice. Vertical change involves increased individual involvement through the addition of different tasks and duties; such changes are generally referred to as job enrichment.

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.

 

Spirit of High Performance


An ability to instill strong individual commitment to strategic success and to create an atmosphere in which there is constructive pressure to perform is one of the most valuable strategy-implementing skills. When an organization performs consistently at or near peak capability, the outcome is not only more success but also a culture permeated with a spirit of high performance. Such a spirit of performance should not be confused with whether employees are happy or satisfied or what they get along well together. An organization with a spirit of high performance emphasizes achievement and excellence. Its culture is results-oriented, and its management pursues policies and practices that inspire people to do their best.

Companies with a spirit of high performance typically are intensely people-oriented, and they reinforce their concern for individual employees on every conceivable occasion in every conceivable way. They treat employees with dignity and respect, train each employee thoroughly, encourage employees to use their own initiative and creativity in performing their work, set reasonable and clear performance expectations, use the full range of rewards and punishment to enforce high performance standards, hold managers at every level responsible for developing the people who report to them, and grant employees enough autonomy to stand out, excel, and contribute. To create a results-oriented culture, a company must make champions out of the people who turn in winning performances.

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.

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.

Power


Power is what everyone wants and no one seems to have enough of. The desire for power is inherent in our very nature and fundamental to our survival.

Nowhere is the pursuit of power more evident than in today’s workplace. Managers are constantly striving to increase their arsenal of power, which is how it should be. Some may use power for selfish gain; others may use it to benefit the company. Regardless of how managers use power, the fact remains that without it they are incapable of achieving anything of significance for themselves, other people, the company, or society at large.

Power operates under the same principle as love: the more one gives to others, the more one receives in return. Unfortunately, many managers assume that there is a limited supply of power.

Most people contribute only a small fraction of their full capabilities, simply because they don’t feel a sense of personal power. They are bound by a bureaucratic management system that does little to encourage initiative and high performance. Almost all the power within the organization rests with those at the very top. Powerless in their ability to achieve results, most people eventually lose interest and settle for mediocrity.

The secret of achieving success as a manager and as a company lies in learning how to release the hidden potential of people. It lies in helping workers on all levels, from floor sweeper to executive, experience a sense of their own power. There are no success limits for the managers who master this art. Likewise, the company that rewards managers for successfully employing this art dramatically increases its ability to achieve its objectives.

If you want to achieve ultimate power for yourself you must get out of your own way. Instead of focusing your energies on the acquisition of power for yourself, focus them on how you can empower the people who work for you. If you are successful in giving your people power, they will surely lift you on their shoulders to heights of power and success you never dreamed possible.

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 Drive for Speed


The ‘time culture’ can impose unrealistic deadlines upon those who are charged with the responsibility for delivering improvements. When a supply chain is improved, the single company may be no more able to achieve a tangible impact upon the external environment than it can deliver all the value that is sought by a final customer. When others are involved, there is likely to be bargaining and negotiation.

Environmental initiatives should not result in the pressure for speed or ‘response’ driving out the long-term thinking that is required. Assuming ‘results’ are required, these might best be achieved as a result of flexibility within the framework of a longer term relationship.

Today’s craze can be tomorrow’s memory. Too many managers assume that trends will continue longer than subsequently turns out to be the case. With many environmental and social policies taking many years to have a significant impact, companies face a dilemma similar to that encountered by those seeking to change attitudes and behavior. By the time the outcomes initially sought have been achieved, the requirement may have changed. Will there be a backlash when people count the costs? Will they become bored?

Attempts to deal with ‘isms’ can open a Pandora’s box of dashed hopes and unfulfilled expectations, especially when initiatives are not thought through. Enough noise may be raised to alarm some, while not enough is done to appease or deliver to others. Companies should beware of cosmetic programs.

Winners assemble a comprehensive, complementary and coordinated set of initiatives, embracing all the parties involved, that are likely to have a significant impact upon an environmental or social issue. They achieve significant changes of attitude or behavior, because all the various change elements that are necessary have been put in place.

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.

Factors Impacting Customer Loyalty


Many factors will affect the relationship between you and your customers. Following are some of the most common:

  • Adaptiveness: Taking measures to adapt your own personality style to that of your customers in order to communicate with and serve them effectively.
  • Communication: Getting and giving information, listening, writing and speaking effectively, and dealing with emotional situations.
  • Decisiveness: Being able and willing to make a decision and take necessary actions to fulfill customer needs.
  • Enthusiasm: Attaining and maintaining level of excitement about your customers, product, service, organization, and job that says, “I am happy to help you.”
  • Ethics: Establishing and maintaining high level, social, and moral standards in all interactions with customers.
  • Initiative; Acting on issues that relate to your job or customer service without having to receive instructions from others.
  • Knowledge: Taking time to learn about policies, procedures, resources, products, services, and other information that can help in providing total customer satisfaction.
  • Perceptiveness: Recognizing the need to play close attention to verbal and nonverbal clues, cultural factors, and the feelings or concerns of others.
  • Planning: Taking the time to logically think about customer needs and develop strategies for satisfying them before customer interactions occur.
  • Problem solving: Gathering and analyzing information in order to help resolve a variety of customer concerns or satisfy needs.

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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