Postponement


Postponement is the delay to the last possible moment of the final formulation or commitment of a product. The most general method which can be applied in promoting the efficiency of a marketing system is the postponement of differentiation for example, to postpone changes in form and identity to the latest point in the marketing flow or to postpone changes in  inventory location to the latest possible time. Minimization of the risk of speculation is achieved by delaying differentiation of the product to the time of purchase. Savings in transportation of goods are achieved because merchandise is moved in larger quantities, in bulk, or in relatively undifferentiated places.

Postponement is the opposite of speculation. A speculative inventory is put into a distribution center whenever the cost of carrying that inventory is less than the profit derived from having that inventory readily available to stimulate purchases.

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

Ethical Problems in Product Strategy


Product quality, planned obsolescence, brand similarity, and packaging questions are significant concerns of consumers, managers, and governments. Competitive pressures have forced some marketers into packaging practices that may be considered misleading, deceptive, and/or unethical. Some firms make package larger than necessary to gain shelf space and consumer exposure in the supermarket. Odd-sized packages make price comparisons difficult. The real question seems to be whether these practices can be justified in the name of competition. Growing regulatory mandates appear to be narrowing the range of discretion in this area.

Product testing is another area that raises ethical concerns. To help assure consumers of product quality, many companies use seals of approval for their goods and services. Recently however consumers have begun to question whether the use of these seals is ethical, since they have to be purchased at fees ranging from $10,000 to $1 million. The seals also do not promise that the product is the best one on the market. Many of the organizations that offer seals of approval do not conduct product testing themselves or even compare brands.

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.

Primary Research Data


Primary data consists of data that is obtained directly from the source. It is generally captured through surveys, interviews, focus groups, or other direct interactions with individuals. The use of primary data has increased dramatically over the past few years, and with the advent of bar code scanners, home shopping, interactive television, and other electronic media, the number of channels through which primary data can be collected will increase exponentially.

Primary data consists of two major types:

  • Individual level demographic data such as age, income, and home value.
  • Attitudinal and behavioral data.

In the past, primary data was often the province of market research, and was used primarily to provide direction for marketing programs that addressed large groups of customers and prospects. Demographic data was used to get a better “fix” on the characteristics of the larger market, and attitudinal data was used to provide a sense of which issues were important to various groups of customers, and therefore should be emphasized in promotional materials.

Market researchers use primarily data to identify new product opportunities or new segments within the customer file. This is usually done by sending surveys to a representative sample of customers or prospects to determine what products and services they are interested in but do not currently purchase from the firm sending the questionnaire. In this way, primary data gathered through market research surveys can lead to the development of products that are either new to the firm or, in some cases, new to the industry.

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.

Structure, Roles, and Rules


What sort of structure would help the team function innovatively? The purpose of any structure is to make sure that certain essential tasks, especially repetitive tasks, get done. Structure need not be incompatible with creativity if it realeases time and energy for creative work rather than blocking creativity with excessive rules, specialization, centralization, etc. What, therefore, needs to be done is to make an inventory of tasks that must be performed more or less repitively, and allocate these tasks to individuals within or outside the team.

 However, the roles of team members should not be defined only in terms of these tasks;  there are only minimum elements of their roles. It is important to define roles broadly and not too strictly. Some ambiguity helps interaction and role clarification, not by the leader but by the situation. Indeed, it heps to have versatile team members, i.e., persons who can double for others should the need arise. Periodic interchange of roles within the team can help develop this verstality. Researchers have indicated some specific roles in innovative teams beyond those for effective teams. The creative scientist/engineer/idea man is one role. The entrepreneur (vis-à-vis the outer world) and the intrapreneur (vis-à-vis the team members) are further roles. The entrepreneur seeks new missions for the group. The intrapreneur seeks new activities within the broad mission for group members. The protector-defender-sponsor is a fourth role, whose function is to get the team the resources it needs for innovative work from the larger system of which it may be a part, and also to defend the team from external pressures or attacks. The gatekeeper is a fifth role, that of bringing to the team essential market, technical, or political intelligence from outside that can become the basis for meaningful divergent thinking. These roles need not be played by different individuals. The important point is that they should get played.

 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

Pulling in High Quality


Organizations pay a lot of attention to product quality. Thousands of companies advertise that they are “ISO 9000 registered,” and man have objectives of making ‘products of the highest quality.’ They emphasize quality for four reasons:

a.    Processes can now make products with guaranteed high quality;

b.    High quality gives a competitive advantage;

c.    Consumers have got used to high quality products, and won’t accept anything less;

d.    High quality reduces costs.

 

If you make poor quality products, your customers will simply move to a competitor. Although high quality won’t guarantee the success of your products, low quality will certainly guarantee their failure. So survival is one of the benefits of high quality, and others include:

a.    Competitive advantage coming from an enhanced reputation;

b.    Larger market share with less effort in marketing;

c.    Reduced liability for defects;

d.    Less waste and higher productivity;

e.    Lower costs and improved profitability;

f.     Enhanced motivation and morale of employees;

g.    Removal of hassle and irritants for managers.

 

Most of these are fairly obvious – if you increase the quality of your products, you expect people to switch from competitors. But the idea that higher quality can reduce costs is particularly interesting. This goes against the traditional view that higher quality automatically means higher cost. Gucci are well known for this combination, and say, ‘Quality is remembered long after the price is forgotten’

 

When you take a broader look at the costs, you can see that some of them really go down with higher quality. If you buy a washing machine with a faulty part, you complain and the manufacturer repairs the machine under its guarantee. The manufacturer could have saved money by finding that fault before the machine left the factory, and it could have saved even more by making a machine that did not have a fault in the first 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, Line of Sight