Retailing & Strategic Decisions


The strategic part determines the type of business that the retailer would be in. this is governed by two considerations—financial and familiarity considerations and image related consideration:

  1. Financial and familiarity considerations: A most of the outlets are proprietary in nature, the type of business that retailer would like to undertake would be governed by the investment capacity of the person and his familiarity with the product line.
  2. Image related considerations: Retailing is just not a way of business, it is a way of expressing oneself in the society. The shop depending on where it is located and the type of products and brands it deals in, will contribute to the social standing of the shop owner.

As these decisions are taken before taking up dealership with a company, the strategic considerations are not studied. From a marketer’s point of view the managerial considerations become important as they determine (a) whether the retailer would stock and sell their brands, and (b) the effort the retailer would put in to sell the brand.

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.

Retail Trends & Strategies


  • Better market positioning: This involves more careful identification of market segments and providing service superior to that of competition.
  • Market intensification: This involves clustering more stores in the same metropolitan area and contiguous markets.
  • Secondary markets: Expansion will be increasingly focused on secondary markets  of under 100,000 population because there may be less competition from larger retailers, and costs, such as wages, may be lower.
  • Differences in store size: Retailers will have a more flexible portfolio of different sized stores depending on the size of the community and existing retail competition. More use of second-hand space will occur because this can result in savings of 30 percent or more in rent.
  • Productivity increases: The application of central checkout, self-selection, and low gross margins to areas of trade where these techniques have not been used before will occur. Look now at toy supermarkets, home-decorating centers, and self-service shoe stores.
  • Fewer product options: Product lines will increasingly be consolidated, and new product development will be cut back.
  • Service growth: Services retailing will continue to grow as a percentage of total retail sales. Services already represent about 50 percent of the gross national product.
  • More mergers: Increasingly, smaller and weaker firms will be absorbed as more retail outlets struggle to survive.

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.

Bureaucratic Management Approach


The roadblock stems from management’s reluctance to push profit and decision-making responsibility on with too many management levels and high-paid support people. The real contributions of most corporate, sector or group level marketing, advertising, manufacturing, planning or R&D activities cannot be to line management responsibilities and too costly to justify their existence. We have not been able to find proven profit contributions that offset the costs involved.

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 of Production


Each business has its own mix of the four factors of production, vis-à-vis, natural resources, labor, capital, and entrepreneurship.

Natural resources refers to everything useful in its natural state as a productive input including agricultural land, building sites, forests, mineral deposits, and so on. Natural resources are basic resources required in any economic system.

Labor is critically important. It refers to everyone who works for a business, from the company president to the production manager, the sales representative, and the assembly line worker.

Capital is defined as the funds necessary to finance the operation of a business. These funds can be provided in the form of investments, profits, or loans. They are used to build factories, buy raw materials, hire workers, and so on.

Entrepreneurship is the taking of risks to set up and run a business. The entrepreneur is the risk taker in private enterprise system. In some situations the entrepreneur actively manages the business; in others this duty is handed over to a salaried manager.

All four factors of production must receive a financial return if they are to be used in a private enterprise system. These payments are in the form of rent, wages, interest, and profit. The specific factor payment received varies among industries, but all factors of production are required in some degree for all businesses.

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.

Organization Structure


Any group possessing common goals is an organization. But business organizations can be classified according to the nature of their internal authority relationships. Although there are five forms of organization structure, four forms are common: line, line and staff, committee, and matrix. The line structure is the oldest form and is frequently used today in smaller organizations. The functional form uses specialist managers entirely responsible for their own fields within the operation. The line and staff form uses specialists to assist line officers. This is commonly used in medium and large size firm. The fourth and fifth types, committees and the matrix organizations exist in many firms but only ready as the sole types. They are typically used as a sub-organizational form within a line and staff structure.

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 Concept Lifecycle


The new products process essentially turns an opportunity (the real start) into a profit flow (the real finish). It begins with something that is not a product (the profit). The product comes from a situation and turns into an end.

What we have, then, is an evolving product, or better, an evolving concept that, at the end, may become a product. There are stages, like individual frames in a movie film:

  • Opportunity concept-a company skill or resource, or customer problem.
  • Idea concept-the first appearance of an idea.
  • Stated concept-a home or technology, plus a clear statement of benefit.
  • Tested concept-it has passed an end user concept test; need is confirmed.
  • Full screened concept-it passes the test of fit with company situation.
  • Protocol concepts-a statement (product definition) of the intended market user.
  • Prototype concept-a tentative physical product or system procedure, including features and benefits.
  • Batch concept-first full test of fit with manufacturing; it can be made. Specifications are written, exactly what the product is to be, including features, characteristics, and standards.
  • Process concept-the full manufacturing process is complete.
  • Pilot concept-a supply of the new product, produced in quantity from a pilot production line, enough for field testing with end users.
  • Marketed concept-output of the scale-up process either for a market test or full scale launch.
  • Successful concept (new product)-it meets the goals set for it at the start of the project.

Some firms have as many as three production models or prototypes. So, the idea that a new product suddenly “emerges” from R&D-like a chicken from an egg-is simply incorrect.

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.

Not-for-Profit Marketing


Non-for-Profit organizations encounter a special set of characteristics that influence their marketing activities. Like profit making firms, not-for-profit organizations may market tangible goods and/or intangible services. One important distinction exists between not-for-profit organizations and profit oriented companies. Profit-seeking businesses tend to focus their marketing on just one public—their customers. Not-for-profit organizations, however, must often market to multiple publics, which complicates decision-making regarding the correct markets to target. Many deal with at least two major publics—their clients and their sponsors—and often many other publics, as well. Political candidates, for example, target both voters and campaign contributors. A college targets prospective students as clients of its marketing program, but it also markets to current students, parents of students, alumni, faculty, staff, local businesses, and local government agencies.

A second distinguishing characteristic of not-for-profit marketing is that a customer or service user may wield less control over the organization’s destiny than would be true for customers of a profit-seeking firm. A government employee may be  far more concerned with the opinion of a member of the legislature’s appropriations committee than with that of a service user. Not-for-profit organizations also often possess some degree of monopoly power in a given geographic area.

Perhaps the most commonly noted feature of the non-profit-organization is its lack of a bottom line—business jargon referring to the overall profitability measure of performance. Profit-seeking firms measure profitability in terms of sales and revenues. While not-for-profit organizations may attempt to maximize their return from specific services, they usually substitute less exact goals, such as service-level standards, for overall evaluation criteria. As a result, it is often difficult to set marketing objectives that are aligned specifically with overall organizational goals.

A typical aspect of a non-for-profit organization is the lack of a clear organizational structure. Not-for-profit organizations often respond to constituencies that they serve, but these usually are less exact than, for example, the stockholders of a profit-oriented corporation. Not-for-profit organizations often have multiple organizational structures.

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.

Pro Forma Income Statement


Because marketing managers are accountable for the profit impact of their actions, they must translate their strategies and tactics into pro forma, or projected, income statements. A pro forma income statement displays projected revenues, budgeted expenses, and estimated net profit for an organization, product, or service during a specific planning period, usually a year. Pro forma income statements include a sales forecast and a listing of variable and fixed costs that can be programmed or committed.

Pro forma income statements can be prepared in different ways and reflect varying levels of specificity. They have a typical layout consisting of six major categories or line items:

  1. Sales—forecasted unit volume times unit selling price
  2. Cost of goods sold—costs incurred in buying or producing products and services. Generally speaking, these costs are constant per unit within certain volume ranges and vary with total unit volume.
  3. Gross margin (sometimes called gross profit)—represents the remainder after cost of goods sold has been subtracted from sales.
  4. Marketing expenses—generally programmed expenses budgeted to produce sales. Advertising expenses are typically fixed. Sales expenses can be fixed, such as a salesperson’s salary, or variable, such as sales commissions. Freight or delivery expenses are typically constant per unit and vary with total unit volume.
  5. General and administrative expenses—generally, committed fixed costs for the planning period, which cannot be avoided if the organization is to operate. These costs are frequently called overhead.
  6. Net income before (income) taxes (often called net profit before taxes—the remainder after all costs have been subtracted from sales.

A pro forma income statement reflects a marketing manager’s expectations (sales) given criterion inputs (costs). This means that a manager must think specifically about customer response to strategies and tactics and focus attention on the organization’s financial objectives of profitability and growth when preparing a pro forma income statement.

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.

A Line Organization


A line organization is one in which there are direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with all people reporting to only one supervisor. The most obvious example is the army, which has a clear line of authority going from general to colonel to major to lieutenant to sergeant to corporal to private. A private reports to a corporal, the corporal to a sergeant, and so on back up to the generals. A line organization has the advantages of having clearly defined responsibility and authority, of being easy to understand, and of providing one supervisor for each person. The principles of good organizational design are met.

Disadvantages include for being too flexible, of having few specialists or experts to advise people along the line, of having lines of communication that are too long, and of being unable to handle the complex decisions involved in an organization with thousands of sometimes unrelated products and literally tons of paperwork.

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.

Ethics Hot Lines


In some companies, when employees are troubled about some ethical issue but may be reluctant to raise it with their immediate supervisor, they can place a call on the company’s ethics hot line. These hot lines have become more common.

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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