The Adoption Process


The adoption process consists of the mental stages an individual goes through in accepting and becoming a repeat purchaser of an innovation. Marketing communicators play a role in accelerating the rate of new product adoption and thereby increasing the probability of product success. As firms have become more sophisticated marketers, the rate of adoption in consumer markets has increased.

Although consumers are accepting new products more readily than ever, there is still a high percentage of failure in the introduction of new products. Understanding the factors that facilitate or impede successful adoption is crucial to a full appreciation of the role of marketing communications and promotion management in modern marketing.

The adoption process consists of five stages: 1) knowledge, 2) persuasion, 3) decision, 4) implementation, and 5) confirmation. Each stage is necessary precondition to a subsequent stage. Various conditions and characteristics act to increase or retard the innovation-decision process. Among the broad groups of variables that influence the various stages are prior conditions (e.g., the consumer’s previous consumption practices), characteristics of the decision-making unit (e.g., socio-economic characteristics), and perceived characteristics of the innovation (e.g., relative advantages).

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 Promotion Management Process


The Promotion management component of the total marketing communications mix consists of six major tools: personal selling, mass-media advertising, direct mail advertising, sales promotion, point-of-purchase communications, and public relations/publicity. These tools operate in concert with one another to help accomplish various marketing objectives.

The overall promotion management process consists of a logical sequence of decisions that must be made in order to implement effective promotional programs and achieve marketing objectives: situation analysis, marketing objectives, promotion budget, integration and coordination, promotion management program, and evaluation and control.

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.

 

Point of Purchase (POP) Advertising


Point of purchase advertising includes displays and demonstrations promoting an item at a time and place near the location of the actual purchase decision, such as in a retail store. POP can be very effective in continuing a theme developed in some other aspect of the firm’s promotional strategy.

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.

 

Changing Company’s Culture


A short list of mechanisms leaders can use to establish, embed, and reinforce organizational culture. There are five:

  1. Make it clear to your employees what you pay attention to, measure, and control.
  2. React appropriately to critical incidents and organizational crises.
  3. Deliberately role model, teach, and coach the values you want to emphasize.
  4. Communicate your priorities by the way you allocate rewards and status.
  5. Make your HR procedures and criteria consistent with the values you espouse.

Don’t stop there. Use secondary mechanisms—such as redesigning physical space—to further reinforce the desired cultural changes. These secondary mechanisms are just that secondary, because they work only if they are consistent with the five primary mechanisms:

  1. What leaders pay attention to, measure, and control
  2. Leader reactions to critical incidents and organizational crises
  3. Deliberate role modeling, teaching and coaching
  4. Criteria for allocation of rewards and status
  5. Criteria for recruitment, selection, promotion, retirement, and communication.

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.

Reforming Personnel Policies


If women are to be treated equally in the workplace, all jobs and occupations must be open to them so that they may compete on the same terms as all others. A company’s recruiters need to seek qualified workers and not assume that women are unqualified. Rates of pay and benefits need to be matched to the work to be done not to the gender of the jobholder. Pay rises for doing a current job well, along with promotions to more attractive jobs, also require equal treatment. Job assignments should be made on the basis of skills, experience, competence, capability, and reliability—in other words, proven ability to get the job done, not whether women have traditionally worked at one task rather than another.

Career ladders, whether short ones going only a few steps or longer ones leading into the higher reaches of corporate authority, should be placed so that both men and  women can climb them as high as their abilities can carry them.

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.

Internet and Knowledge Management


The Internet and knowledge management function as catalysts or stimuli for each other. The Internet provides a physical medium of the organization’s sharing and co-creation of knowledge. It also acts as a catalyst for the cultural shift in attitudes, which encourages cooperation and collaboration among all of the players in the activities of an organization including co-workers (by co-workers mean all employees regardless of their status), suppliers, customers, business partners and in some cases even among competing firms. Knowledge management, on the other hand, requires a medium like the Internet for the distribution, facilitation and promotion of knowledge transactions. The Internet is reshaping collaboration and we ought to know how this is taking place and how we can take advantage of it.

Not only has the Internet functioned as an excellent medium for the practice of knowledge management by speeding up the pace of innovation and the force for bringing knowledge to the fore as today’s principal source of wealth. In the age before computing and the Internet, when change was not so rapid as it is today, all players had more or less the same opportunity to acquire the knowledge to conduct business. In today’s rapidly changing environment the ability to access and create knowledge is absolutely essential to success and , hence, the emergence of knowledge 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.

Positive Thinking and Reality


We have seen positive-thinking political candidates on the eve of a landslide defeat still insisting they can sense victory in spite of the polls. Positive thinking alone will not guarantee top marks for a student on his upcoming final exam, if he has never studied or attended classes. Positive thinking that is unsupported by any cooperative actions can become simply wishful thinking.

On the other hand best-trained people will never win if they lack positive mental images, because the resulting lack of confidence will always distract concentration and diminish ability.

The same powerful principles of imagery apply to enhancing performances in the working world. Rather than taking untrained young graduates and plunging into stressful work situations, enlightened companies are first investing in the building of positive images to enhance performance and confidence. Imagined experiences can be as good as real ones in building up a store of confidence.

In any job, a style of language can set the tone for a positive or negative approach. The power of words in establishing an image has long been recognized by public relations and promotion experts. However, even more influential than the choice of words to sell products or concepts to large audiences is the impact of the wording of our internal communications, otherwise known as “self-talk.”

With so much of the economy based on service industries, the positive attitude behind every employee’s smile becomes an essential ingredient for success in the workplace. An individual who thinks positively and gravitates towards positive-thinking friends and colleagues, or a corporation that consciously nurtures a positive culture, will always outperform those who wallow in doom and gloom.

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.

Market Survey


Stated most simply, the objective of a market survey is to determine a reasonably attainable sales volume in a specific market area for a specific type of business. This means finding out how many potential consumers of the planned merchandise or service there are in this market and how many of them can reasonably be expected to become customers of the firm under consideration.

The thoroughness of a market survey will vary under different conditions. The survey is essential for stores that plan to develop much of their own customer traffic. If sales are to depend on the firm’s merchandising policies, sales promotion efforts, special services, or uniqueness, a particularly thorough market survey should be made in advance. Firms that plan to rely on the established customer flow already generated by other businesses in the area may follow less thorough procedures. The latter types of firms have often been described as “parasite stores,” meaning that their location has been dictated by the existing firms in the area that have attracted a substantial traffic flow and which the new firm will tap for its own sales. Examples of small firms in this category are a restaurant in a skyscraper lobby, a medium-priced dress shop next to a large department store, an office-building tobacco shop, or a drugstore in an airline terminal. In these cases, the amount and nature of the traffic and its sales potential are pretty well established. Such firms may still, however, exert various types of sales promotion activities to increase total income within the traffic.

The chief concern here is with the types of firms that may rely heavily on a market survey to help them build much of their customer traffic.

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.

Product Development Process


The product development process involves analysis of the marketplace, the buyer, the company’s capabilities, and the economic potential of new product ideas. This process may be both expensive and time consuming. To accelerate the process, many companies create multidisciplinary teams so that manufacturing and marketing plans can be developed in tandem while the product is being designed.

  1. Generation and Screening of Ideas: The first step is to come up with ideas that will satisfy unmet needs. A producer may get new product ideas from its own employees or from external consultants, it may simply adapt a competitor’s idea, or it may buy the rights to someone else’s invention. Customers are often the best source of new product ideas.
  2. Business Analysis: A product idea that survives the screening stage is subjected to a business analysis. At this point the question is: Can the company make enough money on the product to justify the investment? To answer this question, companies forecast the probable sales of the product, assuming various pricing strategies. In addition, they estimate the costs associated with various levels of production. Given these projections, the company calculates the potential cash flow and return on investment that will be achieved if the product is introduced.
  3. Prototype Development: The next step is generally to create and test a few samples, or prototypes, of the product, including its packaging. During this stage, the various elements of the marketing mix are put together. In addition, the company evaluates the feasibility of large-scale production and specifies the resources required to bring the product to market.
  4. Product Testing: During the product testing stage, a small group of consumers actually use the product, often in comparison tests with existing products. If the results are good, the next step is test marketing, introducing the product in selected areas of the country and monitoring consumer reactions. Test marketing makes the most sense in cases where the cost of marketing a product far exceeds the cost of developing it.
  5. Commercialization: The final stage of development is commercialization, the large-scale production and distribution of those products that have survived the testing process. This phase requires the coordination of many activities—manufacturing, packaging, distribution, pricing and promotion. A classic mistake is letting marketing get out of phase with production so that the consumer is primed to buy the product before the company can supply it in adequate quantity. A mistake of this sort can be costly, because competitors may be able to jump in quickly. Many companies roll out their new products generally, going from one geographic area to the next. This enables them to spread the costs of launching the product over a longer period and to refine their strategy as the rollout proceeds.

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.

Analyzing Current Situation: Checklist


Phase 1: The Environment

  1. What is the state of the economy and are there any trends that could affect the industry, firm, or marketing strategy?
  2. What are current trends in cultural and social values and how do these affect the industry, firm, or marketing strategy?
  3. What are current political values and trends and how do they affect the industry, firm, or marketing strategy?
  4. Is there any current or pending federal, state, or local legislation that could change the industry, firm, or marketing strategy?
  5. Overall, are there any threats or opportunities in the environment that could influence the industry, firm, or marketing strategy?

Phase 2: The Industry

  1. What industry is the firm in?
  2. Which firms are the major competitors in the industry and what is their annual sales, market share, and growth profile?
  3. What strategies have competitors in the industry been using, and what has been their success with them?
  4. What are the relative strengths and weaknesses of competitors in the industry?
  5. Is there a threat of new competitors coming into the industry, and what are the major entry barriers?
  6. Are there any substitute products for the industry, and what are their advantages and disadvantages compared to this industry’s products?
  7. How much bargaining power do suppliers have in this industry, and what is its impact on the firm and industry profits?
  8. How much bargaining power do buyers have in this industry, and what is its impact on the firm and industry profits?

Phase 3: The Firm

  1. What are the objectives of the firm? Are they clearly stated? Attainable?
  2. What are the strengths of the firm? Managed expertise? Financial? Copyrights or patents?
  3. What are the constraints and weaknesses of the firm?
  4. Are there any real or potential sources of dysfunctional conflict in the structure of the firm?
  5. How is the marketing department structured in the firm?

Phase 4: The marketing Strategy

  1. What are the objectives of the marketing strategy? Are they clearly stated? Are they consistent with the objectives of the firm? Is the entire marketing mix structured to meet these objectives?
  2. What marketing concepts are at issue in the current strategy? Is the marketing strategy well planned and laid out? Is the strategy consistent with sound marketing principles? If the strategy takes exception to marketing principles, is there a good reason for it?
  3. To what target market is the strategy directed? Is it well defined? Is the market large enough to be profitably served? Does the market have long-run potential?
  4. What competitive advantage does the marketing strategy offer? If none, what can be done to gain a competitive advantage in the marketplace?
  5. What products are being sold? What is the width, depth, and consistency of the firm’s product lines? Does the firm need new products to fill out its product line? Should any product be deleted? What is the profitability of the various products?
  6. What promotion mix is being used? Is promotion consistent with the products and product images? What could be done to improve the promotion mix?
  7. What channels of distribution are being used? Do they deliver the product at the right time and right place to meet customer needs? Are the channels typical of those used in the industry? Could channels be made more efficient?
  8. What pricing strategies are being used? Hw do prices compare with similar products of other firms? How are prices determined?
  9. Are marketing research and information systematically integrated into the marketing strategy? Is the overall marketing strategy internally consistent?

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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