Intervention Currency


Intervention currency is a currency used by a country to intervene in the foreign currency exchange markets. Thus it uses some of its U.S. dollar revenue to buy and therefore strengthen its own currency.

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.

Pricing


Whether or not it is so recognized, pricing is one of the most crucial decision functions of a marketing manager. Pricing is an art, a game played for high stakes; for marketing strategists, it is the moment of truth. All of marketing comes to focus in the pricing decision. To a large extent, pricing decisions determine the types of customers and competitors an organization will attract. Likewise, a single pricing error can effectively nullify all other marketing-mix activities. Despite its importance, price rarely serves as the focus of marketing strategy, in part because it is the easiest marketing-mix activity for the competition to imitate.

It can be easily demonstrated that price is a direct determinant of profit (or loss). This fact is apparent from the fundamental relationship.

Profit = total revenue – total cost

Revenue is a direct result of unit price times quantity sold, and costs are indirectly influenced by quantity sold, which in turn is partially dependent on unit price. Hence, price simultaneously influences both revenues and costs.

Despite its importance, pricing remains on of the least understood marketing-mix activities.

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 Support to Marketing


Market Research

  1. Market information
  2. Competitor information
  3. Customer information
  4. Miscellaneous information
  5. Collect saving ideas

Database Building

  1. World-wide club
  2. Dynamic relationship marketing

Customer Service

  1. Self-servicing customers
  2. Self-service customer abuse
  3. Self-service cost savings

New Product Development

  1. Collecting new ideas
  2. Tailor-made products
  3. Accelerating new product development

Internal Communications

  1. Intranets
  2. Extranets

Cost Reduction

  1. Print and distribution
  2. Phone calls
  3. Customer service
  4. Collecting cost-saving tips
  5. Revenue generation

Distribution

  1. Products
  2. Services
  3. Purchases

Selling

  1. Few fairytale  sales stories
  2. New markets
  3. Small value, big turnover
  4. Sales management tool

Promotion

  1. Have a presence
  2. Interactive advertising creative sponsorship
  3. Sales promotions
  4. Public relations
  5. Database marketing

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.

 

Objective of a Supply Chain


The objective of every supply chain is to maximize the overall value generated. The value a supply chain generates is the difference between what the final product is worth to the customer and the effort the supply chain expands in filling the customer’s request, for most commercial supply chains, value will be strongly correlated with supply chain profitability, the difference between the revenue generated from the customer and the overall cost across the supply chain. Supply chain profitability  is the total profit to be shared across all supply chain stages. The higher the supply chain profitability, the more successful the supply chain. Supply chain success should be measured in terms of supply chain profitability and not in terms of the profits at an individual stage.

Having defined the success of a supply chain in terms of supply chain profitability, the next logical step is to look for sources of revenue and cost. For any supply chain, there is only one source of revenue: the customer. All flows of information, product, or funds generate cash within the supply chain. Thus, the appropriate management of these flows is a key to supply chain success. Supply chain management involves the management of  flows between and among stages in a supply chain to maximize total supply chain profitability.

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.

 

Company Demographics


For all customers or prospect records the following basic attributes will lay a solid foundation for numerous segmentations:

  1. Category code: A four-digit code is usually a sufficiently descriptive definition your market is concentrated in several Standard Industry Codes, then going to the six or eight digit level may be appropriate. Remember the SIC is currently undergoing revision, so be flexible with this field.
  2. Company size: There are two choices – sales volume or employee size. It is probably best to use employee size, as it is more easily obtained and more accurate than company revenue. Record employee numbers by site so that they can be rolled up to the corporate level.
  3. Site Type and Linkage: There are some standard definitions here such as branch, division and corporate headquarters. It is important that you take time to develop a site definition that fits your business as this might include plant, research center, etc. secondly, link the sites to a corporate structure, so that a roll-up to the enterprise level can be carried out to look at the customer picture.
  4. Financial year: For those selling situations that involve the customer needing to budget for your product or service, the knowledge of the fiscal year becomes critical, as this will drive the buying process and therefore your selling cycle. Most companies are on a calendar/fiscal year, but about 20 percent are on a different fiscal year basis. In the consumer market this might also be relevant – for example in acquiring expensive items.

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 Right Thing for your Company


Make sure that the outcomes you define for your people are in line with your company’s current strategy. With the dizzying pace of change in today’s business world, it is sometimes hard for managers to keep track. The key distinction is between mission and strategy. A company’s mission should remain constant, providing meaning and focus for generations of employees. A company’s strategy is simply the most effective way to execute that mission. It should change according to the demands of the contemporary business climate.

Although the constant reassessment of strategy is vital to the health of the company, it does place managers in a rather difficult position. They are the intermediaries, charged with explaining the new strategy to the employees and then translating it into clearly defined performance outcomes.

Often this can be as simple as telling your salespeople that with the new company strategy focused on growing market share rather than profit, each salesperson will now be encouraged to focus on the outcome, ‘sales volume,’ rather than the outcome ‘profit margin per sale.’

However, sometimes the changes in strategy are more radical and the pressures on managers to refocus employees on different outcomes are more acute. For example, the most effective strategy for many high-tech companies used to be innovation. Hence the large R&D budgets, the hordes of dishelved but creative software designers, and the unpredictable, slightly unfocused work environments. For the major players who dominate the marketplace, critical mass—getting your product to be accepted as the standard—is now more important than innovation. Innovation can be brought from the smaller boutique houses. Thus these larger companies need to change the way they operate to ensure that virtually everyone’s efforts are focused on spreading the new language/platform/product into the marketplace. This means that managers in these companies will have to hustle to redefine the desired outcomes and find new definitions of success. Number of users, for example, may now be more important than revenue per user.

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 Circular Flow


In a simplified world with only two types of economic agents, individuals and business firms, the relations between them can be pictured. Individuals and firms have dual aspects, and thus transact with one another in two distinct ways. Individuals are in one aspect consumers of goods, while firms are producers of goods. Thus, a real flow of consumption goods occurs from firms to individuals. But the goods must be produced. To permit this there must be a “real” flow of productive services, from the individuals in their second aspect as owners of resources to the firms as employers of resource services.

In a socialist command economy these flows of goods and resources might be directly ordered by a dictator. But in a private enterprise economy the relations are based on exchange and so must be mutual and voluntary. Hence, offsetting the “real” flows are reverse “financial” flows of claims that in a modern economy normally take the form of money payments. The consumers’ financial expenditures on goods become the receipts or revenues of the firms. The exchange of consumption goods between individuals and producing firms in return for financial payments take place in what economists call “the product market.”

The revenues received from sales to consumers provide firms with the wherewithal to buy productive services from resource-owners. This closes the circle; the firms’ payments for productive services become income to the individuals, available once more for spending on consumer goods. Purchase and sale of productive services take place in what economists call “the factor market,” again really a number of distinct markets for the various types of productive services.

Looking within the box representing the firms as economic agents, what takes place there is the process of production, the physical transformation of resources into products. Within the box representing individuals, consumption of the produced goods takes place. Here again the circle is closed by the fact that consumption is necessary to reiterate the main productive resource—labor power—for the next cycle.

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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