Global Marketing Place


Several factors have forced countries to extend their economic views to events outside their own national borders. First, international agreements are being negotiated in attempt to increase trade among nations. Second, the growth of electronic commerce and related computer technologies brings previously isolated countries into their marketplace for buyers and sellers around the globe. Third, the interdependence of the world’s economies is a reality since no nation produces all of the raw material and finished goods purchased by its citizens or consumers of all its output without some exporting to other countries. Evidence of this interdependence is illustrated by the introduction of the Euro as a common currency to facilitate trade among the nations of the European Union and the creation of trade alliances.

Service firms also play a major role in today’s global marketplace. In many cases, global marketing strategies are almost identical to those used in domestic markets. Rather than creating a different promotional campaign for each country, marketers use the same ad with spectacular results.

Domestic marketing strategies may need significant changes to adapt to unique tastes or different cultural and legal requirements abroad. It is often difficult to standardize a brand name on a global basis.

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.

Context for Reinventing the Corporation


  1. The shift in strategic resource from an individual to an information society;
  2. The coming seller’s market and the new competition for the best employees;
  3. The whittling away of middle management;
  4. The continuing entrepreneurial revolution;
  5. The emergence of the new variegated work force;
  6. The demographic revolution of working women;
  7. The growing use of intuition and vision;
  8. The mismatch between our education system and the needs of the new information society;
  9. The rising importance of corporate health issues.

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.

Communications: Compliance


Compliance results through a power relationship between the participants in the communications process. That is, a receiver complies with persuasive efforts of the source because the source has the power, legitimate or otherwise, to administrator rewards or punishments.

Because the powerful source controls rewards and punishments, he or she can often induce compliance to his or her advocated position. However, compliance is relatively superficial in the sense that a compliant individual does what he or she is forced to do and does not necessarily adopt the complied-to position as a matter of personal desire or preference.

Sales representatives sometimes possesses a degree of power over buyers, especially in a seller’s market where demand exceeds supply and buyers are dependent on their vendors for supplies of raw materials, parts, or merchandise. Purchasing personnel may feel that if they do not comply with a sales representative’s requests, their orders may be delayed or cut off completely.

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.

Bid Decision-Making


Following tools and techniques are used:

  1. Risk Assessment: Sellers must identify, analyze, and prioritize the risks associated with a potential project. Many world-class companies have developed practical risk assessment tools—surveys, checklists, models, and reports-containing both qualitative and quantitative information. Software programs are increasingly being developed to help managers assess risks.
  2. Opportunity Assessment: Sellers must identify and analyze the opportunities that are potentially viable. Many successful companies have developed standard forms, surveys, checklists, or models to help managers assess opportunity.
  3. Risk Management Team Process: Sound business management requires a solid understanding of risks and the methods to identify, analyze, and mitigate them. Successful companies follow a designated risk management team process, not just a best guess individual assessment.

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.

Availability of Warranties


In countries where consumer rights are protected, the seller makes the written warranty terms available to the prospective buyer before the sale. The text of the warranty is often displayed next to the product, or on the package in which the product is enclosed. Warranty terms can also be collected in notebooks in the department that sells the goods and may even be microfilmed, so long as the prospective buyer can readily use the microfilm reader. The maker of the warranty is required to make the text of the warranty available to sellers in forms that sellers can readily use, such as providing copies of the written warranty with each product, or on a tag, sticker, label, or other attachment to the product, or on a sign or poster. These warranty requirements also cover catalog and door-to-door sales.

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.

Inspection Buying


Inspection buying means looking at every item. It’s used for products that are not standardized and require examination. Here each product is different – as in the case of livestock or used equipment. Such products are often sold in open markets – or at auction if there are several potential buyers. Buyers inspect the goods and either haggle with the seller or bid against competing buyers.

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.

 

Defining Oligopoly


An oligopoly is a form of competition in which a market is dominated by just a few sellers. Generally, oligopolies exist in industries that produce products such as steel, cereal, automobiles, aluminum, and aircraft. One reason some industries remain in the hands of a few sellers is that the initial investment to enter an oligopolistic industry is usually tremendous. Think what it would cost to build a steel mill or an automobile assembly plant. In an oligopoly, prices tend to be close to the same. Note, for example, how most credit cards charge very similar rates. The reason for this is simple. Intense price competition would lower profits for all the competitors, since a price cut on the part of one producer would most likely be matched by others. Product differentiation, rather than price differentiation, is usually the major factor in market success in a situation of oligopoly.

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.

 

Imitability


If a firm is making profits from core competences, the question is, why can’t other firms imitate it and build similar competences. This takes us to one property of competences: imitability—the extent to which a competence can be duplicated by competitors.  A firm would rather have competences that are difficult to duplicate or substitute. The question is, how? If the knowledge that underpins the competences is tacit in that it is not coded but rather embedded in organizational routines and cumulatively learned over time, potential imitators have three problems. In the first place, it is difficult to know just what it is that one wants to imitate in the second place, even if a firm knew exactly what it is that it wants to imitate, the firm may not know how to go about it since competence is learned cumulatively over the years and embedded in individuals or routine of firms. In the third place, since competences take time to build, imitators may find them themselves always lagging as they spend time imitating while the original owners of the competences move on to higher levels of the competences to newer ones.

If a competitor cannot build competences, the next question is, why not buy them? One answer is that competences may not be tradable or easily moved from one firm to another. Two reasons have been advanced for why. First, because of the tacit nature of the underlying knowledge, it may be difficult to tell just what it is that one wants to trade and who has the property rights for what parts of the underlying knowledge. What is it that we will buy from Honda that allows us to build zippy engines for cars, motorcycles, lawnmovers, and marine vehicles? Who has the rights for what part of the technological knowledge that underlies this competence? Second, the underlying knowledge may be sticky in that it is too costly to transfer. Because of the tacit nature of the data, one may need to observe the seller over long periods in order to learn. This may be too complex and expensive.

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 Utilities Created by Marketing


 

All of marketing’s functions are performed to move goods from products to consumers. During this process, marketing adds utility (value) to goods and services. There are five types of utilities: 1) form, 2) time, 3) place, 4) possession, and 5) information.

1)      Form utility: refers to the changing of raw materials into a finished product. Taking grains and turning them into cereal is an example of form utility. Form utility is usually considered a production function rather than a marketing function.

2)      Time utility: it helps consumers by making products available when the consumer wishes. Supermarkets that are open 24 hours a day provide time utility. Making fresh fruit available in the winter is also a form of time utility.

3)      Place utility: it makes sure that the goods and services are conveniently located where consumers want them.

4)      Possession utility: it helps make the exchange of goods between buyers and sellers easy.  Anything that helps complete the sale – delivery, installation, warranties, credit – is considered part of possession utility.

5)      Information utility: it informs buyers of the product’s existence, how to use it, the price, and other facts. Such information is provided through advertising, salespeople, and packaging.

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.

 

Direct Marketing


Direct market refers to direct mail, mail order, or coupon advertising, telephone marketing, or any method of marketing that attempts to make a sale right then and there. It does not require a middleman. It does not require a store. It only requires a seller and a buyer. And because of that, much unnecessary game playing is removed from the marketing process, leaving only accountable results. When you run a TV commercial or newspaper ad, you do all in your power to make sure that it works, but you don’t really know if it does. But when you engage in direct-mail advertising, the firm of direct marketing you will know clearly whether or not your mailing worked. Either it did or didn’t. If it worked, you’ll know how well it worked. And if it failed, you’ll know how dismally it failed.

Direct mail is the least expensive method of marketing on a per sale basis. The overall cost may be high, but if it works for you, it is inexpensive marketing. Direct marketing is more science than art. This is not to downplay the art of creating a successful direct mail package.

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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