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.

Components of a Business Plan


Business plan tells a very special story. It is the story of a unique business enterprise, the one you, the entrepreneur, will create. Telling this story will reveal how knowledgeable and competent you are, how certain the outcome is, and how desirable it is to proceed with the project.

There are similarities among all good business plans, but no two are exactly alike, because no two businesses are exactly alike, even if they make and sell same thing to the same market, two businesses will have different personalities. The behavior and attitudes of the managers will be reflected in the businesses. Even the décor will be different, just as the homes of the managers will reflect their individual taste and style. Each business plan is unique.

Several topics that deserve consideration in the plan: what, how, where, and when. You would expect to see topic headings like the following:

  1. The Product. What product or service is being offered? How is it made ready for sale?
  2. Target market. Who will part with their money? How many of them are there? Where are they?
  3. Competition. Where do the customers obtain the product or service now? How does that product or service differ from yours? How strong is the competition?
  4. Marketing. How will the customers learn about your product? Where can they buy it? How does it get to where they buy it?
  5. Management. Who will coordinate the activities of production, administration, and marketing? Who will decide what is to be done and when?
  6. Financial Performance? How much profit will be made and when? How much capital is required? What will the business’s net worth be a year from now? Two years from now?

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.

Nourish your Dream Seed


Think some more about your tomato seed. It is an excellent seed, the soil is well prepared, and you have planted it. But to grow and pay off with good-tasting tomatoes, the seed needs nourishment – sunlight, fertilizers, and water.

Your dream seed also requires nutrition – imagination, encouragement, and ideas – to grow and make you prosper. In the US alone, some two million businesses are started each year but only a small fraction succeeds. In one way or another, neglect is the main reason.

Those who make their dream of financial independence and prosperity grow in a multi-level marketing business. The basic idea – the dream seed has all the potential you need. Other people make it work. People who aren’t any smarter or better than you are.

Once the dream is planted, feed it. Attend seminars. Go to school if necessary. Join trade associations. Talk to successful people. Read.

Let other success-minded people help you. Birds of flock together. That rule always stands. So, if you want to make a large income and accumulate wealth, affiliate with people who are comfortable earning large incomes and who are determined to acquire even more net worth. You become like the people you associate with every day. If your circle of friends is people who are resigned to mediocrity and the whatever-will-be-will be philosophy, in time you will be one of them. Your dream will die, your vision will shrink, and your spiritual death will come.

As you grow your dreams, surround yourself with people who are positive. Positive people want you to win, to achieve, to enjoy the good life, to find genuine satisfaction, and to make a contribution to others.

Negative people want you to accept life as it is, to be content with boredom and mediocrity, to be satisfied with a small income, and to miss out on the rewards that come from helping others.

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.

 

Efficiency vs. Effectiveness


It is said that the difference between efficiency and effectiveness is the difference between’ doing things right’ and ‘doing right things.’ It should encompass both efficiency and effectiveness. That is ‘doing right things right.’

Imagine that you visit your friend. As you are chatting, your friend asks his wife to bring coffee. A little later a tray with milk, sugar, coffee powder and cup is placed before you to prepare coffee of your taste, light or strong, with or without sugar, etc. and you prepare coffee and drink it.

On some other occasion, you visit another friend. As you are chatting, your friend’s wife brings coffee in a cup (before being asked by your friend). Coffee is already prepared. As you take the first sip, she enquires if the sugar is enough. As you say, ‘its ok’ and drink coffee, she stands there. After you finish, she takes the cup and goes off.

In these two cases of serving coffee, it could be seen, that the purpose was served. In the first case it was done in a ‘5-star’ style. No one can find fault with it. But in the second case, there is an additional component attached to it, namely the personal touch. This definitely had its role in creating an ‘impact.’

The first can be said to be an efficient way of serving coffee and the second an effective way. Efficiency is all about how the ‘producer’ has felt and effectiveness is all about how the ‘user’ has felt.

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.

Message Content in Marketing Communications


Message content deals with what is said in a message and how it is said. There are five common content topics that have great relevance for marketing practitioners: 1) fear appeals; 2) the use of humor; 3) the role of music; 4) sex appeals; and 5) subliminal messages. Advertisers, salespersons, public relations spokespersons, and other marketing communicators use all of these message styles to varying degrees in hopes of gaining attention, achieving impact, and ultimately producing sales.

Fear Appeals: Companies sometimes use fear appeals in attempting to motivate customers to action. The underlying logic when using fear appeals is that fear will stimulate audience involvement with a message and thereby promote acceptance of message arguments. The appeals may take the form of social disapproval or physical danger aside from the basic ethical issue of whether fear should be used at all, the fundamental issue for marketing communicators is determining how intense the fear presentation should be. Numerous fear-appeal studies have been performed by psychologists and marketing researchers, but the fact remains that there still is no consensus on the “optimum” level of fear. Some Neither extremely strong nor very weak fear appeals are maximally effective. It seems that appeals at a somewhat moderate level of fear are best.

Humor: Politicians, actors and actresses, after-dinner speakers, professors, and indeed all of us at one time or another use humor to create a desired reaction. Salespeople and advertisers also turn to humor in the hopes of achieving various communication objectives. Whether humor is effective and what kinds of humor are most successful are matters of some debate among marketing communications practitioners and scholars.

Despite the frequent use of humor in advertising, relatively little is known in a definitive scientific sense about its effects on customer behavior. However there are some generalizations:

  • Humorous messages attract attention.
  • Humor can inhibit consumers’ understanding of the intended meaning of a message.
  • Because humor is a pleasant form of distraction, it can produce an increase in persuasion by effectively “disarming” receivers’ natural selective perception and reducing their tendencies toward counter arguing with persuasive selling claims.
  • Humor tends to enhance source credibility, thereby improving the persuasive impact of an ad message.
  • A humorous context may increase liking for the source and create a positive mood, thereby enhancing the persuasive effect of the message.
  • To the extent that a humorous context functions as a positive reinforce, a persuasive communication placed in such a context may be more effective.
  • The effects of humor can differ due to differences in audience characteristics. Advertisers must use humor carefully since consumers display a variety of tastes in what is humorous and what is not.

Music: celebrated musicians, as well as, non-vocal accompaniment and unknown vocalists are used extensively in promoting everything. Music performs useful communication functions such as attracting attention, putting consumers in a positive mood, and making them more respective to message arguments. Although music’s role in marketing is an increasingly understand subject, a few recent studies have begun to demonstrate the roles that music performs. Music is an unconditional stimulus in an effort to influence experimental subjects’ preference.

Sex Appeals: Sex appeals in advertising are often explicit. The use of explicit sex was unthinkable just a few years ago, it now represents part of a new trend toward more sexually explicit advertising. Sexual explicitness is prevalent and overt in some countries. Whether such advertising is effective and under what conditions it may be effective remain largely unexplored issues. Complicating the matter is the fact that sex in advertising actually takes two forms: nudity and suggestiveness. It is uncertain which form is more effective. There are several potential roles. First, sexual material in advertising acts as an initial attentional lure and also holds attention for a longer period, given that the models are attractive or the scene is pleasant. This is called the “stopping power” role of sex. A second potential role is to enhance recall. Sexual content or symbolism will enhance recall only if it is appropriate to the product category and the creative advertising execution. Sexual appeals produce significantly better recall only if the advertising execution has an appropriate relationship with the advertised product. A third role performed by sexual content in advertising is to evoke emotional response such as feelings of attraction or even lust.

Subliminal Messages: the word subliminal refers to the presentation of stimuli at a rate or level that is below the conscious threshold of awareness. Stimuli that cannot be perceived by the conscious senses may nonetheless be perceived subconsciously. This possibility has generated considerable concern from advertising critics and has fostered much speculation from researchers.

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.

Adding Frosting to the Cake


Smart people in all fields add some frosting to the cake they sell. Putting frosting on the cake means giving people more than they expect to receive, and it begins with simple things. A smart business manager never places negative people in upfront jobs, such as telephone operator, receptionist, check-out stand cashier, and ticket seller the customers and clients a business serves rarely, if ever,  see the firm president or a key manager. They judge the business rightly or wrongly by the way they are treated by the ‘unimportant’ people.

Experienced travelers stay at hotels where the reservations are polite and positive; people choose restaurants based on the attitudes of people who seat them, serve them, and take their money. How good the food tastes is always less important than the service in building repeat patronage. And the companies that deliver packages know courteous, friendly service is their best competitive weapon in beating the Postal Service where, generally, counter-personnel are negative in attitude.

Words and phrases as ‘please’, ‘thank you’ and ‘you look good today’ are free frosting that make sales and build businesses. Call your business or office. If you don’t hear a wonderful, “I am really glad you called” voice, train or replace the person. Have a friend stop in at your business. If he doesn’t get great service, take corrective action.

Success-oriented people ask, “How can I give others more than they expect? What kind of frosting can I put on the cake I’m selling?”

A cake—the product or service you offer—is just baked dough. But when you put some frosting on it and give it a little post-sale service, you’ve made the dough delicious. Try it, and enjoy the rewards.

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.

Statistics of Supply and Demand


Equilibrium is determined by the interaction of given supply and demand curves. But what about changes in supply and demand? Such changes can be interpreted as shifts of the supply, curve, of the demand curve, or both at once.

Perhaps as a result of altered preferences, buyers suddenly want to continue more of some good at each possible price. This is called an increase of demand. The basic technique in analyzing some economic change will be to ask: Is the change reflected in a shift of supply, or a shift of demand (or possibly, of both)? It will be immediately evident that an increase in demand alone leads to an increase in both equilibrium price and equilibrium quantity. An increase in supply leads to an increase in equilibrium quantity, but to a decrease in equilibrium price.

It is sometimes useful to distinguish between those sources of change originating “outside” and those originating “inside” the economic system. The “outside” sources of variation include” 1) Changes in tastes, 2) changes in technology, changes in resources, and 3) changes in resources, and 4) changes in the political-legal system. All these changes can be regarded, in some degree at least, as originating autonomously rather than in response to economic factors.

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.

Strategies for Worldwide Innovation


The multi-domestic strategy is appropriate for innovations that depend on understanding local customer preferences, tastes, expectations, distribution channels, and local government regulations than they do on the technological knowledge on which they rest. This strategy is appropriate when the need for market information is high while that for technological information is low. Makers of packaged consumer goods (detergents and cereals) such as Unilever have pursued this strategy. Firms that pursue the multi-domestic strategy have self-sufficient units in each country to better discern and meet local customer preferences and tastes. On the other hand, if technological information requirements are high relative to market information requirements, a firm may want to pursue a global strategy. Firms can locate their facilities either where the environment is most suitable for technological innovations or at home where they have some endowments that give them some advantage. From there they develop products for world markets. If both market and technological information demands are low, a firm can operate using the international arrangement. It can take advantage of whatever home capabilities it has to develop products for its home market. Once the products are successful at home, it can then transfer the capabilities and the innovation to overseas. If both market and technological information needs are high. The transnational arrangement is best. In this mode, firms have access to the best sources of innovation, and the technological knowledge and the market knowledge that underpin them, worldwide.

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, Lectures, Line of Sight.

Transaction-based Marketing Vs. Relationship Marketing


As marketing has entered the 21st Century, a significant change is taking place in the way companies interact with customers. The traditional view of marketing as a simple exchange process—a concept that might be termed transaction-based marketing—is being replaced by a different, longer-term approach.

Traditional marketing strategies focused on attracting consumers. The goal was to identify prospects, convert them to customers, and complete sales transactions. But today’s marketers realize that, although it remains important, attracting new customers is truly an intermediate step in the marketing process. Marketing efforts must focus on establishing and maintaining mutually beneficial relationships with existing customers. These efforts must expand to include suppliers and employees, as well.

The concept, called relationship marketing, refers to the development, growth, and maintenance of long-term, cost-effective exchange relationships with individual customers, suppliers, employees, and other partners for mutual benefits. It broaches the scope of external marketing relationships to include suppliers, customers, and referral sources. In relationship marketing, the term customer takes on a new meaning. Employees serve customers within an organization as well as outside it; individual employees and their departments are customers of and suppliers to one another. They must apply the same high standards of customer satisfaction to inter-departmental relationships as they do to external customer relationships. Relationship marketing recognizes the critical importance of internal marketing to the success of external marketing plans. Programs that improve customer service inside a company also raise productivity and staff morale, resulting in better customer relationships outside the firm.

Relationship marketing gives a company new opportunities to gain a competitive edge by moving customers up a loyalty hierarchy from new customers to regular purchasers, then to loyal supporters of the company and its goods and services, and finally to advocates who not only buy the  company’s products but recommend them to others. by converting indifferent customers into loyal ones, companies generate repeat sales. The cost of maintaining existing customers is far below the cost of finding new ones, and these loyal customers are profitable ones.

Effective relationship marketing relies heavily on information technologies such as computer databases that record customers’ tastes, price preferences, and lifestyles alongwith the increase of electronic communications. This technology helps companies become one-to-one marketers that gather customer-specific information and provide individually customized goods and services. The firms target their marketing programs to appropriate groups, rather than relying on mass-marketing campaigns. Companies who study their customers’ preferences and react accordingly gain distinct competitive advantages.

Firms in service industry, from retailers to hotels to airlines, are among the leaders in relationship marketing. Their staff members have many opportunities to meet customers personally and build loyalty and repeat business. Rewards for frequent buyers of a firm’s goods or services, such as hotel programs that reward frequent visitors with free room stays and other travel documents, are another form of relationship 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, Line of Sight

Creative Management of Product Design


An emerging area of importance is product/process design. In increasingly competitive, sophisticated markets, attractively designed products or processes sell well; shoddily designed products are left alone on the shelves. Excellent product design requires high orders of essence creativity (novel ideas), elaborative creativity (contextually relevant elaborations of ideas that are unique because of the kinds of components utilized and the way they are fitted together), and expressive creativity (unique aesthetic features). There can be following basic steps for coming up with successful and creative product design:

a)    The designing unit should have members with diverse expertise so that their brainstorms can result in unique product design concepts that are also practical.

b)   It is imperative that the design unit has an in-depth understanding of the client and the market, the technologies needed or involved, and the nature of the problem and the constraints that need to be kept in mind.

c)    The design unit must take the trouble to observe people in real-life situations to identify their needs, difficulties, likes, dislikes, etc. Creative design needs creative observation, that is observation that is not only accurate but also multi-angled so as to yield interesting design possibilities. Innovation begins with eyes. The design unit needs to create a ‘bug-list,’ that is, a list of the problems that presently bug the likely users of the future products.

d)   The design unit needs to visualize a new product concepts and the customers who could be captivated by them. This can involve building several physical models and prototypes, simulations on the computer, and creation of videos that portray high the new product may be used by people well before it comes into existence.

e)    The design unit needs to evaluate and refine the prototypes/models through several quick iterations, each one involving changes and improvements. Inputs should be secured not only from members of the design unit, but also from experts, the client, and the potential consumers. Exceptional design seldom come right the first time around. Serially generated improvements based on the reactions and suggestions of the product’s stakeholders can quickly get the design unit to an exceptional design.

f)     Effective implementation that leads to the commercial use of the product. This is often a long and tedious process that creative teams frequently neglect. But the planning of milestones, cost cutting and cost control efforts, packaging and so forth are indispensable if a product design is to taste commercial success.

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

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