Role of Government


In general, government has three basic economic functions. First, government provides a legal foundation and an appropriate social environment for the conduct of economic activity. Second, government both encourages competition in the marketplace and controls it. This is accomplished through legislation and government agency rules and regulations. Finally, government redistributes income from some segments o the economy to others. Government acquires revenues through taxation—taxes on income, property, sales, and payroll. These revenues are channeled back into the economy through spending and transfer payments to veterans, the aged, welfare recipients, and others in society. In short, government is a consumer of goods and services and not producer of 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.

Services Marketing


As the forces coincide and evolve, those involved realize that there is something different about marketing services and managing services. When a firm’s core offering is a deed performed by an employee, how can the firm ensure consistent product quality to the marketplace? As services businesses begin to turn to marketing and decide to hire marketing people, they naturally recruit from the best marketers in the world. People who move from marketing in packaged goods industries to marketing in healthcare, banking and other service industries find their skills and experiences are not directly transferable. They face issues and dilemmas in marketing services that their experiences in packaged goods and manufacturing has not prepared them for. These people realize the need for new concepts and approaches for marketing and managing service businesses.

Service marketers respond to these forces and begin to work across disciplines and with academics and business practitioners from around the world to develop and document marketing practices for service industries. As the field evolved, it expanded to address the concerns and needs of any business where service is an integral part of the offering. Frameworks, concepts, and strategies developed to address the fact that services marketing is different. As the field continues to evolve into the 21st century, new trends are developing that will shape the field and continue the need for services marketing concepts and tools.

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.

When Marketing doesn’t Work


Marketing has not measured up to expectations in many companies because management has concentrated on the trappings rather than the substance. When most executives talk about what their companies have done to become more marketing oriented, they usually point to such actions as:

  • Declarations of support from top management in the form of speeches, annual reports, or talks to the investment community.
  • Creation of a marketing organization, including appointment of a marketing head and product or market managers, transfer to marketing of the product development and service functions, establishment of a market research function, salespeople reassigned around markets, advertising function strengthened.
  • Adoption of new administrative mechanisms, such as formal marketing planning approaches, more and better sales information, and revised information systems structured around markets rather than products.
  • Increased marketing expenditures for staffing, training and development, advertising, marketing, research.

The point is not that these actions are useless, but that by themselves they are no guarantee of marketing success. Effective marketing requires a fundamental shift in attitude and values throughout the company so that everyone in every functional area places paramount importance on being responsive to market needs. The steps taken in most companies are not useful because they fail to accomplish this crucial shift in attitude. And without this shift in attitude, the most highly developed marketing operation cannot produce any real results.

Why have so few companies gone beyond the trappings to achieve the change in attitude that ensures substantive marketing? Frequently, one or more of these situations exist:

  • In a surprising number of cases, management does not fully understand the marketing concept as it applies in its situation.
  • In many other cases, management understands the implications of the marketing concept but has not committed itself to the actions and decisions needed to reinforce it.
  • In almost every case, management has failed to install the administrative mechanisms necessary for effective implementation of the concept, especially into the non-marketing function.

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 Ideal Dream Seed


Success would be simple if we could go to a store and tell the merchant, “Sell me a dream that is guaranteed to make me happy and wealthy.” But we can’t. dream seeds are not for sale. Nor can they be inherited, borrowed, or otherwise transferred. Friends, parents and teachers may suggest goals, but only you can answer, “What dream is best for me?”

You may often ask, “Where can I make a lot of money?” in a way, that question is like asking on a bright day, “Where is the sunlight?” or, asking aboard a ship on the ocean, “Where is the water?”

The answer to “Where is the money?” is: “Everyhere.” Jobs have great economic potential. Most musicians earn small incomes. But a few earn millions every year. Typically, ministers are poorly paid. But some are richly rewarded financially. Many small business owners earn little. But some prosper and reap fantastic rewards.

In terms of economic opportunity, it is not the occupation that makes a person prosper. It is the person who makes the person prosper.

The best dream seed is the one you can’t get out of your mind – an idea that never leaves you, a cause or a purpose that absorbs you, an obsession. That one thing you must do is your ideal dream seed.

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.

 

Foreign Exchange


An international marketer needs to transact financial transfers across nation lines in order to close deals. The financial transfers from one country to another are made through the medium of foreign exchange.

Foreign exchange is the monetary mechanism by which transactions involving two or more currencies take place. Transacting foreign exchange deals presents two problems. First, each country has its own methods and procedures for effecting foreign exchanges—usually developed by its central bank. The transactions themselves take place through the banking system. Thus, both the methods and procedures of the central bank and commercial banking constraints must be thoroughly understood and followed to compete a foreign exchange transaction.

The second problem involves the fluctuation of  the rates of exchange. Fluctuations in exchange rates are based on the supply and demand of different currencies. The rate of exchange between two countries can fluctuate from day to day. This produces a great deal of uncertainty since a business person cannot know the exact value of foreign obligations and claims.

To appreciate fully the complexities of foreign exchange, a few terms must be understood. Their understanding also will provide a historical perspective on the making of payments across national boundaries. The terms are gold standard, gold exchange standard, gold bullion standard, inconvertible currencies, and hard and soft currencies.

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.

Stock Ownership


One of the best incentives a boss can offer is a fraction of the action in the form of performance-based monetary rewards, or, better yet, options to participate in a company stock ownership. One of Ross Perot’s greatest pleasures was to make some of his managers into multimillionaires through stock participation. They all repaid him with generated enthusiasm, renewed energy, and, ultimately, more corporate profits than any of them had ever imagined. Stock participation can be one of the best ways to transfer the spirit of entrepreneurship into any company. By spreading out the risk-reward net to include more of the staff, the good boss uses shared stress to encourage group excellence.

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 Consequences of a Bad Boss


The leading cause of stress is the bad boss. In most organizations everyone in the company expect the chief executive officer has a boss, or has the potential to become a boss, even if that means you are instructing an apprentice or a student who is at the company for a short time on a work orientation program.

In terms of making our own choices in response to stress, even the very lowest person on the work ladder is still a boss—a boss of his or her own department. Thus, what a lot of people complain of having a bad boss, the corollary is that most of us are bad bosses—if not of others, then at least of ourselves.

The damage that a bad boss does is sometimes far more widespread than is seen at the time. With the ultimate control, as well as, knowledge of the bigger picture, the boss escapes the highest levels of stress at work, but can still be a powerful stress carrier. In just the same way that a child who is humiliated by a bully comes home and yells at a younger sibling, a boss can transfer anxieties and stresses to employees without ever letting them know the reasons behind the negative behavior.

When an employee is frustrated all day by the boss, these frustrations tend to get transferred along to innocent bystanders, rather like one of those dreadful chain letters. One may see drastic repercussions, ranging from demoralization and loss of self-worth, to burnout of virtually any organ system in the body. In the brain this burnout takes the form of fatigue, insomnia, anxiety, depression, or obsessive behavior. Aggression can be triggered, causing such tragedies as life and child beating or even mass murders during a sudden wild shooting spree. Bad bosses are even the motivation for some suicides. In the stomach or heart, the results of a bad boss are often seen in ulcers or heart attacks.

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.

 

Meaning Transfer


The culture and social systems in which marketing communications takes place are loaded with meaning. Through socialization, people learn cultural values, beliefs, and become familiar with the artifacts that are associated with these values and beliefs. The artifacts of culture are charged with meaning, and this meaning is transferred from generation to generation.

Marketing communicators attempt to draw meaning from the culturally constituted world and transfer that meaning to consumer goods. Advertising is an especially important instrument of meaning transfer. The role of advertising in transferring meaning has been described in this fashion.

When exposed to advertising, the consumer is not merely drawing information from the ad but is actively involved in assigning meaning to the advertised product.

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.

 

Just About Money


Strictly defined, money is anything generally accepted in exchange for goods and services. To be used as a medium of exchange, money must be acceptable, divisible, portable, stable in value, durable, and difficult to counterfeit.

Acceptability: To be effective, money must be readily acceptable for the purchase of goods and services and for the settlement of debts. Acceptability is probably the most important characteristic of money: If people do not trust the value of money, businesses will not accept it as a payment for goods and services, and consumers will have to find some other means of paying for their purchases.

Divisibility: Given the widespread use of quarters, dimes, nickels, and pennies in the United States, it is no surprise that the principle of divisibility is an important one. With barter, the lack of divisibility often makes otherwise preferable trades impossible, as would be an attempt to trade a steer for a loaf of bread. For money to serve effectively as a measure of value, all items must be valued in terms of comparable units—dimes, for a piece of bubble gum, quarters for laundry machines, and dollars (or dollars and coins) for everything else.

Portability: Clearly, for money to function as a medium of exchange, it must be easily moved from one location to the next. Large colored rocks could be used as money, but you couldn’t carry them around in your wallet. Paper currency and metal coins, on the other hand, are capable of transferring vast purchasing power into small, easily carried bundles.

Stability: Money must be stable and maintain its declared face value. The principle of stability allows people who wish to postpone purchases and save their money to do so without fear that it will decline in value. Money declines its value during periods of inflation, when economic conditions cause prices to rise. Thus, the same amount of money buys fewer and fewer goods and services.

Durability: Money must be durable. The crisp new dollar bills you trade at the music store for the hottest new CD will make their way all around town for about 18 months before being replaced. Were the value of an old, faded bill to fall to line with the deterioration of its appearance, the principles of stability and universal acceptability would fail. Although metal coins, due to their much longer useful life, would appear to be an ideal form of money, paper currency is far more portable than metal because of its light weight. Today, coins are used primarily to provide divisibility.

Difficulty to Counterfeit: To remain stable and enjoy universal acceptance, it almost goes without saying that money must be very difficult to counterfeit—that is, to duplicate illegally. Every country takes steps to make counterfeiting difficult. Most use multicolored money, and many use specially watermarked papers that are virtually impossible to duplicate.

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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