The Concept Lifecycle


The new products process essentially turns an opportunity (the real start) into a profit flow (the real finish). It begins with something that is not a product (the profit). The product comes from a situation and turns into an end.

What we have, then, is an evolving product, or better, an evolving concept that, at the end, may become a product. There are stages, like individual frames in a movie film:

  • Opportunity concept-a company skill or resource, or customer problem.
  • Idea concept-the first appearance of an idea.
  • Stated concept-a home or technology, plus a clear statement of benefit.
  • Tested concept-it has passed an end user concept test; need is confirmed.
  • Full screened concept-it passes the test of fit with company situation.
  • Protocol concepts-a statement (product definition) of the intended market user.
  • Prototype concept-a tentative physical product or system procedure, including features and benefits.
  • Batch concept-first full test of fit with manufacturing; it can be made. Specifications are written, exactly what the product is to be, including features, characteristics, and standards.
  • Process concept-the full manufacturing process is complete.
  • Pilot concept-a supply of the new product, produced in quantity from a pilot production line, enough for field testing with end users.
  • Marketed concept-output of the scale-up process either for a market test or full scale launch.
  • Successful concept (new product)-it meets the goals set for it at the start of the project.

Some firms have as many as three production models or prototypes. So, the idea that a new product suddenly “emerges” from R&D-like a chicken from an egg-is simply incorrect.

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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Not-for-Profit Marketing


Non-for-Profit organizations encounter a special set of characteristics that influence their marketing activities. Like profit making firms, not-for-profit organizations may market tangible goods and/or intangible services. One important distinction exists between not-for-profit organizations and profit oriented companies. Profit-seeking businesses tend to focus their marketing on just one public—their customers. Not-for-profit organizations, however, must often market to multiple publics, which complicates decision-making regarding the correct markets to target. Many deal with at least two major publics—their clients and their sponsors—and often many other publics, as well. Political candidates, for example, target both voters and campaign contributors. A college targets prospective students as clients of its marketing program, but it also markets to current students, parents of students, alumni, faculty, staff, local businesses, and local government agencies.

A second distinguishing characteristic of not-for-profit marketing is that a customer or service user may wield less control over the organization’s destiny than would be true for customers of a profit-seeking firm. A government employee may be  far more concerned with the opinion of a member of the legislature’s appropriations committee than with that of a service user. Not-for-profit organizations also often possess some degree of monopoly power in a given geographic area.

Perhaps the most commonly noted feature of the non-profit-organization is its lack of a bottom line—business jargon referring to the overall profitability measure of performance. Profit-seeking firms measure profitability in terms of sales and revenues. While not-for-profit organizations may attempt to maximize their return from specific services, they usually substitute less exact goals, such as service-level standards, for overall evaluation criteria. As a result, it is often difficult to set marketing objectives that are aligned specifically with overall organizational goals.

A typical aspect of a non-for-profit organization is the lack of a clear organizational structure. Not-for-profit organizations often respond to constituencies that they serve, but these usually are less exact than, for example, the stockholders of a profit-oriented corporation. Not-for-profit organizations often have multiple organizational structures.

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.

Extending the Product Life Cycle


Marketers usually try to extend each stage of the life cycles for their products as long as possible. They can often accomplish this goal if they take action early in the maturity stage. Product life cycles can stretch indefinitely as a result of decisions designed to increase the frequency of use by  current customers, increase the number of users for the product, find new uses, or charge package sizes, labels, or product quality.

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.

 

Products Liability


Over the years, individuals have demanded stricter laws to protect them from faulty products. Consumer protection statutes have been enacted in most countries. Manufacturers, wholesalers, and retailers are generally responsible to the user of a product if he or she is harmed by it. Three theories of liability have been established:

  1. Absolute or strict liability
  2. Negligence
  3. Breach of warranty (express or implied) and misrepresentation.

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.

 

A Socially Responsive Company


Executive leaders of largest corporations have been confronted with an unprecedented increase in the social issues impinging upon their business policies and practices. Not only have a variety of social regulations have been developed that apply universally to all industries, but each industry has also experienced to varying degrees a proliferation of industry-specific challenges for the corporate social environment.

In response to the pressures, businesses have increased their efforts to manage for corporate social environment. The social environment encompasses business activities influenced by various community and government groups. Many chief executives spend more time on the external affairs of the business than any other activity. Most executives allocate significant personnel, time, and budget to the creation of elaborate staff groups to help them understand and manage this environment and its challenges.

Some firms may be more vulnerable to social group pressure and social regulation than others. A number of factors have been identified as contributing to this vulnerability. A firm may be more vulnerable to social forces if the firm is:

  • A large-sized or well-known company thus presenting a big target.
  • Located in an urban area and under increased scrutiny by the media and social groups.
  • Producing a consumer-oriented product viewed as a necessity by the public.
  • Providing a product or service that may cause harm or injury to the user.
  • Part of a heavily regulated industry that is expected to meet high public expectations.

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.

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