THE BUSINESS SYSTEM – Markets, Government and International Trade

ECONOMIC SYSTEM:

The system a society uses to provide the goods and services it needs to survive and flourish.

GLOBALIZATION:

The process by which the economic and social systems of nations are connected together so that goods, services, capital, and knowledge move freely between nations.

TRADITION BASED SOCIETIES:

Societies that rely on traditional communal roles and customs to carry out basic economic tasks.

In Locke’s State of Nature:

  • All are free and equal
  • Each person owns his body and labour, and whatever he mixes his labour into
  • People agree to form a government to protect their right to freedom and property

Lockean Rights:

  • The right to life, liberty and property.

Weaknesses of Lockean Rights:

  • Assumption that individuals have neutral rights
  • Conflict between positive and negative rights
  • Conflict between Lockean rights and principles of Justice.
  • Locke’s individualistic assumptions

INVISIBLE HAND : Arguments of Adam Smith

  • According to Adam Smith, the market competition that drives self interested individuals to act in ways that serve society.
  • Market Competition ensures that the pursuit of self interest in markets advances of public’s welfare.
  • Govenment interference in markets does not advance the public’s welfare.

Criticisms of Smith’s Argument:

  • Rests on unrealistic assumptions
  • False assumption that all relevant costs are paid by manufacturer
  • False assumption that human beings are solely motivated by self interested desire for profit.
  • Some degree of economic planning is possible and desirable.
  • Keynes’s claim that government can affect unemployment.

SAY’S LAW:

In an economy all available resources are used and demand always expands to absorb the supply of commodities made from them.

AGGREGATE DEMAND:

According to John Maynard Keynes, the sum of the demand of the 3 sectors of the econonmy; households,businesses and government.

KEYNESIAN ECONOMIES:

The theory of John Maynard Keynes that free markets alone are not necessarily the most efficient means for co-ordinating the use of society’s resources.

SOCIAL DARWINISM:

Belief that economic competition produces human progress.

SURVIVAL OF THE FITTEST:

Charles Darwin’s term for the process of natural selection.

NATURALISTIC FALLACY:

The assumption that whatever happens naturally is always for the best.

ABSOLUTE ADVANTAGE:

A situation where the production costs (costs in terms of the resoueces consumed in producing the good) of making a commodity are lower for one country than for another.

COMPARATIVE ADVANTAGE:

A situation where the opportunity costs (costs in terms of other goods given up) of making a commodity are lower for one country than for another.

FREE TRADE:

  • Advocated by Smith with the idea of Absolut advantage.
  • Advocated by Ricardo with idea of Comparative Advantage.
  • Favours Gloablization.

Difficulties in Applying Ricardo’s Theory Today:

  • Easy movement of capital by companies
  • False assumption that a country’s prodcution costs are constant.
  • Influence of International rule setters.

MEANS OF PRODUCTION:

The buildings, machinery, land and raw materials used in the production of goods and services.

ALIENATION:

In Marx’s view not allowing the lower working classes to develop their productive potential, satisy their real human needs, or form satisfying human relationships.

ECONOMIC SUBSTRUCTURE:

The materials and social controls that society uses to produce its economic goods.

SOCIAL SUPERSTRUCTURE:

A society’s government and its populare ideologies.

FORCES OF PRODUCTION:

The materials- land, labour,natural resources,machinery,energy,technology used in production.

RELATIONS OF PRODUCTION:

The social controls used in producing goods i.e. the social controls by which society organizes and controls its workers.

HISTORICAL MATERIALISM:

The Marxist view of history as determined by changes in the economic methods by which humanity produces the materials on which it must live.

MARX’S PRINCIPLE Claims of Injustice in Capitalism:

  • Exploitation of workers whose “surplus” is taken by owners as “profit”.
  • Alienation of workers from product, work,self and others.
  • Subordination of government to interests of ruling economic class.
  • Immiseration of Workers.

IMMISERATION:

The combined effects of increased concentration, cyclic crises, rising unemployment, decliining relative compensation.

INTELLECTUAL PROPERTY:

Property that consists of an abstract and nonphysical object.

COPYRIGHT:

A grant that indicated that a particular expression of an idea is the private property of an individual or a company.

ETHICAL PRINCIPLES IN BUSINESS – Various Definitions

ETHIC OF CARE:

An ethic that emphasizes cring for the concrete well being of those near to us.

ETHIC OF VIRTUE:

An ethic based on evaluations of the moral character of persons or groups.

UTILITARIANISM:

A general term for any view that holds that actions and policies should be evaluated on the basis of the benefits and costs they will impose on society.

UTILITY:

The inclusive term used to refer to any net benefits produced by an action.

UTILITARIANISM:

  • Advocates maximising utility.
  • Matches well with moral evaluations of public policies
  • Appears intuitive to many people
  • Helps Explain why some actions are generally wrong and others are generally light.
  • Influenced Economics

COST BENEFIT ANALYSIS:

A type of analysis used to determine the desirability of investing in a project by figuring whether its present and future economic benefits outweight its present and future economic costs.

EFFICIENCY:

Operating in such a way that one produces a desired output with the lowest resource input.

NONECONOMIC GOODS:

Goods such as life, love, freedom,equality, health, beauty, whose value is such that no quantity of any economic good is equal in value to the value of the noneconomic good.

INSTRUMENTAL GOODS:

Things that are considered valuable because they lead to other good things.

INTRINSIC GOODS:

Things that are desirable independent of any other benefits they may produce.

JUSTICE:

Distributing benefits and burdens fairly among people.

RIGHTS:

Individual entitlements to freedom of choice and well being.

EVALUATING UTILITARIANISM:

  • Critics say not all values can be measured.
  • Utilitarians respond that monetary and commonsensee mesures can measure everything.
  • Critics say utilitarianism fails with rights and justice.
  • Utilitarians respond that rule – utilitariansim can deal with rights and justice.

LEGAL RIGHT:

An entitlement that derives from a legal system that permits or empowers a person to act in a specified way or that requires others to act in certain ways toward that person.

MORAL RIGHTS:

Rights that human beings of every nationality possess to an equal extent simply virtue of being human beings.

CHARACTERISTICS OF RIGHTS:

  • A right is an individual’s entitlement to something.
  • Rights derieved from legal systems are limited by jurisdiction
  • Moral or human rights are based on moral norms and are not limited by jurisdiction.

SUMMARY OF MORAL RIGHTS:

  • Tigthly correlated with duties.
  • Provide individuals with autonomy and equality in the free pursuit of their interests.
  • Provide a basis for justifying one’s actions and for invoking the protection or aid of thers.

NEGATIVE RIGHTS:

Duties others have to not interfere in certain activities of the person who holds the right.

POSITIVE RIGHTS:

Duties of other agent to provide the holder of the right with whatever he or she needs to freely pursue his or her interests.

KINDS OF MORAL RIGHTS:

  • Negative rights require others leave us alone
  • Positive rights require others help us
  • Contractual or special rights require other to keep agreements.

CATEGORICAL IMPERATIVE:

The requirement that everyone should be treated as a free person equal to everyone else.

MAXIM:

The reason a person in a certain situation has for doing what he or she plans to do. 

UNIVERSALIZABILITY:

The person’s reasons for acting must be reasons that everyone could act on atleast in principle.

REVERSABILITY:

The person’s reasons for acting must be reasons that he or she would be willing to have all others use, even as a basis of how they treat him or her.

KANT’S CATEGORICAL IMPERATIVE FORMULAS:

  • Never do something unless you are willing to have everyone do it.
  • Never use people merely as means, but always respect and develop their ability to choose for themselves.

CRITICISMS OF KANT:

  • Categorical Imperatives are unclear
  • Kant’s rights can conflict
  • Kant’s theory implies some mistaken moral conclusions

LIBERTARIAN PHILOSOPHERS:

  • Believe that freedom from human constraint is necessarily good  and that all constraints imposed by others are necessarily evil except when needed to prevent the imposition of greater human constraints.

TYPES OF JUSTICE:

  • Distributive Justice: Just distribution of benefits and burdens
  • Retributive Justice: Just imposition of punishments and penalities.
  • Compensatory Justice: Just compensation for wrongs or injuries.

DISTRIBUTIVE JUSTICE:

Distributive society’s benefits and burdens fairly.

RETRIBUTIVE JUSTICE:

Blaming or punishing persons fairly for doing wrong.

COMPENSATORY JUSTICE:

Restoring to a person what the person lost when he or she was wronged by someone.

EGALITARIANISM:

Every person should be given exactly equal shares of a society’s or a group’s benefits and burdens.

POLITICAL EQUALITY:

Equal participation in, and treatment by, the political system.

ECONOMIC EQUALITY:

Equality of income, wealth and opportunity.

PURITAN ETHIC:

The view that every individual has a religious obligation to work hard at his calling (the career to which God summons each individual).

WORK ETHIC:

The view that values individual effort and believes that hard work does and should lead to success.

PRODUCTIVITY:

The amount a person produces.

PRINCIPLE OF EQUAL LIBERTY:

The claim that each citizen’s liberties must be protected from invasion by others and must be equal to those of others.

DIFFERENCE PRINCIPLE:

The claim that a productive society will incorporate inequalities, but takes steps to improve the position of the most needy members of society.

PRINCIPLE OF FAIR EQUALITY OF OPPORTUNITY:

The claim that everyone should be given an equal opportunity to qualify for the more privileged positions in society’s institutions.

ORIGINAL POSITION:

An imaginary meeting of rational self interested persons who must choose the principles of justice by which their society will be governed.

VEIL OF IGNORANCE:

The requirement that persons in the original position must not know particulars about themselves which might bias their choices such as their sex,race,religino,income,social status etc.,

PRINCIPLES OF DISTRIBUTIVE JUSTICE:

  • Fundamental: Distributive benefits and burdens equally to equals and unequally to unequals.
  • Egalitarian: Distribute equally to everyone.
  • Capitalist: Distribute by Contribution
  • Socialist: Distribute by need and ability.
  • Libertarian: Distribute by Free Choices
  • Rawls: Distribute by equal liberty, equal opportunity, and needs of disadvantaged.

ETHIC OF CARE:

An ethic that emphasizes caring for the concrete well being of those near to us.

  • Claims ethics need to be impartial.
  • Emphasizes preserving and nurturing concrete valuable relationships.
  • Says we should care for those dependent on and related to us.

COMMUNITARIAN ETHIC:

An ethic that sees concrete communities and communal relationships as having a fundamental value that should be preserved and maintained.

Objection to Care Approach to Ethics:

  • Charge: Ethic of care can degenerate into favoritism.
  • Response: Conflicting moral demands are an inherent characteristic of moral choices.
  • Charge: Ethic of care can lead to “burnout”
  • Response: Adequate understanding of ethic of care will address the need to care for the caregiver.

The Basis of Moral Judgements:

  • Evaluations of social costs and benefits.
  • Respect for individual rights.
  • Just ditribution of benefits and burdens.
  • Caring for those in concrete relationships.

MORAL VIRTUE:

An acquired disposition that is valued as part of th character of morality good human being and that is exhibited in the person’s habitual behaviour.

THEORIES OF MORAL VIRTUE:

  • Aristotle: Habits that enable a person to live according to reason.
  • Aquinas: Habits that enable a person to live responsibly in this world and be united with God in the next life.
  • MacIntyre: Disposition that enables a person to achieve the good at which human”practices” aim.
  • Pincoff: Dispositions we use when choosing between persons or potential future selves.

VIRTUE THEORY:

The theory that the aim of the moral life is to develop those general dispositions called moral virtues, and to exercise and exhibit them in the many situations that human life sets before us.

VIRTUE THEORY CLAIMS:

  • We should exercise, exhibit, and develop the virtues.
  • We should avoid exercising, exhibiting, and developing vices.
  • Institutions should instill virtues not vices.

Business Ethics – Various Definitions and Theories

Business Ethics:

The principles of conduct governing an individual or a group.

Business Ethics:

Ethics is the study of Morality.

 

Ethics is not the same as morality, it is a study  of various dimensions of Morality.

Ethics is the discipline that examines one’s moral standards or the moral standards of a society.

WHAT IS MORALITY?

The standards that an individual or a group about what is right and wrong or good and evil.

MORAL STANDARDS :

The norms about the  kinds of actions believed to be morally right and wrong as well as the values placed on the kinds of objects believed to be morally good and morally bad.

NON MORAL STANDARDS:

The standards by which we judge what is good or bad and right or wrong in a nonmoral way.

5 Characteristics of Moral Standards:

  1. Involved with serious injuries or benefits.
  2. Not established by Law or Legislature.
  3. Should be preferred to other values including self interest.
  4. Based on impartial considerations
  5. Associated with special emotions and vocabulary

NORMATIVE STUDY:

An investigation that attempts to reach conclusions about what things are good or bad or about what actions are right or wrong.

DESCRIPTIVE STUDY :

An investigation that attempts to describe or exploan the world without reaching any conclusions about whether the world is as it should be.

BUSINESS ETHICS:

A specialized study of moral right and wrong that concentrates on moral standards as they apply to business institutions, organizations and behaviour.

BUSINESS ETHICS STUDIES:

  • Moral Standards
  • How moral standards apply to social systems and organizations that produce and distribute goods and services.

KINDS OF ETHICAL ISSUES:

  • Systemic – Social Systems or institutions within which business operate.
  • Corporate – An Individual Company taken as a whole
  • Individual – A Particular individual or individuals within a company and their behaviours and decisions.

ETHICAL RELATIVISM :

A theory that there are no ethical standards that are absolutely true and that apply or should be applied to the companies and people of all societies.

Objections to Theory of Ethical Relativism:

  • Some moral standards are found in all societies.
  • Moral differences do not logically imply relativism
  • Relativism is incoherent
  • Relativism privileges the current moral standards of a society.

 

Kohlberg’s Three Levels of Moral Development :

  • Preconventional – Punishment and obedience; instrumental and relative.
  • Conventional – Interpersonal concordance; law and order
  • Postconventional – Social contract, universal principles

MORAL REASONING:

The reasoning process by which human behaviours, institutions or policies are judged to be in accordance with or in violation of moral standards.

Objections to Bringing Ethics into Business:

  • In a free market economy,the pursuit of profit will ensure maximum social benefit
  • A manager’s most important obligation is to the company.
  • Business ethichs is limited to obeying the law.

Arguments Supporting Ethics in Business:

  • Ethics applies to all human activities
  • Business cannot survive without ethics
  • Ethics is consistent with profit seeking
  • Prisoner’s dilemma argument
  • Customers and Employees care about Ethics

Elements of Moral Responsibility:

  • Individual must cause or fail to prevent an avoidable injury or wrong.
  • Individual must know what he is doing
  • Individual must act of his own free will.

RECOMMENDED WEBSITES:

http://www.scu.edu/ethics

http://www.ethics.acusd.edu

http://www.web-miner.com/busethics.htm

http://www.essential.org

http://www.sec.gov/edgar.shtml

http://www.betterworldlinks.org/book100.htm

http://www.corpwatch.org

http://www.worldwatch.org

http://www.arq.co.uk/ethicalbusiness

http://www.bsr.org

http://www.mallenbaker.net/csr

http://www.pwblf.org

BUSINESS ETHICS

Business Ethics is applied ethics in the day to day operations of the business.

It is the on the court application of our understanding or what is good and right to that assortment of institutions, technologies,transactions,activities and pursuits that we call BUSINESS.

Although ethics may be the best policy, the ethical course of aciton is not always clear.

We will try to explore this issue in details through the various series of blog postings in the coming days. The purpose is not to give moral advice but to provide a deeper knowledge of the nature of ethical principles and concepts and an understanding of how these apply to the ethical problems encountered in business.

This kind of knowledge and understanding will help managers in charge to see their way through the various ethical dilemmas that one confronts in our business life.

REFERENCE BOOK:

BUSINESS ETHICS – Concepts and Cases by Manuel G. Velaszquez

Culture & Consumer Behaviour

CULTURE :

The study of culture is the study of all aspects of a society. It is the language, knowledge, laws, and customs that give that society its distinctive character and personality. In the context of consumer behaviour, culture is defined as the sum total of learned behaviours, beliefs, values, customs that serve to regulate the consumer behaviour of members of a particular society. 

Beliefs and Values are guiding principles while customs are the usual and accepted norms of behaviour.

The impact of the culture on the society is so natural and so ingrained that its influence on behaviours is rarely noted. It is like fish distinguishing water.

Culture offers orders, direction and guidance to members of society in all phases of human problem solving.

Culture is dynamic and gradually and continually evolves to meet the needs of the society.

Culture is learned as a part of the social experience. Children acquire a set of beliefs, values and customs, which constitutes the culture,from the environment. These beliefs, values and customs are acquired through formal learning, informal learning and technical learning.

Advertising enhances formal learning by reinforcing desired modes of behavior and expectations; it enhances informal learning by providing models for behaviour.

Culture is communicated to members of society through a common language and through commonly shared symbols. Because the human mind has the ability to absorb and to process symbolic communication, marketers can successfully promote both tangible and intangible products and product concepts to consumers through mass media.

All the elements in the marketing mix serve to communicate symbolically with the audience, Products project an image of their own, so does promotion. Price and Retail outlets symbolically convey messages concerning the quality of the product.

The elements of culture are transmitted by 3 pervasive social institutions; the family, the schools and the church. A fourth social institution that plays a major role in the transmission of culture is  the mass media, both through editorial content and through advertising.

A wide range of measurement techniques is used to study culture. The range includes Projective Techniques,attitude measurement methods, field observation,participant observation, content analysis and value measurement  survey techniques.

What are you Consumer Groups? What are their Cultures?  How are you understanding and leveraging that for your business development and client engagement?

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com;  manojonkar@gmail.com; 919375970812

Social Class and Consumer Behaviour

SOCIAL CLASSES & CONSUMER BEHAVIOURS:

Social Stratification, the divison of memebrs of a society into a hierarchy of distinct social classes, exists in all societies and cultures.

Social class usually is defined by the amount of status that members of a specific class possess in relation to members of other classes. Social-class membership often serves as a frame of reference for the development of consumer attitudes and behaviour.

The measurement of social class is concerned with classifying individuals into social class groupings. These groupings are of particular value to marketers, who use social classification as an effective means of identifying and segmenting target markets.

There are 3 basic methods for measuring social class:

  1. Subjective Measurement
  2. Reputational Measurement
  3. Objective Measurement

Subjective Measures rely on an individual’s self perception.

Reputational Measures rely on an individual’s perceptions of others and 

Objective Measures use specific socioeconomic mesures, either alone or in combination with others.

Composite variable indexes sucha s the index of status characteristics and the socio economic status score, cominbe a no. of socio economic factors to form one overall measure of social class standing.

Class strucutres range from two class to nine class systems. A frequently used classification system consists of 6 classes: Upper upper, lower Upper, upper middle, lower middle, upper lower, and lower lower classes.

Profiles of these clases are reflected in differences in attitudes, in leisure activities, and in consumption habits. That is why, for the marketers, social class based market segmentation is of high importance.

Geodemographic clustering is a technique that combines geogrpahic and socio economic factors to locate concentrations of consumers with particular characteristics. Particular attention currently is being directed to affluent consumers, who represent the fastest growing segment in our population; however, some marketers are finding it extremely profitable to cater to the needs of non affluent consumers.

Research has revealed social class differences in clothing habits, home decoration, leisure activities, as well as saving, spending and credit habits.

Thus, smart marketeres tailor specific product and promotional strategies to each social-class target segment.

Which Social classes are your customers from? How are their behaviours impacted by these various factors?

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com; 919375970812

Consumer Behaviour Influencers

Consumer Behaviour & Purchase Decisions Influenced by Reference Groups and Families

Almost all individuals regularly interact with other people who directly or indirectly influence their purchase decisions. Therefore, the study of groups and their impacts on the individual is of great importance,specially for the marketers who want to influence the consumer behaviours in favour of their products and services.

Consumer Reference Groups are groups that serve as frames of reference for individuals in their purchase decisions. Reference groups include:

  1. Friends
  2. Work Groups
  3. Shopping Groups
  4. Virtual Groups & Communities
  5. Consumer Action Groups.

Normative Reference Groups are those groups that influence general values or behaviour.

Comparative Reference Groups are those that influence Specific Attitudes.

Consumer Reference Groups include groups with which consumers have no direct face to face contact such as film stars, sportspersons, other celebrities and social classes.

The credibility, attractiveness and power of the reference group affect the degree of influence it has. Reference group appeals are used very effectively by some advertisers in promoting their goods and services because they subtly induce the prospective consumer to identify with the pictured user of the product.

The 5 reference group appeals most commonly used in marketing are:

  1. Celebrities
  2. Experts
  3. Common Man
  4. Executive and Employee spokesperson
  5. Trade Spokes Character

Celebrities are used to give testimonials or endorsements as actors or as company spokespersons.

Experts may be recognized experts in the concerned product category or actors playing the part of experts.

The common man approach is designed to show that individuals who are just like the prospective customers are satisfied with the advertised product or service.

Companies are using their top executives as spokespersons because their appearance in company advertisements seems to imply that someone at the top is watching over the customer’s interest.

For many customers, their family is their primary reference group for many attitudes and behaviours.

The family is the primary target for most products and services. As the most basic membership group, families are defined as two or more persons related by blood, marriage or adoption who reside together.

There are 3 types of families: Married Couples, Nuclear Families and Extended Families. 

Socialization is the core function of the family. Other functions being economic and emotional support and the pursuit of a suitable lifestyle for its members.

The members of a family assume specific roles in their everyday functioning: such roles or tasks extend to the realm of consumer purchase decisions. Key consumer related roles of family member include influencers, gatekeepers, deciders, buyers, preparers,users, maintainers and disposers.

A family’s decision making style in influenced by its lifestyle, roles and cultural factors e.g.: husband dominated, wife dominated, joint, autonomic decisions etc.,

Classification of the families by the various stages in the family life cycle (FLC) provides valuable insights into family consumption related behaviour.

The traditional FLC begins with bachelorhood, moves on to marriage, then to an expanding family, to a contracting family and to an end with the death of a spouse.

Various other situations also exists like childless couples, live in couples, single parents or single person households.

Who are the influencers for your Customers? How does this show up in Corporate Purchase decisions?

How are you leveraging the various influencers?

MANAGMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com; 919375970812

Marketing Communication and Consumer Behaviour

MARKETING COMMUNICATION:

There are 5 basic components of communication:

  1. Sender
  2. Receiver
  3. Medium
  4. Message
  5. Feedback

 

In the communications process, the sender encodes the message using words,pictures, symbols sends it through a selected medium.

The receiver decodes the message based on his or her personal characteristics and experience, and responds based on such factors as selective exposure, selective perception, comprehension and psychological noise.

There are 2 types of communications:

 

  1. Interpersonal Communications
  2. Mass Communications

 

Interpersonal communications occur on a personal level between tow or more people and may be verbal or non verbal, formal or informal.

Interpersonal communications take place in person,by telephone,by mail,by email,on the web etc., 

In mass communications, there is no direct contact between source and receiver.

Mass communications occur through such impersonal  media as television, radio, newspapers and magazines.

Feedback is an essential component of all types of communications because it provides the sender with some notion as to whether and how well the message has been received.

The credibility of the source, a vital element in message persuasiveness, often is based on the source’s perceived intentions.

Informal sources and neutral or editorial sources are considered to be highly objective and thus highly credible. The credibility of a commercial source is more complex and usually is based on a composite evaluation of its reputation,expertise,and knowledge and that of the medium in which it advertises, the retail channel and company spokespersons.

Media Selection depends on the product,the audience, and the advertising objectives of the campaign.Each medium has advantages and shortcomings that must be weighed in the selection of  media for an advertising campaign.

Following the emergence of new technologies, many advertisers are now developing more customized communications that can reach consumers via media with narrow casting, rather than broadcasting.

The manner in which a message is presented influences its impact. One sided messages are more effective in some situations and with some audiences; two sided messages are more effective with others.

High involvement products are best advertised through the central route to persuasion, which encourages active cognitive effort. 

Marketers can either use objective,factual appeals or emotional appeals. The emotional appeals most frequently used in advertising fear, humour,sexual appeals etc.,

Audience participation is a very effective communications strategy becuase it encourages internalization of the advertising message.

What are the challenges you are facing in designing and delivering your Marketing Communications to your current and potential customers?

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com;  manojonkar@gmail.com; 919375970812

Consumer Attitutde

What is an Attitude?

An attitude is a learned predisposition to behave in a consistently favourable or unfavourable way with respect to a given object whether it is a product, product category, a brand, a service, an advertisement, a website, a store etc., Each property of this definition is critical to understanding why and how attitudes are relevant in consumer behaviours and marketing.

The 4 broad categories of attitude models are:

  1. Tri component attitude model
  2. Multiattribute attitude model
  3. Trying to Consume Model
  4. Attitude toward the ad Model

The tri component model of attitudes consists of 3 parts:

  1. A cognitive Component
  2. An affective Component
  3. A conative component

The cognitive component captures a consumer’s knowledge and perceptions about products and services.

The affective component focuses on a customer’s emotions or feelings with respect to a particular product or service. The affective component determines an individual’s overall assessment of the object in terms of some kind of favourableness scoring.

The Conative component is concerned with the likelihood that a consumer will act in a specific fashion with respect to the attitude object. The Conative component is many times treated as an expression of the customer’s intention to buy.

Multiattribute attitude models like attitude toward object, attitude toward behaviour and the theory of reasoned action models have received much attention from consumer researchers. These models examine consumer beliefs about specific product attributes. The thoery of trying is designed to account for the many cases in which the action or outcome is not certain. The attitude toward the ad models examine the influence of advertisements on the consumer’s attitudes toward the brand.

How attitudes are formed?

Attitudes are learned and the different learning theories provide unique insights as to how attitudes initially may be formed. Attitude formation is facilitated by direct personal experience and influenced by the ideas and experiences of friends and family members and exposure to mass media.

Individual’s personality also plays a role in attitude formation.

Strategies of Attitude Change can be put into 6 distinct categories:

  1. Changing the basic motivational function
  2. Associating the attitude object with a specific function
  3. Relating the attitude object to conflicting attitudes
  4. Altering components of the multiattribute model
  5. Changing beliefs about competititor’s brands, products and Services
  6. The Elaborated Likelihood Model.

Each of these strategies provide the marketer with alternative ways of changing consumer’s existing attitudes.

Cognitive dissonance theory suggests that the conflicting thoughts or information, following a purchase might propel consumers to change their attitudes to make them consonant with their actions.

Attribution theory focuses on how people assign casualty to events and how they form or alter attitudes as an outcome of assessing their own behaviour or the behaviour of the other people OR things.

What are you doing to ensure that your potential customers are creating favourable attitudes towards your company, brand, product and services? How are your competitors doing it? Talk to us for further support.

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com, 919375970812

Consumer Learning

What is Consumer Learning?

Consumer Learning is the process by which individuals acquire the purchase and consumption knowledge and experience they apply to future related behaviour.

Most of the learning is incidental. Some of it is intentional. Basic elements that contribute to an understanding of learning are:

 

  1. Motivation
  2. Cues
  3. Response
  4. Reinforcement

 

There are 2 theories on how Individuals learn:

 

  1. Behavioural Theory
  2. Cognitive Theory

 

Both contribute to an understanding of consumer behaviour.

Behavioural Theorists view learning as observable responses to stimuli, whereas Cognitive Theorists believe that learning is a function of mental processing.

3 Major Behavioural Learning Theories are :

 

  1. Classical Conditioning : Includes Repetition, Stimulus generalization and Stimulus discrimination.                                          
  2. Instrumental Conditioning: Instrumental Learning theorists believe that learning occurs through a trial and error process in which the positive outcomes in the form of results or desired outcomes lead to repeat behaviour like Repeat Purchase or Repeat Positive Word of Mouth.                                        Both positive and negative reinforcement can be used to encourage the desired behaviour. The timing of repetitions influences how long the learned material is retained. Learning usually persists longer with distributed re-inforcement schedule, while mass repetitions produce more initial learnings.                                             
  3. Observational Conditioning or Vicarious Learning:

Cognitive learning theory holds that the kind of learning most characteristics of humans is PROBLEM SOLVING. Cognitive theorists are concerned with how information is processes by the human mind: how it is stored, retained, and retrieved.

Involvement theory proposes that people engage in limited information processing in situations of low relevance to them and people engage in extensive information processing in situations of high relevance.

TV is a low involvement medium for learning and print and interactive media encourage more cognitive information processing.

Measures of consumer learning include recall and recognition tests, cognitive responses to advertising, and attitudinal and behavioural measures of brand loyalty.

A basic issue among researchers is whether to define brand loyalty in terms of consumer’s behaviours or the consumer’s attitude towards the brand. Brand Equity refers to the inherent value a brand name has in the marketplace.

Brand Loyalty consists of both attitudes and actual behaviours toward a brand and both must be measured. For marketers, the major reasons for understanding how consumers learn are to teach them that their brand is best and to develop brand loyalty.

What does your brand mean to your customers? Are they really loyal to your brand? How do you increase their loyalty?

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com; 919375970812

Consumer Perception

Perception is the process by which individuals select, organize and interpret stimuli into a meaningful and coherent picture of the world.

Perception has strategy implications for marketers because consumers make decisions based on what they perceive rather than on the basis of objective reality.

Consumers selections of stimuli from the environment are based on the interaction of their expectations and motives wit the stimulus itself. The principles of selective perception include the following concepts:

  1. Selective Exposure
  2. Selective Attention
  3. Perceptual Defense   and
  4. Perceptual Blocking.

People usually percieve things they need or want and block the perception of unnecessary, unfavourable or painful stimuli.

Consumers organize their perceptions into unified wholes according to the principles of Gestalt Psychology:figure and ground, grouping, and closure.

The interpretation of stimuli is highly subjective and is based on what the consumer expects to see in light of previous experience, on motves and interests at the time of perception, and on the clarity of stimulus itself.

Influences that tend to distort objective interpretation include Physical apprearances, stereotypes, halo effects, irrelevant cues, first impressions and the tendency to jump to conclusions.

Just as individuals have perceived images of themselvs, they also have perceived images of products and brands. The perceived image of a product or service is probably more important to its ultimate success than are its actual pysical characteristics.

Products and Services that are percieved distinctly and favourably have a much better chance of being purchased than products or services with unclear or unfavourable images.

Service Marketers face several unique problems in positioning and promoting their offerings because services are intangible,inherently variable, perishable and are simultaneously produced and consumed.

Regardless of how well the product or service appears to be positioned, the marketer may be forced to reposition it in response to market events, such as a new competitor, new strategies of existing competitors, changing market dynamics, changing consumer preferences.

The quality of a product or services is judged on the basis of a variety of informational clues; intrinsic or extrinsic. Intrinsic will be things like size, colour, flavour, aroma, packaging, look and feel. Extrinsic clues will include store image, price, brand image, service environment etc.,

In the absence of the first hand experience or other information, consumers often rely on price as an indicator of quality. How a consumer perceives a price – as high,low or fair has a strong influence on purchase intentions and satisfaction. Consumers rely on both internal and external reference prices when assessing the fairness of price.

Consumer imagery also includes perceived images of retail stores that influence the perceived quality of products they carry, as well as decisions as to where to shop.

Manufacturers or Retailers who generally enjoy a favourable image find that their new products are accepted more readily compared to those manufacturers or retailers who have less favourable or even neutral images.

Consumers often perceive risk in making product selections because of uncertainty as to the consequences of their purchase decisions.

The types of risk that the customers perceived are:

  1. Functional Risks
  2. Physical Risk
  3. Financial Risk
  4. Social Risk
  5. Psychological Risk and
  6. Time Risk.

Customers try for reducing the risk by increasing their information search, buying from reputable retailers, buying the expensive brands, and seeking reassurance in the form of money back guarantees, warranties, and pre purchase trial.

The concept of perceived risk is important implications for marketers, who can facilitate the acceptanc e of new products by incorporating risk-reduction strategies in their new product or service promotional campaigns.

How do your customers percieve you? How do your customers percieve your products? What are you doing to increase the perceptions in your favour.

Talk to us for further support:

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com; 919375970812

Consumer Research – Personality & Consumer Behaviour

Personality can be described as the psychological characteristics that both determine and reflect how a person responds to his or her environment. Although mostly the personality tends to remain consistent and enduring, it may change abruptly in response to a major life events. Personality also change gradually over time.

Theories:

3 theories of personality are prominent in the study of consume behaviour:

 

  1. Psychoanalytic Theory
  2. Neo-Freudian Theory and 
  3. Trait Theory

 

Freud’s psychoanalytic theory provides the foundation for the study of motivational research, which operates on the premise that human drives are largely unconscious in nature and serve to motivate many consumer actions.

Non- freudian theory tends to emphasize th fundamental role of social relationships in the formation and development of the personality.

Alfred Adler viewed human beings as seeking to overcome feelings of inferiorty.

Harry Stack Sullivan believed  that people attempt to establish significant and rewarding relationships with others.

Karen Horney saw inidividuals as trying to overcome feelings of anxiery and categorized them as compliant, aggresive or detached.

Trait Theory is a major departure from the qualitative or subjective approach to personality measurement. It postulates that individuals possess innate pyschological traits to a greater or lesser degree, and that traits can be measured by specifically designed scales or inventories.

Because they are simple to use and to score and  can be self-administered, personality inventories are the preferred mehtod for many researchers in the assessment of consumer personality.

Product and brand personalities represent real opportunities for marketers to take advantage of consumers’ connections to various brands they offer.

Brands often have personalities- some include “humanlike” traits and even gender. These brand personalities help shape consumer responses, preferences and loyalities.

Each individual has a perceived self image or images as a certain kind of person with certain traits, possessions, relationships, habits, behaviours etc., Consumers frequently attempt to preserve, enhance, alter or extend their self images by purchasing products or services and shopping at stores they percieve as consistent with their relevant self image and by avoiding products and stores they percieve as not consistent to their self image.

What are the personalities of your target consumers?

What is your company’s brand image? What is your product/services image?

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com;  manojonkar@gmail.com; 91-9375970812

RECESSION STRATEGY – Honour your Vision and Core Values

What should you do when in Recession?

How to Create the right Recession Strategy?

Maybe, more than anytime else, Recession is the time for the companies to be true to their Vision, get more focused on fulfilling their mission and dedicatedly honour their core values.

This is the time, when the companies and their top management are tested by the employees, customers and all stake holders. 

Are they visionaries or are they just another bunch of opportunists?

Do they really have a Vision or they have a Vision Statement as a good PR exercise.

What are their Real Core Values? or are there any core values at all, except self preservation and survival.

The difference between great companies, visionary companies and ordinary companies is very vividly visible in the way they deal with the challenging times like Recession.

This is where the rubber meets the road. This is where the CEO and the board have to walk their talk.

Do all those hours spent in the vision mission exercises mean anything?  OR the vision the first casualty of the recession.

What is the value of the Core Values created by the top management, investing some huge amount of man hours and a great amount to time and money?

All the companies, who will dump their vision and their core values at this time, are being short sighted.

Next Quarter, next financial year, when you would have survived the tough times, when you look back at those people, will you be able to talk big? will you be able to get everyone aligned on any big vision? 

 

How do you honour your values and fulfill your vision – when you are worried about going down?

That is the time, more than any other time in your life, to honour your values and be true to your vision.

This is what differentiates the originals from the fake, the men from the boys, the winners from the also rans.

 

For support contact: MANAGEMENT INNOVATIONS managementinnovations2020@gmail.com; manojonkar@gmail.com; 919375970812

Our Work in Education Field

As management consultants and advisers, we have had the privilege to work on various interesting and esteemed projects in the field of Education.

 

  1. Delhi Public School, Ahmedabad   – a K-12 CBSE School
  2. Calorex Institute of Technology – a VLSI Chip Design Institute
  3. DPS Prerna (DPS Nalanda) – A School for Dyslexic Children
  4. VISAMO – a Special Initiative for children from BPL families
  5. Zydus School for Excellence – a K-12 school from the house of Zydus Cadila.

 

 

Various Activities that we have provided valuable inputs and guidance include:

 

  1. Market Research
  2. Organizational Positioning
  3. Pricing
  4. Marketing
  5. Sales
  6. Staff Selection and Induction
  7. Teaching Staff ongoing Training & Development
  8. Admin Staff and Support Staff Orientation
  9. Customer Orientation
  10. HR & Employee Engagement
  11. Overall Growth and development

 

For further information contact:

MANAGEMENT INNOVATIONS ( erstwhile INNOVATIVE CONSULTANTS)

managementinnovaitons2020@gmail.com;   manojonkar@gmail.com; 91-9375970812

Consumer Motivation

What is Consumer Motivation?

Motivation is the driving force within individuals that impels them to action. This driving force is produced by a state of uncomfortable tension, which exists as the result of an unsatisfied need. All individuals have needs, wants and desires. The individual’s subconscious drive to reduce need-induced tensions results in behaviour that he or she anticipates will satisfy needs and thus bring about a more comfortable internal state.

All behaviour is goal oriented. Goals are the sought-after results of motivated behaviour. The form or direction that  behaviour takes-the goal that is selected-is a result of thinking processes(cognition) and previous learning(e.g. experience).

There are 2 types of goals: generic goals and product-specific goals. A generic goal is a general category of goal that may fulfill a certain need; a product-specific goal is a specifically branded or labeled product that individual sees as a way to fulfill a need.

Product-specific needs are sometimes referred to as wants.

What are Innate Needs?

Innate Needs are those an individual is born with. They are Physiological (biogenic) in nature; they include all factors required to sustain physical life (e.g. food, water, shelter, clothing, sex, physical safety etc.,).

What are Acquired Needs?

Acquired needs those an individual develops after birth are primarily psychological (psychogenic). They include love, acceptance, esteem, and self-fulfillment.

For any given need, there are many different and appropriate goals. The Specific goal  selected depends on the individual’s experiences, physical capacity, prevailing cultural norms and values, and the goal’s accessibility in the physical and social environment.

What is the relationship between Needs and Goals?

Needs and goals are interdependent and change in response to the individual’s physical condition, environment, interaction with other people, and experiences. As needs become satisfied, new, higher order needs emerge that must be fulfilled.

How do People deal with Failure in achieving the goals?

Failure to achieve a goal often results in feelings of frustration. Individuals react to frustration in two ways:”fight” or “flight”. They may cope by finding a way around the obstacle that prohibits goal attainment or by adopting a substitute goal (fight); or they may adopt a defense mechanism that enables them to protect their self esteem (flight). Defense mechanisms include aggression, regression, rationalization, withdrawal, projection,daydreaming, identification, and repression.

Motives & Behaviours:

Motives cannot easily be inferred from consumer behaviour. People with different needs may seek fulfillment through selection of the same goals; people with the same needs may seek fulfillment through different goals. 

Although some psychologists have suggested that individuals have different needs priorities, other believe that most human beings experience the same basic needs, to which they assign a similar priority ranking.

Maslow’s hierarchy of needs theory proposes five levels of human needs; physiological needs, safety needs, social needs, egoistic needs and self actualization needs.

Other needs widely integrated into consumer advertising include the needs for power, affiliation and achievement.

What are the 3 common methods for identifying and measuring human motives?

  1. Observation and Inference
  2. Subjective Reports
  3. Qualitative Research – including projective techniques.

None of these methods is completely reliable by itself.

Therefore researchers often use a combination of 2 or 3 techniques in tandem to assess the presence or strength of consumer motives.

What is Motivational Research ?

Motivational research is qualitative research designed to delve below the consumer’s level of conscious awareness. Despite some shortcomings, motivational research has proved to be of great value to marketers concerned with developing new ideas and new copy appeals.

Consumer Research

What is Consumer Research?

The field of Consumer Research developed as an extension of the field of Market Research to enable the marketers to predict how the consumers would react in the marketplace and to understand the reasons of the various purchase decisions taken.

What is Positivism ?

Consumer Research undertaken from a managerial perspective to improve strategic marketing decisions is known as Positivism.

Positivist research is quantitative and empirical and tries to identify cause and effect relationships in buying situations. It is often supplemented with qualitative research.

Qualitative Research is concerned with probing deep within the consumer’s psyche to understand  the motivations, feelings, and emotions that drive consumer behaviour. Qualitative research findings cannot be projected to larger populations but are used primarily to provide new ideas and insights for the development of the positioning strategies.

What is Interpretivism ?

Interpretivism, a qualitative research perspective, is generally more concerned with understanding the act of consuming rather than the act of buying. 

Interpretivists view consumer behaviour as a subset of human behaviour, and increased understanding as a key to eliminate some of the ills associated with destructive consumer behaviour.

Positivists generally used Probability Studies that can be generalized to larger populations.

Interpretivists tend to view consumption experiences as unique situations that occur at specific moments in time, and therefore, cannot be generalized to larger populations.

These 2 theoretical research orientations are highly complementary and, when used together, provide a deeper and more insightful understanding of consumer behaviour than either approach used alone.

The Consumer Research Process, whether quantitative or qualitative in approach consists of 6 steps:

  1. Defining Objectives
  2. Collecting Secondary Data
  3. Developing a Research Design
  4. Collecting Primary Data
  5. Analyzing the Data
  6. Preparing a Report of the Findings.

The research objectives should be formulated jointly by the marketer and the person or company that will conduct the actual research.

The finding from the secondary data and exploratory research are used to refine the research objectives. The collection of secondary data includes both the sources – internal and external.

Quantitative Research designs consist of 1. Observation, 2. Experimentation or Surveys, and, for the most part, 3. Questionnaires with or without attitude scales are used to collect the data.

Qualitative Research- data collection methods include 

  1. Depth Interviews
  2. Focus Groups
  3. Projective Techniques
  4. Metaphor Analysis.

Customer Satisfaction measurement is an integral part of consumer research.

In large, quantitative studies, the researcher must make every effort to ensure that the research findings are RELIABLE ( that a replication of the study would provide the same results) and VALID (that they answer the specific questions for which the study was originally undertaken).

The selection and design of the sample is crucial since the type of sample used determines the degree to which the results of the study are representative of the population.

After the data collection, the results are analysed and specific analytical techniques applied respectively to qualitative or quantitative data.

How are you applying Consumer Research in your business?

Talk to us.

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com; 91-9375970812

Market Segmentation

Market Segmentation and diversity are complementary concepts. Without a diverse marketplace, composed of many different peoples with different backgrounds, cultures,environments,paradigms, thoughts processes, interests, needs and wants, there really would be little reason to segment markets.

Earlier Mass Marketing – selling the same product or service package to everyone, was the most widely used marketing strategy, before the widespread adoption of the marketing concept. In many countries this is still developing and yet to become the part of the marketing and management DNA.

Market Segmentation is to be followed as a logical way to meet customers needs. Market Segmentation is defined as the process of dividing a potential market into distinct subsets of consumers with a common need or characteristic and selecting one or more segments to target with a specially designed marketing mix or product, price, promotion, place etc.,

Besides supporting in the development of new products, Market Segmentation research also supports in the redesigning and repositioning of existing products and services and in the creation of the appropriate promotional materials, including the selection of the most effective media for promotion.

Market Segmentation Strategies benefit both the customers and the marketers, hence they received full support from both parties. Market Segmentation is now widely used by most of the organizations including manufacturers, retailers, channels and even the not for profit sector.

9 Major Classes of Consumer Characteristics serve as the most common basis for Market Segmentation. These include:

  1. Geographic Factors
  2. Demographic Factors
  3. Psychological Factors
  4. Pyschographic Factors
  5. Socio-Cultural Factors
  6. Use -related Factors (Application)
  7. Use – Situation Factors (Environment)
  8. Benefits Expected and
  9. Hybrid Forms of Segmentation like Psychographic-demographic profiles  or geodemographic factors.

Key Criteria for Market Segmentation include:

1. Identification

2. Sufficiency

3. Stability

4. Accessibility.

 

Once one identifies potential target markets, one must decide whether to target 1 segment i.e  concentrated marketing OR to target several market segments i.e. differentiated marketing.

One has to then develop a positioning strategy for each of the selected target segment.

In some cases, one can recombine 2 or more market segments into one larger segments.

How do you Market Segmentation in your company?

MANAGEMENT INNOVATIONS

managmentinnovations2020@gmail.com;  manojonkar@gmail.com; 91-9375970812

Customer and Consumer Behaviour

The study of consumer behaviour enables the marketers to fully understand and be able to predict the consumer behaviours. It deals with not only with what the customer buy, but also with why, when, where, how, and how often they buy it.

Consumer Research is the Methodology that is used to study Customer and Consumer behaviour and it takes place at every stage/phase of the consumption process: before, during, and after the purchase.

The foundation fo the consumer behaviour is the Marketing Concept. Marketing Concept is the business orientation that evolved in the second half of the last century and is picking up more and more in the current environment. Marketing Concept was the evolution of the industry over the earlier concepts of production and product.

The 3 major strategies tools fo marketing are Market Segmentation, Targeting, and Positioning.

The Marketing Mix consists of a company’s products and services offering(S) to customers and the pricing, promotion and distribution methods needed to accomplish the deal.

The Professional Marketers make the customers the core of the company’s culture and ensure that all employees view any interaction with the customers as a part of a Customer Relationship and not just a Transaction. The Top 3 drivers of successful relationships between marketers and customers are customer value, high levels of customer satisfaction, and building a  structure for customer retention.

Consumer behaviour is multi disciplinary, i.e it is based on various theories and concepts about people that have been developed by scientists in such diverse disciplines as economics, cultural anthropology, social psychology, sociology and psychology.

Consumer behaviour has to be an integral part of strategic market planning. 

Contact for further inputs:

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com;   manojonkar@gmail.com;  91-9375970812

Consultative Sales – First Step – Pre Sales Preparation

Pre Sales Preparation is one of the most under estimated sales tool. Over a period of time, pre sales preparation gets compromised for one reason or the other. There is always some other urgent, seemingly more important work running the clock, and this foundation keeps getting neglected.

Consultative Sales is built on Credibility. Credibility is built on knowledge and mastery. Knowledge and Mastery of one’s own industry, products, services, past projects, difference made to the customers businesses, successes and breakdowns.

One also needs to know the competitors, their products, services, strengths, weaknesses, strategies etc.,

Most importantly, we need to learn the customer’s company, industry, the challenges, the opportunities and what are the best ways that we can make a difference to these potential or existing clients.

Every dollar invested in pre sales preparation will pay back atleast 100 times.

To know what and how you need to do pre sales preparation for your business, feel free to get in touch with us.

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com ;  manojonkar@gmail.com;  91-9375970812

Change Management – First Deal with Harboured Resentments

The impact of Harboured Resentments could be the following:

1. You have traitors in the game, who pretend to be committed to what you are planning, but are secretly waiting for or even planning your failure. You trust them and they will betray you.  If you delegate to them, then it is your funeral.

2. Some of them will be vociferous about their upsets, of course, not the real issues, but some other issues, like why your plans will not work etc., It is good, that atleast these people have been identified by you. They may not be easy to deal with, but atleast you know who they are.

3. The real dangerous people are the ones, who have the harboured resentments, and do not say anything against you. They are the ones, who will pretend to play ball, and at the right time, not do what you expect them to do, or, work behind your backs and create strategic attacks on you. This is very difficult to deal with and almost impossible to address once they have begun their attacks. The only time, you can be effective is , if you can identify them and get them to be transparent and get their issues addressed. Otherwise you have neutralize them, marginalize them or even remove them – even if they are otherwise good capable people.

Ignore this at your own peril.

For help in identifying these kind of people in your organization, you can get in touch with us.

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com;     manojonkar@gmail.com ;     91-9375970812

Key Challenge of Change Management & How to deal with it

There are innumerable challenges in any Change Management Processes, whether the change management is in a for profit or not for profit organization.

The key factor that everyone knows for change management is People.

But, what may not be known is the real challenge in dealing with People. The real challenge in most cases is the harboured resentments. Harboured Resentments may be for any reasons, may be against anyone, against the person leading the change movement or the top management, or the old management.

Harboured Resentments are very difficult to be dealt with since, most of the times, one does not even know who has what harboured resentment, and naturally, the person concerned is not communicating the same.

Most Change Management efforts fail or give less than optimum results because of the Harboured Resentments.

Some things that one can try to deal with the challenge of Harboured Resentments are:

  1. Before starting any change management exercise, make a list of people involved in the current situation and how they could be affected by the change. What kind of conversations they are having for this change? Who are they blaming and for what? what are they upset about? what is taking away their attention? where are they getting stuck?
  2. Get all the reasons for the proposed change up on the table and have everyone empty the cup with regards to the need for the change.
  3. Ensure that the environment of Blame on anyone, is dealt with and everyone is trained and enrolled to communicate. Tell everyone that there will be Harboured Resentments and if they do not speak up and they do not get complete it for themselves, it will come in the way of the performance.
  4. Each Person has to be encouraged continually for being in full communication and any upset or potential upset has to be resolved with urgency.
  5. Teamwork and clear cut accountabilities for each and every person will help.
  6. Creating small winnable games for the teams to start experience winning.

For further inputs on this aspect of Change Management, please be in communication with us.

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com,  manojonkar@gmail.com, 91-9375970812

Some More Information on Courses available at Landmark Education

As a lifetime participant and a person assisting, we have found most of the courses available at Landmark education to be very rewarding and enriching.

The curriculum for living has the following courses:

1. The Landmark Forum

2. The Landmark Forum in Action ( Seminar Series)

3. The Landmark Advanced Course

4. The Landmark Self Expression and Leadership Course.

 

The Graduate Curriculum has approx 16 different 10 session seminar series on various topics like:

Money, Relationships, Effectiveness and Velocity, Living Passionately, Being Extraordinary. Breakthroughs, Commitment – Power of the Word, Integrity, Sex & Intimacy, Beyond Fitness.

The Communication Curriculum has various Courses inlcuding:

Communication – Access to Power     and

Communication – Power to Create.

There are also other courses like Team Management and Leadership Program,

Landmark Forum for Young People

Wisdom Course.

For Corporate Transformational Work: there is Landmark Education Business Division, now called the VANTO Group.

For further details contact a local Landmark Education Office or visit http://www.landmarkeducation.com

Happy Customers:

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com, manojonkar@gmail.com, 919375970812

Recommended Education for All – Landmark Education

We spend 16 years for our Schooling and Education that enables us to earn a living.

Landmark Education provides Learning for Living a Life you love and Living Life Powerfully.

The education starts with a 3 & 1/2days and the whole curriculum can be completed within 6 months or so.

Please check the website: http://www.landmarkeducation.com

The education is based on the science of applied philosophy and ontology. People get free from the constraints of the past on the thinking and view of life and allows them to create their life, and each and every aspect of their life.

It is available in more than 150 cities globally.

MANAGEMENT INNOVATION,

managementinnovations2020@gmail.com, manojonkar@gmail.com, 91 – 9375970812

Books: E-Myth Mastery and Awakening the Entrepreneur within

Some other good books from E-Myth and Michael Gerber.

  1. E Myth Mastery – The 7 essential disciplines for building a World Class Company
  2. Awakening the Entrepreneur Within

Websites:

http://www.e-myth.com

http://www.emythmastery.com

Must read for all entrepreneurs and all those inspiring to be entrepreneurs.

How to create organizations which are run by systems and those systems are run by people, instead of self dependent organizations or people dependent organizations.

The guideline is to WORK ON THE BUSINESS and not just  IN THE BUSINESS.

From time to time, we will be recommended various books and reading materials. We will not have any connections with them, except when categorically mentioned.

We are exploring some such strong concepts being brought into the markets like India through National Collaborations. We are in touch with such like minded organizations and will keep you updated on the developments.

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com; 919375970812

http://www.linkedin.com/manojonkar

TOWS – Threat, Opportunity, Weakness, Strengths

SWOT has been the standard approach for any business analysis and personal analysis.

Now the trend is to look at the Threats first, and hence the reverse approach to start with T O W S.

SWOT can be said to be Inside out way of thinking and TOWS can be said to be the outside in way of thinking.

Today, in discussion with one of the clients, we were discussing THREATS of TOWS in further details.

THREATS:

  1. Threats can be to the current state as well as to the desired future state.
  2. Threats can be to current market share, customer base, revenue, profitability, manpower, resources, channel and other key factors.
  3. Mapping all possible threats may be a good starting point. One must map all possible threats including the ones, that you are currently able to manage successfully.
  4. Mapping all players, all key stake holders, all constituency will help you generate awareness.
  5. Mapping all possible direct and indirect competition and their strengths is difficult but very useful.

For further details contact us at

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com; 919375970812

http://www.linkedin.com/in/manojonkar

Complaints and Unfulfilled Expectations against Management Consultants

We invite all of you to write to us on managementinnovations2020@gmail.com or on this blog, based on your first hand experiences, what have been your moments of dissatisfaction, what have been your complaints, where you have found the Management Consultants not delivering your expectations, where have you found them not in your world.

The opportunity is to share and create awareness and also get inputs on what to do in such situations. 

This would be a WIN WIN for the clients and the consultants reading this blog.

Requested to avoid the names of the consultants and the consultancy firms.

MANAGEMENT INNOVATIONS

managmentinnovations2020@gmail.com; manojonkar@gmail.com, 919375970812

Recommended Readings for Recession Times

If you have not read by now, or even if you have read it once, good time to re- read the extra ordinary book and concept by Management Guru – C.K. Prahlad – “The Fortune at the Bottom of the Pyramid”.

The biggest innovations in the management field have been the new, out of the box, revenue models and business models.

Fortune at the Bottom of the Pyramid concept gets companies access to markets, which were generally not even considered as potential markets ( and of course they are the bigger ocean).

Companies will have to rethink their business models, but those new business models created for tapping the bottom of the pyramid may alter the history of the enterprise as well as the industry and it has a parallel opportunity to make a big difference to the society, while taking care of the stake holders and the stock holders requirements.

Along with that we also recommend the book BLUE OCEAN STRATEGY.

Using both the books as reference points, one can create a unique strategy which will help the companies whether small or big, to emerge as WINNERS in the current times as well as in the future to come.

MANAGEMENT INNOVATIONS,

managementinnovations2020@gmail.com ;  manojonkar@gmail.com ; 919375970812

Recommended Readings for Entrepreneurs

We have found E-Myth, and its various related products by Michael Gerber, including E-Myth revisited, in the dreaming room and various other books and online products a great source for all entrepreneurs.

E-myth guides the entrepreneurs in creating an organization that is not dependent on them, that is systems driven, people are able to grow and contribute fully to the organization, each staff and the entrepreneur is able to fulfill their vision for their life and create a professionally run smooth enterprise.

It also helps to plan the business, in such a way, that, if one wants to explore the route of franchising in the future, one can do so effortlessly.

Search on the net for E-Myth and Michael Gerber will give a good amount of data. Books are available in local book stores also.

http://www.e-myth.com

http://www.emythmastery.com

We have no association with the author or their organization or products, except that we have read and found it of very high quality and would recommend to anybody without any concern.

Management Innovations

managementinnovations2020@gmail.com;    manojonkar@gmail.com; 91-9375970812

How are you using Social Networking sites?

Are you using social networking sites for expanding your business, finding potential team members, finding potential service providers with the right references, finding the best sales channel, best technologists,best consultants?

do you want to use social networking sites to build your business, find new customers, do subtle marketing?

Contact us

Management Innovations

managementinnovations2020@gmail.com; manojonkar@gmail.com; 919375970812

How are you leveraging the Net for your Business?

Do you have a product with good brand recognition in the offline world, but do not have much online presence?

How many customers are coming to you because of your online presence?

How much percentage of your business is happening because of your online marketing?

What is your online marketing strategy? do you want to brainstorm with us on what is possible in the area of using online marketing to expand your business?

Do you want to do market research?

Do you want to create parallel sales channel?

Do you want to get across the a new customer segment?

Do you want to supplement your advertisement with online activites which draw potential customers to you?

Talk to us

Management Innovations

managementinnovations2020@gmail.com

manojonkar@gmail.com

919375970812

What is your vision? What is your dream?

What is your dream and vision for your organization, we are here to support you in fulfilling the same.

Write to us on managementinnovations2020@gmail.com

If you want support in articulating your vision? Getting clear on the plans for your business?

or creating strategies for your business growth or dealing with any other challenges like Marketing/Sales/HR/Systems/Processes/Training

feel free to write/talk to us.

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com

manojonkar@gmail.com

91-9375970812

RECESSION – Shortage of Ideas

Recession can also be looked upon as an environment, in which industries have stopped causing enough value addition to its client base.

Recession is, where the value of your services go down drastically and the premium that you were once expecting, same products and services are now being sold at discount and at some level, are not even being sold at discount, they have become of very less utility in the current environment.

Maybe recession is a function of an industry not having been innovating rapidly enough and the customers have now not been finding enough value for money or as critical.

Client Centric Innovation, moving 1 curve ahead of the industry is what would allow the company to be able to serve the customers in their tough times, and thus avoid the tough times for oneself.

Most of the times, customers do not stop needing things, they just need the same things in a little different way:

1. Special Rates 2. Special Packages 3. Special Combos 4. Special Product range 5. Economy product range 6. Products / Services which the customers would be interested to buy even now by the virtue of effective cost of ownership and cost of usage.

e.g. Low cost housing in the  Construction Industry, High fuel efficient cars at the same price points as the low mileage cars

THE NEW CLIENTS:

Innovation is also required for making your products available to the customer bases that you have not been targeting initially.

Some new applications, some modifications, some new paradigms can create a once in a blue moon idea, which will alter the future of the company.

All the brains in the company need to be tapped for such innovations or possibilities exploration.

Top Management involvement and commitment is critical for developing such a culture, where people are not operating from the recession of ideas.

May be recession of ideas lead to recession of possibilities lead to recession in the markets.

And a new wave of ideas is going to create a new wave of possibilities and a set of new opportunities in the market.

Cost Cutting – How and Why? Are you cutting your flab or your arm?

Cost Cutting is very important in a slow down but at the same time, one has to ask oneself are you cutting down costs or are you cutting down your muscle, your strengths.

Right Sizing is important. Are you cutting down the non- productive people, or are you cutting the non-political people?

Are you cutting people or are you cutting the wastage in the processes?

Is your efficiency increasing or are you just increasing the stress on the current people?

Are you firing people in a way that leaves the existing people searching for their jobs, even when you wanted to retain some of those key people.

System and Processes fine tuning and powerful implementation is important for sustained growth right now and over time.

For guidelines on cost control and recession management, talk to us:

managementinnovations2020@gmail.com; 919375970812

Old Customer Relationships for dealing with the Economic Slowdown

STRENGTHEN YOUR RELATIONSHIPS WITH THE OLD CUSTOMERS:

In a growing economy, you can focus on the new business and can survive and even grow without having to fully serve the old customers. The Customer Relationships and the Loyal Customer Base becomes the lifeline for surviving the Recession.

If you have been maintaining great sustained well managed relationships with your current and old clients – great, fantastic. If not, wake up, before it gets too late.

Call up all your old clients. You call up. Do not delegate to some new sales person. You have to provide the best space to make this work. Find out who in the company has the maximum rapport with this old client and have them help you create the bridge.

Talk to the clients, find out what are they upto, findout new opportunities to serve them. Give Positive energy to all of them, irrespective of their immediate business opportunities and build rapport which will not only last you something in the next month but will help you to not only survive the recession, but will also help you grow phenomenally, the moment the market starts opening up.

 

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com; 919375970812

How to Survive the Recession: Sell like Mad and keep your Market Share

MAINTAIN YOUR MARKET SHARE:

Sell. Sell. Sell.

And

Sell. Sell. Sell.

And 

Sell. Sell. Sell.

 

Sell more products, cover more market, Offer more product range, Offer value added services, Offer economical options, offer packages, offer low cost, offer gaurantees, offer combos, offer free stuff, etc.,

Sell. Sell. Sell.

Increaes your market penetration.

Maintain Relationship with Old Clients. Really serve them. Exceed their expectations.

Increase your market coverage and your customer relaitonship.

Talk to the customers. Listen to them. Do not listen to what you want. Listen to what they want.

Time to make everyone pull their weight and shoulder the responsibilities. 

All hands on deck.

 

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com;   manojonkar@gmail.com; 919375970812

SPIN SELLING

Spin Selling by Huthwaite UK is one of the highly researched sales models.

Neil Rackham also has published books on SPIN SELLING including Handbook of field Sales.

We can support companies in converting all their marketing and selling in alignment with the principles of the SPIN selling models.

The Presales, the Appointment Process, the Understanding Client Needs, the Expansion of the Client Needs and Problems, the Science of Proposing a Solution, the Negotiation and the Sales Closing Techniques as well as the Post Order Process can be made all in alignment with the principles of SPIN SELLING system.

SALES TRAININGS – GUIDELINES

What kind of topics are required to be covered in the sales trainings?

How long is the Sales training supposed to be?

What is the required frequency of the Sales training ?

First things first.

* Do the Sales Team have the basic communication skills, if not, deal with that immediately or find repalcements.

* Train them into the following things:

  1. The Products and Services offered by the Company.
  2. How are the Products Manufactured and the Services Delivered.
  3. All Sales People should know a little about each department and how it works and what is its role and what are their strengths.
  4. Sales Team should know the complete history of the company, its past products, services, markets covered, key customers, successes, accomplishments, awards, testimonials etc.,
  5. Sales team should be fully exposed to how the customers use the products and services and how the customers are benefited by the use of your products and services.
  6. The detailed understanding of the customer, customers business, customer’s challenges and opportunities, customer’s industry, SWOT and TOWS of the customer and their industry etc., can make a sales person graduate to being a sales consultant.
  7. Knowing about the company’s past clients, past projects, portfolio, industry presence, key accomplishments, recognition, collaborations etc., will help the sales person represent the company in a more effective way.

Consultative Sales

Consultative Sales methods like SPIN Selling, Action Selling and other world class sales methodologies are important not only for the sales team, but for actually the whole company.

One of the top management consultants had once mentioned – how many sales people should be there in a company. As many as the No. of staff that the company has.

It means that each and every person, whatever is the role, has to think from the customer perspective also, al the time.

It would be a good idea to have key people from all the departments trained and exposed to such thinking.

Consultative Sales (Customers come to you during Recession also)

Like you go to the doctors, when you have a problem.

Consultative Sales will help you get connected and engaged with the customers to the level that they would come to you first for solving the problems that they are facing.

Sales Training, Pre Sales, SPIN Selling, Consultative Sales, Proposal Making, Proposing Solutions, Negotiations, Closing techniques are couple of areas where we will support.

SALES, MARKETING & MARKET RESEARCH (Make your company recession proof)

Sales, marketing, market research are a dynamic cycle of continuous study and implementation.

Researching the various target customers based on our best ability to serve their needs in the most effective manner, creates a great relationship between the customers and the company.

As the customer needs keep changing, mapping the needs on a regular basis, re-evaluating the service offerings, customizing the solution packages, fine tuning the delivery mechanism are regular requirements.

Stronger brand awareness, stronger customer engagement, the integration into the customers life style (personally or professionally), becoming indispensable by solving their mission critical problems and supporting them in fulfilling their dreams and visions.

Geographical reach along with strong segmentation and mapping each segment is important.

This is one of those make or break areas of the organization where the top management has to be keenly involved.

Strategy Implementation – BSC (Balanced Scorecard way)

Balanced Scorecard by Dr. Robert Kaplan and Dr. David Norton is one of the strong tools available currently in supporting the companies to get clear of their strategy and to do holistic, organization wide implementation. Strategy Maps and Balanced scorecards are very useful tools for strategy planning, communication, monitoring, evaluation, course correction and overall implementation.

Ensuring that the strategy implementations is done powerfully on all the 4 perspective of Finance, Customer, Process and Capability perspectives, organizations can ensure that on a daily basis they are moving forward in the strategy implementation.

Highly committed and transformed organizations also have couple of other dimensions including Impact on Society.

Different organizations depending on their genre will have different focus, e.g. government, NGO and similar organizations may not be highly focused on the financial perspective.

R&D organizations, Manufacturing Organizations etc., may have extra focus on the process perspective.

“Learning organizations” may focus more on the capability, learning and growth perspective.

But each and every organization committed to sustainable growth have to have balanced growth.

Team alignment, each department scorecard, each individual scorecard, the vertical and horizontal alignment and the lead and lag measures are very useful dimensions of implementing strategy the BSC way.

Need support in creating or implementing your strategy?

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com

919375970812

Strategy Creation – SWOT, TOWS & Blue Ocean Thinking

Strategy creation begins with SWOT or actually better is TOWS i.e. SWOT in reverse.

Starting with Threats, Opportunities, Weakness and Strengths.

As we facilitate the TOWS analysis, you will see lot of inputs on which you can create the strategy.

Industry Analysis, Competition Analysis and Blue Ocean Thinking.

Organizational Strategy will also include product strategy, marketing strategy, finance strategy, hr strategy, sales strategy, production strategy etc.,

 

For help on implementing SWOT, TOWS and other Strategy creation and implementation processes, contact us:

MANAGEMENT INNOVATIONS

 managementinnovations2020@gmail.com; manojonkar@gmail.com;

919375970812

How we help you implement your vision,mission and values

  • An original authentic vision is always easy to share with passion and get people’s alignment.                                                                 
  • You will be guided on how to share your vision effectively and get your people on board.                                                                                   
  • Re-evaluating each work done on a day to day basis and differentiating between which is forwarding the mission and the vision and is in alignment with the Core Values and what is not.        
  • Identifying the most critical actions and conversations required in your organization for the fulfillment of the vision, mission and honouring the core values.                                                        
  • Creating a clear list of WHAT’S ON and WHAT’S NOT ON in the organization.                                                                                                             
  • Education, Education and Education for the team.                                   
  • Seniors walking the talk.

For detailed inputs on Creating and Implementing Vision and Mission, contact:

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com;  manojonkar@gmail.com; 919375970812

How we help you create your Vision,Mission & Core Values

We do not believe in Vision Statements and Mission Statements. You want some good statements, please search on google, get some interesting ones and play with words and create a good one for yourself.

We are interested in VISION and not just Vision Statement.

VISION is not available in the search on google. Vision is available on search in your self, your dreams, your ambitions, your values, your priorities and your view of life.

We will guide you to explore and get in touch with your real vision and how you can have your enterprise be fulfilling that vision.

An authentic vision, when shared, creates full enrollment and inspiration for the team members and staff. Alignment becomes easy and you can deal with the next step that is Strategy.

For more information contact:

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com;  manojonkar@gmail.com; 919375970812

For Educational Institutions

Educationists and Educational Institutions are our first love.

We have full understanding of the various challenges faced by you.

We have worked with half a dozen institutions and have helped them setup, grow and flourish.

Some of the Educational Institutions that we have worked with include:

  • DPS (Delhi Public School, Bopal)
  • Calorex Institute of Technology
  • DPS Prerna (DPS Nalanda)
  • Visamo Kids Foundation
  • Zydus School for Excellence
  • Vivekananda Institue of Indian Management

Check our list of services on the home page.

Looking forward to create magic in your institutions.

This will be our service to society.

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com

manojonkar@gmail.com

919375970812

For Government, Associations & NGOs

  • Inside of our commitment to make a big and lasting difference, we consider it our privilege to be able to support various initiatives of the government, associations and the NGOs.                     
  • Authorised persons who have to right to represent the concerned departments are encouraged to get in communication with us directly.                                                                        
  • We will go out of our way to contribute and make a difference to your projects.

Please check the home page for our services list.

Some of the Related Organizations that we have worked with include:

  • VISAMO KIDS FOUNDATION
  • CALOREX FOUNDATION
  • RAMANBHAI FOUNDATION (Zydus)
  • VIVEKANANDA FOUNDATION FOR INDIAN MANAGEMENT.
  • GCERT (Gujarat State Council for Education, Research and Training) – through their Gandhinagar DIET (Distrinct Institute of Education and Training)

Also check: http://www.linkedin.com/in/manojonkar

 

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com

919375970812

For Entreprenuers

  1. We love supporting entrepreneurs, specially the ones who are willing to learn the world class management systems and grow their organizations systemically.                                                                         
  2. We have some extra ordinary contribution planned for you.

Please check our list of services on the home page.

Also check profile in the blog.

Linkedin : http://www.linkedin.com/in/manojonkar

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com;  manojonkar@gmail.com

919375970812

For SME

  1. Compete with the biggies, by getting the best management advice from experts.                                                                                                     
  2. Break the shackles.                                                                                                         
  3. Dream Big and Achieve it.

Check our Set of Services and our Profile on this blog.

Also check http://www.linkedin.com/in/manojonkar

 

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com;  manojonkar@gmail.com

919375970812

FREE ADVISORY SERVICE – Consulting,Mentoring,Coaching,Training & Counselling

An Experiment in Open Source Consulting.
We are starting a breakthrough concept. FREE CONSULTING, MENTORING, COACHING & COUNSELLING.
We will start with free consulting online on a wide variety of topics:

  1. VISION, MISSION & CORE VALUE – creation and org. alignment
  2. GROWTH STRATEGY
  3. OD, CULTURE BUILDING, LEADERSHIP DEVELOPMENT
  4. PROCESS CONSULTING
  5. MARKETING (offline, online & eCommerce)
  6. SALES
  7. HR
  8. TRAINING (Sales, Customer Care, Marketing, Leadership, Soft Skills,Attitude, Team Work etc.,)

Terms and Conditions for FREE Consulting Services

Terms and Conditions for FREE Consulting Services: 

  1. Consulting Services available will include Consulting,Mentoring,Coaching, Training, Counselling.
  2. All companies and individuals requesting the FREE Consulting will be sending the details of their company and the topics on which they want these advisory services by email or on the blogs.
  3. For any further clarity on any of the responses provided, the concerned companies and individuals will have the freedom to be in communication on email/blog again without any charges whatsoever.
  4. In extra ordinary circumstances, telephonic services may be provided on the sole decision of Management Innovations.
  5. Customers using these services are expected to be sharing back the results and progress that they accomplish utilizing our services and we expect to get testimonials and recommendations from them.
  6. Management Innovations will reserve all the rights to use the database for its website or blogs as client profiles and client testimonials. But no information will be shared with any other party. We are completely against SPAM and will not do or allow anybody to do any spamming.
  7. All the advisory services will be given to the best of our ability and based on the information shared. Management Innovations and the consultants involved will not have any liability towards the actual implementation or the actual results and that will remain the complete responsibility of the company and the people involved.
  8. For any further clarification, please feel free to ask on the blog or by email to managementinnovations2020@gmail.com