ETHICS IN THE MARKET – Theories and Definitions Tuesday, Dec 2 2008 

PERFECT COMPETITION:

A free market in which no buyer or seller has the power to significantly affect the prices at which goods are being exchanged.

PURE MONOPOLY:

A market in which a single firm is the only seller in the market and which new sellers are barred from entering.

OLIGOPOLY:

A market shared by a relatively small number of large firms that together can exercise some influence on process.

MARKET:

Any forum in which people come together for the purpose of exchanging ownership of goods or money.

EQUILIBRIUM POINT:

The point at which the amount of goods buyers want to buy exactly equals the amount of goods sellers want to sell, and at which the highest price buyers are willing to pay exactly equals the lowest prices sellers are willing to take.

DEMAND CURVE:

A line on a graph indicating the most that customers would be willing to pay for a unit of some product when they buy different quantities of those products.

SUPPLY CURVE:

A line on a graph indicating the prices producers must charge to cover the average costs to supplying a given amount of a commodity.

PRINCIPLE OF DIMINISHING MARGINAL UTILITY:

Each additional item a person consumes is less satisfying than each of the earlier items the person consumed.

PRINCIPLE OF INCREASING MARGINAL COSTS:

After a certain point, each additional item a seller produces costs more to produce than earlier items.

POINT OF EQUILIBRIUM:

The point at which the supply and demand curves meet, so amount buyers want to buy equals amount suppliers want to sell and price buyers are willing to pay equals price sellers are willing to take.

Perfectly Competitive Free Markets are characterized by the following 7 features:

  1. There are numerous buyers and sellers, none of whom has a substantial share of the market.
  2. All buyers and sellers can freely and immediately enter or leave the market.
  3. Every buyer and seller has full and perfect knowledge of what every other buyer and seller is doing, including knowledge of prices, quantities, and quality of all goods being bought and sold.
  4. The goods being sold in the market are so similar to each other that no one cares from which each buys or sells.
  5. The costs and benefits of producing or using the goods being exchanged are borne entirely by those buying or selling the goods and not by any other external parties.
  6. All buyers and sellers are utility maximizers. Each tries to get as much as possible for as little as possible.
  7. No external parties(such as government) regulate the price, quantity, or quality of any of the goods being bought and sold in the market.

MORAL OUTCOMES OF PERFECTLY COMPETITIVE MARKETS:

  • Achieve a certain kind of justice.
  • Satisfy a certain version of utilitarianism.
  • Respect certain kinds of moral rights.

MONOPOLY MARKET CHARACTERISTICS:

  • One Seller
  • High Entry Barriers
  • Quantity below Equilibrium
  • Prices above equilibrium and Supply Curve
  • Can extract monopoly profit.

OLIGOPOLISTIC COMPETITION:

IMPERFECTLY COMPETITIVE MARKETS:

Markets that lie somewhere between the two extremes of the perfectly competitive market with innumerable sellers and the pure monopoly market with only one seller.

HIGHLY CONCENTRATED MARKETS:

Oligopoly markets that are determined by a few large firms.

HORIZONTAL MERGER:

The unification of two or more companies that were formerly competing in the same line of Business.

PRICE FIXING:

An agreement between firms to set their prices at artificially high levels.

MANIPULATION OF SUPPLY:

When firms in an oligopoly industry agree to limit their production so that prices rise to levels higher than those that would result from free competition.

EXCLUSIVE DEALING ARRANGEMENTS:

When a firm sells to a retailer on condition that the retailer will not purchase any products from other companies and/or will not sell outside of a certain geographical area.

TYING ARRANGEMENTS:

When a firm sells a buyer a certain good only on condition that the buyer agrees to purchase certain other goods from the firm.

RETAIL PRICE MAINTENANCE AGREEMENTS:

A manufacturer sells to retailers only on condition that they agree to charge the same set retail prices for its goods.

PRICE DISCRIMINATION:

To charge different prices to different buyers for identical goods or services.

UNETHICAL PRACTICES IN OLIGOPOLY INDUSTRIES:

  • Price – Fixing
  • Manipulation of supply
  • Exclusive dealing arrangements
  • Tying Arrangements
  • Retail Price Maintenance Agreements
  • Price Discrimination

PRICE LEADER:

  • The firm recognized as the industry leader in oligopoly industries for the purpose of setting prices based on levels announced by that.

TRUST:

An alliance of previously competitive oligopolists formed to take advantages of monopoly powers.

MAIN VIEWS OF OLIGOPOLY POWER:

  • Do-Nothing View
  • Anti trust View
  • Regulation View

CONSULTANCY SERVICES OFFERED Monday, Dec 1 2008 

MANAGEMENT 

  • Facilitating CREATION OF VISION, MISSION AND CORE VALUES
  • Guding in GETTING THE ORGANIZATION ALIGNED ON THE VISION,MISSION AND CORE VALUES
  • Supporting in POLICIES AND PROCESSES – REINTERPRETATION & REFINEMENT based on the Vision, Mission and Core Values.
  • Creating Operating guidelines for each and every role holder inside of the Vision,Mission and Core Values
  • Facilitating Creating Strategies for the short term and long term growth strategy. We recommend using the Blue Ocean Strategy along with TOWS (SWOT) as the starting point of planning.
  • Guiding in the Strategy Implementation. We recommend the BSC – Balanced Score Card given approach as the guiding principle for Strategy Implemenation.
  • Creating Systemic and Systematic Change Management disciplince.

MARKETING

  • Facilitate creation of the Marketing Strategy
  • Guiding on Shortlisting of the Target Market Segments
  • Advice on Creating Specific Strategies for each Specific Target Market Segment.
  • Support on Implementing the Marketing Strategies including using various medium including eStrategies
  • Guidelines for ongoing monitoring, feedback and updating the Marketing Strategies.
  • Continuous innovation and work on Branding and Positioning.
  • Inputs on Online Marketing

 

SALES

  • Training and coaching people on the World Best Consultative Sales Models ( We recommend Huthwaite’s SPIN Model as the foundation for learning Consultative Sales. There are some other good models which can also be used)
  • Guiding people on Key Account Management Strategies.
  • Guiding people on Relationship Marketing as building long term mutually rewarding and respecting relationships with clients.
  • Guiding in Channel Management and Market Coverage Strategies and Implementation
  • Facilitating a Sales and Marketing oriented culture in the organization.
  • Creating a result oriented culture with strong MIS and reporting systems with continuous updates, feedback, coaching, interventions.
  • Guiding on Online Sales, Web Stores, ECommerce, Online Business, Online Lead Generation

 

HR

  • Guide in Creating Performance Based Culture fostering leadership,initiative, ownership and result orientedness.
  • Facilitating KRA setting, performance management, performance appraisal, issue resolutions, teamwork, and growth orientation. 
  • Guide in Creating HR as a strong back bone enriching and supporting the vision, mission, core values and the strategy implementation.
  • Advise on Creating People Development and Talent Management as everyday responsibility of the Supervisors and Managers and integrating it with everyone’s KRAs and Performance Appraisals.

 

TRAINING:

  • Vision, Mission, Core Values – Consulting and Workshops.
  • Strategy Creation – Consulting and Workshops
  • Market Segmentation – Consulting and Workshops
  • Consultative Sales – Consulting, Workshops & Coaching Camps
  • Leadership, Managerial and Supervisory Development, Soft Skills, Attitude, TeamBuilding, Holistic Self Development – Consulting, Workshops and Coaching Camps

MANAGEMENT INNOVATIONS

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

Consultative Sales – First Step – Pre Sales Preparation Wednesday, Nov 19 2008 

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

Consultative Sales Wednesday, Nov 5 2008 

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) Wednesday, Nov 5 2008 

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.