Are you on the right team?

21 05 2007

 When the focus at work is on providing a great product or service to the customer (maximizing) the perceived value of the product is higher for the customer, and they are willing to pay more.

This translates into more profit for the company.

When our focus is on maximizing profit for the company, management tends to rush toward cost cutting and/or reducing product quality (minimizing) many times resulting in reducing perceived product or service value for the customer.

The customers may not buy your product now, resulting in less profit for the company.

It’s all about providing a product or service that will be appreciated, sought out and embraced by the market.

Creating a product or service that is valuable to the market.

The more people want YOUR product, the more money they will pay for it.

It’s about listening to customers, creating new ideas, innovating, and taking calculated risks based on your expertise and understanding of your business.

It’s not easy.  Creating has never been easy.

Success is not guaranteed.  In fact the higher the risk the higher the potential payoff and profits.

But it sure is more exciting and rewarding than cutting pennies off manufacturing, administration, sales and logistics costs.

It takes a different type of leadership, management and employees to make this happen.

What team do you want to work with, lead or manage?

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Start saving, buy now

27 04 2007

“Starting saving, buy now ”

That’s what the sign said.

Some marketers love this approach to sales.

Instilling a sense of urgency in the consumer, hinting that prices will never again be this low, and the added bonus that by spending money today you are actually saving money.

The marketer makes the assumption that the consumer wants to buy this product, but is waiting…for some reason.

Their hope is to push the decision-making process into the “buy now” arena, with the “threat” that prices may be rising soon.

It probably works with a consumer who is price oriented, and not too savvy in the world of advertising, marketing and promotion.

We all know that sale prices are part of a products life cycle.

Sometime, somewhere, some company or retailer will be offering the product at a discount.

Does anyone really believe that by buying now you will be saving money?

It seems to me that this advertising strategy insults the customers intelligence and common sense.

Perhaps I’m mistaken.

Maybe the businesses that use this advertising approach are really looking for customers that believe they are saving money by spending today.

Is there a consumer group out there that believes that “spending = savings” ?

Does this advertising “push” really help sales, company and brand image?

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Marketers beware

27 03 2007

This is embarrassing.

A Corporate public relations nightmare.

Incompetence at a very high degree.

I suppose it makes it more incredible and shocking that GlaxoSmithKline was caught in a lie about the ingredients of its product by two 14 year old girls in high school chemistry class.

Ribena caught out by schoolgirls 

How does a product get approved, manufactured, marketed and sold without someone asking if it really is what it is?

Where are the controls and communication between the production, the executive office and the marketing people?

What responsibility does marketing have to verify information and take responsibility for misleading the consumer?

This is fraud and unethical behaviour at an enormous level or incompetence at ridiculous proportions.

Adding insult to injury is the fine of USD $ 156,000.00 and an apology by GSK as the remedy.

Seems like a very small slap on the wrist for fraudulent advertising, incompetence and deceiving the public.

Perhaps that small risk and penalty is what drove them to take the decision to lie in the first place?

Related Links

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How we react to unethical actions and behaviour

21 03 2007

There are a number of reasons why individuals and organizations refuse to perform in an ethical manner or raise their voice against unethical behaviour.

6 Reasons why we don’t object to unethical actions or behaviour.

1. Ignored and Ostracized. We will be eliminated from the “group”. Showing opposition to an idea that was created by someone with power or the power of persuasion can result in being ignored and left out of future decision-making.

2. Fear. Not on board with the company philosophy? You might get fired. Fear of unfavorable personal consequences.

3. Demoted. Will lose power, prestige, and income if you speak up or oppose the idea or practice.

4. Insecurity. Perhaps we are not sure if the means justify the ends. Inability to clearly see the situation as unethical or wrong.

5. Reward. We see a payoff (money, power, prestige) that overwhelms our sense of ethics. Justifying wrong in order to receive personal gain.

6. Lazy or uncommitted. Unwilling or unable to challenge the group or idea.

5 Reasons why we should speak up and question unethical actions or behaviour.

1. Be true to yourself. Stand up for your own beliefs.

2. Be a leader. Others in the group might believe the same thing, but are timid or afraid of voicing objections. Create a dialogue and open a discussion of the issues.

3. New point of view. The group might not have thought of the consequences, or not see the situation as an ethics related decision. Open their eyes.

4. Protect the organization. Your intervention might save the organization from scandal, embarrassment, legal and financial problems.

5. Clarify. If you are unsure, voice your concerns and let the group present their case in order to clarify and resolve any doubts that you might have.

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Is your company noble, moral, virtuous or ethical

15 03 2007

The terms noble, virtuous, ethical or moral seem out of date.

In fact they seem to be words right out of a fairy tale.   Words and  concepts that have faded away with the modern world and it’s complexity.

Perhaps it’s not cool to be labeled as virtuous, moral or ethical.

Is it because we live in a complicated world that has us making more decisions about the “gray areas”?

We don’t read about organizations being ethical or noble.   In fact we hear about unethical companies and employees much more often.

Business magazines doesn’t write front page articles about virtuous executives and CEO’s (I hope this is because it’s not popular and not because there aren’t any).

Are there any reasons to promote and reinforce these values in your organization?

Are there good reasons to avoid discussion of them?

Perhaps the fact that unethical behaviour is reported, and considered scandalous, is a clear signal that it is outside of “normal” business conditions and draws attention.

Let’s begin with definitions, that should clear up some of the confusion.

Moral – Conforming to a standard of what is right and wrong, correct, trustworthy.  How could anyone want to work with others who don’t know right from wrong and behave?

Ethical – Principles of conduct governing an individual or group, a set of moral values, a guiding philosophy, decent, respectable.   OK, this one sounds like it should be part of the package too.

Noble – Moral eminence and freedom from anything mean, petty or dubious in conduct and character.  In simple terms doing the “right thing” all the time, excellence.  If it looks bad, don’t do it…pretty good advice and words to live by.

Virtuous – Implies moral excellence in character.   Not only knows good from bad, and adheres to it, but is exemplary in their behaviour and practice of their beliefs, honest, good, without reproach.  I can’t find any customer, shareholder or employee who wouldn’t want their company to be virtuous.

Which of the terms can your company live without in their employees?

Are any of these characteristics that should be found and promoted in your management and leadership?

Which of these concepts and behaviours are important to you, your customers and your organization now and in the future?

Do you have a written policy in place to promote, identify, and create noble employees and a virtuous organization?

Do you point out and recognize when a person or organization has done something noble, virtuous or ethical?

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Using positive reinforcement to win customer loyalty

22 02 2007

We respond positively to positive feedback, recognition, and reinforcement of our behaviour and activities at work or home.

We get angry or lose interest in an activity, goal or organization if we don’t receive this “pat on the head” or “cheer-leading” on a continual basis.

Our customers also need reinforcement and recognition in order to maintain their motivation and good feelings toward your company or products.

What are you doing to make sure they get it?

Does the customer feel like you are just “going through the motions”?

Does it feel real?

Are you really showing that you care?

What sets you apart from your competitors AFTER the sale?

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The easy way

9 10 2006

Despite all the attention on the power of marketing in order to create and maintain a successful product and business, there are still many organizations and people who don’t want to, or don’t know how to market their products.

They want others to buy their product because they are less expensive than the competition.

It’s the easiest way to sell, requires no planning, no marketing, no effort on the part of the salespeople or the organization. Quick short term results.

Everyone is in the market with the same goods, all screaming and shouting for the customers attention. The customer finds the seller by accident or luck, and proceeds to bargain and negotiate for the lowest price in the market. Very colorful.

It shows a lack of responsibility, lack of marketing, and lack of imagination on the part of the seller.

The owners say: “We need more profit, cut costs and sell more”.

The sales managers say: “We can sell more, but the product is a commodity, what can we do, cut the costs and we can corner the market”.

Production says: “We’ll cut costs, get cheaper raw materials and tweak the design”.

Buyers tell suppliers: “We can try your raw materials or products and see if the market accepts that price, but you have to give me a better price if you want me to buy more”.

Salespeople tell the sales manager: “I don’t know if I can meet that sales quota, it’s not up to me, it’s up to the market to decide”.

Salespeople tell the customer: “We’re cheaper than the competition, buy now”.

The competition is doing the same thing you are.

The customer faced with similar products and lack of information says: “Give me the one that costs less”.

Where was the marketer during all this?

What should they have been doing and saying to the organization and the customer?

If your product isn’t distinct, different or better than the competition. If you are not educating your customer about the advantages of your products and services. You will never have to the chance to market your products.

You will only be able to offer them for sale.

Related Links

Seth’s Blog: Cheaper

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