Commoditization, is it happening to you?

28 11 2007

“We are living in an era where there are too many retailers serving too few customers and where there is no longer any brand loyalty or retail loyalty” Kevin Burke, President/CEO. The American Apparel and Footwear Association.

From this comment by Mr. Burke I believe the apparel and footwear industries are in the midst of an important struggle, to move away from their current status of a commodity business.

The winners will be those with strong design, distinct brand, and smart developed distribution systems. The same can be said for almost any current industry.

Too many retailers and points of sale? I doubt it. What I interpret from this comment is that there is intense competition between retailers, and instead of seeking exclusivity or innovation to attract and maintain customers, they are using the oldest,simplest trick known….lowering product prices and with it, the quality of the shopping experience.

It is a classic example of commoditization.

Manufacturers are also to blame. The rush to sell their product to high volume buyers insures loss of control of the marketing and retail channels.

The rush to sell everywhere, to everyone, at the same time allows and promotes price competition and price wars between the various manufacturers and retailers.

Too few customers? The real problem is overproduction. Current manufacturing focuses on high volume production and this encourages the standardization of product. The desire to reduce fixed costs drives manufacturers to seek out cheap world labor, increase productivity through mechanization (which encourages product standardization) and the outcome is a mountain of finished products, created all over the world, that are indistinguishable from one another.

Commodities. Most apparel and footwear companies focus on low cost, high volume manufacturing, they sell to wholesalers or retailers that also focus on volume. So suddenly branded products can be found in department stores, boutiques, grocery stores, flea markets and the Internet. The product is everywhere, consumers have learned that one should just look for it where the price is lowest.

This also makes it easier to pirate and sell a product to a growing network of sales outlets focused on offering a brand name for less.

No brand or retail loyalty?
If there is no customer loyalty (read as no perceived advantage to shopping with you versus the competition), and loyalty is important for continued growth, profit and success, then it’s time for a serious reevaluation of how one is doing business.

How can one stand out from the crowd, do something different and unique, and create a sense of exclusivity and prestige for the consumer?

This is the future.

Related Links

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Get the mission statement off your website

24 11 2007

Do you read the corporate mission and vision statements on websites or in corporate promotional material?

I don’t.

In fact, I find them to be insincere, ambiguous and completely useless to the customer, and most of the time useless to the company itself.

So why do many corporate websites include them?

Does someone in the sales and marketing department believe that customers find this information important or believable?

Objectives, goals, mission and vision are important in an organization.  They define where we are going, and help in making decisions about how to get there.

You don’t need a mission or vision statement to be successful.You will need to make certain everyone in the company knows where they are going and are focused and motivated on getting there.

Customers will see the results.

You don’t have to tell them what you are trying to do.






Are you listening to what the customer needs?

9 09 2007

I have been involved in a series of meetings with business owners regarding problems in their companies. 

Declining sales and market share due to international competitors, inability to compete or a decline in the entire industry sector are some of the reasons mentioned.

Solutions that were discussed and debated including cutting costs of raw materials, increasing worker efficiency, lowering logistics costs, streamlining the administration and related costs, government intervention and protection, outsourcing and even forming alliances with the international competitors.

What struck me as incredibly odd was that not once were the customer’s needs mentioned.

Not once did anyone mention creating new ideas, products or services for the customer.

There was no discussion of investing in new technology because “things are difficult now”.

There was never a comparison made between the marketing and promotion, branding or image of the competitors versus the company’s marketing, promotion, branding and image.  Why not? 

Every comment or observation focused on lowering production and logistics costs to the customer, never on increasing the benefits to the customer.

All that mattered is “how can I sell at a lower price”.

That’s right.  The entire future of these companies, and in some cases entire industries are focused on how make their products for less.  How to beat the Chinese, Indonesia or Brazil or whatever developing country has access to cheaper raw materials or labor. 

Common sense tells us this is not a viable, long -term solution.

Each of these companies has stated in their publicity, website and in their mission statements that their focus is on the customer and on customer service.  Why aren’t the customer’s needs and future needs part of the search for solutions when sales are declining?

If the customer really truly cares only about price, your product is a commodity. 

If the customer only cares about price, they don’t care about your company’s service, advertising and promotion, attitude or participation in their business.

If you really think that the low price will guarantee the sale, cut out the customer or technical service.  Take away financing.  Take away delivery and logistics.  Forget environmental and worker protection.  Reduce your inventories.   Standardize your prices and order sizes.   Cut down on sales and promotion. 

Call me when your sales skyrocket and the money pours in. 

I suppose it’s normal when sales fall, to attack costs, and costs are a fundamental element in being competitive in certain goods and services.

It is not the only element.  It may not even be the most important one for your customer. 

It probably is the easiest area to change quickly, and requires no investment.  People like easy solutions that don’t require investment. 

The relationship with your customer, the ability to meet their needs with your product or service and allow them to make a profit is what makes business click.

How well do you know your customer? 

What problems are they facing?

Is your contribution to their product important, significant or fundamental in their success?

Do they see you as simply a supplier of a commodity or an integral part of their supply chain and future?

Have you explored how you can work with them to make them more competitive?

Once this has been accomplished, bring the results to the boardroom and start the discussion of how to aid declining sales and deteriorating margin.

Don’t stop with the easy solutions.

Look for the difficult solutions, the ones that require compromise and long-term commitment.

Look for solutions that require investment of resources; time, money, and ideas. 

These are the solutions that the competitor focused on cost is not interested in. 

These are the solutions that will provide confidence and mutual opportunities for growth.





Broken promises

28 06 2007

“The best way to keep one’s word is not to give it.”  Napoleon Bonaparte

It’s too easy to make a promise.

We promise the customer that the product will work, solve their problem, and maybe change their lives.

We promise our coworkers that our part of the work will be delivered on time.

We promise our business partners and suppliers that we they can count on us.

We promise to follow up after the initial sales call, that we will always be there with customer service.

We promise that our priority is the customer and the customers satisfaction.

We promise to hit the sales goals and meet the budget.

All our promises are all full of good intentions, it’s what people want to hear, it’s what we want to deliver.

But, can we guarantee that we will deliver?

Never take a solemn oath.  People think you mean it.  Norman Douglas

The best way to ruin your reputation and lower your ability to lead and manage others is to promise something and not deliver.

We make a promise because it gives others confidence, it seems to make negotiations easier and it reflects our hope that all will go as planned.

“All promise outruns performance.”  Ralph Waldo Emerson

A common error of new managers and leaders is the perceived need to make promises to their organization and team.

Don’t promise it.

Promises are very powerful compromises, but extremely fragile and difficult to achieve.  Take care when offering them to others.  

In the place of promises, offer firm plans, describe actions and possible outcome, dedicate the time and resources required.

Do more than you say you will.

Perform, don’t promise.

“It is an immutable law in business that words are words, explanations are explanations, promises are promises but only performance is reality.”  Harold Geneen





Oil and water

30 05 2007

Oil and water don’t mix.

That’s what I believed until today.  Oil and water do mix after all

In an organization there are departments that don’t mix well, or not at all.  Sales, finance and production departments are notorious for having problems or “not mixing”.

Each of these groups has a different way of thinking, they create very different processes and final products, it makes sense that they will not agree to, or understand what the other departments are doing.

Tension, misunderstandings, frustration and chaos can result if left unattended.

Sales and marketing is concerned with creating or identifying demand for the product and negotiating an agreement.  It’s about people and relationships, emotions, taking advantage of opportunities, being creative innovative and adaptable, exploring new ideas, making sure the customer is satisfied.  Uncertainty is a large part of every business day.

Finance focuses on numbers.  What did we do in the past, what are we doing now, what will we need in the future and how do we reduce or eliminate our risk.  Structured, predictable, logical, they label everything.  Their evaluation and decision making is based on guaranteed outcomes and not on uncertainty.

Production is concerned with efficiency and is also numbers driven.  Processes are studied, analyzed and standardized in order to maximize control and eliminate  errors.  They prefer set plans and actively resist rapid or constant deviations and modifications.  Believers in contingency plans and backups, logical, not fond of uncertainty.

The goal is to acknowledge that every group is very different, with different points of view, and that these differences are essential to the success of any organization.

The entire system (organization) benefits from the interaction, questioning, and controls required by each department.

If there is total agreement, all the time, something is wrong.

Leadership’s role is to provoke, question, listen, analyze and push this chaos toward a goal.

Successful leaders know how to make oil and water mix,  and make it happen on a regular basis.

Related Links 

New Scientist – Oil and water do mix after all

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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.

Related Links

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Don’t find a solution, find a way to make it better

12 03 2007

We make a large error in our business and personal lives if we believe that every problem or situation can be solved immediately or in the short term through our decisions and application of resources.

Theoretically it’s possible, but our focus on solution instead of optimizing and making changes to make it better can blindfold us toward evolutionary processes that in the long term provide better, stronger and long lasting solutions.

I’m suggesting that every situation should be initially evaluated based on two basic criteria; can it be solved now, or can it be improved now.

The situations that can be solved now or in the short term, should be. The organization should dedicate the time and resources toward the solution.

An example would be a delivery service that has 3 trucks and cannot cover the current delivery area on-time due to an increase in customers and package volume. A possible swift solution would be the purchase of another vehicle and hiring of a new driver.

A situation that cannot be solved now or ever should be approached by identifying areas where improvement should be made. The time and resources of the company should be focused upon the improvement.

An example would be government’s attempt to eliminate poverty or disease from a population. A perfect solution is not possible or practical, but by focusing on specific areas one can find great opportunities for success or enormous impact (vaccinations for children against polio).

When we look at every situation as a problem that needs to be solved right now we may be missing the best solutions and strategies required to resolve the situation over the long term. Ask yourself:

  • Can we solve the problem quickly and efficiently with simply modification of variables or a shift in technology? If the answer is yes, then set the process and resources in motion.
  • What if the problem is not able to be solved quickly or has no practical or economically viable solution? This is where the approach of resolving and modifying parts of the problem comes into play.

This evolutionary approach to problem solving is not often requested or expected in business (the quick fix is always applauded and sought after), but often the best long term strategy is optimization and gradual modification.

This evolutionary problem solving process will provide new opportunities for change and solutions to be developed in the future.The identification of areas, processes or resources that are the bottlenecks in your organization become areas of opportunity.

Modifying and improving these bottlenecks will automatically create new bottlenecks, in new areas. The focus on identifying and solving these “new” situations leads to a process of continual improvement and a better, stronger organization.

This is one of the fundamental ideas behind the Theory of Constraints (TOC).

Common sense tells us that in a complex world not all solutions are simple, quick or painless. The “quick fix” is a great idea, but not often found in everyday life.

Observation of science, technology, philosophy and business ideas and strategies show us that change occurs through the rare revolution (paradigm shifts and new discoveries) and through the more common evolution (gradual modifications leading to continual change.

What can be changed, fixed or modified today to make the organization, process, product or service incrementally better?

Related Links

Why don’t they?

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How to systematically analyze any situation for better decision making

AGI Institute – Theory of Constraints

Evolution (Disambiguation)





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?

Related Links

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What defines an exceptional leader





Why do we fail

22 12 2006

No one likes to fail.

We can feel foolish, outmaneuvered, incompetent, insecure, unlucky, silly, angry, overwhelmed, frustrated and in some cases afraid to try again. after suffering a defeat.

Failure is an integral part of the learning process.

Failure is required in order to become successful.

Rare is the successful individual, product or organization that has not met adversity, failure, defeat and loss.

One of the keys to success is the ability to accept failure, learn from the experience and try again.

The fear of failure is so great in some organizations that it freezes innovation, thwarts change and stifles growth.

Organizations try to reduce or limit failure by passing on historically successful methods and accumulated knowledge to new members.

Many times this information is not useful and out of date because the elements, players and dynamics of today’s challenges are quite different from those of the past.

Use the following list to analyze your current projects (and possibly prevent or limit failure), or use the list after a setback or defeat to identify where you can improve.

Reasons for business failure can be broken into 4 main groups:

Planning

  • No plan
  • Incomplete plan
  • Wrong calculations
  • Poor or incomplete interpretation of data and research
  • Failure to take into account all factors
  • Lack of experience
  • Failure to evaluate competitor reactions correctly
  • Failure to anticipate consumer response
  • Significant difference between planned and actual costs
  • Poor cash flow calculations
  • Unrealistic goals and expected outcomes
  • Underestimate risks

Information

  • Didn’t collect all the pertinent information for planning
  • Product or service was not wanted or needed by customer
  • Lack of knowledge of market
  • Lack of knowledge of customers
  • Lack of experience in the industry
  • Lack of experience in manufacturing
  • Lack of experience in sales and marketing
  • Lack of experience in administration

Operations and Follow-through

  • Lazy, didn’t do the work required
  • Undisciplined
  • Unorganized
  • No control of suppliers
  • Did not stop in time and take corrective actions
  • Did not recognize warning signs
  • Ignored warning signs
  • Did not seek professional assistance
  • Lack of attention to logistics details
  • Failure to focus on customers needs, desires and wants
  • Poorly trained personnel
  • Lack of initial capital
  • Not enough capital to maintain operations for first years

Factors outside of our control

  • Important changes in technology
  • Environmental factors
  • International, Federal, State or local government laws, regulations and legislation
  • Aggressive competitor(s)
  • Act of God
  • Change in fashion and trends
  • Theft and fraud

Related Links

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How to determine who is your best customer

21 12 2006

How do you determine who is your best customer or best employee?

The usual method is by analyzing revenue or sales.  The customer who buys the most, or generates the most profit is the best customer.

We almost never pin the “best customer” award on the client who pushes us, complains and forces us to change, unless they meet the sales volume or profit test.  It is exactly the “uncomfortable” customer who may be providing the new ideas required in order for your organization to survive in the future.

The same criteria applies to your employees and staff.  Who is the “best employee”?  Is it the conformist, the one who never makes any waves, never creates conflict or challenges your ideas?   The disruptor, the individual who questions and challenges the status quo,  might be your organizations best friend.

There are three types of organizations; one that creates the future, one that adapts to changes in the future, and one that fails to survive.

Your “best” customers and employees should be helping you prepare for tomorrow, not just sustaining your operations today.

Related Links

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What does it mean to be a World Class business

5 12 2006

The CFE in Mexico (Federal Electricity Commission) has the slogan “Somos un empresa clase mundial” (We are a world class business) emblazoned on their vehicles.

What does “world class” mean in today’s global economy?

Why promote yourself with vague phrases and empty words?

Why participate in the game “I’ll tell you how great I am, and you pretend to believe me”?

“World class”, “leader”, “the world’s greatest”, “the best”, are examples of adjectives that no longer have marketing impact.

Self promotion and hype might even work negatively on the consumer.

Don’t tell people how great you are.

Tell them and teach them what you or your product can do.

Show them, surprise them and amaze them with your product or service.

Don’t pin the medals on yourself. Let your customers do it.

Related Links

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The “Lightning and Thunder” sales and marketing strategy

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Motivation – heroic moments

26 10 2006

Determine which actions during the day, are your “heroic moments“.

Heroic moments might be viewed as simple required actions, obligations by others, but deep inside us, we understand that these actions require us to make a yes or no decision. We have to commit ourselves.

Heroic moments consist of an internal decision to do something for the greater good, to contribute to an idea or organization, to participate in a selfless act. The decision to start, follow-through and finish a project or activity that will benefit others.

It’s a moment when we say to ourselves “I will do this, no matter what”.

Heroic moments occur when we decide and commit to actions that that we know are required, expected or desired by others.

The most important heroic moments happens daily, when we make the decision to leave the comfort of our warm bed, wake our sleeping body and mind, and start the day.

A heroic moment occurs when you make the decision to face the angry customer, and resolve the problem.

A heroic moment occurs when you dig into the pile of paperwork on your desk.

A heroic moment occurs when we pick up the phone and start “cold- calling”.

A heroic moment occurs when we’re having a miserable day and keep smiling and don’t take it out on others.

A heroic moment occurs when we decide to motivate or lead others through inspiration and not fear.

A heroic moment occurs when we start an exercise program.

A heroic moment occurs when we decide not to involve ourselves in an personal argument or conflict.

A heroic moment occurs when we DO involve ourselves in an argument or conflict in order to solve a organization or family problem.

As employees, leaders, managers, parents, children, siblings, co-workers, or even as strangers, we are confronted with many opportunities to make “heroic” decisions.

We don’t do these things because we’ll be recognized. We don’t do them because someone will build a statue. They may not be monumental actions. It’s not the type of heroism that makes it on to the front page of the newspaper.

The only person who might know about it is you.

Finding and identifying the heroic moments in our lives is a simple way to motivate ourselves and feel good about our decisions and how we are interacting with the world around us.

(Thanks to Jesus Sotomayor for the phrase and idea)

Related Links

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Lessons in international business – negotiations

17 10 2006

Observations on how to create trust, effective meetings and excellent negotiations with overseas customers, suppliers and partners.

  • Whenever you are involved in international negotiations or global meetings keep in mind that you might be working with the same person for the next 10 – 20 years.
  • Negotiations should be open and straightforward.  Hidden agendas will eventually be discovered and make the next meeting very difficult.
  • Negotiations should involve creating value for both parties.
  • Meetings are important moments where trust is being built and confirmed.  Be honest and clear about your desires.
  • Never agree to something you cannot deliver or perform.
  • Listen, understand and evaluate what your partner is requesting.   What are they saying, and what does it mean.
  • Be certain of what you are negotiating and agreeing to.  If not 100% sure, stop and request clarification.
  • Prepare for the meeting several weeks before it happens.  Refresh and add information weekly.  When you reach the meeting, you will be in control of the information and feel comfortable during the talks.
  • At the end of the meeting, write down the most important points or agreements, with names and dates, and have it signed by those present.  This little tip will save lots of time and trouble for everyone involved.
  • Any agreement must have 100% follow-through.  If for any reason problems arise in the follow-through, immediately contact and communicate the situation to your partner.

Related Links

How to negotiate with Mexican business people

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Great International Business Trip Results

16 10 2006

In any international relationship communication and understanding are critical for success.

Problems created by; language, stereotypes, misinformation, lack of information, and cultural misunderstandings combine with normal business problems to create a complicated scenario for anyone involved in international relationships and global business.

Prepare your international meetings and business presentations using the following questions as a guide to organize your ideas and focus on actions that will produce positive results for everyone involved.

6 Questions – Create Great International Business Trip Results

  1. What does this organization know about me, my company and my country?
  2. What do they think they know about me?
  3. What can I tell them that they do not know?
  4. What do I know about my international partner, culture and country?
  5. What do I think I know about this business, culture and country?
  6. What can they tell me that I do not know?

1. What does this organization know about me and my company. When you walk in the room an opinion has already been formed about you, your organization, and your ability to perform in the future. These ideas are based upon facts, information and past experience.

  • What has been the history of our relationship in their country?
  • Who has been involved in our mutual business, and why?
  • What promises have been made and kept by both?
  • What promises have been made and not delivered upon?
  • What have the major problems and success been in the past?
  • Press and media, our organizations promotional material.

2. What do they think they know about me. Clarifying the unknowns or presumed realities in a relationship is crucial to success. These ideas may be very damaging and limit your ability to trust one another. What stereotypical behaviour can you avoid or prevent? What can you clarify or refute through information or actions?

  • Behaviour and reacts based upon past experience with your organization.
  • Rumour and innuendo, press and media reports.
  • Negotiation styles.
  • Business objectives.
  • Behaviour, goals and methods of doing business based upon country and cultural stereotypes.

3. What can I tell them that they do not know. Today’s business world requires trust, information and solutions. Reinforcing your need to work with your international partner, providing important information or solutions, and clarifying misunderstandings can only help the relationship.

  • Clarify or destroy cultural stereotypes.
  • Clarify business objectives and why they are important in order to reach these objectives.
  • Provide solutions and alternatives to existing situations and challenges.
  • Provide information of value for their business and strategy.
  • Clearly identify current or potential business problems.
  • Predict and have answers ready for their questions.

4. What do I know about my International partner, culture and country? What do I know is true and not innuendo or interpretation? The numbers, facts, information, agreements and past performance history of the business. Information about the country and the business culture.

5. What do I think I know about this business, culture and country? What preconceived ideas and stereotypes are you working with? What are you assuming and what has been proven?

6. What can they tell me that I do not know? What questions do you need to ask in order to verify information or create plans. What pieces of your information puzzle are missing? This is the time to get your questions answered, what are they?

Related Links

Cultural misunderstanding it can happen to you

Stereotypes and global business

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16 Essential questions – the international business traveller’s quiz

Lessons in international business





What can we learn from the piracy business model

10 10 2006

Here is a interesting way to view, prepare for and compete against businesses copying and pirating your content or products.

Piracy is a business model. Anne Sweeney, co-chair of Disney Media Networks and president of Disney-ABC Television Group, announced during a keynote address at MIPCOM. While her focus was on the pirating of media content, the same message applies for manufactured goods.

“It exists to serve a need in the market….. Pirates compete the same way we do – through quality, price and availability. We don’t like the model but we realize it’s competitive enough to make it a major competitor going forward.

What’s so amazing about this?

Taking the piracy is a business model approach allows us to analyze the business model and how it is acting or reacting to the economic fundamentals in the market.

Instead of locking up our company secrets and seeking punishments for the pirates, we can analyze why and where our “competition” is taking advantage of us in order to strengthen and modify our business model.

None of this changes the actual situation. But it might change business strategies and planning when you realize they are competitors and they are here to stay.

What are the advantages of being a pirate, and the disadvantages?

Why are there opportunities for them? What should I be doing that I’m not?

How can I change my organization to take back the market from the pirates?

Once weaknesses in the piracy business model are identified they can be exploited. When strengths are discovered, they can be integrated into our own business model.

The fight against piracy should begin with a focused analysis of the market environment, existing business models and new strategies on how to adapt to the changing market conditions and exploit them to your advantage.

We can stop focusing on the individual “pirates” and their control or capture, and move toward competing intelligently against them.

Related Links

The easy way

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Netribution – Disney Co-Chair recognizes ‘piracy is a business model’

Boing Boing – Disney exec: Piracy is just a business model

@MIPCOM Piracy is a business model


 





Lessons in international business

10 10 2006

The most difficult part of doing business overseas will occur when you have to explain your country’s politics and culture, and provide answers on why you do things the way you do.

Related Links

Cultural misunderstanding it can happen to you

Stereotypes and global business

International business traveller, ambassador, explorer, map-maker





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

The power of something extra

Sales and marketing terrorism





The power of something extra

5 10 2006

Here is a simple but powerful rule – always give people more that what they expect to get.” – Nelson Boswell

What defines an exceptional leader, a great manager, a super business, or remarkable experience? Something extra.

There are two words (one French and the other Spanish) that convey and represent the concept of something extra, lagniappe and pilon.

Lagniappe (hear it) is the word commonly used in Southern Louisiana and Mississippi. It’s defined by the American Heritage Dictionary as an extra or unexpected gift or benefit.

Pilon is the Spanish word used in the southern US and Mexico to describe a gratuity given by tradesmen to customers settling their accounts, it’s something extra, and not expected.

Incorporating something extra in our actions, results and as a business philosophy can be incredibly powerful.

Something extra:

  • forces creativity and innovation.
  • demands clear understanding what is expected of us by others.
  • focuses our attention of adding value, and not on cutting costs.
  • is positive.
  • is rewarded with good will and positive reactions.
  • will lead to continual improvement.
  • is fundamental to continued success.

Something extra is all about the little things and details.

Something extra is not just something “free”, it must arrive without anticipation, unexpectedly in order for it to be special and make an impact.

Something extra allows you to surprise the customer.

Something extra will make think about your results and expectations. It will make the difference between simple compliance and outstanding results.

Something extra will make you and your results different from all the others.

Embracing something extra and applying it on a daily basis, will make you great.

Giving something extra is not a difficult task. It’s all about applying small acts of innovation and creativity to your results, especially for routine and day-to-day tasks.

The power of something extra can change your life, your products, your processes and how others perceive you.

“If you want to be creative in your company, your career, your life, all it takes is one easy step… the extra one. When you encounter a familiar plan, you just ask one question: What ELSE could we do?” Dale Dauten

Related Links

Motivation – Heroic moments

What defines an exceptional leader





Customer driven or customer ignorant

5 10 2006

“When people talk about successful retailers and those that are not so successful, the customer determines at the end of the day who is successful and for what reason.” – Gerry Harvey

Talking about it or Doing it.

  • There are organizations that talk about serving the customer.
  • There are organizations that do what customers want.

Enemy or Friend

  • There are organizations that perceive and react to the customer as an adversary.
  • There are organizations that listen to, seek out and embrace the customer and the customers ideas.

Products or Solutions

  • There are organizations that create products and services because they can, and hope that the customer will find them.
  • There are organizations that innovate and create better products and solutions for the customer.

Now take the word “organizations” and replace it with “governments”.

“This may seem simple, but you need to give customers what they want, not what you think they want. And, if you do this, people will keep coming back.” – John Ilhan

Related Links

There are no new management and leadership ideas

 





How to motivate yourself on Monday

2 10 2006

Here we go again, Monday morning, back to work. Need some ideas on how to get pumped up for the week ahead?

1. The survivor approach. Challenge yourself to attack the most difficult work problems first thing today. Admit that it has to be done and might be the most uncomfortable or unpleasant activity you will encounter during the week. Once this is out of the way you’ll be surprised how much easier the rest of the week will be.

2. Send out positive energy. Be cheerful, upbeat and responsive to customers and coworkers. Say hello to everyone, acknowledge their presence. If you encounter grumpy, sad or depressed individuals smile at them and move on. Leave everyone you meet with the impression that you’re happy, full of enthusiasm and motivated today. Sound completely out of character for you? Good.

3. Monday is list execution day. List makers should prepare their weekly to-do lists on Friday afternoon or Sunday evening. When you walk into the office on Monday the plan is waiting for you to dig in and execute it.

4. You are working for you. Remember that you are working in order to achieve your personal goals. The work is part of that process. You are not working for XYZ corporation, you truly are working for yourself. It’s your decision to stay or to leave the company, your future is in your hands. Try that attitude on and see what happens.

5. Make someone proud of you. Everyone has a person or persons in their lives that they love and respect. Who are these people in your life? What could you do today at work to make them proud of you? Do it.

6. Act like an invincible leader. Feeling miserable and trying to spread that misery, gloom, doom and depression to others is a pretty pathetic way to live. Do you like to be around people with this attitude? Why would others want to be around you if you are a walking “cloud of misery and darkness”? You are a victim if you agree to be one.

7. Give yourself prizes. Set some work goals and create rewards for their completion that can be enjoyed on the weekend.

8. Motivation through memories. On the way to work think about the times in your life when you were the most enthusiastic, excited, motivated and happy. Remember the way you felt, identify why you felt so good, relive those experiences.

9. Go to work with a specific mission and deadlines. Make specific commitments for goal completion to others.

10. Decide to take a vacation. Burned out, stressed out, unable to focus, unable to get excited? Take time off, disconnect from work (that means no email, no telephone calls). Recharge your batteries. Figure out when you are going, for how long, with who and where.

11. Let cosmic forces and your subconscious decide. Sit down in a quiet spot, turn off the cellular phone, lock the door and try to clear your mind. In a matter of minutes you will begin to be bombarded with ideas or things you should be doing, and their priorities. Open your eyes, and get started.

12.  Music.  You know the tunes that start your feet tapping or set your soul soaring.  Record them, put them in your I-pod, burn a disk for the car.

13.  Change.  Setting a routine is quite normal, and comforting, but not motivating.  Change something.  Maybe it’s breakfast, the way to work, your clothes…who knows.  Fiddle around with your patterns and routines.

14.  Altruism.  Do something for someone else, without seeking anything in return.  Random acts of kindness.

R elated Links

Showtime – how do you want to live your life

Motivation, what gets you out of bed

10 things you should do on a Friday afternoon