The Farm Business Survey included an animal health and welfare module asking some general questions about animal health planning. It also included more detailed questions on livestock type, expenditure and disease prevention and veterinary expenses.
The analysis carried out on the data collected showed that 73% of farms had a formal written plan for at least one of the livestock species they kept. The principal reason for the health plan was for marketing and farm assurance schemes.
Beef farms with health plans had mortality rates 1.8% lower than farms with no plans and enterprise output (EO) was £10/head higher. They spent £2/head less on vet & med expenses and expenditure on routine vet costs on farms with no plans was double that of farms with plans. A total of 54% of farms with plans were in the low mortality group. Calf mortality was highest in the group with no formal health plans.
Vet & med expenditure on dairy farms did not vary much with economic performance on herd size but the higher performing farms spent more on routine vet services and had the lowest overall mortality rate. The high performance farms were also those with the largest average herd size though they did also have the highest incidence rate for mastitis. The dairy farms with the higher mortality rates spent less on routine vet services and more on non-routine services than farms with lower mortality rates.
Mortality rates on sheep farms without health plans were highest at 7.1% on average. Lamb and ewe mortality was lower overall for farms with formal written plans or instructions and the average EO was £7 higher per breeding ewe than for farms without a plan. Farms with higher mortality rates generally spent less on vet & med than those with lower mortality rates.
Mortality rates on pig farms of all types was 11%. Where the sample was of breeding herds selling weaned or fat pigs the mortality rate went up to 15% and where the holding type was fattening, rearing or other the rate went down to 5%. It was not possible to produce analysis by plan type due to a shortage of the relevant data.
Vets are the main source of information for animal health matters for farmers. Less than a sixth of farmers had specific animal health insurance. The most likely to have insurance were dairy farmers followed by beef, pigs and sheep.
Showing posts with label marketing. Show all posts
Showing posts with label marketing. Show all posts
Friday, 23 July 2010
Monday, 26 April 2010
Marketers More Optimistic
The latest Bellwether Report from the IPA says that marketing budgets have been revised upwards for the first time in two and a half years. Firms are confident about the future and expect the recovery to continue. The main media budgets are up for the first time since Q3 2007 and Internet budgets were adjusted for the third quarter in a row but the biggest since since Q1 2008. Sales promotion and direct marketing budgets were unchanged. Below the line marketing budgets such as PR and events was the only sector to revise spend downwards.
Tuesday, 2 March 2010
Farm Business Management Practices 2007-8
More results from the Farm Business Practices survey of 2007-08 have been published by Defra. The main highlights are given on the first page. They show that the more educated farmers are more likely to perform better. A lot of farmers have no qualifications and do not practice basic business management skills. LFA grazing livestock farmers are less likely to have had any further/higher education. Arable farmers are more likely to have had a further/higher education and along with dairy farmers are more likely to consider improvements. Skills used by the top performers include risk management, IT, business planning, marketing and management accounting. Of these skills, 72% of high performers are likely to have at least 4 key business skills compared to 40% of low performers.
The measures of economic performance for the farms is the ratio between economic output and inputs and are divided into low, medium and high performance percentiles. The low performers make up the bottom 25%, medium the middle 50% and high the top 25%.
The results show that 60% of farmers have a further or higher educational qualification of some kind. Fewer, about 20%, have had business management training. Farmers with further or higher education or business management training are more likely to be top performers. At 29% it is more than in the 25% high performance percentile. More than 50% of LFA grazing livestock farmers have no qualifications at all. Nearly 50% of dairy farmers have a diploma/certificate in agriculture. Cereals farmers are more likely to have degree in agriculture and/or a business management qualification. There were a lot of farmers who had considered education and training but decided against it. The main reason given was than they were not sure of it's benefits to the business.
As far as skills and knowledge are concerned, farmers with skills and knowledge of management accounting are more likely to be high performers. Farmers not applying management accounting knowledge and skills (49%) are more likely to be low performers. Some farmers use more than one skill. The main management accounting skill used is reviewing the profit and loss account. Cereal farms are more likely to use all skills (except benchmarking) included in the survey. LFA grazing livestock farmers are least likely to use any management accounting skills.
Farmers using marketing skills are more likely to be high performers (32%). It is the same with IT (28%). Cereal farmers are most likely to have computing equipment. The least likely are the LFA grazing livestock farmers with up to 25% having no business computer. Some have computer equipment but do not use it for business. Of those who do not have a computer or do not use it for business, 45% are low performers and 20% are high performers. Broadband is widespread particular among cereal farmers and they are more likely to have computer literate business users.
Most farms don't acknowledge any knowledge or skills gap. Farms that do recognize a skills or knowledge gap are more likely to be high performers. The highest proportion were the LFA grazing livestock farmers (>70%) the lowest the cereal farmers (>50%). A risk management strategy was used by 70% of farms. A range of crops or enterprises was the most common. The farms with a risk management strategy were more likely to be high performers.
The uptake of technical advice seems to be an important factor in running farms with 98% of high performers and 93% of low performers saying they take technical advice. Business skills seem to give a certain edge. Diversification seems to require and provide more skills.
Formal or informal business plans were made by farms in all performance groups. The most common method used was to measure the farm's performance by the annual profit and loss account. The results showed that those that do not plan ahead are more likely to be low performers.
The survey also gives profiles of high and low performers who carry out at least one business management practice skill. The most common business management practice skills used by the high performance percentile include management accounting, IT, business planning and risk management. Of the high performers, 72% are using 4 key business management practice skills whereas only 40% of low performers are carrying them out. Of the high performers only 1% are using no skills whereas for low performers the figure is 11%. The high business performers have an average of £574/hectare farm business income and the low performers -£78/hectare.
The distribution of farms beween high and low performance showed that 50% of cereal farms were high performers and 19% of general croppers. Only 6% of cereal farms were low performers and 5% of general croppers. The low performers included lowland grazing livestock farms with 37% and LFA grazing livestock with 20%.
Earlier results published last March show that 24% of low performers did not identify any of the management accounting practices compared with 9% of medium and 8% of high performers. Most farmers with further or higher educational qualifications also had a diploma/certificate in an agricultural or related subject. The number of farmers with a diploma/certificate in agriculture have an inverse relationship with age group.
The survey was based on a sample of around 1,900 farm businesses from all regions and types of farming. The sample for management practices was reduced to 1,450 farm businesses but it remains a representative sample.
The measures of economic performance for the farms is the ratio between economic output and inputs and are divided into low, medium and high performance percentiles. The low performers make up the bottom 25%, medium the middle 50% and high the top 25%.
The results show that 60% of farmers have a further or higher educational qualification of some kind. Fewer, about 20%, have had business management training. Farmers with further or higher education or business management training are more likely to be top performers. At 29% it is more than in the 25% high performance percentile. More than 50% of LFA grazing livestock farmers have no qualifications at all. Nearly 50% of dairy farmers have a diploma/certificate in agriculture. Cereals farmers are more likely to have degree in agriculture and/or a business management qualification. There were a lot of farmers who had considered education and training but decided against it. The main reason given was than they were not sure of it's benefits to the business.
As far as skills and knowledge are concerned, farmers with skills and knowledge of management accounting are more likely to be high performers. Farmers not applying management accounting knowledge and skills (49%) are more likely to be low performers. Some farmers use more than one skill. The main management accounting skill used is reviewing the profit and loss account. Cereal farms are more likely to use all skills (except benchmarking) included in the survey. LFA grazing livestock farmers are least likely to use any management accounting skills.
Farmers using marketing skills are more likely to be high performers (32%). It is the same with IT (28%). Cereal farmers are most likely to have computing equipment. The least likely are the LFA grazing livestock farmers with up to 25% having no business computer. Some have computer equipment but do not use it for business. Of those who do not have a computer or do not use it for business, 45% are low performers and 20% are high performers. Broadband is widespread particular among cereal farmers and they are more likely to have computer literate business users.
Most farms don't acknowledge any knowledge or skills gap. Farms that do recognize a skills or knowledge gap are more likely to be high performers. The highest proportion were the LFA grazing livestock farmers (>70%) the lowest the cereal farmers (>50%). A risk management strategy was used by 70% of farms. A range of crops or enterprises was the most common. The farms with a risk management strategy were more likely to be high performers.
The uptake of technical advice seems to be an important factor in running farms with 98% of high performers and 93% of low performers saying they take technical advice. Business skills seem to give a certain edge. Diversification seems to require and provide more skills.
Formal or informal business plans were made by farms in all performance groups. The most common method used was to measure the farm's performance by the annual profit and loss account. The results showed that those that do not plan ahead are more likely to be low performers.
The survey also gives profiles of high and low performers who carry out at least one business management practice skill. The most common business management practice skills used by the high performance percentile include management accounting, IT, business planning and risk management. Of the high performers, 72% are using 4 key business management practice skills whereas only 40% of low performers are carrying them out. Of the high performers only 1% are using no skills whereas for low performers the figure is 11%. The high business performers have an average of £574/hectare farm business income and the low performers -£78/hectare.
The distribution of farms beween high and low performance showed that 50% of cereal farms were high performers and 19% of general croppers. Only 6% of cereal farms were low performers and 5% of general croppers. The low performers included lowland grazing livestock farms with 37% and LFA grazing livestock with 20%.
Earlier results published last March show that 24% of low performers did not identify any of the management accounting practices compared with 9% of medium and 8% of high performers. Most farmers with further or higher educational qualifications also had a diploma/certificate in an agricultural or related subject. The number of farmers with a diploma/certificate in agriculture have an inverse relationship with age group.
The survey was based on a sample of around 1,900 farm businesses from all regions and types of farming. The sample for management practices was reduced to 1,450 farm businesses but it remains a representative sample.
Wednesday, 27 May 2009
ONS And CBI See Fall In Business Services Output
Services output seasonally adjusted chained volume of gross value added index fell by 1.2% quarter-on-quarter to 113.3 and follows a fall of 1.3% on the previous three months according to Office for National Statistics latest Index of Services figures. The most significant fall in both quarter-on-quarter and in month-on-month figures was in business services and finance. Distribution fell 0.2% in the quarter to March compared to the quarter to December. It is the 9th consecutive monthly fall, driven mainly by wholesale, motor trades also decreased and retail increased. Hotels and restaurants fell by 5.1% over same period. There were also significant decreases in bars and restaurants. Transport, storage and communications fell by 2.3%. Business services and finance fell 2.2% to 121.7 in the quarter to March on the quarter to December and fell 0.4% between February and March. Government services increased by 0.7% in the quarter to March with the most significant increases in health and social work.
The Confederation of British Industry released its quarterly Services Sector Survey results today. It shows the service sector is still is deep recession. There are some signs of confidence returning. Consumer services fell at their fastest rate since November 2001. The rise in prices made the fall in business values look less marked. Business and professional services values fell faster than volumes due to record deflation in prices. Rates of decline are expected to slow down in both consumer services and business and professional services over the next three months. Employment is continuing to fall in both sectors. Profitability also fell but at a slower rate than the record falls of the previous quarter. Business and professional services show a similar pattern. A steep downward trend continues in telecomms and computing and transport of goods and post. Marketing services also show a continued downward trend in business values and volumes but much less marked. Confidence and profitability have both fallen. There are some signs that the decline is begining to slow.
The Confederation of British Industry released its quarterly Services Sector Survey results today. It shows the service sector is still is deep recession. There are some signs of confidence returning. Consumer services fell at their fastest rate since November 2001. The rise in prices made the fall in business values look less marked. Business and professional services values fell faster than volumes due to record deflation in prices. Rates of decline are expected to slow down in both consumer services and business and professional services over the next three months. Employment is continuing to fall in both sectors. Profitability also fell but at a slower rate than the record falls of the previous quarter. Business and professional services show a similar pattern. A steep downward trend continues in telecomms and computing and transport of goods and post. Marketing services also show a continued downward trend in business values and volumes but much less marked. Confidence and profitability have both fallen. There are some signs that the decline is begining to slow.
Thursday, 12 February 2009
Brand Names
Brand names add to brand equity that quality that encompasses loyalty, name awareness, image, perceived quality and associations. It can be difficult to measure the equity of a brand name. Name selection is a crucial part of the marketing process as a good name can add significantly to a product's success. Many big companies have developed formal name selection processes. Once decided on, a brand name or a trade name should be protected. Trade marks, patents and intellectual property rights protection is advisable.
Some brand names and products become household names and are referred to as if the brand name was the name of the product. The biro for a ball-point pen, the hoover for a vacuum cleaner, tupperware, polaroid and wellingtons are good examples of substituting a brand or trade name for a product. Lino, yo-yo, trampoline, escalator, shredded wheat and nylon are others. They are now names that any seller can use (Kotler, 1999).
Due to the local nature of advertising it is best to carry out research into names, products, interpretations, cultural attitudes and so on. It is especially true in international markets. It is often advisable to get professionals to do it for you. The best brand names work in different languages. Numerous products have run into language problems in translation, French breakfast cereal 'Plopsies' and Slovakian pasta 'Kuk and Fuk' are two examples. The 'Nova', from GM, was not a good name for a car in Spain because 'no va' means 'does not go'. The French soft drink called 'Scchhit' wouldn't sell well in many English speaking countries. Misinterpretations of campaigns and products are possible because of differences in cultural attitudes.
Marketing campaigns must be adapted to different cultures and languages when necessary. They contain different thinking patterns and display different buying behaviour. The message should be tailored to the audience. The product should also be socially and culturally appropriate. These can be very difficult tasks (Jeannet and Hennessey, 1998).
Some brand names and products become household names and are referred to as if the brand name was the name of the product. The biro for a ball-point pen, the hoover for a vacuum cleaner, tupperware, polaroid and wellingtons are good examples of substituting a brand or trade name for a product. Lino, yo-yo, trampoline, escalator, shredded wheat and nylon are others. They are now names that any seller can use (Kotler, 1999).
Due to the local nature of advertising it is best to carry out research into names, products, interpretations, cultural attitudes and so on. It is especially true in international markets. It is often advisable to get professionals to do it for you. The best brand names work in different languages. Numerous products have run into language problems in translation, French breakfast cereal 'Plopsies' and Slovakian pasta 'Kuk and Fuk' are two examples. The 'Nova', from GM, was not a good name for a car in Spain because 'no va' means 'does not go'. The French soft drink called 'Scchhit' wouldn't sell well in many English speaking countries. Misinterpretations of campaigns and products are possible because of differences in cultural attitudes.
Marketing campaigns must be adapted to different cultures and languages when necessary. They contain different thinking patterns and display different buying behaviour. The message should be tailored to the audience. The product should also be socially and culturally appropriate. These can be very difficult tasks (Jeannet and Hennessey, 1998).
Monday, 9 February 2009
Risky Business
The creative process may appear to be no more than a Eureka moment or a flash of inspiration but actually can take a long time and for very good reasons. In the world of plant breeding for example the process from idea to commercialisation can take many years of work and collaboration for all involved. There are many things to consider and get right before commercialisation can go ahead. Corporate social responsibility and business ethics are both very important areas than must be satisfied before new products can go on commercial sale.
The new product idea generation process may simply be an extension of an existing product line. The screening of ideas or varieties 1,2,3...plants must first undergo criteria rating setting out the specific features of each potential new product. New product ideas must be protected whever possible so that there is no plagiarism or important developments or sensitive information falling into the wrong hands. Mendel's plant breeding discoveries were developed by Hugo de Vries but in a totally different context and with different intentions and they cannot be described as Mendelian or of the school of Mendel.
Concept testing and positioning regarding the potential market will give data concerning whether the customer definitely would buy or definitely would not buy the potential product. Significant investment may have to be made to make the actual physical product from the ideas. Prototypes and tests for efficiency, quality and consistency will need to be carried out using laboratory tests, taste trials and so on for food products which could possibly lead to further disagreements. The length of the development phase can be very unpredictable, possibly many years, and involve many areas of expertise. It is the case in areas of ethical debate where arguments and feelings are very strong from a number of different quarters. Very sensitive or controversial products such as genetically modified foods make take years to develop and still fail to meet the requirements of stringent testing and the pressure groups totally opposed to biotechnological developments along those lines. In the fashion industry it can be as short as a few weeks.
Test marketing takes place in realistic marketing settings. It may also take long time again many years and be very expensive. If large investments are involved there is usually lots of test marketing in real environments, to finish fine tuning, and give an opportunity to change the mix variables and, especially in markets like agriculture and plant breeding, assess in the field things that are difficult to assess on paper. Trade shows, standard and controlled test markets are ideal places to present new product ideas. Test marketing gives all the information necessary to decide on whether the product is ready to launch from what is left of the original ideas.
New product development can be a risky business. It is a well established fact that most new consumer products fail but the market is dynamic and constantly changing. New products give a competitive edge. Existing products cannot be relied on to last forever. They all have a life cycle and eventually go into decline. New products are vital to survival but simply introducing new products is not enough. Good management is important to ensure new products come on stream to satisfy market demand (Kotler, 1999, Brassington and Pettitt, 2000).
The new product idea generation process may simply be an extension of an existing product line. The screening of ideas or varieties 1,2,3...plants must first undergo criteria rating setting out the specific features of each potential new product. New product ideas must be protected whever possible so that there is no plagiarism or important developments or sensitive information falling into the wrong hands. Mendel's plant breeding discoveries were developed by Hugo de Vries but in a totally different context and with different intentions and they cannot be described as Mendelian or of the school of Mendel.
Concept testing and positioning regarding the potential market will give data concerning whether the customer definitely would buy or definitely would not buy the potential product. Significant investment may have to be made to make the actual physical product from the ideas. Prototypes and tests for efficiency, quality and consistency will need to be carried out using laboratory tests, taste trials and so on for food products which could possibly lead to further disagreements. The length of the development phase can be very unpredictable, possibly many years, and involve many areas of expertise. It is the case in areas of ethical debate where arguments and feelings are very strong from a number of different quarters. Very sensitive or controversial products such as genetically modified foods make take years to develop and still fail to meet the requirements of stringent testing and the pressure groups totally opposed to biotechnological developments along those lines. In the fashion industry it can be as short as a few weeks.
Test marketing takes place in realistic marketing settings. It may also take long time again many years and be very expensive. If large investments are involved there is usually lots of test marketing in real environments, to finish fine tuning, and give an opportunity to change the mix variables and, especially in markets like agriculture and plant breeding, assess in the field things that are difficult to assess on paper. Trade shows, standard and controlled test markets are ideal places to present new product ideas. Test marketing gives all the information necessary to decide on whether the product is ready to launch from what is left of the original ideas.
New product development can be a risky business. It is a well established fact that most new consumer products fail but the market is dynamic and constantly changing. New products give a competitive edge. Existing products cannot be relied on to last forever. They all have a life cycle and eventually go into decline. New products are vital to survival but simply introducing new products is not enough. Good management is important to ensure new products come on stream to satisfy market demand (Kotler, 1999, Brassington and Pettitt, 2000).
Friday, 30 January 2009
This Way To The Trough
Economics analysts try to understand the economic world and then devise policies to try to improve it. Economic policy makers try to predict the outcome of alternative economic policies and evaluate them on a scale of better to worse by stating policy objectives and analysing policy outcomes according to political sentiments. An objective and scientific evaluation can be made of economic policy objectives such as efficiency, stability, growth and equity. Economic growth, in terms of incomes and productivity, is one of the main objectives of economic policy. Even in times of recession, economic performance is measured as a decrease in real GDP, or negative economic growth.
Growth transforms poor societies into rich ones but it has costs. The costs of growth are that in doing so it uses up exhaustible natural resources and might damage the environment. Two key factors that influence growth are technological advancement and capital accumulation. Devoting resources to one thing means they are not being devoted to anything else. There is always an opportunity cost. If resources are being used to discover new technologies and new forms of capital, they cannot be used to increase consumption goods and services or on current environmental concerns.
Growth can be measured in terms of the increase in real GDP. The periodic but irregular movement of economic activity we call the business cycle measures fluctuations of real GDP around potential GDP, the real GDP that could be produced if resources were fully employed. The economy has officially entered a recession and will eventually reach a 'trough' or turning point at which it will enter another phase of expansion. It is considered severe at the moment but is not expected to be as severe as a depression. Recessions are unpredictable as are animal spirits. One of the government's problems is closing the recessionary gap (Parkin, Powell and Matthews, 1997).
The current recession could be said to have global proportions. Globalisation means that process by which the production and marketing of products is becoming more integrated and interdependent (Harrison, Dalkiran and Elsey, 2000). As a result of this global economic interdependence the effects of the 'credit crisis' are being felt all over the world. The problem for the international institutions is that there is no model in finance, economics or international business theory that can explain or predict capital flows. The international institutions themselves may be out of date for the problems of the global environment. GATT has been replaced by WTO. The IMF was designed for a system that no longer exists. Internationally agreed policies may be required to curb the trend toward greater deregulation and international financial anarchy (Dawes, 1995).
Growth and population are often related. Rapid economic growth may be linked to rapid population growth. Real GDP per person is a measure of real GDP divided by population and can be used to compare growth rates across countries and over time. There may be similar features in productivity growth figures, business cycles and long-term trends in potential GDP in countries like the major OECD countries.
Long-term economic growth means expanded consumption possibilities, a better environment, pensions, welfare and more support for the poor and disadvantaged. When the rate slows the opposite effects and losses are felt. There is a relationship between the long-term growth rate and welfare and usually a trade-off between spending on welfare and on the productive sectors of the economy that generate growth. One of the biggest problems of macroeconomics is finding a balance of resource allocation between the two rival claims (Parkin, Powell and Matthews, 1997).
The scarcity of resources means that a frontier exists between what is attainable and unattainable in terms of production possibilities. Inward shifts along the frontier reduce our production possibilities and outward shifts expand the possibilities and resources are decreased and increased. Firms reduce production and prices for short-run equilibrium to eventually restore long-run equilibrium or they wouldn't be able to sell their products and customers buy what they need. Consumers may in fact be worried about their incomes and cut spending which would in turn leads to job losses, falling investment and a deepening of the recession. Consumer efficiency occurs when utility cannot be increased by reallocating their budgets. They should budget as wisely as ever for utility, preferences, indifference, substitutes and prices they can afford.
We can only continue to analyse the economic world, gain a greater understanding of how it works and devise institutions to that might improve economic performance. One thing is pretty sure, all the questions and answers will arise from scarcity (Parkin, Powell and Matthews, 1997).
Growth transforms poor societies into rich ones but it has costs. The costs of growth are that in doing so it uses up exhaustible natural resources and might damage the environment. Two key factors that influence growth are technological advancement and capital accumulation. Devoting resources to one thing means they are not being devoted to anything else. There is always an opportunity cost. If resources are being used to discover new technologies and new forms of capital, they cannot be used to increase consumption goods and services or on current environmental concerns.
Growth can be measured in terms of the increase in real GDP. The periodic but irregular movement of economic activity we call the business cycle measures fluctuations of real GDP around potential GDP, the real GDP that could be produced if resources were fully employed. The economy has officially entered a recession and will eventually reach a 'trough' or turning point at which it will enter another phase of expansion. It is considered severe at the moment but is not expected to be as severe as a depression. Recessions are unpredictable as are animal spirits. One of the government's problems is closing the recessionary gap (Parkin, Powell and Matthews, 1997).
The current recession could be said to have global proportions. Globalisation means that process by which the production and marketing of products is becoming more integrated and interdependent (Harrison, Dalkiran and Elsey, 2000). As a result of this global economic interdependence the effects of the 'credit crisis' are being felt all over the world. The problem for the international institutions is that there is no model in finance, economics or international business theory that can explain or predict capital flows. The international institutions themselves may be out of date for the problems of the global environment. GATT has been replaced by WTO. The IMF was designed for a system that no longer exists. Internationally agreed policies may be required to curb the trend toward greater deregulation and international financial anarchy (Dawes, 1995).
Growth and population are often related. Rapid economic growth may be linked to rapid population growth. Real GDP per person is a measure of real GDP divided by population and can be used to compare growth rates across countries and over time. There may be similar features in productivity growth figures, business cycles and long-term trends in potential GDP in countries like the major OECD countries.
Long-term economic growth means expanded consumption possibilities, a better environment, pensions, welfare and more support for the poor and disadvantaged. When the rate slows the opposite effects and losses are felt. There is a relationship between the long-term growth rate and welfare and usually a trade-off between spending on welfare and on the productive sectors of the economy that generate growth. One of the biggest problems of macroeconomics is finding a balance of resource allocation between the two rival claims (Parkin, Powell and Matthews, 1997).
The scarcity of resources means that a frontier exists between what is attainable and unattainable in terms of production possibilities. Inward shifts along the frontier reduce our production possibilities and outward shifts expand the possibilities and resources are decreased and increased. Firms reduce production and prices for short-run equilibrium to eventually restore long-run equilibrium or they wouldn't be able to sell their products and customers buy what they need. Consumers may in fact be worried about their incomes and cut spending which would in turn leads to job losses, falling investment and a deepening of the recession. Consumer efficiency occurs when utility cannot be increased by reallocating their budgets. They should budget as wisely as ever for utility, preferences, indifference, substitutes and prices they can afford.
We can only continue to analyse the economic world, gain a greater understanding of how it works and devise institutions to that might improve economic performance. One thing is pretty sure, all the questions and answers will arise from scarcity (Parkin, Powell and Matthews, 1997).
Wednesday, 28 January 2009
Winning Hearts And Minds
The changes that have taken place in advertising over recent years has been amazing. Television, radio, the Internet and other new media have added so many different dimensions to advertising that it bears little resemblance to the paper notices and lineage of the past. That is not to say that the adverts and advertisers of earlier days were not good. They still inspire marketers today but the new techniques and media have added so much and so many different kinds to the panoply of practitioners in a short space of time that it could be described as kind of revolution.
The media have increased but that is no guarantee that the offering will be successful and bring in lots of new customers. The message has to be right. You have to be satisfied that the message you put out is the one you want the consumer to get. The response to the right message will tell you if the market is there for your product. Consumers are only human and if the marketing mix isn't quite right it will be reflected in sales. Each element of the marketing, advertising and promotion mixes is crucially important. Consumers respond to stimuli and behave accordingly. The number of things to be borne in mind when designing a campaign is staggering. The marketer has to know the product well enough to be able to sell it and the learning and memory abilities of the public. Consumer motivation will affect buying decisions.
We all have our values, core values taught by socialisation agents and value systems ranking things according to relative importance will ultimately have a lot to do with if we buy or not. Values are also incorporated into the means-end chain model which links product attributes according to increasing levels of abstraction to our terminal values (Solomon, Bamossy and Askegaard, 2002).
On the abstract level, many different product forms compete for our attention in any given category. Consumers must make a choice using their own decision rules. Marketing campaigns that are well integrated can do much to educate the public about your product and the choice they have to make. Consumers also have their own internal information system. Heuristic rules of thumb help a consumer to shorten information processing. Consumers develop assumptions about companies and products. These market beliefs can act as mental shortcuts whether they are accurate or not (Solomon et al., 2002).
Then there's the competition. The marketing concept says that competitive advantage is gained by satisfying target customers' needs better than the competition. First comes analysis then strategy development. Product category must be the first thing to consider. Companies in the same industry compete for customers in the market. Once a company enters a strategic group the members of that group become its main competitors. The more a company knows about its competitors' products, prices, marketing and sales plans, distribution coverage and so on the more competitive it will be (Kotler, 1999). Research and development and finance are other key strategies of which to be aware. Competitors can be of any number of classifications. If a competitor comes up with a more attractive rival product you may lose customers. Market orientation is a method that combines efforts to focus on both consumers and competition. You may want to win the hearts and minds of consumers.
Political consumers can use their buying patterns in ways that reflect their values in the same sort of way green consumers once did (Solomon et al, 2002). They are not the only people to say that businesses have too much political power. Pressures from the political and regulatory environment may also affect consumer decisions. They determine and maintain the framework within which business must be done (Brassington and Pettitt, 2000). Knowledge of local practices may be crucial in achieving sales (Kotler, 1999).
Income, social class and age will be factors that affect purchase decisions. Ability and willingness to buy depends on demand for products. Demand for necessities is stable over time. Many other products are frequently used as status symbols and often reflect the amount of discretionary income and conspicuous consumption or parody display that tries to avoid status (Solomon et al., 2002). Engel's Law suggests that such products may always find a market (Kotler, 1999). Money worries and anxieties about self-image and reference groups will have their effects and marketers should remember that if the price is not right consumers will look for substitutes.
Once gained, as many customers as possible should be retained. Retaining customers is more cost-effective than gaining new ones (Brassington and Pettitt, 2000). Customer retention will depend on how well needs have been satisfied. The focus was once on transactions now customer satisfaction also demands relationship marketing techniques like financial and social benefits and structural ties to turn customers into clients (Kotler, 1999).
The media have increased but that is no guarantee that the offering will be successful and bring in lots of new customers. The message has to be right. You have to be satisfied that the message you put out is the one you want the consumer to get. The response to the right message will tell you if the market is there for your product. Consumers are only human and if the marketing mix isn't quite right it will be reflected in sales. Each element of the marketing, advertising and promotion mixes is crucially important. Consumers respond to stimuli and behave accordingly. The number of things to be borne in mind when designing a campaign is staggering. The marketer has to know the product well enough to be able to sell it and the learning and memory abilities of the public. Consumer motivation will affect buying decisions.
We all have our values, core values taught by socialisation agents and value systems ranking things according to relative importance will ultimately have a lot to do with if we buy or not. Values are also incorporated into the means-end chain model which links product attributes according to increasing levels of abstraction to our terminal values (Solomon, Bamossy and Askegaard, 2002).
On the abstract level, many different product forms compete for our attention in any given category. Consumers must make a choice using their own decision rules. Marketing campaigns that are well integrated can do much to educate the public about your product and the choice they have to make. Consumers also have their own internal information system. Heuristic rules of thumb help a consumer to shorten information processing. Consumers develop assumptions about companies and products. These market beliefs can act as mental shortcuts whether they are accurate or not (Solomon et al., 2002).
Then there's the competition. The marketing concept says that competitive advantage is gained by satisfying target customers' needs better than the competition. First comes analysis then strategy development. Product category must be the first thing to consider. Companies in the same industry compete for customers in the market. Once a company enters a strategic group the members of that group become its main competitors. The more a company knows about its competitors' products, prices, marketing and sales plans, distribution coverage and so on the more competitive it will be (Kotler, 1999). Research and development and finance are other key strategies of which to be aware. Competitors can be of any number of classifications. If a competitor comes up with a more attractive rival product you may lose customers. Market orientation is a method that combines efforts to focus on both consumers and competition. You may want to win the hearts and minds of consumers.
Political consumers can use their buying patterns in ways that reflect their values in the same sort of way green consumers once did (Solomon et al, 2002). They are not the only people to say that businesses have too much political power. Pressures from the political and regulatory environment may also affect consumer decisions. They determine and maintain the framework within which business must be done (Brassington and Pettitt, 2000). Knowledge of local practices may be crucial in achieving sales (Kotler, 1999).
Income, social class and age will be factors that affect purchase decisions. Ability and willingness to buy depends on demand for products. Demand for necessities is stable over time. Many other products are frequently used as status symbols and often reflect the amount of discretionary income and conspicuous consumption or parody display that tries to avoid status (Solomon et al., 2002). Engel's Law suggests that such products may always find a market (Kotler, 1999). Money worries and anxieties about self-image and reference groups will have their effects and marketers should remember that if the price is not right consumers will look for substitutes.
Once gained, as many customers as possible should be retained. Retaining customers is more cost-effective than gaining new ones (Brassington and Pettitt, 2000). Customer retention will depend on how well needs have been satisfied. The focus was once on transactions now customer satisfaction also demands relationship marketing techniques like financial and social benefits and structural ties to turn customers into clients (Kotler, 1999).
Thursday, 22 January 2009
The Perfect Manager
What makes the perfect manager? Is there such a thing? Is such a thing possible? Where does the perfect manager work? How much does he/she get paid? What does perfect mean? What does manager mean? How subjective is it?
The perfect manager will be able to give insights and inputs into strategy and will have tactical awareness and ability. Good interpersonal skills will be required for interacting with people at different levels of the organisation from the shop floor to the board room. Analytical skills for planning, implementation and control of marketing cannot be overlooked (Kotler, 1999).
Leadership style could be autocratic or democratic. Authority and freedom are both important but how much and where? Contingency style might suit best (Mullins, 1999). Management competencies and skills like communication skills, encoding and decoding written and verbal communication, delegating and negotiating, co-ordination of different roles and departments for a congruent outcome must be included in the analysis. Making sure of good information systems will help make the right decisions. Faultless financial analysis and budgeting, planning and control of accounting plans should keep the cash flowing. Organisation skills and structures and decisions on whether to have them entrepreneurial or bureaucratic are so important. Time is the manager's most precious resource. Good time management is vital to get things done. Boundary management is necessary to contain and differentiate the business from other open systems (Morden, 1996). The perfect manager, to be complete, must have the ability to manage diversity and manage change without upsetting people. Someone who knows the family well, an old friend.
It must be someone who will not give up the manager's right to manage. Someone with a management style for performance, productivity and work behaviour applying Theory X or Y or Z or the Golden Rule and being a people company (Mullins, 1999). Management must show more concern for the environment and social responsibility (Morden, 1996). It must involve the choice and application of business, marketing and communications ethics. The management, human resources and marketing philosophies of a perfect manager must make a difference to work performance, morale and relationships (Mullins, 1999).
A manager works for a firm and must make a contribution to accomplish the mission, aims and objectives of the business. The perfect manager must be whatever best suits particular requirements of the employer or situation. So perhaps it comes down to recruitment and selection and whoever best fits the job description and person specification. Given a competent HR manager. We all have different values and opinions, so maybe there is no such thing.
The perfect manager will be able to give insights and inputs into strategy and will have tactical awareness and ability. Good interpersonal skills will be required for interacting with people at different levels of the organisation from the shop floor to the board room. Analytical skills for planning, implementation and control of marketing cannot be overlooked (Kotler, 1999).
Leadership style could be autocratic or democratic. Authority and freedom are both important but how much and where? Contingency style might suit best (Mullins, 1999). Management competencies and skills like communication skills, encoding and decoding written and verbal communication, delegating and negotiating, co-ordination of different roles and departments for a congruent outcome must be included in the analysis. Making sure of good information systems will help make the right decisions. Faultless financial analysis and budgeting, planning and control of accounting plans should keep the cash flowing. Organisation skills and structures and decisions on whether to have them entrepreneurial or bureaucratic are so important. Time is the manager's most precious resource. Good time management is vital to get things done. Boundary management is necessary to contain and differentiate the business from other open systems (Morden, 1996). The perfect manager, to be complete, must have the ability to manage diversity and manage change without upsetting people. Someone who knows the family well, an old friend.
It must be someone who will not give up the manager's right to manage. Someone with a management style for performance, productivity and work behaviour applying Theory X or Y or Z or the Golden Rule and being a people company (Mullins, 1999). Management must show more concern for the environment and social responsibility (Morden, 1996). It must involve the choice and application of business, marketing and communications ethics. The management, human resources and marketing philosophies of a perfect manager must make a difference to work performance, morale and relationships (Mullins, 1999).
A manager works for a firm and must make a contribution to accomplish the mission, aims and objectives of the business. The perfect manager must be whatever best suits particular requirements of the employer or situation. So perhaps it comes down to recruitment and selection and whoever best fits the job description and person specification. Given a competent HR manager. We all have different values and opinions, so maybe there is no such thing.
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