In today's economic situation, only big business players can survive and stays in the market scene. Small players don't seem to have a chance to capture even a portion of the market share. But having a good marketing strategy can make it possible for small businesses to acquire a portion of the market. And that strategy is none other than niche marketing.
Niche marketing is one way to make market share feasible. By definition, a niche market usually evolves when potential demand for a product or service is not met by any supply, or when a new demand arises due to changes in society, technology, or the general environment. In layman's term, it a small portion of the market that is mostly ignored by big players because it will not give them high profit in return.
Positioning your small business in a niche market is easier and realistic than competing head to head with big dragons in the business industry. Venturing to this kind of marketing strategy may become profitable even though they are by nature small as compared to the mainstream marketplace. Because most likely, large companies are targeting large areas of the market for the purpose of maximization of potentials and usually ignore small identifiable market segments. This will eliminate the presence of economies of scale and monopoly making it easier for you to create a market entry.
Venturing niche marketing will not require high cost of marketing operations for it usually does not have existing stiff competition. Marketing activities is mostly focused on awareness campaign in order for small business to create an image and let them know of its existence and it is ready to serve their needs in terms of custom-made products and services. Commonly, niche marketers are often reliant on the loyalty business model to maintain a profitable volume of sales.
Some key points that need to be remembered when deciding to venture into niche market, is to find or develop a narrowly defined group of potential customers who are accessible, has the capability to grow fast and not yet owned by one established vendor.
Niche markets can be usually found or created on newly developed residential places, unpopular small towns or groups of people who have distinct buying behavior or taste. One good example is the production of soft drinks which is serving large markets covering different buyers' demographics. Well known big players in this business industry are Pepsi and Coke. But you will notice that there are other soft drink brands being catered in small and far provinces that seems to be not too popular for majority buying public. Manufacturers of these soft drinks are adopting the niche marketing, trying to limit their distribution on small areas and not competing directly on big business players.
Saturday, February 28, 2009
How to market a cookbook?
There are many marketing strategies you can choose to introduce your product in the market. Just choose the one that will work well with your product and can create positive outcomes for your business. The way you will market your product will determine how your product will acquire a market share. Aside from its attractive packaging or appearance, a product can be attractive to buying public through its features, price and quality of content.
Cookbooks just like any other books can be best presented through its content. One best way to market a cookbook is to give consideration to the human five senses. For you can only fully convince a customer to purchase and try your cookbook if they can perceive its contents. Here are some tips on how to effectively market a cookbook:
USE VISUAL EFFECTS
Promoting your cookbook is just like promoting any new product or service. You have to make an awareness campaign but do it visually by showing pictures of how the recipe will look like in its final outcome. Some marketers uses sample video instructions just like what we see on some online sites. This will give the customer some idea how yummy the recipe is when finally cooked.
LET ITS AROMA AND TASTE DO THE TALKING
Host a demo cooking on malls or supermarket or places where women or mothers usually go. Actual aroma of the sample recipe you'll cook during the demo show will directly attract those who can smell it. Much more if you will ask viewers to do some taste test just like what other food products are doing. Remember, actual scent and taste will be the best proof of how delicious the recipes that are contained in the cookbook. Another good idea is to host or sponsor a party for you to have more chances to show many sample recipes.
LET THEM FEEL YOUR COOKBOOK
During the demo, people who can have a chance to taste the sample recipe can feel your cookbook by experiencing its taste. The feeling of being satisfied with its taste will motivate them to share it with their family or loved ones thereby influencing them to buy your cookbook.
CREATE GOOD COMMENTS
Give your best in every marketing activity you do. If possible, give viewers the chance to comment on your cookbook. Choose the best testimonies and let it be heard or read by others. These good testimonies will do the marketing for you and for sure it can add credits to the total image of your cookbook. Remember, word of the mouth is one best way to market your cookbook.
Cookbooks just like any other books can be best presented through its content. One best way to market a cookbook is to give consideration to the human five senses. For you can only fully convince a customer to purchase and try your cookbook if they can perceive its contents. Here are some tips on how to effectively market a cookbook:
USE VISUAL EFFECTS
Promoting your cookbook is just like promoting any new product or service. You have to make an awareness campaign but do it visually by showing pictures of how the recipe will look like in its final outcome. Some marketers uses sample video instructions just like what we see on some online sites. This will give the customer some idea how yummy the recipe is when finally cooked.
LET ITS AROMA AND TASTE DO THE TALKING
Host a demo cooking on malls or supermarket or places where women or mothers usually go. Actual aroma of the sample recipe you'll cook during the demo show will directly attract those who can smell it. Much more if you will ask viewers to do some taste test just like what other food products are doing. Remember, actual scent and taste will be the best proof of how delicious the recipes that are contained in the cookbook. Another good idea is to host or sponsor a party for you to have more chances to show many sample recipes.
LET THEM FEEL YOUR COOKBOOK
During the demo, people who can have a chance to taste the sample recipe can feel your cookbook by experiencing its taste. The feeling of being satisfied with its taste will motivate them to share it with their family or loved ones thereby influencing them to buy your cookbook.
CREATE GOOD COMMENTS
Give your best in every marketing activity you do. If possible, give viewers the chance to comment on your cookbook. Choose the best testimonies and let it be heard or read by others. These good testimonies will do the marketing for you and for sure it can add credits to the total image of your cookbook. Remember, word of the mouth is one best way to market your cookbook.
Tuesday, February 24, 2009
What are the uncontrollable macroenvironmental forces of a marketing system?
In business, the marketing concept implies that a coordinated marketing organization is an efficient and profitable means of satisfying consumer wants. This notion goes along the basic definition of marketing as a total system of business action.
Marketing system therefore includes the organization doing the marketing job; the product, service, idea, or person being marketed; the target market; the intermediaries helping in the exchange transaction like the retailers, wholesalers, financial institutions and middlemen; and the environmental constraints.
The company's marketing system must operate within the framework of forces that constitute the system's environment. These environmental constraints are the macro environmental forces of a marketing system that are mostly not within the control of the company and yet have considerable effects on its operation. They are as follows:
DEMOGRAPHY
This is very vital to marketers because people who have the money to spend and willingness to spend it are what constitute markets. Demography as defined refers to the statistical study of human population and its distribution characteristics. Knowing the demographic statistics of your target market will likely show you the available opportunities in the market share.
ECONOMIC CONDITIONS
Basically, people alone can't buy your offered products and services if they don't have money; therefore, making the economic condition as an important factor that affects your marketing system. The purchasing power of each buyer depends on his economic condition. Just like now that most countries are suffering from global crisis, people will tend to buy only products that are important.
SOCIAL AND CULTURAL FORCES
These social and cultural forces constitute the lifestyle, beliefs, social values, traditions, and desires of consumers. Usually, these factors are changing much faster than they used to. A good example is a housewife who has changed into a career mother. Due to her limited time devoted to their home, she now prefers to buy products that are easy and convenient to use like ready mix for cooking or ready to eat meals.
POLITICAL AND LEGAL FORCES
This factor can greatly affect marketing system because every business should undergo or seek approval from their local government before implementing a certain marketing program that involves the external environment. Other factors included in these forces are existing laws on taxes, import and export, zoning and other national and local government policies.
TECHNOLOGY
The fast changing technological growth has made a tremendous impact in the lifestyle, consumption pattern and economic well being of every individual. Examples of these are the work shifting from manual to mechanical process, unlimited access and wide scope of communication.
COMPETITION
This is considered as a strong macro environmental force. People usually want total satisfaction in the product or services they purchased in exchange of their money. Marketing system must include an effective strategy that will lift the company status in the market field giving it a competitive edge.
Marketing system therefore includes the organization doing the marketing job; the product, service, idea, or person being marketed; the target market; the intermediaries helping in the exchange transaction like the retailers, wholesalers, financial institutions and middlemen; and the environmental constraints.
The company's marketing system must operate within the framework of forces that constitute the system's environment. These environmental constraints are the macro environmental forces of a marketing system that are mostly not within the control of the company and yet have considerable effects on its operation. They are as follows:
DEMOGRAPHY
This is very vital to marketers because people who have the money to spend and willingness to spend it are what constitute markets. Demography as defined refers to the statistical study of human population and its distribution characteristics. Knowing the demographic statistics of your target market will likely show you the available opportunities in the market share.
ECONOMIC CONDITIONS
Basically, people alone can't buy your offered products and services if they don't have money; therefore, making the economic condition as an important factor that affects your marketing system. The purchasing power of each buyer depends on his economic condition. Just like now that most countries are suffering from global crisis, people will tend to buy only products that are important.
SOCIAL AND CULTURAL FORCES
These social and cultural forces constitute the lifestyle, beliefs, social values, traditions, and desires of consumers. Usually, these factors are changing much faster than they used to. A good example is a housewife who has changed into a career mother. Due to her limited time devoted to their home, she now prefers to buy products that are easy and convenient to use like ready mix for cooking or ready to eat meals.
POLITICAL AND LEGAL FORCES
This factor can greatly affect marketing system because every business should undergo or seek approval from their local government before implementing a certain marketing program that involves the external environment. Other factors included in these forces are existing laws on taxes, import and export, zoning and other national and local government policies.
TECHNOLOGY
The fast changing technological growth has made a tremendous impact in the lifestyle, consumption pattern and economic well being of every individual. Examples of these are the work shifting from manual to mechanical process, unlimited access and wide scope of communication.
COMPETITION
This is considered as a strong macro environmental force. People usually want total satisfaction in the product or services they purchased in exchange of their money. Marketing system must include an effective strategy that will lift the company status in the market field giving it a competitive edge.
How does motivation and perception influence consumer behavior?
In today's challenging world of business, one must create something that will gain strong attraction from buyers. A lot of marketing strategies were developed and implemented by business man just to increase consumer patronage of their products and services. But not all marketing activities results to positive business outcomes. Others spent million of cash just to have the best marketing program but in the end failed to meet their desired position in the market scene. These failures are due primarily when marketers failed to distinguish what factors can really influence their consumer behavior.
It is a known fact that consumers differ in personality and it is quite difficult to know their individual need. But knowing what influence them to behave the way they are in purchasing a particular product can be of big help. Usually, it is the person's perception that can influence his behavior towards a particularly product. But one or more motives within a person trigger behavior toward a goal that is expected to bring satisfaction.
As marketer, we are trying to understand why consumer behaves as they do. But sometimes, we failed to ask why that person acts at all. Motivation is simply the answer to this question. Every person's behavior begins with motivation. To define it, motivation or motive serves as a drive that stimulates need that an individual seek to satisfy. But take note that it requires to have intense stimulation or aroused before it becomes a motive. Let say for example, every person needs food as one of his basic need. But it requires that person to feel hunger before he will start looking for something to eat. In this example, the feeling of hunger is the drive or motive and the act of looking for food is the behavior.
These motives are categorized as biogenic and psychogenic needs. My example falls for the biogenic needs together with need for drinks, sex, and bodily comfort. Although both type of motives requires to be given focus by marketers, psychological needs requires special treatment. This is for the reason that by nature, man is destined to buy and satisfy his biogenic needs in order to survive. But other products that are not much important biologically call for extra effort to win the customer's purchase. It is in this phase where perception is given much emphasis in marketing.
Perception is defined as what we see, hear, smell, feel and taste. Basically, anything that can be acquired through our five senses. It is commonly shaped by three sets of influences such as the physical characteristics of the stimuli, the relation of stimuli to their surroundings and the conditions within us. As we perceived the shape, color, sound, feel, smell and taste of stimuli, our behavior is then influenced by these physical perceptions. Let's go back again to my example. The delicious aroma of the food, the positive comments of the people eating in a restaurant that we hear, the yummy spoonful manner of eating of the customers, and the aching call of our stomach serves as the perception that will make us decide to buy food to eat.
It is a known fact that consumers differ in personality and it is quite difficult to know their individual need. But knowing what influence them to behave the way they are in purchasing a particular product can be of big help. Usually, it is the person's perception that can influence his behavior towards a particularly product. But one or more motives within a person trigger behavior toward a goal that is expected to bring satisfaction.
As marketer, we are trying to understand why consumer behaves as they do. But sometimes, we failed to ask why that person acts at all. Motivation is simply the answer to this question. Every person's behavior begins with motivation. To define it, motivation or motive serves as a drive that stimulates need that an individual seek to satisfy. But take note that it requires to have intense stimulation or aroused before it becomes a motive. Let say for example, every person needs food as one of his basic need. But it requires that person to feel hunger before he will start looking for something to eat. In this example, the feeling of hunger is the drive or motive and the act of looking for food is the behavior.
These motives are categorized as biogenic and psychogenic needs. My example falls for the biogenic needs together with need for drinks, sex, and bodily comfort. Although both type of motives requires to be given focus by marketers, psychological needs requires special treatment. This is for the reason that by nature, man is destined to buy and satisfy his biogenic needs in order to survive. But other products that are not much important biologically call for extra effort to win the customer's purchase. It is in this phase where perception is given much emphasis in marketing.
Perception is defined as what we see, hear, smell, feel and taste. Basically, anything that can be acquired through our five senses. It is commonly shaped by three sets of influences such as the physical characteristics of the stimuli, the relation of stimuli to their surroundings and the conditions within us. As we perceived the shape, color, sound, feel, smell and taste of stimuli, our behavior is then influenced by these physical perceptions. Let's go back again to my example. The delicious aroma of the food, the positive comments of the people eating in a restaurant that we hear, the yummy spoonful manner of eating of the customers, and the aching call of our stomach serves as the perception that will make us decide to buy food to eat.
Product packaging influences consumer buying behavior
A good product planning includes an effective product packaging. In marketing, packaging is defined as the general group of activities in product planning that involves designing and producing the container or wrapper for a product. It is done by most product producing companies for utilitarian reason that it helps protect the product on its route from the manufacturer to the final consumer. It also serves as a way of differentiating the product from its competitive commodities and it aims to provide attraction to customers.
The use of packaging as a marketing strategy can greatly influence the consumer buying behavior. Some of these strategies are the family packaging strategy, reuse packaging and multiple packaging. In the family packaging, usually manufacturers create a family resemblance in the packaging of its several products. Consumers who are loyal on a particular brand will find it easy to buy other product lines with similar brand because of its resemblance in the packaging.
Reuse packaging is mostly adopted because it is proven to have big influence in convincing the consumer to buy the product. Manufacturers usually make use of reusable items like glass, paper or plastic bags and canisters as package for the intention that final consumer can still make use of the package after the product has been consumed.
Multiple packaging is a packaging strategy wherein manufacturers put several products in one package and have one single price for it. Most likely, consumers will be influenced to buy the whole package because they think they can save by buying in bulk.
Although these packaging strategies are proven to have effects on the sale ability of the product, there are other attributes of packaging that can influence the consumer buying behavior. These are as follows:
PACKAGING DESIGN
Consumers give attention to glamour and appeal of the product packaging. Good packaging design can improve the marketability of a product. With its external appeal, it gives the consumer the impression that what's inside the package is better and worthy.
COLOR
Usually this is the determining factor in a customer's acceptance or rejection of a product. The careful use of colors in product packaging can increase sales, reduce eyestrain, and generally affect emotional reactions.
PRODUCT QUALITY
In some cases, a consumer always relates the product quality with its kind of package. The product image building features were defined first on its external appearance.
PRODUCT WARRANTY
Labeling is a related activity of packaging because it is usually placed on the package itself. A product package that bears the product warranty will give the customer an assurance that the money he paid is worthy for the product he bought. Consumers are more aggressive in buying product with sure warranty than product that does not promise 100% efficiency.
The use of packaging as a marketing strategy can greatly influence the consumer buying behavior. Some of these strategies are the family packaging strategy, reuse packaging and multiple packaging. In the family packaging, usually manufacturers create a family resemblance in the packaging of its several products. Consumers who are loyal on a particular brand will find it easy to buy other product lines with similar brand because of its resemblance in the packaging.
Reuse packaging is mostly adopted because it is proven to have big influence in convincing the consumer to buy the product. Manufacturers usually make use of reusable items like glass, paper or plastic bags and canisters as package for the intention that final consumer can still make use of the package after the product has been consumed.
Multiple packaging is a packaging strategy wherein manufacturers put several products in one package and have one single price for it. Most likely, consumers will be influenced to buy the whole package because they think they can save by buying in bulk.
Although these packaging strategies are proven to have effects on the sale ability of the product, there are other attributes of packaging that can influence the consumer buying behavior. These are as follows:
PACKAGING DESIGN
Consumers give attention to glamour and appeal of the product packaging. Good packaging design can improve the marketability of a product. With its external appeal, it gives the consumer the impression that what's inside the package is better and worthy.
COLOR
Usually this is the determining factor in a customer's acceptance or rejection of a product. The careful use of colors in product packaging can increase sales, reduce eyestrain, and generally affect emotional reactions.
PRODUCT QUALITY
In some cases, a consumer always relates the product quality with its kind of package. The product image building features were defined first on its external appearance.
PRODUCT WARRANTY
Labeling is a related activity of packaging because it is usually placed on the package itself. A product package that bears the product warranty will give the customer an assurance that the money he paid is worthy for the product he bought. Consumers are more aggressive in buying product with sure warranty than product that does not promise 100% efficiency.
Saturday, February 21, 2009
What marketing is all about?
Marketing as defined refers to any interpersonal or inter-organizational relationship involving an exchange or transaction intended to satisfy human needs or wants. From this definition, it is clearly understood that the broad dimensions of marketing covers the marketers, what is being marketed and to whom you intend to market or in other words, the target market.
In business, marketing plays a vital role for it involves the total system of business such as planning, pricing, promoting and distribution of products and services that aims to satisfy the demand of consumers and need of industrial users. But its functions do not end after selling the product or services. It also aims to acquire repeat transactions that can maximize company earnings.
In order to have an effective marketing program, certain areas of business should be given emphasis. All company planning and operations must be customer-oriented focusing on customer satisfaction. Company goal should aim for profitable sales volume and not just volume alone because marketing is implemented to improve business financial standing. Lastly, all marketing activities in a firm should be properly coordinated with all the key areas in the organization in order to avoid any possible conflict and for easy attainment of the targeted company objective.
Marketing is always mistakenly believed to be similar with selling. But the truth is, they are not. Instead, they are opposite in concept and practices. Some of their major differences are:
1. Emphasis on marketing is on what does the customer's wants while selling is focus on the product.
2. In marketing, the company verifies first the consumers' needs and then produce. Unlike in selling, they produce first then sell it.
3. In marketing, management is profit oriented while in selling, the management is volume oriented.
4. In marketing, planning is made for long term while in selling, it is only for short term period.
Focusing on the four P's of marketing, the whole program will be responsible in the planning, organizing, implementation, development, improvement and monitoring of the activities related to product, pricing, distribution and promotion. These activities must be interrelated and must agree on same marketing goal.
Most likely, company integrates marketing activities within their organization's system because it will help the organization create its own image in the business industry. The kind of image that will differentiate them from rival companies and will develop awareness and loyalty among customers. The use of marketing will also assist them in determining their customer's demographics, their customer's level of acceptance, their effectiveness in delivering the customer's needs and their competitiveness in the business arena.
In business, marketing plays a vital role for it involves the total system of business such as planning, pricing, promoting and distribution of products and services that aims to satisfy the demand of consumers and need of industrial users. But its functions do not end after selling the product or services. It also aims to acquire repeat transactions that can maximize company earnings.
In order to have an effective marketing program, certain areas of business should be given emphasis. All company planning and operations must be customer-oriented focusing on customer satisfaction. Company goal should aim for profitable sales volume and not just volume alone because marketing is implemented to improve business financial standing. Lastly, all marketing activities in a firm should be properly coordinated with all the key areas in the organization in order to avoid any possible conflict and for easy attainment of the targeted company objective.
Marketing is always mistakenly believed to be similar with selling. But the truth is, they are not. Instead, they are opposite in concept and practices. Some of their major differences are:
1. Emphasis on marketing is on what does the customer's wants while selling is focus on the product.
2. In marketing, the company verifies first the consumers' needs and then produce. Unlike in selling, they produce first then sell it.
3. In marketing, management is profit oriented while in selling, the management is volume oriented.
4. In marketing, planning is made for long term while in selling, it is only for short term period.
Focusing on the four P's of marketing, the whole program will be responsible in the planning, organizing, implementation, development, improvement and monitoring of the activities related to product, pricing, distribution and promotion. These activities must be interrelated and must agree on same marketing goal.
Most likely, company integrates marketing activities within their organization's system because it will help the organization create its own image in the business industry. The kind of image that will differentiate them from rival companies and will develop awareness and loyalty among customers. The use of marketing will also assist them in determining their customer's demographics, their customer's level of acceptance, their effectiveness in delivering the customer's needs and their competitiveness in the business arena.
Friday, February 20, 2009
What is Total Quality Management(TQM)?
Total Quality Management (TQM) is used as an effective strategy to make your company gain competitive advantage. Generally, it is proven to be an effective process for the improvement of organizational functions when properly installed. But not all organizations or company are appropriate and ready for TQM. For it requires preconditioning, leadership commitment to a large-scale, long term, cultural change, to make it successful.
A lot of business owners are eager to adopt TQM and implement it abruptly in their system, failing to realize that their employees and the whole company itself are not yet prepared and ready for substantial changes. This will lead them to a worse scenario resulting to employees' conflict, disappointments and unproductive outputs.
The implementation of Total Quality Management should be centered to continuous improvement of both products and processes, with accurate measurement of activities, empowerment of people and intense focus on customer satisfaction. It cannot be built in one day or two but requires a long term commitment from all the people involved.
TQM is not just simply change in company rules and policies. It's totally more than that for it includes change in an organization's culture, its norms, values, and belief systems about how the company functions. It is also involves change in its political system, pertaining to the process of decision making and power bases.
Once TQM is being implemented within the company, there are several quality control tools can be used that will help measure operational activities to ensure its effectiveness. These are process flowchart, check sheets, cause and effect diagrams, Pareto analysis, scatter diagrams, histograms, run charts and control charts. Results from these monitoring tools are good representation of how the process is improving.
Resistance is one great hindrance to the success of TQM implementation. For it is normal for people to resist change and have fear of losing their position or work. One key element to make this work is to involve your employees in the TQM process. Increasing their participation in decision making about various aspects of the process will elevate their feeling of sense of ownership in what is decided and they will be committed to their own resultant outcomes.
Always remember that Total Quality Management should be purpose driven. Management should be very clear on the company's vision for the future and stay focused on it. Leaders will need to maintain their commitment, keep the process visible, provide needed support, and hold people accountable for the results. It is a difficult, comprehensive and continuous process that is hard to accept in the beginning but with full cooperation, can become part of the norms and be a powerful technique for enhancing employee's creativity and full utilization of their potential that can improve the total service to clients.
A lot of business owners are eager to adopt TQM and implement it abruptly in their system, failing to realize that their employees and the whole company itself are not yet prepared and ready for substantial changes. This will lead them to a worse scenario resulting to employees' conflict, disappointments and unproductive outputs.
The implementation of Total Quality Management should be centered to continuous improvement of both products and processes, with accurate measurement of activities, empowerment of people and intense focus on customer satisfaction. It cannot be built in one day or two but requires a long term commitment from all the people involved.
TQM is not just simply change in company rules and policies. It's totally more than that for it includes change in an organization's culture, its norms, values, and belief systems about how the company functions. It is also involves change in its political system, pertaining to the process of decision making and power bases.
Once TQM is being implemented within the company, there are several quality control tools can be used that will help measure operational activities to ensure its effectiveness. These are process flowchart, check sheets, cause and effect diagrams, Pareto analysis, scatter diagrams, histograms, run charts and control charts. Results from these monitoring tools are good representation of how the process is improving.
Resistance is one great hindrance to the success of TQM implementation. For it is normal for people to resist change and have fear of losing their position or work. One key element to make this work is to involve your employees in the TQM process. Increasing their participation in decision making about various aspects of the process will elevate their feeling of sense of ownership in what is decided and they will be committed to their own resultant outcomes.
Always remember that Total Quality Management should be purpose driven. Management should be very clear on the company's vision for the future and stay focused on it. Leaders will need to maintain their commitment, keep the process visible, provide needed support, and hold people accountable for the results. It is a difficult, comprehensive and continuous process that is hard to accept in the beginning but with full cooperation, can become part of the norms and be a powerful technique for enhancing employee's creativity and full utilization of their potential that can improve the total service to clients.
What are the functions of a good business research project?
Business research are mostly conducted by companies in search for remedy to their current business problems, to seek improvement in their system, to give way to the attainment of their company goals or to prove, evaluate existing business practices, and validate some business decisions. It is created for the purpose of making the business operations better and open the doors for possible opportunities.
Generally, research means to search more. It is a systematic objective and comprehensive investigation of a certain phenomenon that can be acquired by a scientific data gathering, in-depth analysis, and concise interpretation of facts pertaining to the phenomenon. It is commonly used for business for the purpose of obtaining competitive advantage. Here are some of the functions of business research:
CORRECTS PERCEPTIONS
A business research corrects perceptions and instincts that were derived from some unusual scenarios, events or sometimes hearsays. Results derived from research expand your know-how about the details and facts concerning a certain business issue or problem.
GATHERS INFORMATION
It helps in gathering information on subjects or phenomena that is unknown to the company or has little knowledge about. Business research will open possible sources of relevant information and explore this information to show clearly its relation to the business problem or objective. Sometimes, there is information which you used to ignore but proven by means of business research to have big impact on the business operation.
VALIDATE CONCEPTS AND METHODS
Business research also develops and evaluates concepts, practices and theories. Through its findings, you can validate some theories if they are still applicable to adopt in your business in our recent time. It also helps in the development and evaluation of current methods being used that test concepts, practices and theories. Knowing this information will help you create or try new business methods that will be more suitable to your kind of operation.
OBTAIN PRACTICAL KNOWLEDGE
Conducting business research will give you a knowledge exploration about the business industry that can be used practically for other business concerns. Sometimes, findings and results of a business research does not only provide solution to a given problem but also hinder the existence of possible potential problem.
PROVIDE HARD FACTS
It also provides hard facts which you can use as basis for planning, decision making, project implementation, monitoring and evaluation. It is less risky to make decisions based on proven facts than on mere instinct or projections.
Generally, research means to search more. It is a systematic objective and comprehensive investigation of a certain phenomenon that can be acquired by a scientific data gathering, in-depth analysis, and concise interpretation of facts pertaining to the phenomenon. It is commonly used for business for the purpose of obtaining competitive advantage. Here are some of the functions of business research:
CORRECTS PERCEPTIONS
A business research corrects perceptions and instincts that were derived from some unusual scenarios, events or sometimes hearsays. Results derived from research expand your know-how about the details and facts concerning a certain business issue or problem.
GATHERS INFORMATION
It helps in gathering information on subjects or phenomena that is unknown to the company or has little knowledge about. Business research will open possible sources of relevant information and explore this information to show clearly its relation to the business problem or objective. Sometimes, there is information which you used to ignore but proven by means of business research to have big impact on the business operation.
VALIDATE CONCEPTS AND METHODS
Business research also develops and evaluates concepts, practices and theories. Through its findings, you can validate some theories if they are still applicable to adopt in your business in our recent time. It also helps in the development and evaluation of current methods being used that test concepts, practices and theories. Knowing this information will help you create or try new business methods that will be more suitable to your kind of operation.
OBTAIN PRACTICAL KNOWLEDGE
Conducting business research will give you a knowledge exploration about the business industry that can be used practically for other business concerns. Sometimes, findings and results of a business research does not only provide solution to a given problem but also hinder the existence of possible potential problem.
PROVIDE HARD FACTS
It also provides hard facts which you can use as basis for planning, decision making, project implementation, monitoring and evaluation. It is less risky to make decisions based on proven facts than on mere instinct or projections.
What motivates people to buy particular products?
A lot of things are being considered before a consumer decides to purchase a particular product. These factors can be social, economic, cultural or physical. There are also cases wherein we see a person who will buy such product out of impulse or sometimes, hear him say that he bought the product without any reason at all. Of course there is a reason why you bought a certain commodity. Subconsciously, there is a particular driving force that motivates a person to do the purchase. Here are some possible factors that motivate people to buy particular product:
BASIC NEED
Many individuals do the purchase out of need. It is very common for a person to satisfy what he wants. If you can still remember the Maslows' Hierarchy of Needs, every individual will do his own way to get what he wants in order to get satisfied. A good example is a hungry person who will be more motivated to buy food than perfume just to satisfy his empty stomach.
PRICE OF A COMMODITY
Price is also a good motivator that's the reason why a lot of marketing people works on their pricing strategy just to attract buyers to patronize their offered products. People, particularly those with limited purchasing power go after commodities with reasonable prices than expensive ones.
PRODUCT FEATURES
There are buyers who are very particular on what the product can offer in terms of features. Practical buyers go after multiple-function items while luxury buyers go after special unique product features. People are motivated more on how the product can be useful to them regardless of its price.
BUYING CAPACITY
People with high purchasing power buy more often than people who have limited budget. An individual who finds the product attractive but his money can't afford to buy it will often resort to a decision of not buying it unlike a rich person who sometimes buys products even he really doesn't need it.
FASHION OR TREND
There are buyers who are motivated to purchase a particular product because everyone does. Products that are in current fashion or trend can attract more buyers than other products that are out of style.
CUSTOMS AND BELIEFS
This can also be a driving force that can motivate a person to buy a particular product. Individual sometimes buy a product out of tradition, customs or beliefs. For example, a new mother will be motivated to buy baby products based on her mother's tips because it was already proven effective and convenient to use rather than experimenting on new products that were not yet tested.
BASIC NEED
Many individuals do the purchase out of need. It is very common for a person to satisfy what he wants. If you can still remember the Maslows' Hierarchy of Needs, every individual will do his own way to get what he wants in order to get satisfied. A good example is a hungry person who will be more motivated to buy food than perfume just to satisfy his empty stomach.
PRICE OF A COMMODITY
Price is also a good motivator that's the reason why a lot of marketing people works on their pricing strategy just to attract buyers to patronize their offered products. People, particularly those with limited purchasing power go after commodities with reasonable prices than expensive ones.
PRODUCT FEATURES
There are buyers who are very particular on what the product can offer in terms of features. Practical buyers go after multiple-function items while luxury buyers go after special unique product features. People are motivated more on how the product can be useful to them regardless of its price.
BUYING CAPACITY
People with high purchasing power buy more often than people who have limited budget. An individual who finds the product attractive but his money can't afford to buy it will often resort to a decision of not buying it unlike a rich person who sometimes buys products even he really doesn't need it.
FASHION OR TREND
There are buyers who are motivated to purchase a particular product because everyone does. Products that are in current fashion or trend can attract more buyers than other products that are out of style.
CUSTOMS AND BELIEFS
This can also be a driving force that can motivate a person to buy a particular product. Individual sometimes buy a product out of tradition, customs or beliefs. For example, a new mother will be motivated to buy baby products based on her mother's tips because it was already proven effective and convenient to use rather than experimenting on new products that were not yet tested.
Human resources management explained
Managers are mostly concern on fundamental elements that makes up a business. One of these is human resources. Managing human resources is considered a strategic and logical approach of managing the company's most valued assets the workers. For it is the human resources who individually and collectively contribute to the attainment of the company objectives.
Human Resource Management (HRM) is based on strategic techniques developed to enhance the worker motivation and performance giving more focus on improving or increasing the quality of work life, productivity, satisfaction and development of workers, as well as their readiness for change. Here are some key areas of human resource management:
ORGANIZATION/JOB DESIGN
Strategic planning exercises and job evaluation studies are the most commonly used tools that focus on defining how tasks, authority and systems will be organized and integrated across the company units and in individual worker's job.
HUMAN RESOURCE PLANNING
It is the task of HRM to determine the company's major manpower needs, strategies and philosophy. It also plays a major role in other organization activities like succession, planning, promotions and even the growth of the enterprise.
SELECTION AND STAFFING
Matching people, their career needs and capabilities with jobs and career paths is the focus of HRM in this key area. It makes sure that they can cope up with emerging globalization by creating an impact on the job markets like recruiting on the web, offer more job options and novel work arrangements.
PERSONNEL RESEARCH AND INFORMATION SYSTEMS
The focus of this key area is to assure a personnel information database and availability of integrated human resource information systems (HRIS). These can be used as basis for rewards and promotions, trainings and development, job postings and potential markets.
COMPENSATION AND BENEFITS
The most crucial task of HRM is centered on assuring compensation and benefits to be fair and consistent for this aims to attract and retain the best and the brightest workers. It also pursues to practice the principles of internal equity and external competitiveness.
EMPLOYEE RELATIONS
This is one most difficult and sensitive task of HRM. It mainly concerns on the union and labor relations, assuring healthy union organization relations. It offers employee assistance by providing them personal problem-solving and counseling. It also focuses on employee programs by improving quality of work situations through company socials and information bulletins.
TRAINING AND DEVELOPMENT
HRM identifies, assess, and plan workers' learning by helping them develop their key competencies such as knowledge, skills and attitudes which will enable them to perform current or future jobs.
ORGANIZATIONAL DEVELOPMENT
It also plays part in assuring healthy inter and intra unit relationships and help groups in initiating and managing change making HRM the new change managers or mentors.
Human Resource Management (HRM) is based on strategic techniques developed to enhance the worker motivation and performance giving more focus on improving or increasing the quality of work life, productivity, satisfaction and development of workers, as well as their readiness for change. Here are some key areas of human resource management:
ORGANIZATION/JOB DESIGN
Strategic planning exercises and job evaluation studies are the most commonly used tools that focus on defining how tasks, authority and systems will be organized and integrated across the company units and in individual worker's job.
HUMAN RESOURCE PLANNING
It is the task of HRM to determine the company's major manpower needs, strategies and philosophy. It also plays a major role in other organization activities like succession, planning, promotions and even the growth of the enterprise.
SELECTION AND STAFFING
Matching people, their career needs and capabilities with jobs and career paths is the focus of HRM in this key area. It makes sure that they can cope up with emerging globalization by creating an impact on the job markets like recruiting on the web, offer more job options and novel work arrangements.
PERSONNEL RESEARCH AND INFORMATION SYSTEMS
The focus of this key area is to assure a personnel information database and availability of integrated human resource information systems (HRIS). These can be used as basis for rewards and promotions, trainings and development, job postings and potential markets.
COMPENSATION AND BENEFITS
The most crucial task of HRM is centered on assuring compensation and benefits to be fair and consistent for this aims to attract and retain the best and the brightest workers. It also pursues to practice the principles of internal equity and external competitiveness.
EMPLOYEE RELATIONS
This is one most difficult and sensitive task of HRM. It mainly concerns on the union and labor relations, assuring healthy union organization relations. It offers employee assistance by providing them personal problem-solving and counseling. It also focuses on employee programs by improving quality of work situations through company socials and information bulletins.
TRAINING AND DEVELOPMENT
HRM identifies, assess, and plan workers' learning by helping them develop their key competencies such as knowledge, skills and attitudes which will enable them to perform current or future jobs.
ORGANIZATIONAL DEVELOPMENT
It also plays part in assuring healthy inter and intra unit relationships and help groups in initiating and managing change making HRM the new change managers or mentors.
Business strategy evaluation criteria
Every company is adopting a particular business strategy in order to ensure their position in the market competition. There are several business strategies you can choose from and each is promising a positive improvement in your business operation. But not all business strategies are suitable or fitted in your kind of business. A business strategy that resulted to a positive success in one company does not mean can do the same with the other company.
But how can an organization determine the effectiveness of their business strategy? Does earning positive profits enough to be used as measurement in evaluating a business strategy? I guess not, for a good and effective business strategy cannot be measured alone using profits as basis. It should also have the capability to make the organization's goals attainable. There are certain criteria to consider in evaluating a business strategy to ensure it works effectively on you. These are as follows:
SUITABILITY
A business strategy is said to be suitably effective if it enhance your competitive advantage. The main reason why we are coming out with business strategy is for us to gain improvement in our existing business practices. And for sure, this aims to increase the organization's competitive level or increase market share.
VALIDITY
Check the validity of your chosen business strategy by determining if the key in the outcome of your strategy is realistic. You can also validate its effectiveness by identifying and be aware of the risk involved in implementing the strategy.
CONSISTENCY
A good business strategy must display consistency in its outcomes. If it continuously showing positive results of improvement, then it is highly advisable to continue using or implementing it within your organization. But if not, better check for other options that will work better for you and your people.
FEASIBILITY
It should provide feasible results not only in terms of market share and profits but also total improvement of the organization's operation that will lead to the possible attainment of its company goals. Also take note that its feasibility must not lies alone within the boundaries of marketing or sales aspect but also to the whole business operation.
VULNERABILITY
Of course we knew the fact that nothing is sure in this changing world of business. It is very difficult to predict what will happen to some factors that can affect your business situation. Therefore, it is just right to consider the vulnerability of a business strategy during its evaluation. To test its vulnerability, determine if the existing business strategy has the capacity to accept the risk of failure. Does it offer measures that will be ready for these? For a good business strategy does not only provides a pleasant situation in times of success but also help the organization to cope-up easily in times of downfall.
But how can an organization determine the effectiveness of their business strategy? Does earning positive profits enough to be used as measurement in evaluating a business strategy? I guess not, for a good and effective business strategy cannot be measured alone using profits as basis. It should also have the capability to make the organization's goals attainable. There are certain criteria to consider in evaluating a business strategy to ensure it works effectively on you. These are as follows:
SUITABILITY
A business strategy is said to be suitably effective if it enhance your competitive advantage. The main reason why we are coming out with business strategy is for us to gain improvement in our existing business practices. And for sure, this aims to increase the organization's competitive level or increase market share.
VALIDITY
Check the validity of your chosen business strategy by determining if the key in the outcome of your strategy is realistic. You can also validate its effectiveness by identifying and be aware of the risk involved in implementing the strategy.
CONSISTENCY
A good business strategy must display consistency in its outcomes. If it continuously showing positive results of improvement, then it is highly advisable to continue using or implementing it within your organization. But if not, better check for other options that will work better for you and your people.
FEASIBILITY
It should provide feasible results not only in terms of market share and profits but also total improvement of the organization's operation that will lead to the possible attainment of its company goals. Also take note that its feasibility must not lies alone within the boundaries of marketing or sales aspect but also to the whole business operation.
VULNERABILITY
Of course we knew the fact that nothing is sure in this changing world of business. It is very difficult to predict what will happen to some factors that can affect your business situation. Therefore, it is just right to consider the vulnerability of a business strategy during its evaluation. To test its vulnerability, determine if the existing business strategy has the capacity to accept the risk of failure. Does it offer measures that will be ready for these? For a good business strategy does not only provides a pleasant situation in times of success but also help the organization to cope-up easily in times of downfall.
The primary determinants of a business strategy
Choosing a business strategy for your organization is one crucial decision to make for it can result to either success or failure. In formulating a business strategy, many factors need to be given emphasis. The main focus is to achieve a good match between the company's available internal skills, capabilities, and resources as well as giving considerations to all its relevant external factors. Here are the primary determinants of a business strategy:
MARKET STRENGTH
Determine its potential strength by analyzing its capability in terms of market opportunity, industry attractiveness and competitive forces. Every organization wishes to have a good chance in the business arena and adopting a certain business strategy elevates its hope to make that goal attainable.
INTERNAL ASSETS
Another determinant of a business strategy is the organization's available skills, capabilities and resources that will allow it to do best. A business strategy will work best if it matches the given internal assets of the organization.
REDUCE THREATS
It is but normal for a company to take extra awareness of its emerging threats that can affect its well being and performance. It is therefore but necessary for an organization to formulate a business strategy that will have the ability to reduce if not to eliminate these threats. In most cases, these business threat are not within the control of the company, therefore, business strategy must have adequate measures available that will help the organization in dealing with these.
VALUES, ASPIRATIONS AND VISION
Most likely, it is the senior executives who will play a vital role in the formulation of the design of strategy making their personal values, aspirations, and vision to be considered primary determinants of business strategy. Whatever kind of business strategy they finally decided to implement must be in accordance with their values, aspirations and vision in order to eliminate any possible conflict of interest.
EXTERNAL ENVIRONMENT
Although these are not within the company premises and jurisdiction, in most cases, these external environment can greatly affects the business operations and its condition in the business market. Such external forces like social, political, regulatory, ethical, and economic aspects must be given consideration during the formulation of a business strategy.
THE ORGANIZATION ITSELF
Its culture, core beliefs, and business philosophy are considered primary determinants of business strategy because failure to do so can result to unfavorable business environment, conflict and confusion within the company and unwillingness to cooperate on the part of employees.
MARKET STRENGTH
Determine its potential strength by analyzing its capability in terms of market opportunity, industry attractiveness and competitive forces. Every organization wishes to have a good chance in the business arena and adopting a certain business strategy elevates its hope to make that goal attainable.
INTERNAL ASSETS
Another determinant of a business strategy is the organization's available skills, capabilities and resources that will allow it to do best. A business strategy will work best if it matches the given internal assets of the organization.
REDUCE THREATS
It is but normal for a company to take extra awareness of its emerging threats that can affect its well being and performance. It is therefore but necessary for an organization to formulate a business strategy that will have the ability to reduce if not to eliminate these threats. In most cases, these business threat are not within the control of the company, therefore, business strategy must have adequate measures available that will help the organization in dealing with these.
VALUES, ASPIRATIONS AND VISION
Most likely, it is the senior executives who will play a vital role in the formulation of the design of strategy making their personal values, aspirations, and vision to be considered primary determinants of business strategy. Whatever kind of business strategy they finally decided to implement must be in accordance with their values, aspirations and vision in order to eliminate any possible conflict of interest.
EXTERNAL ENVIRONMENT
Although these are not within the company premises and jurisdiction, in most cases, these external environment can greatly affects the business operations and its condition in the business market. Such external forces like social, political, regulatory, ethical, and economic aspects must be given consideration during the formulation of a business strategy.
THE ORGANIZATION ITSELF
Its culture, core beliefs, and business philosophy are considered primary determinants of business strategy because failure to do so can result to unfavorable business environment, conflict and confusion within the company and unwillingness to cooperate on the part of employees.
What are the market entry barriers in business?
As new entrants to a market, most likely, it requires the company to create new production capacity, desire to establish a secure place in the market, and acquire substantial resources to be able to compete. The seriousness of its effect as competitive threat of entry will depend on barriers to entry and the expected reactions of existing firms to new entry. A barrier to entry exists whenever it is difficult for a newcomer to break into the market scene. But what are these barriers? Here are some factors that can be source of market entry barriers in business:
ECONOMIES OF SCALE
The presence of important scale economies hinders the entry because it forced potential entrant to enter the market on a large scale basis or accept a cost disadvantage. Consequences of this decision will result to high cost of investment and high risk involved or possible lower profitability.
EXISTENCE OF LEARNING AND EXPERIENCE CURVE EFFECTS
New entrants were faced with dilemma in competing with older, experienced and established company. Their accumulated know-how serves as their advantage in achieving lower unit cost of production making it difficult for new entrant to compete on the basis of price.
BRAND PREFERENCES AND CUSTOMER LOYALTY
It takes substantial time and money for new entrant to build its own clientele and overcome customer loyalty to rival sellers. Because commonly, products of rival sellers are differentiated that made buyers developed some degree of attachment to existing brands. It requires new entrants to invest more money on advertising and sales promotion that will increase its preliminary costs.
CAPITAL REQUIREMENTS
It will be financially difficult for new entrants when incumbent firms have substantial financial resources for defense against new entry. For the lower your investment, the less chances you can enter the market. The larger the investments of existing players, the more limited are the pool of potential entrants. Enough capital requirements is obviously required to finance manufacturing plants and equipments, inventories and customer credits, introductory advertising and sales promotion in order for new entrant to establish clientele and cover-up start-up losses.
COST DISADVANTAGES
New entrants will experienced cost disadvantages as compared to existing firms. This is true on cases wherein existing firms may have easier access to the best and cheapest raw materials, possession of patents and proprietary technology, availability of learned and experienced manpower and favorable locations.
ACCESS TO DISTRIBUTION CHANNELS
Potential entrant may face barriers in gaining adequate distribution access because some distributors may be reluctant to take on products that is not yet known to buyers or lacks buyers' recognition.
GOVERNMENT ACTIONS AND POLICIES
It can be a barrier on cases when government decided to ban entry or limit the players in a certain business industry. This can be controlled by limiting the issuance of business permits and licenses.
ECONOMIES OF SCALE
The presence of important scale economies hinders the entry because it forced potential entrant to enter the market on a large scale basis or accept a cost disadvantage. Consequences of this decision will result to high cost of investment and high risk involved or possible lower profitability.
EXISTENCE OF LEARNING AND EXPERIENCE CURVE EFFECTS
New entrants were faced with dilemma in competing with older, experienced and established company. Their accumulated know-how serves as their advantage in achieving lower unit cost of production making it difficult for new entrant to compete on the basis of price.
BRAND PREFERENCES AND CUSTOMER LOYALTY
It takes substantial time and money for new entrant to build its own clientele and overcome customer loyalty to rival sellers. Because commonly, products of rival sellers are differentiated that made buyers developed some degree of attachment to existing brands. It requires new entrants to invest more money on advertising and sales promotion that will increase its preliminary costs.
CAPITAL REQUIREMENTS
It will be financially difficult for new entrants when incumbent firms have substantial financial resources for defense against new entry. For the lower your investment, the less chances you can enter the market. The larger the investments of existing players, the more limited are the pool of potential entrants. Enough capital requirements is obviously required to finance manufacturing plants and equipments, inventories and customer credits, introductory advertising and sales promotion in order for new entrant to establish clientele and cover-up start-up losses.
COST DISADVANTAGES
New entrants will experienced cost disadvantages as compared to existing firms. This is true on cases wherein existing firms may have easier access to the best and cheapest raw materials, possession of patents and proprietary technology, availability of learned and experienced manpower and favorable locations.
ACCESS TO DISTRIBUTION CHANNELS
Potential entrant may face barriers in gaining adequate distribution access because some distributors may be reluctant to take on products that is not yet known to buyers or lacks buyers' recognition.
GOVERNMENT ACTIONS AND POLICIES
It can be a barrier on cases when government decided to ban entry or limit the players in a certain business industry. This can be controlled by limiting the issuance of business permits and licenses.
The basics of operations management
Almost every business entity needs to respond to the changes in the business environment to remain competitive. A commitment in developing strategies that will respond to the changing needs of customers and the major changes in its external environment. The call for an effective operations management is a must.
Considered as the backbone of any business, operations management is the prime implementer of strategies developed by the top executives. Taking its role in the strategic business planning by improving its core operational competencies that can be an advantage because rival companies will have difficulty copying.
The three major competitive strategies that most commonly used in operations management are cost leadership, differentiation and market focus. Cost leadership's main concern is the development and production of products and services at low cost; Differentiation is the ability of the company to distinguish its product and services from competitors; and market focus emphasizes concentration on the delivery of goods and services to respond to a specific market segment. These corporate strategies were integrated within operations management for the purpose of attaining the organization's set goals.
Operations management is directly involved in quality management as well as with the design and development of products and services by understanding the needs of customers, identifying the level of customer satisfaction and using this derived information in the improvement of its products and services. It focuses on utilizing the available technology to respond as to what the customer wants and increasing productivity.
It is also concern in performance measurement and human resource management wherein it is involved in the development of employees by offering skill education and training, provides motivation and recognition, and promotes teamwork. It also encourages continuous learning not only from among co-employees and customers but also even competitors.
A need to see the "big picture" across hierarchical organizational and functional boundaries is required in operations management because it is concerned with the overall management of resources, the distribution of goods and services to customers. It views the whole business as a total system where activities are coordinated both horizontally and vertically throughout the organization ensuring that business operations are efficient and effective.
Operations management is very broad in nature that it almost covers all major aspects of a business. Its other scope includes forecasting and capacity planning, location and distribution, technology automation, process design and facility layout, materials and inventory management, production planning and scheduling, operations scheduling and project management.
Considered as the backbone of any business, operations management is the prime implementer of strategies developed by the top executives. Taking its role in the strategic business planning by improving its core operational competencies that can be an advantage because rival companies will have difficulty copying.
The three major competitive strategies that most commonly used in operations management are cost leadership, differentiation and market focus. Cost leadership's main concern is the development and production of products and services at low cost; Differentiation is the ability of the company to distinguish its product and services from competitors; and market focus emphasizes concentration on the delivery of goods and services to respond to a specific market segment. These corporate strategies were integrated within operations management for the purpose of attaining the organization's set goals.
Operations management is directly involved in quality management as well as with the design and development of products and services by understanding the needs of customers, identifying the level of customer satisfaction and using this derived information in the improvement of its products and services. It focuses on utilizing the available technology to respond as to what the customer wants and increasing productivity.
It is also concern in performance measurement and human resource management wherein it is involved in the development of employees by offering skill education and training, provides motivation and recognition, and promotes teamwork. It also encourages continuous learning not only from among co-employees and customers but also even competitors.
A need to see the "big picture" across hierarchical organizational and functional boundaries is required in operations management because it is concerned with the overall management of resources, the distribution of goods and services to customers. It views the whole business as a total system where activities are coordinated both horizontally and vertically throughout the organization ensuring that business operations are efficient and effective.
Operations management is very broad in nature that it almost covers all major aspects of a business. Its other scope includes forecasting and capacity planning, location and distribution, technology automation, process design and facility layout, materials and inventory management, production planning and scheduling, operations scheduling and project management.
Friday, February 13, 2009
Effective sales forecasting tips
Forecasting your sales is a brilliant move in business, because it gives you an advance window of how your business will run in the next couple of years. But doing a forecast is not just simply a guessing game. It requires a strong basis on how you will derive your sales figures. Diligent research and analysis is a must before you could come up with very realistic projections.
A majority of companies gain benefit from a sales forecast. It helps them to manage and monitor carefully their sales standing. It helps them in making pricing decisions and in assessing future capacity requirements. Although it is a fact that forecasted data are totally not considered precise and accurate, it still gives them an idea on deciding what type of marketing strategy to adopt in order to stay on top of the line or meet their desired goal.
It is true that when we forecast, we are playing with probabilities, chances of being right or committing an error. The lower the error ratio of our forecast, the better the forecast is and the higher its percentage of error, the higher risk of having a very predictable sales output.
There are factors to consider before coming up with a sales forecast. Factors that greatly affect our sales can be categorized as dependent and independent factors. Dependent factors are those that can greatly affect your sales, but can be controlled by the management. While independent factors are those that are not within the company's jurisdiction but can create big difference on the outcome of sales. Examples of dependent factors are price of the commodity or service, cost of producing the product and inventory level. While economic and political situations, change in consumer preferences and competition level are examples of independent factors.
There are several methods of doing a sales forecast. These were categorized into methods relying on judgment and methods relying on quantitative data. The Delphi technique, prediction market, game theory, simulated interaction and judgmental bootstrapping are methods that makes use of pure judgment or based on intuition or qualitative data. Results from these methods are considered as educated guess.
While the causal methods, moving averages, exponential smoothing, regression and time series analysis are quantitative methods of doing a sales forecast. Each of these methods requires the use of historical sales data or current data from a test market. Results from these methods were derived from a systematic procedure of analysis.
Either of these methods can be adopted in creating your sales forecast. Although a combined methods can improve its level of accuracy and reduce the likelihood of large percentage of errors, but it is still not considered one hundred percent accurate.
A majority of companies gain benefit from a sales forecast. It helps them to manage and monitor carefully their sales standing. It helps them in making pricing decisions and in assessing future capacity requirements. Although it is a fact that forecasted data are totally not considered precise and accurate, it still gives them an idea on deciding what type of marketing strategy to adopt in order to stay on top of the line or meet their desired goal.
It is true that when we forecast, we are playing with probabilities, chances of being right or committing an error. The lower the error ratio of our forecast, the better the forecast is and the higher its percentage of error, the higher risk of having a very predictable sales output.
There are factors to consider before coming up with a sales forecast. Factors that greatly affect our sales can be categorized as dependent and independent factors. Dependent factors are those that can greatly affect your sales, but can be controlled by the management. While independent factors are those that are not within the company's jurisdiction but can create big difference on the outcome of sales. Examples of dependent factors are price of the commodity or service, cost of producing the product and inventory level. While economic and political situations, change in consumer preferences and competition level are examples of independent factors.
There are several methods of doing a sales forecast. These were categorized into methods relying on judgment and methods relying on quantitative data. The Delphi technique, prediction market, game theory, simulated interaction and judgmental bootstrapping are methods that makes use of pure judgment or based on intuition or qualitative data. Results from these methods are considered as educated guess.
While the causal methods, moving averages, exponential smoothing, regression and time series analysis are quantitative methods of doing a sales forecast. Each of these methods requires the use of historical sales data or current data from a test market. Results from these methods were derived from a systematic procedure of analysis.
Either of these methods can be adopted in creating your sales forecast. Although a combined methods can improve its level of accuracy and reduce the likelihood of large percentage of errors, but it is still not considered one hundred percent accurate.
Tuesday, February 10, 2009
Ideas for earning extra money in your spare time
Today's time requires extra effort for work in order for us to survive global crisis. A lot of companies are into mass layoffs or manpower reduction as part of their cost cutting scheme. Others implement reduction of working time thereby resulting to employees more spare time but less income.
Maximization of one's skills and time is the name of the game. Earning income in your free time is the wisest idea you could adopt to cope up with continuously increasing high standard of living. Here are some ideas on how to earn extra money in your spare time:
ACCEPT TUTORIAL SERVICES.
This is one great way on how to earn additional income. Offering tutorial services in your specific field of specialization or gifted talent will help you improve not only on financial aspect but will also enhance more your acquired skills, knowledge and talent. You can start offering these services to your relatives, friends and neighborhood or you can post an ad. This will not also require high operating cost for you could conduct it within your own home or just visit your tutor-students in their respective houses.
TAKE SOME PICTURES.
With the use of digital camera, taking photos is much easier and convenient. Taking some interesting photo subjects like sceneries, animals, and unusual scenes, unique post of people or events can be considered your work of arts that can be submitted and sold online. There are some buyers online who can have interest on your photos and use them for their own publication or sites.
CREATE SOME HOME CRAFTS.
If you have inclination in doing home crafts like cross stitching, embroidery, crocheting or other useful crafts, you could sell it directly to other people or offer them on other gift shops and stores. There are people who are looking for beautifully crafted things that can be given as souvenirs or gift items. You can also sell them online with your own website.
DO SOME GARDENING WORKS.
A person gifted with a "green thumb" can do some gardening works with fee. Or you can do some bonsai arrangements, orchids and cactus planted on decorated pots and can be sold to your neighborhood, friends or other people. You could also create your own vegetable garden and sell the harvested fruits.
ACCEPT DIGITAL IMAGING WORKS.
A lot of software is now available online with build-in templates. You can accept digital imaging works or some photo and logo lay-outing. This will not only earn you some extra money but will also help you spend your spare time on a more enjoyable thing.
APPLY FOR ONLINE PART-TIME JOBS.
Try your luck on some home jobs being offered online like writing valuable blog or articles, paid to click and paid to read emails, taking online surveys and networking. Just make sure to choose the site that is eligible and trustworthy for there are lots of online jobs that are considered fraud and scams.
Maximization of one's skills and time is the name of the game. Earning income in your free time is the wisest idea you could adopt to cope up with continuously increasing high standard of living. Here are some ideas on how to earn extra money in your spare time:
ACCEPT TUTORIAL SERVICES.
This is one great way on how to earn additional income. Offering tutorial services in your specific field of specialization or gifted talent will help you improve not only on financial aspect but will also enhance more your acquired skills, knowledge and talent. You can start offering these services to your relatives, friends and neighborhood or you can post an ad. This will not also require high operating cost for you could conduct it within your own home or just visit your tutor-students in their respective houses.
TAKE SOME PICTURES.
With the use of digital camera, taking photos is much easier and convenient. Taking some interesting photo subjects like sceneries, animals, and unusual scenes, unique post of people or events can be considered your work of arts that can be submitted and sold online. There are some buyers online who can have interest on your photos and use them for their own publication or sites.
CREATE SOME HOME CRAFTS.
If you have inclination in doing home crafts like cross stitching, embroidery, crocheting or other useful crafts, you could sell it directly to other people or offer them on other gift shops and stores. There are people who are looking for beautifully crafted things that can be given as souvenirs or gift items. You can also sell them online with your own website.
DO SOME GARDENING WORKS.
A person gifted with a "green thumb" can do some gardening works with fee. Or you can do some bonsai arrangements, orchids and cactus planted on decorated pots and can be sold to your neighborhood, friends or other people. You could also create your own vegetable garden and sell the harvested fruits.
ACCEPT DIGITAL IMAGING WORKS.
A lot of software is now available online with build-in templates. You can accept digital imaging works or some photo and logo lay-outing. This will not only earn you some extra money but will also help you spend your spare time on a more enjoyable thing.
APPLY FOR ONLINE PART-TIME JOBS.
Try your luck on some home jobs being offered online like writing valuable blog or articles, paid to click and paid to read emails, taking online surveys and networking. Just make sure to choose the site that is eligible and trustworthy for there are lots of online jobs that are considered fraud and scams.
Tips on how to earn a living in times of global layoffs
Due to global economic crisis, layoffs are massive that leads to an increase in global unemployment rate. Hunger and crimes are starting to be experienced by most downturn countries. People must earn for their living in order to survive. But in times of global layoffs, is there still chance for them to acquire their means of income? The answer is YES! Here's how:
ADOPT ENTREPRENEURSHIP.
No need to look for employer to hire you but be your own boss. Create your own business. Invest into product or service that you knew well and try to turn it into something big someday.
SELL YOUR TALENTS.
For people who don't have enough financial capital to invest into new business, start a personal business by selling your talent. Each individual is born unique and gifted with talent or set of talents. All it needs is to be discovered and fully develop in order to utilize it well. Creating new products or service out from your very own talent is one way to earn income for your living.
If you are gifted with writing skills, try to use your skill and compose poems, create a novel or write an article and have it published. There are printing and online publishers looking for valuable writings that can be published online or through printed materials like books, magazines or journals.
If you are gifted with skills on art, do some paintings on canvass or create your own style of greeting cards and bookmarks. Although there are varieties of ready-made templates online, there are still people who appreciate hand-made arts.
You can also do some photography service if you have enough skills in taking right angles of shots. You can start with people you knew like friends, relatives or family. Or you can also take shots for unique pictures and can sell it online.
Those who are gifted with cooking skills can do some catering or render cooking services for special occasions. You can also start a small food delivery business with only minimal capital. Create a list of menu and take orders from nearby houses or offices and have it delivered. Just make sure not to entertain credits for it will bring your business to early bankruptcy.
If you have the knowledge in automotive or electronic repairs, you can start offering services in your neighborhood, friends, and relatives.
SELL YOUR INTELLECT
If you are good in a certain subject like Mathematics, Science, English, and computer, or know how to play musical instruments, you can offer tutorial lessons. You can start in your house with only few chairs, a table and a board. Or you can personally visit your tutor's house for the teaching session.
CREATE VALUABLE AND INTERESTING HOBBIES.
People who have know-how in crocheting, embroidery, cross-stitching, framings, scrap books, and other crafts, can make their own designs and sell it or offer it to some stores. And if you are creative enough, you can do recycling and sell your finished products.
FULLY UTILIZE YOUR AVAILABLE ITEMS.
If you have computer or play station, you can have it rented. Or if you have huge collection of video cds and books, you can offer rental service. Just make sure you charge deposit fee in case these items were broken or damaged.
ADOPT ENTREPRENEURSHIP.
No need to look for employer to hire you but be your own boss. Create your own business. Invest into product or service that you knew well and try to turn it into something big someday.
SELL YOUR TALENTS.
For people who don't have enough financial capital to invest into new business, start a personal business by selling your talent. Each individual is born unique and gifted with talent or set of talents. All it needs is to be discovered and fully develop in order to utilize it well. Creating new products or service out from your very own talent is one way to earn income for your living.
If you are gifted with writing skills, try to use your skill and compose poems, create a novel or write an article and have it published. There are printing and online publishers looking for valuable writings that can be published online or through printed materials like books, magazines or journals.
If you are gifted with skills on art, do some paintings on canvass or create your own style of greeting cards and bookmarks. Although there are varieties of ready-made templates online, there are still people who appreciate hand-made arts.
You can also do some photography service if you have enough skills in taking right angles of shots. You can start with people you knew like friends, relatives or family. Or you can also take shots for unique pictures and can sell it online.
Those who are gifted with cooking skills can do some catering or render cooking services for special occasions. You can also start a small food delivery business with only minimal capital. Create a list of menu and take orders from nearby houses or offices and have it delivered. Just make sure not to entertain credits for it will bring your business to early bankruptcy.
If you have the knowledge in automotive or electronic repairs, you can start offering services in your neighborhood, friends, and relatives.
SELL YOUR INTELLECT
If you are good in a certain subject like Mathematics, Science, English, and computer, or know how to play musical instruments, you can offer tutorial lessons. You can start in your house with only few chairs, a table and a board. Or you can personally visit your tutor's house for the teaching session.
CREATE VALUABLE AND INTERESTING HOBBIES.
People who have know-how in crocheting, embroidery, cross-stitching, framings, scrap books, and other crafts, can make their own designs and sell it or offer it to some stores. And if you are creative enough, you can do recycling and sell your finished products.
FULLY UTILIZE YOUR AVAILABLE ITEMS.
If you have computer or play station, you can have it rented. Or if you have huge collection of video cds and books, you can offer rental service. Just make sure you charge deposit fee in case these items were broken or damaged.
What is a business plan?
A business plan is a formal projection statement that aims to meet set of company goals. Usually these goals are mostly focused on financial inputs and outputs of the company. It is frequently done for new and existing businesses.
For new business, it is like a feasibility study, but its main focus is centered on how a company will perform in the coming days or years as far as cash is concern. While for existing business, it is sort of a plan on how to fully utilize their existing capital to reach desired profit goal or rate of return.
This is most commonly prepared by top executives or key personnel within the company who have the full knowledge in their respective departments and have it executed strictly on business operations. It is a common practice that it is created before the existing year end because it is intended for the next couple of years of business operation.
Having a business plan is favorable for a company because it will serve as their guide on how to run the business operations as far as budgeting is concern. Meeting the targeted goals in the business plan is considered one hundred percent efficiency and exceeding the quota is excellent.
Due to the frequent fluctuations in the business industry, three to five years projection is considered the ideal period covered in a business plan. In excess of it is observed to have bigger chance of errors in terms of allotted expenses or projected demands.
Business plans includes the mission of the company that consists of both short and long term goals; business strategy that will make its goal achievable; its existing strategic relationships; and the SWOT analysis strength, weaknesses, opportunities and threats.
Some key elements that are showcased in a business plan are the demand/market projection, available resources, financial sources, projected financial statements, manpower requirements, equipments and utilities expenses, direct and indirect materials and overhead expenses.
Basis for the projection are existing data and will be projected using a certain percentage increase per year. These projected percentages of increase are set by the members of the panel involved in the business plan. Mostly, it is derived from industry records or from ratios of past data.
It is truly a fact that business plans are not accurate as compared to actual business results. A mean squared error of 10% or less is still acceptable but higher than 10% is considered critical because usually, projected percentage of increase only varies from 5 to 15 percent.
For new business, it is like a feasibility study, but its main focus is centered on how a company will perform in the coming days or years as far as cash is concern. While for existing business, it is sort of a plan on how to fully utilize their existing capital to reach desired profit goal or rate of return.
This is most commonly prepared by top executives or key personnel within the company who have the full knowledge in their respective departments and have it executed strictly on business operations. It is a common practice that it is created before the existing year end because it is intended for the next couple of years of business operation.
Having a business plan is favorable for a company because it will serve as their guide on how to run the business operations as far as budgeting is concern. Meeting the targeted goals in the business plan is considered one hundred percent efficiency and exceeding the quota is excellent.
Due to the frequent fluctuations in the business industry, three to five years projection is considered the ideal period covered in a business plan. In excess of it is observed to have bigger chance of errors in terms of allotted expenses or projected demands.
Business plans includes the mission of the company that consists of both short and long term goals; business strategy that will make its goal achievable; its existing strategic relationships; and the SWOT analysis strength, weaknesses, opportunities and threats.
Some key elements that are showcased in a business plan are the demand/market projection, available resources, financial sources, projected financial statements, manpower requirements, equipments and utilities expenses, direct and indirect materials and overhead expenses.
Basis for the projection are existing data and will be projected using a certain percentage increase per year. These projected percentages of increase are set by the members of the panel involved in the business plan. Mostly, it is derived from industry records or from ratios of past data.
It is truly a fact that business plans are not accurate as compared to actual business results. A mean squared error of 10% or less is still acceptable but higher than 10% is considered critical because usually, projected percentage of increase only varies from 5 to 15 percent.
How to manage stress in the workplace?
Working in stressful surroundings seems to result traumatic experience to anybody. According to some medical specialist, it can also be possible cause of body fatigue and other illnesses. Aside from health deterioration, allowing work stress to beat you up will possibly affect not only your mood at home but also your relationship with family and friends. Here are some ways on how to minimize work stress:
CREATE A FRIENDLY WORKING ENVIRONMENT.
Make friends with your co-employees in order to make a good working environment. It will not only gain a better personal image but it can also positively result to an enjoyable working experience. Remember, no man is an island. Who might know, they can also be of help in times you need assistance in your job.
TREAT EACH WORK LOAD AS A PERSONAL CHALLENGE.
Practice self-motivation. Always remember that if others can do it, you can also do it better. In every task or work assignment given to you, think positively and take it as a personal challenge. That if you can overcome that challenge, it will earn you another experience that will elevate your professional know-how.
TAKE A FEW MINUTES BREAK.
Taking a very quick break at work like staring at green scenery pictures and plants, squeezing a soft ball or roll a rounded object on the floor with your feet can help minimize stress. Slight exercise with your muscles will eliminate its firmness that causes extreme abnormal flow of blood through our veins. Relaxing our muscles and senses plus breathing exercises will calm us and bring back the normality in our body system that will result to a more productive attitude.
LISTENING TO FAVORITE MUSIC.
In some companies, employees are allowed to work with music on. This is for the purpose of relieving stress that can be easily acquired from work pressures. Just make sure to control the volume in such a way that it is not too loud to disturb the concentration of other employees.
HAVE TIME FOR ENJOYMENT AFTER WORK.
It is a healthy habit to relax after a stressful work. Singing, dancing and yoga exercise are some of the best options to minimize stress. It will not only help you improve physically but also eliminate any negative mental traits and emotional trauma that can lead to total burnout.
VISIT THE CHURCH AND PRAY.
This is one habit that we should always do. Visiting the church after work to pray will help us eliminate all the negative feelings and thoughts. It will give us a truly relaxing mood not only physically, emotionally and mentally but also spiritually.
CREATE A FRIENDLY WORKING ENVIRONMENT.
Make friends with your co-employees in order to make a good working environment. It will not only gain a better personal image but it can also positively result to an enjoyable working experience. Remember, no man is an island. Who might know, they can also be of help in times you need assistance in your job.
TREAT EACH WORK LOAD AS A PERSONAL CHALLENGE.
Practice self-motivation. Always remember that if others can do it, you can also do it better. In every task or work assignment given to you, think positively and take it as a personal challenge. That if you can overcome that challenge, it will earn you another experience that will elevate your professional know-how.
TAKE A FEW MINUTES BREAK.
Taking a very quick break at work like staring at green scenery pictures and plants, squeezing a soft ball or roll a rounded object on the floor with your feet can help minimize stress. Slight exercise with your muscles will eliminate its firmness that causes extreme abnormal flow of blood through our veins. Relaxing our muscles and senses plus breathing exercises will calm us and bring back the normality in our body system that will result to a more productive attitude.
LISTENING TO FAVORITE MUSIC.
In some companies, employees are allowed to work with music on. This is for the purpose of relieving stress that can be easily acquired from work pressures. Just make sure to control the volume in such a way that it is not too loud to disturb the concentration of other employees.
HAVE TIME FOR ENJOYMENT AFTER WORK.
It is a healthy habit to relax after a stressful work. Singing, dancing and yoga exercise are some of the best options to minimize stress. It will not only help you improve physically but also eliminate any negative mental traits and emotional trauma that can lead to total burnout.
VISIT THE CHURCH AND PRAY.
This is one habit that we should always do. Visiting the church after work to pray will help us eliminate all the negative feelings and thoughts. It will give us a truly relaxing mood not only physically, emotionally and mentally but also spiritually.
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