February 26, 2017

Harvard Businness Review - 10 Must Reads 2015 - Information and Interesting Points




This collection includes:

"Beware the Next Big Thing," by Julian Birkinshaw;

"The Capitalist's Dilemma," by Clayton M. Christensen and Derek Van Bever;

"The Focused Leader," by Daniel Goleman;

"The Big Lie of Strategic Planning," by Roger L. Martin;

"Contextual Intelligence," by Tarun Khanna;

"How Netflix Reinvented HR," by Patty McCord;

"Blue Ocean Leadership," by W. Chan Kim and Renee Mauborgne;

"The Ultimate Marketing Machine," by Marc de Swaan Arons, Frank van den Driest, and Keith Weed;

"Your Scarcest Resource," by Michael Mankins, Chris Brahm, and Gregory Caimi;

"How Google Sold Its Engineers on Management," by David A. Garvin;

"21st-Century Talent Spotting," by Claudio Fernandez-Araoz.


https://hbr.org/product/hbr-s-10-must-reads-2015-the-definitive-management-ideas-of-the-year-from-harvard-business-review-with-bonus-article-the-focused-leader-the-mckinsey-award-winner-by-daniel-goleman-hbr-s-10-must-reads/15037-PBK-ENG

February 24, 2017

Marketing Research, Market Research and Market Intelligence



Marketing Intelligence - Introduction


If an individual or firm has an interesting product or service idea for offering to market, how will they know whether people like it and want to buy it? If they are willing to buy it, what price are they willing to pay? What quantity they will buy? Marketing research, an activity of marketing, will provide answers to these questions. Marketing research is the process of collecting, analyzing, and reporting marketing information that can be used to answer questions or solve problems so as to improve a company’s top line, sales revenue.  Marketing research includes a wide range of activities of enquiry related to marketing questions. Market research is a narrower activity. Market research is the process of researching a specific market to determine its size and trends.



The many marketing questions that marketing research can help to answers include the issues related to:

Developing product ideas and designs
Determining if there is demand for a product to decide whether or not to produce it
Identifying market segments for a  product
Making pricing decisions
Evaluating packaging types
Evaluating in-store promotions
Measuring the satisfaction of customers
Measuring the satisfaction of channel partners
Evaluating the effectiveness of the Web site
Testing the effectiveness of ads and their placement
Making marketing channel decisions

Market Intelligence


Market intelligence is also an important marketing research activity and is often referred to as competitive intelligence. Marketing research is generally commissioned to solve a specific marketing problem at a specific point in time as a project. Market intelligence involves gathering information on a regular, ongoing basis to stay in touch with what’s happening in the marketplace related to company's offering.


Marketing Research and Market Demand Forecasting


http://catalog.flatworldknowledge.com/bookhub/reader/2030?e=fwk-133234-ch10

February 23, 2017

Marketing Research and Market Demand Forecasting


Marketing Management Revision Article Series





Marketing Information System


Every marketing department has to put in place marketing information system.

Marketing information system consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely and accurate information to marketing decision makers. (Kotler)

Internal records on orders, sales, prices, inventory levels, receivables, payables etc. are part of the marketing information system and they have to be organized for providing information to marketing personnel. The internal records provide information about the actual results.


Marketing Intelligence System


Marketing intelligence system is a set of procedures and sources used by marketers to obtain every day information about pertinent developments in the marketing environment (Kotler)

Marketing intelligence focuses on current happenings.


Marketing Research System


Marketing research is formal study of future opportunities and current problems.

Kotler's definition of marketing research:
"Marketing research is the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company.

Kotler emphasised market research, research into a particular market is only one component of marketing research activities. Kotler gave as illustration of marketing research product-preference test, sales forecast by region and advertising evaluation.

John Tanner and Mary Anne Raymond (chap. 10) list more applications of marketing research.


Developing product ideas and designs
Determining if there is demand for a product
Identifying market segments for the product
Pricing preferences of customers
Evaluating packaging types
Marketing channel preferences
Evaluating in-store promotions
Measuring the satisfaction of  customers
Evaluating the effectiveness of the Web site
Testing the effectiveness of ads and their placement
Measuring the satisfaction of  channel partners



The Marketing Research Process


Five steps are involved in marketing research

1. Defining the problem and research objectives

The starting for research is the research problem and its objectives. The marketing manager sponsoring the research and the marketing researcher have to agree on them. Kotler explained this step using the example of a proposal to provide phone call facility to airline passengers. The telecommunication company indicated that cost will be $1000 for flight. So an initial idea was that the call can be charged at $25 and around 40 persons using the service would result in breakeven. But when the research question or problem was finalized, the issue was broadened to give a wider scope to the issue. The problem was stated as "Will offering an in-flight phone service create enough incremental preference and profit for American Airlines to justify its cost against other possible investments that American might make?"

Further more detailed questions were the following:
1. What are the main reasons that airline passengers need to make phone calls while flying?
2. What category of passengers are likely to make most phone calls?
3. How many phone calls will be made at different price levels?
4. Will more passengers travel by the Airline due to this service?
5. How much good will will be earned by the Airline by becoming the first airline to provide this service?
6. How important is phone service provision in relation to improving flight schedules, food quality and baggage handling.

Thus the questions are very specific in this example of research study. But in every research study, such specific questions may not be possible.


Some research can be exploratory. In exploratory research preliminary data is gathered to shed light on the nature of the marketing situation. (At this stage the research has no prior guidance or knowledge of the phenomenon either through internal information or through external information) Research projects can also be descriptive. In this type of study, magnitudes can be estimated. How many persons will you a particular product? (To estimate magnitudes, first based on exploratory research, relevant variables which are to be measured have to be decided. Then scales or measuring instruments for measuring them have to be developed). Research studies can also find cause-effect relations which investigate the response of people to certain actions given as stimulus. Marketers are interested to know the response of users to increased advertisement, sales promotion etc.

2. Developing the research
Research plan development includes decisions on data sources, research approaches, research instruments, sampling plan and contact methods.

Data Sources: For answering some research questions, secondary data may be available. If secondary data is not available primary data is to be gathered. Gathering primary data will result in higher expenses.

Research Approaches: Observation, Focus group discussion, Surveys, Behavioral data, and Experiments.

Behavioral research is based on store buying data linked to various socioeconomic data. This gives the behavior people classified into various clusters.

In experiments, various stimuli  in terms of advertisement, sales promotion, packaging can be tried on experimental groups and control groups and the difference in behavior can be observed to answer the research questions.

Research Instruments:  Questionnaires, Qualitative Measures, Technological Devices

Sampling Plan

Sampling Unit and Sampling Frame

Sample Size

Sampling Procedure: Normally random samples are preferred as we get error estimates.

Contact Methods: Mail contacts, Telephone contacts, Personal contacts, Online contacts,

3. Collection of the information
Data is collected using the instruments developed for the project.

4. Analysis of the information
The information is tabulated and measures that give the desired answer are calculated.

5. Presentation of the findings.
The research report is to be prepared for circulation to various decision makers.

In the fifteenth edition, Kotler and Keller, the marketing research question is slightly changed to reflect the current prices of providing internet services. The answer was provided that at $25 per the trip 5 persons will use the wi-fi service and at $15, six will use the service. Therefore, pricing the service at $25 is advisable. Per service, the revenue is $125. We can calculate the annual revenue by multiplying by number of days the service is offered in a year.

6. Make a Decision



The Characteristics of Good Marketing Research

Kotler listed seven characteristics

1. Research creativity
Research is done to help in marketing decision making. Right from defining the objective of research to the submission of the report, effort has to be made by people involved, to come out with ideas that would help the firm in a significant way. Creativity means generation of number of alternatives so that the best way of doing a project or task of a project is selected and pursued.

2. Scientific method

3. Multiple methods: Business decisions involve expenditures to get expected profits. Using multiple methods to confirm a finding is preferred rather than stopping with a method that gives a positive answer.

4. Interdependence of models and data: The model chosen for doing the research determines the data to be collected based on the concepts involved in the model.

5. Value and cost of information: Marketing researchers have to understand the value of the information and come out with designs that cost less than the value of the information.

6. Healthy skepticism: Researchers should not accept opinions and conclusions made by marketers about the marketing issues and have to develop research studies that test these opinions and conclusions. This is healthy skepticism.

7. Ethical marketing: Good marketing research has to benefit both the sponsoring company and consumers. Self serving research studies increase consumer resentment. Marketing research companies have to develop unbiased approach to doing marketing research studies.



Updated 26 February 2017,  15 Jan 2015, 10.12.2012

February 2, 2017

Summary - Principles - Organizing




Principles in Relation to Purpose



Principle of unity of objectives


An organization structure is effective if it as a whole, and every part of it, make possible accomplishment of individuals in contributing toward the attainment of enterprise objectives.

Modified to bring in things into the principle


An organization structure is effective if it as a whole, and every part of it, make possible accomplishment of individuals (in combination with things given to him for operating and utilizing) in contributing toward the attainment of enterprise objectives.

Principle of efficiency

An organization or organization structure is efficient if it is structured to make possible accomplishment of enterprise objectives by people with minimum unsought consequences or costs.


Modified to bring in things into the principle


An organization or organization structure is efficient if it is structured to make possible accomplishment of enterprise objectives by people (and things given to them to utilize) with minimum unsought consequences or costs.





Principles Related to the Cause of Organizing




Span of management Principle


There is a limit at each managerial position on the number of persons an individual can effectively manage. But this number is not a fixed number and it will vary in accordance with underlying variables of the situation.


Modified to bring in things into the principle


There is a limit at each operating position on the number of machines or equipments an individual can effectively operate. But this number is not a fixed number and it will vary in accordance with underlying variables of the situation (Japanese managers increased the number of machines to even 100 and ultimately into fully automated production systems requiring zero operating personnel).


Principles in Developing the Structure of Organization




The scalar Principle


The more clear the line of authority from the ultimate authority for management in an enterprise (CEO) to every subordinate position, the more effective will be decision making and organization communication at various levels in the organization.



Principle of delegation


Authority is a tool for managing to contribute to enterprise objectives. Hence authority delegated to an individual manager should be adequate to assure his ability to accomplish results expected of him.





Principle of responsibility


The responsibility of the subordinate to his superior for authority received by delegation is absolute, and no superior can escape responsibility for the activities of his subordinate to whom he in turn has delegated authority.



Principle of parity of authority and responsibility


The responsibility exacted for actions taken under authority delegated cannot be greater than that implied by the authority delegated, nor should it be less.



Principle of unity of command


The more completely an individual has a reporting relationship to a single superior, the less the problem of conflict in instructions and the greater the feeling of personal responsibility.



The authority level Principle


Maintenance of authority delegation requires that decisions within the authority competence of an individual manager be made by him and not be referred upward in the organization.



Principles in Departmentizing Activities



Principle of division of work


The better an organization structure reflects a classification of the tasks and activities required for achievement of objectives and assists their coordination through creating a system of interrelated roles; and the more these roles are designed to fit the capabilities and motivations of people available to fill them, the more effective and efficient an organization structure will be.

Principle of functional definition


The more a position or a department has clear definition of results expected, activities to be undertaken, organization authority delegated, and authority and informational relationships with other positions, the more adequately individual responsible can contribute toward accomplishing enterprise objectives.

Principle of separation


If an activity is designed to be a check on the activities of another department, the individual charged with such activity cannot adequately discharge his responsibility if he reports to the department whose activity he is expected to evaluate.


Principles in the Process of organizing




Principle of balance


The application of principles or techniques must be balanced in the light of the over-all effectiveness of the structure in meeting enterprise objectives.

Principle of flexibility


The task of managers is to provide for attaining objectives in the face of changing environments. The more provisions are made for building organization flexibility, the more adequately organization structure can fulfill its purpose.

Principle of leadership facilitation


The more an organization structure an authority delegations within it make possible for various managers to design and maintain an environment for performance, the more it will facilitate leadership abilities of managers.



Note: Principle of efficiency is there in Principles of Planning also.


Review Articles on Steps in Organizing

The Nature of Organizing - Review Notes
Departmentation in Organizations - Review Notes
Line-Staff Authority and Decentralization - Review Notes
Effective Organizing and Organizational Culture - Review Notes

References


Harold Koontz and Cyril O’Donnell, Principles of Management: An Analysis of Managerial Functions, 4th Ed., McGraw-Hill, New York, 1968

Harold Koontz and Cyril O’Donnell, Principles of Management: An Analysis of Managerial Functions, 2nd Ed., McGraw-Hill, New York, 1959

Updated  4 February 2017,  5 Jan 2015,  7.12.2012


Revision of Principles of Management in January Revision Plan.


MBA Core Management Knowledge - One Year Revision Schedule

February 1, 2017

Societal Direction System - Yehezkel Dror



According to Yehezkel Dror, knowledge in the area of societal direction system is scarce.

Google Book Link as Reference

One full article of Yehezkel Dror
http://files.eric.ed.gov/fulltext/ED052521.pdf


Also visit page 25 of this book

https://books.google.co.in/books?id=EkSGOKiMcy0C

http://shodhganga.inflibnet.ac.in/bitstream/10603/11382/8/08_chapter%201.pdf

Pubic Policy Making Reexamined - Yehezkel Dror - Google Book Link
https://books.google.co.in/books?id=XbXBMX37hqYC


Thoughts of various thinkers in the area of public administration summarized

https://atulkulkarni123.wordpress.com/tag/significant-works-and-ideas-of-thinkers/



First posted on 2 February 2017.