May 20, 2009 | Management, Marketing
Following the previous blog entry, “chief cook & bottle washer” and a phone call from a user prompted by it, I have been thinking about the value of advice, compared to the time it takes to provide it.
Many SME owners are used to hiring extra labor they need on an hourly as needs basis, say $800/week, and that colors their response when a marketing advisor charges $1000 for what appears to be a couple of hours work. (For many, “work” is often related to the number of things done physically, so sitting in a comfy chair, “thinking” hardly rates)
What they miss is the 30 years of experience it took to accumulate the knowledge to be able to sift the alternatives, offer the advice.
This is particularly the case with marketing and strategic advice. People are used to paying lots to accountants, because they recognise the need, and the value, not so with marketing, which is usually more difficult, as there is rarely a clear right answer, just a range of possible courses of action.
A $1000 for 30 years experience applied to a problem seems to be a good deal.
May 19, 2009 | Management
How often have we heard this expression describing the role a small business owner fills?
However, it trivialises the difficulty in remaining on top of the strategy issues and implementation, as well as the tactical demands of a business, putting out the inevitable day to day fires, and just ensuring things get done.
The skills to play all of these roles effectively, and provide the leadership necessary for success are not often found bound up in the same person.
Owners of SME’s are often reluctant to bring in assistance, but the skills necessary are now relatively abundant on a part time basis, and can add considerable value for a relatively small cost.
May 18, 2009 | Management, Sales
Spin Selling, written by Neil Rackham probably 30 years ago is the best sales book I have ever read, it has spawned an industry, along with the follow up books.
However, it is not perfect.
In my experience, most businesses of sufficient size to have a purchasing function have a process that drives the progress of a purchase, particularly new items, or those from an alternative supplier.
No matter how well drilled, how empathetic the questioning, how well they seek and find the points where you offering could add value to a customer, falling foul of the purchasing process is most often the end of the line.
The lesson is no matter how well you do your research, ensure you include the mundane details of the potential customers purchasing processes, identifying all the people, understanding the role they play, and identifying the opportunities and circumstances that may lead to “No” and accommodating them in your process.
May 17, 2009 | Demand chains
Coordination and Control are the key words in managing demand chains, and an orchestra is a great metaphor for a demand chain.
To work effectively a chain needs control in the sense of a conductor in an orchestra, who dictates the interpretation of a piece of music, and then co-ordinates the detailed contribution of the players.
The individual players need the detailed performance information about the mechanics of their contribution contained in the music, and a clear and unambiguous understanding of their role in the production of the complete sound of the orchestra from the conductor, including a clear understanding of the consequences on the whole, of a failure to perform to the agreed standard by them.
Without both types of information, the detail of the individual actions, and the understanding of how those actions fit into and enhances the whole, there is no possibility of an optimum outcome.
May 14, 2009 | Marketing
- They ask consumers/customers their views on things with which they have no experience, typically new products. This gives results that are rarely accurate, as there is no context against which potential consumers/customers can judge the relative performance of the product or service wth what they already buy, or what they may no longer buy.
- They ask people what they buy, (which is worth knowing) instead of why they buy. Why consumers make the purchase decisions they do is the key data.
Retailers make this mistake all the time, simply because they now have so much information from the scan data about what is bought, down to when, and with what else it is bought, that they confuse this “what was bought” data with the more important why it was bought.
