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Sponsored by: Subsidised by:
Presented by:
S U C C E S S
MANAGINGFOR
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Getting to Know You...
... even better!
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MOVING ON! MOVING ON! TimetableMODULE / ACTIVITY COMMENCE CONCLUDE
Registration 8.30 am 9.00 am
Welcome 9.00 am 9.10 am
Getting to Know You Even Better! 9.10 am 9.25 am
“MFS” WORKSHOP REVIEW 9.25 am 10.00 am
NEW PRODUCT DEVELOPMENTS 10.00 am 10.45 am
Morning Tea 10.45 am 11.00 am
“MFS” IMPLEMENTATION WORKSHOP #1
Defining Problems11.00 am 11.45 am
PROBLEM SOLVING - USING KEPNER TREGOE 11.45 am 1.00 pm
Lunch 1.00 pm 1.45 pm
“MFS” IMPLEMENTATION WORKSHOP #2
Solving Problems1.45 pm 3.00 pm
Afternoon Tea 3.00 pm 3.15 pm
BUSINESS NETWORK MARKETING
Using Key Customer Planner3.15 pm 4.00 pm
OPEN FORUM 4.00 pm 4.45 pm
REFINING YOUR STRATEGIC PLAN 4.45 pm 5.30 pm
Close 5.30 pm 5.45 pm
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MANAGING FOR MANAGING FOR MANAGING FOR MANAGING FOR MANAGING FOR MANAGING FOR MANAGING FOR MANAGING FOR
SUCCESS SUCCESS SUCCESS SUCCESS SUCCESS SUCCESS SUCCESS SUCCESS -------- ReviewReviewReviewReviewReviewReviewReviewReview■ Business Planning - Introduction■ Business Diagnosis■ Marketing■ Networking■ Finance■ People in Your Business■ Leading Your Business■ Animal Nutrition■ Strategic Planning
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Business Planning - An Introduction■ The need for planning when operating a small
business• ensures the development of a business (the strategic
market drive force)
■ What is a Business Plan?• contains the strategic, financial, operations, “people”
and marketing plans
■ Using a Business Plan effectively• the ultimate outcome: increased profitability through
people development, cost effectiveness, quality controls, marketing, product development and others
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PEOPLE /ORGANISATION
PLAN
OwnershipCorporate Structure
ManagementQuality
Organisation StructureTraining
Recruitment OPERATIONSPLAN
InputsOutputsInventory
Modus Operandi
STRATEGIC PLAN SWOT analysisObjectivesAction Plans
FINANCIAL PLAN Historical AnalysisFuture Projectionsincl. Cash Flows
Gross Margin AnalysisSensitivity AnalysisBreak Even AnalysisIncome / Cost Analysis
Industry Benchmarking
Monitor
THEBUSINESSPLAN
ActualResults
MARKETINGPLAN
ProductPlacePrice
PromotionPeople
Revise
THEBUSINESSDIAGNOSTIC
Revise
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Business Diagnosis■ The Business Diagnostic Pak™
• identifies “where their business is at” - the “now”. The Pak provides an assessment of your business in terms of overall effectiveness and identification of problem areas.
■ Developing strategies for business improvement• how to progress the business: examine the
business’s market position, business potential, business opportunities, and areas for change.
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Marketing■ The five “P’s” of Marketing
• product, place, price, promotion, and people• a marketing plan identifies ways to develop
opportunities
■ Being Innovative with Marketing• set your business apart from competitors
■ Having the right products at the right place at the right time
■ Positioning - Promoting your Business• making the product more attractive than that of the
competition
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Marketing (continued)“Marketing is about understanding and meeting parti cular
needs of selected individuals and organisations”.
■ Merchandising• design of promotional and co-product merchandise items to
develop awareness
■ Providing effective displays / Point of Sale Strategies• strategies which best promote a company’s products -
ensures maximum exposure (highest rewards constrained by the available resources)
■ Advertising• strategies on media that ensures maximum exposure most
likely to result in a positive image being received - and responded to - by the market / potential market
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Networking■ What is a Business Network
• "Networking is all about doing things together that are not possible, practical, or economic to do by yourself - leading to financial, business and social advantages to members"
■ Advantages and disadvantages of networking• Networking can be one way of overcoming the
impediments of an SME• possible network functions: INFORMATION,
INTERNAL TRADING, SERVICES, MARKETING and PRODUCTION
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Finance■ Financial terminology / Profit & Loss Statements,
Balance Sheets• how to read financial statements
■ Corporate Structuring■ Relationships with Investors / Bankers / Creditors:
Financing Your Business
■ Relationships with Debtors: Collecting Your Debts■ Gross Margin / Break Even Analysis
■ Bench-marking
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FINANCE (continued)■ The Financial Plan
• understanding a business’ financial status• ultimate objective: to develop a sound balance between
investment and performance in order to maximise the owner’s wealth
• a basis for measuring organisational performance
■ Developing a Cash Flow Projection• the lifeblood of any organisation - the Cash Flow• assists management in determining whether or not to
proceed with a new Project or carry on an existing enterprise
• details capital expenditure / working capital required
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NETWORKING WORKSHOP■ Examination of the benefits of forming a
Network• development of a marketing “cartel”
■ Feedback to Ridley on marketing and related matters• the possibilities of joint marketing strategies• ways to capitalise on the “Premium Ridley
Merchant” status
• agreed actions progressed
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People in Your Business■ Recruiting and Keeping the Right People in Your Business
• a company’s most important asset, “people” - often undervalued as an asset
■ Internal Communication• the organisation head or owner may have the best vision, but if he
or she cannot marshal the talents of the work-force, it may be lost forever
• developing the “right kind” of business cultures
■ External Communication■ Handling Customer complaints■ Work redesign and innovation
• recruitment, developing job descriptions and providing performance feedback / incentives
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Leading Your Business■ Developing the Right Culture for Your Business
• different management styles and business structures suit different companies at different times
■ Being an Effective Leader and Motivation• how business proprietors might be able to motivate
their staff
■ Teamwork
■ Handling employee complaints■ Quality Assurance
■ Succession Planning
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Animal NutritionPOULTRY NUTRITION & MANAGEMENTCALF REARINGHORSE NUTRITION■ Digestion systems (overview)
• fundamental biochemistry and physiology
■ The digestion, absorption and utilisation of food constituents
■ Analysis and digestibility of feed stuffs• how animals utilise food constituents (e.g. vitamins, minerals,
carbohydrates, fats, and protein)
■ The Nutritive Value of Feed and Scientific Rationing• how the quantitative requirements of stock are found and
expressed
■ Weaning and Rearing
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Strategic Planning“if you don’t know where you are going, any
road will get you there”
■ Overview of Strategic Management Planning■ Recognising Your Competitive Advantages and
Using Them
■ Conducting a SWOT analysis■ Setting Priorities; Developing goals / objectives and
action plans to achieve results
■ Integrating the Strategy into a Business Plan■ Developing a Strategic Plan for “Poor Pete”
■ Realising the Vision for Your Business
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NEW PRODUCT NEW PRODUCT NEW PRODUCT NEW PRODUCT NEW PRODUCT NEW PRODUCT NEW PRODUCT NEW PRODUCT
DEVELOPMENTSDEVELOPMENTSDEVELOPMENTSDEVELOPMENTSDEVELOPMENTSDEVELOPMENTSDEVELOPMENTSDEVELOPMENTS
■ Advanced Animal Nutrition■ Ridley Research and
development activities■ New products and services
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““““““““Managing for SuccessManaging for SuccessManaging for SuccessManaging for SuccessManaging for SuccessManaging for SuccessManaging for SuccessManaging for Success””””””””
IMPLEMENTATION WORKSHOP #1IMPLEMENTATION WORKSHOP #1IMPLEMENTATION WORKSHOP #1IMPLEMENTATION WORKSHOP #1IMPLEMENTATION WORKSHOP #1IMPLEMENTATION WORKSHOP #1IMPLEMENTATION WORKSHOP #1IMPLEMENTATION WORKSHOP #1
Defining ProblemsDefining ProblemsDefining ProblemsDefining ProblemsDefining ProblemsDefining ProblemsDefining ProblemsDefining Problems
■Problem Definition: Implementing business improvements subsequent to the “Managing for Success”Workshop series
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Problem Definition
■ It is important that the problem , not just the symptom , be identified, prior to attempting resolution
■ People avoid solving problems when they are unsure how to go about solving them
■ Problem analysis can be used to explain any situation in which an expected level of level of performance is not being achieved performance is not being achieved and in which the cause of thecause of the unnacceptableunnacceptableperformance is unknownperformance is unknown
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Examples of problems■ “From the day we introduced the
computer, we’ve had nothing but trouble in getting our invoices balanced”
■ “Sally Atkinson was referred here with excellent references, but she certainly hasn’t fulfilled expectations here at Poor Pete’s”
■ “Our forklift never performs more than 80% of design capacity no matter what we do”
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Problem Definition:
What problems have arisen with implementing business improvements subsequent to attending the “Managing for Success” Workshop series?
What problems have arisen What problems have arisen with implementing business with implementing business improvements subsequent to improvements subsequent to attending the attending the ““ Managing for Managing for SuccessSuccess ”” Workshop series?Workshop series?
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PROBLEM SOLVING PROBLEM SOLVING PROBLEM SOLVING PROBLEM SOLVING PROBLEM SOLVING PROBLEM SOLVING PROBLEM SOLVING PROBLEM SOLVING --------
USING KEPNER TREGOEUSING KEPNER TREGOEUSING KEPNER TREGOEUSING KEPNER TREGOEUSING KEPNER TREGOEUSING KEPNER TREGOEUSING KEPNER TREGOEUSING KEPNER TREGOE
■ The Four Basic Rational processes for using and sharing information about concerns• SITUATION APPRAISAL• PROBLEM ANALYSIS• DECISION ANALYSIS• POTENTIAL PROBLEM ANALYSIS
■ The Four conditions for effective problem solving by a team
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TEAMWORK...the best way to solve a problemthe best way to solve a problem■ Your team can be greater than just the
“sum of the parts”■ People should not only enjoy the rewards
of success, but enjoy the process that produces success!
■ Effective teamwork involves rational thinking...Kepner Tregoe is one model that can be used - but use your team wherever possible / practical!
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THE FOUR CONDITIONS FOR EFFECTIVE PROBLEM SOLVING BY A TEAM
➊The team solving the problem must possess the skills needed to solve the problems that arise on their jobs
➋They must experience success in using those skills
➌They must be successfully rewarded for successfully resolving their problems
➍They must not fear failure
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SITUATION APPRAISAL“What’s going on?”
■ Break down complex situations into manageable components
■ Identify the problem■ Identify decisions to be made■ Analyse and plan for future events
Assessing and clarifying situations Assessing and clarifying situations -- ““ sorting sorting things outthings out””
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PROBLEM ANALYSISThe “cause and effect” thinking pattern
■ Extract essential information from a troublesome situation
■ Set aside irrelevant, confusing information
Enables us to accurately identify, describe,Enables us to accurately identify, describe,analyseanalyseand resolve a situation in which and resolve a situation in which
something has gone wrong without explanationsomething has gone wrong without explanation
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PROBLEM ANALYSISThe technique❶ Definition of the problem❷ Description of the Problem❸ Extraction of key information to
generate possible causes❹ Testing for the most probable cause❺ Verification of the true cause
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Problem Analysis (continued)DEFINITION OF THE PROBLEMDEFINITION OF THE PROBLEM
■ Define the problem with a Deviation statement
■ The statement should be very precise -not vague
■ Don’t bunch a bevy of seemingly related problems into one overall problem - you will become “ankle tied” in a problem solving “sack race”.
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Problem Analysis (continued)DESCRIPTION OF THE PROBLEMDESCRIPTION OF THE PROBLEM■ All the facts surrounding any problem fall
into four categories•• IdentityIdentity (what it is we are trying to explain)
•• LocationLocation (where we observe it)
•• TimingTiming (when it occurs)
•• MagnitudeMagnitude (how serious, how extensive it is)
■ By considering the IS / IS NOT’s for each of the above, the search for the problem is narrowed
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Problem Analysis (continued)EXTRACTION OF KEY INFORMATION EXTRACTION OF KEY INFORMATION TO GENERATE POSSIBLE CAUSESTO GENERATE POSSIBLE CAUSES
■ Identify the distinctions that characterisethe problem in terms of:•• IdentityIdentity•• LocationLocation•• TimingTiming•• MagnitudeMagnitude
■ Generate possible causes based on how the distinction has produced the deviation
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Problem Analysis (continued)TESTING FOR THE MOST PROBABLE TESTING FOR THE MOST PROBABLE CAUSECAUSE
■ By including all possible causes, we lose nothing, maintain objectivity, and reduce the incidence of conflict or disagreement
■ Let the facts perform the function of judging the relative likelihood of possible causes
■ For each possible cause, ask whether if this is the true cause then how does it explain each and every aspect of the deviation (the “IF.. then..”question)
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Problem Analysis (continued)VERIFICATION OF THE TRUE CAUSEVERIFICATION OF THE TRUE CAUSE
■ Verification is easy to perform once you have identified a likely cause.
■ You can• set up an experiment to test the likely
cause, OR• Devise corrective action based on the most
probable cause (using assumptions) -reverse the change to see if the problem stops
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Problem Analysis (continued)
Experience andExperience and judgementjudgement produce produce their best possible results whentheir best possible results when
channelledchannelled through some or all the through some or all the elements of a systematic processelements of a systematic process
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Problem Analysis (continued)Exercise in a practical situation
““ From the day we introduced From the day we introduced the computer, wethe computer, we ’’ve had ve had
nothing but trouble in getting nothing but trouble in getting our invoices balancedour invoices balanced ””
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DECISION ANALYSISThe “choice-making” pattern of thinking
➊Analyse the reasons for making the decision and examine its purpose
➋Analyse the available options for achieving that purpose
➌Analyse the relative risks of each alternative - use a “weighted score”.
Standing back from a situation and evaluating its Standing back from a situation and evaluating its three componentsthree components
This This ““ balanced picturebalanced picture”” enables us to make the wisest enables us to make the wisest and safest choiceand safest choice
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Using a “weighted score” in DECISION ANALYSIS
Want objective Weight Alternative #1- Score
Weighted Score
1. Implementation date 10 6 60
2. Security 9 10 90
3. Cost 8 10 80
4. Use by supplier 3 8 24
Total 254
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POTENTIAL PROBLEM ANALYSIS“What might be”, and “what might happen”
Based on our concern with future events: foreseeing possible trouble in a given situation
■ Thinking and acting beforehand to prevent a problem is more efficient than solving a problem that has been allowed to develop
■ We can take an active hand in shaping our future
■ Reduces the number and severity of problems
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““““““““Managing for SuccessManaging for SuccessManaging for SuccessManaging for SuccessManaging for SuccessManaging for SuccessManaging for SuccessManaging for Success””””””””
IMPLEMENTATION WORKSHOP #2IMPLEMENTATION WORKSHOP #2IMPLEMENTATION WORKSHOP #2IMPLEMENTATION WORKSHOP #2IMPLEMENTATION WORKSHOP #2IMPLEMENTATION WORKSHOP #2IMPLEMENTATION WORKSHOP #2IMPLEMENTATION WORKSHOP #2
Solving ProblemsSolving ProblemsSolving ProblemsSolving ProblemsSolving ProblemsSolving ProblemsSolving ProblemsSolving Problems
■Problem Solving:Implementing business improvements subsequent to the “Managing for Success”Workshop series
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BUSINESS NETWORK BUSINESS NETWORK BUSINESS NETWORK BUSINESS NETWORK BUSINESS NETWORK BUSINESS NETWORK BUSINESS NETWORK BUSINESS NETWORK
MARKETINGMARKETINGMARKETINGMARKETINGMARKETINGMARKETINGMARKETINGMARKETING
■ Using the Business Development & Marketing Planning Guide
■ Being Innovative with Joint Marketing
■ Promoting your Business -Jointly
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Business Development & Marketing Planning Guide■ is essentially
designed to help you develop a Marketing Plan
■ Replaces the “Key Customer Planner”
ARIDLEYGRI RODUCTSP
High Performance Animal Nutrition.
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Business Development & Marketing Planning Guide■ Designed to be completed sequentially■ Prepared especially for use by accredited
Premium Ridley Merchants, provided as part of the “Managing for Success” and “Moving On!” Workshop Series
■ Enlist the services of other persons who know something about your business
■ Use your Ridley AgriProductsrepresentative where possible
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SWOT Analysis (p. 4)
■ SWOT analysis has already been conducted through completion of the Business Diagnostic Pak™
■ By referring to the outcomes contained on pages 38 to 40 of the Pak, you will be able to complete the first table
■■ Issue: Issue: these are the major issues affecting each module's outcome
■■ Strategic ObjectiveStrategic Objective : develop a “strategic objective”to deal with each issue• It is not an action plan. It is a measurable statement of
“where you want to be”
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Situation Analysis (p.5,6)■ This analysis assists in developing a comparative
analysis of the market in which you operate (sales volume and market share)
■ Will determine how effective you are in marketing to the region in which you are based.
■ To arrive at your estimated market share• On Page 6, estimate sales volumes for each of the
prioritised market segments you have identified• add the balance of estimated sales volumes,• compare the result to your current sales levels
This will help you in better targeting your market gapsThis will help you in better targeting your market gaps
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Marketing Strategy Overview (p. 7)“Where the business is going”
■ Company Vision• Where do we want to be in 12 months or longer?
■ Mission Statement• What our goals are in order to realise our vision. • Consider the outcomes of your SWOT analysis.
■ Overall Marketing Strategy• Describes how the business will present itself to the
market.• Where is our marketing focus / target?
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Sales & Promotion Options (p.8)
■ A few ideas of things you might consider to encourage sales growth and development
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Planned Promotional Activities (p. 9)
■ Complete details for planned Promotional Activities, taking into account all the foregoing
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Strategic Action Plans (p. 10)
■ Each of the action plans MUST be• specific• time-bound• measurable• realistically achievable• resource allocated
■ To complete, refer to each of the Strategies identified in the “SWOT Analysis” section
■ you will need to develop a number action plans for each Strategy
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Sales Targets (p. 11)
■ Complete taking into account all the foregoing
■ Share this information with your supplier
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Monitoring & Evaluation (p.12)
■ You need to be able to measure and monitor performance to determine if you are on target
■ You may need to re-think / adjust your strategies or action plans if they are not working
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Major Activities Planner (p. 13)
■ Optional■ Provides an overview of major
marketing and other related activities
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Marketing
■ Being Innovative with Joint Marketing
■ Promoting your Business - on your own, or jointly
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IMPACT OF MASS MEDIA■ The greater the exposure to mass media and
communication channels, the more favourable is the likelihood for change
■ If an audience perceives a source has something to gain from persuasive attempts, persuasiveness is reduced (manipulation)
■ Greater consistency of communication over time results in greater confidence in the information given (if you are told something often enough you will start to believe it)
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Truth...
if you are told
something often enough you will start to believe it
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Frequently, persuasive communications fail to have their intended effect
■ They may even have the opposite effect!
These probably taste pretty good. Too bad their commercials have made me hate the very thought of them!
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CONSUMER BEHAVIOUR■ Consumers process information in two
ways:
RIGHT SIDE RIGHT SIDE of brain: of brain: pictures and pictures and auditoryauditory
LEFT SIDE of LEFT SIDE of brain: brain: written written materialmaterial
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Advertising using the concept of brainspecialisation
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Advertising using the concept of brainspecialisation(side 2)
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CONSUMER BEHAVIOUR■ Consumers rely more on visual information after extended
period of repetition■ Impulse buying results from visual information, rather than
written■ Colour affects consumers moods and influences their
buying behaviour■ Light sources in a store affect product perception and
buying decisions■ Lack of ability to touch a product may have negative
effects on consumers■ Unpleasant smells increase a negative evaluation of a
product - and visa versa.■ The higher the familiarity / preference with music listened
to, the more likely there will be a positive reaction
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Consumerbehaviour
Consumers rely more on visual information after extended period of repetition
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AGE, LOCATION & ETHNICITY■ Children and the elderly have difficulty in processing
product label information■ Children will choose their preferred product when an
advertisement is highly attractive, regardless of their parents strategy
■ For adolescents, radio, newspapers and peer group are likely to be the most persuasive forces
■ The stronger one’s sense of Jewish identity, the more likely purchase will be made independent of thejudgement of other people
■ Closer ties to an ethnic community = greater influence of product selection by that community
■ Cultural differences and training during childhood determine people’s preferences for colours, shapes, etc.
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SEX
■ There have been dramatic increases in the number of high income women in thelabour force
■ Women have been increasingly marrying later and having children later - the gap between the two is also increasing
■ Joint decision-making is more likely as the importance of the purchase increases
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The changing response to the needs of women...
high income women in thelabour force
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Advertisement showing changing family structure
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PERCEPTIONS, SOCIAL CLASS
■ Peoples perception of economic conditions (rather than reality) govern willingness to buy
■ Major kitchen and laundry appliances no longer serve as status symbols
■ Level of income has a stronger impact than education, property value and occupation
■ Over time, opinion change from a high credibility source decreases
■ Among similar products, the one that most successfully meets most consumer needs (wants) will have the greatest likelihood of purchase
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SAVING■ Saving may occur rather than spending to
reduce feelings of financial uncertainty OR to meet a distant consumption goal
■ Consumption decreases slower than income decreases
■ Consumption increases slower than income increases
■ People make purchases in the present, rather than the future, if they expect price rises
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HUMOUR & MESSAGE STRUCTURE■ Use of a humorous message increases
attention and source credibility, but decreases comprehension
■ Humour may distract, causing counter-argumentation, resulting in increased persuasion
■ The persuasive effect of humour is at best no greater than serious appeals
■ Use of conclusions in advertising increases comprehension, BUT allowing consumers to draw their own comprehension is likely to increase yielding
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Use ofhumour...
Also reflects a general belief that personality is related to consumerbehaviour
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BRANDING, RISK & COMPETITION■ The larger the number of brands in a product class, the
lower the perceived inherent risk■ The greater a consumer’s brand loyalty, the less
sensitive they are to price changes■ The greater a consumer’s brand loyalty, the less
frequently they will try new brands■ Bright rich colours on product labels are more likely to
result in product and brand identification■ The greater the magnitude of change required for
adoption of innovation, the greater the need for inducements / incentives
■ Product-dependant organisations perceive competition more strongly than product-independant organisations
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Changing brands...
The larger the number of brands
in a product class, the lower the perceived inherent risk
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Branding consistency..
Repetition of
“Ziggy’s”brand name
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SOCIAL RISK■ Patronage of discount stores by different
social classes is less variable where there is less “social risk” of the product -only the frequency of visits changes
• Low social risk products include sleepwear, toys, undergarments and hosiery
• High social risk products include men’s dress shirts, costume jewellery and wall decorations.
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■ The more consumers can empathise with a salesperson, the more readily they will buy products and services advocated by the salesperson
■ Empathy is the factor most closely associated with potential for change
■ The greater the degree of uncertainty about a situation, the more likely a consumer will seek advice from sales personnel
IMPACT OF THE SALES PERSON
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OPEN FORUMOPEN FORUMOPEN FORUMOPEN FORUMOPEN FORUMOPEN FORUMOPEN FORUMOPEN FORUM
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REFINING YOUR REFINING YOUR REFINING YOUR REFINING YOUR REFINING YOUR REFINING YOUR REFINING YOUR REFINING YOUR
STRATEGIC PLANSTRATEGIC PLANSTRATEGIC PLANSTRATEGIC PLANSTRATEGIC PLANSTRATEGIC PLANSTRATEGIC PLANSTRATEGIC PLAN
■ Strategic Management Planning -Revisited
■ Revising Your Priorities; Developing goals / objectives and action plans to achieve results
■ Realising the Vision for Your Business
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Development of the Strategic Plan
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Realising the Vision for Your Business
■ Knowing the strategic direction helps prepare a business for the possible futures, as well as creating the ideal operating scenario
■ Identify your critical success factors relating to strategic direction, such as• competitive advantage• company goals• priorities• communication• personal objectives• the utilisation of technology.
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Some Statistics...
■ About two-thirds of all businesses have static or near static employment levels
■ Around 40% of all businesses record increased sales of goods and servicesanually
■ Sales decrease for about 17% of businesses.
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Government Research findings over many years shows that the chances of success are dramatically influenced by:
■ Aquire realistic practical attitudes about your ability, product and service
■ Aquire a good mix skills (human, physical, business)■ Proper formal planning... on paper■ Regular re-checks: direction, goals, economics, personal
satisfaction■ Finding and using a well organised support structure to
help with management & marketing■ Regular consultation: 3 + professional advisers■ Training: improve your skills areas where you lack
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“Only one in five business people take time out to review their past performances”
■ Step back■ Take a look at the “big picture”■ Work as passionately on your own business
as you do on the product or service you provide
■ Improving management skills and business competitiveness ultimately improves your bottom line
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Sponsored by: Subsidised by:
Presented by:
S U C C E S S
MANAGINGFOR