Eight costly marketing mistakes

This article was sent by Mr. Jigar Rajani from FYMMS Alkesh Dinesh Mody Institute - Mumbai University with a

request to publish it on the Blog. It was featured in Economic Times of India dated 28 March 2008. The sources opted by Economic times are mentioned in the Footer. The article very beautifully discusses 8 commonly made mistakes which the marketers make and which should be avoided to make a good and successful marketing plan. Here we go.........

 

Marketing only in the slow times
To grow your business, you need an ongoing, targeted marketing program you can manage year-round along with the day-to-day demands of your new business. One mistake start-up entrepreneurs often make is to put marketing on the back burner and focus exclusively on the few customers they’ve got. Marketing only during the slow times dooms you to living on an economic roller coaster.
Failing to focus
Often, start-up marketers fail because they try to tackle too many types of prospects on a limited, start-up budget. Going after everyone who will listen is a shortcut to failure. On the flip side, when you narrowly focus your marketing efforts on a qualified target audience, you’ll get spectacular results.
Overlooking testing and research
So you think millions of people will want to buy your product or service. What makes you so sure? Before committing lots of cash to launching your new business, do some market research. The Internet is your best source of published information. You can test the market using surveys. Testing can keep you from making costly mistakes based on false assumptions about your product, service or customers.
Relying on just one or two tactics
It’s only natural to rely on the marketing tactics you’re most comfortable with. If you like meeting and talking to new people, you may focus on networking. If you’re shy, on the other hand, you might rely solely on direct mail. Such single-mindedness is a major marketing mistake because it prevents you from exposing a full range of prospects to your message.
Under-spending on marketing
it’s just as important to set aside marketing funds as it is to budget for tools you’re going to need to run your business. If you go to a bank for financing, you’ll be expected to show the banker your marketing budget — because without marketing, there’s very little chance you’ll be able to repay your loan. Even if you’re funding your company without help from a bank or other lender, you need to follow the same guidelines.
Failing to present a professional image
Your marketing materials sell your company image to the world. To be successful, you need a cohesive family of tools that stand up to those of even your largest competitors. If you hand out shoddy, poorly produced marketing materials to prospects, don’t expect to be picked for plum jobs. Also be aware of how your company ‘sounds’ when prospects call.
Ignoring current customers
As your business grows, you may become so focused on getting new customers that you overlook current customers. That is a major mistake, since it generally costs more to win a new customer than to ‘resell’ to an existing one.
Overlooking what tech can do for you
Contact management software and e-mail marketing are just two options that can streamline your marketing efforts and improve your productivity. Without a good contact management program, business contacts may be lost and call-backs missed. Don’t overlook these valuable tools that can help your business grow.
(Source: Microsoft Small Business Centre)

To that last point I would like to add a few more things. Firstly you are reading this blog, and if you are, then probably you are also aware of thousands of other blogs that are present over the internet. Hence we can conclude that blogs and podcasts play a very important role in contemporary times. People argue (in case of Indian subcontinent) that internet penetration is very low, but when we see it in absolute terms the figure tends to be more than some of the developed markets in the world, which means that if properly utilised, the modern marketing tools can form an important ingredient in the marketing mix of any organisation. I would like to quote a few examples in here for supporting my argument.

Example 1: Almost all of the media houses in India produce RSS feeds and they have thousands of subscriptions reaching to millions of readers. This was not possible by conventional marketing in such a cost effective manner.

Example 2: South West Airlines use Twitter to distribute information regarding deals and offers to its clients. And this has proved to be a huge success.

Example 3: Starbucks and Dell use Salesforce.com's "Ideas product" for their "Idea storm" and 'MyStarbucksIdea.com" where in each person can place his or her Idea for Starbucks and if that is accepted by the management, the person is continuously notified about the status of his idea.

Example 4: Dell leads the world with employee representation on Twitter. That means Dell employees have regular interaction with business partners regarding the developments in the company. This not only creates awareness with the clients but also helps build relationship and loyalty with the prospects and clients.

Example 5: Not only is this trend followed outside India, but consider Sunsilk's "Gang of Girls" which was such a hit that Private Equity firms are queuing the company gates for acquiring stake in the program.

Example 6: The examples can go on in an inextensible manner but concluding my article I give a last and the latest example I saw. HUL has launched a completely new website for its "Lux Black" which features an interesting story of the girl visiting the website. The story completely depends on the personality and choices of the girl. A beautiful initiative on the part of HUL to capture the imagination of its Target Market.

By demonstrating so many examples I want to prove just one point. Modern Marketing practices are taken very lightly in India. They should be given more emphasis. Being at a nascent stage, they can be exploited in a better manner, because as the consumers grow weary of it, these practices will also face the same problems that exist with traditional marketing today ie The problems of reaching the target customer in a competitive environment, grabbing user attention and so on and so forth.

Hence Guys with this note, I end up, promising to be back very soon...

Regards

Manish K Gupta

 

Technorati Tags: General Marketing,Modern Marketing in India

A Review to Harward Business Review

Hi Everyone.

 

I am back…. And this time with a bang! Today the discussion is very unusual. The blog discusses a fact, that all of us have a feeling of self-important and we are obviously aware of it. This is the prime cause of what I am going to discuss today. The only reason it is not in the conscious of everybody is - it's considered a taboo. The subjects don't discuss it because they don't want to acknowledge it and the leaders don't accept it because they don't want to take the trouble of addressing it.

 

Yes……    I am speaking about the invisible structures that are formed in any social arrangement that exist around us.

 

Yesterday I was reading a blog on Harvard Business Review. The discussion was on how to crack such a deplorable structure. But first let's accord on why these structures are formed.

 

I believe it's absolutely human to think, that one is supreme in every aspect albeit it's not always true. When people think in this manner they subconsciously mingle with people of same outlook and calibre. Unfortunately this does not happen only to a few selected but with all of us. People, to save face, say that they stay together as their wavelengths match. But in the long run, they don't realize that they have nearly stopped interacting freely with others. The formation of these structures thus hinders the flow of knowledge and information among groups. They are hence, not able to give in their full efficiency. There are various other psychological reasons moving parallel to what I have said, but I think this is a major reason for these structures, and it is a matter of great concern.

 

When discussed in public, the issue seems to be verboten. People don't talk because they don't want to show an outsider, that they are dispersed groups in an organisation (because this is the mentality with which each one of us has grown). Again they don't want to bring themselves in the eyes of the management. What wonders me is why do leaders and motivators avoid it?

 

Today leaders and motivators encounter ever complex problems, then what is the reason that they avoid it? They, according to me, fear defame. But today we need to create classless organisations and institutions. Not only because they breed harmony among employees and students but, as the blog says "organizations need the best ideas of everyone and cross-disciplinary teamwork" to succeed in this cut throat competition. The blogger has given a few tips to crack this.

 

Firstly he says to "Perform a diagnosis" by asking people about the group or the class to which they belong. Find out the reason of bonding between them. He then says to "create a classless society" wherein the distinctions would be based on meritocracy and not democracy. Thirdly he argues about practicing what is being preached in the organisation or the system. If the management does not practice the things it imposes on others then the employee morale drastically goes down and the acceptance of the changes comes to question. Finally the Blog says that Intolerance of bad behaviour is an absolute necessity. As it says, "Nothing gets the message across better than a few public hangings."

 

Hence with a note, that the points mentioned today will be given a serious thought, and with a smile on my face I wish you farewell.

 

Will be back with another hot topic …                        Promise!!

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How did you feel about the article? Please do mention in your comments. Now I should say Thanks to all you readers for reading this article so interestingly.
 
If you feel that there are some issues which should come up in this blog or, or you have some views you want to present to the guys out here, Please do feel free to mail me at m.gupta11@gmail.com . And yes don't forget to keep the subject as BLOG.
 
Happy Blogging
 
Regards
 
Manish K Gupta
FYMMS Semester II
Alkesh Dinesh Mody Institute of Financial and Management Studies
Vidya Nagri, Kalina
Mumbai

 

Till then Good Bye

 

 

 

Top 10 Changes in my Business Thinking

 

I read this article in blog by "Creative Weblogging Ltd" and am publishing the same. I think down the line this is what everyone of us will think. Like us, this guy is also an MBA and has seen the world better than us. As he says in the blog, that, he wasted his time in reading and studying, when he should be building networks both social and professional. I too agree to this fact, that, today we need to emphasize more on activities which are over and above than just curricular. Again he says that we should help people get up and not just keep the talents or knowledge locked up with us. I think, that this is one of the most needed things in Indian Educational institutions today. We suffer from an intense competition from not only our peers but also from our juniors and seniors. But still, we should keep in mind the 'Favor Bank' which was expressed in 'Times of India' few months back. The fact was, that, today, world operates with favors. Everyone needs favors from everyone else at some or the other time. Hence we should keep a keen eye on building our relationships and sharing knowledge as much as we can.

 

Read on further for some really interesting insights which the blogger thinks are important to build a great business.

 

"       I am sitting in a coffee shop this morning breathing a sigh of relief. After almost 5 years of blogging, I am done. This past year, my heart just hasn't been into it, and I think that is reflected in the lackluster posting compared to previous years. I had a contract to fulfill with Creative Weblogging, and it ends today.

Five years ago I was 26 years old and I was working as a digital design engineer in Florida. Now I am 31, living in Louisville, KY, and have my first child on the way any day now. My work is probably best described as building a web platform for local media companies under the assumption that the web is going more local, and consulting part-time to pay the bills. Sometimes when I look back on the past 5 years, I am amazed at how much I've been through, and how much of it has been public - published right here. I have asked the new owner to give me a login to the new Business pundit, so that I can come post here and there when I feel like I have something to say and want to get it out to a larger audience (as opposed to the 30 visitors a day I get at my new blog). The grind of writing every day has become boring, and I just want the chance to do more research and write less often, but with better insight and supporting evidence.

Five years ago, my views on business were very very different than they are today. So I thought for an appropriate last post, I would examine the top 10 things about business that I view differently than I did 5 years ago. I am not saying these are gospel, or even that they are correct. I think absolutism is a sign of closed mindedness and that any intelligent person should always be adjusting their views slightly in light of new evidence and changing times. Five years from now, I will probably read this post and think that I was wrong about some of these. Nonetheless, this is where my mind stands today.

10. Luck Matters
Five years ago, I would have said success was mostly skill and effort, but in the past five years I have met countless bright hard working entrepreneurs who didn't get the right break. I have also met a few no talent hacks who got lucky. In general, I think a small percentage of highly successful people are just lucky and not talented. Most are both talented and lucky, and a few were just so super talented they didn't need luck. Call it a bell curve. Talent and hard work will put you in a good position, but to get to the upper echelons of success, I think most of us need some good luck and timing.

9. Touchy Feely vs. Analytical
I used to be very "Fast Company" in my approach to business. I believed it was all about the soft stuff. The key to success was making employees happy and having some crazy Google-like workspace. There is still some truth to that, but now I lean heavily on the economics of an industry for success. It is soooo much easier to be successful in a business with good economics, even if you make some mistakes, than in an industry with lousy economics but a hip fun workplace. For entrepreneurs, I think the key approach should be to look for opportunities in markets where the economics are changing.

8. Beware of the Hype
I used to be in awe of people who got a lot of publicity. My first smack in the face came when a PR company called me for a business launch and had written a quote for me. They wanted me to approve the quote. So that's how the game works eh? Since then, I have a love-hate relationship with PR. I realize it is important to stay "top of mind," but at the same time, it is so contrived and artificial most of the time that I hate to be a part of it. The lesson here is that when you see someone sitting on a panel at a conference, when you see them get an article published in a magazine or newspaper, when you see them cited as an industry leader, that doesn't really mean you should listen to them or that they have any idea what they are talking about. Do your own research and ask them tough questions. Don't base your awe of them on their aphorisms.

7. It is Always Easy to See What You Want to See
It took me almost 2 years to find a financial partner for my first business. Then a few months into it, I realized the margins would never be what I wanted them to be. Dozens of people told me why it wouldn't work (lousy industry economics, primarily) but I didn't listen. It was sexy and cool, and I wanted to be sexy and cool to. I saw what I wanted to see. I didn't listen.

The problem is that when you are doing new things, people are almost always critical. So how do you know when to listen to them and when to ignore them? I don't have a good answer to that, but I know that every day I ask myself if there is evidence that my views are wrong on this or that.

For instance, I am convinced that top level aggregation of local information is the wrong approach to local web media, yet that is what almost everybody is doing. Instead, I believe you need to take the mass customization approach - a backend that aggregates, but a bunch of front-ends that are unique to each city. I don't see any evidence that this is wrong, but it keeps me up some nights wondering why I am only aware of 2 companies that are taking my approach, and 200 that are taking the opposite approach.

6. Do Stuff
I used to plan and talk, plan and talk, plan and talk. I'm not criticizing planning or talking... they can be beneficial, but now I prefer to do something instead of talking. Your plans will probably be wrong on anything that is new, so you may as well just start doing. Doing stuff gives you a better "feel" for a business than all the planning in the world. Plus, once you get labeled as a doer, everybody wants to work with you because they have all been burned by planners and talkers. Of course, doing takes a lot more time. It's also much harder. And once you adopt the doing mentality, you risk doing stuff just for the sake of doing stuff, but action for action's sake is sometimes the wrong approach.

5. Failure Doesn't Really Matter
It is embarrassing to fail. We all wish we could string together a bunch of wins. I used to be concerned about looking stupid, or dealing with the criticism that can come with failure, and while I won't say I like it and embrace it, I will say that it doesn't bother me nearly as much as it used to. One reason for that is many "failures" are only temporary setbacks, and if you don't let them scare you and demoralize you, they can be turned into wins. The second reason is that failure is almost always a great learning experience, and you can charge valuable consulting fees by finding companies who want to get into a space and selling them the more efficient learning curve they can get by avoiding the mistakes you have already made.

4. Find Your People
Search is the key process you need to master. I used to think that I needed to be more persuasive. I thought the key to raising money, hiring good people, or selling a lot of whatever it is I was selling was to learn how to convince skeptics. No. Spend your time finding investors who are looking for ideas like yours instead of convincing investors who don't care that they should listen to you. Spend time finding employees who believe in what you are doing instead of convincing potential hires that they should want to come work for you. Spend time searching for a customer who needs and wants what you have, instead of trying to convince someone who doesn't that they should want it.

Don't try to change other people. Try to find the people who are like you in the ways that are most important. Work on meeting and connecting with the people who matter.

3. Revenge is a Waste of Time and Energy
Business can lead to situations that make you angry and make you want to go crush an ex-employee, ex-customer, competitor, or whoever. While spite may be a good motivator, revenge is typically a lousy use of resources. Blow it off. Take the high road. If you get ripped off, don't spend all your time trying to get back at the guy, just suck it up and move on. If your focus on revenge distracts you from the real focus of your business, then your nemesis has just won a second time by making you less successful.

2. Help Others Reach Their Goals
Five years ago, I would have said you should monopolize talent, force people to do what you wanted, not what they wanted, lock people in, and in general do whatever it takes to keep everything tilted in your favor (maybe that is why I favored the trimmings of a happy workplace mentioned above... because I didn't believe work itself could be happy). Now I believe that everyone has dreams and if you can help them reach those dreams, most of them will go to the ends of the earth to help you out down the road. When skilled employees are ready to move on, don't be mad, be happy for them. When customers have outgrown you and need a different type of provider, help them find what they need, don't be angry at them. Don't be one of those people who only takes and takes in a relationship. Be a giver, even if other people call you a sucker. In the long run, you will be better off.

1. Relationships, relationships, relationships
The single biggest thing that I have learned is that relationships matter. People like to work with people they trust. Five years ago, I thought I would be a successful entrepreneur some day because I would hole up in my house and read all kinds of technology and business books and play with lots of software and then have some breakthrough insight that would shake up the world on its own. Now I think if I am ever highly successful, it will be because a bunch of people helped me get there. My biggest regret at this point in my life is that I wasted my MBA years by not networking. I skipped almost every networking event we ever had because I thought it was a waste of time and I was better off studying or reading. I should have spent that time networking and getting to know my classmates.

In December, we decided to give up our search for funding and turn to services work to bring in revenue and keep our product development hopes alive. We went from $0 in revenue in November to an expected $40K in March, and we have enough potential business in the pipeline that if we close just part of it we will be over $100K in revenue a month by the fall. Almost all of that business came from relationships. Some of the relationships are relatively new, but still, my point is that no one contacted us through a web site and we haven't done any advertising. We just started talking to friends about the stuff we are doing and our network of relationships started sending us business. It saved us from having to shut down our own hopes and dreams. If we end up successful, it will be because of other people. It will be because of the relationships we have.    "

 

How did you feel about the article? Please do mention in your comments. Now I should say Thanks to all you readers for reading this article so interestingly.

 

If you feel that there are some issues which should come up in this blog or there are some issues which need to be addressed to the general audience of this blog, Please do feel free to mail me at m.gupta11@gmail.com . And yes don't forget to keep the subject as BLOG.

 

Happy Blogging

 

Regards

 

Manish K Gupta
FYMMS Semester II
Alkesh Dinesh Mody Institute of Financial and Management Studies
Vidya Nagri, Kalina
Mumbai
+91 98337 11550

 

PS  Personal Mails to be addressed to m.gupta11@gmail.com
       For other Mails please use manishkgupta@live.in

Government Educational Institutes ... better than Private Institutions. THINK AGAIN

Government Educational Institutes ... better than Private Institutions.

 

Really??

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With the entrance exam result season coming closer, the keenness of the students to fill the college option form has drastically increased. This is the time when media also gets interested into analysis of educational sector to increase it's TRP among youth. But whatever the media suggestions are and however it rates different colleges; the most preferred colleges by the students are government institutions. Let's analyze the reasons underlying this phenomenon.

 

I would like to start the article by emphasizing on almost any process that takes place in a Government or University college. Government Institutions have such long and frustrating process for everything that most of the times the students have no other choice than to leave the task uncompleted. I give a case to clear things. Students of a government institution won a competition and received prizes which were in the form of a cheque on Institute's name. Now the student had to wait nearly 6 months to get that petty amount cleared. Over and above this, the students had to go to office nearly daily for reminding the administration about the issue. If this is the way the activities are carried in an institution then god forbid me for complaining about it. It seems the institution does  not want to change. If we talk only in terms of Management Institutes, compare the infrastructure of any private institute and its University or Government counterpart. One clearly gets the hint of the differences. When talking in terms of Faculty only few know what is the actual status of the teaching going on in the institutes. Somewhere there are six professors in place of twenty-four like in the case of VJTI. (As expressed by Times of India in the Article "VJTI teachers draw two salaries on paper" dated March 24 2008), at others the institutes are dependent nearly completely on the mercy of visiting faculty. People may argue that visiting faculty forms an important part in any higher education institute but what if the majority faculty is working in contracts of 6 months, right from the director to the lowest peon.

Pick any government institution at random one would find following things common in every one of them. No body will be on time. The higher the post of an official, the late he gets in coming to the college, however near he stays to the college. The reason - We have lots of work which we can't explain to everyone. One wonders how private institute directors and faculty make it up on time. Is it the lax atmosphere or lack of financial and other motivation that's hindering the progress of these institutions.

 

Discipline is another aspect one observes in the Government Institutes. When the recent blunder by one of the Universities (marking absent in the final examinations to students who were present) occurred, there was a general uproar, very good, but if it would have occurred with some private or for that matter, with some privately owned autonomous institute, would the results be the same. I think the media would have forced the institute to apologize in pubic. Not following which the institute could face the danger of even losing its accreditation from the regulating authorities. Isn't this unfair? Why such step brother treatment?

 

Second important issue is of personal hygiene. Most of the University Departments or Government colleges do not have proper cloakrooms and water filters. The water coolers are not properly maintained in many such colleges. When compared to their private counter parts, most of the personal hygiene related facilities seem substandard. Same is the case with the hostels and canteens. One clearly notices the difference.

 

Like every other government agency, the management here believes in 'Passing the Buck'. Where as many-a-times the private institutions are like the American President who say "THE BUCK ENDS HERE". Whether this is due to job insecurity or other reasons, whatever the reasons maybe, the end result is proper delegation of authority. If a Government or University Management Institute students want to perform value addition activities, most of the times it happens (generally in newer institutions) that there is no or negligible support by the management. If this is the kind of approach the authorities keep for student motivation and upliftment,,, then I think preferring a private institute may sound better. The feather on the cap is the attitude of the administration. The response of the admin department is such that, they are giving favors when they do something. It does not matter weather the act is obligatory or really a favor on the part of the management.

 

The flow of information follows a such strict organizational hierarchy, that any decision requiring urgent attention, gets caught up in the organizational hierarchy and the decision is only taken when the time has gone and the decision becomes irrelevant.

 

Last but not  the least one thing that needs to be addressed is; the government institutions cannot pursue marketing or branding activities. (At least that is what I have been told) Whether be 'Above the line' or 'Below the line'. As a result, the only way, the name of a newly established Institution comes up in the industry is after its alumni gets into some higher positions in MNC's. Unfortunately this happens at a very slow rate. Take for example, the industry recognizes that Jamnalal Bajaj Management Institute is one of the best Institutes in the country after the IIM's. Why ?, It's because Industry has seen that Nitin Paranjpe is a student JBIMS or LIT college of Chemical engineering is one of the premier institute for Chemical Grads. It is so not because LIT is branding itself in such a manner but because the Alumni of LIT is in good position today.

 

After observing so many flaws in the government or University institutes one does not understand why students opt such institutes as their first choice. What can be argued as a good reason is that they have a low fee structure. Another point that can be argues upon is; most of the government institutes had their beginning long before private institutes even existed in India and they have build their brand with time. But what about New University and Government Institutes coming into existence. Will their future be as bright as their elder brothers. THINK BEFORE YOU LEAP

 

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Regards

 

Manish K Gupta
FYMMS Semester II
Alkesh Dinesh Mody Institute of Financial and Management Studies
Vidya Nagri, Kalina
Mumbai
+91 98337 11550