Monday, 28 January 2013

Company-Supplier-Vendor relationship

Vendors and suppliers are very important for any business. This service provides a safe hand to build awareness and delivery of product or services to the customers and do add value to the business. All business should maintain good relationship with vendor and supplier and in long run without mutual benefit it never works. So, mutual benefit is necessary for building strong relationship. In this competitive scenario this becomes vital.

The foundation of good relationship depends upon Respect, Trust, Mutual benefits and Fairness from both sides.

There are many facts in a vendor and supplier relationship to getting the perfect deal.
The facts are;
What is in it for me,
What is in it for our relationship for long run,
What do matters to my business,
Can they deliver at promised time or within time interval.

Wednesday, 16 January 2013

Marketing Myopia

Marketing Myopia

Marketing Myopia is short sightedness or narrow ness of a company to define its business. It may be of product oriented or customer oriented.

  Product orientation – Company defines itself as a product producer of quality of product at low cost. (Product concept-an old marketing concept)

 Customer orientation- Company define itself as a satisfier of customer needs and wants (Modern Marketing concept).

 Both concepts are good, holds good at a certain level but beyond that leads Myopia.
Because Marketers do think we are doing good and getting profit, but they don’t consider “what will be the future of competition”.

  Managers prefer to work in same industry in which they were recruited first; even companies  prefer Managers from same sector in which they are dealing. It is also a cause of leading Marketing Myopia.

Human resource department should recruit Managers from different- different   industry, so that problems can be scrutinised and future of competition can define well, and therefore Myopia can be avoided.

 Case of Tata Nano

 Why it is failure in market?
 Answer-  Due to Marketing Myopia.

Nano is a good car as per price and product, even it is customer oriented and law of demand holds good but this Car is considered failure in the market.

  Marketing of Tata Nano is pure concept of Flanking Warfare (making a parallel market in a given market).

Car market is niche market and Tata Nano made a sub market in that market. That sub market was considered a low priced car market for every one and Car renounced as Peoples’ car => “Aam Admi car”.

 Here  Marketing Myopia is acting. 

 The perception behind having a car is having a prestigious product considered as value additional product.
Means, having a Car percept -“I am not general “.  And perception can’t change (generally).

The future of competition  of Car market is not in the way of low priced or lowest price.

The competition of Car market is in fields of style and value creation.