Doing Business In Turbulant Times For Slideshare 20 02 2010


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Doing Marketing in Turbulant Times

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Doing Business In Turbulant Times For Slideshare 20 02 2010

  1. 1. Doing Marketing in TURBULANT TIMES- By Maxwell Ranasinghe Development Alternatives - Training and Consulting -
  2. 2. What are Turbulent Times <ul><li>A general recession around the world </li></ul><ul><li>General lethargy in investing </li></ul><ul><li>Hesitation to to take risk </li></ul><ul><li>Your trading partners having problems </li></ul><ul><li>Substantial drop in your sales income </li></ul><ul><li>High cost of operations </li></ul><ul><li>Reduction in the reserves </li></ul><ul><li>Difficulty in paying recurrent expenses that you have been paying in time during the past </li></ul>Development Alternatives - Training and Consulting -
  3. 3. <ul><li>The help extended by the banks in better times are not available </li></ul><ul><li>Statutory payments have to be postponed -ETF, EPF, ESC, NBF, VAT, BTT, INCOME TAX </li></ul><ul><li>The de-motivation of staff in the face of not been able to provide them with required salaries and benefits or cutting down on certain perks </li></ul><ul><li>Doubts in the minds of employees whether the company will survive or not </li></ul><ul><li>Leaving of certain good employees </li></ul><ul><li>Firm getting entrapped in a vicious cycle of loosing income, loosing profit, loosing customers, loosing good employees and finally leading to bankruptcy </li></ul><ul><li>The properties getting vested with banks and financial institutes. </li></ul>Development Alternatives - Training and Consulting -
  4. 4. What is Marketing <ul><li>There are so many definitions </li></ul><ul><li>We do not want to go for an academic exercise in defining marketing but for sake of discussion, lets put marketing in simple terms </li></ul><ul><li>“ Identifying customers needs and wants and meeting them with goods and services better than others” </li></ul>Development Alternatives - Training and Consulting -
  5. 5. What is marketing in turbulent times? <ul><li>Maxwell Ranasinghe’s definition </li></ul><ul><li>“ Identifying customers needs and wants in a changed environment where customer is in difficulty as to run his business or rather struggling to survive in the market . Understanding and serving such needs and wants in a manner that the customer will feel that you are a provider of solutions to his needs in trying situations ” </li></ul>Development Alternatives - Training and Consulting -
  6. 6. What shall we do????? Development Alternatives - Training and Consulting -
  7. 7. <ul><li>What options available for us? </li></ul><ul><li>Not much </li></ul><ul><li>The only option is “ You need to adjust and fine tune your approach to the changing environment ” </li></ul><ul><li>Is it easy? </li></ul><ul><li>Absolutely not, it is really tough. </li></ul>Development Alternatives - Training and Consulting -
  8. 8. <ul><li>Why it is tough ? </li></ul><ul><li>You got to change </li></ul><ul><li>Is changing difficult ? Yes it is </li></ul><ul><li>Why ? </li></ul><ul><li>You will have to learn to change </li></ul><ul><li>You will change as a person and then change the company </li></ul>Development Alternatives - Training and Consulting -
  9. 9. A personal commitment required ! I will face the turbulent times with commitment and I will come out of the rut. <ul><li>I will be more vigilant to what is happening in the market place and will learn and understand very well the current situation </li></ul><ul><li>( PESTEEL) </li></ul><ul><li>I have the desire and commitment to do well in this period of difficulty </li></ul><ul><li>Every problem has an answer in built. </li></ul><ul><li>I am confident that I can win </li></ul><ul><li>I need to take things in to control rather than just letting things to happen. </li></ul><ul><li>I will manage and control my personal expenses well. </li></ul>Development Alternatives - Training and Consulting -
  10. 10. <ul><li>I am willing to forgo some of my perks and be a source of inspiration </li></ul><ul><li>I will change my negative attitudes . </li></ul><ul><li>I will contribute well to draw up new plans and cooperate with management and others to implement it. </li></ul><ul><li>I will put more effort in understanding customers than in the past </li></ul><ul><li>I will not forget the basics in marketing and customer care. </li></ul><ul><li>No body can prevent me from doing well except me. </li></ul>Development Alternatives - Training and Consulting -
  11. 11. *** Do the basics right <ul><li>Many firms forget the basics when they are doing well. </li></ul><ul><li>Many things are taken for granted </li></ul><ul><li>Effective and efficient management systems should be emphasised </li></ul><ul><li>The best way to get out of rut is to do the basics well </li></ul><ul><li>No quick fixes but you need to switch on to basics quickly </li></ul>Development Alternatives - Training and Consulting -
  12. 12. 1. Be mindful <ul><li>Be smart and thrifty, but don’t get panic. This, too, shall pass. </li></ul><ul><li>Economies go through cycles of expansion and contraction. It’s what we all learned in economics courses (back then, of course, we weren’t really paying attention, as we were not really affected. We were just students! ). </li></ul>Development Alternatives - Training and Consulting -
  13. 13. <ul><li>The trouble is, while academics can illustrate well on the cyclical economy, real business people have to live through difficult economic events . </li></ul><ul><li>We love the expansionary times, but the contractions can be very painful. </li></ul><ul><li>If you’re smart, you’ve managed your balance sheet well and can ride out a period of slow or no growth. </li></ul>Development Alternatives - Training and Consulting -
  14. 14. 2. Reduce waste totally and cut unnecessary expenses <ul><li>Have a Brain Storming Session within the staff on “ How to eliminate waste and reduce expenditure” It should come within. </li></ul><ul><li>There will be so much that you can do, just make an attempt. </li></ul><ul><li>You will find so many options. </li></ul>Development Alternatives - Training and Consulting -
  15. 15. <ul><li>E.g.. reduce expenditure, even selling a property and settling high interest loans may help, close down loss making ventures and concentrate more on the areas you have a competitive advantage. </li></ul><ul><li>Talk with banks and other suppliers and tell them that you need their advice and support to be afloat. </li></ul><ul><li>This is applicable not only for your company but personally to you as a staff member or a businessman. So personal expenses to be analysed and reduced to the bare minimum </li></ul>Development Alternatives - Training and Consulting -
  16. 16. 3. Marketing is muscle, not fat. Be careful about cutting it. <ul><li>Customer is your most important asset. You need to care about his requirements and offer the best possible. </li></ul><ul><li>Let marketing look after that. You need to talk to customer more. So do not start cutting budgets starting from advertising without an analysis </li></ul><ul><li>You need not initiate another vicious cycle </li></ul>Development Alternatives - Training and Consulting -
  17. 17. <ul><li>Marketing money in a recession are like oxygen on Mt. Everest—the less there is in the surrounding environment, the more valuable the amount you possess becomes. </li></ul><ul><li>Cutting your marketing spending is a sure way to give ground to competitors who may be more aggressive during the downturn. </li></ul><ul><li>You may change the way you communicate with the market but you need to keep on communicating with the market about the offers that you make. You just cant cut the total advertising budget. </li></ul>Development Alternatives - Training and Consulting -
  18. 18. 4. Don’t lose focus by chasing business you wouldn’t normally want. <ul><li>When clients and customers get nervous about the economy, they cut back their spending. For you that could mean fewer transactions, smaller purchases, or possibly both. </li></ul><ul><li>But if you try to broaden your service appeal to please a wider audience, chances are you’ll make your best customers even less satisfied, giving them one more reason to stay home or spend less </li></ul>Development Alternatives - Training and Consulting -
  19. 19. <ul><li>. </li></ul><ul><li>Do your best to stick to your customer base and enhance the value you provide to your best customers. They may decide to make their cutbacks in areas other than yours. </li></ul>Development Alternatives - Training and Consulting -
  20. 20. 5. Don’t Discount. <ul><li>When companies are hit with declining sales and shrinking margins , the options can start to look bleak. </li></ul><ul><li>It’s easy to rationalize discounting during a downturn, for your company’s sake (”it helps to drive business”) as well as for the sake of your customers (”they’re struggling and need the help”). </li></ul><ul><li>Attacking one challenge( sales)–by lowering prices, can make the other challenge( margins) worse. </li></ul>Development Alternatives - Training and Consulting -
  21. 21. <ul><li>Best way is to show that you give the “best bundle of benefits” to your customer </li></ul><ul><li>But one powerful way to enhance both sales and margins in a downturn is to make your Sales Force More Effective. </li></ul><ul><li>Many companies in the world who had that attitude among other changes have faced the situation well. </li></ul>Development Alternatives - Training and Consulting -
  22. 22. 6. Do not be Pessimistic <ul><li>There’s lot of hope that the world will come over the current crisis. </li></ul><ul><li>Sri Lanka is not affected very much. </li></ul><ul><li>We may pull out of our economic rut more quickly than anticipated </li></ul><ul><li>But clients and customers will still need to eat. They still need transportation. They still seek entertainment, education, food & clothing, medicines, exercising, vacations, mobile phones, internet, perfume, office supplies, computer servers, agricultural equipment and machinery. </li></ul>Development Alternatives - Training and Consulting -
  23. 23. Practical Model in doing business in turbulent times <ul><li>T argeted offerings </li></ul><ul><li>O ptimise tools and procedures </li></ul><ul><li>M anage Performance </li></ul><ul><li>S ales Resource Allocation </li></ul>Development Alternatives - Training and Consulting -
  24. 24. Targeted offerings <ul><li>Analyse and categorise your current customer base with the criteria – the volume of sales, payment patterns, future buying patterns, relationship etc. </li></ul><ul><li>Ascertain who are your best customers </li></ul><ul><li>Which customers will still be strong and keep buying in a down market? </li></ul><ul><li>And which prospects should you go after now? </li></ul><ul><li>Develop and Strengthen the relationships high potential customers </li></ul><ul><li>Once you identify these high potential customers you can create a “ Prioritized Map” of the market as a guide for your sales efforts. </li></ul>Development Alternatives - Training and Consulting -
  25. 25. Optimized tools and procedures. <ul><li>Sales cycles always lengthen in a downturn. </li></ul><ul><li>But close, disciplined management approach to the “Prioritized Map” can improve win rates. </li></ul><ul><li>Systematic channeling of leads to reps; routine, detailed account and constant discussions and monitoring will help </li></ul><ul><li>Meticulous tracking of customers’ readiness to purchase under current cash-and-credit positions. </li></ul>Development Alternatives - Training and Consulting -
  26. 26. Performance Management. <ul><li>Territories and quotas that made sense last year may not be realistic in today’s conditions. </li></ul><ul><li>May have to change the decision making on past historical records. </li></ul><ul><li>New realistic targets to be set on future predictions not based on the past records. </li></ul>Development Alternatives - Training and Consulting -
  27. 27. Sales Resource Allocation <ul><li>Measure the time reps spend in front of customers; if it’s less than it should be, consider channeling some functions to support staff or rearranging territories to minimize travel. </li></ul><ul><li>A downturn also offers opportunities to beef up less-expensive sales channels and advertising channels. </li></ul><ul><li>Be creative and find novel ways and means of communicating and distributing your products </li></ul><ul><li>E.g.. telesales or web based sales, Mobile Sales etc. BTL advertising and publicity. </li></ul>Development Alternatives - Training and Consulting -
  28. 28. <ul><li>So take everything that we discussed into consideration seriously. </li></ul><ul><li>Have your “Priority Map” to face the situation. </li></ul><ul><li>Fine tune your Marketing Effort to reach the destination of your “Priority Map” </li></ul><ul><li>Then go back to basics. There is no other option. </li></ul>Development Alternatives - Training and Consulting -
  29. 29. Go back to basics <ul><li>Avoid mistakes, be mindful of the points discussed , understand more about the changing markets, do not forget the basics. </li></ul><ul><li>Re visit the basics and do basics better than what you have been doing. </li></ul>Development Alternatives - Training and Consulting -
  30. 30. You need to work hard towards success. We, the Management Consultants, can preach what to do but you a got to do it . Development Alternatives - Training and Consulting -