Management/ LeadershipManagement/ LeadershipDevelopment ProgrammeDevelopment Programme

MANAGEMENT/LEADERSHIP MANAGEMENT/LEADERSHIP DEVELOPMENTDEVELOPMENT

Today’s manager lives in a world of rapid change, Today’s manager lives in a world of rapid change, and yet the rate of change is likely to increase in and yet the rate of change is likely to increase in the years ahead. Unless he can keep up with this the years ahead. Unless he can keep up with this change, he’s likely to find himself obsolete – change, he’s likely to find himself obsolete – perhaps unpromotable or even unemployable.perhaps unpromotable or even unemployable.

Ernest Dale 1966Ernest Dale 1966

General ManagerGeneral Manager

The effective general manager is a specialist, and a team player. The effective general manager is a specialist, and a team player. He/She depends on a painstakingly detailed knowledge of the He/She depends on a painstakingly detailed knowledge of the industry, technology, product, market and competitors – industry, technology, product, market and competitors – knowledge that takes years to develop. Equally important are knowledge that takes years to develop. Equally important are the large, informal networks of cooperative relationships that the large, informal networks of cooperative relationships that help him/her to make crucial decisions. It is people – help him/her to make crucial decisions. It is people – sometimes hundreds of them, from colleagues and customers sometimes hundreds of them, from colleagues and customers to bosses and subordinates - who keep the manager in touch to bosses and subordinates - who keep the manager in touch with a mass of complex information. Outsiders, no matter with a mass of complex information. Outsiders, no matter how talented or well trained, rarely do as well. how talented or well trained, rarely do as well.

GREATER MANAGEMENTGREATER MANAGEMENTKNOW-HOW WILL:KNOW-HOW WILL:

1.1. Lead to better performance by enabling the Lead to better performance by enabling the manager to increase the output and quality of the manager to increase the output and quality of the work group.work group.

1.1. Help the manager better understand the objectives Help the manager better understand the objectives and functions of the company as a whole and the and functions of the company as a whole and the thinking of his/her superiors. As a result he/she will thinking of his/her superiors. As a result he/she will be able to ‘talk the language’ of higher managers be able to ‘talk the language’ of higher managers and gain a better hearing for recommendations and and gain a better hearing for recommendations and suggestions.suggestions.

1.1. Promote a better understanding of the way in which Promote a better understanding of the way in which the managers’ group fits in with other groups, make the managers’ group fits in with other groups, make his/her a more effective team worker and one whom his/her a more effective team worker and one whom other managers will respect and like to work with.other managers will respect and like to work with.

Management/Leadership Management/Leadership Development Development Management ability is the single most important Management ability is the single most important

determinant of business success.determinant of business success. Management development can take place both on and off Management development can take place both on and off

the job.the job.On-The-Job:On-The-Job:

People learn by doing their jobs.People learn by doing their jobs. Performance feedback (appraisal)Performance feedback (appraisal) Coaching.Coaching. Job rotation.Job rotation. New assignmentsNew assignments Solving daily problems.Solving daily problems. Taskforces, Teams, Meetings.Taskforces, Teams, Meetings.

Off-the-Job Off-the-Job internal/externalinternal/external In-company programmesIn-company programmes External programmesExternal programmes Professional associationsProfessional associations Self-development/reading Self-development/reading make suitable materials available. (resource make suitable materials available. (resource

centre)centre) Lifelong learning Lifelong learning The entrepreneurial society of to-day demands that The entrepreneurial society of to-day demands that

individuals take responsibility for their own self individuals take responsibility for their own self development and their own careers.development and their own careers.

BUSINESS FUNCTIONSBUSINESS FUNCTIONS

Planning/Business Planning/Corporate PlanningPlanning/Business Planning/Corporate Planning Research and DevelopmentResearch and Development ProductionProduction Finance and AccountingFinance and Accounting PurchasingPurchasing Marketing(Marketing, Sales & Distribution)Marketing(Marketing, Sales & Distribution) Personnel / Human resourcesPersonnel / Human resources EngineeringEngineering Legal, Patents, Trademarks, Taxes, InsuranceLegal, Patents, Trademarks, Taxes, Insurance Public RelationsPublic Relations Internal AuditingInternal Auditing Management Information SystemsManagement Information Systems

Management / LeadershipManagement / Leadership

What is a manager?What is a manager?

The The Manager’s Manager’s

RoleRole Getting things Getting things done done

economically by economically by other peopleother people

Thinking

Making Decisions

Communicating

D.I.Y.

Management / LeadershipManagement / Leadership

Top-Level

Middle-Level

Lower-Level

Manageme

nt

Work D.I.Y.

Work

Management PrioritiesManagement Priorities(The Three priorities of management)(The Three priorities of management)

WorkWorkWhat has to be done.

When it must be done by.

What quality is required

MoneyMoney What resources are available.

How to use for best value.

Is any avoidable waste going on.

PeoplePeopleHow best to use their time and abilities.

What motivates them.

How to coordinate their activities.

Providing Providing leadership – leadership – getting effective getting effective performanceperformance

Making thing’s Making thing’s happen –using time happen –using time efficientlyefficiently

Getting value for Getting value for money – using money – using resources resources economically.economically.

Decisions Decisions Decisions Decisions DecisionsDecisions

Delegating the Decision - MakingDelegating the Decision - Making

Delegating the Decision Making

The manager is still responsible

Without this the manager can’t delegate

ResponsibilityResponsibility The subordinates acceptance of a duty to take care of a specific area of work

The manager must give this away

Without this, delegation doesn’t exist.

AuthorityAuthority

The subordinates right to have his decisions acted on without interference Without this the

manager is dumping not delegating

AccountabilitAccountability y The managers right to know how his subordinate is using his authority

The manager requires this

The manager requires this

Management SkillsManagement Skills

1.1. Technical SkillsTechnical Skills

The understanding of and ability to perform specific The understanding of and ability to perform specific tasks:tasks:

SellingSelling MarketingMarketing AccountingAccountingManufacturingManufacturing

EngineeringEngineering PurchasingPurchasing SurgerySurgery

Mastery of methods, techniques and tools/equipmentMastery of methods, techniques and tools/equipment

Specialized knowledge and analytical ability. Specialized knowledge and analytical ability.

Management SkillsManagement Skills1.1. Human Skills (Emotional Intelligence)Human Skills (Emotional Intelligence) Refers to the capacity for recognising our own feelings and Refers to the capacity for recognising our own feelings and

those of others, for motivating ourselves and for managing those of others, for motivating ourselves and for managing emotions in ourselves and in our relationships.emotions in ourselves and in our relationships.

Being able to monitor and regulate one’s own and others Being able to monitor and regulate one’s own and others feelings and to use feelings to guide thought and actions.feelings and to use feelings to guide thought and actions.

The ability to work with and through other people and to work The ability to work with and through other people and to work effectively as a group member.effectively as a group member.

Ability to motivate, facilitate, nurture, coach, coordinate, lead, Ability to motivate, facilitate, nurture, coach, coordinate, lead, communicate and resolve conflicts, ability to bring out the best communicate and resolve conflicts, ability to bring out the best in people. in people.

Emotional competencies play a far greater role in superior job Emotional competencies play a far greater role in superior job performance than do cognitive ability and technical expertise.performance than do cognitive ability and technical expertise.((Pure intellect and expertise)Pure intellect and expertise)

Emotional CompetenciesEmotional Competencies1.1. Self – Awareness Self – Awareness “Know Thyself”“Know Thyself”

Having a deep understanding of our emotions, Having a deep understanding of our emotions, strengths, weaknesses and needs.strengths, weaknesses and needs.

Being aware of both our mood and our thoughts about Being aware of both our mood and our thoughts about that mood.that mood.

Recognising one’s emotions and their effects.Recognising one’s emotions and their effects.

Accurate self – assessments: Knowing one’s strengths Accurate self – assessments: Knowing one’s strengths and limits.and limits.

A strong sence of one’s self- worth and capabilities.A strong sence of one’s self- worth and capabilities.

Knowing when to ask for help.Knowing when to ask for help.

Emotional CompetenciesEmotional Competencies

1.1. Self – Regulation / ControlSelf – Regulation / Control

Keeping disruptive emotions and impusles in check.Keeping disruptive emotions and impusles in check.

Remaining calm despite provocation.Remaining calm despite provocation.

Taking responsibility for personal performance.Taking responsibility for personal performance.

Hold themselves accountable for meeting their Hold themselves accountable for meeting their objectives.objectives.

Maintaining standards of honesty and integrity.Maintaining standards of honesty and integrity.

Flexibility in handling change.Flexibility in handling change.

Being comfortable with novel ideas, approaches and Being comfortable with novel ideas, approaches and new informationnew information

Emotional CompetenciesEmotional Competencies

1.1. Self – MotivationSelf – Motivation

Desire to achieve for the sake of achievement.Desire to achieve for the sake of achievement.

Striving to improve or meet a standard of excellence.Striving to improve or meet a standard of excellence.

Commitment to the goals of the organisation.Commitment to the goals of the organisation.

Initiative / readiness to act on opportunities.Initiative / readiness to act on opportunities.

Optimism : Persistence in pursuing goals despite Optimism : Persistence in pursuing goals despite obstacles and setbacks.obstacles and setbacks.

Emotional CompetenciesEmotional Competencies1.1. EmpathyEmpathy

Awareness of others’ feelings, needs and concerns.Awareness of others’ feelings, needs and concerns.

Understanding others: Sensing others’ feelings and Understanding others: Sensing others’ feelings and perspectives and taking an active interest in their perspectives and taking an active interest in their concerns.concerns.

Service orientation: Anticipating, recognising and Service orientation: Anticipating, recognising and meeting customers’ needs. meeting customers’ needs.

Political awareness: Reading a groups’ emotional Political awareness: Reading a groups’ emotional currents and power relationships.currents and power relationships.

Developing others: Sensing others’ development needs Developing others: Sensing others’ development needs and bolstering their abilities.and bolstering their abilities.

Emotional CompetenciesEmotional Competencies1.1. Social Skill (Social Intelligence)Social Skill (Social Intelligence)

The degree to which we ‘get along with’ and relate to The degree to which we ‘get along with’ and relate to other people around us.other people around us.

Ability to induce desirable responses in others.Ability to induce desirable responses in others.

Friendliness with a purpose : moving people in the Friendliness with a purpose : moving people in the direction you desire.direction you desire.

Ability for finding common ground with all kinds of Ability for finding common ground with all kinds of people.people.

Ability for building rapport.Ability for building rapport.

Ability to use tact and diplomacy.Ability to use tact and diplomacy.

Establishing effective working relationships, based on Establishing effective working relationships, based on ordinary curtesy. ordinary curtesy.

Emotional CompetenciesEmotional CompetenciesSocial SkillSocial Skill

Interacting with people effectively to maintain long-term Interacting with people effectively to maintain long-term relationships.relationships.

Assessing and understanding other people and their concerns.Assessing and understanding other people and their concerns.

Awareness of the likely impact of actions on others; adjusting Awareness of the likely impact of actions on others; adjusting style as necessary.style as necessary.

Influence : Using effective tactics for persuasion.Influence : Using effective tactics for persuasion.

Communication: Listening openly and sending convincing Communication: Listening openly and sending convincing messages.messages.

Conflict-Management: Negotiating and resolving disagreements. Conflict-Management: Negotiating and resolving disagreements.

Collaboration and Cooperation: Working with others towards Collaboration and Cooperation: Working with others towards shared goals.shared goals.

Emotional CompetenciesEmotional CompetenciesSocial SkillSocial Skill

Building Bonds: Nurturing relationships.Building Bonds: Nurturing relationships.

Team Capabilities: Working in teams.Team Capabilities: Working in teams.

Leadership: Inspiring and guiding individuals and Leadership: Inspiring and guiding individuals and groups.groups.

Change Catalyst: Initiating or managing change.Change Catalyst: Initiating or managing change.

Networking: Making connections.Networking: Making connections.

Negotiating.Negotiating.

Social Graces: Showing appreciation / saying thanks / Social Graces: Showing appreciation / saying thanks / greetings. greetings.

Emotional IntelligenceEmotional Intelligence

““Personality”Personality”

““Character”Character”

““Soft Skills”Soft Skills”

““Social Competence”Social Competence”

Emotional IntelligenceEmotional IntelligenceQualities and Characteristics of Social Skill/Social IntelligenceQualities and Characteristics of Social Skill/Social Intelligence

1.1. The confidence to be yourself.The confidence to be yourself.

1.1. An abiding interest in other people.An abiding interest in other people.

1.1. Respect for others.Respect for others.

1.1. Empathy and the ability to read and use body language to do Empathy and the ability to read and use body language to do this.this.

1.1. Awareness of when it is appropriate to speak and when to listen.Awareness of when it is appropriate to speak and when to listen.

1.1. A positive attitude.A positive attitude.

1.1. A life vision – to know where you are going.A life vision – to know where you are going.

Management SkillsManagement Skills

1.1. Conceptual SkillsConceptual Skills

The ability to see the organisation as a whole and the The ability to see the organisation as a whole and the relationship among its parts.relationship among its parts.

Big – picture thinking.Big – picture thinking.

Helicopter view.Helicopter view.

Ability to think strategically.Ability to think strategically.

Ability to take the broad, long-term view. Ability to take the broad, long-term view.

Management Functions / ActivitiesManagement Functions / Activities

1.1. Planning.Planning.

2.2. Organising.Organising.

3.3. Communicating.Communicating.

4.4. Innovating.Innovating.

5.5. Representing.Representing.

6.6. ControllingControlling

7.7. Motivating.Motivating.

8.8. Staffing / Development.Staffing / Development.

9.9. Leading.Leading.

10.10. Coordinating.Coordinating.

11.11. Directing.Directing.

The Four Management Functions The Four Management Functions (PLOC)(PLOC)(The management process)(The management process)

1.1. Planning.Planning.Select goals and ways to attain them.Select goals and ways to attain them.

1.1. Leading.Leading.Use influence to motivate employees.Use influence to motivate employees.

1.1. Organising.Organising.Assign responsibility for task accomplishment.Assign responsibility for task accomplishment.

1.1. Controlling.Controlling.Monitor activities and make corrections. Monitor activities and make corrections.

Management Functions / ActivitiesManagement Functions / Activities

1.1. PlanningPlanning ““Planning is the basic process we use to select our goals Planning is the basic process we use to select our goals

and determine how to achieve them.”and determine how to achieve them.” ““Planning is looking ahead and making provisions for the Planning is looking ahead and making provisions for the

future.”future.” Thinking ahead.Thinking ahead. ““Begin with setting goals/objectives/targets and include Begin with setting goals/objectives/targets and include

specifying the steps needed to reach them.”specifying the steps needed to reach them.” Scheduling the tasks.Scheduling the tasks. ““Deciding what to do and how to achieve it.”Deciding what to do and how to achieve it.” Understanding the scope of what you want to get done.Understanding the scope of what you want to get done. Every manager should set objectives and plan how to Every manager should set objectives and plan how to

reach them.reach them. Where are we now?Where are we now? Where do we want to go? Goals/objectives/targets.Where do we want to go? Goals/objectives/targets. How do we get there? Strategy. How do we get there? Strategy.

Management Functions / ActivitiesManagement Functions / Activities1.1. Organising.Organising.

Arranging resources.Arranging resources.

Dividing the work into tasks/duties that can Dividing the work into tasks/duties that can be handled by one person and providing be handled by one person and providing means of coordination.means of coordination.

Grouping activities together.Grouping activities together.

Defining jobs – allocating work.Defining jobs – allocating work.

Organising to accomplish tasks.Organising to accomplish tasks.

Who reports to whom.Who reports to whom.

Management Functions / ActivitiesManagement Functions / Activities

1.1. Communicating.Communicating. Ability to interact with others, both within and outside Ability to interact with others, both within and outside

organisations; plays a critical role in our effectiveness organisations; plays a critical role in our effectiveness as a manager.as a manager.

The communication process contains:The communication process contains: Sender.Sender. Receiver.Receiver. Message.Message. Medium.Medium. Action by the receiver.Action by the receiver.

Improving Communication SkillsImproving Communication Skills

1.1. Don’t oversell an idea.Don’t oversell an idea.

2.2. Don’t give up too soon. Persistence pays off.Don’t give up too soon. Persistence pays off.

3.3. Watch your timing. Choose the right moment to put your Watch your timing. Choose the right moment to put your story across.story across.

4.4. Plan carefully before you write or speak.Plan carefully before you write or speak.

5.5. Keep language simple and to the point.Keep language simple and to the point.

6.6. Use sketches or diagrams that help make a report or talk Use sketches or diagrams that help make a report or talk more interesting and its meaning clearer.more interesting and its meaning clearer.

7.7. Anticipate objections by the other person.Anticipate objections by the other person.

8.8. Invite participation.Invite participation.

9.9. Learn to listen intently as you converse.Learn to listen intently as you converse.

10.10. Leave enough time for discussion.Leave enough time for discussion.

““If people around you do not understand you, fall down before If people around you do not understand you, fall down before them and beg their forgiveness; for in truth you are to them and beg their forgiveness; for in truth you are to blame” blame”

Management Functions / ActivitiesManagement Functions / Activities1.1. InnovatingInnovating

Creativity, New Idea, New Approach, New Thinking , Creativity, New Idea, New Approach, New Thinking , New Invention, Novel Idea, Fresh Idea, Innovation, New Invention, Novel Idea, Fresh Idea, Innovation, Change.Change.

Looking for new, better ways of doing things.It may Looking for new, better ways of doing things.It may mean discarding old procedures that no longer are mean discarding old procedures that no longer are needed.needed.

Creativity is thinking up new ideas and discovering Creativity is thinking up new ideas and discovering new things.new things.

Innovation is using these new and sometimes old ideas Innovation is using these new and sometimes old ideas / things in the market place. / things in the market place.

Sees beyond existing work practices and develops new Sees beyond existing work practices and develops new ways of doing own job.ways of doing own job.

Prepared to challenge existing positions, put forward Prepared to challenge existing positions, put forward own ideas own ideas

Management Functions / ActivitiesManagement Functions / Activities1.1. Representing.Representing.

Representing and supporting the views and decisions of Representing and supporting the views and decisions of management to own subordinates and the views and management to own subordinates and the views and feelings of subordinates to management.feelings of subordinates to management.

Representing the interests of the department to other Representing the interests of the department to other departments and outside contacts.departments and outside contacts.

Representing the company to the outside world.Representing the company to the outside world.

1.1. Controlling.Controlling. Checking on progress to determine whether plans are Checking on progress to determine whether plans are

being fulfilled.being fulfilled. Monitoring activities.Monitoring activities. Knowing what’s going on.Knowing what’s going on. Recognising problems.Recognising problems. If performance is falling short of what is necessary to If performance is falling short of what is necessary to

fulfil the goals, the managter must take steps to correct fulfil the goals, the managter must take steps to correct the difficulties.the difficulties.

1.1. Motivating.Motivating. What’s motivating to somebody, is what’s motivating to What’s motivating to somebody, is what’s motivating to

somebody. somebody.

Management Functions / ActivitiesManagement Functions / Activities1.1. Staffing/DevelopingStaffing/Developing

Filling positions with the most qualified people Filling positions with the most qualified people available.available.

Recruitment, selection, training/development, Recruitment, selection, training/development, rewarding etc.rewarding etc.

Making improvements.Making improvements. Appraising peoples capacity to improve.Appraising peoples capacity to improve. Creating opportunities for learning.Creating opportunities for learning. Setting standards of performance.Setting standards of performance.

1.1. LeadingLeading Creating vision, culture, values etc. Creating vision, culture, values etc. Communicating goals.Communicating goals. Motivating employees to perform at a high level.Motivating employees to perform at a high level. Developing teams.Developing teams. Organising resources.Organising resources. Problem solving and decision making. Problem solving and decision making.

Management Functions / ActivitiesManagement Functions / Activities

1.1. Coordinating.Coordinating. Ensuring that the diverse activities of the organisation Ensuring that the diverse activities of the organisation

are channelled towards the accomplishment of the are channelled towards the accomplishment of the stated goals.stated goals.

1.1. Directing.Directing. Telling people what to do.Telling people what to do. Seeing that they do it to the best of their ability.Seeing that they do it to the best of their ability. Leading them towards the right goals by the right Leading them towards the right goals by the right

route.route.

ManagersManagers Never satisfied with present performance.Never satisfied with present performance.

Always trying to do things better.Always trying to do things better.

Constantly learning.Constantly learning.

Aware of principles and skills.Aware of principles and skills.

Willing to experiment.Willing to experiment.

Top Ten Tips for ManagersTop Ten Tips for Managers

Tip 1Tip 1Agree job requirements with your superior. Agree job requirements with your superior.

(managing yourself)(managing yourself) Identify key result areas for the position.Identify key result areas for the position.

KRA’s: KRA’s: SalesSales Costs Costs EarningsEarnings Staff selectionStaff selection Training Training New product introductionsNew product introductions Key customersKey customers Output Output QualityQuality TestsTests EquipmentEquipment Customer serviceCustomer service

Top Ten Tips For ManagersTop Ten Tips For Managers

Set standards of performance by which success can be Set standards of performance by which success can be measured.measured.

Goals for each KRAGoals for each KRAAgree jointly / motivationAgree jointly / motivationExamples of goals:Examples of goals:

Increase sales of product x by 10% 2006Increase sales of product x by 10% 2006 Recruit new sales person before end March 2006Recruit new sales person before end March 2006 Achieve FDA approval within specified periodAchieve FDA approval within specified period Adopt new procedure in line with FDA requirements Adopt new procedure in line with FDA requirements

within specified periodwithin specified period

Process for the periodic review of performance eg. Process for the periodic review of performance eg. Quarterly reviews throughout the yearQuarterly reviews throughout the year

Tip 1Tip 1

Top Ten Tips For ManagersTop Ten Tips For ManagersTip 2Tip 2

Be effective and efficient.Be effective and efficient. (Managing you time)(Managing you time)

Effective: Do the right things.Effective: Do the right things.

The key to effectiveness as a manager is to spend your time on your The key to effectiveness as a manager is to spend your time on your key result areas.key result areas.

You can only be effective if you are clear about the things which are You can only be effective if you are clear about the things which are important to success in your work.important to success in your work.

Efficient: Do things right.Efficient: Do things right.

It involves amongst other things making the best use of your time.It involves amongst other things making the best use of your time.Guidelines:Guidelines:

Use some form of time managemnt system.Use some form of time managemnt system. Distinguish between urgent and important tasks.Distinguish between urgent and important tasks. Spend most time on your priorities.Spend most time on your priorities. Develop plans for dealing with time-wasters.Develop plans for dealing with time-wasters.

Top Ten Tips For ManagersTop Ten Tips For ManagersTip 3Tip 3

Let your team determine your leadership Let your team determine your leadership style.style.

(Managing others.) TellTell:

when your group is inexperiencied and uncertain. make the decision yourself and simply inform.

SellSell: when your group needs guidance but must be brought

along with the decision. make the decision yourself and sell it to them.

ConsultConsult: when the group may have important information which

should be taken into account. Obtain their opinions before making a decision yourself.

ParticipateParticipate:

when they are just as able to make the decision as you are. involve them in the decision making process.

Democratic: Leave the decision to your work group.

Top Ten Tips For ManagersTop Ten Tips For ManagersTip 4Tip 4

Accept personal responsibility for the Accept personal responsibility for the performance of your staff. performance of your staff. (Managing performance)

Agree key result areas and standards of performance.

Make sure you delegate effectively.

Monitor performance on a regular basis.

Ensure regular feedback to let people know how they are doing.

Recognise and reward that performance.

Be positive in addressing performance problems.

Top Ten Tips For ManagersTop Ten Tips For Managers

Tip 5Tip 5

Say thanks with impact.Say thanks with impact.

Identify the behaviours you wish to reinforce.

Get timing right depending on the task and the need of the employee

Top Ten Tips For ManagersTop Ten Tips For Managers

Tip 6Tip 6

Use informal rewards.Use informal rewards.

You may have little control over the formal rewards structures but that should not stop you doing things that are within your control. The size of the reward is not as important as the fact that it is given.

Coffee, lunch. Theatre tickets. Recognition – spend more time with them. Provide personal development

Give additional training.

Top Ten Tips For ManagersTop Ten Tips For ManagersTip 7Tip 7

The manager must accept responsibility for bad as well as The manager must accept responsibility for bad as well as good performance.good performance.

It is a good rule for the manager to take responsibility for poor performance until the contrary is proven.

Identify the performance gap

Analyse the cause of the problem: The individual: - ability, training, personal problems, stress. The work: - clarity of responsibility, overload, equipment, work methods,

conflicting duties. The manager: - poor leadership, lack of feedback, lack of recognition,

unfair rewards.

Top Ten Tips For ManagersTop Ten Tips For Managers

Work with your staff to help solve the problems.Work with your staff to help solve the problems.

Review the performance problem and agree the gap.Review the performance problem and agree the gap. Identify the causes of the problem.Identify the causes of the problem. Agree action plans to resolve the problem.Agree action plans to resolve the problem. Set a follow-up date to review progressSet a follow-up date to review progress

“ “I’ve spent 30 years going around factories. When you I’ve spent 30 years going around factories. When you know something’s wrong, nime times out of ten it is the know something’s wrong, nime times out of ten it is the management – in truth because the people are not being management – in truth because the people are not being led right. And bad leaders invariably blame their people”led right. And bad leaders invariably blame their people”

Sir. John Harvey – JonesSir. John Harvey – Jones

Tip 7Tip 7

Top Ten Tips For ManagersTop Ten Tips For ManagersTip 8Tip 8

Be prepared to break the mould.Be prepared to break the mould.

People face and overcome a wide variety of problems everyday. A machine breaks down, materials are late, a customer wants a rush order. Companies survive because they have learned to overcome problems. Very often they are not as good when they face a new problem.

The real challenge in management is doing something new. Get your people involved in creative problem solving. Some techniques are required:

Brainstorming; the generation of as many ideas as possible by a group operating to a fixed timeframe.

Top Ten Tips For ManagersTop Ten Tips For ManagersTip 9Tip 9

Its OK for employees to air their grievances.Its OK for employees to air their grievances.

Make it easy for employees to raise issues with you and to Make it easy for employees to raise issues with you and to go to a higher authority if necessary to have them resolved.go to a higher authority if necessary to have them resolved.

Be open minded in considering their problems.Be open minded in considering their problems.

The way in which you handle the grievance is as important The way in which you handle the grievance is as important as the outcome.as the outcome.

Let the employee know that he/she is entitled to raise the Let the employee know that he/she is entitled to raise the grievance.grievance.

Look for mutually satisfactory ways to resolve the grievance.Look for mutually satisfactory ways to resolve the grievance. If the grievance must be turned down, explain the reasons If the grievance must be turned down, explain the reasons

carefully and check that the employee understands. Explain carefully and check that the employee understands. Explain the next steps if th employee wishes to bring the matter the next steps if th employee wishes to bring the matter further. further.

Top Ten Tips For ManagersTop Ten Tips For ManagersTip 10Tip 10

Use discipline as a last resort.Use discipline as a last resort.

Conduct a full and fair investigation.

Make sure the penalty fits the crime.

Seek professional advice when handling dismissal.

Success as a ManagerSuccess as a Manager

Productive – getting things done.Productive – getting things done. Setting challenging goals for self and team.Setting challenging goals for self and team. Demonstrating technical competance.Demonstrating technical competance. Maintaining effective relationships with superiors, Maintaining effective relationships with superiors,

colleagues and subordinates.colleagues and subordinates. Fluency in expressing ideas.Fluency in expressing ideas. Flexibility in dealing with different situations.Flexibility in dealing with different situations.

There is no best way to manage. The There is no best way to manage. The circumstances dictate what needs to be done. circumstances dictate what needs to be done. The top ten tips are intended to give you the The top ten tips are intended to give you the manager a choice of tools to bring with you manager a choice of tools to bring with you on your assignment. on your assignment.

Top Ten Tips For ManagersTop Ten Tips For Managers

1.1. Agree job requirements with your superior.Agree job requirements with your superior.

2.2. Be effective and efficient.Be effective and efficient.

3.3. Let your team determine your leadership style.Let your team determine your leadership style.

4.4. Accept personal responsibility for the performance Accept personal responsibility for the performance of your staff.of your staff.

5.5. Say thanks with impact.Say thanks with impact.

6.6. Use informal rewards.Use informal rewards.

7.7. The manager must accept responsibility for bad as The manager must accept responsibility for bad as well as good performance.well as good performance.

8.8. Be prepared to break the mould.Be prepared to break the mould.

9.9. Its OK for employees to air their grievances.Its OK for employees to air their grievances.

10.10. Use discipline as a last resort.Use discipline as a last resort.

Leadership in the New AgeLeadership in the New Age

MissioMissionn why are we here? GoalsGoals

where are we going?

FeedbackFeedback How are we doing?

RewardsRewards What’s in it for us?

Support Support Where do we go for help?

The five leadership performance factors

How does the leader-manager influence results?

By the way he/she manages the five critical leadership factors.

““Being responsible sometimes means Being responsible sometimes means pissing people off”pissing people off”

Good leadership involves responsibility to the welfare of the group, which means that some people will get angry at your actions and decisions. It’s inevitable, if you’re honorable. Trying to get everyone to like you is a sign of mediocrity: you’ll avoid the tough decisions, you’ll avoid confronting the people who need to be confronted and you’ll avoid offering differential rewards based on differential performance because some people might get upset. Ironically, by procrastinating on the difficult choices, by trying not to get anyone mad and by treating everyone equally “nicely” regardless of their contributions, you’ll simply ensure that the only people you’ll wind up angering are the most creative and productive people in the organisation.

Lesson 1Lesson 1

Lesson 2 Lesson 2 ““The day people stop bringing you their The day people stop bringing you their

problems is the day you have stopped problems is the day you have stopped leading them. They have either lost leading them. They have either lost confidence that you can help them or confidence that you can help them or

concluded that you do not care. Either concluded that you do not care. Either case is a failure of leadership.”case is a failure of leadership.”

Barriers to upward communication.

Asking for help seen as weakness or failure: corporate culture!

Real leaders: make themselves accessible and available.

Show concern even as they demand high standards.

Creates an environment where problem analysis replaces blame.

Lesson 3Lesson 3 “ “Don’t be buffaloed by experts.” Don’t be buffaloed by experts.”

Small companies and start-ups don’t have the time for analytically detached experts. The Chief Executive answers the phone and drives the truck if necessary: everyone on the payroll visibly produces and contributes to bottom-line results or they’re history.

But as companies get bigger, they often forget who brought them to the dance: things like all –hands involvement informality, market intimacy, daring, risk, speed,agility.

Policies that emanate from ivory towers often have an adverse impact on the people out in the field bringing in the revenues.

Real leaders are vigilant in the face of these trends.

Lesson 4Lesson 4 ““Never neglect details. When Never neglect details. When

everyone’s mind is dulled or everyone’s mind is dulled or distracted the leader must be doubly distracted the leader must be doubly

vigilant.”vigilant.”

Strategy equals execution. All the great ideas and visions in the world are worthless if they can’t be implemented rapidly and efficiently.

Good leaders delegate and empower others liberally, but they pay attention to details, every day. Bad ones think they are somehow above operational details.

Good leaders, even as they pay attention to details, they continually encourage people to challenge the process.

Lesson 5Lesson 5““You don’t know what you can get away You don’t know what you can get away

with until you try.”with until you try.”

You know the expression, “it’s easier to get forgiveness than permission.” Well, it’s true. Good leaders don’t wait for official blessing to try things out. They’re prudent, not reckless. But they also realise a fact of life in most organisations: if you ask enough people for permission, you’ll enevitably come up against someone who believes his job is to say ”no.” So the moral is, don’t ask. Less effective middle managers endorsed the sentiment, “If I haven’t been told ‘yes,’ I can’t do it,” whereas the good ones believed, “if I haven’t explicitly been told ‘no,’ I can.” There’s a world of difference between these two points of view.

Lesson 6Lesson 6

““Keep looking below surface Keep looking below surface appearances. Don’t shrink from doing appearances. Don’t shrink from doing so (just) because you might not like so (just) because you might not like

what you find.”what you find.”

“If it ain’t broke, don’t fix it “ is the slogan of the complacent, the arrogant or the scared. It’s an excuse for inaction, a call to non-arms. It’s a mind-set that assumes (or hopes) that today’s realities will continue tomorrow in a tidy, linear and predicatble fashion. Pure fantasy. In this sort of culture, you won’t find people who pro-actively take steps to solve problems as they emerge. Here’s a little tip: don’t invest in these companies.

Lesson 7Lesson 7

“ “Organisation doesn’t really accomplish Organisation doesn’t really accomplish anything. Plans don’t accomplish anything. Plans don’t accomplish

anything, either. Theories of anything, either. Theories of management don’t much matter. management don’t much matter.

Endeavours succeed or fail because of Endeavours succeed or fail because of the people involved. Only by the people involved. Only by

attracting the best people will you attracting the best people will you accomplish great deeds.”accomplish great deeds.”

In a knowledge-based economy, your best assets are people. We’ve heard this expression so often that it’s become trite. But how many leaders “walk the talk” with this stuff?

Leaders should immerse themselves in the goal of creating an environment where the best, the brightest, the most creative are attracted, retained and most importantly unleashed.

Lesson 8Lesson 8

““Fit no stereotypes. Don’t chase the Fit no stereotypes. Don’t chase the latest management fads. The latest management fads. The

situation dictates which approach best situation dictates which approach best accomplishes the team’s mission.”accomplishes the team’s mission.”

Flitting from fad to fad creates team confusion, reduces the leader’s credibility, and drains organisational coffers. Blindly following a particular fad generates rigidity in thought and action. Sometimes speed to market is more important than total quality. Sometimes an unapologetic directive is more appropriate than participatory discussion. Some situations require the leader to hover closely; others require long, loose leashes. Leaders honour their core values, but they are flexible in how they execute them. They understand that management techniques are not magic mantras but simply tools to be reached for at the right times.

Lesson 9Lesson 9

““Perpetual optimism is a force Perpetual optimism is a force multiplier”multiplier”

The ripple effect of a leader’s enthusiasm and optimism is awesome. So is the impact of cynicism and pessimism. Leaders who whine and blame engender those same behaviours among their colleagues. I am not talking about stoically accepting organisational stupidity and performance incompetence with a “what, me worry?” smile. I am talking about a gung-ho attitude that says “we can change things here, we can achieve awesome goals, we can be the best.” Spare me the grim litany of the “realist,” give me the unrealistic aspirations of the optimist any day.

““Great leaders are almost always great Great leaders are almost always great simplifiers, who can cut through simplifiers, who can cut through

argument, debate and doubt, to offer a argument, debate and doubt, to offer a solution everybody can understand.”solution everybody can understand.”

Effective leaders understand the KISS principle, KEEP IT SIMPLE, STUPID. They articulate vivid, over-arching goals and values, which they use to drive daily behaviours and choices among competing alternatives. Their visions and priorities are lean and compelling, not cluttered and buzzword-laden. Their decisions are crisp and clear, not tentative and ambiguous. They convey an unwavering firmness and consistency in their actions aligned with the picture of the furture they paint. The result: clarity of purpose, credibility of leadership, and integrity in organisation.

Lesson 10Lesson 10

Lesson 11Lesson 11

Part 1: “Use the formula P=40 to 70, in Part 1: “Use the formula P=40 to 70, in which P stands for the probability of which P stands for the probability of

success and the numbers indicate the success and the numbers indicate the percentage of information acquired.”percentage of information acquired.”

Part 11: “Once the information is in the Part 11: “Once the information is in the 40 to 70 range, go with your gut.”40 to 70 range, go with your gut.”

Don’t take action if you have only enough information to give you less than a 40% chance of being right, but don’t wait until you have enough facts to be 100 percent sure, because by then it is almost always too late. Today, excessive delays in the name of information-gathering breeds “analysis paralysis.” Procrastination in the name of reducing risk actually increases risk.

Lesson 12Lesson 12

““Command is lonely”Command is lonely”

Harry Truman was right. Whether you’re a CEO or the temporary head of a project team, the buck stops here. You can encourage participative management and bottom-up employee involvement, but ultimately the essence of leadership is the willingness to make tough, unambiguous choices that will have an impact on the fate of the organisation. I’ve seen too many non-leaders flinch from this responsibility. Even as you create an informal, open, collaborative corporate culture, prepare to be lonely.

““Leadership is the art of Leadership is the art of accomplishing more than the accomplishing more than the

science of management says is science of management says is possible.”possible.”

LeadershipLeadership The key quality of leadership is the development of people.The key quality of leadership is the development of people. Leadership: The articulation of a mission and the means Leadership: The articulation of a mission and the means

(resources and structure) to achieve it.(resources and structure) to achieve it. Leaders are responsible for creating;Leaders are responsible for creating;

A vision.A vision. The best strategy to achieve the vision.The best strategy to achieve the vision. The ideal environment for the strategy and the vision which The ideal environment for the strategy and the vision which

ultimately leads to the achievement of the vision.ultimately leads to the achievement of the vision. Leaders project their ideas onto images that excite people.Leaders project their ideas onto images that excite people. Leaders relate to people in more intuitive and empathetic Leaders relate to people in more intuitive and empathetic

ways.ways. Shapes ideas instead of responding to them.Shapes ideas instead of responding to them. Defines the atmosphere in which the organisation will work.Defines the atmosphere in which the organisation will work. Sets the tone of the organisation. Sets the tone of the organisation. Infuses the whole organisation with energy and vision. Infuses the whole organisation with energy and vision. Gives the organisation direction and purpose.Gives the organisation direction and purpose. Ensures that the organisation functions as an integrated Ensures that the organisation functions as an integrated

unit.unit. Maintains a certain degree of alertness in the organisation. Maintains a certain degree of alertness in the organisation.

LeadershipLeadership Introduces change in such a way that the organisation Introduces change in such a way that the organisation

adapts to it without unnecessary disruption.adapts to it without unnecessary disruption. Ensures that everybody in the organisation is motivated and Ensures that everybody in the organisation is motivated and

activated.activated. Mobilises commitment; gets people signed on to the Mobilises commitment; gets people signed on to the

mission.mission. Creates and manages culture.Creates and manages culture. Ability to sence the future.Ability to sence the future. Understands the aspirations of followers.Understands the aspirations of followers. Discerns the limits of possibilities.Discerns the limits of possibilities. Selects the lines of advance which hold the best promise of Selects the lines of advance which hold the best promise of

success. success. Leadership permeates all activities.Leadership permeates all activities. Some activities concerned primarily with leadership;Some activities concerned primarily with leadership;

staffingstaffing trainingtraining evaluating evaluating remuneratingremunerating promotingpromoting dismissing.dismissing.

What is Leadership?What is Leadership? Napoleon said:’I would rather have an army of rabbits led Napoleon said:’I would rather have an army of rabbits led

by a lion than an army of lions led by a rabbit.’ The lion by a lion than an army of lions led by a rabbit.’ The lion knows the capability of his troops and can lead them knows the capability of his troops and can lead them accordingly. accordingly.

Leadership is.. ‘..the behaviour of an individual when he is directing the

activities of a group toward a shared goal.’ (Hemphill and Coons, 1957)

‘..a social process in which one individual influences the behaviour of others without the use or threat of violence.’ (buchanan and Huczynski, 1985)

‘..the ability to get things done – especially the ability to get people working well as a team towards a common goal.’ (Adair, 1988)

‘..about getting extraordinary performance out of ordinary people.’ (Harvey-Jones, 1988)

Leadership versus ManagementLeadership versus ManagementOne of the major differences between the leader and the One of the major differences between the leader and the

manager relates to their source of power.manager relates to their source of power.

Management power comes from organisational structure. Management power comes from organisational structure. Leadership power comes from personal sources.Leadership power comes from personal sources.

Position Power;Position Power;The managers position gives him or her the power to reward or The managers position gives him or her the power to reward or

punish subordinates in order to influence their behaviour.punish subordinates in order to influence their behaviour.1.1. Legitimate power;Legitimate power;

Formal management position with authority Formal management position with authority 2.2. Reward power;Reward power;

Pay increasesPay increases PromotionsPromotions Praise, attention, recognitionPraise, attention, recognition

3.3. Coercive power;Coercive power; FireFire DemoteDemote CritiseCritise Withdraw pay increases Withdraw pay increases

Leadership versus ManagementLeadership versus Management

Personal Power:Personal Power: Personal power most often comes from internal Personal power most often comes from internal

resources, such as a person’s special knowledge, skill or resources, such as a person’s special knowledge, skill or personality characteristics. Personal power is the tool of personality characteristics. Personal power is the tool of the leader. People follow a leader because of the respect, the leader. People follow a leader because of the respect, admiration or caring they feel for the individual and his or admiration or caring they feel for the individual and his or her ideas.her ideas.

1.1. Expert PowerExpert Power

2.2. Referent PowerReferent Power Personality characteristics that command identification respect Personality characteristics that command identification respect

and admiration. and admiration.

Different Qualities Attributed to Different Qualities Attributed to Leaders and ManagersLeaders and Managers

Leader ManagerLeader ManagerSoulSoul MindMindVisionary Visionary RationalRationalPassionatePassionate ConsultingConsultingCreativeCreative PersistantPersistantFlexibleFlexible Problem SolvingProblem SolvingInspiringInspiring Tough-MindedTough-MindedInnovativeInnovative AnalyticalAnalyticalCourageousCourageous StructuredStructuredImaginativeImaginative AuthoritativeAuthoritativeExperimentalExperimental StabilizingStabilizingInitiates ChangeInitiates Change Position PowerPosition Power

People who do the right thingPeople who do the right thing People who do things People who do things right.right.

Leaders have strategic visionLeaders have strategic visionManagers instead use budgets and yearly plans.Managers instead use budgets and yearly plans.

Relationship between Leaders and Relationship between Leaders and FollowersFollowers

Autocratic versus Democratic Leaders.Autocratic versus Democratic Leaders.

Leadership as a continuum reflecting different amounts of Leadership as a continuum reflecting different amounts of employee participation.employee participation.

Transactional Leaders.Transactional Leaders.

Charismatic Leaders.Charismatic Leaders.

Transformational Leaders.Transformational Leaders.

Personal Characteristics of Personal Characteristics of LeadersLeaders

Physical activity energy

Intelligence and Ability judgement, decisiveness knowledge fluency of speech

Personality alertness originality, creativity personal integrity, ethical conduct self confidence.

Work-related characteristics

achievement drive, desire to excel drive for responsibility responsibility in pursuit of goals task orientation.

Social characteristics

PopularitySociability, interpersonal skills ,Social participation, Tact, diplomacy CooperativenessAbility to enlist cooperation

Understand Total Situation•Oppertunities•Resources•Values•Responsibility

Provide opportunity for feedback

Develop reward systems

Develop M.I.S. meaningful to tasks

and measures

Develop operational measures of performance

Determine methods of co-ordination

Between key tasks-Structure

Determine key Technical and

Managerial tasks

Develop company objectives and strategy

The Chief

Executive

Role of Chief ExecutiveRole of Chief Executive Corporate culture overall character and mission.Corporate culture overall character and mission. Objectives and strategy.Objectives and strategy. Structure – organisation.Structure – organisation. Resource allocation.Resource allocation. Coordination – synergy.Coordination – synergy. Network building and maintenace (networking).Network building and maintenace (networking). Introduces change in such a way that the Introduces change in such a way that the

organisation adapts to it without unnecessary organisation adapts to it without unnecessary disruption.disruption.

Manpower planning, training and development. Manpower planning, training and development. Represent the company.Represent the company. Understand total situation.Understand total situation. Performance monitoring and control against plans. Performance monitoring and control against plans.

The Chief Executive’s most The Chief Executive’s most Important Task: To Select Effective Important Task: To Select Effective

PeoplePeopleWe are “in good company” when we make this We are “in good company” when we make this

claimclaim“Around me there are eleven or twelve key people. They have been remarkably stable over the years”

Michael Smurfit – Chairman and C.E.O. Jefferson Group plc.

“Around me there are eleven or twelve key people. They have been remarkably stable over the years”

Michael Smurfit – Chairman and C.E.O. Jefferson Group plc.

“I suppose my biggest influence on Kerry Group PLC. is in picking the right person for the job and persuading the managers around me

that they should give that a lot of attention”.Denis Brosnan – Managing Director Kerry Group Plc.

“I suppose my biggest influence on Kerry Group PLC. is in picking the right person for the job and persuading the managers around me

that they should give that a lot of attention”.Denis Brosnan – Managing Director Kerry Group Plc.

“The key Role for the Chief Executive is to build a strong team around himself”.

Niall Crowley – Chairman. A.I.B. plc.

“The key Role for the Chief Executive is to build a strong team around himself”.

Niall Crowley – Chairman. A.I.B. plc.

General ManagersGeneral Managers

Financial

Product/

Services Markets

Organisation/ People

Long Run

5 - 20 years

Long run return on

investment/sales

Kind of Business(es)

To be in

Type of organisation and calibre of management

Medium Run

1 – 5 Years

Specific Goals

on financial

returns

Specific

growth objectives

Development of key managers

Organisation changes

Short Run

Financial objectives

For quarter/year

Market share sales and inventory objectives

Selection of managers and commitments of managers to goals.

Typical Agendas Key Issues

The General Management The General Management Perspective Perspective

StrategyStrategy

The General Manager

Culture Change

The Manager/Leader of The Manager/Leader of Tommorrow…..Tommorrow….. Communicates vision convincingly to staff.Communicates vision convincingly to staff.

Links salary to personal performance.Links salary to personal performance.

Ensures frequent contact with employees.Ensures frequent contact with employees.

Delegates a considerable amount of Delegates a considerable amount of responsibility.responsibility.

Remains in close contact with important Remains in close contact with important customers.customers.

Promotes the internationalisation of the business.Promotes the internationalisation of the business.

Fires or moves employees at the right time.Fires or moves employees at the right time.

MARKETINGMARKETING

MarketingMarketingMARKETING DEFINITIONS;MARKETING DEFINITIONS; Satisfying customer needs while at the same time satisfying Satisfying customer needs while at the same time satisfying

corporate needs.corporate needs. The uncovering and satisfaction of of consumer needs in The uncovering and satisfaction of of consumer needs in

order to achieve optimum profitability.order to achieve optimum profitability. Anticipating the needs and directing the flow of goods from Anticipating the needs and directing the flow of goods from

producers to consumers at a profit.producers to consumers at a profit. Planned organisation of resources for profit maximisation Planned organisation of resources for profit maximisation

short and long term.short and long term. The allocation of resources to achieve a sustainabe The allocation of resources to achieve a sustainabe

competitive advantage in selected product markets.competitive advantage in selected product markets. Taking actions to create, grow, maintain or defend markets.Taking actions to create, grow, maintain or defend markets. Satisfying the requirements of one’s customers at a profit. Satisfying the requirements of one’s customers at a profit. Making the future happen.Making the future happen. Serving customer needs profitably.Serving customer needs profitably.

Marketing Marketing MARKETING DEFINITIONSMARKETING DEFINITIONS The management activity which organises and directs all The management activity which organises and directs all

the business activities involved in converting customer the business activities involved in converting customer purchasing power into effective demand for a specific purchasing power into effective demand for a specific product or service and in moving the product from the product or service and in moving the product from the manufacturer to the consumer so as to achieve a profit manufacturer to the consumer so as to achieve a profit target or some other objective of the firm. target or some other objective of the firm.

The right product at the right price at the right place at the The right product at the right price at the right place at the right time and making a profit.right time and making a profit.

The business activity that identifies an organisations’ The business activity that identifies an organisations’ customer needs and wants, determines which target customer needs and wants, determines which target markets it can serve best and designs appropriate markets it can serve best and designs appropriate products, services and programmes to serve these markets.products, services and programmes to serve these markets.

The delivery of customer satisfaction at a profit.The delivery of customer satisfaction at a profit. The creation of customer satisfaction profitably, by building The creation of customer satisfaction profitably, by building

valued relationships with customers. valued relationships with customers.

MarketingMarketing Marketing remains the business activity that identifies an Marketing remains the business activity that identifies an

organisations customers needs and wants, determines which organisations customers needs and wants, determines which target markets it can serve best and designs appropriate target markets it can serve best and designs appropriate products, services and programmes to serve these markets.products, services and programmes to serve these markets.

However marketing is much more than an isolated business However marketing is much more than an isolated business function – it is a philosophy that guides the entire function – it is a philosophy that guides the entire organisation.organisation.

The goal of marketing is to create customer satisfaction The goal of marketing is to create customer satisfaction profitably by building valued relationships with customers.profitably by building valued relationships with customers.

The marketing people cannot accomplish this goal by The marketing people cannot accomplish this goal by themselves. They must work closely with other people in themselves. They must work closely with other people in their company to provide superior value to customers.their company to provide superior value to customers.

Thus, marketing calls upon everyone in the company to Thus, marketing calls upon everyone in the company to ‘think customer’ and to do all that they can to help create ‘think customer’ and to do all that they can to help create and deliver superior customer value and satisfaction.and deliver superior customer value and satisfaction.

MARKETING FUNCTIONSMARKETING FUNCTIONS Market Research and analysisMarket Research and analysis Product DevelopmentProduct Development Marketing PlanningMarketing Planning Marketing Communications Mix (Promotion Marketing Communications Mix (Promotion

Mix)Mix) Selling Selling AdvertisingAdvertising Sales promotionSales promotion Direct marketingDirect marketing Public relations Public relations

Market segmentationMarket segmentation Product PositioningProduct Positioning DistributionDistribution Customer serviceCustomer service

The Marketing ConceptThe Marketing Concept

Up to 1900:

Production Emphasis Plant and machineryNew products and processes Demand > supply Mass production Communication of availability Automatic purchase

1900 – 1960:Selling Emphasis

Competition Unsought goods Selling / promotion Profits through sales volume

1960’s onwards:

Consumer Emphasis/Marketing Concept

Supply > Demand Competition intense “Customer orientation” Market as starting point Profits through customer satisfaction

Instead of making a product and then trying to persuade people to buy it, it is better to first find out what the customer needs, and then gear our assets to produce the product needed.

Marketing InstrumentsMarketing Instruments

The 4The 4 PP’s of marketing:’s of marketing:

1.1. PProductroduct

1.1. PPricerice

1.1. PPromotion (Communication)romotion (Communication)

1.1. PPlace (Distribution)lace (Distribution)

PProductroductQUALITYQUALITY FEATURESFEATURES

BRANDBRAND PACKAGINGPACKAGINGnamenamesignsignsymbolsymbolcombinationcombination

LABELLING LABELLING SERVICESSERVICES

BENEFITS

PPricericePPrice is the only element in the marketing mix that produces revenue rice is the only element in the marketing mix that produces revenue

: all other elements represent cost.: all other elements represent cost.PPrice is also one of the most flexible elements of the marketing mix. rice is also one of the most flexible elements of the marketing mix.

Unlike product features, channel commitments etc. price can be Unlike product features, channel commitments etc. price can be changed quickly.changed quickly.

Factors to consider when setting prices:Factors to consider when setting prices:Internal Factors:Internal Factors:

Aim to Maximise ProfitAim to Maximise ProfitMarketing ObjectivesMarketing ObjectivesMarketing-Mix StrategyMarketing-Mix StrategyCosts Costs (R&D, Manufactoring, Promotion, Distribution, etc)(R&D, Manufactoring, Promotion, Distribution, etc)

External Factors:External Factors:Market and DemandMarket and DemandCompetitors PricesCompetitors Prices

Advantages v CompetitorsAdvantages v CompetitorsCustomer ExpectationCustomer ExpectationPrice SensitivityPrice Sensitivity

Disease Area Disease Area Government Government

ProductProduct

New Ideas Product DevelopmentNew Ideas Product Development

Improvements Line ExtensionsImprovements Line Extensions

Acceptable Formulation Easy DosingAcceptable Formulation Easy Dosing

Positioning Life CyclesPositioning Life Cycles

Product Life – Cycle StrategiesProduct Life – Cycle Strategies

1.1. Introduction Stage:Introduction Stage:Rapid penetration strategy: -Rapid penetration strategy: - Heavy promotion spending Heavy promotion spending

- Perhaps low price.- Perhaps low price.

Slow market penetration strategy - Slow market penetration strategy - Low promotion spendLow promotion spend

- High Price- High Price

1.1. Growth Stage:Growth Stage:Profits increase as promotion is spread over a larger volume.Profits increase as promotion is spread over a larger volume.

Strategies:Strategies: Add new product featuresAdd new product features Enter new market segmentsEnter new market segments High promotion spend to capture a dominant position. High promotion spend to capture a dominant position.

Product Life – Cycle StrategiesProduct Life – Cycle Strategies

1.1. Maturity Stage: Maturity Stage: At some stage a products sales growth will slow down or level off.At some stage a products sales growth will slow down or level off.

Product Managers should become offensive:Product Managers should become offensive: Market Development --- new segments (new uses) repositioningMarket Development --- new segments (new uses) repositioning Product Development ---new functions / featuresProduct Development ---new functions / features Marketing Innovation ---change marketing – mix elements.Marketing Innovation ---change marketing – mix elements.

1.1. Decline Stage:Decline Stage:The company’s task during this stage is to identify the declining The company’s task during this stage is to identify the declining

product and decide whether it should be:product and decide whether it should be: maintained maintained harvested for cashharvested for cash dropped dropped

“ “ Blockbusters are not discovered – Blockbusters are not discovered – They are built.”They are built.”

Rapid uptake is driven by early spend.Rapid uptake is driven by early spend.

High levels of early investment.High levels of early investment.

Early success is a key determinant of Early success is a key determinant of long term success.long term success.

Kit Kat:Launched in

1935 ---- Rowntree.

AeroLaunched in

1935 ----

Black Magic:

Launched in

1933

Smarties:Launched in

1937.

PPromotionromotion(Marketing Communications Mix)(Marketing Communications Mix)

(Promotion Mix) (Promotion Mix)

Personal SellingPersonal Selling AdvertisingAdvertising

Sales PromotionSales Promotion Public RelationsPublic Relations(short-term incentives)(short-term incentives) (favourable unpaid (favourable unpaid publicty)publicty)

Direct MarketingDirect Marketingmailmailfaxfaxtelemarketingtelemarketinge-maile-mailinternetinternet

Marketing CommunicationsMarketing Communications

Advertising

Personal SellingSales Promotion

Publicity

Packaging

Price

Availability

Service

Competition

Sales Resistance

Memory Fade

Market Contraction

Customer Loyalty LadderCustomer Loyalty Ladder

Loyalty

Preference

Knowledge

Awareness

Unawareness

Sales PromotionSales PromotionShort-term incentives to encourage purchase or sales of a product.Short-term incentives to encourage purchase or sales of a product.Sales Promotion Tools;Sales Promotion Tools;Sales ForceSales Force

Bonus SchemeBonus Scheme CommissionsCommissions VouchersVouchers GiftsGifts

TradeTrade Samples Samples DiscountsDiscounts TripsTrips Loyalty BonusesLoyalty Bonuses VouchersVouchers Displays/ExhibitionsDisplays/Exhibitions LiteratureLiterature GimmicksGimmicks

End UserEnd User Voucher with cost valueVoucher with cost value SamplesSamples CompetitionsCompetitions Complimentary ProductsComplimentary Products LiteratureLiterature

PPlacelace(Distribution)(Distribution)

Channels

wholesalers

retailers

hospitals

direct to consumers

Physical Distribution

logistics

order processing

warehousing

stocks

transport

The Marketing MixThe Marketing Mix

1.1. Goods and Service MixGoods and Service MixProductProduct Name Name

PackPack PricePrice

ImageImage ServiceService

1.1. Distribution MixDistribution MixAvailability By Channels of DistributionAvailability By Channels of Distribution

Physical DistributionPhysical Distribution

1.1. Communication MixCommunication MixSelling -------- PersonalSelling -------- Personal

AdvertisingAdvertising

PromotionsPromotions

PRPR

Merchandising Merchandising

Sales AidsSales Aids

The Right Mix In Order To Generate The Optimum Profitability.The Right Mix In Order To Generate The Optimum Profitability.

Product Pack Image Name Service Price

PURCHASE SATI SFACTI ON OPTI MUM PROFI TABI LI TY

Goods and Services Mix

Distribution Mix

Communica-tion Mix

=

=

=

The Six Facets of MarketingThe Six Facets of Marketing (Sundridge Park)(Sundridge Park)

What it is Facet What it involves

Finding out who and where are the potential purchasers and what are the factors which influence their purchasing decisions.

(Getting the facts – key to the whole of Marketing)

MARKET RESEARCH

Techniques

• Desk Research• Field Research (including)• Motivation Research----------------------------------------------------------------

Market Research needs to be Continual and UP TO DATE. Market research provides information

on “WHAT HAS HAPPENED” or“WHAT IS HAPPENING not about what is going to happen tommorrow

Examining market trends and forecasting future demands

(Making the plan - 1)

MARKET FORECASTING

Variables• TOTAL DEMAND• SHARE OF TOTAL DEMAND

Determining what products should be made, in what quantities, and at what selling price.

(Making the plan – 2)

PRODUCT PLANNING

Techniques• Analysis of own and competitors’ products d) Value analysis• Analysis of company resources e) Brainstorming• Market research f) Checklist and analysis forms

Planning the most suitable channels of distribution

(Making the plan – 3)

DISTRIBUTION PLANNING

Alternative Channels• Maker – User direct• Maker – Merchant – User• Maker – Retailer – User• Maker – Wholesaler – Retailer – User

Creating a demand for the product by planning an effective combination of advertising , sales, promotion and personal salesmanship

(Making Plan – 4)

MARKETING STRATEGY

Define And use in a combination of In order to

Organising and controlling the operations required for selling ,distributing, merchandising and servicing (Getting action and controlling it)

SALES ADMINISTRATION

All control is on a measured basis with comparisons of actuals with standards.

THE SELLING FEATURES OF THE PRODUCT

(1) ADVERTISING

(2) SALES PROMOTION

(3) SALES FORCE Based on:A) No. of call Points B)Frequency of calls © Possible calls per day

Press TV Posters direct mail

Company and Brand name, House style Sales literature, sample,s offers,Retail Display Exhibitions, Gimmicks

1. SELL IN- to the customer2. SELL OUT-to the eventual userMERCHANDISING helps

here with (a) Point of sale displays (b) Packaging © Siting

The Sole purpose of setting up any industrial or commercial enterprise is simply to sell something to someone so that a profit can be made on the transaction.

The Marketing The Marketing PlanPlan

What is Marketing What is Marketing SATISFYING CUSTOMER NEEDS WHILST AT THE SAME TIME SATISFYING CUSTOMER NEEDS WHILST AT THE SAME TIME

SATISFYING CORPORATE NEEDS.SATISFYING CORPORATE NEEDS.

LONG TERM SELLINGLONG TERM SELLING

ORGANISATION OF PROMOTIONAL ACTIVITYORGANISATION OF PROMOTIONAL ACTIVITY

SELLING SELLING

MAXIMISATION OF PROFIT – LONG TERM – SHORT TERMMAXIMISATION OF PROFIT – LONG TERM – SHORT TERM

CREATION OF DEMANDCREATION OF DEMAND

MARKETING IS THE UNCOVERING AND SATISFACTION OF MARKETING IS THE UNCOVERING AND SATISFACTION OF CONSUMER NEEDS IN ORDER TO ACHIEVE OPTIMUM CONSUMER NEEDS IN ORDER TO ACHIEVE OPTIMUM PROFITABILITYPROFITABILITY

ANTICIPATING THE NEEDS AND DIRECTING THE FLOW OF GOODS ANTICIPATING THE NEEDS AND DIRECTING THE FLOW OF GOODS AND SERVICES FROM PRODUCERS TO CONSUMERS AT A PROFIT AND SERVICES FROM PRODUCERS TO CONSUMERS AT A PROFIT

MarketingMarketing

ORGANISATION OF RESOURCES FOR PROFIT MAXIMISATIONORGANISATION OF RESOURCES FOR PROFIT MAXIMISATION

Marketing PlanningMarketing Planning

PLANNED ORGANISATION OF RESOURCES FOR PROFIT PLANNED ORGANISATION OF RESOURCES FOR PROFIT MAXIMISATONMAXIMISATON

- LONG AND SHORT TIME- LONG AND SHORT TIME

Marketing FactorsMarketing FactorsPOLITICSPOLITICS SELLING SELLING

CORPORATE IMAGECORPORATE IMAGE TARGET AUDIENCE TARGET AUDIENCE

PROFIT CONTRIBUTIONPROFIT CONTRIBUTION QUALITATIVE INFORMATION QUALITATIVE INFORMATION

PRIORITIESPRIORITIES TRADING CONDITIONS TRADING CONDITIONS

PRODUCTIONPRODUCTION

ECONOMICS OF SCALEECONOMICS OF SCALE

PACKAGING PACKAGING

BRANDINGBRANDING

MARKETING MIXMARKETING MIX

ADVERTISINGADVERTISING

PROMOTIONALPROMOTIONAL

Marketing PlanMarketing Plan

WHERE ARE WE NOW ---------------- THE MARKETWHERE ARE WE NOW ---------------- THE MARKET

WHERE DO WE WANT TO GO --------- OBJECTIVESWHERE DO WE WANT TO GO --------- OBJECTIVES

HOW WILL WE GET THERE ---------- STRATEGYHOW WILL WE GET THERE ---------- STRATEGY

TACTICSTACTICS

““IF WE COULD FIRST KNOW WHERE WE ARE AND WHITHER WE ARE IF WE COULD FIRST KNOW WHERE WE ARE AND WHITHER WE ARE TENDING TO GO, WE COULD BETTER JUDGE WHAT TO DO AND TENDING TO GO, WE COULD BETTER JUDGE WHAT TO DO AND

HOW TO DO IT” HOW TO DO IT”

(Abraham Lincoln)(Abraham Lincoln)

Marketing PlanMarketing Plan1.1. Market and product history.Market and product history.

1.1. Statement on current years objectives – whether Statement on current years objectives – whether achieved or not.achieved or not.

1.1. Analysis of current market situation in relation to the Analysis of current market situation in relation to the product - market shares, trends, research findings etc. product - market shares, trends, research findings etc. Analysis of competiters position.Analysis of competiters position.

1.1. Marketing objectives for the coming year – target market Marketing objectives for the coming year – target market shares, target revenue and profit target.shares, target revenue and profit target.

1.1. Planned marketing mix (goods and services / Planned marketing mix (goods and services / distribution / communications) in order to achiece the distribution / communications) in order to achiece the above target. above target.

Marketing PlanMarketing Plan1.1. Marketing BackgroundMarketing BackgroundMarket analysis; share, size, trends, competitors (SWOT)Market analysis; share, size, trends, competitors (SWOT)

1.1. Marketing ObjectivesMarketing ObjectivesSales, MS, Earnings, Promotion expenditure budget.Sales, MS, Earnings, Promotion expenditure budget.

1.1. Marketing StrategiesMarketing StrategiesBrand Name / Packaging / PresentationBrand Name / Packaging / PresentationPricingPricingPositioningPositioningComm. Strategies: direct selling, advert., direct mail, internet, literature, detail aids, Comm. Strategies: direct selling, advert., direct mail, internet, literature, detail aids,

samples, product reminders, audio visual aids.samples, product reminders, audio visual aids.Distribution.Distribution.

1.1. Agree With Top ManagementAgree With Top Management

1.1. Coordinate The Implementation Of PlanCoordinate The Implementation Of Plan

1.1. Monitor and ControlMonitor and Control

PRODUCT POLICY

AND PLAN

DISTRIBUTION POLICY

AND PLAN

PRICING POLICY

AND PLAN

SALES FORCE POLICY

AND PLAN

ADVERTISING POLICY

AND PLAN

SALES PROMOTIONAL POLICY

AND PLAN

CUSTOMER POLICY

AND PLAN

ORGANISATION POLICY

AND PLAN

Marketing Plan OutlineMarketing Plan OutlineTHE PRODUCTTHE PRODUCTTHE DISEASE AREATHE DISEASE AREATHE MARKETTHE MARKET

1.1. MARKET VALUEMARKET VALUE2.2. PRESCRIPTIONS / USAGEPRESCRIPTIONS / USAGE3.3. COMPETITORSCOMPETITORS4.4. PRICINGPRICING5.5. PROMOTIONAL ACTIVITYPROMOTIONAL ACTIVITY6.6. DISTRIBUTIONDISTRIBUTION

MARKETING OBJECTIVESMARKETING OBJECTIVES1.1. SALESSALES2.2. PROFITPROFIT3.3. PROMOTIONAL EXPENDITUREPROMOTIONAL EXPENDITURE4.4. MARKET SHAREMARKET SHARE5.5. USAGE & AWARENESSUSAGE & AWARENESS

MARKETING STRATEGYMARKETING STRATEGY» PRODUCT POSITIONINGPRODUCT POSITIONING» PRICINGPRICING» PROMOTION (GENERAL)PROMOTION (GENERAL)1.1. PRE LAUNCH ACTIVITYPRE LAUNCH ACTIVITY

PROMOTIONAL STRATEGYPROMOTIONAL STRATEGYPROMOTIONAL TACTICSPROMOTIONAL TACTICS

1.1. FIELD FORCE - DETAILINGFIELD FORCE - DETAILING2.2. PROMOTIONAL MATERIALPROMOTIONAL MATERIAL3.3. DETAILING OBJECTIVES / SEQUENCEDETAILING OBJECTIVES / SEQUENCE» JOURNAL / T.V. / RADIO ETC. ADVERTISINGJOURNAL / T.V. / RADIO ETC. ADVERTISING1.1. OTHER PROMOTIONAL ACTIVITY.OTHER PROMOTIONAL ACTIVITY.

The Function of a The Function of a Marketing Marketing

DepartmentDepartment

Market ResearchMarket ResearchMARKETING RESEARCHMARKETING RESEARCH

PRODUCT EVAlUATIONPRODUCT EVAlUATION

ADVERTISING ADVERTISING

PROMOTION MEDIA PLANNINGPROMOTION MEDIA PLANNING

MARKETING TOOLS UTILISATIONMARKETING TOOLS UTILISATION

PLANNINGPLANNING

PRINTED ADVERTISING MATERIALPRINTED ADVERTISING MATERIAL

CONCEPT DEVELOPMENTCONCEPT DEVELOPMENT

ADVERTISING AGENCYADVERTISING AGENCY

PRODUCT MANAGEMENTPRODUCT MANAGEMENT

EXPL

OIT

NG

MARKET

GAPS

NEW

PRO

DU

CT

DEV

ELO

PMEN

T

MARKET

ING

RES

OU

RCES

SALE

S

MANAGEM

ENT

Function of a Marketing Function of a Marketing DepartmentDepartment

WHERE ARE WE NOW MARKETING RESEARCHWHERE ARE WE NOW MARKETING RESEARCH(How did we get here)(How did we get here)

WHERE ARE WE GOINGWHERE ARE WE GOING MARKETING OBJECTIVESMARKETING OBJECTIVES

(MARKETING (MARKETING PLANNING)PLANNING)

HOW WILL WE GET THERE HOW WILL WE GET THERE MARKETING STRATEGYMARKETING STRATEGY

TACTICS. TACTICS.

?

From Beginning To EndFrom Beginning To EndPRODUCT DEVELOPMENT - MARKET RESEARCH IMPUTPRODUCT DEVELOPMENT - MARKET RESEARCH IMPUT

POTENTIAL EVALUATION - MARKET RESEARCH – GOPOTENTIAL EVALUATION - MARKET RESEARCH – GO

NO GONO GO

PRODUCTION FEASABILITYPRODUCTION FEASABILITY ECONOMIES OF SCALEECONOMIES OF SCALE

PRODUCTION - MARKETING OBJECTIVESPRODUCTION - MARKETING OBJECTIVES

CUSTOMER INFORMED - ADVERTISING / PROMOTIONCUSTOMER INFORMED - ADVERTISING / PROMOTION

CUSTOMER BUYSCUSTOMER BUYS

CUSTOMER RE-BUYS CUSTOMER RE-BUYS

Where Are We NowWhere Are We Now1.1. MARKETING RESEARCH MARKETING RESEARCH

1.1. MARKET RESEARCHMARKET RESEARCH

1.1. MARKET ANALYSISMARKET ANALYSIS

1.1. QUALITATIVE RESEARCHQUALITATIVE RESEARCH

1.1. QUANTITATIVE RESEARCHQUANTITATIVE RESEARCH

1.1. PROMOTIONAL RESEARCHPROMOTIONAL RESEARCH

1.1. COMPETITIVE RESEARCHCOMPETITIVE RESEARCH

1.1. PRICING RESEARCHPRICING RESEARCH

1.1. PRODUCT USAGE RESEARCHPRODUCT USAGE RESEARCH

1.1. ATTITUDINAL RESEARCH.ATTITUDINAL RESEARCH.

Where Are We GoingWhere Are We Going

1.1. OBJECTIVES - QUANTIFIABLEOBJECTIVES - QUANTIFIABLE

REALISTICREALISTIC

1.1. STRATEGY - POLICYSTRATEGY - POLICY

1.1. PRODUCT PLANNING - LONG TERMPRODUCT PLANNING - LONG TERM

- SHORT TERM- SHORT TERM

1.1. PRIORITY SETTINGPRIORITY SETTING

How Will We Get ThereHow Will We Get There1.1. TACTICS - ACTIONABLETACTICS - ACTIONABLE

A.A. SALES FORCE ACTIVITYSALES FORCE ACTIVITY

PRIORITIESPRIORITIES

A.A. ADVERTISING - ABOVE LINEADVERTISING - ABOVE LINE

BELOW LINEBELOW LINE

A.A. PRICING TACTICS - DISCOUNTS / BONUSESPRICING TACTICS - DISCOUNTS / BONUSES

A.A. PRODUCT DEVELOPMENTSPRODUCT DEVELOPMENTS

1.1. UTILIZATION OF RESOURCESUTILIZATION OF RESOURCES

RESOURCESRESOURCES1.1. SALES FORCESALES FORCE

1.1. ADVERTISINGADVERTISING

1.1. SAMPLING SAMPLING

1.1. POINT OF SALE MATERIALPOINT OF SALE MATERIAL

1.1. DISCOUNTS / BONUSESDISCOUNTS / BONUSES

1.1. EXHIBITIONSEXHIBITIONS

1.1. PUBLIC RELATIONSPUBLIC RELATIONS

1.1. GIVE AWAYS / GIMMICKSGIVE AWAYS / GIMMICKS

1.1. SELLING AIDSSELLING AIDS

Marketing ResearchMarketing Research

MARKET RESEARCH - HISTORICALMARKET RESEARCH - HISTORICAL

MARKETING RESEARCH - CURRENTMARKETING RESEARCH - CURRENT

QUALITATIVE RESEARCHQUALITATIVE RESEARCH

QUANTITATIVE RESEARCHQUANTITATIVE RESEARCH

Quantitative ResearchQuantitative ResearchDesk ResearchDesk Research

1.1. GOVERNMENT STATS.GOVERNMENT STATS.

1.1. TRADE PRESSTRADE PRESS

1.1. COMPANY REPORTSCOMPANY REPORTS

1.1. COMPETITORSCOMPETITORS

1.1. INDUSTRY REPORTSINDUSTRY REPORTS

1.1. CUSTOMERSCUSTOMERS

1.1. FIELD FORCE?FIELD FORCE?

1.1. TELEPHONE ?TELEPHONE ?

Quantitative ResearchQuantitative ResearchField ResearchField Research

FACT ORIENTATEDFACT ORIENTATED

SAMPLING IMPORTANTSAMPLING IMPORTANT

HISTORICALHISTORICAL

QUANTITATIVE IN NATURE - QUANTIFIABLE RESULTSQUANTITATIVE IN NATURE - QUANTIFIABLE RESULTS

STRUCTURED QUESTIONAIRESSTRUCTURED QUESTIONAIRES

CATEGORISATION OF RESPONSESCATEGORISATION OF RESPONSES

Quantitative Market ResearchQuantitative Market ResearchFact OrientatedFact Orientated

1.1. YES / NO RESPONSEYES / NO RESPONSE

1.1. LIMITED NUMBER OF POSSIBLE RESPONSESLIMITED NUMBER OF POSSIBLE RESPONSES

1.1. PROMPTED / UNPROMPTED RESPONSESPROMPTED / UNPROMPTED RESPONSES

1.1. NO INTERVIEWER SUBJECTIVE INTREPRETATION.NO INTERVIEWER SUBJECTIVE INTREPRETATION.

Quantitative Research SamplingQuantitative Research Sampling

1.1. IDENTIFICATION OF UNIVERSEIDENTIFICATION OF UNIVERSE

1.1. UNIVERSE TO BE REPRESENTEDUNIVERSE TO BE REPRESENTED

1.1. STRUCTURE OF SAMPLE STRUCTURE OF SAMPLE AGE / SEXAGE / SEX SOCIAL CLASSSOCIAL CLASS TYPE OF RESPONDENTTYPE OF RESPONDENT GEOGRAPHICAL DISTRIBUTIONGEOGRAPHICAL DISTRIBUTION TYPE OF CUSTOMERTYPE OF CUSTOMER

Quantitative ResearchQuantitative ResearchHistorical In NatureHistorical In Nature

1.1. MEASUREMENT OF PRESENT OR PAST SITUATIONMEASUREMENT OF PRESENT OR PAST SITUATION

1.1. INFORMATION USED TO EXTRAPULATE INTO THE FUTUREINFORMATION USED TO EXTRAPULATE INTO THE FUTURE

1.1. REPORTS ARE OFTEN TOO LATE TO TAKE ACTION ON BUT REPORTS ARE OFTEN TOO LATE TO TAKE ACTION ON BUT CAN BE USED FOR DECISION MAKING CAN BE USED FOR DECISION MAKING

1.1. INFORMATION MAY ALREADY BE OUT – OF – DATE.INFORMATION MAY ALREADY BE OUT – OF – DATE.

Quantitative Research Quantitative Research

Quantitive In NatureQuantitive In Nature

1.1. RESULTS ARE QUANTIFIABLERESULTS ARE QUANTIFIABLE

1.1. % ARE USED - PROBLEMS% ARE USED - PROBLEMS(A)(A) AVERAGE OF AVERAGEAVERAGE OF AVERAGE

(A)(A) SIZE OF BASESIZE OF BASE

1.1. FIGURES CAN BE MISUSEDFIGURES CAN BE MISUSED

1.1. INTERPRETATION CRITICAL.INTERPRETATION CRITICAL.

Quantitive Research QuestionairesQuantitive Research Questionaires

1.1. STRUCTUREDSTRUCTURED

1.1. PREDETERMINED RANGE OF RESPONSESPREDETERMINED RANGE OF RESPONSES

1.1. NO INTERVIEW BIASNO INTERVIEW BIAS

1.1. ALL RESPONDENTS ARE ASKED SAME QUESTIONS ALL RESPONDENTS ARE ASKED SAME QUESTIONS

1.1. OFTEN SYNDICATED WITH SPECIAL OPTIONSOFTEN SYNDICATED WITH SPECIAL OPTIONS

1.1. DESIGN CRITICALDESIGN CRITICAL

1.1. CAN BE COMPUTERISED.CAN BE COMPUTERISED.

Qualitative Market ResearchQualitative Market Research

ATTITUDINAL RESEARCHATTITUDINAL RESEARCH

GROUP DISCUSSIONS GROUP DISCUSSIONS

IN DEPTH INTERVIEWSIN DEPTH INTERVIEWS

INTERACTION DISCUSSION.INTERACTION DISCUSSION.

Group Discussions Group Discussions SAMPLE SELECTIONSAMPLE SELECTION

IMPORTANCE OF MODERATORIMPORTANCE OF MODERATORLEADING BUT NOT LEADING BUT NOT

DOMINATINGDOMINATING

PREDETERMINED STRUCTURE PREDETERMINED STRUCTURE TO HELP MODERATORTO HELP MODERATOR

CONTROL CRITICALCONTROL CRITICAL

RECORDINGRECORDING

GROUP INTERACTIONGROUP INTERACTION

IDEAL FOR CONCEPT TESTING IDEAL FOR CONCEPT TESTING

Group DiscussionsGroup Discussions

SUBJECTIVE IN NATURESUBJECTIVE IN NATURE

RESULTS NOT QUANTIFIABLERESULTS NOT QUANTIFIABLE

DIRECTIONAL INFORMATION RECEIVEDDIRECTIONAL INFORMATION RECEIVED

WILL HELP THE FORMULATION OF QUESTIONNAIRES WILL HELP THE FORMULATION OF QUESTIONNAIRES FOR QUANTITATIVE RESEARCHFOR QUANTITATIVE RESEARCH

Market Segmentation And Market Segmentation And TargetingTargeting

Market Segmentation: Dividing a market into distinct group of Market Segmentation: Dividing a market into distinct group of buyers with different needs, characterstics or behaviour, buyers with different needs, characterstics or behaviour, who might require separate products or marketing mixes.who might require separate products or marketing mixes.

Market Targeting: The process of evaluating each market Market Targeting: The process of evaluating each market segments’ attractiveness and selecting one or more segments’ attractiveness and selecting one or more segment to enter.segment to enter.

Market Positioning: Arranging for a product to occupy a clear, Market Positioning: Arranging for a product to occupy a clear, distinctive and desirable place relative to competing distinctive and desirable place relative to competing products in the minds of target consumers. Formulating products in the minds of target consumers. Formulating competitive positioning for a product and a detailed competitive positioning for a product and a detailed marketing mix. marketing mix.

Market SegmentationMarket Segmentation

1.1. Geographic SegmentationGeographic Segmentation

1.1. Demographic SegmetationDemographic Segmetationageage

gendergender

incomeincome

educationeducation

1.1. Behavioural SegmentationBehavioural Segmentation

1.1. Psychographic SegmentationPsychographic Segmentationsocial classessocial classes

lifestyleslifestyles

Market TargetingMarket Targeting

1.1. Segment AttractivenessSegment Attractiveness

1.1. Business StrengthsBusiness Strengths

1.1. Selecting Market SegmentsSelecting Market Segments

Segment Strategy.Segment Strategy.

Personal Selling and Sales ManagementPersonal Selling and Sales ManagementThe sales function is at the heart of successful marketing.The sales function is at the heart of successful marketing.The primary job of the sales function is to achieve the company’s required The primary job of the sales function is to achieve the company’s required

sales volume!sales volume!

The Sales force is the core of the company’s marketing effort which in turn is The Sales force is the core of the company’s marketing effort which in turn is the central company activity.the central company activity.

Nature / Role of Personal Selling / Sales Force:Nature / Role of Personal Selling / Sales Force: Key role in the marketing mixKey role in the marketing mix Well – educated, well trained professionalsWell – educated, well trained professionals Order takersOrder takers Order gettersOrder getters Missionary selling Missionary selling Build and maintain long-term relationships with customersBuild and maintain long-term relationships with customers Work closely with customers to find solutions to their problemsWork closely with customers to find solutions to their problems Critical link between a company and its customersCritical link between a company and its customers Represent the company to customers and at the same time represent customers Represent the company to customers and at the same time represent customers

to the companyto the company Concerned with more than just producing sales!Concerned with more than just producing sales!

(Market orientated rather than sales orientated to-day)(Market orientated rather than sales orientated to-day) Look at sales data, measure market potential, gather market intelligence and Look at sales data, measure market potential, gather market intelligence and

help develop marketing strategies and plans.help develop marketing strategies and plans.

A market – orientated sales force works to produce customer satisfaction and A market – orientated sales force works to produce customer satisfaction and company profit. To accomplish these goals, the sales force needs skills in company profit. To accomplish these goals, the sales force needs skills in marketing analysis and planning in addition to the traditional selling skills. marketing analysis and planning in addition to the traditional selling skills.

Some general comments on selling:Some general comments on selling:1.1. Good sales people are born not made! Good sales people are born not made! MythMyth “ “The ability to sell is not a gift, it’s a skill and skills can be learned.” The ability to sell is not a gift, it’s a skill and skills can be learned.”

1.1. Sales people are extroverts with the gift of the gab - they can Sales people are extroverts with the gift of the gab - they can make small talk to anyone, they can sell to anybody even those make small talk to anyone, they can sell to anybody even those who don’t want to buy, and finally most people decide on cost who don’t want to buy, and finally most people decide on cost anyway! anyway! MythMyth

Rubbish, buyers to-day are well informed. People don’t decide on price Rubbish, buyers to-day are well informed. People don’t decide on price alone. They decide on value for money.alone. They decide on value for money.

1.1. Sales is a numbers game ---- Sales people forget this. Sales is a numbers game ---- Sales people forget this. Research: as little as a 1/3 time spent actually selling.Research: as little as a 1/3 time spent actually selling.

1.1. Giving up too early --- a common failure. Go back more often.Giving up too early --- a common failure. Go back more often.2.2. Develop relationships but focus clearly on what they will deliver Develop relationships but focus clearly on what they will deliver

to the bottom line.to the bottom line.3.3. There are always three sales to be madeThere are always three sales to be madethe productsthe productsthe sales personthe sales personthe credibility and reliability of the company behind them.the credibility and reliability of the company behind them.

1.1. World –class salesperson:World –class salesperson: Irrepressibly positive attitudeIrrepressibly positive attitude Totally sales drivenTotally sales driven Competitive by natureCompetitive by nature1.1. Know that both you and your product are world classKnow that both you and your product are world class Know their customers business and sell through client knowledgeKnow their customers business and sell through client knowledge1.1. Good listening skills.Good listening skills.

Rules in Selling Rules in Selling (Carr Communications)(Carr Communications)

Sales are based on relationships –customers buy from people

Customers buy from people they like and trust

To earn this trust, you have to show a real interest in their business

Respect their time – turn up early, be well presented and bring well-presented notes, samples and documentation

Know where your product or service adds value to their business

Explain this simply, clearly and honestly

Believe in what you offer

Speak well of the competition. Always. But know how you are better

If you cost more than the competition, be able to explain what additional value you offer to the customer’s business

Know how to negotiate

Know how to listen

If you promise it, deliver it when you promised (or before)

Exceed customer expectations – again, and again, and again

If you get it wrong, admit it quickly and rescue superbly

Follow through on every detail, no matter how small

Thank them for their business.

Steps In The Selling ProcessSteps In The Selling Process

1.1. PreapproachPreapproach

1.1. ApproachApproach

1.1. PresentationPresentation

1.1. Handling ObjectionsHandling Objections

1.1. ClosingClosing

1.1. Follow – Up.Follow – Up.

Managing The Sales ForceManaging The Sales ForceThe high cost of the sales force calls for an effective sales The high cost of the sales force calls for an effective sales

management process:management process:1.1. Setting Sales Force ObjectivesSetting Sales Force Objectives

products, customersproducts, customers salessales call ratescall rates information gatheringinformation gathering ReportsReports

2.2. Sales Force Architecture / StructureSales Force Architecture / Structure How many different sales forces should we have?How many different sales forces should we have? How should they be structured and staffed?How should they be structured and staffed? What degree of specialisation is needed?What degree of specialisation is needed? What resource levels should be dedicated to each?What resource levels should be dedicated to each?

Clear definition of the sales task is the right place to Clear definition of the sales task is the right place to begin.begin.

Key determinants of the sales tasks are:Key determinants of the sales tasks are:1.1. Which customers?Which customers?2.2. Which products?Which products?• What specific activities are to be accomplished?What specific activities are to be accomplished?

Major Driver: Size and variety of the product portfolio.Major Driver: Size and variety of the product portfolio.Trend: “General” selling (all-account sales) to “specialised” selling.Trend: “General” selling (all-account sales) to “specialised” selling.

Managing The Sales ForceManaging The Sales Force1.1. Competency CreationCompetency Creation

a)a) Recruiting and SelectingRecruiting and SelectingIf you do not start with the right individual, it is very unlikely that training, If you do not start with the right individual, it is very unlikely that training, motivation etc. will turn that person into an outstanding performer.motivation etc. will turn that person into an outstanding performer.To hold down the high costs of hiring the wrong people, sales people must be recruitedTo hold down the high costs of hiring the wrong people, sales people must be recruitedand selected carefully.and selected carefully.

No magic list of traits:No magic list of traits:

High enthusiasm, persistence, initiative, self-confidence, self-motivated, High enthusiasm, persistence, initiative, self-confidence, self-motivated, good communicater, excellent listener, disciplined, hard working, honest,good communicater, excellent listener, disciplined, hard working, honest,committed to sales as a way of life and have a strong customer orientation.committed to sales as a way of life and have a strong customer orientation.

Look at the characteristicts of your most successful sales people for cluesLook at the characteristicts of your most successful sales people for cluesto needed traits.to needed traits.

Selecting Procedure? interviewing / testing? Retention?Selecting Procedure? interviewing / testing? Retention?

• Training Training The sales force require ongoing training.The sales force require ongoing training.

• CoachingCoachingOne – on – 0ne intensive coaching enhances other forms of training. One – on – 0ne intensive coaching enhances other forms of training.

Managing The Sales ForceManaging The Sales Force

1.1. SupervisingSupervising All sales people need supervision and many need continuousAll sales people need supervision and many need continuous

encouragement in view of the many decisions they have to make andencouragement in view of the many decisions they have to make and

the many frustrations they invariably face.the many frustrations they invariably face.

a)a) Directing:Directing:To what extent should sales management be involved in helping salesTo what extent should sales management be involved in helping sales

people manage their territories?people manage their territories? Developing customer targets and call norms.Developing customer targets and call norms. Using sale time efficiently. ( sales force automation system)Using sale time efficiently. ( sales force automation system)

a)a) Motivating Motivating Organisational climateOrganisational climate Sales force compensation Sales force compensation (salary, bonuses, expenses and fringe (salary, bonuses, expenses and fringe

benefits)benefits) Positive incentivesPositive incentives Personal acknowledgement / one – on – one recognitionPersonal acknowledgement / one – on – one recognition

(Sales people have an enormous need for feedback)(Sales people have an enormous need for feedback)

1.1. Sales task clarity is important as a motivational tool.Sales task clarity is important as a motivational tool.

Managing The Sales ForceManaging The Sales Force1.1. Evaluating / MeasuringEvaluating / MeasuringSome important principles:Some important principles:

a)a) By and large, you get what you measure not what you By and large, you get what you measure not what you expect. Sales people will focus their efforts on those things expect. Sales people will focus their efforts on those things that are being measuredthat are being measured

b)b) The measurement system must be tied to all the key The measurement system must be tied to all the key variables central to company targets eg. sales and variables central to company targets eg. sales and profitabilityprofitability

c)c) A good system should also:A good system should also: Learn what the customer needsLearn what the customer needs Learn the potential of the customerLearn the potential of the customer Information on competitors – data from each sales person should be Information on competitors – data from each sales person should be

gathered. gathered.

d)d) Management must develop and communicate clear Management must develop and communicate clear standards for judging performancestandards for judging performance

e)e) Management must gather well – rounded information about Management must gather well – rounded information about each sales personeach sales person

f)f) Sales people should receive constructive feedback that helps Sales people should receive constructive feedback that helps them to improve performance. them to improve performance.

Managing The Sales ForceManaging The Sales Force

Formal evaluation of performanceFormal evaluation of performance

a)a) Comparing the sales performance of different sales Comparing the sales performance of different sales people can be misleadingpeople can be misleading

Differences in territory potentialDifferences in territory potential Levels of competitionLevels of competition Workload etc.Workload etc.

a)a) Comparing current sales with past sales (better Comparing current sales with past sales (better approach)approach)

a)a) Sales Reports, Work Plans / Schedules, Territory Sales Reports, Work Plans / Schedules, Territory Improvement Plans, Expense Reports etc.Improvement Plans, Expense Reports etc.

a)a) Qualitative Evaluation of Sales People.Qualitative Evaluation of Sales People. Knowledge of the company, products, customers, competitors, Knowledge of the company, products, customers, competitors,

tasks etc. tasks etc. Personal traits like manner, appearance, temperament etc.Personal traits like manner, appearance, temperament etc. Problems with motivation or compliance.Problems with motivation or compliance.

Creating Sales & Marketing Creating Sales & Marketing Promotional EffectivenessPromotional Effectiveness

The right customerThe right customer The right channelThe right channel The right frequencyThe right frequency The right messageThe right message The right mix and sequenceThe right mix and sequence The right level of resourcesThe right level of resources

Many of these concepts overlap and are inter-Many of these concepts overlap and are inter-dependant.dependant.

Giving Performance FeedbackGiving Performance Feedback Feedback answers the question “How are we doing?” It is simply Feedback answers the question “How are we doing?” It is simply

information about progress towards the accomplishment of goals.information about progress towards the accomplishment of goals.

Feedback is important because it enhances the effectiveness of Feedback is important because it enhances the effectiveness of goal setting by providing the information needed to modify goal setting by providing the information needed to modify behaviour in order to attain objectives.behaviour in order to attain objectives.

Whether the news is good or bad people need to know how they Whether the news is good or bad people need to know how they are doing; without feedback, good performance may even change are doing; without feedback, good performance may even change for the worse and poor performance may persist or get worse.for the worse and poor performance may persist or get worse.

Feedback is easier and more productive in situations of high Feedback is easier and more productive in situations of high mutual trust and confidence.mutual trust and confidence.

Positive feedback, catching people doing the right thing, is the Positive feedback, catching people doing the right thing, is the most powerful form of feedback.most powerful form of feedback.

At times it is necessary to provide corrective feedback. To be At times it is necessary to provide corrective feedback. To be effective such feedback should be early, private and constructive. effective such feedback should be early, private and constructive. Don’t leave for the annual performance review. Don’t leave for the annual performance review.

Actions to Improve SalesActions to Improve Sales1.1. Strategic Sales Management:Strategic Sales Management:

Clear targets for salesforce. Clear targets for salesforce. Which accounts? Which product? Specific activities.

Customer selection / targeting.Customer selection / targeting. Customer retention.Customer retention. Design of a salesforce structure/deployment.Design of a salesforce structure/deployment. Measurement system/reporting systemMeasurement system/reporting system Training/coaching (improve quality of the people)Training/coaching (improve quality of the people) Motivation.Motivation.

2.2. New Products.New Products.

3.3. Price Increases.Price Increases.

4.4. Promotional Schedule/Targeting products at Promotional Schedule/Targeting products at different times.different times.

5.5. Sales Promotion Tools.Sales Promotion Tools.

6.6. Certain steps by individual area managers.Certain steps by individual area managers.7.7. Increased promotion investmentIncreased promotion investment

Actions to Improve SalesActions to Improve Sales

1.1. Recognising opportunities as a constant journeyRecognising opportunities as a constant journey

2.2. Products and Accounts Rationalisation.Products and Accounts Rationalisation.

3.3. Optimise operating processes.Optimise operating processes.4.4. Exploit existing products (Exploit existing products (Maximise support to best Maximise support to best

products)products)

5.5. Telesales.Telesales.

6.6. Flat Markets;Flat Markets; Sweat the products and take business Sweat the products and take business from the competition.from the competition.

7.7. Lifelong/Continuous learning.Lifelong/Continuous learning.

Lifelong LearningLifelong Learning Product Knowledge.Product Knowledge. Company Knowledge.Company Knowledge. Customer Knowledge.Customer Knowledge. Territory Knowledge.Territory Knowledge. Industry Knowledge.Industry Knowledge.

Animal health industry.Animal health industry. Agri. Industry.Agri. Industry. CAP, WTO.CAP, WTO.

Competitor Knowledge.Competitor Knowledge. Selling Skills.Selling Skills. Marketing.Marketing. Management Management

Skills / Functions /Activities.Skills / Functions /Activities. Human Skills (Emotional Intelligence).Human Skills (Emotional Intelligence).

Sales Managers Accountability Sales Managers Accountability ChecklistChecklist

Train and develop representatives.Train and develop representatives. Assist in their selection.Assist in their selection. Review continuously the level of knowledge skills Review continuously the level of knowledge skills

and the attitude of representatives.and the attitude of representatives. Manage performance.Manage performance. Planning (Sales Plan).Planning (Sales Plan). Direct and control allocated resources to ensure Direct and control allocated resources to ensure

cost effectiveness within allocated limits.cost effectiveness within allocated limits. Provide relevant field intelligence and feedback to Provide relevant field intelligence and feedback to

management.management. Sales Meetings/Training Courses etc.Sales Meetings/Training Courses etc. Cooperate with other departments. Cooperate with other departments.

Direct MarketingDirect Marketing Marketing through various media that interact directly with Marketing through various media that interact directly with

customers, generally calling for the customer to make a customers, generally calling for the customer to make a direct response.direct response.

CharacteristicsCharacteristics Direct marketing is non-public as the message is addressed to a Direct marketing is non-public as the message is addressed to a

specific person.specific person. Direct marketing is immediate and customised.Direct marketing is immediate and customised. Direct marketing is interactive.Direct marketing is interactive.

Growing rapidly.Growing rapidly. Main FormsMain Forms

direct mail marketing; post, fax mail, e-mail, voice mail.direct mail marketing; post, fax mail, e-mail, voice mail. telemarketing / telesales.telemarketing / telesales. catalogue marketing.catalogue marketing. direct response television.direct response television. on-line marketing.on-line marketing.

Customer database Customer database

AdvertisingAdvertising Advertising is the use of paid media to inform, persuade Advertising is the use of paid media to inform, persuade

and remind target audiences about its products or and remind target audiences about its products or organisation.organisation.

Powerful promotion tool.Powerful promotion tool.

Important decisions in advertising.Important decisions in advertising.1.1. Setting advertising objectives:Setting advertising objectives:

To inform (new product, new uses, price change ect.)To inform (new product, new uses, price change ect.) To persuade (brand preferance, switching, attributes)To persuade (brand preferance, switching, attributes) To remindTo remind

1.1. Setting the advertising budget;Setting the advertising budget; What is affordable?What is affordable? Percentage of sales.Percentage of sales. Competitors spending /noise in the market.Competitors spending /noise in the market. Objectives and tasks to be accomplished.Objectives and tasks to be accomplished. Stages in the product life cycle.Stages in the product life cycle. Product differentiation.Product differentiation. Market share. Market share.

AdvertisingAdvertising1.1. Creating the advertising message.Creating the advertising message.

Identify target customer benefitsIdentify target customer benefits Develop a creative concept or ‘big idea’ that will bring the Develop a creative concept or ‘big idea’ that will bring the

benefits to life in a distinctive and memorable way.benefits to life in a distinctive and memorable way.““Have a break, have a Kit-Kat”Have a break, have a Kit-Kat”

““Brain food-every Friday, The Economist”Brain food-every Friday, The Economist”

1.1. Selecting advertising media.Selecting advertising media. Reach, frequency, impact.Reach, frequency, impact. Television, radio, newspapers, magazines etc.Television, radio, newspapers, magazines etc.

1.1. Advertising evaluationAdvertising evaluation

Public Relations (PR)Public Relations (PR) Building good relations with the companys’ various publics Building good relations with the companys’ various publics

by obtaining favourable publicity (free); building up a good by obtaining favourable publicity (free); building up a good corporate image.corporate image.

Old name for PR was publicity: activities to promote a Old name for PR was publicity: activities to promote a company or its products by planting news in media not paid company or its products by planting news in media not paid for by the company.for by the company.

PR is a broader concept that includes publicity and other PR is a broader concept that includes publicity and other activities eg. activities eg.

Press relations.Press relations. Product publicity.Product publicity. Lobbying.Lobbying. Investor relations.Investor relations.

PR Tools ; PR Tools ; News (company, products, people)News (company, products, people) Speeches.Speeches. Special Events (openings, news conferances, press tour).Special Events (openings, news conferances, press tour). Written Materials (annual reports, brochures, articles, newsletters etc.). Written Materials (annual reports, brochures, articles, newsletters etc.). Audiovisual Materials.Audiovisual Materials. Corporate Identity Materials (logos, stationary, business cards etc.).Corporate Identity Materials (logos, stationary, business cards etc.). Sponsorship.Sponsorship. Company’s Web Site.Company’s Web Site. Public Service Activities (raising funds for worthy causes). Public Service Activities (raising funds for worthy causes).

MarketingMarketing

MarketingMarketing1.1. Marketing ConceptMarketing Concept

1.1. Marketing FunctionsMarketing Functions

1.1. The Six Facets of The Six Facets of MarketingMarketing

1.1. Drivers for Sales and Drivers for Sales and Marketing Marketing EffectivnessEffectivness

• Marketing Functions Marketing Research & Analysis Product Development Marketing Planning Marketing Communications Mix

(Promotions mix) Selling Advertising Sales Promotion Direct Marketing Public Relations

Market Segmentation Product Positioning Distribution Customer Service