Showing posts with label Research. Show all posts
Showing posts with label Research. Show all posts

Wednesday, 26 September 2012

Article: Ethical Trading

Despite appearances I don't like getting involved with politics, but the fact is that the political landscape affects us all, all the time. In a democracy it is a landscape that is shaped by our demands upon it. It is not helpful to merely criticise, nor is it helpful to stay silent when things that have been introduced then turn out to cause more difficulties. Just as no business can correct mistakes if it is not aware of them nor can any government. I wholeheartedly advocate not only highlighting the difficulties we all face but to use our imaginations to think up more viable solutions too. The one without the other is no solution at all. I certainly don't have the monopoly on solutions, no one does. Collectively I believe we can and do find them and always have and will. They we always need amending though, because progress never has had a reverse gear.

Over the past year I have encountered many organisation that are not wholly organised, or ethical in how they trade. If it their administration right, it slips up on it's customer service, marketing, budgeting or how it treats it's staff. While that could be true of any time - enterprises, like government reforms, take time to evolve - it seems more prevalent during an economic crisis. I strongly feel therefore that resolving these challenges requires time out to do so if we are to get on a better financial footing sooner rather than later. Hasty, knee-jerk emergency measures without due research, careful planning including contingencies and a thorough and detailed understanding of all the elements that are in play will only ever result in a deeper and more complex mess to unravel.

Information is the key to all matters, but in a time when goalposts seem to be whizzing about at hyperspeed it is perhaps no surprise to find so many enterprises struggling to function at all, even at a basic level. Take comfort though as throughout history, people will eventually slow down, calm down and stop acting rashly, it's just a question of when.

Do not assume that silly edicts will last - they never have. Do not assume they have been instigated from a sense of malice or cruelty - they seldom are. They arise mostly out of ignorance and fear due to there being little time to think clearly or collect information while the demand is for change. It's as if change of any kind will do, when in fact change at all could be the worst thing to do. Changes only help when they have been well planned and all the information has been collated to restructure a business and/or lead to government reforms that are sensible, logical and wise. I believe we can learn much from history, but what we learn and what ideas we come up with do need to be adapted to factors that we are encountering in the here and now to be effective and for the good.

From where I am sitting, the key change of our times is the growing demand for ethical trading. While it has always been in most people's psyche, it seems to have gathered momentum and a stronger voice in recent times - hence my interest and passion for social enterprises as it seems to yield more solutions than anything else on offer. That is not to say though that it has a monopoly on solutions though.

Why ethics is becoming more influential
In the UK in recent years we have had the scandal of cash for honours and politicians using their power for the betterment of themselves as individuals long before the economic crisis actually hit. It is not surprising therefore that many are still calling for parliamentary reforms to correct such things even now when such things have been reported to have been improved and fixed. The level of trust from individuals and businesses alike in any government has been seriously damaged by these things. It's led to all manner of petitions, protests and new movements starting. Add to mix the struggles that always ensue during a recession and it's no wonder at all that any government will have a hard time of it trying to effect sensible reforms while people are less inclined to trust and therefore talk to them.

What is true of our governments is also true of the world of business and industry. People are much more informed about scandals and corruption in those circles too thanks to the development of the internet and in particular social media and there is no going back on that now. With more information comes understanding of what is unjust, unfair and of how these things have come to happen but without full details again no viable solutions will be found. It has led to a growing sense of unrest and dissatisfaction with how things have been run.

Add to that how the Paralympics and the Time to Change campaigns etc have given disadvantaged people a platform to have a voice this year and it starts to become obvious why morals are becoming an element of social structure which will have to be factored in. I cannot see how such sections of our society can ever go back to being forgotten, overlooked or silenced now. For myself I think that's a positive step so long as we can avoid extremist reactions which could result in a reversal of discrimination against people who have not been so disadvantaged.

Ethics is complicated
We are all products of the societies in which we live. The smaller the circle of influence we move in the more insular we become and the less informed we are. Again the internet and media can help us to be informed but we can only ever make decisions based on the information we obtain. The maxim of 'we only find what we seek' holds true. People do not tend to believe anything that does not suit their own agenda, belief or ambitions unless they actively make an effort to understand and be considerate of their opposition to improve communication and negotiate. When it comes to social issues (which without exception helps form who we are and our opinions), we find the intensity of emotion at it's peak.

For example, is is right for governments to spend large amounts of money on trying to reform convicted criminals and less on supporting victims of crime? The hope is that by making such efforts there would be no victims as there would be no crime if they were wholly successful. Add in the fact that many people turn to crime because they are illiterate and the solution might seem simple at least for illiterate types. You might think it would it be right to say criminals are all mentally ill but by doing so you'd make it more difficult for victims of crime to be treated fairly and NOT be tarnished as criminals by mistake. Yes, we want to contain the worst offenders and punish them, but even some of them have become offenders because of what they have been subjected to. I often confuse people because I refuse to come down on one side of the fence or the other without access to all the facts.

A law has to apply to everyone regardless of circumstances but it should in my opinion have discretionary powers to allow for individual exceptions e.g. parking on double yellow lines to save someone's life, but you'd have to prove that that is precisely what you were doing. Ethics is extremely complicated, so it follows that governments and businesses alike have a hard time of it in attempting to be fair to all.

Gearing up in business and industry
Fortunately in business and industry, away from public and community services (including charities), ethics are far more easy to get right. No sweat shops, no excessive hours of work, rest and meal breaks, and a fair wage that reflects the value of worker's skills are all a good start. Paying staff promptly so they don't have to struggle with finances to get to work, allowing them time off to look after relatives in an emergency and providing good training to help both parties develop and succeed all help too.

It's my guess that those businesses and organisations who are already supportive of their staff AND the community will be ahead of the game for the future. Those who provide work for disabled and disadvantaged people, who support public services through giving a slice of their profits will be the most profitable by growing ever more popular and therefore successful. The one common factor all people respond to, is giving more to those who support them in their hour of need and this is something all employers would do well to invest in as their greatest asset will always be their own staff and the broader community, as working or not we are all a part of it. Employers could, and I think eventually will, change not just our current economics with regard to trading, but the political landscape too. For me, it's just a question of when, however, now seems to be as good a time as any to start trading ethically if you are not already doing so.


Friday, 21 September 2012

Research File: Three essential preparations for success in marketing

Following on from 'The lynch pins of efficiency' I thought it might be worth sharing and extolling the brilliance of a few another group of highly skilled and helpful professionals if you're budget will stretch to be able to afford the employ them. Namely marketing professionals which often double up as sales reps and customer service professionals too.

Customer Services and Marketing departments should, in my opinion at all times, be working closely together. Be aware that although there can be and often is much crossover in smaller companies the knowledge base and skills are very distinctive in what they do. Do not confuse the two disciplines. Both can increase or reduce profit margins of the best of strategic plans for any type of organisation, it all depends on whether you have selected, invested and instructed wisely. The rule of Garbage In = Garbage Out (GIGO) applies to any and all.

For the purposes of this article, I will concentrate on Marketing and follow up with a separate one on Customer Services. For the small enterprise it is debatable as to which you start employing staff to do first. My advice is to go with personnel with who will cover your weakest area in skills, knowledge and interest. As ever it is pointless to employ anyone if you are then not going to trust in what they are employed to do and end up doing it yourself. So if you enjoy marketing and are less comfortable with customer service issues or simply find you don't have that much time for them employ a customer service person, and vice versa.

As a business you should already have identified your target audience for the products and services you offer. You should already have done at least some basic research on the demographics of that (client/customer base including location, ethnicity, age, gender etc), and above all have a realistic idea of what they could afford by way of price. If in that research you discover your target audience cannot afford your pricing it would suggest that you are targeting the wrong people or quite simply pricing yourself out of the market. It suggests you might be trying to promote the wrong thing entirely.

When offering community services this becomes an extremely complicated and complex equation to get right and perhaps goes some way to explain why so many private sector companies would rather steer clear of actual service delivery as the profit margins and therefore sustainability and development prospects are simply not profitable enough (if at all) to be of much interest to them. I personally think that is precisely why they shouldn't take control of such services, advice and experience though are always welcome. The private sector are when all is said and done in business to make money first and last. Products even to disadvantaged groups however are much easier for the private sector to make a profit from.

If you doubt that, just think how successful the private sector is at marketing and selling any and all household items let alone standard office materials. Be warned though... Do not be tempted to mimic their marketing campaigns if you are a small enterprise because such campaigns work precisely because they have the budget to indulge in full-blown saturation marketing techniques across all forms of media... extremely costly and skilled! That said an intelligent bit of wording and imagery makes all the difference between winning an audience or alienating them and potentially losing them forever. Know your target audience or service users inside out!


Selling ice to penguins

The most talented of marketing people could literally sell ice and snow to penguins if it wasn't for the fact that penguins are more intelligent than human beings. Penguins happen to know that ice and snow are resources freely available from nature and know where to go to find it. Indeed no other species needs money to be able to eat, rear young, educate them or house themselves which is why I often find myself getting jealous of them. Sadly, as yet I haven't found a way of becoming another species during a recession! Mind you, other species don't have the time to develop interests and hobbies as we do so I guess it evens out.

The big boys invest phenomenal amounts of time, energy and money in research not least in understanding human psychology. They use that to shape how to communicate with their target audience, which is how they end up seducing us into believing we need or must have things that actually we don't. They create interest in things that have never occurred to us, fear of things that we shouldn't be worried about at all and above all a demand from us that we have never desired before. A good example is of this is chunky bars of chocolate. The exact same chocolate can be and is used to produce a myriad of shapes and sizes and it can only ever taste the same but we are seduced into choosing how we like it presented even as far as having it segmented to make it easier to break.

Every day I try my best not to be tempted by things I don't actually need or never had an interest in, but everyday I fail! That, dear readers is what is it is to be muggle in a sophisticated, complex, dynamic, often maddening and frustrating, fascinating, developed, free market social structure. Like it our not, we all contribute to it and we all seem to have a love/hate relationship with it. If nothing else you have to give these people credit for their ingenuity. So, what lessons and tricks can a smaller enterprise learn and use from all this to help them earn a healthy crust?

Three basic marketing essentials

1. Surveys - As outlined above get to know your audience, what they like, dislike, the language they use - how they tick. We are all customers so think about what how we like to be communicated with as a starting point and this should help you avoid some of the bigger pitfalls if you do nothing else. Before starting any enterprise though you should do two forms of research the first of which is to test if your idea will be of interest to anyone at all by conducting a survey.

Top tips for customer surveys



  • Remember everyone is extremely busy, so phrase questions simply  
  • Keep the survey short and to the point - ask only things that you absolutely need to know and ditch any that are just too detailed, complicated or that are off the primary issues you want to find out about 
  • Never have more than three priorities to enquire about in any survey. 
  • Never bombard people with dozens of surveys and always provide a simple comment box at the end for your sample audience to elaborate and speak freely as learning what people hate is as valuable to you as learning what they like 
  • Always make comment boxes optional and supply contact details should you strike lucky for people who might well be your first clients.

This you can easily compile a survey manually via hardcopy/paper, but remember there's no guarantee people will mail them back especially if you are expecting them to pay for the privilege - hence incentives such as freebies can be useful but it's more expense to you. Email surveys tend to get higher levels of response, or on the spot surveys for feedback after inviting people to attend an event. There are dozens of online free to use survey programs these days, but be aware they don't usually provide the analytics (breakdown of results) so you will have to work it out for yourself. It's why even the free services are often enticers to those analytics which you then pay for. Be careful some of these links may charge from the outset.

Seven random links to online survey programs

http://www.quicksurveys.com/
http://www.keysurvey.co.uk
http://www.checkbox.com
http://fluidsurveys.com
http://en.surveyshaker.com/shaker/
http://www.sogosurvey.com
http://www.surveymonkey.com/

2. Market research - It is essential that you know your market to gain knowledge of where you will fit in and to help identify your Unique Selling Point (USP). Questions to consider asking yourself include who are your competitors or who offers similar products and services if you are a charity, public service or social enterprise.

You can do this quite simply but searching the net, saving the links so you can refer back to them and assessing if you will be duplicating (therefore in direct competition) or offering something original, new or different in style or delivery. From both your customer survey and your market research you can start to think about pricing, but never before. Even then you have a long way to go to get it right as you have to factor in costs of materials, hours worked, overheads, staff etc. 

For any new enterprise this can all seem extremely daunting and arduous, but it is vital to do this if you are to succeed. Luckily there are excellent business advisory services to help you every step of the way.

As mentioned before in previous blogposts on here, any organisation dealing with the delivery of services and products to the community should try to avoid duplicating what is already out there to provide a broader range to the community. I happen to think that's not a bad approach for private sector too as no matter what you do, we humans are determined to remain fickle so will ultimately choose from whatever the range of options happen to be available at any given time. The broader the range, the more choice we have. In a recession I think it prudent to bear in mind that diversity can only help as it could mean the difference between recovering from an economic crisis quickly or it deepening.

You can back that bit of research up with exploring what the current trends are for any given industry sector, again online and some are free er... at least initially! Most will offer a 30 day trial period to get you interested in purchasing their services, but my advice is don't until your budget can sustain such a cost comfortably and until you business is sufficiently developed to warrant it i.e. you've employed your first marketing person who should understand how to get the most out of such services.

At the end of the day, even global marketing service companies don't want to waste time and effort on customers who cannot afford to pay for their services or products. They should all be delighted for you to test drive them though as word of mouth and feedback can only help them. Expect lots of emails if you sign up to any of these things, even if you close your account. Fair warning, I feel. Most of these cover global markets, but the more precise you are when you ask your search engine (google, yahoo etc) to find something, the more of a match the results will be.

8 random links to industry trend and analysis information
http://atlasnetwork.org
http://www.gekkomarkets.com
http://trendwatching.com
http://www.bizstats.com/
http://www.businessmonitor.com/bmo/
http://www.satellitemarkets.com/
http://www.tableausoftware.com
http://www.demographicsonline.com

In addition there are countless blogsites, website, books, magazines etc on what is 'hot' and what is 'not'. It is what you will eventually need to learn about if you are successful enough to make it big, but even for the smaller business, small snippets from such sources of information can make all the difference between avoiding launching something at the wrong moment or not. Timing, in marketing can be everything. Here are three more examples of some other online resources useful for research, again at random, note that Mashable is industry sector specific therefore there is bound to be something somewhere on the net for your industry sector I would hope.

http://resources.mediatrust.org
http://mashable.com/
http://www.profitero.com/

3. Unique Selling Point (USP) - arguably the most crucial moment in launching a new enterprise, product or service. Identifying your unique selling point needs careful consideration and should not be rushed if you want to succeed. You will find, as I am right not that it will need refining as you develop. It is, if anything an evolving beast because you should always be aware of trends and changes in what your target audience likes, dislikes and develops new interests in. You might trigger those things or you might not. That in essence is the difference between success and failure - the ability to adapt and change when those two key elements do.

Three golden tips on identifying your USP


  • Do not based it on price and leave it at that. Yes price matters but has been categorically proved not to be the ultimate deciding factor to winning customers and clients
  • Do not base it on customer service alone. As above!
  • Do look at the detail of what your are proposing to offer, the how, what, why, when, who and how as that is what will make all the difference in the world

In conclusion, I hope this will help you to understand why it is that charities, public services, community organisation and social enterprises all have such a hard time of it to just get themselves noticed in any marketplace. I hope this will help explain why so much money now has to be spent on marketing for global charities such as The British Red Cross and why what salaries are paid are actually really good value for money as they seldom reflect the skills - let alone the man hours - of those making these things happen at all.