While the third area, infrastructure, is just as important as marketing and products, it often is seen as secondary. Infrastructure includes ten essential checklist items:
1. Financial knowledge and capability. You must have the capital and a good understanding of financial reports.
2. Hiring the right people. 3. Bricks and mortar. 4. Insurance and risk management. 5. Compliance with regulations (safety, environmental, legal, etc.). 6. Employee training. 7. Employee benefits. 8. Computer operations. 9. Reading and understanding contracts. 10. Protecting against fraud and theft.
Note that the checklist both starts and ends with marketing. While products must be effectively merchan- dised to the customer through display, verbal, written and electronic communication, an important part of marketing is the support the sales, parts, service and administration departments provide back to the customer as well.
BUSINESS ORGANIZATION WITH EXPERTISE IN EACH OF THESE DISTINCT AREAS. THE MOST SUCCESSFUL BUSINESS MANAGERS AND/OR CEOs HAVE AT LEAST A GOOD WORKING UNDERSTANDING OF ALL THREE AREAS.
It is also important to recognize that one area is no more important than the other two areas and that success and profitability are enhanced by all three working well together.
Sometimes, you may have capable people in an organization who understand all three areas. Most of the time, however, you will have people who perform well but are only interested or skilled in one or two of the areas promoted into higher positions. The most common example is the very successful technician who is promoted to service manager only to discover later that this person does not have the social skills in the marketing arena to deal with customers and promote the product.
“
The importance of capable management increases as businesses continue to grow in size. There may be instances where organizations need to look outside to gain the management expertise and balance to take their businesses to the next level. Success and profitability not only require good business savvy, but bal- ance in the three areas of product, marketing and infrastructure as well.
IT IS CRITICAL TO EMPLOY INDIVIDUALS IN YOUR
ANDREW GOODMAN President/CEO
Sept/Oct | The Retailer Magazine | 3
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32