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Wednesday, October 31, 2007

Recent CRR hike by RBI and its implication









What is CRR?

This is the amount of money that the banks have to necessarily park with the RBI. The base of this is the total of the deposits that a bank has.

CRR is one of the best ways to remove excess liquidity from the market, thus cooling of the money supply.
As the money is not available with the banks, banks are forced to lend at higher prices and also push for deposits with higher interest rate. Higher interest on loans will drive people away from loans and higher interest on deposits will incline people towards depositing the money in the bank, rather than consuming it. The reserve ratio is sometimes used as a tool in monetary policy, influencing the country's economy, borrowing, and interest rates.

Recent Hike:

Dr. Y. Venugopal Reddy, Governor, RBI, presented the Mid-term Review of Annual Policy for the Year 2007-08 on 30th Oct 2007, in a meeting with Chief Executives of major commercial banks. RBI hiked CRR by 50 basis point from 7% to 7.5%. Bank Rate, Repo Rate and Reverse Repo Rate kept unchanged. This is aimed to suck out Rs. 16,000 cr. from the system effective from 10th November. The measure has been taken to manage capital inflow and suck out huge liquidity in system. RBI has aired it concern over huge inflow in real estate and equity market.

Was it expected?

No, it was not. Last time US Fed cut interest rate thus easing monetary policy. So even RBI was expected to follow this and take liberal policy decision.

Reason behind CRR hike

According to RBI governor Y. Venugopal Reddy the step has been taken to stabilize the economy from unwarranted excessive liquidity in system. He said in the bank’s mid-term review of annual monetary policy statement: “Financial markets continue to experience conditions of surplus liquidity, warranting an appropriate response in order to ensure orderly market conditions.”

Reddy also recognized the risks from “the rapid escalation in asset prices—equity and real estate—driven by capital inflows”, saying: “...the biggest challenge for monetary policy is the management of capital inflows and the attendant implications for liquidity and overall stability.” we have seen USD 8.9 billion flow into the Indian market in past one month and apparently Dr. Reddy is concerned about that and he thinks that the asset prices have risen to elevated levels

Sensex in recent past has climbed to new levels. During this month Sensex has gained more than 14%.

Implications

CRR hike generally triggers increase in interest rate. But at this point of time when Repo, Reverse Repo and other key policy rate has remained same, there is no chance of immediate increase in interest rate. In short run equity market will suffer a bit. Investors who find India a long-term attractive story will continue to put in money through various routes through portfolio, private equity, FDI. So in long run this decision has no impact on equity market.

Some public sector banks, like Bank of Baroda chairman A.K. Khandelwal and Punjab National Bank chairman K.C. Chakraborty said they would not hike their lending rates following the CRR hike but deposit rates would certainly go down.

Overall we can see this decision more as liquidity management tool rather than an attempt to increase interest rate.

To get a copy of Mid-term Review of Annual Policy for 2007-08 visit http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=3908&Mode=0#p1


Asset of a sales Organization contd......(Part-2)


The Visionary Personality

The visionary personality is focused on detail and is concerned with the analytical process. This individual tends to concentrate more on the means rather than on the end means they mainly concentrate on process and way of doing things instead of work done. He/she is very logical and very thorough. Other common characteristics of the visionary include:


Slower to make decisions

Introvert

• Good at problem solving and working at solitary tasks

• Learns best by reading

• Hates to be wrong (perfectionist)

• Risk Averse

• Logical and methodical

Office of a visionary person: A desk covered with neat piles of charts and graphs.

Do not expect to find much in the way of personal expression.


Clothing and belongings: Ultra-conservative; pocket protectors are a sure sign.

Caution: This type of personality is task oriented and focused on work, not entertaining visitors to the office. Sometimes it happens that they (visionary individuals) will not treat you well but don’t be disheartened because this personality people are very clear in their thoughts if they have decided something, its very hard to change their mindset but here our (sales individuals) determination, patience, tactics etc work as weapon to close the deal.

Tactics to deal with visionary personality:

They require a great deal of information with statistics to accept a claim.

The visionary hears you better when you use terms such as precise, classified, quantified, qualified, logical, reasoned, facts, specific, figures, trials, tested, and proven.

If you have any doubt about this type personality, Go and try to find such traits in your "MATHEMATICS faculty or any researcher"

Related posts:

Determined Personality

PERSONALITY TEST

Tuesday, October 30, 2007

Attempt to define Advertising

Hi, here is an small attempt to define and understand the purpose of advertising.

Confusion exists not only at the point of understanding how advertising works, but even at the level of defining the term. Below are six definitions found in literature.

…….any paid form of non-personal presentation and promotion of ideas, goods, or service by an identified sponsor. (American Marketing Association, 1960)

Advertising is the mass communication of a promise. It promises the satisfaction or gratification of some want- a satisfaction to be experienced from the purchase and consumption or use of the advertised item. The essence of the advertising message, thus, is the interpretation or translation of a product or service into the capacity to satisfy a buyer’s want (Tillman and Kirkpatrick, 1972)

Advertising is controlled identified information and persuasion by the means of mass communication media (Wright, Warner, Winter, and Ziegler, 1977)

…….in essence, advertising is a substitute for the human salesman talking personally to an individual prospect or customer across a store counter or desk or an open door (Bernstein 1980)

…….the advertising function may be equated, at least in part, to the creation and management of product imagery; that is the set of meanings and associations which serve to differentiate a product or service from its competition (Reynold and Gutman, 1984)

These definitions, although different, can be condensed into two basic identifying characteristics for advertising. Firstly, and most obviously, advertising is a form of mass communication. The second point of definition is where ambiguity and confusion arises. This has to do with the effect or goal of the advertising.

Promotion (AMA, 1960), Replacement of a salesman (Bernstein 1980), Differentiation (Reynold and Gutman, 1984), Promising to satisfy a want (Tillman and Kirkpatrick, 1972) or Persuasion (Wright et al, 1977) are all different description of this more difficult to express aspect. Segger (1982) proposes that “……the primary role of advertising is to effect positioning”. The issue is not to select which of these distinctions is correct, but to observe both the commonality and distinctions between each and make that they are all “Correct”.

The underlying, unstated construct which all of these definitions imply, is that there is intent to alter target audience memory structure in a way that they are more predisposed to behave in the fashion advocated by the sponsor.


Sorry for not being original.


Monday, October 29, 2007

Bloody supply chain of Retail


US retailer GAP had recalled some of its garments which it intended to sell in US and Europe for this Christmas because children were involved in manufacturing these fabric. Yes, the demon of child labor rises again for foreign retailers. The irony is that GAP wanted to use the same fabric for a kids line of clothing.


The hearsay began when British newspaper The Observer quoted that children as young as 10-13 were making clothes for Gap in filthy conditions, in a derelict building in Shahpur Jat, Delhi.


They had been sold to the sweatshop in Delhi by their families. The children, some of who worked for as long as 16 hours a day sewing clothes by hand, said they hailed from Bihar and West Bengal. They added that they were not being paid because their employer said they were still trainees; nor would they be allowed to leave till they could repay the amount for which they were bought from their families.


But this is not the first time that retailers have messed up with labor issues. This has been repeated numerous times. Recently another daily reported Calvin Klein contractors employing child labor in Bangladesh. Nike too had labor problems in China. It is evident that unless and until the media or social activist raise these issues these retail giants don’t seem to be bothered how their fabric is woven as long its cheap!


Taking BI beyond the C-level executive

newsmaker Business intelligence (BI) vendors are looking beyond the C-level executive and hoping to getting their tools into the hands of all employees.


Vendors like Microsoft are also looking to place BI tools in familiar environments like Microsoft Office, to make BI more accessible to more people within an organization.

In May, Tibco announced its intentions to acquire BI company Spotfire for US$195 million, in a move bring BI to the "front-line" users.


How relevant is BI to the regular employee?
Ahlberg: BI is a market that's taken a while to come along. Back when it started, it was considered something quite esoteric and niche, but now we're seeing customers putting this out to tens of thousands of users. It doesn't mean it's everywhere yet, though, but what has changed is that people are now thinking about it in a broad way. It used to be the specialized researcher or high-level executive using our tools, but now it's the general knowledge worker. That's a very exciting development.

With so many vendors wanting to bundle BI into their typical offerings, where do you fit into the picture?
Traditionally, BI has been about reporting. But now that's a limited application; the industry is looking for more, and companies want a competitive edge, so they need BI to be predictive.

Vendors like Microsoft want to put BI in a familiar environment like Excel. That works for some people, but often we hear that employees want to do more with that data. With Microsoft commoditizing the reporting side of things, people are coming to vendors like us for predictive BI. They're saying: 'Help me to understand what's going to happen in the future.' I think predictive analysis is more of 'what-if'-ing--something to allow people to test ideas and explore scenarios based on the data they have.

How would you build BI into an IT infrastructure?
Right at the start, for sure. It's never advisable to run BI as a mega operation, but rather to inject it in steps. The worst way to design your infrastructure is to put BI in at the last, because nine months later, when the report is churned out after you're done building and gathering information, the report will no longer be relevant. Putting BI at the end makes the odds of it being right so small. In the nine-month period, things would have changed. So assuming that you built a data warehouse [for credit information] and nine months later people look at the reports. What are the odds that it's going to still reflect the current situation?

Often, in mega implementations, the report rolls out two years after the infrastructure was planned, and gets rejected by the CIO. IT says: 'But that's what you told me two years ago.' And the CIO then says: 'That's not how I run my business anymore.' It's one of the biggest diseases of IT.

With all the information the office worker has to deal with today, and now you're saying they may have to deal with BI as well, it sounds like people will face bigger information overload.
Yes, definitely (laughs). But that's why information visualization is gaining such popularity. My PhD research on the 'human side' to computing was what led to the development of Spotfire. Ten years ago, people were used to dealing with information in a text-based way. If you look at visual interfaces, everything is going graphic, with computer games as a good example. Hardly anyone plays a text-based game, anymore.

But information is still largely dealt with in text. Even with search engines, I'd have to go through hundreds and thousands of results to find out more about something, and it's very hard to deal with this because all I'm getting is text returned to me. If you think about the human visual system, if I gave you text versus good graphical displays, I'd argue that you can deal with a thousand times more information with the latter. It's like the classic expression: a picture is worth a thousand words.



Asset of a Sales Organisation



When we meet an individual for first time how do we start our conversation with him have you thought over this point ever? Hopefully not…

But in the back of our mind these calculations are going on when meet new individual that what type of person he/she is, in just 2-4 minutes we try to evaluate his/her traits and as per his/her traits we start talking with him/her.

Most of time we commit mistake due to wrong evaluation of an individual and face lot of embarrassment and difficulty. In Sales, personality test or evaluation is extremely important otherwise you cannot sustain in this market and never move up on success ladder. Personality evaluation really help anyone to target right individual at right time and on basis of his/her (customer/client) personality traits we present our self (sales managers/sales executives).

There are four type of customer personalities:

Determined personality

Visionary personality

Instinctive personality

Enthusiastic personality

In sales, broadly we divide customers into two major category: (1) retail customer & (2) corporate customers. To evaluate customer’s overall personality three things about him always keep in mind:

  • Individual’s characteristics
  • Office layout
  • Individual’s Clothing

Determined personality

The determined individual likes to be in charge. The determined personality tends to exhibit the following characteristics:

•Cool, impersonal, and in control

• Readily discloses expectations

• Result-oriented—bottom-line focused

• Risk-taking, competitive, and goal-oriented

• Time-conscious, gets things done, and makes things happen

• Poor listening skills

• Impatient

• Opinionated

Office layout of a determined person: Decor suggests power.

Large planning calendars

Awards and honors are often displayed.

Well structured and perfectly organized room.

Clothing and belongings: Dominant and striking, well dressed.

Tricks to interact with determined personality individuals:

Get to the point as quickly as possible. Don’t try to disguise them with jargons or flowery language.

Offer concise explanations, and focus on outcome rather than the process.

Normally this type of personality individuals ask you following questions: “How is this going to benefit me?” “What’s it going to cost me?” “How much money will we make or save?” “When will this project be completed?”

When you are looking for ways to reach the determined customer, consider promoting speedy service, bottom-line savings.

These qualities are not restricted to the customers or marketing professionals, at any point of time these traits will help us in identifying individuals.

Rest three personality type will discuss in next posts, So lets try to find out such personality traits of determinant type among your friends, family members.

May be I have missed some attributes of such personality. If you find other attributes please let me know.

Related Posts:

Personality test

Saturday, October 27, 2007

Game on

Last week I went to Ameerpet, a suburb in Hyderabad. There on a massive construction, on the top floor I saw a billboard. It was big and covering the whole story. It was of 'Zapak.com'. It was clear that the gaming portal owned the place. I got curious. I pondered. Why would a gaming portal need to own a place so big. Was it Zapak's office? But why have an office in a downtown residential place. I entered the building. To my amazement it was Gaming Café. Being an ardent gamer myself, the placed looked like heaven to me. I came back and thought, I need to check this out.



ADA Group's online gaming venture Zapak Digital Entertainment is planning to increase its offerings and open gaming cafes in the country. Rohit Sharma, COO, Zapak Digital Entertainment, has said that by March 2008, 250 cafes may come up in 35 cities. Alredy eight such cafes are up and running in major metros of the country. These online gaming portals are reaching its audience. So the buzz all about? And what's the hurry? To answer this question we will peak into the booming gaming industry. By the way this so called industry has not got the 'industry status' yet and the big player are confused whom should they approach. The IT and Telecom? or the Sports ministry to get tax benefits. Yeah, you read it right... tax benefits for the gamers! So if next time while playing a game on your mobile, u thought its just a pass time, hold on it could become a career! Some gamers spend about 6 to 12 hours a day in gaming. So what are the opportunities for a pro gamer



Job profile : Play computer games at tournaments for prize money

Functions: Strategy, Arcade, Adventure, Sports, and other types of computer games

Preferred education: None--it's enough to play computer games with passion. Those who want to develop computer games can now get degrees in game design and theory.

Certification & licensing: None

Getting ahead: Determination, talent, and great computer skills

Skills & knowledge: Hand/eye coordination, speed, concentration, competitiveness, teamwork, ability to strategize

Where they work: At the top levels, most computer game players play on teams or clans

Job outlook: Highly competitive

Earnings: Top players earn six figure salaries

The industry is still in a very nascent stage. It accounted for only 21 crores in 2007 but this is growing at a very fast rate. By 2010, India's online gaming market will exceed $200 million. Companies like Reliance and Sify were the first entrants into the gaming café segment. About 50% of the gamers come from the 4 metros. The major revenue comes from three sources,

  • Advertising
    • Games developed for brand promotion.
    • Brand/logo placement inside an existing game. E.g. Honda logo in a racing game
    • On-Site advertising: Banner ads on gaming sites and gaming pages of portals
  • Subscriptions
  • Organised Cyber Café
    • Revenue accruing to Reliance & Sify from online gaming activities at Web Worlds & Game Dromes.

There are some obstacles ahead. Firstly there seems to an anti-gaming culture in India. Secondly there is infrastructure issues like poor broadband penetrations. Lastly the game development is not considered as a serious career option in India.



Download: IMRB report on Indian gaming industry

Friday, October 26, 2007

ADVERTISING – ON THE TRACK OF FREQUENT TRANSITIONS

ARTICLE FROM:
NIVEDITA SINGH
IBS HYDERABAD

“Advertising may be described as the science of arresting the human intelligence long enough to get money from it.”

Stephen Butler Leacock, quoted in Michael Jackman, Crown's Book of Political Quotations, 1982, New York: Crown Publishing In.

One major point of concern here however is ‘how long could it be’, especially in this micro-second changing environment. The manner in which advertising has been taking place is an interesting story as it involves so many innovative ideas not only in the creation of it but also in the implementation and delivery mechanism of an advertisement.

The main aim of any advertising is to create “astonish and wonder”. Now to keep self updated so as to fulfill this aim is the major task of these advertising agencies. Be it change from the type of message, kind of media or reach and timing of information transfer, everything has to be necessarily be in relation to the customers and their changing perspectives. This is validated by the fact that it is the customer who has to acknowledge any advertisement and with such varied options available for him, gaining attention becomes highly competitive.

"Advertising is the art and sole of capitalism. It captures a moment of time through the lens of commerce, reflecting and affecting our lives, making us laugh and cry, while simultaneously giving traction to the engine that propels this free market economy forward into the future."

- Jef I. Richards (2001), Chairman of The University of Texas Advertising Department.

To understand what affects the mood of a customer, thus, is a mandate. This is where an advertiser can show his expertise when he needs to break the clutter of varied advertising around and show better means of capturing the customer touch-point. However this does not mean giving the customer exactly the readymade message and idea that he is looking for, it has to be designed and shaped in a way that arises curiosity for the customer. He should himself have the zeal to break in and find the message, only then can an advertisement prove to be effective.

Earlier however things were more directly conveyed; take the instance of the advertisement of the washing powder NIRMA. The ad was made in a way that it conveyed the product features and its benefits, the customer just had the task of recalling it and purchasing the product. In the present era however as the knowledge level of the customers is on a high, they like things being left out to them to understand. This makes them delighted as they feel a worth in discovering things themselves and to the great fact such advertisements are the ones which create more recall capacity and also preference for that matter.

We take the example of an advertisement of a windmill designed by the Square Circle agency for their client Vestas. It is hard for a common man to realize the potential of a windmill which can produce the same kind of power as a hydropower plant does, but to convey such difference and relevance in a short duration advertisement requires great proficiency undoubtedly.

The ad goes as a young boy falling off a boat in the middle of an ocean. He is then shown chancing upon a metal object , which is actually a windmill blade. He hangs on to it and with its aid reaches the shore where he realizes that the metal piece that he held was a windmill blade. It is then that he realizes the huge capacity of a windmill which fascinates him. Now this was not a direct overt conveyance of message yet the curiosity and excitement caused by it was observed to be tremendous as it changed the manner in which people viewed a windmill.

CHANGING SEX ROLES IN INDIAN ADVERTISING

A shampoo ad featuring Bipasha Basu with the sizzling youth John Abraham made the overall ad scene a hot shot to look at. Did this have any relation with the product being advertised? Well strangely NO. Then what could be the reason for hiring such expensive stars to make it for the product. Cinematographed in monochrome with the right shades of darkness and mood lighting, the word 'hot' recurs like a double-edged metaphor in the ad, an adjective that has no direct relationship with the product being advertised.

Apart from the couples promoting any product, we also consider how changes have come in the individual appearances of the genders. Earlier in every sports and atheletics ads only men were found to portray their masculinity and associate the product with it. However with the times changing, now it is no more the similar scenario. For instance in most of the ads today, we find Sania Mirza as the brand ambassador. Women in Indian ads are being presented in less dependent roles than they were before.

An ad for a leading women's fortnightly recently carried a delightful image of an ageing woman in bridal attire. It later transpires that her daughter is getting her married again! This is an example of positive advertising that subtly carries a social message. Many mother-daughter ads in recent times bear out female bonding, in effect, subtly marginalizing the role of men by cutting them out completely from such ads. Yet, women do not still appear in ads for 'solid' products such as steel and cement and even if they do, they are sidetracked within the script.

Conclusively gender roles in Indian advertising continue to change. Taking celebrities as an example, Amitabh Bachchan is advertising for a brand of diamonds, which across the world till this day, is known as a woman's best friend. Bachan's role is a kind of revolution, since even today, every other diamond advertisement on the small screen and the print media exclusively uses women as the main model.

THE CHANGING COUNTENANCE OF RECRUITMENT ADVERTISING

Gone are the days when an advert placed in a national newspaper was assured of guaranteeing a quality response from which to select good candidates. Today there is a need and also opportunity for multiple channels to simultaneously exist. A sensible strategy is said to be only the one which could include all or any of the following:

  • print advertising (national, regional, trade),
  • job-boards (specialist, generalist),
  • business and social networking sites (e.g. Linkedin, Facebook etc),
  • targeted sites (client, recruiter) and behavioural targeting (through print or online media).

All of these can be used in different creative formats such as job postings, banners, skyscrapers, MPUs, email sponsorship etc.

As a result today’s most experienced recruiters can drive more effective and focussed campaigns. Poor recruiters will simply find their capability diluted and their effectiveness rapidly decline.

For selecting the right recruitment ad strategy there are certain points to be taken into consideration:

SCALE - The ability to track both the volume and quality of responses to various media can be a source of considerable competitive advantage. A challenging reaction to use an on-line strategy on grounds of cost may or may not be more effective than a national print media or a multi-channel campaign.

BRAND - Advertising in a suitably branded way always maximizes the response. Having a brand that is clearly respected and positioned in the market will attract candidates. Good advice on the strength and use of an employer or recruiter brand is vital.

ENHANCED ONLINE ADVERTISEMENTS – The effectiveness of any ad or the medium for that matter comes on a stake as the number of candidates registered and the number of jobs placed on job-boards increases. Quality recruiters hence need to be informed of the latest techniques for highlighting opportunities so that they stand out from the crowd. Furthermore pro-active management of these channels enables flexibility to adjust the campaign in real-time to modify the type of response generated. This can prevent the need for expensive re-advertising.

DESTINATION WEBSITES – As the number of recruiting websites is increasing almost daily, the choice could become bewildering for the candidates. The advertisers who wish to remain distinct quality service providers need to conform to two major and basic principles, which are:

i) Tight Market Positioning – so as to target a specific audience and provide the quality jobs which are not only numerous but also attractive. Here the companies follow a highly focused strategy with high level of confidence.

ii) Candidate Care- In a candidate tight market good ‘care’ is crucial to maintaining a mutually beneficial relationship. Evidence of this is the relative importance that sites give their candidate and client population and how interactive recruiters are with their network. Failure to actively engage ones network is to fail a major part of our client base – our potential candidates.

Related Articles:

IS ADVERTISEMENTS ITSELF THE USP?

ADVERTISING & ITS NEGATIVE RECALL

BRANDING Vs ADVERTISING



BRANDING Vs ADVERTISING: New Avenues

Marketing includes N-number of functions like sales management, branding, Public relations, Advertising, Customer care etc.

  • Branding and advertising do they work simultaneously ?
  • Which is more important and why?

Advertising: Promote yourself with all your value added features

Branding: Recognize one product/brand by others (customers) on the basis of logo, name or symbol.

In case of Airtel ads like “dadu chess wala” emphasize on emotional feelings of Indians and importance of proper communication. At this point of time company pushing its product to customers while in case of branding customers recommendation, acceptance, attachment with the company from customers side.

Advertising play a crucial role in brand building, if we take an example Sprite its advertisement click the market for it otherwise its bit difficult for any new product to set its image in customer’s mind especially when colas are on everyone tongue.

Another example BINGO, when it was launched in april-may this year nearly 90% market was captured by Frito Lays and its first time for any Indian company to launch on national level with 32 variants, but that the advertising which generates the eagerness among customers about BINGO. & many more

Now I am contradicting my point that advertising not always required to establish yourself. There are very few examples are there like ARAVIND EYE HOSPITAL, Private labels and (now) cigarettes & liquor etc (right now I am unable to recall other brands which established without advertising ). Even today when mass media advertisement are banned for cigarettes & liquor they are enjoying the same brand equity. The medium of maintaining its equity is buzz, creativity and much more.

Today, Brand Managers are trying to reinvent themselves and discover for themselves new paths to tread. Just imagine for yourselves that a massive mass-media purge has just occurred. A selective atom bomb has decimated every form of mass-media advertising for you. How would you approach your prospect consumer?

The answer will dawn on you then... ... .in many a creative format.

There certainly is life after death! Life after the death of mass-media advertising for your brand!

Have a check out the video link and imagine the innovative concepts applied by Virgin airways, IKEA & VODKA….

http://www.adage.com/video/Player?spotId=1288&instanceId=&startId=&
PageDate=&PageTitle=',578,500


Innovative ideas, creativity leads advertising agencies to think beyond traditional periphery of ads to maintain unique image among your customers.

To check out your creativity, can you create an one minute advertisement to promote parker pen

Conditions: No celebrity endorsement, cheapest, original ….

Related Articles:

RIGHT NAME IS GOOD WAY TO START

IS ADVERTISEMENTS ITSELF THE USP?

BRAND PERIODIC TABLE

ADVERTISING & ITS NEGATIVE RECALL

LACK OF SWITCHING EFFECTS IN ADVERTISING

Thursday, October 25, 2007

LIFE BEYOND REALITY

ARTICLE FROM:

SOURAV GHOUSAL
IBS HYDERABAD

--------- An arena to live with dreams and fantasies……

Name: Berk Noyas
Age: 28
Profession: Software designer

Berk Noyas was holidaying on one of the beautiful gondolas in Venice. Along with him was his personal guitar and his favorite possession, I Pod. A welcome break from his hectic job schedule at the silicon valley, and here he is at his dream location: Venice

A knock on the door and my mom comes in and says, “ Don’t u have anything else to do! The whole day you waste your time on Second Life.”

Second Life!!!! What is that! Sounds like another boring video game. Hold on a second, it’s the hottest online revolution. You can create your own identity. You can be anything :

James Bond 007, on a secret mission to Israel (not to forget the Bond girls you will be getting along), or Inspector Morse tracking into the latest murder case, or you could be the business magnet you always dreamt of.

So called happily married men/women! Tired of your daily quarrels with your wife or hubby, with whom you vowed never to quarrel. There is something for you in second life.

You may be married to Natasha or Anil in real life, but the beautiful Angelia and the handsome Brian are waiting for you in Second Life. Fear to betray your better half, come on its just a virtual world.

Thousands of people around the world lead a second life, second jobs, second families, second business and most important of all a second identity. But the hard truth is all is virtual. But the biggest advantage of all is the freedom to do anything. Anything you never got a chance to do in real life, you fantasized to do.

But why am I saying all this. Second Life is the market strategy of the future and companies have started using this to their maximum benefits. Recently singer Regina Spector performed in virtual life. This was to promote her new album and her company Warner Brothers.

Maruti has decided to buy an island for a one time fee in the virtual world. It has decided to hire some programmers to design a gigantic driving course and digital cars which people in the virtual world can actually drive. I guess nothing can be more innovative to promote your product.

One can buy real estate in virtual world with the exchange currency being Linden Dollar. So u can understand what opportunities real estate firms has to market their products. This is just the beginning!!

The question arises that why second life, when every thing is there in first life. The answer is as Second Life.com says since it has opened there have been 8,608,489 visitors. People are more attracted to the concept of second life. It is a thrill to be at second life for people who are bored with the first real life.

As an official of Second Life quotes: “It is a virtual incubator for innovation and entrepreneurship. You could buy and sell LindexX , the official Second Life currency at 250 Linden dollars to the US dollar”

So what are you waiting for, log on to www.secondlife.com and experience the fantasies of virtual world before reality bites you again.

Guerrilla tactics


Guerrilla marketing was coined by Jay Conrad Levinson in his book "Guerrilla Marketing" in 1983. It is derived from the term guerrilla warfare. It is wrongly termed as a strategy, it is more of tactics. The word was coined in Spain to describe their warfare in resisting Napoleon Bonaparte's French regime, its meaning was broadened to mean any similar-scale armed resistance. Guerrillero is the Spanish word for guerrilla fighter. Guerrilla has a more operational angle to it. It is about how it is done rather than what is done. Though I could not find a perfect definition for guerrilla warfare, this is the closest I could get.



Guerrilla warfare (also guerilla) is the unconventional warfare and combat with which small group combatants (usually civilians) use mobile tactics (ambushes, raids, etc) to combat a larger, less mobile formal army. The guerrilla army uses ambush (draw enemy forces to terrain unsuited to them) and mobility (advantage and surprise) in attacking vulnerable targets in enemy territory. - Wikipedia



The features of guerilla warfare are

· In guerilla it’s the weak that attacks the stronger one.

· It’s the weaknesses of being small that is converted into a strength. It’s like a group of ants bringing down an elephant.

· Guerilla is characterized by agility, deception, surprise, ambush, camouflage and intelligence.

In India Shivaji Bhonsale, who founded the Maratha empire in 1674 in western India, employed guerrilla warfare successfully against the Muhgals in the hilly terrain of the Sahyadaris. He faced daunting challenges such as repeated invasions by huge enemy armies, notably the Mughals and the regional Sultanates, which would have defeated a lesser leader. Shivaji coped and survived and eventually emerged triumphant by using innovative tactics including hit-and-run, strategic expansion of territories and forts, by constantly keeping on the move, by being highly mobile and by always keeping one step ahead of his pursuers. Shivaji brilliantly overcame disadvantages of size and resources by adopting intelligent strategies and tactics, including taking advantage of their intimate familiarity of the mountainous and rugged Maharashtra terrain, by being highly mobile and lightning fast, and by adopting hit-and-run tactics.






Now lets see how marketing scrounged guerrilla warfare. Guerrilla marketing is an innovative way to compete against a market leader, who has more financial muscle. It involves time, energy and innovation to reach the masses rather than a big advertising budget. It is all about getting the maximum impact at minimum cost. Such promotions are sometimes designed so that the target audience is left unaware they have been marketed to and may therefore be a form of undercover marketing (also called stealth marketing). The ethics of guerrilla marketing have often been called into question due to an alleged deceptive, misleading, or subtle nature of the campaigns.


Forms of guerrilla



Viral marketing is a promotional tactics which spreads the word about your product like a virus. The marketer relies on the customers to promote the product.


Ambient marketing is using unconventional media i.e. apart from the classic generic group( TV, print, radio, posters and cinema). It is done in places where people generally wait and have idle time, like in queues or places having high traffic.


Buzz marketing -- word of mouth marketing


Undercover marketing -- subtle product placement


Astroturfing -- releasing company news to imitate grassroots popularity


Experiential marketing -- interaction with product


A Guerrilla marketer must be flexible. They must be able to change tactics very quickly; this may include abandoning a market segment, product, product line, brand, business model, or objective. Guerrillas are not ashamed to make a strategic withdrawal.

Guerrilla is suitable when:

· the target competitor has relatively strong resources and is well able to withstand a head-on attack.

· the attacker has moderately weak resources.


Related article

Alexander: the supreme strategist

Guerrilla blogs

http://www.gmarketingcoach.com/blog/

http://blog.guerrillacomm.com/