Text 14 Management

Management is the process undertaken by one or more persons to coordinate the activities of other persons to achieve high-quality results. We believe the job of managing is one of the most exciting and personally rewarding positions a person can possibly hold. The manager's job is critically important because managers make a difference in how our society functions and in the standard of living we enjoy. Each organization can be represented as a three-story structure. Each story corresponds to one of the three general levels of management: top managers, middle managers, and first-line managers. At the basic level of this pyramid there are operating employees.

Top managers are upper-level executives who guide and control the overall activities of the organization. They are President, Vice President, Chief Executive Officer.

Middle managers develop tactical plans, policies, and standard operating procedures and they coordinate and supervise the activities of first-line managers.

A first-line manager is a manager who coordinates and supervises the activities of operating employees.

Operating employees are qualified and non-qualified persons working for the organization. For their labor or services they get salaries or wages. They represent the work force of the organization. Managers at every level of the organization do planning. Through their plans, managers outline what the organization must do to be successful.

An organizational structure can also be divided more or less horizontally into areas of management. The most common areas are finance, operations, marketing, human resources, and administration. Also may include research and development or risk management.

The horizontal classification can be displayed the following way: a financial manager, a marketing manager, an operating manager, a human resources manager, an administrative manager.

A financial manager is primarily responsible for the organization's financial resources. An operating manager creates and manages the systems that convert resources into goods and services. A marketing manager is responsible for the exchange of products between the organization and its customers or clients. A human resources manager is in charge of the organization's human resources programs. An administrative manager provides overall administrative leadership. An administrative manager coordinates the activities of specialized managers in all these areas of the company.

Managers must carefully diagnose situations; use their abilities, skills, and knowledge to weigh all facts. Managers can't give “maybe” answers. They usually have to say yes or no and then defend their response. A good manager has to have such categories of skills as: conceptual, decision making, analytic, administrative, communicational, interpersonal and technical. For example, decision making skills are the ability of a manager to choose the best course of actions of two or more alternatives.

A manager must decide the following:

• What objectives and goals must be reached?

• What strategy must be implemented?

• What resources must be used and how must they be distributed?

• What kind of control is needed?

Conceptual skills are very important for top managers because they help them plan “super goals”. The job of managing and working with people is difficult. But few careers are as stimulating as of a manager.

Questions:

1. What are the levels of management?

2. What are the common titles associated with top management?

3. Who is at the bottom of management?

4. What are the most common areas of management?

5. What is a financial manager responsible for?

6. What is an operating manager traditionally equated with and what are the changes in recent years?

7. What is a marketing manager responsible for?

8. What does an administrative manager coordinate?

9. What categories of skills do you know?

10. Explain the types of skills that managers need to achieve their goals?

Text 15

Market Research

Managers need information in order to introduce products and services that create value in the mind of the customers. Market research allows companies to learn more about past, current and potential customers, including their specific likes and dislikes. Various methods of market research are used to find out information about markets, target markets and their needs, competitors, market trends, customer satisfaction with products and services, etc.

Consumer research is an essential element of marketing research. It is used to discover behavior patterns (how people act) and customer needs.

There are two main sources of consumer research - primary and secondary.

Primary or field research involves talking to people and finding out what they think about a market, a product, a business sector, etc. There are many ways to conduct primary research:

1. Interviews, which can be telephone, face-to-face, or over the Internet.

2. Mystery shopping – when a person poses as a consumer and checks the level of service and hygiene in restaurant, hotel or shop;

3. Focus groups made up from a number of selected respondents;

4. Product tests are often completed as part of the 'test' marketing process. Products are displayed in a mall of shopping center. Observers will contemplate how the product is handled, how the packing is read, how much time the consumer spends with the product, and so on; 5. Omnibus Studies: a market research institute carries out for several companies at the same time. This research is far cheaper, and commits less time and effort for a company than conducting its own research.

Secondary or desk research is relatively cheap, and can be conducted quite quickly. This research is an analysis of the information you can find easily without leaving your desk. Examples include the internet, books, newspapers, magazines and government statistics, published company accounts, business libraries.

Consumer research can be either qualitative or quantitative.

 In qualitative research small group discussions or in-depth interviews with consumers are used to understand a problem better. The qualitative method investigates the why and how of decision making, not just what, where, when. 

Quantitative research involves collecting or gathering large samples of data followed by statistical analysis. This type of research deals in numbers, logic and the objective, while qualitative research deals in words, images and the subjective.

Qualitative research is usually better for exploring, understanding, and uncovering, while quantitative research is generally better for confirming and clarifying.

Motivation research investigates the psychological reasons why individuals buy particular goods or why they respond to specific advertisements. The three major motivational research techniques are observation, focus groups, and depth interviews. Generally, observation must be supplemented by focus groups or depth interviews to fully understand why consumers are doing what they do. The focus group in the hands of a skilled moderator can be a valuable motivational research technique. To reach its full motivational potential, the group interview must be largely nondirective in style. The heart and soul of motivational research is the depth interview, a lengthy (one to two hours), one-on-one, personal interview, conducted directly by the motivational researcher.

Market research is a key factor to get advantage over competitors. It provides important information to identify and analyze the market need, market size and competition. Based on market research data, businesses can develop a “target audience”.

Questions:

1. What is the purpose of market research?

2. What type of research is consumer research?

3. What are the main sources of consumer research?

4. What does primary or field research involve?

5. What are the ways to conduct primary research?

6. What does secondary or desk research involve?

7. What does qualitative research involve?

8. What does quantitative research involve?

9. What does motivation research investigate?

10. What is the heart and soul of motivational research?