Thursday, May 31, 2012

Marketing Methods & Vehicles 2: Provide Profitable Promotions

Promotion offerThis continues our series to increase profits through marketing methods and vehicles

Methods and vehicles is the 5th pillar of Bryan Waldon Pope’s the 7 Pillars of Successful Marketing. Methods are the processes (or procedures) that draw clients to your business, hopefully, to buy your product or service. Bryan outlines three methods: promotions, publicity/public relations, and advertising. Each one involves a different process. Today we will examine promotions.

Promotions Offer Something to Clients

Promotions are marketing activities that are designed to get the cash register ringing with a specific offer, a strong call to action, and a deadline. Those three elements create promotions.

The specific offer holds the key to a good promotion.

  • Your promotion may be directly related to your product or service. For example, a cosmetologist offers a free hair wash with the purchase of a perm.
  • A cross-promotion occurs when you offer a product from another company. For example, an auto mechanic offers a free meal at a local restaurant for those who get an oil change. Cross-promotions should provide as close to a balance as possible.
  • Your specific offer may have no relation to your own business or another one. For example, a certain retail, furniture store offers hot dogs and drinks to customers. The promotion brings people into the store without promoting another company and has nothing to do with furniture.

How to Construct a Profitable Promotion

A promotion is a popular marketing method that combines three important elements to create excitement and garner response. Those three elements are:

  • A specific, compelling offer should include a totally free offer rather than a discount
  • A timely and powerful call to action such as
    • “Call…”
    • “Come to the store to claim your…”
    • “Click here to receive your…”
    • “Join us at…”
  • A meaningful and compelling deadline
    • “You must claim your gift by this Friday”
    • “Offer only good for the next 4 days”
    • “Come to the store for you free hot dogs and chips this Saturday between noon and 3pm”

Saturday we will present how to increase publicity and public relations for your business

Tuesday, May 29, 2012

Marketing Methods & Vehicles 1: Overview

As Seen on TVThis begins a series on marketing methods and vehicles to improve your sales revenues

Last year we reviewed Bryan Walden Pope’s the 7 Pillars of Successful Marketing. One of the 7 pillars describes using various methods and vehicles in marketing. They provide variety to your marketing effort. Methods include promotions, publicity/public relations, and advertising. Vehicles include what you use to deliver your message. We will explore each of them in detail over the next few weeks.

Methods of Marketing

Merriam-Webster defines a method as “a procedure or process for attaining an objective”. You can summarize almost all the processes or procedures to invite people to your business or to purchase your product or service:

  • Promotions involve the process of enticing people to come to you by offering them a gift, sample, or something similar. Cross-promotions occur when the gift or sample you offer comes from another company you use to invite people to your company and theirs
  • Publicity/public relations use free stories or messages to raise an awareness of your business so that people buy your product or service. Publicity may also include paid events like sponsoring a community event or charitable cause.
  • Advertising follows the procedure of paying to place your message in front of potential, current, or future clients. You sculpt the message exactly the way you want it.

Vehicles to Communicate Your Message

Merriam-Webster defines a vehicle as a “an agent of transmission”. You transmit your message through a number of vehicles:

  • Print conveys your message visually through any printed medium: newspaper, magazines, fliers, mailers, coupons or more
  • Radio sends audible messages to potentially targeted audiences based on listening habits: rock, country, Latino, public radio, classical, or more
  • Television transmits your messages visually and audibly over the air: networks, locals, cable, or satellite
  • The Internet sends your message throughout the world using video, audio, print, interactive, and even games
  • Parties have become an increasing agent of transmission to market plastic containers, health products, kitchen products, clothing, and more

We will examine each in the next several posts.

Thursday we focus on marketing method of promotion and cross-promotion

Saturday, May 26, 2012

Human Resources 12: Avoiding Discrimination & Harassment Charges

discrimination in the workplaceThis concludes our series on human resource issues affecting your business. I wish to thank Dr. Lori Wadsworth for the content of this series.

Most business owners avoid discriminatory practices with employees or clients. Some remain unclear about which anti-discrimination regulations apply and when they do not. Regular changes require frequent updates.

Protected Groups Against Discrimination

Civil Rights Act applies to businesses with 15+ workers at least 20 weeks/year

  • No discrimination based on: race, color, religion, sex, and national origin
  • Relief if discriminated: legal costs, back pay, created by EEOC,

Griggs v Duke Power defined to two kinds of discrimination:

  • Disparate Treatment: direct discrimination, unequal treatment, prejudiced actions, different standards for different groups
  • Adverse Impact: indirect discrimination, unequal rules, decisions with racial/sexual consequences, same standards but different consequences for different groups

Gender discrimination of compensation was enhanced by the

  • Equal Pay Act prohibits discrimination for same skill, responsibility & working conditions
  • Pregnancy Discrimination Act of 1978
    • Prohibits discrimination of pregnancy, childbirth, or related medical conditions
    • Decisions about the welfare of future children left to parents not employers
    • Company’s responsible for OSHA standards & to warn employees of risks

Americans with disabilities act applies to employers with 15+ employees and:

  • Protects “physical or mental impairment that substantially limits employees in major life activities”
  • Requires companies to provide reasonable accommodations to help fulfill essential job functions

Other Rules and Regulations

Immigration and Control Act of 1986 covers employers with 4+ employees:

  • Prohibits discrimination based on national origin and citizenship
  • Unlawful to hire any unauthorized immigrant
  • Verify legal authorization to work with I-9 documents

Employers must prevent sexual harassment:

  • Quid Pro Quo: may not offer or refuse raises or promotions in exchange for sexual favors
  • Hostile work environment: frequency or severity of conduct, physically threatening or humiliating, interferes with work performance
  • Requirements: zero-tolerance, communicate to all employees, establish complaint procedure, act quickly to resolve problems, and provide training

Recent discrimination issues include:

  • English-only rules in the workplace
  • Discrimination based on sexual orientation and gender identity
  • Genetic information nondiscrimination act (GINA)

Tuesday we’ll explore methods and vehicles for marketing your business more effectively

Thursday, May 24, 2012

Human Resources 11: Employment-at-Will Issues in Your Business

Employment at willThis continues our series on human resources issues that affect your business. We recognize the contribution of Doctor Lori Wadsworth for the content of this series. We urge you to consult a legal professional before taking any action.

Some laws governing employment involves the nature of the contract between employers and employees. Unless you prepare a written contract or verbally imply a contract during the selection and negotiation phase of the employment process, your state laws may create a contract.

Pre-Employment-at-Will Rules

Some legal rules protected employees from harsh business owners. Protections outlined a disciplinary process of verbal and written warnings. It required business owners to establish a paper trail that documented reasons for termination.

Many times the rules protected employees from unjustified termination. Other times it prevented business owners from terminating employees that performed poorly or created problems in the workplace.

Employment-at-Will Law

Employment-at-will began with writings of Horace G. Wood in1877. He erroneously claimed that states had already established the at-will rule. Based on his writings several states implemented at-will statutes and decisions. To this day, you can find conflicting opinions both defending and criticizing the principle.

The American Journal of Legal History says “In almost every jurisdiction in the United States an employer can discharge an employee without notice and without cause unless the duration of the employment relation is specified in an employment contract. The employment at will rule has come under attack recently, but the rule is still generally applied to employees at all levels of work.”

Exceptions to Employment-at-Will

Some exceptions exist:

  • Employees represented by trade unions
  • Civil servants
  • Members of classes historically subjected to discrimination (CRA of 1964, ADEA, ADA)
  • Public Policy (Except in AL, DC, FL, GA, LO, MA, NE, NY, RI)
  • Implied contract (Except in DE, FL, GA, IN, LO, MS, MO, MN, NC, PA, RI, TX, VA)
  • Implied covenant of good faith (Except in AL, AS, AR, CA, DA, ID, MS, MN, NV, UT, WY)
  • Statutory exceptions (FSLA, NLRA, ERISA, CCPA, ELCRA, MCLA, MWPA,

Saturday we will explore discrimination legal issues that could get your business in trouble

Tuesday, May 22, 2012

Human Resources 10: Ending the Employment Relationship

Clearing Out Their DeskThis continues our series explaining how human resource functions may affect your business. I thank Doctor Lori Wadsworth for this information. 

Sometimes a disciplinary action does not create the improvements you seek. You may need to end the employment relationship. Sometimes you need to lay workers off to reduce costs.

Terminating or firing an employee  never feels good. You will probably find it a gut wrenching experience.

Most Common Manager Errors

  • Withhold the real reasons for termination
  • Failing to follow written policies and procedures
  • Failure to document employee’s misconduct
  • Withholding payment of employee wages

Effective Practices for Layoffs

The following will improve your layoff experience:

  • Plan thoroughly to identify who you need to layoff and how you will do it
  • Address the needs of those who be laid off
    • Retraining
    • Emotional impact
    • Severance pay, if available
  • Behave professionally

Prepare for the Termination Meeting

Your preparation will reduce problems with the termination:

  • Keep it private
  • Have documented warnings ready if the person contests your reasons
  • Prepare the exit letter explaining the reasons for termination
  • Print the final paycheck to give them at the meeting
  • Choose the right place for privacy, neutrality, and authority
  • Identify who should be present at the meeting (at least two representing the company, you need a witness)

Conducting the Termination Meeting

A few tips for the meeting itself:

  • Ensure you have a person to witness what happens in the meeting
  • Be prompt
  • Present the situation in a clear, concise, and final manner
  • Listen to them and don’t argue
  • Be empathetic and caring, but not compromising (remember you already gave them a chance through the discipline process)
  • Get them out the door, with their belongings, quickly

Some employees make it worse with angry or emotional reactions. Coping with their reactions requires your tact, patience, and wisdom.

  • 42% involved screaming matches
  • 24% sent negative mass emails on their way out
  • 12% vandalized or stole company property
  • 4% involved in physical violence
  • 52% of people who quit do so because a co-worker was fired or quit

Thursday we will discuss the impact of employment-at-will on your business

Saturday, May 19, 2012

Human Resources 9: Employee Discipline Issues in Your Business

Discipline an employeeThis continues our series on human resource issues that affect your business. We acknowledge Dr. Lori Wadsworth for the information included in this post. We also encourage you to consult with an HR or legal professional if you need more guidance.

You may find employees that fail to do the job you want done, do not fit into your team, or return a good investment on what you pay them. You may also encounter employees with persistent tardiness, absenteeism, or poor work ethic. As a result, you will probably need to discipline at least one employee in your business.

Reasons Owners Fail to Address Employee Issues

  • The replacement could be worse
  • The problem will go away
  • It won’t work anyway
  • You might be sued
  • Upper management won’t support you
  • You’re too tired and overloaded
  • You may not discipline or terminate right
  • It will be a lot of work
  • Hate conflict
  • It’s unpleasant

Guidelines Governing the Discipline Process

Effective recruiting and selection, training and development, job design, and performance appraisal systems remain the best way to avoid discipline issues. You discipline employees to reinforce standards or deter improper conduct. Four principles guide the disciplinary system:

  • Be consistent
  • Be fair
  • Consider the facts (avoiding hearsay or assumptions)
  • Document the facts, objectives, solutions, and actions of problems or infractions
  • Act on problems

Doctor Wadsworth outlines the following guidelines:

  • Set organizational goals
  • Establish rules for the organization
  • Communicate the rules to employees
  • Observe performance
  • Take appropriate discipline
  • Return to communicate the rules step if necessary)

Forms of Discipline

Progressive: follows certain steps to a conclusion: verbal warning, written warning, suspension, and then termination

Positive or Motivational Discipline: verbal reminder, written reminder, decision-making day, and termination.

Traits of positive discipline:

  • Focus in on future expectations
  • Remind employees of the standards and the need to meet them
  • Obtain the employee’s agreement
  • State the needed changes they must make
  • Emphasize that the responsibility lies with the employees
  • Develop a plan to comply
  • Express confidence they will succeed

Monday we will continue our review of human resources terminating an employee

Thursday, May 17, 2012

Human Resources 8: Enhancing Employee Productivity & Performance

Positive Employee RelationsThis continues our series on human resource issues that can improve your business. I wish to acknowledge Lori Wadsworth’s conceptual and intellectual contribution to these posts.

Our last post outlined a restrictive and possibly intrusive approach to employee relations. We discussed potential consequences of negative relations. Today we will focus on more positive and nurturing employee relations. We will explore improvements in productivity that may follow nourishing employee relations.

Employee Relations that Enhance the Relationships

Dr. Wadsworth describes three types of culture a business may choose to employ:

  • A culture of fear: the business motivates employees by fear of reprisal
  • Entitlement culture: employees assume they are entitled to work and benefits
  • Revitalization culture: where management and employees revitalize the effort

I liken these cultures to Dr. Lewin’s analysis of leadership styles:

  • Autocratic styles tend to develop a culture of fear
  • Participative or democratic styles tend to develop cultures of revitalization
  • Delegative or Laissez-Faire styles tend to develop cultures of entitlement

You may take the quiz linked above to discover your natural style. The best leadership incorporates a little of each of the three styles with an emphasis on participative.

Involve Your Employees in Collaborative Employee Relations

Smaller companies may involve employees more effectively than large ones. The owner or general manager knows a greater a percentage of workers, and interfaces with them more closely. Closer contact allows supervisors to recognize intrinsic (internal) or extrinsic (external) motivations—and reward employees appropriately .

I believe positive relations enhance performance better than restrictive or punitive relations. Positive relations grow when you involve employees in decision making processes. Lewin indicated that while you need to include all three traits, performance increases most when the participative style remains the dominant one.

National Performance Reviews’ Quality Management

The National Performance Review identify three barriers to productivity:

  • insufficient supervisor control
  • communication
  • planning

In addition, quality management improves when you:

  • Cut red tape
  • Put clients first
  • Empower employees to get results
  • Cut back to the basics

Small-businesses can act to resolve all of seven issues.

Saturday we will examine human resource functions involving discipline and termination