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Brian Tracy! 100 unchanging rules for business success! The law of business

100 unchanging rules for business success

Part 3 THE LAW OF BUSINESS

Everything that happens in life is rooted in specific laws.

In the business field, too,

the level of success at work

and career advancement is directly proportional to the agility

and ability to harmoniously apply business rules.

There is no denying

that the pace of change in business is fast and unbelievable.

In parallel with the tremendous growth

with billions of dollars in assets of successful companies,

business losses,

mergers,

acquisitions or changes in the business direction

of the companies occurred you are also more and more.

This incredibly rapid change has transformed modern business life

and impacted the lives of millions.

But this change also creates an opportunity

for you to grasp business rules

to contribute to the success

and development of the organization.

By applying the laws

and principles in this chapter,

your life and career will advance rapidly.

In just a short time,

you will make remarkable progress

that many others strive for throughout their careers.

I learned these business rules many years ago.

When I was ten years old,

I started my business selling soap.

This was followed by jobs selling newspapers,

mowing lawns,

decorating Christmas trees

and even working as an accountant in a grocery store.

I then went door-to-door to market office equipment

and then went on to sell hedge funds,

real estate,

cars,

advertising,

training and consulting services.

When I was 31 years old,

although I failed the high school graduation exam,

I was still approved to study a master’s program

in business administration

at a large university mainly

because of my many years of sales experience.

For three years in a row,

I had to work hard to pass undergraduate

and graduate courses in all areas of business

and business administration.

I finally “passed the course”

with a mind full of theoretical knowledge

and a desire to apply what I learned in real life.

After graduating,

an opportunity came

when I was accepted as a personal assistant

to the president of a corporation

with a fortune of $500 million.

By applying some of the laws of success mentioned in this chapter,

I helped that president set up,

manage,

run,

and raise tens of millions of dollars in sales of various products

and services.

In each stage of the company’s business,

I was guided by the chairman’s dedicated advice and experience

– the things that have made him one of the rich and famous.

Three years later,

I was hired as the CEO of a $265 million company

with a triple salary plus stock options.

In my new position,

I applied many of the lessons

I learned during my time with the first president.

As a result,

I was able to organize,

orient,

and redeploy the company’s entire staff within six months.

During my corporate reorganization,

I learned an essential principle of business:

any rapid change in business

will disrupt the current power structure,

and people will fight back fiercely to protect their privilege

and status even

when they know it will be harmful to the organization.

People often have a mentality of

not wanting to change nor like those who advise about change.

I fell victim to my own “bold change”

and soon I was unemployed again

and had to look for another job.

In my more than twenty-five years working,

selling,

and managing for twenty-two businesses large and small,

I have witnessed both success stories

and catastrophic failures.

I have also had the opportunity

to work with almost all types of entrepreneurs,

from those who are talented

and sensitive in the marketplace

to those who are inexperienced,

subjective and do not know how to grasp the times.

In addition,

I have also read a lot of books

and articles on many areas of business

and business administration,

but I still believe

that I have only reached the surface of the problem.

However, I have developed a few guidelines

that have helped me build a successful business for myself

and have also helped many clients rapidly improve their growth,

market share,

and profitability.

Any business organization can apply the rules outlined in this chapter.

The practicality,

simplicity and effectiveness of these rules

have also been proven by business practice

Regular application of these laws

will certainly make a difference,

leading to your long-term success.

To receive the title of “excellent salesman” you must identify the needs

and wants of the customer. —Zig Ziglar

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20. THE LAW OF PURPOSE

The purpose of every business organization

is to attract and retain customers.

Most people think

that the main purpose of business organizations

is to make as much profit as possible.

In terms of the personal purpose of the person

who has started or invested in a business,

this thinking is correct.

But if you consider an enterprise as a whole,

with all relevant factors such

as position in the market,

reputation with customers,

organizational structure,

operational apparatus,

quality of products

or services,

people, etc. ,

profit is just one of the important goals

that businesses need to aim for.

***************************************

1st Corollary:

Profit is a measure of how effective a company is in achieving its goals.

Much of a company’s time

and efforts are focused on attracting

and retaining customers.

The more customers you retain,

the higher your profits will be.

You can affirm that the customer is at the center

of all the activities of the company.

And profit is the measure of the level

and ability of each individual

and collective to contribute to the achievement of that goal.

***************************************

2nd Corollary:

Current profits are future costs.

A lot of people have a rather negative view of the role of profit

and the pursuit of profit.

They consider this to be quite ‘pragmatic’.

However, you need to see profits in many positive aspects.

It is the profits

that help the company cover salaries,

taxes,

investments in new products and processes,

research and development,

and improved customer service.

If the company’s business thrives,

employees will benefit a lot from jobs

with good salaries to promotion opportunities

for those with real ability.

Conversely, a business will lose money

when the profit earned is not enough to cover current costs

as well as to invest in the future.

The loss is a manifestation of a decrease in economic activities,

which easily lead to closure.

Losses are also a sign of an undirected future for employees.

And this will inevitably lead to a crisis in terms of personnel

when no one can accept to put their life in a place

with no clear future.

Approach each customer

with the idea of helping him or her solve a problem or achieve a goal,

not of selling a product or service. ― Les Brown

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21. THE LAW OF ORGANIZATION 

A business organization is a group of people working together

for a common purpose of attracting and retaining customers.

A business organization is often formed

when many individuals want to come together

to form a strong association

that can effectively carry out customer acquisition and retention.

They want to expand the scope of work

and share responsibilities

so that each person can only focus on the parts

that can maximize their strengths.

This will create new positions

and activities to help the company develop its ability

to serve customers.

The development process will continue continuously

as the staff increases to satisfy more and more customers.

“Right or wrong, the customer is always right.” – Marshall Field

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22. THE LAW OF CUSTOMER SATISFACTION

“The customer is always right!”

This is considered the “golden rule” in business.

We live in a market economy

where the customer is the center

and the driving force for all activities.

Never before have customers had

so much information and power.

Every company,

regardless of size,

must always find ways to satisfy customers more,

faster and more efficiently than competitors.

The most successful

and reputable companies are those

that consider customers as god

and build business structures based on this rule.

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1st Corollary:

All customer satisfaction comes from person-to-person communication.

You can hardly satisfy customers simply

by providing products or services.

In addition to product quality,

customers also expect to receive a considerate,

welcoming service attitude,

professional demeanor,

prestigious warranty service, etc.

More specifically, communication

is an important factor determine customer satisfaction.

According to a Harvard University study,

68% of customers have changed their suppliers,

because of the indifference of one

or more individuals in the company.

That’s why the most successful companies have policies

that clearly define the business principles

that employees must follow

when interacting with customers.

All employees,

including the top management,

must commit to strictly following these customer service principles.

Every year, during the summer,

the Walt Disney Corporation hires thousands of students

to work at Disney theme parks.

These students are selected in mid-May

and receive professional training for about four to six weeks.

They will then officially work

during the peak eight weeks of summer

– when kids are on vacation

and theme parks are busiest.

When asked why Walt Disney had to organize such rigorous

and lengthy training courses

– 4 to 6 weeks

– for students so that they would only work for eight weeks

before returning to school,

the Disney executives explain

that anyone who works at Walt Disney,

whether a full-time employee

or a part-time student,

needs serious training on the job

in order to be able to perform the job at a professional level.

Highly professional and with a natural demeanor.

The students when being trained were more aware

of their responsibilities

and the nature of their work.

They begin to pay more attention to the seemingly small things

that determine the sympathy of customers

such as cheerful eyes,

radiant facial expressions,

skillful answers,

enthusiasm for tour guides,

how to treat customers delicate situation management,

intimate conversation with children, …

The answers of these executives have revealed a lot to us

about the customer care philosophy of Walt Disney

– the entertainment corporation in the largest mind in the world.

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2nd Corollary:

The best companies always have the best employees.

The ability to attract and retain talent

is crucial to a company’s success.

If you are an executive

or manager of a company,

whether small or large,

you need to spend a lot of time and effort on recruiting.

Be careful in both interviewing

and checking recommenders.

A wrong position can have many unintended consequences.

Fortunately, interviewing

and recruiting skills are not too difficult

for you to learn and apply in practice.

*****************************

3rd corollary:

The important role of managers

is to make the most of human resources

to satisfy customers.

With any job,

you have two choices:

either do it yourself

or have someone else do it.

Similar to a management position,

you can divide the work among many people

or do the work yourself.

The last important thing about the Law of Customer Satisfaction is

that employees will treat customers

the way their superiors treat employees.

If you find yourself being served wholeheartedly or received politely,

you know that there the manager also treats employees well and vice versa.

Never be satisfied with the quality of customer service,

but always seek to improve to the best of your ability.

Determine where your company stands in the following four levels

of customer satisfaction.

Then build an action plan to reach the highest levels.

• Level One – Minimum level to survive.

It is to meet customer expectations.

• Level Two – Exceeding what customers expect.

Additional service features can set you apart from the competition.

• Level three – Customers become interested.

You can bring surprises,

interesting beyond the expectations of customers.

• Level four – Customers are really surprised.

This is often seen in successful and highly reputable organizations.

The quality of service exceeds customers’ expectations so much

that they not only become your regular customers

but also recommend them to friends and family.

This is also a simple form of PR that is extremely effective.

“Unless you have 100% customer satisfaction,

you must improve.” – Horst Schulz

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23. THE LAW OF CUSTOMERS

Customers always seek to satisfy their interests

by choosing to buy products

or services in the greatest quantity,

best quality and at the lowest possible price.

Any customer calculates the economic value of his

or her choices

by making the most of every shopping opportunity

while minimizing possible costs.

Customers always want their needs to be met in the fastest

and easiest way at the lowest possible price.

This is not a dilemma

but just a fact of business life.

Customers will choose to buy products

or services from whichever supplier can best meet their needs.

So, to retain customers and grow your business,

you need to satisfy every customer.

Sometimes this is not easy

because there are pleasant customers,

but there are also customers who are short-tempered,

temperamental,

and impatient.

These customers demand from you tactful behavior along

with certain business knowledge.

Many people confuse the two concepts

of practical obstacles and problems.

Practical obstacles are inevitable in life

and you have no choice

but to accept living together,

such as weather,

environment,

climate…

Things happen in specific situations

that you can handle.

When it happens,

do you check if this is an obstacle of reality or a problem?

If the problem is a practical impediment,

you should just determine what to do now,

not wonder what happened or who to blame

or regret you could have done differently.

***************************************

1st Corollary :

Customers are always demanding.

They elevate the companies

that serve them best to a higher position

and push the companies

that serve them badly to the brink.

Sam Walton once said:

“We all have the same master, the customer.

This owner can fire us at any time by deciding to look elsewhere.”

Really customers don’t care about your company’s problems.

They only care about the satisfaction

of their own needs rather than the success

or failure of the company.

I’ve seen many cases where a company lost money

or couldn’t cut prices to satisfy customers,

and customers quietly withdrew,

informed everyone of the situation,

and never came back.

***************************************

2nd Corollary: 

Customers are always right

to follow the path of least resistance

to get what they want.

From the customer’s point of view,

the purchase is for the purpose of satisfying their own needs,

proving their personal status,

and improving their private lives.

Customers are inherently sensitive enough

to know what is in their best interests.

When entering a business,

you need to remember

that the fate of your company will depend on the customer.

Customers’ decisions are always rational from their point of view.

From the moment your product is conceived,

your customers determine your success.

Only by serving the needs

and satisfying the wants of your customers

can your business survive and thrive.

***************************************

3rd Corollary:

The right business plan always starts

with the customer being the center of attention and discussion.

Some companies tend to create products

or services from their own point of view

without regard to the thoughts,

feelings,

and needs of their customers.

By not listening to customers,

those companies are losing touch with real life on their own.

To avoid this,

put yourself in the customer’s shoes

whenever you discuss any plans

or activities related to the products

and services the company intends to launch.

Ask yourself:

If I were a customer,

what would I expect from this new product?

What does this new product need to improve to be more usable?

What conditions does the upcoming service need to meet

to attract a demanding customer like me?

To get customers,

you don’t have to deal directly with potential customers.

You need to understand “customer” more holistically.

Any individual has certain “customers”.

Your first customer is the one

who determines your salary and potential for advancement.

By this definition,

unless you are the business owner yourself,

your first customer will be your immediate supervisor.

How satisfied your boss is

with you will determine your career path.

If you are a manager and have a team of subordinates,

these people will also become your customers.

How you treat

and care for your employees will determine your level

of customer satisfaction.

If you work in an accounting

or administrative department,

your customers are the ones

who have to use what you create,

such as financial statements,

computer statistics or other information.

No matter what job you do,

you also have a certain “customer” audience.

And your mission is to satisfy these important customers

to the highest degree.

This will determine how successful your business will be.

“Choose to deliver amazing service to your customers.

You’ll stand out because they don’t get it anywhere else.” – Kevin Stirtz

********************************

24. LAW OF QUALITY

Customers always demand the highest quality at the lowest cost.

This Law of Quality is true for all customers.

Customers are always looking for the opportunity to buy goods

or services of the highest quality at the lowest cost.

Companies or suppliers

that meet this customer standard

to the highest degree will succeed in the marketplace.

In 1989, Toyota’s Lexus

and Nissan’s Infiniti were introduced to the US market.

Both automakers advertise their cars as cars of the future,

with luxurious,

modern features similar to those of expensive European cars

but up to $10,000, $20,000

or less 30,000 dollars Both Toyota

and Nissan are also committed

to customers about the prestigious quality of the car

when it is introduced into the US market.

And they have been successful

with annual sales consistently reaching millions of dollars.

Furthermore,

from 1991 onwards,

Lexus and Infiniti were consistently voted by customers

as the best vehicles,

both in terms of ride quality

and after-sales service,

out of a total of 557 car models sold in the US.

***************************************

1st Corollary:

Quality is what customers specify and are willing to pay for.

Customers are the ones

who can give the most accurate definition of the quality

of the service

or product they are in need of.

Sometimes this definition is not so clear,

but most customers vote for quality according

to the way they pay to own it.

Interestingly, more than 80% of purchasing decisions

today are made or strongly influenced by women.

In his book Quality without Tears,

Philip Crosby wrote:

The quality of a product can be measured

as a percentage of the actual strength to the strength assigned

by the manufacturer.

For example,

you can measure the quality of a watch

by determining how long it accurately tells the time.

If the watch is running 100% of the time,

it will be rated 100% for quality.

Or the quality of a car is judged on how long it has been used

without needing to be repaired,

except for parts

that have a well-defined shelf life.

If the car runs

without problems 100% of the time,

it is rated as 100% quality.

Unfortunately, today about 25% of manufactured products

have to be reprocessed at the factory

because of quality defects.

In another book,

Quality is Free,

Philip Crosby concludes

that producing a high-quality,

defect-free product will actually save money

and increase profits both in the short and long term.

In the current period,

quality creates customers,

but in the long run,

a reputation for quality will retain the most important

and potential customers.

***************************************

2nd Corollary:

Quality is not just about the product

or service itself,

but also how it is delivered,

and warranted.

Customers not only wait for a product

or service they choose to buy

with durability in terms of use time

or high efficiency in usage,

but they are also interested in purchasing activities

such as service attitude,

warranty policy,

preferential regime,…

These are the factors

that differentiate

and compete among distributors

and are also an important factor to impress customers.

You can see an illustrative example

that belongs to the culinary field.

Nowadays,

customers often tend to go to a high-class restaurant

to enjoy delicious food;

be served enthusiastically and thoughtfully;

enjoy a pleasant relaxed atmosphere.

Customers are willing to spend a lot of money

to “own” these things

and they always rate these factors

as the “quality” of a restaurant.

Even an ordinary,

unremarkable product can be different if it is sold

and served with a cheerful and polite attitude;

contribute to increase the product value in the perception of customers.

Customer satisfaction is the core of quality.

***************************************

3rd Corollary:

The profits of companies are directly proportional

to the extent to which customers evaluate product quality.

The customer’s mind is always predisposed

to the classification of the quality ranking

of products of the same type.

Use market research to find out

where your company’s product quality stands compared to the competition.

The companies that rank in the first place are often the ones

with the highest profits and market share.

This is not difficult to explain

because the companies holding the top positions have met

the needs of customers for peace of mind

and certainty about product quality.

When having to choose

between a high-priced item

and a lower-priced item,

customers will often choose the high-priced product

because they know high price is always associated with high quality.

High quality is associated

with customer perception of safety.

And this awareness will reduce the feeling of uncertainty

or risk when making purchasing decisions.

That’s why people often say,

“If you can afford to buy quality products,

you will never think about buying inferior things.”

There is almost always a direct relationship

between how much you pay

and the quality of the product

or service you will receive.

Rarely do you get good quality for a low price,

and it’s extremely rare

that you get something for nothing.

You always get what you paid for.

In a competitive society,

you can rest assured that high costs guarantee high quality and low risk.

Thomas Ruskin once warned:

“The joy of buying a low-priced item cannot defeat the bitterness

of buying a poor-quality product.”

No matter where the quality of your product is in your customer’s mind,

you must always be committed to putting quality first.

This commitment not only encourages

and motivates employees,

but also increases profits.

The companies with the highest quality products are also the ones

that make the most profits.

They represent the greatest opportunities of the future.

“Just having satisfied customers isn’t good enough anymore.

If you really want a booming business,

you have to create raving fans.”– Ken Blanchard

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25. THE LAW OF OBSOLETE

What already exists will become obsolete.

The Law of Obsolete holds that everything

– from products,

services,

skills,

capabilities,

to advertising,

marketing strategies,

and business processes,

and more

– will all become obsolete over time.

Change is an inevitable

and inevitable part of life.

To survive and thrive,

your company must be up to speed

and mentally prepared to deal

with the constant changes that occur.

***************************************

1st Corollary :

Tomorrow will be different from today.

With today’s business realities,

those who hinder the trend of change

by being unable to adapt,

or adapting too slowly to the fierce competition that is happening,

will be the most likely to fail.

***************************************

2nd Corollary:

Innovation and continuous improvement are essential

for survival and development.

Innovation and improvement are not things you

only do when you have enough time and money.

If a company doesn’t offer a way of continuous innovation,

it is certain that its current business situation is shaky

and the future is uncertain.

They will be left behind by competitors,

even acquired or merged.

The most successful companies,

in most economic conditions,

are those that are constantly innovating

and introducing new products and services,

even when the business is not as good idea.

There seems to be a correlation

between the number of new ideas a company tries to implement

and its financial success.

***************************************

3rd Corollary:

The best way to predict the future is to create it.

Once, when Walt Disney was asked

if he was worried about others copying his ideas,

he did not hesitate to answer:

Nothing! Our speed of creating new ideas is

so fast that it’s hard

for anyone to catch up to steal.

This Disney quote can serve

as a business philosophy for companies:

the freedom to think of creative ideas

even if you don’t have enough time

or resources to implement all of them.

After you have an idea,

you are just beginning to consider all the possibilities

to choose the ideas that have the highest probability of success at the time

and put them into practice.

Be open to everyone’s ideas.

Creative ideas do not stop at executive management

or design departments

but can come from any individual.

Sometimes this personal idea can revolutionize the company

as well as the industry.

You probably already know the story

of a 3M Company researcher in Minnesota.

This researcher had difficulty attaching bookmarks

to his half-reading bible pages,

so he tried to experiment with many types of glue

to find an adhesive that would stick

but when Removing it still does not affect the surface

or lose its stickiness.

After a lot of research,

he created an adhesive

that has now been developed into the office Notes paper.

3M now dominates the world market for adhesive Notes,

and annual sales

for this product run into the hundreds of millions of dollars.

The researcher himself became a rich man

because he received a portion of the profits.

“When you serve the customer better,

they always return on your investment.” – Kara Parlin

****************************************

26. THE LAW OF INNOVATION

Every breakthrough in business stems from innovation,

from bringing to the existing market something better,

cheaper,

faster,

newer or more efficient.

In his book Innovation and Entrepreneurship,

Peter Drucker discusses the seven main factors

that create innovation in business.

He explains a few factors you can use

to transform the way you live both for yourself

and for your business,

including unexpected success and unexpected failure.

In any case you have to carefully analyze what happened to decide

if a potential breakthrough occurs.

Critical thinking “the tip of the iceberg”

is especially useful in examining successes,

failures,

or any unexpected events.

Whenever something out of the ordinary happens,

answer the following question:

Is this a single event or is it the tip of the iceberg?

Is this the start of a trend

or a sign of a dramatic market move?

Many major breakthroughs in business are achieved

through market acumen.

If the company recognizes a new trend

is about to happen in the market,

the company will find a way to launch a new product

that responds to that trend.

Or conversely,

if the company finds

that the situation does not appear

to be favorable for the product or service,

the company will immediately take action to minimize the damage

and develop other products

or services replace while there is still time.

Perhaps the most important trend of our time is the influence

of personal computers and the Internet.

When the first personal computer was developed,

IBM conducted a survey about the product’s future.

IBM consultants have come to the conclusion

that the entire world market for personal computers

is only 300 to 400 sets per year.

The company decided to focus on manufacturing central computers.

Today, more than 50 million personal computers are sold each year,

and the central computer has taken a step back

in the computer revolution.

IBM missed the tip of the iceberg!

To attract more money,

you must be attractive, in the sense

that people will want and prefer your products

or service over those of your competitors. — Jack Canfield

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27. THE LAW OF SUCCESSFUL FACTORS

The success or failure of every business organization is measured

and determined by a few key success factors.

The success factors

that are vital in business can be likened to the vital functions of the body,

such as heart rate,

breathing rate,

blood pressure,

electrocardiogram, etc.

These functions are the sign

and measure of an individual’s overall health and existence.

Lack of any function,

even for a moment,

can be dangerous.

Companies also have success factors

that measure their prosperity and survival.

Many factors are quite familiar and common,

but there are also some specific elements

that other organizations do not have.

The most important success factors in business are leadership,

product quality,

service,

sales,

marketing,

manufacturing,

distribution, accounting and finance.

Each of these factors must be implemented synchronously

in order for the company to reap the highest results.

Underperformance or failure

to perform any factor may threaten the existence of the company.

****************************

1st Corollary:

Each individual has his

or her own determining success factors,

and these factors determine

that individual’s future business.

In order to perform excellently at work,

each individual must have certain key skills

or core competencies.

Weakness or failure in any important skill

can undermine your entire competence

and ability to perform effectively.

To minimize this,

first recognize the critical success factors of your job,

assess your strengths and weaknesses,

and then develop a plan to become proficient in those areas

that can help you the most.

For example,

problem solving

and decision making are critical success factors

for people in business.

These are key competencies

that are at the heart of every business.

If your health is not good

or you suffer from emotional shocks,

you certainly cannot make smart and informed decisions.

In this case, if everyone depends on your decision,

then the problem will be risky.

A department,

a group or a collective can completely be affected

by the weakness of a decisive success factor

of an individual holding an important role.

In each separate field,

there are decisive success factors.

For example, in sales,

a lack of training can reduce an employee’s sales effectiveness,

causing him or her to sell only a fraction of what he

or she is capable of.

In many companies,

the sales force has little or no specialized training.

This explains why the revenue level is not

what the management expected.

Therefore, companies should focus their investments

on a specific critical success factor,

typically sales training,

to double or even triple employee sales.

On your personal side,

to identify your critical success factors,

you need to answer two questions.

The first question:

“Why am I getting that salary?”.

More specifically,

“What jobs and tasks do I get paid for?”.

Whatever your answer to this question is,

it’s something that you need

to spend a lot of time thinking about.

After you have answered the first question,

continue to the second question

What can only I do and if I do well,

the company will have obvious differences?“.

To answer this question, think about tasks

or responsibilities that only you can handle

and no one else can replace.

And if you’re dedicated to getting the job done,

you’ll make a big difference to

both the company and to yourself.

Any employee should find the most satisfactory

and accurate answers to these two questions.

This is a way to ensure that each person is focusing his

or her absolute efforts on the individual’s critical success factors.

****************************

2nd Corollary:

The critical success factor you are weakest in determines

how proficient you are at using all of your other skills.

Personal strengths and core competencies are the factors

that help you get to the current position.

It is also the foundation to establish your status

and determine your income.

On the contrary,

personal weaknesses will create barriers

that prevent you from reaching the top.

The critical success factor

that you are weakest at will determine the speed

and length of the distance you are going.

This factor is similar to a brake holding back your potential.

To move forward faster,

you must be absolutely honest

with yourself in identifying

and facing your weaknesses.

What are those weaknesses?

What skills,

when effectively developed and leveraged,

will have the most positive impact on your career?

Regardless of the answer,

it is also the basis

for you to start taking action for yourself.

This is also the place

that will help you get the most out of your self-improvement.

Every successful businessman in this world,

he started his career with a goal. — George Matthew Adams

***************************

28. THE LAW OF MARKET 

A market is a place where buyers

and sellers meet to set prices

and decide the distribution of money,

labor, raw materials,

and other factors of production.

The market is an imaginary place

that doesn’t really exist but is everywhere.

Markets represent millions of buying

and selling decisions at all levels of society

and in every type of public and private enterprise.

The sum of these buying

and selling decisions determines the price

of almost anything in a free-trade market.

***********************************

1st Corollary:

In a free market,

resources will be allocated in a perfectly efficient manner,

and prices will accurately reflect the current situation

of supply and demand.

This consequence is often applied

in the stock market sector,

demonstrating

that the entire stock price

at the close of each day will accurately reflect all information

about the present

and future prospects of the participating company

of stock exchange.

This corollary also states

that knowledge of the factors affecting prices

will spread very quickly

to those interested in economics.

********************************

2nd Corollary:

The free market is the most efficient way

to meet the needs of millions of people

at the lowest possible cost.

The free market

is perhaps one of the most important human advances.

Free markets are constantly forming

and operating spontaneously almost everywhere

without government intervention in economic activities

or economic decisions.

The freer the market,

the more vibrant the economy,

creating more products,

services and business opportunities for everyone.

For example,

nearly every activity in Hong Kong is unaffected

by government regulations,

except in the areas of traffic safety and security.

The highest income tax rate is 20%,

for both individuals and business entities.

Hong Kong was formerly a British colony,

with a small area and no natural resources.

However, Hong Kong has quickly risen

to become one of the world’s most vibrant economies

due to the absence of government intervention.

This small peninsula has produced countless millionaires and billionaires.

Thanks to the free market,

Hong Kong is so prosperous

that it has always faced the problem of a labor shortage.

***********************************

3rd Corollary:

The freer the market,

the greater the supply of goods and services,

and the more prosperity it brings to everyone.

Every year,

the Heritage Foundation publishes a Index of Economic Freedom,

which ranks the countries of the world

according to the “economic freedom” index.

Through years of research and comparison,

the organization has shown that health,

physical wealth,

general prosperity,

and economic opportunity

of an individual will be directly proportional to the degree

of market openness

and the freedom to do business

without government intervention or strict regulations.

Any government intervention in the free trade of the market

is often justified by the sounding rationale

that it is all in the public interest.

But in reality,

this is a matter of interests and politics.

Each government intervention usually ends up raising prices

or reducing supply,

leaving consumers at the expense of paying

more for a product or service

than if the market were unrestricted.

In other words,

market intervention rarely results in a discount

to anyone,

for any product

or service in the long run,

for which the purpose of intervention is often the opposite.

Business success depends on market penetration

and healthy competition.

The free market allows a person

with nothing but ideas,

energy and ambition

to build a big business.

A confident and professional image is sure

to help you achieve a lot of success in work

as well as in life. — George Matthew Adams

********************************

29. THE LAW OF SPECIALIZATION

What you expect

with all confidence will become your own wish-fulfilling prophecy.

When you intend to design a new product

or service to bring to market,

you must clearly define the audience, purpose,

and use of that product

or service.

Do not try to create a product

that can satisfy all customer needs

because that is not feasible and useless.

If customers do not understand the specific use

or application of the product,

they will switch to another product.

Consequence:

Business organizations will fail

when their products

and services are no longer specialized

and do not serve a sufficient number of customers

in a cost-effective manner.

Specialization is the starting point for successful marketing.

You must clearly define what product you are providing

and to which customers.

This is an extremely important factor determining the success

of your company.

Just a small change

or shift in your platform

or customer focus can have a huge impact on your revenue,

either up or down.

Take the car market as an example.

Every year hundreds of different car models are launched

into the market.

Each car model is designed for a specific customer,

in accordance with unique tastes,

experiences,

incomes,

interests and needs.

Companies such as Toyota, Ford,

and Daimler Chrysler have enjoyed remarkable success

because they design models

to satisfy the specific needs

of each of the major car market segments.

Other automakers struggled to compete

and lost money

because they failed to specialize products

for a particular customer market.

Similarly, we see the success of specialization

in Internet breakthroughs,

through which companies

with big ideas are privatized at sky-high stock prices.

Within a few months,

these companies can become large corporations,

even giants,

to the extent that they have specialized

to attract a sufficient number of customers.

“Freedom is the only thing money gives you,

because you don’t have to worry about it anymore.”- Johnny Carson

************************************

30. THE LAW OF DIFFERENT 

To be successful in a competitive market,

a product or service must have a competitive advantage

or a unique feature

in order to stand out in some respect

from its competitors’ products or services. 

In order to attract the attention

and acceptance of customers,

your product must have special advantages

or qualities that are superior to similar products

of the same type or substitute products

of the company competitors.

***************************

1st Corollary:

Identifying a Unique Selling Proposition (USP)

is the starting point for successful advertising and sales.

You need to summarize in just one

or two sentences the most salient points about your business,

what makes your product

or service unique

or different from the competition.

Ford asserts: “Quality Is Job One”.

BMW proudly calls its cars “The Ultimate Driving Machine”.

IBM advertising

and marketing content is based on “Quality

and Customer Service” criteria.

Nordstrom is famous and profitable

because of its reputation for “Service”

and Coca-Cola as “The Real Thing”…

Unique product advantages like these have made Communicate clearly

and effectively

what sets your company apart from the competition.

The best marketing,

advertising,

and sales strategies should be built

around a unique product advantage

that can deliver the most meaningful message

to potential customers.

So what is your company’s unique product advantage?

******************************

2nd Corollary:

To be successful in the marketplace,

a product or service must have a distinct advantage

over competing products and services.

Determining your competitive advantage

is perhaps the most important sales

and marketing decision every company must make.

Without determining the competitive advantage of the product

or service provided,

a company will quickly fail in the market

because it does not orient its business path.

The job of marketers and promoters is

to create a meaningful competitive advantage

to give potential customers a good reason to buy that product,

not another product.

Products here are not only consumer goods,

meeting life needs,

but can be “spiritual products”

such as newspapers,

magazines or “human products” such as a political candidate. .

Jack Welch, CEO of General Electric (GE),

has said that he wants GE to be number one

or number two in the field in which he competes.

If it can’t reach number one

or two within a reasonable time,

GE will pull out of the market

and focus its resources on another area

where it has the potential to dominate.

If you don’t have a competitive edge,

don’t compete,” he said.

Internet business companies such as Amazon,

America Online, Yahoo,

eBay, Priceline, … succeed

because they know how to make the most of their websites

with outstanding designs and features.

Distinctive features

or unique product advantages can change over time

to keep up with the rapidly changing market.

For example,

for many years,

local restaurants still compete

with each other in terms of food quality,

service style,

affordable price.

and convenient location.

However, Tom Monahagn’s Pizza Domino appeared

but did not compete on the usual factors.

To attract customers in a market already occupied by Pizza Hut,

Pizza Domino has focused on its competitive

advantage of “Home Delivery”.

Today Pizza Domino has become a successful

and thriving brand on a global scale.

Those who know the simple rules of deciding to make a lot of money,

he will have a lot of money. ― George Clason

***************************************

31. THE LAW OF MARKET SEGMENTS

A company must target specific customer groups

or market segments

if it wants to achieve significant revenue.

Today, the most successful companies are those

that have the ability to see specific market segments

in order to design products

and services to suit tastes and uncover unmet needs customers

while enhancing competitor awareness.

*************************************

1st Corollary:

If the company is wrong in market segmentation,

all efforts of the company in investing

in product design

and market penetration will be futile.

Many companies focus all their product promotion efforts

on a well-defined market segment.

But the end result the company gets is

that the product has attracted the attention

and buying interest of another market segment.

For example,

minivans were originally designed

for people doing construction work

and transporting materials in small quantities.

After that, they were extremely loved by young people

and chosen as a means of sports to go

for a walk in the coast and mountains.

For years, Germany’s Lowenbrau beer

– a high-priced import

– has struggled to compete

with American brewers such as Budweiser and Miller,

but has been unable to break into the US market,

which is already established dominated by large breweries.

Finally, Lowenbrau changed its marketing strategy

and started targeting high earners with the ad:

“When you run out of champagne,

order Lowenbrau”.

By placing champagne on an equal footing with low-priced beers,

Lowenbrau has built a new perception in the minds of customers

that imported beer is a beer that can only be enjoyed by consumers.

by the sophisticated and well-to-do.

This advertising program changed the entire imported beer market in the US.

********************************

2nd Corollary:

The ideal market segment should have customers

for whom a competitive advantage in products

is the most important factor

in meeting their most pressing needs.

In other words,

if you sell food,

sell it to housewives who prepare family meals.

If you are in the real estate business,

find people who are in need of housing.

If you sell time management systems,

sell to managers because for them,

time is a very important and necessary factor…

The most effective market segment

is one that includes people

who have a need for your product,

and those needs are proven and well-defined.

Jeffrey J. Fox in his book How to become a rainmaker said:

“Focus where there are many big fish to catch”

with the implication that the success of the sale

is reflected in the volume

of fish in a fishing session.

The overall purpose of market research is to identify

and segment the market

so that the company can access it

with the highest level of efficiency

and lowest possible cost.

The more accurate your target audience is,

the more precise your market focus efforts will be

and the more likely it will be to succeed.

You should never regret anything in life.

If it’s good,

it’s wonderful.

If it’s bad,

it’s experience. — Aysa Angel

********************************************

32. THE LAW OF CONCENTRATION

Success comes from focusing your efforts on which

customer segments can most

and quickly benefit from the unique features of the product

or service you offer in your area of expertise.

Going back to the Lexus and Infiniti example.

These two automakers compete in a specific market segment,

and they focus all of their marketing efforts on customers

who can afford a luxury car for

between $35,000 and $35,000. 55,000 dollars.

The common characteristics of these customers are high income,

living in urban areas,

high education level,

working with mind.

They are also people who admire high-end cars like BMW

and Mercedes-Benz

but can’t afford to buy them.

Lexus and Infiniti know

that the more they lower their prices,

the more customers they can win in this large

and potential market segment.

While BMW and Mercedes compete for customers,

Lexus and Infiniti decided to lower prices

while positioning their products on a par

with premium cars in the US.

And their strategy has yielded remarkably successful results.

*************************************************

1st Corollary: 

The most effective strategy to gain the most profit is

to dominate a particular market segment

with the best product for the customers in that segment.

The Cross Pen Company is an example of a strategy

to dominate a particular market segment.

The Cross brand has entered the minds of the American business class

as a top-notch and high-quality business pen.

The company has a wide range of pens,

from low-priced black models to affordable silver models

and even luxury pens made of 18K gold.

Although other well-known pen brands

such as Parker and Mont Blanc tried to enter the market,

Cross retained a dominant position in this segment

of the business market.

This dominance has helped Cross Firm rise

to become one of the most successful

and profitable companies in the world.

********************************************

2nd Corollary:

A focus on highly profitable market segments

with profitable products

and services will yield the highest revenue

and return on investment.

To reap the most profits,

companies must succeed in providing the highest-grade products,

of the best quality,

and at the highest cost to market segments

with high profit potential.

They focus on dominating their markets

and are constantly looking for ways to innovate

and improve their products and services.

American car companies are the best example of this effect.

Chrysler was extremely profitable with its Imperial cars,

Ford with its Lincoln Continentals,

and General Motors with its Cadillacs.

The way to gain a good reputation is to endeavor

to be what you desire to appear. — Aysa Angel

**************************************

33. THE LAW OF EXCELLENCE

You will be rewarded by the market in proportion

to your business efforts

as well as the outstanding quality of the products

and services you provide.

Customers always want to spend the least money

but get the most.

They expect the product

or service they buy to be of high quality

to satisfy more of their needs

and have fewer problems after purchase.

Companies that already have customer trust in terms

of quality can charge higher prices

and earn more revenue.

A commitment to excellence in product

or service quality is the safest

and most predictable strategy for business success.

Consequences:

The market rewards average rewards for average results

and below average rewards for below average results.

The main market is a fair

and reasonable custodian

and accurately reflects customer judgments

that are reflected in purchasing behavior.

Companies that provide the goods

and services the market wants,

at prices the market is willing to accept,

will always be well rewarded.

Conversely, companies

that do not meet the requirements

for goods and prices will be rejected

by the market by not accepting those products.

The key to achieving outstanding rewards in your work

is completing the most important tasks you’ve been entrusted with.

The key to your business success is building a reputation

for excellence in everything you do.

It is better to focus on one big goal

by divide your goal into dozens of small pieces. — George Matthew Adams

*******************************

FIVE LAW FOR BUSINESS SUCCESS

There are many different paths to success,

but collectively,

they all meet in the following five big “rules”:

First, the product or service must be ideally suited

to the current market and to the needs, wants,

and cost brackets that people are willing to pay.

Products and services that do not fit

or are not adapted to current needs need

to be quickly adjusted

and changed,

or risk disappearing from the market.

Next, the company must focus all its mind

and resources on marketing,

promoting and distributing products

to customers in order to find

highest source of profits.

This is the most important factor determining the success

or failure of business in any economy.

Third, the company must have effective systems of bookkeeping,

accounting data,

inventory management and cost control.

Operational cost control

as well as inefficient internal management

are the second leading cause of business failure.

Fourth, the company must build a clear business orientation

while enhancing the smooth coordination

between management levels and staff.

All activities of the company need to be operated like a greased machine,

in which everyone understands their position

and job duties and maximizes their capacity in those positions.

Finally, the company should continuously learn,

develop,

innovate and improve.

The Japanese call this process Kaizen,

and W. Edwards Deming asserts that continuous training

and skill upskilling at all levels of the company is the key

to achieving an important competitive advantage

and long-term success in business.

By providing a product

or service that meets everyone’s needs

and at an acceptable price,

you can gain a foothold in a free market economy.

And when you strictly apply these five rules,

you can be confident

that you will succeed in your business career

and reap the rewards commensurate

with your efforts and the satisfaction of your values.

Live the life you’ve always wanted.

I’m a great believer in luck,

and I find the harder I work the more I have of it. — Thomas Jefferson 

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