PARETOLAW_CASE2_CABASAG_July28,2010

What is Pareto law? As I google it, it gave me a lot of answers as well as examples, but the the one I'll share is the one that made me understand it in a lighter note.

The Pareto law is a law or principle developed by Vilfredo Pareto. This law or principle only states that in 100%, only 20& of that is vital or inmportant and the other 80% is the trivial or unimportant. Another meaning is that roughly 80% of the effects come from 20% of the causes. An example of the first meaning in a real life situation is when a typical student would have a date after his class. On that day also, he has a lot of papers to do and seminars to attend to. And in this case, I may say that the 20% is when he had a date with his girlfriend because he felt joy, affection and satisfaction from his opposite sex; while the remaining 80% is the papers to submit and seminars to attend to. This is from a personal point-of-view. This may vary since people are not the same.

A good example of the second meaning is the campaign period of the elections. Example of which is when Mar Roxas spent money for advertisements. These advertisements are considered to be the 20% because this would determine his position to be the next vice-president of the Philippines. The 80% is the responses of the people or the result of the election where he didn't win the position he wanted.

Another classic example is when doing a group report for a certain subject. The 20% is when you do meetings, plan for the flow of the report, discuss the main topics and identify the person in-charge for the topic. The 80% is the output for the report as a whole; if the students who are listening learned from your group and if the professor was satisfied with your report.

An example in a business setting is the shareholders of the company. The stockholders are the 20% or the vital part because they are the ones who invest money to your company, so as to implement the plans and for the comapny to prosper. The 80% is the result wherein they have gold bars in their pockets and the success of the company reaching its goal.

In a company, the 20% are the people because they are the ones who will man the job or execute the activities for the company; while 80% is the results in which it'll show the results, progress and growth of the comapny.

Pareto law seemed to be really new to be, but when I tried to understand it and read it again and again, it made me realize that this 80/20 rule can be really useful in business as well as in my daily life. This rule also helped me to focus more on the 20% or the vital part because the remaining 80% will come from it. Even though it's 20%, a lot of effects depend on it.

marketingmyopia_case1_CABASAG_july15,2010

Businessmen and businesswomen build companies for them to gain profit, to earn cash, in short. But a few of them stays in the business world for a long period of time. The reason why companies don't stay long in the business world would be, as the article Marketing Myopia entails, that companies are too product-oriented rather than customer-oriented. Business would be successful if they would be concern with the needs and wants of their customers, because eventually they will be the ones who will turn your products into cash.

The article also bring about that companies must always think of new innovations for their product that their customers would eventually fell in love with. Continuous improvement is also needed so as your company will not be left behind with the new technology that the generation is experiencing. The best example for this is the cellular phones. Companies like Nokia continue to develop new models to satisfy the needs and wants of their customers. They have the Eseries and Nseries, for the business people and the typical model of phones that caters to the desires of its users.

There are also factors that affect the growth of the company, examples are excessive production of goods and higher focus of research and development. Both of these factors boil down to product-oriented. If companies are customer-oriented, they will produce goods that their customers' needs and likes. And if the company also focus to the marketing department which has the idea of satisfying the customers' needs, then growth on companies will eventually be seen.

In short, Marketing Myopia only tell us that we should be customer-oriented so as to fulfil or cater what our consumers wants and needs.