Mr. Yip Hon Mun, Vice President Corporate Business of Advanced Info Service Plc. or AIS, disclosed “AIS by Smart SMEs aims at continually developing solutions to support the SMEs entrepreneurs considered core infrastructure of the Thai economy. To reiterate such concept, AIS lately becomes the first to develop AIS BlackBerry service for SMEs entrepreneurs to be equipped with the tool handling administrative works via a BlackBerry handset every time and place. Convenient and cost saving, customers are not required to either invest in BlackBerry Enterprise Server installation or employ the IT help desk to maintain the system. The businesses of entrepreneurs are always connected to the world of business.”
The service AIS BlackBerry for SMEs enhances competitiveness of entrepreneurs as follows;
- Easy connection and access to Push Email, Address Book, Calendar, Browser, BBM Chat and various Applications simply via BlackBerry.
- Security and speed of Emails and information assured by the BlackBerry Service standard.
- Receive corporate Emails and Free mails such as Hotmail and Gmail up to 10 accounts.
- Licensed to use Microsoft Exchange 2007, PCs and web browsers version as well as BlackBerry Enterprise Server.
- Low investment because no BlackBerry Enterprise Server installation required. (AIS will maintain the system.)
- Value rate, only 1,800 Baht per month for unlimited use and 1,400 Baht a month for 50 megabyte bandwidth
- Special package for AIS BlackBerry SMEs subscription, get the BlackBerry Curve 8520 for 18 installation of 2,199 Baht a month, coming with unlimited access.
The interested entrepreneurs may contact AIS Smart SMEs Call Center 1149 or visit www.smartsolutions.ais.co.th.
Friday, November 20, 2009
Thursday, November 12, 2009
UMI TO INCREASE MOSAIC EXPORT FOCUS NEXT YEAR
Union Mosaic Industry next year will increase its mosaic-tile export volume to cash in on its Asian competitors having slowed down or shut production after facing high labour costs.
The company current exports 15 per cent of its production of ceramic tiles and mosaic, but the proportion will be boosted next year for mosaic.
UMI chairman Paweena Laowiwatwong said yesterday that the production slowdown or shutdown of some mosaic manufacturers in Asia had presented the company with an opportunity to win more overseas orders.
She said mosaic production was more labour intensive than ceramic-tile production, whereas the market was smaller. This had led to the closure of some tile and mosaic-makers.
Many countries in the Middle East and other parts of Asia still offer demand for mosaic tiling , however.
UMI's mosaic sales account for 6-7 per cent of its revenue, she said. Although demand is not high, the company still produces mosaic because it offers a better margin than ceramic tiles.
She said the export outlook for its range next year should be brighter than this year's because of the global market recovery. UMI expects to enjoy export growth of 10 to 20 per cent. This year's exports have dropped by 10 per cent due to the economic crisis.
UMI yesterday reported a third-quarter net profit of Bt61 million in the same perioed last year. Its net profit in the first nine months was Bt95.54 million, compared with a loss of Bt34.46 million over the same period last year.
The company expects to turn a profit this year because of its focus on cost reduction and high-margin product development, Paweena said. It posted a loss of Bt115.23 million last year.
She said the company targeted sales growth next year at 5 to 10 per cent, from expected revenue of Bt2.1 billion this year.
"If we can maintain our gross profit margin at 20 per cent and enjoy stable oil and natural-gas prices, we believe the company will achieve sales growth," she added.
The company's board is considering paying a diveidend to stakeholders for the first time in four years, she said.
Paweena said the Thai Khemkhaeng project was a positive factor driving demand for tiling next year.
UMI plans to run at 85-per-cent capacity in response the expected rise in domestic demand. It currently operates at 75 per cent.
The company current exports 15 per cent of its production of ceramic tiles and mosaic, but the proportion will be boosted next year for mosaic.
UMI chairman Paweena Laowiwatwong said yesterday that the production slowdown or shutdown of some mosaic manufacturers in Asia had presented the company with an opportunity to win more overseas orders.
She said mosaic production was more labour intensive than ceramic-tile production, whereas the market was smaller. This had led to the closure of some tile and mosaic-makers.
Many countries in the Middle East and other parts of Asia still offer demand for mosaic tiling , however.
UMI's mosaic sales account for 6-7 per cent of its revenue, she said. Although demand is not high, the company still produces mosaic because it offers a better margin than ceramic tiles.
She said the export outlook for its range next year should be brighter than this year's because of the global market recovery. UMI expects to enjoy export growth of 10 to 20 per cent. This year's exports have dropped by 10 per cent due to the economic crisis.
UMI yesterday reported a third-quarter net profit of Bt61 million in the same perioed last year. Its net profit in the first nine months was Bt95.54 million, compared with a loss of Bt34.46 million over the same period last year.
The company expects to turn a profit this year because of its focus on cost reduction and high-margin product development, Paweena said. It posted a loss of Bt115.23 million last year.
She said the company targeted sales growth next year at 5 to 10 per cent, from expected revenue of Bt2.1 billion this year.
"If we can maintain our gross profit margin at 20 per cent and enjoy stable oil and natural-gas prices, we believe the company will achieve sales growth," she added.
The company's board is considering paying a diveidend to stakeholders for the first time in four years, she said.
Paweena said the Thai Khemkhaeng project was a positive factor driving demand for tiling next year.
UMI plans to run at 85-per-cent capacity in response the expected rise in domestic demand. It currently operates at 75 per cent.
Wednesday, November 4, 2009
OBTAINING SPECIFIC ANSWERS FROM STRATEGY
In our third and final segment of the discussion regarding inputs from organisational strategy to supply chain management in general and Sales &Operations Planning (S&OP) in particular,we will discuss some specific examples that should be addressed in the context of a business algorithm.
As we have been suggesting, the business strategy needs to be very clear and communicate with great specificity "how" it is intended to be executed.There is a place for brief, high-level summaries of visions and strategies but there must be substance behind those.
In one case we experienced recently,a "Strategy on a Page" document gave a clear indication of the organisation's overall vision and the top-line financial objective of EBIT (earnings before interest and tax) growth rate but not much more.
In the business algorithm, presented in the diagram, one can find the sorts of drivers that can more directly affect one than EBIT itself. These then lead us to the specific points that must be addressed and specified in an effective strategy.(This diagram, by the way, comes from some very nice work done by one of our clients in Australia.)
Functions and personnel need more detail about things such as the following:
What do we expect from core business and/or existing SKUs?
What do we expect from new product development?
What do we expect from business efficiencies and cost savings?
Which segments or channels or the market do we expect to grow and therefore intend to invest in to achieve this goal?
What factors should be considered as we generate gap closing initiatives?
Volume increases are expected to come from where?
What does being low-cost producer mean for manufacturing and across the supply chain?
From where are we expecting cost reductions fromG&A?
What are the terms for capital available and the restrictions?
What are the specific growth targets by brand, business unit, channel and account?
Exactly what are the performance targets across the business?
How can we achieve alignment between resources, demand and opportunities?
Are policies aligned with the strategy?How will we make customers knowledgeable regarding our strategy or policies?
Is the strategy interpreted into the shorter term business plan accurately?
What are the expectations regarding performance measures for aspects such as brand health and penetration, NPD contribution, budget control, resource productivity or success rates of NPIs.
Of course, these are just the start of the sorts of specifics that are required to manage in this new, tighter, integrated way.
As with the S&OP process itself, the documentation of the requirements can and should evolve in due course over the first months following implementation.
Weekly Link is co-ordinated by Barry Elliott and Chris Catto-Smith CMC of the Institute of Management Consultants Thailand. It is intended to be an interactive forum for industry professionals; we welcome all input,questions, feedback and news at:bjelliott@abf1consulting.com cattoc@cmcthailand.org
As we have been suggesting, the business strategy needs to be very clear and communicate with great specificity "how" it is intended to be executed.There is a place for brief, high-level summaries of visions and strategies but there must be substance behind those.
In one case we experienced recently,a "Strategy on a Page" document gave a clear indication of the organisation's overall vision and the top-line financial objective of EBIT (earnings before interest and tax) growth rate but not much more.
In the business algorithm, presented in the diagram, one can find the sorts of drivers that can more directly affect one than EBIT itself. These then lead us to the specific points that must be addressed and specified in an effective strategy.(This diagram, by the way, comes from some very nice work done by one of our clients in Australia.)
Functions and personnel need more detail about things such as the following:
What do we expect from core business and/or existing SKUs?
What do we expect from new product development?
What do we expect from business efficiencies and cost savings?
Which segments or channels or the market do we expect to grow and therefore intend to invest in to achieve this goal?
What factors should be considered as we generate gap closing initiatives?
Volume increases are expected to come from where?
What does being low-cost producer mean for manufacturing and across the supply chain?
From where are we expecting cost reductions fromG&A?
What are the terms for capital available and the restrictions?
What are the specific growth targets by brand, business unit, channel and account?
Exactly what are the performance targets across the business?
How can we achieve alignment between resources, demand and opportunities?
Are policies aligned with the strategy?How will we make customers knowledgeable regarding our strategy or policies?
Is the strategy interpreted into the shorter term business plan accurately?
What are the expectations regarding performance measures for aspects such as brand health and penetration, NPD contribution, budget control, resource productivity or success rates of NPIs.
Of course, these are just the start of the sorts of specifics that are required to manage in this new, tighter, integrated way.
As with the S&OP process itself, the documentation of the requirements can and should evolve in due course over the first months following implementation.
Weekly Link is co-ordinated by Barry Elliott and Chris Catto-Smith CMC of the Institute of Management Consultants Thailand. It is intended to be an interactive forum for industry professionals; we welcome all input,questions, feedback and news at:bjelliott@abf1consulting.com cattoc@cmcthailand.org
THE IMPORTANCE OF TAX RISK MANAGEMENT
Although we may be turning the corner on the economic downturn, the public still has lower purchasing power and businesses are facing a lower net profit,or even a net loss. Consequently, many companies are attempting to achieve the same goals: a reduction in expenses and an increase in liquidity. A possible strategy for them to consider in pursuit of these goals may be to go about obtaining a tax refund from the Revenue Department.
Tax is an unavoidable expense that affects a company's cash flow and is generally applicable in all business transactions, including those that occur during periods of economic downturn.Examples of such transactions include expenses in respect of compensation paid to suppliers for order cancellation,sales promotions, employees' severance pay, as well as transactions related to mergers, acquisitions or even liquidation.In addition, accounting entries such as the write-off of accounts receivable or obsolete inventory, the setting up of provisions or accrued expenses and depreciation of a factory or machinery may have adverse tax implications if not handled correctly.
No one wants to pay tax needlessly but many companies applying for tax refunds find that, after the resulting tax audit, they have to pay more tax than the original claim.
As a result some companies forgo the right to claim refunds to avoid an audit,because of uncertainty as to whether or not their tax submission was prepared fully in compliance with the Revenue Code. We note, however, that one of the department's strategies includes the investigation of companies that do not claim tax refunds, based on the logic that they perhaps have something to hide.
Tax risk is a significant business risk and should be managed properly regardless of whether a company chooses to pursue a tax refund or not. Tax risk assessment is an important part of good risk management. It can be likened to having an annual health check-up so that disease may be detected and treated at an early stage. The following checklist can help a company judge the extent of its tax risk:
Complicated transactions, or transactions with a large number of suppliers and/or customers;
Significant transactions with related companies;
Tax risk assessment has never been performed before;
Frequent changes in staff responsible for tax function;
Risk taker (when unsure how to pay tax, chooses not to pay or pays the least possible);
Tax tasks are assigned to staff with insufficient tax or legal knowledge;
Poor or unsystematic maintenance of documentation supporting the tax filing;
No tax manual or the tax manual is not maintained up-to-date, or there is a good manual but its procedures are not properly implemented;
Late submission of tax, problems with audited financial statements or tax computation;
Previous record of additional tax payments or the department's tax assessments.
Some suggestions are provided below to be included among the procedures for handling tax risk management:
Step 1) Tax risk assessment
Regularly review tax compliance status to identify potential risk.
Step 2) Solving problems
Take timely corrective action to mitigate identified tax risks and minimise related tax liabilities.
Step 3) Dealing with tax audit
Understand the tax audit approach and the Revenue officers' point of view;
Analyze the tax issues raised by the Revenue officers;
Consider a strategy for dealing with the Revenue officers in order to speed up the tax refund process;
Make available sufficient and reliable documentation to support the defence.
Step 4) Implementing "Best Practice"
Raise levels of awareness of tax procedures and compliance requirements;
Put in place proper internal controls and referral systems in organisation;
Make sure that every tax position taken is supported by a credible basis in law.
Our experience suggests that the efficiency and ability of the tax department's investigations have improved significantly in recent years.Procedures are more thoughtful and information technology systems have been introduced to assist in retrieving tax documentation online from all over the country, including obtaining information from other government departments (e.g. customs duty and excise tax). Consequently, it is easier for today's Revenue officers to detect or identify any non-compliance by taxpayers.
It is therefore time for companies to pay greater attention to the concept of tax risk management so that whenever a tax refund is claimed or the companies are visited by a Revenue officer, they will have confidence that no unexpected tax liability will be discovered.
PricewaterhouseCoopers'11th annual Tax and Legal conference,"Redefining Success: Managing Tax through Turbulent Times - Maximize Shareholder Value through Effective Tax Planning 2010"takes place in Bangkok on 12 November 2009. To register, please visit www.pwc.com/th
Tax is an unavoidable expense that affects a company's cash flow and is generally applicable in all business transactions, including those that occur during periods of economic downturn.Examples of such transactions include expenses in respect of compensation paid to suppliers for order cancellation,sales promotions, employees' severance pay, as well as transactions related to mergers, acquisitions or even liquidation.In addition, accounting entries such as the write-off of accounts receivable or obsolete inventory, the setting up of provisions or accrued expenses and depreciation of a factory or machinery may have adverse tax implications if not handled correctly.
No one wants to pay tax needlessly but many companies applying for tax refunds find that, after the resulting tax audit, they have to pay more tax than the original claim.
As a result some companies forgo the right to claim refunds to avoid an audit,because of uncertainty as to whether or not their tax submission was prepared fully in compliance with the Revenue Code. We note, however, that one of the department's strategies includes the investigation of companies that do not claim tax refunds, based on the logic that they perhaps have something to hide.
Tax risk is a significant business risk and should be managed properly regardless of whether a company chooses to pursue a tax refund or not. Tax risk assessment is an important part of good risk management. It can be likened to having an annual health check-up so that disease may be detected and treated at an early stage. The following checklist can help a company judge the extent of its tax risk:
Complicated transactions, or transactions with a large number of suppliers and/or customers;
Significant transactions with related companies;
Tax risk assessment has never been performed before;
Frequent changes in staff responsible for tax function;
Risk taker (when unsure how to pay tax, chooses not to pay or pays the least possible);
Tax tasks are assigned to staff with insufficient tax or legal knowledge;
Poor or unsystematic maintenance of documentation supporting the tax filing;
No tax manual or the tax manual is not maintained up-to-date, or there is a good manual but its procedures are not properly implemented;
Late submission of tax, problems with audited financial statements or tax computation;
Previous record of additional tax payments or the department's tax assessments.
Some suggestions are provided below to be included among the procedures for handling tax risk management:
Step 1) Tax risk assessment
Regularly review tax compliance status to identify potential risk.
Step 2) Solving problems
Take timely corrective action to mitigate identified tax risks and minimise related tax liabilities.
Step 3) Dealing with tax audit
Understand the tax audit approach and the Revenue officers' point of view;
Analyze the tax issues raised by the Revenue officers;
Consider a strategy for dealing with the Revenue officers in order to speed up the tax refund process;
Make available sufficient and reliable documentation to support the defence.
Step 4) Implementing "Best Practice"
Raise levels of awareness of tax procedures and compliance requirements;
Put in place proper internal controls and referral systems in organisation;
Make sure that every tax position taken is supported by a credible basis in law.
Our experience suggests that the efficiency and ability of the tax department's investigations have improved significantly in recent years.Procedures are more thoughtful and information technology systems have been introduced to assist in retrieving tax documentation online from all over the country, including obtaining information from other government departments (e.g. customs duty and excise tax). Consequently, it is easier for today's Revenue officers to detect or identify any non-compliance by taxpayers.
It is therefore time for companies to pay greater attention to the concept of tax risk management so that whenever a tax refund is claimed or the companies are visited by a Revenue officer, they will have confidence that no unexpected tax liability will be discovered.
PricewaterhouseCoopers'11th annual Tax and Legal conference,"Redefining Success: Managing Tax through Turbulent Times - Maximize Shareholder Value through Effective Tax Planning 2010"takes place in Bangkok on 12 November 2009. To register, please visit www.pwc.com/th
Wednesday, October 28, 2009
WHAT IFRS WILL MEAN FOR YOUR BUSINESS
Last year's financial crisis, which brought down some of the biggest names in world banking, and whose aftershocks have been felt in economies the world over, has a new scapegoat. Politicians and bankers, trying to deflect some of the blame, pointed the finger at accounting standards, the rules by which accountants must abide, claiming the huge losses incurred by the banks were only exacerbated by the accounting requirement to write down investments to the current market price, which had plummeted, in some cases to almost nothing.
One year on and many are claiming that the "green shoots of recovery" are being seen. However, the shockwaves are still being felt. Moves are underway to make accounting simpler. There are calls for less reliance on the teams of specialist accountants that are needed to interpret the finer details of specific standards. Many, including some of the world's top CFOs, now think that financial statements have become too complex - voluminous, full of tables and data but with little in the way of clear explanation.
Many readers also probably think that accounting used to be much simpler. Why have audit fees increased? Why value assets at market price when you have no intention to sell? Why can't we create reserves for the bad times in order to even out the profits over the long term, thus creating longer term stability? Accounting in Thailand is changing too and over the next three years or so, there will be similar debate locally.
International Financial Reporting Standards, referred to as IFRS, make up the accounting and financial reporting framework that now is used in more than 100 countries around the world. Countries soon to adopt the system include India, Indonesia, Malaysia, and Korea with Thailand not too far behind. There is even a roadmap for convergence between US GAAP and IFRS, something that would have been unthinkable not that long ago due to fundamental differences in the accounting methodology between Europe and the US.
IFRS are not perfect - far from it. There are flaws. As Sir David Tweedie, the IASB (International Accounting Standards Board - the body that sets the standards) chairman, is fond of remarking, he has yet to fly on an aircraft that is recorded on the balance sheet of an airline company. But it is accepted by most that what we have now is a big improvement on what we had before.
It is a misconception to think that IFRS only affects listed companies. It has created the opportunity for countries that have not yet developed a financial reporting framework to quickly put in place a globally accepted set of standards that local companies can follow. Cambodia is a good example of a country where this has happened. In addition, the recently issued IFRS for Small- and Medium-Sized Entities offers a scaled-down, simpler and more cost-effective version that can only be of benefit to other developing countries who want to raise their accounting game.
The benefits of a global set of high-quality accounting standards are considerable. Cross-border comparability increases access to additional capital markets around the world. Additional disclosure requirements improve the transparency of a company's activities. The performance of a company in Hong Kong now can be compared meaningfully with one in Germany. No longer is it necessary to decode local accounting practice when trying to understand company performance. This is a major advantage, not just for investors, but also for potential suppliers and customers.
Despite criticisms that accounting has become over-complicated, IFRS are here to stay. The IASB is now in a phase of both revising existing standards and issuing new ones.
We are moving towards a requirement for management to issue a commentary on the company performance and intentions, further enhancing the understanding, quality and usability of the financial statements.
Although accounting has undergone significant changes in the last decade and there are more changes ahead, it now appears more likely than ever that the world eventually will be using a common set of standards.
Jonathan Fryer is a UK Chartered Accountant working for Mazars Thailand.
One year on and many are claiming that the "green shoots of recovery" are being seen. However, the shockwaves are still being felt. Moves are underway to make accounting simpler. There are calls for less reliance on the teams of specialist accountants that are needed to interpret the finer details of specific standards. Many, including some of the world's top CFOs, now think that financial statements have become too complex - voluminous, full of tables and data but with little in the way of clear explanation.
Many readers also probably think that accounting used to be much simpler. Why have audit fees increased? Why value assets at market price when you have no intention to sell? Why can't we create reserves for the bad times in order to even out the profits over the long term, thus creating longer term stability? Accounting in Thailand is changing too and over the next three years or so, there will be similar debate locally.
International Financial Reporting Standards, referred to as IFRS, make up the accounting and financial reporting framework that now is used in more than 100 countries around the world. Countries soon to adopt the system include India, Indonesia, Malaysia, and Korea with Thailand not too far behind. There is even a roadmap for convergence between US GAAP and IFRS, something that would have been unthinkable not that long ago due to fundamental differences in the accounting methodology between Europe and the US.
IFRS are not perfect - far from it. There are flaws. As Sir David Tweedie, the IASB (International Accounting Standards Board - the body that sets the standards) chairman, is fond of remarking, he has yet to fly on an aircraft that is recorded on the balance sheet of an airline company. But it is accepted by most that what we have now is a big improvement on what we had before.
It is a misconception to think that IFRS only affects listed companies. It has created the opportunity for countries that have not yet developed a financial reporting framework to quickly put in place a globally accepted set of standards that local companies can follow. Cambodia is a good example of a country where this has happened. In addition, the recently issued IFRS for Small- and Medium-Sized Entities offers a scaled-down, simpler and more cost-effective version that can only be of benefit to other developing countries who want to raise their accounting game.
The benefits of a global set of high-quality accounting standards are considerable. Cross-border comparability increases access to additional capital markets around the world. Additional disclosure requirements improve the transparency of a company's activities. The performance of a company in Hong Kong now can be compared meaningfully with one in Germany. No longer is it necessary to decode local accounting practice when trying to understand company performance. This is a major advantage, not just for investors, but also for potential suppliers and customers.
Despite criticisms that accounting has become over-complicated, IFRS are here to stay. The IASB is now in a phase of both revising existing standards and issuing new ones.
We are moving towards a requirement for management to issue a commentary on the company performance and intentions, further enhancing the understanding, quality and usability of the financial statements.
Although accounting has undergone significant changes in the last decade and there are more changes ahead, it now appears more likely than ever that the world eventually will be using a common set of standards.
Jonathan Fryer is a UK Chartered Accountant working for Mazars Thailand.
ONLINE MARKETING IN CONSUMER-GENERATED TERRITORY
Akey digimarketing theme is consumer participation.Consumers are no longer passive targets. They are active, engaged participants: enabled by digital media.All forms of consumer participation via digital media are on the rise. Nowhere is this consumer creativity more evident than on social networks: those sites such as Hi5, Facebook, LinkedIn, and others.
Consumers' time:The latest Universal McCann global internet survey, estimates that almost two-thirds of "active internet users"(people using the internet at least every other day) spend time managing their social profiles. What's more, almost three-quarters of them report visiting friend's profiles. Social networks are consuming an increasing part of consumers' digital time: time that consumers are choosing not to spend on brand- or marketing-oriented websites.
Tread carefully:Good marketers understand that keeping in touch with consumers means going where consumers are. As consumers use social networks, that's where marketers must go. But be cautious: social networks are consumer territory. They are built by consumers.
Unlike TV soap operas - which were developed to sell soap and consumer goods - social networks were not created to sell. They have been designed to help consumers with similar interests to help each other. When marketers venture into social networks they must do so with humility, candour and a genuine desire to help - three traits that are unfortunately absent in many traditional marketers.
Everyone is feeling their way in marketing effectively on social network sites. The more enlightened companies are finding a useful first step is to get management and staff involved in the networks, both as private individuals and as brand representatives.
Other companies, with a more Luddite perspective, ban staff from accessing social networks at all. The internet security company ScanSafe reports that 76% of companies may be blocking access to social networks. Although you need to manage what your employees are doing on company time, effective social network marketing demands your people understand and experience those networks. That's the only way to acquire the authenticity that social network marketing demands.
Monitor the flow:Take some time to look at just what is being said about your company, your product and your brands, and how it is being said. Different social networks have different tones of voice and different norms of behaviour.Marketers need to fit in.
There are many tools - which are mostly free - that send you an e-mail when key words or phrases are used.The easiest is Google Alerts. Everyone should be running Google Alerts for personal names (put your name in quotes to get exact first and last name), and relevant company and brand names.For well-known companies and brands,it's advisable to add some context words to avoid being overwhelmed with results,or use paid services that provide filtering for you.
Intervene gently and politely:Many marketers wonder what they should do when they find their brand being discussed. Listen and then think. Are these inaccurate comments, based on product misuse, or misunderstanding?Inaccuracies can be politely and authoritatively corrected using sound evidence - in the same tone you might use to a family member. Offer something positive in return. If the customer is using the product for a purpose other than that intended, and therefore finds it performs poorly, can we recommend the right product for them, even if it's made by a competitor? Can we offer a partial refund?
Are the comments negative but correct? If so, it's better to confess and apologise. Remember the traditional customer service findings: empathy and apology, with the promise of systemic change to ensure the error is not repeated work wonders, converting complainants into brand advocates. We have already seen that the new digital media model pushes power to the consumer. A happy brand advocate can be an extremely powerful ally.
Of course, sometimes, comments are positive and marketers can bask in reflected glory and offer thanks and hints of improvements to come.
Abuse:Abusive, unfounded, and unsupported comments are often the hardest to deal with.
Some marketers ignore them and hope that other consumers will read them for what they are: an abusive tone that is not persuasive. Ideally, other consumers will reply. If they don't, my feeling is that marketers should intervene to politely reject the abuse and show it's undeserved. Remember, an internet search will turn up everything. When search turns up abuse, it would be good to also see its refutation.
Dr Ian Fenwick is an adviser and Senior Head of Administrative Programmes, at Sasin Graduate Institute of Business Administration.He recently co-authored (with Kent Wertime)DigiMarketing: The Essential Guide to New Marketing & Digital Media, Wiley,2008.This is now available in Thai and Mandarin also. You can reach Ian at Ian@DigiMarketingNow.com; website www.DigiMarketingNow.com; and follow him on Twitter www.twitter.com/DrIanFenwick
Consumers' time:The latest Universal McCann global internet survey, estimates that almost two-thirds of "active internet users"(people using the internet at least every other day) spend time managing their social profiles. What's more, almost three-quarters of them report visiting friend's profiles. Social networks are consuming an increasing part of consumers' digital time: time that consumers are choosing not to spend on brand- or marketing-oriented websites.
Tread carefully:Good marketers understand that keeping in touch with consumers means going where consumers are. As consumers use social networks, that's where marketers must go. But be cautious: social networks are consumer territory. They are built by consumers.
Unlike TV soap operas - which were developed to sell soap and consumer goods - social networks were not created to sell. They have been designed to help consumers with similar interests to help each other. When marketers venture into social networks they must do so with humility, candour and a genuine desire to help - three traits that are unfortunately absent in many traditional marketers.
Everyone is feeling their way in marketing effectively on social network sites. The more enlightened companies are finding a useful first step is to get management and staff involved in the networks, both as private individuals and as brand representatives.
Other companies, with a more Luddite perspective, ban staff from accessing social networks at all. The internet security company ScanSafe reports that 76% of companies may be blocking access to social networks. Although you need to manage what your employees are doing on company time, effective social network marketing demands your people understand and experience those networks. That's the only way to acquire the authenticity that social network marketing demands.
Monitor the flow:Take some time to look at just what is being said about your company, your product and your brands, and how it is being said. Different social networks have different tones of voice and different norms of behaviour.Marketers need to fit in.
There are many tools - which are mostly free - that send you an e-mail when key words or phrases are used.The easiest is Google Alerts. Everyone should be running Google Alerts for personal names (put your name in quotes to get exact first and last name), and relevant company and brand names.For well-known companies and brands,it's advisable to add some context words to avoid being overwhelmed with results,or use paid services that provide filtering for you.
Intervene gently and politely:Many marketers wonder what they should do when they find their brand being discussed. Listen and then think. Are these inaccurate comments, based on product misuse, or misunderstanding?Inaccuracies can be politely and authoritatively corrected using sound evidence - in the same tone you might use to a family member. Offer something positive in return. If the customer is using the product for a purpose other than that intended, and therefore finds it performs poorly, can we recommend the right product for them, even if it's made by a competitor? Can we offer a partial refund?
Are the comments negative but correct? If so, it's better to confess and apologise. Remember the traditional customer service findings: empathy and apology, with the promise of systemic change to ensure the error is not repeated work wonders, converting complainants into brand advocates. We have already seen that the new digital media model pushes power to the consumer. A happy brand advocate can be an extremely powerful ally.
Of course, sometimes, comments are positive and marketers can bask in reflected glory and offer thanks and hints of improvements to come.
Abuse:Abusive, unfounded, and unsupported comments are often the hardest to deal with.
Some marketers ignore them and hope that other consumers will read them for what they are: an abusive tone that is not persuasive. Ideally, other consumers will reply. If they don't, my feeling is that marketers should intervene to politely reject the abuse and show it's undeserved. Remember, an internet search will turn up everything. When search turns up abuse, it would be good to also see its refutation.
Dr Ian Fenwick is an adviser and Senior Head of Administrative Programmes, at Sasin Graduate Institute of Business Administration.He recently co-authored (with Kent Wertime)DigiMarketing: The Essential Guide to New Marketing & Digital Media, Wiley,2008.This is now available in Thai and Mandarin also. You can reach Ian at Ian@DigiMarketingNow.com; website www.DigiMarketingNow.com; and follow him on Twitter www.twitter.com/DrIanFenwick
Kingdon's best crafts
Great stuff handmade in rural corners all over the country are on sale at the October 10 Thai Craft Fair in the Jasmine City Building on Sukhumvit Soi 23.
Shop for baskets, hand-woven silk, ceramics, hilltribe stichwork and recycled items and view the exhibition "Khon Lek Lek", featuring the amazing baskets of Montri Yimyean and his fellow weavers in Rayong, who've found a less harmful altfernative to factories and fishing.
The fair is running from 10 to 5. Call (02)676 0636-8, extension 231,or visit www.ThaiCraft. org.
Shop for baskets, hand-woven silk, ceramics, hilltribe stichwork and recycled items and view the exhibition "Khon Lek Lek", featuring the amazing baskets of Montri Yimyean and his fellow weavers in Rayong, who've found a less harmful altfernative to factories and fishing.
The fair is running from 10 to 5. Call (02)676 0636-8, extension 231,or visit www.ThaiCraft. org.
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