Tuesday, August 14, 2018

Full-Bodied Coffee+Free Parking, Issue #1

Thrill and joy of drinking coffee and a chance to park for free.
Free parking. Accommodates four cars at any given time. More on a Sunday when the adjoining shops are closed.  Located right at the corner of Paseo de Roxas and Arnaiz Sts in Makati city. Full-bodied coffee brewed from beans harvested in Mindanao. Open from 7 a.m. to 9 p.m. on weekdays and from 9 a.m. to 7 p.m. on weekends.
 
All photos by the author using smart phone

Saturday, May 9, 2015

A Glimpse of a [Desirable] Future
Delivered at the STI Rosario Commencement 2015 on May 8, 2015

Let me share with you a glimpse of a (desirable future), specifically a framework by which you may set standards for success. You successfully completed one block in a long journey. As you march today, you have officially entered a new block in this journey. The path that you choose and the basic principles that you use to navigate this new journey will define your success. 

Success and Your Future

At this point in your life, the future remains a puzzle, and success a distant future. That is typical. The road to success and a better future are usually long and bumpy. Most often, the end of the road, sometimes even the side of the road, is hardly or not at all visible.

It helps if we can paint a picture of success. Visualize it. Understand it by using a metaphor or symbol.

Imagine a tree. It has roots. It has a trunk and branches. It has a crown. I believe that life imitates a tree. Likewise, success resembles the philosophical concept of a tree. In success, there is a foundation similar to the roots of a tree. In success, there is a journey similar to the branches in a tree. In success, there is a pinnacle similar to the crown of a tree.

Roots of Success

Roots form the foundation of the tree. They keep the tree cemented in the soil, strong enough to survive a storm and a draught.

Success has its own roots. Family, friends, and even places where we grew up can be among them.

In boxing, Mayweather, Pacquiao, Donaire, the Chavez brothers and many more are second generation boxers. They are more successful probably because of the second generation advantage. In basketball, there are many successful second generation players in the NBA and PBA.

In the profession, many successful doctors, lawyers and engineers are second or third generation hold overs. In politics, we have dynasties all over the country. In business, second generation practitioners have found bigger success combining the diligence and pioneering efforts of the past with technology of the present.

Family as a root of success works in a reverse mode as well. My brother-in-law, a German engineer who found success in Australia and grew up in a well-knit family, has retired and spends most of his time doing two things. First, he travels to places around the world which he was not able to visit in his younger years. Second, he painstakingly puts together a family tree that connects his generation to the past and the younger ones.

It is amazing what he has done. He was able to trace his connections in Germany and ours in the Philippines – my mother side and father side -- four generations back and two generations forward. That is a total of seven generations. If each generation is equivalent to 50 years, that is a total of 350 years more or less. Despite his distance, he sends birthday greetings to as many relatives as he possibly can.

Marc Pingris, a PBA player known for his physical strength and ability to defend against much taller players, was separated from his father early in his life. He became a successful basketball player. Probably even a superstar.  At some point, he needed to re-connect with his roots. Probably, he did this to give him the emotional strength to face the bigger challenges later in his life.

A friend who became a successful research and advertising executive volunteered to manage my family’s real estate project in Catbalagon, West Samar after his retirement.

He was separated from his father when he was still a baby. An aunt took care of him. His father got married to another girl and started a family. The father is old and graying and lives in Catbalogan.  With his retirement money, he can live comfortably and well. Yet he opted to go to one of the poorest provinces in the Philippines and postpone his retirement to reconnect with his father.

Education is another root of success -- the years we spent completing our formal education from kindergarten to college. The schools we attended, our classmates (best friends and our mortal enemies), our teachers (those who made us enjoy learning and those who used fear to teach us), and school officials who taught us discipline and compliance.

I have friends whose strongest network of business partners remain their school mates either in high school or in college. While teaching at the Graduate School of Business in DLSU, I was amused to learn that many of my colleagues were either classmates or school mates. The bond among graduates in the Philippine Military Academy is so strong. An officer, when appointed as chief of staff, by tradition and in practice, is expected to appoint his batch mates to key position.

The network of classmates and batch mates is pretty much a reality among the country’s Presidents from PNoy down to Marcos. Kapuso, kapamilya, kaibigan, kaklase.

On your graduation, and as you step out of this school, you and this school become partners to your success -- in perpetuity. I am not exaggerating when I say “in perpetuity”.  This partnership does not end when you get your diploma.  It continues –

o   When you look for a job;
o   When you are considered for a promotion;
o   When you transfer to another company for greener pastures;
o   When you apply for graduate studies;
o   When you apply for overseas employment and even when you travel for leisure;

It continues when you fall in love and you share your school life with your special someone;
o   When you raise a family and you teach the value of Christian education to your children and grandchildren;
o   When you are recognized for your achievements in industry or in government;
o   When you migrate and you submit your educational profile;
o   When you want to teach, full time or part time, and your employer requires full academic credentials;
o   It continues even when you are old and grey and you want to reconnect to your early years;
o   When you retire and reunions start to preoccupy your life; and
o   When you are gone and people recognize your achievements posthumously, and when your possessions and records become museum pieces.  

Your partnership and your linkage with this school will definitely endure and persist. It is part of tradition. It is part of a prescribed management system.  At the same time, it has practical benefits.  However, there are going to be occasions when this partnership would manifest itself for a specific purpose.

Some years back, the Ateneo community, with the Alumni as the lead group, embarked on a program to make Ateneo the UAAP basketball champion. That campaign produced stars like Villanueva, Alvarez, and Gonzalez who are now playing in the PBA. The Ateneo community accomplished this goal after two years, but with much support from the Alumni – training, physical conditioning, financing and many more. It was a vision that involved the active participation of the Alumni. 

There will be occasions when this partnership would become more colorful and challenging such as when external factors or policy decisions threaten a University’s heritage and tradition.  I can recall parallel events that happened in other schools. 

o   For example, Bosconians successfully blocked the sale of the Makati campus and the transfer of this campus to another location outside of Metro Manila; 
o   Maryknoll alumni protested when administrators decided to change the name of the school to Mirriam; The name has since been changed but the alumni involvement to this issue remains.
o   Graduates of Mapua Institute of Technology protested the change from Mapua to Malayan Institute of Technology.  
o   University of the Philippines alumni blocked the conversion of the Diliman campus into a commercial center. A new president with a business orientation changed all that.
o   In one national election, the U.P. alumni successfully mounted a text campaign against the re-election of a Senator who, as Chairman of the Finance Committee, cut the budget of the University by a significant percentage. He is now an ex-senator.

In these examples, graduates reconnected with their alma mater for a specific purpose – to protect their heritage and keep the community intact.  They found a common cause to be together and to establish or re-establish their school ties.

On the other hand, schools purposely call on their alumni for support, to attend ceremonies and programs, to participate in major activities and to tap their services for specific engagements and projects.  Schools keep an active file of their graduates for various reasons.

I am also an alumnus of Ateneo de Manila University and University of the Philippines.  Ateneo regularly sends me mailers that inform me about the projects and programs of the University.  I get to learn about the latest professorial chairs, scholarships, sports programs and cultural events. Last month, I received a full-color Easter Card with this message: As you celebrate Easter, may the glory of God’s miracle renew your hopes, your faith and your joy.

These experiences, even if these are my own, tell us that the moment you enter a school, you covenant yourself to a lifelong partnership with that school. Conversely, the school knowingly and willingly binds herself to the same contract for a lasting relationship with the student. 

Journey to Success

Like the branches, your journey to your success will unfold in many mysterious and challenging ways. Some entrepreneurs attempted 100 times to succeed in one. Some lawyers needed to take the Bar two to four times. In these challenges, you need your family. Keep them. You need your friends. Keep them. Make more of them. You need God. Be with Him always.

Success has no shortcuts. Benjamin Franklin said that “the best way to build a dream is by attending to the little things that comprise it. Its foundation is in the little details; its beauty in the fine points.”

Abraham Lincoln once said that “The best thing about the future is that it comes only one day at a time.”

Crown of Success

What type of success should we pursue? How do we measure success? What will tell us that indeed we are successful?

Sooner or later, maybe sooner, you will have to wrestle with these questions and find the answers that go straight into your heart. There are some guidelines or practical tips that we can use. Let me share with you some that I have used when the stakes are high and when the chips are down:

First, and perhaps most importantly, success must be measured in elements other than money. Ralph Waldo emerson, in his poem, captures some of these elements. Emerson wrote --

“To laugh often and much,
to win respect of intelligent people and the affection of children;
to earn the appreciation of honest critics and endure the betrayal of false friends;
to appreciate beauty;
to find the best in others;
to leave the world a bit better whether by a healthy child, a garden patch, or a
redeemed social condition;
to know even one life has breathed easier because you have lived.
This is to have succeeded.”
Second, your success must evolve from acts that make other people successful. A success that is a stand-alone and does not breed success is shaky.  This is not just a tip. It is a must.

Bill Clinton, twice elected as President of the United States and among the most sought after adviser and speaker, once said that “We cannot build our own future without helping others to build theirs.” 

I teach such principle in the class room. I always remind my students in Strategic Management the importance of the external community in building success. I support these with corporate cases and with frameworks written by Harvard and Wharton professors.

The Performance Governance System of the Institute for Solidarity in Asia (ISA), a framework crafted by Dr. Jesus Estanislao to help local governments and national government agencies develop strategies, emphasizes the importance of  managing an organization that thrives by value-adding to the bigger community.

The Balanced Scorecard (BSC), a management framework developed by Kaplan and Norton of Harvard Graduate School of Business, promotes a strategy that is driven by goals other than money such as people, process and customers. Profit becomes an outcome of this strategy.

Collins and Poras, authors of Built to Last, concluded that excellent companies demonstrate sustainability. These are companies that survive the tests of time and remain viable beyond 100 years. Coca Cola, General Electric, Merck, Johnson & Johnson, and Disneyland are some examples. In the Philippines, we have quite a few. San Miguel, Ayala, BPI, and Aboitiz.

If you run through the list of companies with a market value way beyond their assets, these are the companies that subscribe to the Bill Clinton principle. Does it apply to small companies and individuals? Yes. In fact, it is a principle that evolved from the experiences of small companies which grew to become successful companies.

The latest marketing framework, as written by Bob Gilbreath, suggests that a good marketing strategy is one that is premised on improving people’s lives. By doing so, according to Gilbreath and based on studies done, you succeed.

 A successful farmer, the envy of other farmers, decided to share his seeds to his neighboring farms. Friends of this farmer were alarmed. Why are you helping your competitors, asked the farmer’s friends? The good farmer answered back: If I don’t share my good seeds to my neighbors, their bad seeds will infect my farm.

Success is not achieved by making others suffer. Your success will eventually be measured and judged in terms of how you made others equally or even more successful.


Proverbs Chapter 11, Verse 25 says: He who refreshes others will himself be refreshed” 

For comments, email to Nick Fontanilla @ abfontanilla@yahoo.com

Monday, August 26, 2013

creating a difference...through PMI

This management team of Metrics Asia is creating a difference. Sacrificing for country, industry and the profession to provide critical information about conditions in the Philippine economy month after month. Taking over the task willingly at the time needed to keep the Purchasing Managers' Index going. Modern day heroes.


So does this PMI operations team. Facing all challenges. Determined to make a difference. To serve. To do something meaningful. For country and the supply chain profession.


And the associations that made it possible -- Foundation of the Society of Fellows in Supply Management (SOFSM) and the Philippine Institute for Supply Management (PISM).

Together, proudly and happily, they commit to keep the PMI going every month. Together, they envision to expand to cover ASEAN and Asia-Pacific. Cheers to a great team.

Watch out for PMI Philippines August 2013. For more information, email to info@imetricsasia.com.

Tuesday, August 20, 2013

anticipatory marketing

There are two components of Anticipatory Marketing (AM). Consumer choice and consumer experience.

Consumer choice is a consumer's mental image of a product or service. The mental image is what the consumer prefers or desires. Christensen, Olson and Ross refer to it as a consumer's self-referrent image of a product. A choice that emerges from a combination of knowledge, experience and suggestive information. It is most often what a consumer buys. Although not all the time. There are multiple gaps between a consumer's choice and a consumer's decision to buy.

For example, a time gap exists. Benjamin Libet's theory on free will recognizes a time lag between conscious purchase and free will. This time lag affects a consumer's ability to respond in real time. Which explains in part, or which appears to lead to, impulse buying. Shariff and Peterson of University of Toronto explain this perfectly well in their article on anticipatory consciousness. There are other gaps. Resource gap. Convenience gap. Influence gap. Which are all self explanatory. AM fully recognizes the consumer's self referent image and the realities that allow or prevent this image to materialize.

This position is significant in the formulation of an AM agenda. AM understands that consumer choice, to a manageable extent, is predictable. AM contends that by understanding and measuring the conscious choice, both in the context of what is desired and realities of consumption, a marketer may be able to anticipate the actions of a consumer. How?

Consumer experience is the sum total of a consumer's conscious choice and conditions that dominate this choice. This is measured by actual transactions which may be available in documented transactions or defined in statistical surveys. In its absence, actual transaction may be substituted by primary data drawn from a well-designed statistical survey. AM requires an investigation of consumer choice and free will. Results strengthens findings derivable from actual transactions.

The charts below shows an execution framework for AM presented in a hierarchical sequence (chart 1).
 
Chart 1: AM Execution Framework 
    
Is AM anticipation marketing. No, it is not. Although AM looks at anticipation marketing as an important influencer in consumer choice. It may have a greater influence in a consumer's free will. Anticipation marketing, as defined by Baron, Hickey and Merrel,  is identifying, exploring and understanding an interesting consumer response phenomena -- collective irrationality. It is a strategy that drives interest in a product in the absence of above the line and below the line advertising.

How is AM different from predictive analytics? Predictive analytics makes use of transactional data to generate a predictive model. Sometimes exclusively. AM borrows from various disciplines, as shown in the chart below, and formulates a consumer model that combines consumer choice, free will and consumer experience.

               Chart 2: Components of AM      

For comments, email Nick Fontanilla to abfontanilla@yahoo.com or nick.fontanilla@gmail.com. For inquiries on Anticipation Marketing and how a company may be able to make use of this tool, email to info@imetricsasia.com.

Bibliography
1. Glenn L. Christensen, Jerry C. Olson, William T. Ross, "Why Consumption Vision? Understating Consumer Value in Anticipatory Consumption Imaging," Advances in Consumer Research Volume 31, © 2004 (www.acrwebsite.org/volumes/v31/acr_vol31_65.pdf) 
2. Azim F. Shariff and Jordan B. Peterson, "Anticipatory consciousness, Libet’s veto and
a close-enough theory of free will," University of Toronto (http://sharifflab.com/wp-content/uploads/2012/03/Shariff-Peterson-2005.pdf)
3. Ellen Baron, Kristin Hickey and Paul Merrell, "Anticipation Marketing: Understanding buzz for Generation Now, Esomar, 2008.

Thursday, August 15, 2013

PMI on its 61st Run

Amazing Feat: PMI on its 61st run

The Foundation for the Society of Fellows (SOFSM), advocacy arm of the Philippine Institute for Supply Management (PISM), has completed 61 months of PMI Philippines in July 2013. Truly, an amazing feat. SOFSM and PISM have accomplished two important goals. First, providing government and industry with a leading economic indicator now used by Bangko Sentral ng Pilipinas (BSP). Second, enhancing the image of the supply chain profession making supply chain an important component of economic growth and development. This feat was made possible with the support of BSP, The Asia-Pacific Centre for Research (Acre), Inc. and AB Fontanilla Consulting Services.    



A Project of SOFSM

The Purchasing Managers Index Philippines is a project of SOFSM in cooperation with PISM. PMI Philippines was designed to complement and to be consistent with PMI surveys in other countries. This index started in North America in 1931. There are now 32 PMI countries including the Philippines.

                                                
Marketing Arm

PMI Philippines is  exclusively distributed by I-Metrics Asia-Pacific Corporation (IMetrics Asia). Metrics Asia is an e-commerce and consulting company.  Metrics Asia's product portfolio includes PMI Philippines, PMI ASEAN, PMI Asia, E-Commerce Index Philippines (ECIP), Product Demand Index Manufacturing (PDIM), and E-Commerce Maturity Model (ECMM). Metrics Asia also provides training in ecommerce analytics, predictive analytics, and performance management. 



I-Metrics Asia recently participate in the National Retail Conference and Stores Asia Expo 2013. It has lined up other events to bring PMI Philippines to more areas and practitioners.



PMI Philippines is used by users and subscribers primarily for management reference and decision making.

For more information on PMI, contact info@imetricsasia.com.

ANTICIPATORY MARKETING

Learn. Apply. Lead.
A Free Webinar on an Emerging Principle in Marketing.
August 20, 2013
3:00 to 4:00 p.m.

Sunday, April 1, 2012

PMI on its 44th reading

In April 2007, we conducted the pilot test for the Purchasing Manager's Index (PMI) Philippines. Fifteen months after (July 2008), PMI Philippines made its foundational run featuring PMI Manufacturing. Since its initial run, the PMI has been conducted every month without fail.

Now on its 44th reading, PMI Philippines has become the earliest leading economic indicator available to planners and decision makers. It provides policy decision makers with a directional tool based on actual conditions in industry. Two other PMI surveys have been activated -- PMI Retail/wholesales which is now on its 35th run, and PMI Services which is now on its 17th run.

Together, these three economic surveys provide policy decision makers in government and industry with a significant foresight about the economy month on month. PMI users were asked to evaluate how this economic indicator is able to help the company. Significantly, 58% of PMI subscribers use PMI as a management reference while 15% use this indicator for decision making.

PMI Manufacturing, as a leading economic indicator, has been able to sufficiently plot the direction of the economy -- whether it expanded or contracted -- each current month as compared to the previous month. This reading is reported to readers during the first week of the succeeding month -- three months ahead of the GDP.

Where PMI is extensively used (such as North America and Europe), PMI is used as a leading economic indicator to predict way in advance the GDP. It confirms if the economy expanded, a confirmation that gives decision makers a persuasive guideline for action. It is most useful, however, when it gives readers a bold reading of when the economy is contracting. The PMI was able to foresee the economic contraction in the last quarter of 2008.

For more information on PMI Philippines or if you have questions, send an email to nick_fontanilla@ascendph.com.

Saturday, March 24, 2012

the dragon comes to life

The Dragon sleeps....


Then it comes to life.


Triton Dragon Boat Team puts its act together.


For the MBC dragon boat competition on March 25, 2012.


A chance to compete. Make friends.
A time to connect with nature.
Using raw power.
And a discipline to work together.



Wednesday, March 9, 2011

I Touched Manila Bay

I touched the untouchable -- Manila Bay. As a rower in the Dragon Boat Regatta 2011 held on Sunday, 6 March 2011. Organized by the Philippine Dragon Boat Federation, over 100 rowers and thousands of viewers were there.

This was a chance for many to see how beautiful Manila Bay is and how beautiful it can be if restored to its old glory. I row to touch it. To see it. And, in my own small way, send a message. That is, make it touchable again.




Tuesday, March 8, 2011

Rerum Novarum

I was invited by the UST College of Commerce and Business Administration as guest lecturer for the 17th Pope Leo XIII lecture series on March 1, 2011. The topic was about "Illuminating the Business World Through the Social Teachings of the Church" with Pope Leo XIII's encyclical Rerum Novarum.


It was a challenging lecture. I used Dr. Paul Dumol's thesis on Civil Society to contextualize Pope Leo XIII's encyclical on capital and labor. To present applications in the present environment, I used several contemporary business cases including those of Ortigas & Company and Cebu Pacific. I have to thank Paul for allowing me to use his framework on civil society as needed, my favorite Department Chair Paula Bautista-Tiongco for recommending me, and Dean Ma. Socorro P. Calara for selecting me as guest lecturer for the 17th Pope Leo XIII lecture series. Big thanks to Joanie Ipili who helped me conceptualize and write the lecture, and to Tyrone Cimfranca, an ex SVD, for giving me a hint on where to get materials on Pope Leo XIII's encyclicals.

Rather than publish what I lectured, allow me to present selected photos.


Saturday, January 15, 2011

Baywalk Walk

Took a quiet walk along the Baywalk in Manila early morning Sunday, 16 January. Some interesting finds.

The Green Biker. Best bike design. Best costume.

More green bikes.
Shades at P40 per piece, any brand. With a matching cleaner and plastic case. I bought one which I liked. The lady entrepreneur promised she will be around Valentine's day. No fail. I promised her I will promote her products.
Spa for the dog and the dog owner.

I think I will take that walk again. I missed buying bike shirts for P170 per shirt.

Monday, January 10, 2011

Elitist PBA: A Distribution Blunder

I decided to watch PBA games again. Good timing. As of this writing, the elimination games have started to determine the two teams that will collide in the finals.

Frankly, I was disappointed.

Not with the teams that are playing in the elimination round. The four teams are B-Meg, Talk and Text, San Miguel and Ginebra San Miguel. These four teams have a good mix of players. All teams have excellent playing systems. The games I recently watched attest to that.

Not with the venue. Playing venue is the Araneta Coliseum, probably the best venue for basketball games and other big events. The last time I watched, the coliseum boasted of a four-sided LED posted at the center. With this LED, you will never miss what you see on TV even as you watch the games live.

Not with the food. Within and outside the coliseum are the best restaurants and outlets. Some of them are my favorites. Gateway is just a walk away. At the second floor, the Coliseum is connected by a bridge to the Farmers Market which has a good selection of food outlets.

Why then?

First, ticket sales or the way tickets are sold to the general public. The manner tickets are distributed or shared to the public. All upper box, patron and ringside tickets are distributed to team members. What are left to the general public are the lower box and general admission tickets with no designated seating.

The last three games I was at the coliseum, the upper box and general sections were crowded, filled to capacity. Many of the PBA fans had to suffer watching the games standing. In the last game, I had to leave the coliseum at half time during the exciting Ginebra-San Miguel game because I could not stand any longer. When I looked down at the lower box, patron and ringside sections, there were many empty seats. Perhaps, recipients of the tickets decided not to watch or were just not basketball enthusiasts.

To put it bluntly, this ticket distribution system is a blunder. It isolates PBA from the general viewing public. Worst, it makes PBA elitist. No way I will go back to the coliseum to watch the games standing.

Second, there was no attempt to manage seat capacity or to implement a revenue management system. Ordinarily, like in airlines and restaurants, some guests are upgraded to re-distribute capacity, sometimes for free and sometimes for a fee which generates additional revenues.

The absence of an initiative to re-distribute seat capacity suggests an elitist policy. As usual, the general public suffers or have to bear the consequences.

Sunday, November 14, 2010

Excellence

(Speech delivered as Chief Guest of the Sri Lanka Marketing Institute during the 2010 Effie Awards held in Colombo, Sri Lanka)

I bring you greetings from the Philippines and from my association the Philippine Marketing Association (PMA).

When I read the invitation of SLIM President Rohan Somawansa, I did not hesitate to accept. I cleared up my schedule and went on to book the flight. Earlier this year, I invited all national marketing association members of the Asia Marketing Federation to attend the PMA National Marketing Conference (NMC). Sri Lanka Institute of Marketing (SLIM), through Rohan, was the first to accept. Rohan even volunteered to bring along a super speaker from Sri Lanka. And he did.

SLIM has always responded to our invitation to attend our national and world conferences. I would like to think that the PMA should do no less and respond to SLIM’s invitation. SLIM and the PMA have developed this unwritten partnership based on mutual interests and objective. SLIM and PMA members have also developed close ties and friendship. You can consider SLIM and PMA as one tiny block in the Asian Marketing Federation. I believe that our countries share similar problems and circumstances.

Moreover, SLIM and the PMA have similar mission and vision. Founded in 1970 and subsequently incorporated by an Act of Parliament in 1980, SLIM has been promoting marketing and elevating the status of marketing in Sri Lanka. The PMA’s mission is to develop and promote Marketing as a science and profession guided by the universal principles of ethics, corporate citizenship and social responsibility and to serve as a policy making and recommendatory arm of the government on Marketing related issues

SLIM’s vision is to establish marketing as the driving force, which enhances business and national value. PMA’s vision is to create awareness on the power of marketing in business, industry and the academe, both here and abroad. The PMA's theme this year is “Marketing as Growth Accelerator.” Marketing as a growth accelerator advances the idea that the discipline of marketing is a superior approach towards sustainable corporate growth and profitability. The frameworks that are found in marketing are essentially the prescription for sustainable growth and profitability.

SLIM and the PMA are active members of the Asia Marketing Federation, and, by virtue of the affiliation, are both associated with the World Marketing Association, and UN Global Compact.

As active promoters of the art and science of marketing and as practitioners, SLIM and the PMA subscribe to the basic tenets of best practices in marketing and change management through customer and market understanding.

We just attended the Board of Management meeting of the AMF on November 4 and 5 in Tokyo. In that meeting, we reaffirmed the growing importance of the Asian region in the global economy. Two of the top three global economies come from our region. It is also expected that very soon, China will become the global leader and the biggest economy in the world. It will be this region and many countries in this region where economic growth will be sustained.

In Tokyo, SLIM and PMA attended a global conference organized by the AMF and Japan Marketing Association. Two distinguished scholars and writers presented their thesis about the role of marketing in development and the future of marketing as a driver for growth. Professor Hyun-Chul Kim of Seoul University outlined the accomplishments of Korea and what it did to rise above the difficulties brought about by the global crisis and become a world competitor. Hermawan Kartajaya, considered as one of the top 50 marketing gurus in the world, presented what marketing should and will be in the future and the importance of change in driving economic growth.

From these discussions, I realized that the changes driving economic growth in Asia are essentially market-driven and rooted on the successful applications of the latest principles of marketing. On the other hand, the principles that are dictating the type of marketing strategies are evolving. I consider Marketing's dynamism and its propensity to change and evolve as the elements that make marketing an important driver of corporate growth and profitability.

Such significance can only surface by recognizing the role of marketing in driving institutional growth and success. The Effie Awards, a global awards scheme which selects the most effective advertising campaigns that have excelled at the national and international levels, provide such recognition. Through these Awards, SLIM promotes best practices in the advertising industry. It is also through these awards that SLIM is able to provide industry and government with guidelines for driving growth. This is consistent with SLIM’s mission of being an active leader in the nation’s efforts towards economic prosperity and SLIM’s vision of establishing marketing as the driving force to create business and national value.

In that session, I also realized that the world does not stand still. In the 1960s and 1970s, South Korea was at the lower end of the list of countries in terms of economic development. Indonesia was very parochial and had very few executives that could be considered as global thought leaders. But lo and behold, Japanese top executives attended the session and listened to a Korean professor and an Indonesian marketing consultant.

I congratulate Sri Lanka Institute of Marketing (SLIM) for carrying the torch of excellence in marketing through the Effie Awards. These awards are very significant not only to the marketing profession in Sri Lanka but also to the members of the Asian Marketing Federation (AMF) of which SLIM and PMA are members.

Let me also congratulate the awardees, the epitome of excellence and considered the best of the best and the most effective MARCOM Campaigns in 2010.

Monday, October 25, 2010

disaggregated pricing (part 2)

When my kumpadre Ed Tiambeng, a seasoned traveler, was penalized for re-booking his flight to Tacloban even if it was one week ahead of the original schedule, he got smoldering mad. From the smoke of madness, he came up with a not-so-bright idea of calling his congressman to propose a bill that will ban penalties for rebooking if the ticket was rebooked at least two days before the flight.


It is a not-so-bright idea because the same rule will apply to all airlines. The airline with the advantage will still keep that advantage no matter how small that is. It is also not certain if government will have the facilities and ability to regulate this option.


Michel Roberts, my favorite strategist, argues that a market leader would always have the advantage if what the competitors did was merely to try to out-compete the market leader. If they exploit the weakness, if there is any, the market leader would have the size and muscle to adjust and overcome the weakness. If they compete head-on focusing on the strength, there is just no way that the market leader would lose. Roberts consider the SWOT approach as irrelevant for this reason.


Herbert Hoover, the 31st president of the United States servicing from 1929 to 1932, advocated and pushed for efficiency management. That framework suggests that government is inefficient and should be less visible in sectors where the private sector is capable of producing the desired capacity. He favored a strong government and private partnership. For all his failures at the onset of the great depression, Hoover presented a solid governance principle. We should not allow government to spread its tentacles.


Instead of seeking for a legislative initiative, competitors should consider this failing as an opportunity to create its own arena of competition. It is possible that Cebu Pacific’s system was designed to support the disaggregated pricing. No Board would ever support the mothballing of a huge investment based on a speculative notion. My best guess is that the Board will vote to sustain that strategy if it comes to that. On the other hand, other airlines can easily sway to a new system with less complication and with nothing to lose. If they do, they have my attention and my money.


One possibility is for other airlines to create a system that will credit delays in flights to penalties for rebooking. This approach has two benefits. First, it would endear the airline to passengers who have suffered so much from the disaggregated pricing scheme. Second, it puts some credibility in the airline’s mouthful of promises.


A more radical approach is the pizza approach. Pizza not delivered on time becomes free. Passengers pay only if the flight leaves and arrives on time. Passengers pay 50% once the plane departs on time. The balance is payable on arrival according to on-time performance. Hah, that would be one super strategy. Of course, the only way this may be implemented is if the system supports it. If an airline has a working system in place that supports a different approach, like Cebu Pacific, it would take more than a normal effort to calibrate if at all that is possible. If none or a different one exists, that airline is more flexible.


If you have other ideas, email to abfontanilla@yahoo.com.