Some taglines are forever

From Just Do It to We Try Harder, taglines define in one line or a few words the guiding philosophy of a business. The following is a list of the 10 most influential taglines since 1948.

1. Got milk? (1993) -California Milk Processor Board
2. Don’t leave home without it. (1975) -American Express
3. Just do it. (1988) -Nike
4. Where’s the beef? (1984) - Wendy’s
5. You’re in good hands with Allstate. (1956) - Allstate Insurance
6. Think different. (1998) - Apple Computer
7. We try harder. (1962) - Avis
8. Tastes great, less filling. (1974) - Miller Lite
9. Melts in your mouth, not in your hands. (1954) - M&M Candies
10. Takes a licking and keeps on ticking. (1956) - Timex

For the complete list, check out: http://www.taglineguru.com/survey05.html .

Operating and finance leases

A lease is an agreement between the owner of the asset (the lessor) and the party wishing to use the asset (the lessee). There are 2 kinds of leases: operating and capital. The 2 leases are very different from each other and have different accounting treatments. Let us see how operating leases are recorded in the books of the lessee.

A company that gets into an operating lease does not record the asset and the corresponding debt in its balance sheet. The lessee records the lease expense in the income statement and under cash flow from operating activities section in the cash flow statement.

If a company enters into a capital lease, it records the asset (lease asset) and the corresponding debt (lease liability) in its balance sheet. Depreciation and interest expenses are recorded in the income statement. In the cash flow statement, the interest expense is treated as a cash flow from operating activities while amortization of the lease obligation is recorded under cash flows from financing activities.

Effect on financial ratios
Firms with operating leases report higher profitability (depreciation expense is not charged), interest coverage (interest expense is lower) and return on assets (the asset is not recorded while the income generated from using the asset is recorded) than firms with capital leases. However, capital leases allow companies to report higher operating cash flows since only the interest expense is treated as an operating cash flow.

Advertising and changing minds

In simple words, advertising is storytelling. Advertising tells stories about new products or something new about a product. Marketers resort to advertising to convert products (something made in a factory) to brands (thoughts in people’s heads). Advertising, if used effectively, can change people's perceptions about brands. The following are some of the greatest TV ads of all time.

Link: http://www.channel4.com/entertainment/tv/microsites/G/greatest/tv_ads/results.html

Market research and tapping minds

Whether your company is in the service industry or the product industry, it is imperative to know your customers as much as possible so that you can take informed decisions and reduce the margin of risk. In order to take informed decisions, you need sound data. And market research helps you getting that data.

Market research is the method of gathering and analyzing data about your customers. This data enables you to take informed decisions. Market research can help in creating and launching a new product, adding new features to an existing product, creating advertising for your product or service and expanding into new markets.

Types of market research
There are 2 types of market research:
1) Primary research - Primary research involves collecting first hand data about the buying behaviour, preferences, attitudes, usage rates and opinions of current or prospective users through in-depth interviews, surveys, focus groups and field research.

2) Secondary research – Secondary research helps you gather information from journals, industry reports, magazines, newspapers and the internet.

How does market research help?
Market research helps you find the following information about your market and customers:
1) Trends in your industry
2) Size of your target market
3) Factors influencing buying behaviour
4) Demand for your product or service
5) Product or service usage

You can then analyze the information to come up with a focused business plan, create communication strategies, determine prices and take other steps beneficial to your company.

Article link: http://www.allbusiness.com/marketing/market-research/1286-1.html

The Art of Listening

Listening is truly an art. Just as you expect the other person to listen to you when you speak, it is important to recognize that the other person expects you to listen when he or she talks. It is important to not only listen but also be an ‘active’ listener. An article in changingminds.org talks about active listening and how active listening can build relationships between the speaker and the listener.

According to the article, the following are some techniques that can be used to suggest that you are actively listening:

1) Words and actions: You can encourage the person who is speaking though your encouraging words and gestures. Saying ‘yes’ or ‘right’ when the person is speaking suggests that you agree with the person and are encouraging him or her to carry on speaking. Nodding and raising your eyebrows in anticipation also help in conveying the message that you are paying attention.

2) Complete listening: The article quotes Rogers and Farson (1979) in describing active listening as ‘an important way to bring about changes in people’. According to Rogers and Farson, there are 3 aspects to complete listening:

a) Be a ‘content’ listener and an ‘emotional’ listener.
b) Understand the emotions of the speaker and empathize with him or her.
c) Actively observe verbal and non-verbal cues.

3) Paraphrasing: When you summarize what the speaker has said in a few words of your own, you give the impression that you were ‘actively’ listening.

Site link: http://www.changingminds.org/
Article link: http://changingminds.org/techniques/listening/active_listening.htm