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Lecture 2 (Business)
Narrator
Listen to part of a lecture in a Business Class
Professor
Ok, as we’ve talked about a key aspect of running a successful business is knowing, um, getting a good sense of what the customer actually wants, and how they perceive your product. So with that in mind, I want to describe a very simple method of researching customer preference, and it is becoming increasingly common, it's called----MBWA----which stands for managing by wandering around. Now, MBWA, that's not the most technical sounding name you've ever heard, but it describes the process pretty accurately. Here is how it works.
Basically, Um, the idea is that business owners or business managers just go out and actually talk to their customers, and learn more about how well the business is serving their needs, and try to see what the customer experiences, because that's a great way to discover for yourself, how your product is perceived, what the strengths and weaknesses are, you know, how to you can improved it that sort of thing, you know Dortans, they make soup and can vegetables and such. Well, the head of the company, had Dortans’ topped executives walk around supermarkets, um, asking shoppers what they thought of Dortans’ soup, and he use the data to make changes to the company's product, I mean, when Dortans of all the companies, embraces something as radical as MBWA, it really show you how popular the theory has become, yes, Lisa?
Student A
But isn’t it dangerous to base decisions on information from a small sample of people? Isn’t it large scale market research safer getting data on a lot of people?
Professor
That's a good question, and well I don't want to pretend that W… MBWA is some sort of, um, replacement for other methods of customer research. Now, the market research data definitely can give you a good idea of, um, of the big picture, but MBWA is really useful kind of filling in the blanks, you know, getting a good underground sense of how you products you use, and how people need respond to them, and Yes, the numbers of opinion you get is small so you do need to be careful, but, good business managers will tell you that the big fear they have an.. .and one of the most frequent problems they come across is well becoming out of touch with what their customers really want and need, you know surveys and market research stuff like that, they can only tell you so much about what the customers actually want in their dayto- day lives. Managing by wandering around on the other hand, that get you in there give you a good sense about what customers need so. So when use combination then, MBWA and market research were the powerful tools. Oh, here is another example for you, um, senior executive for a clothing manufacture. It was, um, Lken, Lken jeans you know, they went in work in the store for a few days, selling Lken's cloths. Now that gave them a very different idea about their product, they saw how people responded to it; they could go up to customers in the store asked questions about it, yes Mike?
Student B
Well, I would think that a lot of customers will be bothered by, you know, if I'm shopping, I don't know if I want some business representatives coming up to me and asking me questions, it's.. It's like when I got phone call at home from marketing researchers, I just hang up them.
Professor
Oh, well, it's certainly true that well no one likes getting calls at home from market researchers or people like that, but I will tell you something. Most customers have exact opposite reaction when they comes to MBWA. Now, don't ask me why, because I really have no idea, but the fact is that customers tend to respond really well to MBWA, which is the key reason for a success. In fact, the techniques of MBWA works so well, they have actually been extended to all kinds of different contacts like politics for instance, Um, a few years back, the mayor of Botamore, Um.. I can guess its name is Shapher or something like that. Anyway, he decided that the best way to serve the people of the city, of his city, was actually get out there in it and experience the things that they experienced, so he ride around the city in, you know, in all parts of it, and he see all the potholes; he see how the trash was sometimes, um, not pick up but off side the street and then they go back to the office and they write these memos, Now they were memos to his staff about the problems he had seen, and how they needed to be fixed, you know that sort of thing, but the thing is he got all the information just by going around and seeing the different Botamore neighborhoods and talking to the people in them, and he called it--- small politics, we'd call it MBWA, or just, playing good customer service.