Marketing Terminology Made Simple

viral-marketingYou see a gorgeous girl at a party. You go up to her and say, “I’m fantastic in bed”.

That’s Direct Marketing.

You’re at a party with a bunch of friends and see a gorgeous girl. One of your friends goes up to her and – pointing at you – says, “He’s fantastic in bed”.

That’s Advertising.

You see a gorgeous girl at a party. You get her telephone number off one of her friends. The next day you call and say, “Hi, I’m fantastic in bed”.

That’s Telemarketing.

You’re at a party and see a gorgeous girl. You get up and straighten your tie; you walk up to her and pour her a drink. You open the door for her, pick up her bag after she drops it, offer her a ride, and then say, “By the way, I’m fantastic in bed”.

That’s Public Relations.

You’re at a party and see a gorgeous girl. She walks up to you and says, “I hear you’re fantastic in bed”.

That’s Brand Recognition.



Lessons in Management

Corporate Lesson One

management lessonA man is getting into the shower just as his wife is finishing up her shower when the doorbell rings. After a few seconds of arguing over which one should go and answer the doorbell, the wife gives up, quickly wraps herself up in a towel and runs downstairs.

When she opens the door, there stands Bob, the next door neighbour. Before she says a word, Bob says,”I’ll give you £800 to drop that towel that you have on”

After thinking for a moment, the woman drops her towel and stands naked in front of Bob. After a few seconds, Bob hands her £800 and leaves.

Confused, but excited about her good fortune, the woman wraps back up in the towel and goes back upstairs. When she gets back to the bathroom, her husband asks from the shower, “Who was that?”

“It was Bob the next door neighbour,” she replies.

“Great,” the husband says, “did he say anything about the £800 he owes me?”

Management Lesson?

If you share critical information pertaining to credit and risk in time with your stakeholders, you may be in a position to prevent avoidable exposure.

Corporate lesson 2

A priest was driving along and saw a nun on the side of the road, he stopped and offered her a lift which she accepted. She got in and crossed her legs, forcing her gown to open and reveal a lovely leg.

The priest had a look and nearly had an accident. After controlling the car, he stealthily slid his hand up her leg. The nun looked at him and immediately said, “Father, remember psalm 129?”

The priest was flustered and apologised profusely. He forced himself to remove his hand. However, he was unable to remove his eyes from her leg.

Further on while changing gear, he let his hand slide up her leg again. The nun once again said, “Father, remember psalm 129?”

Once again the priest apologised. “Sorry sister but the flesh is weak.”

Arriving at the convent, the nun got out gave him a meaningful glance and went on her way.

On his arrival at the church, the priest rushed to retrieve a bible and looked up psalm 129.

It Said, “Go forth and seek, further up, you will find glory.”

Management lesson?

Always be well informed in your job, or you might miss a great opportunity

Corporate Lesson 3

A sales rep, an administration clerk and the manager are walking to lunch when they find an antique oil lamp. They rub it and a Genie comes out in a puff of smoke.

The Genie says, “I usually only grant three wishes, so I’ll give each of you just one.”

“Me first! Me first!” says the admin clerk.”I want to be in the Bahamas, driving a speedboat, without a care in the world.” Poof! She’s gone.

In astonishment, “Me next! Me next!” says the sales rep. “I want to be in Hawaii, relaxing on the beach with my personal masseuse, an Endless supply of pinna coladas and the love of my life.” Poof! He’s gone.

OK, you’re up,” the Genie says to the manager.

The manager says, “I want those two back in the office after lunch.”

Management lesson?

Always let your boss have the first say.

Barriers to Cooperation among the co-operatives

danger1Co-operative survival in future will depend on the extent of the co-operation or integration among the various co-operative societies. In recent times, there were a number of splits of otherwise large co-operatives into small unviable units which have found it difficult to survive or even break even. Reasons include:-

  1. Clamour for leadership positions in the small splinter co-operative society. It is clear that if societies united, many present day leaders would lose or have to relinquish their positions in an enlarged co-operative society.
  2. Suspicion and jealousy among some leaders. There are those leaders who have inherent suspicion and jealousies and therefore will oppose integration or co-operation at all cost.
  3. Lack of appreciation of the principle of large numbers or the benefits of economic of scale. You will hear some leaders argue that the society is too large to manage. This far from the truth. It becomes too large only because the elected leaders to run them are “too small” in management skills. If the right people are elected into the management, with necessary skills, then integration will be the way for the future and the writing is clearly on the wall for all to read that corporation in future is irreversible.
  4. Lack of exposure. Most leaders have not travelled beyond the confines of their own societies to see that the way forward for international trade is through the formation of large bargaining economic blocks. Co-operatives cannot afford to be left behind in a fast globalizing and integrating world.

Co-operatives are faced with major crisis which they cannot face individually. These are:

  1. Crisis of management
  2. Crisis of capital
  3. Crisis of ideology, and
  4. Crisis of credibility.

If they are not careful, they may sooner face the crisis of legitimacy and relevance.

From the book?:

Title A commentary on the Co-operative Societies Act, 1997: No. 12 of 1997
Authors Murungi Kibanga ManyaraKenya. Co-operative Societies Act, 1997
Publisher Pearl Marketing Ltd., 2001
ISBN 9966969535, 9789966969538
Length 238 pages
Subjects Cooperative societies

Co-operatives are Endangered

I think the lobby groups that are required to champion for the rights of co-operatives in the country are sleeping and have been doing so for a very long time. Now with the devolution, county governments and the national government are making laws without proper consultation with the sector.

danger1We all remember the Finance Act that introduced 10% excise duty to Saccos with FOSAs. The Finance Act 2013 talked of “Saccos registered under Sacco Act 2008” which contradicts the Sacco Act 2008. The Sacco Act 2008 provides for licensing, regulation and promotion of certain Sacco societies to establish Sacco Societies Regulatory Authority and for connected purpose and not registration. Registration is the function of Co-operative Societies Act Cap 490. Now county governments are coming up with licenses or permit fees to be charged co-operatives in their respective bills/acts.

Here is an excerpt of Kiambu Government Finance Bill that touches on Co-operative Societies:

The following permit/licence fees shall be charged on the business listed in first column at the rate specified in either in the second, third or fourth column depending on categories of the urban zone

BUSINESS Major Urban Zone Medium Urban Zone Small Urban Zone
Large financial services including Saccos and cooperative societies with over 25 employees & / or premises over 300 sq.m 45000 25000 15000
Medium financial services including Saccos and co-operative societies with 6 – 24 employees & / or premises of 100 – 300 sq.m 25000 15000 7000
Small financial services including Saccos and cooperative societies with up to 5 employees & / or premises up to 100 sq.m 15000 7000 5000

Well the Kiambu Finance Bill seems to have not realized that Saccos are co-operatives by saying “financial services including Saccos and co-operative societies.” Sacco stands for “Savings and Credit Co-operative Society.”

Seems also the Bill targets the permit/license fees based on number of employees and or premises where they do business. I bet many Saccos do not have employees nor offices although they are required to. Many co-operatives officials usually store their documents at home or within the companies/institutions where they work so how will the Kiambu Government implement this?

Co-operatives are not profit oriented and some have small membership and cannot afford to employ or rent offices/places of business. The advantage of being under the national government is that this was understandable even the county councils and municipal councils were instructed not to charge co-operatives license fees or permit fees and this lead to growth of the sector hence being number one in the continent.

The Bill should have specified what does “small, medium or large financial services” specifically means. Not only based it on premises size and numbers of employees. Is the fees (license/permit) charged per business or premises of every branch and the main branch? Many co-operatives have branches in Kiambu County and therefore this is going to be costly bearing in mind the license fees charged by Sacco Society Regulatory Authority (SASRA) on the main branch and sub-branches. Also is the number of employees per branch on a particular premise or is it the Sacco or that particular business total number of employees? The Bill also should have specified between the premises size and number of employees what takes precedence. A business could be occupying a bigger space but has two employees and a business with a small space with more than 10 employees for example.

For co-operatives license/permit fees should have been based on membership or share capital irrespective of whether they are in the major, medium or small urban zones. The reason is, many Saccos are in major urban zones and smaller co-operatives in the major urban zones will suffer if this bill becomes an act and is implemented as it is.


Major urban zones includes Thika Sub-County, Kiambu Sub-County, Ruiru Sub-County, Githunguri Sub-County and Limuru Sub-County.
Medium urban zones includes Juja Sub-County, Kikuyu-Sub County, Lari Sub-County and Kabete Sub-County.
Small urban zones includes Gatundu North Sub-County, Gatundu South Sub-County and Kiambaa Sub-County.



For those aspiring to work in a Sacco Society, these are the main duties and responsibilities of a loans clerk:
(a) Maintain records of members’ loan applications and approvals.
(b) Scrutinizes loan application forms and agreements to ensure they give accurate information and other particulars.
(c) Guides board of directors meeting and advises them on the loan policy, defaulted loans and recovery methods from the guarantors.
(d) Advices the society on amount of loan to be recovered from each member.
(e) Ensures loan transactions are posted to members’ account and computation of interest earned by each member and society is done as necessary.
(f) Reconciles loans accounts to ensure postings are correctly done.
(g) Attends loans committee meetings.
(h) Ensures adequate supply of stationery.
(i) Ensures sample checking of the correctness of interest calculations on loans and act upon discrepancies discovered.
(j) Follow up list overdue loans and debts and ensure that proper recoveries are made.
(k) Carry out any other duties related to credit administration as instructed by the senior management.
(l) Appraise loans applications before they are forwarded to the General Manager.
(m) Advise the senior manager on defaulting of loans and means of recoveries.
(n) Compute defaulted loans, reveal how much is defaulted and the number of defaulters.
(o) Serve guarantors with letters on defaulted loans.
(p) Maintain records of each members’ loan application and approval, have knowledge of how much is loaned each month and the number of loanees.
(q) Ensure adequate supply of stationery in the department.
(r) Enter necessary data in the loan register
(s) Attend approval of loans by the credit committee.
(t) Ensure that there is proper recovery of loans through updating of statements.
(u) Compute capitalized interest on defaulted loans.
(v) Ensure that refund of loan is properly computed.
(w) Delegates duties and responsibilities in the department
(x) Carry out any other duties related to loans as instructed by the senior manager from time to time.


(a) Designs the internal control systems and procedures of the society.
(b) Advise the board on the weaknesses of the existing internal control systems and procedures.
(c) Ensures that all the policies of the societies are properly implemented and adhered to.
(d) Periodically, prepares internal management report revealing whether the internal control systems and procedures are being followed. This
should be done monthly.
(e) Supervises the heads of sections by getting daily report on the performance of his department.
(f) Delegates responsibilities in his department.
(g) Evaluates the performance of all departments and make recommendations whether the performance is upto required standards.
(h) Carries out induction training to new employees in his department.
(i) Liaising with the external auditor when need arises.
(j) Examines all cheques; cash payments to ensure that NO irregularity in payments is made. Also examine all accompanying relevant documents to ensure that there is genuine authorization.
(k) Examines the final books of accounts to determine whether they present a true and fair view of the financial status of the society.
(l) Prepares leave roaster for the department.



1. Controls all society cash transactions.

2. Prepares quarterly economic performance report for the senior manager.

3. Preparation of the society final accounts.

4. Preparation of monthly financial management report

5. Prepares society financial quarterly reports for board of directors.

6. Prepares annual society budget with assistance of the budget committee.

7. Supervising all the society activities when the senior manager is not present.

8. Tax administration.

9. Compiles all society daily transactions and summarizes all the work done in accounts covered by the employees from all departments/sections.

10. Deputizes the manager.

11. Receives and banks cheques.

12. Records down all the cheques drawn.

13. Ensures that all cash balances are well maintained by using the cheques register.

14. Providing periodic report to the Manager on the affairs of the cash balances.

15. Ensures that all cash transactions involving the co-operative expenditure are properly authorized

16. Supervises cash office operations and the strong room operations.

17. Keeps custody of cheque books and is responsible to the senior manager for drawing of all cheques.

18. Maintains adequate liquidity reserve in accordance with rules and regulations.
Collects cash from the Commercial Banks.

19. Assists in organizing mobile banking services.

20. Distribute cash to tellers as necessary

21. Supervises tellers to ensure they are working according to instructions.

22. Receives and banks cash, cheques postal orders and money orders for loan repayments.

23. Receives, verifies and banks cheques for payment to members.

24. Receives and reconciles daily tellers cash reports.

25. Carries out complete surprise checks at each teller’s cash from time to time.

26. Prepares for daily deposits in the commercial banks.

27. Prepares cash summarizes and reports.

28. Assists in preparing tellers’ training and education programmes.

29. Carries any other duties connected with cash transactions as instructed by the senior manager.

30. Reports in writing immediately to the senior manager irregularities such as:
(i) Forgery
(ii) Theft
(iii) Misappropriation
(iv) Staff misconduct
(v) Misbehavour discovered and take appropriate measure without delay.

31. Any duties that may be assigned to him/her from time to time.

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