- The fringe benefit tax can be avoided if you own a car and the company pays for maintenance and petrol bills.
- The most profitable way to claim HRA is to ask the company to take a house on lease, which is owned by any of your relatives. If it's your parents, who don't have any income, it works completely to your advantage. On one hand, you claim HRA and they, having zero income, don't have to pay any tax. In fact, even if they have some income, but less than the stipulated base limit of Rs 220,000 a year (assuming they are retired), they would gain from the situation. The maximum benefit occurs when the rent is over 20 per cent of your salary.
- When gift vouchers are given, insist on taking them under the employee welfare scheme.
- Mobile phone bills are considered a perquisite and taxed, causing your office to fret a lot. You can again offer tax counselling by suggesting a simple trick. The mobile phone bills can be placed under "recurring operative expenditure" head. All taxes are eliminated at one stroke.
- At home, leased phone landlines installed at the company's behest and cost, allows you to get rid of paying tax on calls.
- Travel expenses and hotel stays are taxed under FBT. In fact, even a conference to discuss reducing tax incidence on perquisites will also be taxed! :-) However, by not showing the expenditure as conference/seminar and calling it "convention" would remove the tax burden.
- The office may want to give meals, breakfast or tiffin, but FBT fear precludes an employer from extending this perquisite to staff. Why not have an office "food and beverage" account? Show the claim in the income tax return.The FBT will not apply, at all.
- Finally, soft furnishings for a house (such as curtains and table cloth), which give the abode a decent appearance for entertaining guests who drop in for official duties, can be shown as expenses. They also qualify for tax exemption.
Monday, March 30, 2009
Avoiding fringe benefit tax
Some tips which my company's CA firm had given us a while back. Very interesting
Wednesday, March 25, 2009
Prosumers
Excerpts of different articles that i'd found while at the IIMK course! I'm putting it up here hoping it'll be of use to some!
Prosumers are human media. A powerful word of mouth, the brand evangelists
Prosumers are important because they both reflect and shape markets. Being highly communicative, they pick up what others are thinking and reflect it through the lens of their own experiences. And, being interested in innovation, they gather information widely, they try out new things, and they tell others about those experiences. They are 'conversational currency'.
Twenty-five years after Alvin Toffler coined the term "Prosumer" in his book The Third Wave, Consumer Anthropologist Robbie Blinkoff says the Prosumer is officially here to stay. "It is now the producers -- companies, manufacturers, marketers and retailers, who need to adapt," said Blinkoff.
A Prosumer is part producer part consumer. Prosumers are engaged in a creative process of producing a product and service portfolio with guidance from trusted friends - the companies they've trusted for years and the new ones they've come to love.
From which words is the Prosumer concept derived?
Alvin Toffler introduced the "Prosumer" in his book, The Third Wave. In his construct, the term was used to define the "coming together" of producers and consumers of goods and services, in a kind of partnership to determine what should be made for consumption. In our view, Prosumers define a segment of the population who are proactive, empowered and have a "dynamic" relationship with brands
If the prosumer is an evolution of the early adopter, the early adopter just vanished? Why?
Prosumers are by definition early adopters but they are also much, much more: They are proactive in seeking out information and opinions; active in sharing their views and experiences with others; ahead-of-the-curve in their attitudes and behaviors. Early adopters tend to be more "one dimensional", i.e., they tend to be defined by the particular behavior of adopting early.
A globalization at the personal level
Which are the similarities and differences between them?
Like early adopters, Prosumers are defined by their behavior but they are also defined by their attitudes to the category, brands, companies, information, and the media. Within Prosumers, we see three categories:- The leading edge: a small % of the population (2%), who are so "out there", they are beyond prediction, and unlikely to impact the mainstream;- Early adopters (a.k.a. Alphas): about 8%, importantly defined by "inner directed-ness". They value, and tend to hold close 'what they know'. Trend-setters;- Social networkers (a.k.a. "Bees"): Some 20% of the population. Linked to the Alpha, but most importantly, people who are at the hub of their social networks; "outer directed" and the "trend-spreaders to the mainstream".
Which are the most important aspects in the prosumers?
Prosumers are the approximately 20-30 percent of people at the vanguard of consumerism. They are powered by three unstoppable forces: the Internet (which empowers them with information, forums, and communication), media fragmentation (which makes their word of mouth far more powerful), and globalization at the personal level (which allows their force to be felt all over the world). Compared with the average consumer, prosumers are more marketing savvy and demanding. They actively seek out information and opinions, share their views and experiences with others, and are keenly aware of their worth to retailers and brand partners.
Why now all this marketing excitement with this segment?
Prosumers are important because they both reflect and shape markets. Being highly communicative, they pick up what others are thinking and reflect it through the lens of their own experiences. And, being interested in innovation, they gather information widely, they try out new things, and they tell others about those experiences. Because prosumers are more engaged, more responsive, and more proactive than nonprosumers, they can be regarded as an early-warning system. What prosumers are doing and thinking now, mainstream consumers are likely to be doing and thinking down the road. Having advance insights into such shifts-and knowing how to use them-is what strategic planning is all about.
How does the prosumer influence a product segment?
First and foremost, by recognizing that Prosumers are "human media"-as "conversational currency" takes on greater import in creating both attitudes and demand, the ability of the Prosumer to "pass it on" (the very essence of the largest, and most important sub-segment of Prosumers, the "bees"), is an absolutely critical component of controlling brand meaning, and brand message.
«Perhaps most important in maintaining a relationship to the Prosumer is to recognize (as he does) his value to the brand owner. Recognition, respect, and providing "something in it for me" are the keys to building connections between Prosumers and brands».
How should brands communicate with prosumers that don't like advertising?
This is a popular mis-conception. Prosumers resent heavy-handed attempts to beat them into submission, preferring instead high-quality, entertaining, intelligent advertising work-it flatters their well-developed sense of discernment, and they're willing to admit being influenced by it. Prosumers place more value on brand names; they're less likely than non-prosumers to dismiss them as a marketing ruse. Nevertheless, they don't blindly accept the notion that brand names guarantee quality or authenticity; as in other aspects of life, they rely on their research and good judgment to help them determine whether a product is worth the asking price. Perhaps most important in maintaining a relationship to the Prosumer is to recognize (as he does) his value to the brand owner. Recognition, respect, and providing "something in it for me" are the keys to building connections between Prosumers and brands
Does this consumer make sense to the brands outside new technologies?
Our work indicates that there are Prosumers in every category. As much as anything else, they represent a "passion score", so that his efforts to be proactive and engaged in a category probably are conditioned by great "relevance" in the category. Hence, "techies", but also "foodies", "fashionistas", "car jockeys", etc. As Prosumption is a mind-set, those who exhibit the traits are likely to bring them to bear on most product interactions. But if they are not engaged in the category, their display of Prosumer behavior is less likely to be made manifest.
KEY ATRIBUTES OF PROSUMERS- Embrace Innovation: they're the first and second person they know to try new things- Internally Referenced: they take pride in thinking for themselves and being experimental- Communicators: they tell other people about their experiences with new products, brands and services- Influencers. Other people ask their opinions and advice- Skeptical: they don't automatically trust what the media tell them- Engaged: they're interested in the now and are engaged in popular culture
TWELVE KEY PROSUMER TRENDS
- Create their Own Lifestyles
- Don't buy straitjackets
- Choose Smart
- Embrace Change and Innovation
- Love to Be in the Now
- Connect and Interact
- Value Themselves
- Do it by Design
- Expect Good Health
- Value What Works, Fast or Slow
- Are Brand Arbiters
- Want to Learn How
Prosumers are human media. A powerful word of mouth, the brand evangelists
Prosumers are important because they both reflect and shape markets. Being highly communicative, they pick up what others are thinking and reflect it through the lens of their own experiences. And, being interested in innovation, they gather information widely, they try out new things, and they tell others about those experiences. They are 'conversational currency'.
Twenty-five years after Alvin Toffler coined the term "Prosumer" in his book The Third Wave, Consumer Anthropologist Robbie Blinkoff says the Prosumer is officially here to stay. "It is now the producers -- companies, manufacturers, marketers and retailers, who need to adapt," said Blinkoff.
A Prosumer is part producer part consumer. Prosumers are engaged in a creative process of producing a product and service portfolio with guidance from trusted friends - the companies they've trusted for years and the new ones they've come to love.
From which words is the Prosumer concept derived?
Alvin Toffler introduced the "Prosumer" in his book, The Third Wave. In his construct, the term was used to define the "coming together" of producers and consumers of goods and services, in a kind of partnership to determine what should be made for consumption. In our view, Prosumers define a segment of the population who are proactive, empowered and have a "dynamic" relationship with brands
If the prosumer is an evolution of the early adopter, the early adopter just vanished? Why?
Prosumers are by definition early adopters but they are also much, much more: They are proactive in seeking out information and opinions; active in sharing their views and experiences with others; ahead-of-the-curve in their attitudes and behaviors. Early adopters tend to be more "one dimensional", i.e., they tend to be defined by the particular behavior of adopting early.
A globalization at the personal level
Which are the similarities and differences between them?
Like early adopters, Prosumers are defined by their behavior but they are also defined by their attitudes to the category, brands, companies, information, and the media. Within Prosumers, we see three categories:- The leading edge: a small % of the population (2%), who are so "out there", they are beyond prediction, and unlikely to impact the mainstream;- Early adopters (a.k.a. Alphas): about 8%, importantly defined by "inner directed-ness". They value, and tend to hold close 'what they know'. Trend-setters;- Social networkers (a.k.a. "Bees"): Some 20% of the population. Linked to the Alpha, but most importantly, people who are at the hub of their social networks; "outer directed" and the "trend-spreaders to the mainstream".
Which are the most important aspects in the prosumers?
Prosumers are the approximately 20-30 percent of people at the vanguard of consumerism. They are powered by three unstoppable forces: the Internet (which empowers them with information, forums, and communication), media fragmentation (which makes their word of mouth far more powerful), and globalization at the personal level (which allows their force to be felt all over the world). Compared with the average consumer, prosumers are more marketing savvy and demanding. They actively seek out information and opinions, share their views and experiences with others, and are keenly aware of their worth to retailers and brand partners.
Why now all this marketing excitement with this segment?
Prosumers are important because they both reflect and shape markets. Being highly communicative, they pick up what others are thinking and reflect it through the lens of their own experiences. And, being interested in innovation, they gather information widely, they try out new things, and they tell others about those experiences. Because prosumers are more engaged, more responsive, and more proactive than nonprosumers, they can be regarded as an early-warning system. What prosumers are doing and thinking now, mainstream consumers are likely to be doing and thinking down the road. Having advance insights into such shifts-and knowing how to use them-is what strategic planning is all about.
How does the prosumer influence a product segment?
First and foremost, by recognizing that Prosumers are "human media"-as "conversational currency" takes on greater import in creating both attitudes and demand, the ability of the Prosumer to "pass it on" (the very essence of the largest, and most important sub-segment of Prosumers, the "bees"), is an absolutely critical component of controlling brand meaning, and brand message.
«Perhaps most important in maintaining a relationship to the Prosumer is to recognize (as he does) his value to the brand owner. Recognition, respect, and providing "something in it for me" are the keys to building connections between Prosumers and brands».
How should brands communicate with prosumers that don't like advertising?
This is a popular mis-conception. Prosumers resent heavy-handed attempts to beat them into submission, preferring instead high-quality, entertaining, intelligent advertising work-it flatters their well-developed sense of discernment, and they're willing to admit being influenced by it. Prosumers place more value on brand names; they're less likely than non-prosumers to dismiss them as a marketing ruse. Nevertheless, they don't blindly accept the notion that brand names guarantee quality or authenticity; as in other aspects of life, they rely on their research and good judgment to help them determine whether a product is worth the asking price. Perhaps most important in maintaining a relationship to the Prosumer is to recognize (as he does) his value to the brand owner. Recognition, respect, and providing "something in it for me" are the keys to building connections between Prosumers and brands
Does this consumer make sense to the brands outside new technologies?
Our work indicates that there are Prosumers in every category. As much as anything else, they represent a "passion score", so that his efforts to be proactive and engaged in a category probably are conditioned by great "relevance" in the category. Hence, "techies", but also "foodies", "fashionistas", "car jockeys", etc. As Prosumption is a mind-set, those who exhibit the traits are likely to bring them to bear on most product interactions. But if they are not engaged in the category, their display of Prosumer behavior is less likely to be made manifest.
KEY ATRIBUTES OF PROSUMERS- Embrace Innovation: they're the first and second person they know to try new things- Internally Referenced: they take pride in thinking for themselves and being experimental- Communicators: they tell other people about their experiences with new products, brands and services- Influencers. Other people ask their opinions and advice- Skeptical: they don't automatically trust what the media tell them- Engaged: they're interested in the now and are engaged in popular culture
TWELVE KEY PROSUMER TRENDS
- Create their Own Lifestyles
- Don't buy straitjackets
- Choose Smart
- Embrace Change and Innovation
- Love to Be in the Now
- Connect and Interact
- Value Themselves
- Do it by Design
- Expect Good Health
- Value What Works, Fast or Slow
- Are Brand Arbiters
- Want to Learn How
'God' save us
How does one walk out of a play when you are sitting second row from the stage, without offending the actors? Why would someone decide to perform a play titled "God" script by Woody Allen? I still cant figure out if its the actors that make a script funny or the script that makes the actors look good?
This supposed comedy was a slapstick and almost obnoxiously in your face! No offence to this group called Tatvam who performed it, coz they have some talented chaps, perhaps this was not a play they should've chosen to perform
This supposed comedy was a slapstick and almost obnoxiously in your face! No offence to this group called Tatvam who performed it, coz they have some talented chaps, perhaps this was not a play they should've chosen to perform
Monday, March 23, 2009
Where does politics end?
I am done with being negative about everything and everyone that i might've blogged about! I am not thinking about how the Narendra Modis, Arun Jaitleys, the Varun Gandhis and all the other line of jokers can attempt to be mindless (coz i know they're not, the problem is that the agenda is almost always hidden) and say anything in the media to either put someone else down or 'be seen'.
I am actually in awe of some brilliant representatives of the constitution of this country and want to acknowledge them, most relevant today is our ex finance minister P Chidambaram, despite all the criticism he's facing for influencing the IPL to move out of India. I strongly back him on what he's stood for and won. He's showed us all that he's firm on his priorities and will not bow down to pressures even as mammoth as IPL (BCCI / Sharad Pawar). India owes a lot to Chidambaram, directly or indirectly. The Manmohan Singh / Chidambaram combination has ensured that our country continues its growth charter when half the world is in an economic mess! No doubt, there are a lot of factors that go into this and not all credit goes to this duo, but they sure as hell deserve a fair share of appreciation for what they have managed, specially when you have more than enough people waiting for you to make that 'one wrong move'.
Some of the other politicains I respect, in random order are as below:
Omar Abdullah
Sonia Gandhi
Atal Bihari Vajpayee
SM Krishna
Naveen Patnaik
Somnath Chaterjee
Jyoti Basu
PA Sangma
I am actually in awe of some brilliant representatives of the constitution of this country and want to acknowledge them, most relevant today is our ex finance minister P Chidambaram, despite all the criticism he's facing for influencing the IPL to move out of India. I strongly back him on what he's stood for and won. He's showed us all that he's firm on his priorities and will not bow down to pressures even as mammoth as IPL (BCCI / Sharad Pawar). India owes a lot to Chidambaram, directly or indirectly. The Manmohan Singh / Chidambaram combination has ensured that our country continues its growth charter when half the world is in an economic mess! No doubt, there are a lot of factors that go into this and not all credit goes to this duo, but they sure as hell deserve a fair share of appreciation for what they have managed, specially when you have more than enough people waiting for you to make that 'one wrong move'.
Some of the other politicains I respect, in random order are as below:
Omar Abdullah
Sonia Gandhi
Atal Bihari Vajpayee
SM Krishna
Naveen Patnaik
Somnath Chaterjee
Jyoti Basu
PA Sangma
E-mail marketing statistics
E-mail / newsletter statistics
Branding*
- 40% said that simply receiving email has a positive impact on their likelihood to make a future purchase a company. - Epsilon "Branding Survey" (Feb 2009)
- 71% remember email communications when making purchases at the sending company’s web site. - Epsilon "Branding Survey" (Feb 2009)
- 54% of respondents in a consumer survey said they had a more favorable opinion of the companies that send them email. - Epsilon (Oct 2008)
- 84% of respondents said they like receiving email from companies with whom they register, because even if they don’t always read the message, it’s good to know the information or offer will be there when they’re ready. - Epsilon "Branding Survey" (Feb 2009)
- In 2005, 43% of respondents said it would be okay for companies they know and trust to send email more frequently. In the recent study, that number dropped to 29%. - Epsilon "Branding Survey" (Feb 2009)
- Email marketing doubles buying intention and increases aid recall by a further 14%. - Unilever, eCircle and GfK (2008)
Frequency*
- 40% of consumers say email comes too often - David Daniels, Vice President, JupiterResearch (Dec. 2007)
- B2B subscribers are twice as likely to consider email "spam" if it comes "too frequently." - MarketingSherpa (2007)
- More than one-quarter of the email that consumers received in their inboxes was marketing. - JupiterResearch (2007)
- Wednesday was the best day of the week in the third quarter of 2007 to send email in terms of click (3.9%) and open rates (25.4%). - eROI (2007)
- Average open rates on Tuesdays were 22.6% and clicks were 3.2%; open rates on Thursdays were 23.6% while click rates were 3.7%; open rates on Friday were 23.1% and clicks were 3.1%; and open rates on Sunday were 20.7% while clicks were 2.4%. - eROI (2007)
- Most marketers send email to their customers once a week. - Shop.org, State of Retailing Online 2007 report (Sept. 2007)
- When askedd why recipients stopped subscribing to opt-in emails, more than one-half said the content was no longer relevant, and 40% said they were getting too many offers. - JupiterResearch (2007)
- 45% of small businesses execs want to receive the (email) newsletter weekly, 34% said monthly. - Bredin Business Information (2007)
- 60% of online retailers conduct between one and three campaigns each month;32.8% coordinate four to 15 campaigns each month;7.2% conduct more than 15. - Internet Retailer (2007)
- 37.4% say they receive more email than they expected when they signed up. - Return Path (2007)
Friday, March 20, 2009
Bringing shame to a name
The news from a couple of days ago got me to think that the state of Indian politics has reached an apalling low. A person whose lineage is not a family in our country but a symbol of our nationality to a lot of us saying things like he did was a total shocker! Thankfully, the news channels have stopped showing the actual footage after the first day and are showing excerpts that are not too controversial.
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