Activities that direct the flow of goods and services from producers to consumers. In advanced
industrial economies, marketing considerations play a major role in determining corporate policy.
Once primarily concerned with increasing sales through advertising and other promotional
techniques, corporate marketing departments now focus on credit policies (see credit), product
development, customer support, distribution, and corporate communications. Marketers may look
for outlets through which to sell the company's products, including retail stores, direct-mail
marketing, and wholesaling. They may make psychological and demographic studies of a potential
market, experiment with various marketing strategies, and conduct informal interviews with target
audiences. Marketing is used both to increase sales of an existing product and to introduce new
products. See also merchandising.
Marketing is a general term used to describe all the various activities involved
in transferring goods and services from producers to consumers. In addition to
the functions commonly associated with it, such as advertising and sales
promotion, marketing also encompasses product development, packaging,
distribution channels, pricing, and many other functions. The modern
marketing concept, which is applied by most successful small businesses, is
intended to focus all of a company's activities upon uncovering and satisfying
customer needs. After all, an entrepreneur may come up with a great product
and use the most efficient production methods to make it, but all the effort will
have been wasted if he or she is unable to consummate the sale of the
product to consumers.
The Four Ps
Marketing decisions related to the product (or service) involve creating the
right product for the selected target group. This typically encompasses
research and data analysis, as well as the use of tools such as focus groups, to
determine how well the product meets the wants and needs of the target
group. Numerous determinants factor into the final choice of a product and its
presentation. A completely new product, for example, will entail much higher
promotional costs to raise consumer awareness, whereas a product that is
simply an improved version of an existing item likely will make use of its
predecessor's image. A pivotal consideration in product planning and
development is branding, whereby the good or service is positioned in the
market according to its brand name. Other important elements of the complex
product planning and management process may include selection of features,
warranty, related product lines, and post-sale service levels.
Considerations about place, the second major decision group, relate to
actually getting the good or service to the target market at the right time and
in the proper quantity. Strategies related to place may utilize middlemen and
facilitators with expertise in joining buyers and sellers, and they may also
encompass various distribution channels, including retail, wholesale, catalog,
and others. Marketing managers must also devise a means of transporting the
goods to the selected sales channels, and they may need to maintain an
inventory of items to meet demand. Decisions related to place typically play
an important role in determining the degree of vertical integration in a
company, or how many activities in the distribution chain are owned and
operated by the manufacturer. For example, some larger companies elect to
own their trucks, the stores in which their goods are sold, and perhaps even
the raw resources used to manufacture their goods.
Decisions about promotion, the third marketing mix decision area, relate to
sales, advertising, public relations, and other activities that communicate
information intended to influence consumer behavior. Often promotions are
also necessary to influence the behavior of retailers and others who resell or
distribute the product. Three major types of promotion typically integrated into
a market strategy are personal selling, mass selling, and sales promotions.
Personal selling, which refers to face-to-face or telephone sales, usually
provides immediate feedback for the company about the product and instills
greater confidence in customers. Mass selling encompasses advertising on
mass media, such as television, radio, direct mail, and newspapers, and is
beneficial because of its broad scope. A relatively new means of promotion
involves the Internet, which combines features of mass media with a unique
opportunity for interactive communication with customers. Publicity entails the
use of free media, such as feature articles about a company or product in a
magazine or related interviews on television talk shows, to spread the word to
the target audience. Finally, sales promotion efforts include free samples,
coupons, contests, rebates, and other miscellaneous marketing tactics.
The level of market organisation is largely determined by the new imperatives of the
rising level of economic development. In the non-monetised barter economy there is,
perhaps, no necessity of modern market-organisation as such. The "money economy"
grows with the separation of production, consumption and distribution. In the exchange
economy there is structured processes of production, distribution and delivery. The article
of interdependence is fairly high. All economic activities get increasingly market-
determined and market-oriented.
In addition we come across a chain of agents, hawkers and middlemen with the
growth of the sophistication of the market. Obviously "market-information" becomes a
critical input. Perhaps all market-related activities are undertaken depending upon the so-
called market-information. Remember, market rewards the strongest while market
punishes the weakest also. To that extent market information is important. Today we have
"market-player", "market-developer" and "market- changer" etc. Really interesting. There
is, indeed, a market for market information in the sophisticated economy. Globalisation is
in a sense, the Global Market - largely characterized by free entry and free exist and
largely operating beyond traditional geographical frontiers.
The growth of Central Market (Terminal Market) is a sign of greater tempo and
larger volume of trade-activities. The two important activities namely- Concentration
(Assembly) and Dispersion are primary functions of the central market. In fact, market
prices get largely formalised in this market. Other markets such as district markets and
local markets depend upon the efficiency of the central market. The petty and isolated
producers look to the behavior of the central market.
We have, perhaps, the Khwairamband Market in the heart of Imphal City as a
central market in Manipur. A few district markets are;
1) Kakching Market
2) Moirang Market
3) Bishnupur Market
4) Nambol Market
5) Thoubal Market
6) Churachandpur Market
Of course, there are elected members of the Municipal Councils, Small Town Committees
and Nagar Panchayats etc. Their presence is largely very nominal so far as the market-
development is concerned. What they actually do is a few works of minor nalas, approach
roads, galis, disposal of solid waste and collection of user-charges.
For the small business, there are several different organisational approaches
to marketing. The duty may lie with a single member of the team, or it could
be a group responsibility. The great thing about a small team is the ability to
quickly instill a marketing led ethos which can become the operational soul of
your business.
Depending on budget availability and the skills of the team, you may chose to
outsource certain elements of the marketing process (such as market
research) or decide to do these jobs in-house. Key responsibilities of the
marketing manager / director vary according to the business but can include:
The marketing role can be diverse or focused but now we'll elaborate further
on some key aspects which should be at the heart of the job.
Q2. (a) What is the need of new project planning? Name the essentials of new
products.
project management
Here are rules, processes and tools for project planning and project
management.
While project management skills are obviously important for project managers,
interestingly the methods and tools that project managers use can be
helpful for everyone.
A 'task' does not necessarily have to be called a 'project' in order for project
management methods to be very useful in its planning and implementation.
Even the smallest task can benefit from the use of a well-chosen project
management technique or tool, especially in the planning stage.
Any task that requires some preparation to achieve a successful outcome, will
probably be done better by using a few project management methods
somewhere in the process. Project management methods can help in the
planning and managing of all sorts of tasks, especially complex activities.
Project management is chiefly associated with planning and managing change
in an organization, but a project can also be something unrelated to business -
even a domestic situation, such as moving house, or planning a wedding.
Project management methods and tools can therefore be useful far more
widely than people assume.
Project management techniques and project planning tools are useful for any
tasks in which different outcomes are possible - where risks of problems and
failures exist - and so require planning and assessing options, and organizing
activities and resources to deliver a successful result.
Projects can be various shapes and sizes, from the small and straightforward
to extremely large and highly complex.
In organizations and businesses, project management can be concerned with
anything, particularly introducing or changing things, in any area or function,
for example:
Successful project management, for projects large or small, tends to follow the
process outlined below.
The same principles, used selectively and appropriately, also apply to smaller
tasks.
Project management techniques are not just for project managers - they are
available for anyone to use.
The Java Servlet specification version 2.3 introduces a new component type,
called a filter. A filter dynamically intercepts requests and responses to
transform or use the information contained in the requests or responses.
Filters typically do not themselves create responses, but instead provide
universal functions that can be "attached" to any type of servlet or JSP page.
Filters are important for a number of reasons. First, they provide the ability to
encapsulate recurring tasks in reusable units. Organized developers are
constantly on the lookout for ways to modularize their code. Modular code is
more manageable and documentable, is easier to debug, and if done well, can
be reused in another setting.
Second, filters can be used to transform the response from a servlet or a JSP
page. A common task for the web application is to format data sent back to
the client. Increasingly the clients require formats (for example, WML) other
than just HTML. To accommodate these clients, there is usually a strong
component of transformation or filtering in a fully featured web application.
Many servlet and JSP containers have introduced proprietary filter
mechanisms, resulting in a gain for the developer that deploys on that
container, but reducing the reusability of such code. With the introduction of
filters as part of the Java Servlet specification, developers now have the
opportunity to write reusable transformation components that are portable
across containers.
Filters can perform many different types of functions. We'll discuss examples
of the italicized items in this paper:
•
• Authentication-Blocking requests based on user identity.
• Logging and auditing-Tracking users of a web application.
• Image conversion-Scaling maps, and so on.
• Data compression-Making downloads smaller.
• Localization-Targeting the request and response to a particular locale.
• XSL/T transformations of XML content-Targeting web application responses to
more that one type of client.
These are just a few of the applications of filters. There are many more, such
as encryption, tokenizing, triggering resource access events, mime-type
chaining, and caching.
In this paper we'll first discuss how to program filters to perform the following
types of tasks:
•
• Querying the request and acting accordingly
• Blocking the request and response pair from passing any further.
• Modifying the request headers and data. You do this by providing a customized
version of the request.
• Modifying the response headers and data. You do this by providing a customized
version of the response.
We'll outline the filter API, and describe how to develop customized requests
and responses.
Programming the filter is only half the job of using filters-you also need to
configure how they are mapped to servlets when the application is deployed in
a web container. This decoupling of programming and configuration is a prime
benefit of the filter mechanism:
•
• You don't have to recompile anything to change the input or output of your web
application. You just edit a text file or use a tool to change the configuration. For example, adding
compression to a PDF download is just a matter of mapping a compression filter to the download
servlet.
• You can experiment with filters easily because they are so easy to configure.
The last section of this paper shows how to use the very flexible filter
configuration mechanism. Once you have read this paper, you will be armed
with the knowledge to implement your own filters and have a handy bag of
tricks based on some common filter types.
Programming Filters
The filter API is defined by the Filter, FilterChain, and FilterConfig interfaces in
the javax.servlet package. You define a filter by implementing the Filter
interface. A filter chain, passed to a filter by the container, provides a
mechanism for invoking a series of filters. A filter config contains initialization
data.
The most important method in the Filter interface is the doFilter method,
which is the heart of the filter. This method usually performs some of the
following actions:
•
• Examines the request headers
• Customizes the request object if it wishes to modify request headers or data or
block the request entirely
• Customizes the response object if it wishes to modify response headers or data
• Invokes the next entity in the filter chain. If the current filter is the last filter in the
chain that ends with the target servlet, the next entity is the resource at the end of the chain;
otherwise, it is the next filter that was configured in the WAR. It invokes the next entity by calling
the doFilter method on the chain object (passing in the request and response it was called with, or
the wrapped versions it may have created). Alternatively, it can choose to block the request by not
making the call to invoke the next entity. In the latter case, the filter is responsible for filling out
the response.
• Examines response headers after it has invoked the next filter in the chain
• Throws an exception to indicate an error in processing
(b) Describe the types of Market studies, explain various stages for Research
design for a prototypical market segmentation
Marketing research is often partitioned into two sets of categorical pairs, either
by target market:
Based on observations:
Researchers often use more than one research design. They may start with
secondary research to get background information, then conduct a focus
group (qualitative research design) to explore the issues. Finally they might do
a full nation-wide survey (quantitative research design) in order to devise
specific recommendations for the client.
product design to prototype planning
Many people think about and formulating new and creative ideas all th times.
Unfortunately, in most cases, the value of those ideas usually worth nothing terms of money. And
so the question is what does it take from an
entrepreneur to create money value to his idea, and what is needed to make
money out of it?
This article will deal with the processes needed to build money value to an
idea and with scattering the fog surrounding them.
A scheme describing the processes detailed in this article can be found in www.b-focous.com
Four main processes are needed to transform an 'idea' into 'idea + value':
1. defensive processes – patent searching, analyzing and patent registration or sample
2. developmental processes – prototypes and concepts development in different levels and up to
stages defined in advanced
3. research processes - market surveys: qualitative and quantitative
4. business and marketing processes – business plan and the additional marketing information
needed to present the project
The main process – building value to the project – contains the four processes mentioned, when
there is a different time schedule to every process in order to make the project successful.
In order to unveil the importance and the place of the different processes in the process of building
value to the idea, let's see in general what they stand for.
Developmental processes – product planning, designing and developing and building a prototype:
The developed processes goal is to develop the product the entrepreneur wants to develop. Those
developmental processes will be affected by the patent searches done and their analysis. Also, the
character of the development must be based upon the target audience and strategy chosen.
The development process will reveal unknowns which will be applied to the business processes,
such as the product's production cost, the product's cost to the consumer, expected expenditures,
expected income, goals, land marks etc.
Additionally, the development process will reveal new patents and innovations unknown at the
time. These innovations must be analyzed from defensive perspective, in order to examine the
patent's character needed to be registered and the amount of defense needed.
Business and marketing processes – business accompaniment, business council and business
development
The business and marketing processes already begins at the beginning of the value building process,
and will outline the character of the processes mentioned. Their influence will be present from the
moment of analyzing the patents and the choosing of the business and marketing strategy and up to
the point where all the business and marketing information is ready to be presented to the investor
or the strategic partner, or alternatively, to the potential client.
As part of building and gathering the business information, it will be possible to evaluate the project
worth, income expectation according to the market segment, expenditures forecast until the stage of
Return of Investment, goals, land marks etc. this information will be the base to investment
recruiting and to scatter the fog surrounding the processes needed to the continuous existence of the
To sum it up
Each of the processes mentioned is important by itself, but the value of each separately will leave
too many unknowns and will make it difficult to the entrepreneur to advance the project/
additionally, the entrepreneur must consider the fact that every process takes different time to
complete and that its integration with the other processes is essential to the advance of the general
process – building money value to the idea.
My recommendation to entrepreneurs is that previous to the beginning of any activity, they should
get a fair business council, or alternatively to go to development companies from the industry which
provides different services to entrepreneurs and which give, in addition to business accompaniment,
all four services with inter synchronization and as an integral part of the service they provide.
An example to a scheme describing the processes, their position and their importance in building
value to an idea can be seen in www.b-focus.com under the title Processes for entrepreneurs.
The world is shifting from traditional to techno savvy. Companies are now
getting furnished with advance technology & IT services. The success of
Information Technology companies lie with the increased need of software
development services and this is reason that software development services
market is booming. Nowadays, companies are offering their services in
offshore product development. To achieve success, many companies turn to
the software application development firms to get the complete IT and
software solution for their needs. They consider that basic software are costly
and even do not fulfill their overall needs. Even the services provided by the
software development company are cheaper than buying new and exclusive
software. Several trends are emerging within the area of outsourced software
development. Some of the most important trends are as follows:
Cloud Computing – Cloud computing comes into focus only when you think
about what IT always needs: a way to increase capacity or add capabilities on
the fly without investing in new infrastructure, training new personnel, or
licensing new software. Cloud computing levels the playing field for small
companies to compete against large, established companies at a reasonable
and predictable cost. The cloud is just one example of a virtualized computing
platform, and the next generation of developer tools must enable developers
to build software that deploys and performs well in cloud and other virtual
environment.
We conducted two distinct series of tests: One for a product name and the
other for a domain name.
In both cases we learned that being "intuitive," being an "expert," or just plain
guessing is not enough to tell you how your prospects will respond.
1. The name you give a product, service or web site can have a significant impact on
the number of people who click through from a link to find out more.
2. Regardless of your level of expertise, you will not and cannot identify the name
that will generate the most click-throughs, unless you test.
3. You will find out that testing product and domain names is just the first step,
giving you important insights into the words and phrases that trigger a positive response in your
readers. Step two is to apply that learning to your headings, subheads, bullet points, links and email
subject lines... and then test those as well.
Regarding the means by which we tested these names and domains, we used
Google AdWords. By changing just one element across a series of otherwise
identical ads, we were able to measure the differences in click-through rates.
Google AdWords is a simple, inexpensive way for you to conduct similar tests
for your own company.
In our first test, we wanted to identify the best domain name for a computer
hardware retailer. After brainstorming a list of 34 potential domain names, we
determined that these five had the most potential:
1. TechSavings.com
2. PCPavilion.com
3. BuyTech.com
4. ComputerHardwareDepot.com
5. ComputerHardwareDirect.com
• Each Google AdWords ad was identical other than the domain name listed in the
ad. Each had the same copy, the same headline, and the same fifteen keywords.
• All five ads had the same maximum per-click bid ($0.31).
• Because all of the other elements were the same, we determined that the ad with
the best click-through rate (CTR) would indicate the best domain name.
• The best names for a new product or service offering (see below).
• The best Unique Value Proposition (UVP) for your overall business.
• The most effective sales copy.
In the balance of this report, we will focus on how to test product and service
names to determine the name with the best market potential.
In our second test, we wanted to determine the best product name for a new
financial product.
We initially tested a broad range of product names through Google. Here, we
varied the actual title of the Google ad, while keeping the body copy, domain
name, and keyword bids the same for all 22 ads.
Here are the results of our initial micro-test:
Product Name Test
Product
Click-Through
Name Rate
StockScreener 5.0
Reuters PowerScreener
PowerInvestor
Advanced StockScreener
StockScreener
StockScreener Plus
StockScreener Enterprise
StockScreener Pro
PowerScreener 2006
ScreenPlus
StockSource
Advanced PowerScreener
FlexiScreener
Stock Filter Pro
StockFunnel
Personal Broker
PowerScreener Plus
PowerScreener Pro
Stock Genie
MarketFilter
PowerScreener Enterprise
Enterprise Stock Screener
1. If you have a strong brand already (e.g. Reuters), the test will yield more accurate
results if the ads themselves do not have a brand name in the title, URL, or copy. People see a see a
strong brand name and just click on it. It is an advantage in actual PPC campaigns, but does not
work well if you are using PPC to test the name.
We believe that the strength of the brand overpowers the rest of the ad,
making the subtle changes in the copy less significant. However, if you do use
a strong brand name in your name-testing ads, make sure to use it in ALL of
the ads, and expect to gather more data before accurate results become
apparent.
2. Unless you disable this feature, Google will automatically start to serve only the ad
that is performing the best. This will skew the results of your testing.
3. You may want to initially test names that vary dramatically from each other. As
you begin to learn what overall approach works best, begin to drill down to slight variations of the
best name.
4. Be aware that the search terms someone uses to find a particular ad may affect the
click-through on that ad. For example, if the term "stock picks" is driving the majority of the test's
traffic, the name "Stock Picker 2000" would naturally be more relevant. Monitor your keyword
selection closely to ensure the legitimacy of your test results.
5. Start with names that are naturally descriptive, easy to remember, and which
indicate the value proposition of the product or service. In the case of a digital product, try to create
names that denote tangible value.
6. Consider the marketing value of the name when interpreting the initial test results.
If during the PPC test one name receives a higher click-through, then one would naturally assume
that it is the best name for the product. However, make sure also to think about the offer page that
will sell each product.
In other words, keep in mind that the ad with the highest click-through rate is
not automatically the ad with the highest final conversion rate to sales.
Additional testing -- through to the point of final sales -- will tell you which is
the highest-converting ad.
7. Consider following up the initial name test with a split test using actual landing
pages for each name. Or test the product names as part of a multivariate test on your website.
For more on A/B split-testing, see our recent report on that topic:
8. Investigate whether the domain name for your desired name is available, and
consider how it will rank in the natural search engines. A useful tool for simultaneously
brainstorming names and checking their availability is:
NameFuse
9. Think about how the product name relates to your company name or to other
products that you currently sell. Do they mesh well? Is there a natural brand connection between
your product name and your company name?
(b) How the advertising budget is planned? Narrate the series of heads under
which advertising campaign plan can be divided.
Operating an effective marketing plan requires money, so you will have to allocate funds from
your operating budget to cover advertising, promotional and all other costs associated with
marketing. Develop a marketing budget based on the cost for the media you will use, and the cost
for collecting research data and monitoring shifts in the marketplace.
Describe Location (Place)
Again, try to describe the location of your business from your customer's perspective. Describe its
assets -- i.e., the convenience, whether or not public transportation is accessible, the safety aspects
- street lighting, well lit parking lot or facility, decor, etc. Your location should be built around
your customers, it should be accessible and should provide a sense of security.
Although your pricing strategy may be based on the strategy devised by others, you should study
this plan and the strategies used by competitors. That way you will acquire a thorough
understanding of how to price your product, and you can determine if your prices are in line with
competitors, if they are in line with industry averages and what adjustments you can make to bring
them in line.
The key to success is to have an well-planned strategy, to establish your
policies and to constantly monitor prices and operating costs to ensure profits.
Keep abreast of changes in the marketplace because these changes can affect
your bottom line.
• advertising media
• print media (newspaper, magazine, classified ads, Yellow Pages advertising,
brochure)
• radio
• television
• networking
• business cards
• tee shirts, hats, buttons, pens
Develop a promotional strategy that uses various media for promoting your business. Monitor the
different media identifying those that most effectively promote your business. Concentrate on
developing material for these formats that clearly identifies your services, its location and price.
Since financial institutions weigh the soundness of your marketing plan when
deciding whether your business is a good risk for their money, it is important
that you prepare and present credible market data that shows there is a need
in the community for your business and that demonstrates your ability to
compete.
(b) Explain the advantages of appointing selected agencies to trade your products,
what conditions can be stipulated out of it.
Introduction
Selling a product through an overseas agent is a very successful strategy. Sales agents are available
on commission basis for any sales they make. The key benefit of using an overseas sales agent is
that you get the advantage of their extensive knowledge of the target market. Sales agent also
provides support to an exporter in the matter of transportation, reservation of accommodation,
appointment with the government as and when required. It is, therefore, essential that one should
very carefully select overseas agent.
There are various types of merits associated with appointed a sales agent for export purpose are as
follow:
• Sales agent avoids the recruitment, training, time and payroll costs of using own
employees to enter an overseas market.
• An agent is a better option to identify and exploit opportunities in overseas export
market.
• An agent already have solid relationships with potential buyers, hence it saves the
time of the exporter to build own contacts.
• An agent allows an exporter to maintain more control over matters such as final
price and brand image - compared with the other intermediary option of using a distributor.
There are also certain disadvantages associated with appointing a sales agent for export purpose
which are as follows:
• After-sales service can be difficult when selling through an intermediary.
• There is a risk for exporter to lose some control over marketing and brand image.
Agent v Distributor
There is a fundamental legal difference between agents and distributors and
an exporter should not confuse between the two. An agent negotiates on the
behalf of an exporter and may be entitled to create a legal relationship
between exporter and the importer
A distributor buys goods on its own account from exporter and resells those
products to customers. It is the distributor which has the sale contract with the
customer not the exporter. In the case of distributor, an exporter is free from
any kinds of risks associated with the finance.
This part discusses the special issues concerning the marketing of services.
This is not to imply that the principles of marketing covered in the previous
chapters of this Handbook do not apply to services rather it reflects the
particular characteristic of services in addition to those typical for products.
Cowell states that what is significant about services are the relative
dominance of intangible attributes in the make-up of the “service product”.
Services are a special kind of product. They may require special understanding
and special marketing efforts.
The provision of the continuing education contains the element of the tangible
and intangible. It usually provides a learning materials (physical good) and
also numbers of the service activities (teaching processes, contact with
customers, organisation of the courses, etc.). The distinction between physical
and service offering can, therefore, be best understood as a matter of degree
rather that in absolute terms. The continuing education is service –based
since the value of this product is dependent on the design and delivery of the
CE courses rather than the cost of the physical product (teaching materials,
CDs, etc.).
Process – this means procedures, mechanism and flow of activities by which a service is acquired.
Process decisions radically affect how a service is delivered to customers. The service in CE
includes several processes e.g. first contact with customers, administrative procedure regarding
course delivery, preparation, delivery and evaluation of the courses. The following guideline can
be useful for successful CE management:
• ensure that marketing happens at all levels from the marketing
department to where the service is provided
• consider introducing flexibility in providing the service; when
feasible customize the service to the needs of customers
• recruit high quality staff treat them well and communicate clearly
to them: their attitudes and behavior are the key to service quality and
differentiations
• attempt to market to existing customers to increase their use of
the service, or to take up new service products
• sep up a quick response facility to customer problems and
complaints
• employ new technology to provide better services at lower costs
• use branding to clearly differentiate service offering from the
competition in the minds of target customers
Only few products are unique. Often the challenge lays in finding a way to
differentiate your products from a rival’s near-identical offerings. The basic
question says: “How can I get an advantage over the competition?”
When your products are better than those of your competitors, and when
customers recognize this superiority, you have a real advantage. Few
organisations are in this position. Most find that there is a little or nothing to
distinguish their own products from competitor’s. To gain competitive
advantage, uncover not just differences but also attributes that customer’s
value. Make sure the differences are meaningful to customers, so that your
product is preferable to the others available.
Often it is the little things that count. Customers may choose your product
over a competitor’s identical product because they prefer your lecturers or
because you give them coffee while delivery of the courses. Pay attention to
details that could make a difference. A genuine customer-centric approach will
differentiate you from competitors. Show your commitment to customers and
ensure that staffs are emphatic. Review company systems and processes to
make them more customers focused.
Team Assignment – differentiate your product
Answering the following questions, try to identify the differential advantage of
your CE centre
1. Why should customers buy from us rather than from our
competitors?
2. What makes us different from our competitors?
3. How are we better than our rivals?
4. What strengths do we have that we can effectively capitalize on?
The right name helps to sell products and service. It bestows individuality and
personality, enabling customers to identify with your offerings and to get to
know them. It makes products and services tangible and real. Choose name
that enhance your company image and that are appropriate for the products
and its positioning in the marketplace.
The service attributes are e.g. friendless, creativity, courtesy, helpfulness and
knowledgeability.
Marketing strategy
A marketing strategy provides organisation with shared vision of the future. All
too often, an organisation will perform a marketing task, such a direct mail
shot, then sit back and see what happens. A strategic approach will ensure
that you maximise returns on your marketing spending and boost the profits of
your organisation.
During the creating of the marketing strategy the marketing manager should
proceed as follows:
1. create the team
2. review current situation
3. set objectives
4. plan action
5. implement strategy
6. review strategy
Setting objectives
Draw up your objectives carefully, because your entire marketing strategy will
be structured around them, and ensure that they are measurable so that you
can evaluate their success.
Short-term objective can be staging posts on the way towards fulfilling long-
term goals. Analyse your situation and then ask: “What if we do nothing?” Will
products become out of date? Will your competitors grow more powerful?
Spend time asking “what if?” to help you realize the effects of not keeping up
with customer needs and competitor activities. It can serve to spur action.
If you have devised a set of objectives around which to build your marketing
strategy, seek agreement for them across the organisation. Marketing is a
discipline that cuts through many departmental boundaries. Marketing activity
will have a knock-on effect in various parts of the operation so, for it to be
effective, you will need the support of colleagues. Ensure they understand the
need for these objectives and the impact they may have on their work.
Plan action - investigate constraints, such as time and money, and then
create a timetable of activity to give you a working marketing plan.
The activities on your marketing timetable should be manageable and
workable. The costs of not undertaking certain marketing activities, both in
missed opportunities and the effect on your reputation, should be taken into
consideration.
Look at your marketing ideas and work out the costs of each. Remember that
marketing involves meeting customer need at a profit. To be justified,
marketing activity should have a positive impact on the balance sheet.
Examine not only the costs but also the benefit. An advertising company may
cost a lot of money, but if it reaps profit amounting to several times its costs,
is it cheap.
The example of marketing plan:
Activity Priority Start date Completion Date
Organise lunch Medium
for top ten by the end of February
customers
Produce new brochure Mid-January end March
Update mailing list ready for end March
new brochure
Mail new brochure Early April
Implementing strategy
Review strategy
The world is not static. Things within your organisation or within your market
are likely to change over the time. If they do, you might need to redefine your
objectives. Review your objectives six-monthly or annually to check that you
are till on track.
Answering the following questions will help you evaluate the success of your
marketing strategy:
1. Have profits increased since the strategy was implemented?
2. Have we seen an increase in our customer base?
3. Have we attracted a greater number of orders, or larger individual
orders?
4. Has the number of product/service enquiries risen?
5. Has awareness of our organisation and its products or services
increased?
Team assignment - Assess your marketing ability
Answer the questions below. If your answer is “never: , mark Option 1, and so
on. Use the Analysis at the end of the questionnaire to identify your potential
weaknesses in the area of marketing.
OPTIONS:
1 Never
2 Occasionally
3 Frequently
4 Always
III. Our CE centre ensures that orders are processed swiftly as well
as accurately.
1 2 3 4
IV. Our CE center obtains customer information and use it to
influence decisions.
1 2 3 4
V. Our CE Centre set standards to ensure effective customer care.
1 2 3 4
VI. Our CE centre take action to make sure that every customer is
a satisfied customer.
1 2 3 4
VII. Our CE centre measure performance against the standards of
customer care.
1 2 3 4
VIII. Our CE center take the complains of customers very seriously.
1 2 3 4
IX. Our CE centre monitor the number of customer complaints that
we receive.
1 2 3 4
X. Our CE center tries to see if there is anything we can learn from
a customer’s complaints.
1 2 3 4
XI. Our CE center finds reasons to keep in touch with customers.
1 2 3 4
XII. Our CE center tries to turn one-off customers into regular ones.
1 2 3 4
XIII. Our CE center keeps a record of key customer contact.
1 2 3 4
XIV. Our CE centre asks customers whether they will recommend us
1 2 3 4
XV. Our CE centre shows customers that their business is value.
1 2 3 4
XVI. Our CE centre tries to find out why we have a lost a customer.
1 2 3 4
XVII. Our CE centre attempts to win back lost customers.
1 2 3 4
XVIII. Our CE centre is already looking for the new customers.
1 2 3 4
XIX. Our CE centre tries to nurture customer’s loyalty.
1 2 3 4
XX. Our CE centre seeks customer comment and feedback.
1 2 3 4
XXI. Our CE centre listens what customer say.
1 2 3 4
XXII. Our CE centre pay attention to the little details that make all
the difference.
1 2 3 4
XXIII. Our CE centre tries to add value to our services.
1 2 3 4
XXIV. Our CE center emphasizes benefits, not features.
1 2 3 4
XXV. Our CE centre use public relations techniques to boost
marketing effectiveness
1 2 3 4
XXVI. Our CE centre draws up a pricing strategy for every new
product marketed.
1 2 3 4
XXVII. Our CE centre set objectives for publicity campaigns.
1 2 3 4
XXVIII. Our CE centre carefully target mail shots.
1 2 3 4
XXIX. Our CE centre takes care to select the right envelope for direct
mail campaign.
1 2 3 4
XXX. Our CE centre tests mail shots to find the most successful
combination.
1 2 3 4
XXXI. Our CE centre measures the overall effectiveness of a publicity
campaign.
1 2 3 4
XXXII. Our CE centre keeps non-marketing colleagues informed of key
marketing activity.
1 2 3 4
ANALYSIS
32-64: try to take a more organised, planned, methodical, and measured
approach to improve your effectiveness
65-95: some of your marketing activity is a success, but you need to develop
your skills to become wholly effective
96-128: you have adopted a thoroughly professional strategic approach to
marketing and are running successful marketing campaigns. Keep up the good
work to stay ahead of the competition
Marketing in non-profit organizations
Non-profit organization attempt to achieve some other objectives than profit.
This does not mean that they are uninterested in income as they have to
generate cash to survive. However their primary goal is non – economic, e.g.
to provide education.
• Multiple publics
Most non-profit organization serve several groups or publics. The two broad
groups are donors , who may be individuals, trust , companies and
governmental bodies, and clients, who include audiences and beneficiaries.
The need is to satisfy both donors and clients, complicating marketing task.
For example a community association providing also the CE courses may be
partly funded by the local authority and partly by other donors (individuals or
companies) and partly by clients. To succeed all the groups must be satisfied.
• Public scrutiny
While all organization are subject to public scrutiny, public sector non-profit
organization are never far from public’s attention. The reason is that they are
publicity funded from taxes. This gives them extra newsworthiness as all tax-
payers are interested in how their money is being spent. They have to be
particularly careful that they do not become involved in controversy, which
can result in bed publicity.
Non-profit organization can usefully segment their target publics into donors
and clients (customers). Within each group, sub segments of individuals and
organization need to be identified. These will be the target for persuasive
communications, and the development of services. The need of each group
must be understood. For example the donors can judge which non-profit CE
centre to give the support n the basis of awareness and reputation, the
confidence that funds will not be wasted on excessive administration, and the
perceive worthiness of the cause. That is why the CE center needs not only to
promote itself but also to gain publicity for its cause. Its level of donor funding
will depend upon both of these factors. The brand name of CE centre is also
important (it has been discussed n previous parts).
The pricing god the services provided by non-profit organizations may not
follow the guidelines applicable to profit oriented pricing. For example the
price of CE curse organized by non-profit CE center for Gypsies may be held
low to encourage poor families to take advantage of this opportunity. Some
non-profit organization even provide free access to services.
Like most services, distribution systems for many non-profit organizations are
short, with production and consumption simultaneous. This is the case also of
education. Such organization have to think carefully about how to deliver their
services with the convenience that customers require. For example, although
the CE center is based in big city, over half of the courses for ethnic minorities
may be delivered in small villages around the city.
Product groups
A catalog number, especially for clothing, may group sizes and colors. When
ordering the product, the customer specifies size, color and other variables.[9]
A product line is "a group of products that are closely related, either because
they function in a similar manner, are sold to the same customer groups, are
marketed through the same types of outlets, or fall within given price
ranges."[10]
Many businesses offer a range of product lines which may be unique to a
single organization or may be common across the business's industry. In 2002
the US Census compiled revenue figures for the finance and insurance industry
by various product lines such as "accident, health and medical insurance
premiums" and "income from secured consumer loans".[11] Within the
insurance industry, product lines are indicated by the type of risk coverage,
such as auto insurance, commercial insurance and life insurance.[12]
Various classification systems for products have been developed for economic
statistical purposes. The North American Industry Classification System
(NAICS) classifies companies by their primary product [this is not even close to
true, NAICS is a production-oriented classification system, not a product-
oriented classification system – the NAFTA signatories are working on a system
that classifies products called NAPCS as a companion to NAICS [1]. The
European Union uses a "Classification of Products by Activity" among other
product classifications.[13] The United Nations also classifies products for
international economic activity reporting.[14]
The Aspinwall Classification System [15] [16]classifies and rates products
based on five variables:
1. Replacement rate (How frequently is the product repurchased?)
2. Gross margin (How much profit is obtained from each product?)
3. Buyer goal adjustment (How flexible are the buyers' purchasing habits with regard
to this product?)
4. Duration of product satisfaction (How long will the product produce benefits for
the user?)
5. Duration of buyer search behavior (How long will consumers shop for the
product?)
If you wish to create and maintain a strong brand presence, it can involve a lot
of design and marketing costs. A strong brand is memorable, but people still
need to be exposed to it, this often requires a lot of advertising and PR over a
long period of time, which can be very costly.
There are also costs involved with the creating of a brand image or logo
(Paying for a designer, printing new letterheads/business cards etc.), and
although most of these are only one off costs, they are still relatively large for
most small businesses.
The exposure of your brand can be left to word of mouth, this will save you
money, but will also greatly slow down the exposure your brand receives.
(ii) Impersonal
One of the main problems with many branded businesses is that they lose
their personal image. The ability to deal on a personal basis with customers is
one of the biggest advantages small business have, and poorly designed
branding could give customers the impression that your business is losing its
personal touch.
Every brand has a certain image to potential customers, and part of that
image is about what products or services you sell. If you are known for selling
just one product, and you want to sell another product, will you be able to do
so effectively?
If you sell computers, would your brand name be suitable for selling vacuum
cleaners? If your brand is focused too strongly on one product, it can limit your
ability to sell other products.
(iv) Timescale
The process of creating a brand will usually take a long period of time. As well
as creating a brand and updating your signs and equipment (e.g. Stationary,
vehicles etc…), you need to expose it to your potential customers.
It is commonly shown that people need to see an advert at least three times
before they absorb it, which means you will need to advertise and promote the
brand for a considerable amount of time before it will become well known.
Advantages :
• Physical protection - The objects enclosed in the package may require protection
from, among other things, shock, vibration, compression, temperature[3], etc.
• Barrier protection - A barrier from oxygen, water vapor, dust, etc., is often
required. Permeation is a critical factor in design. Some packages contain desiccants or Oxygen
absorbers to help extend shelf life. Modified atmospheres [4] or controlled atmospheres are also
maintained in some food packages. Keeping the contents clean, fresh, sterile[5] and safe for the
intended shelf life is a primary function.
• Containment or agglomeration - Small objects are typically grouped together in
one package for reasons of efficiency. For example, a single box of 1000 pencils requires less
physical handling than 1000 single pencils. Liquids, powders, and granular materials need
containment.
• Information transmission - Packages and labels communicate how to use,
transport, recycle, or dispose of the package or product. With pharmaceuticals, food, medical, and
chemical products, some types of information are required by governments. Some packages and
labels also are used for track and trace purposes.
• Marketing - The packaging and labels can be used by marketers to encourage
potential buyers to purchase the product. Package graphic design and physical design have been
important and constantly evolving phenomenon for several decades. Marketing communications
and graphic design are applied to the surface of the package and (in many cases) the point of sale
display.
• Security - Packaging can play an important role in reducing the security risks of
shipment. Packages can be made with improved tamper resistance to deter tampering and also can
have tamper-evident[6] features to help indicate tampering. Packages can be engineered to help
reduce the risks of package pilferage: Some package constructions are more resistant to pilferage
and some have pilfer indicating seals. Packages may include authentication seals and use security
printing to help indicate that the package and contents are not counterfeit. Packages also can
include anti-theft devices, such as dye-packs, RFID tags, or electronic article surveillance[7] tags
that can be activated or detected by devices at exit points and require specialized tools to
deactivate. Using packaging in this way is a means of loss prevention.
• Convenience - Packages can have features that add convenience in distribution,
handling, stacking, display, sale, opening, reclosing, use, dispensing, and reuse.
• Portion control - Single serving or single dosage packaging has a precise amount
of contents to control usage. Bulk commodities (such as salt) can be divided into packages that are
a more suitable size for individual households. It is also aids the control of inventory: selling sealed
one-liter-bottles of milk, rather than having people bring their own bottles to fill themselves.
• Primary packaging is the material that first envelops the product and holds it. This
usually is the smallest unit of distribution or use and is the package which is in direct contact with
the contents.
• Secondary packaging is outside the primary packaging, perhaps used to group
primary packages together.
• Tertiary packaging is used for bulk handling, warehouse storage and transport
shipping. The most common form is a palletized unit load that packs tightly into containers.
Many types of symbols for package labeling are nationally and internationally
standardized. For consumer packaging, symbols exist for product
certifications, trademarks, proof of purchase, etc. Some requirements and
symbols exist to communicate aspects of consumer use and safety. Examples
of environmental and recycling symbols include: Recycling symbol, Resin
identification code (below), and Green Dot (symbol).
Bar codes (below), Universal Product Codes, and RFID labels are common to
allow automated information management in logistics and retailing. Country of
Origin Labeling is often used.
"Print & Apply" corner wrap UCC (GS1-128) label application to a pallet load
Technologies related to shipping containers are identification codes, bar
codes, and electronic data interchange (EDI). These three core technologies
serve to enable the business functions in the process of shipping containers
throughout the distribution channel. Each has an essential function:
identification codes either relate product information or serve as keys to other
data, bar codes allow for the automated input of identification codes and other
data, and EDI moves data between trading partners within the distribution
channel.
Elements of these core technologies include UPC and EAN item identification
codes, the SCC-14 (UPC shipping container code), the SSCC-18 (Serial Shipping
Container Codes), Interleaved 2-of-5 and UCC/EAN-128 (newly designated
GS1-128) bar code symbologies, and ANSI ASC X12 and UN/EDIFACT EDI
standards.
Small parcel carriers often have their own formats. For example, United Parcel
Service has a MaxiCode 2-D code for parcel tracking.
RFID labels for shipping containers are also increasing in usage. A Wal-Mart
division, Sam's Club, has also moved in this direction and is putting pressure
on its suppliers for compliance.[8]
Shipments of hazardous materials or dangerous goods have special
information and symbols (labels, plackards, etc.) as required by UN, country,
and specific carrier requirements. Two examples are below:
Do Keep away
not use handfrom
Fragile
This way
sunlight up
Do notas
clamp as
indicated
Keep indicated
away from
Centre of gravity
Sales promotion is one of the four aspects of promotional mix. (The other
three parts of the promotional mix are advertising, personal selling, and
publicity/public relations.) Media and non-media marketing communication are
employed for a pre-determined, limited time to increase consumer demand,
stimulate market demand or improve product availability. Examples include:
• contests
• point of purchase displays
• rebate (marketing)
• free travel, such as free flights
The process
1. Idea Generation is often called the "fuzzy front end" of the NPD process
o Ideas for new products can be obtained from basic research using a SWOT
analysis (Strengths, Weaknesses, Opportunities & Threats), Market and consumer trends,
company's R&D department, competitors, focus groups, employees, salespeople, corporate spies,
trade shows, or Ethnographic discovery methods (searching for user patterns and habits) may also
be used to get an insight into new product lines or product features.
o Idea Generation or Brainstorming of new product, service, or store concepts
- idea generation techniques can begin when you have done your OPPORTUNITY ANALYSIS to
support your ideas in the Idea Screening Phase (shown in the next development step).
2. Idea Screening
o The object is to eliminate unsound concepts prior to devoting resources to
them.
o The screeners should ask several questions:
Will the customer in the target market benefit from the product?
What is the size and growth forecasts of the market segment/target
market?
What is the current or expected competitive pressure for the product
idea?
What are the industry sales and market trends the product idea is
based on?
Is it technically feasible to manufacture the product?
Will the product be profitable when manufactured and delivered to the
customer at the target price?
3. Concept Development and Testing
o Develop the marketing and engineering details
Investigate intellectual property issues and search patent data bases
Who is the target market and who is the decision maker in the
purchasing process?
What product features must the product incorporate?
What benefits will the product provide?
How will consumers react to the product?
How will the product be produced most cost effectively?
Prove feasibility through virtual computer aided rendering, and rapid
prototyping
What will it cost to produce it?
o Testing the Concept by asking a sample of prospective customers what they
think of the idea. Usually via Choice Modelling.
4. Business Analysis
o Estimate likely selling price based upon competition and customer feedback
o Estimate sales volume based upon size of market and such tools as the
Fourt-Woodlock equation
o Estimate profitability and breakeven point
5. Beta Testing and Market Testing
o Produce a physical prototype or mock-up
o Test the product (and its packaging) in typical usage situations
o Conduct focus group customer interviews or introduce at trade show
o Make adjustments where necessary
o Produce an initial run of the product and sell it in a test market area to
determine customer acceptance
6. Technical Implementation
o New program initiation
o Finalize Quality management system
o Resource estimation
o Requirement publication
o Publish technical communications such as data sheets
o Engineering operations planning
o Department scheduling
o Supplier collaboration
o Logistics plan
o Resource plan publication
o Program review and monitoring
o Contingencies - what-if planning
7. Commercialization (often considered post-NPD)
o Launch the product
o Produce and place advertisements and other promotions
o Fill the distribution pipeline with product
o Critical path analysis is most useful at this stage
8. New Product Pricing
o Impact of new product on the entire product portfolio
o Value Analysis (internal & external)
o Competition and alternative competitive technologies
o Differing value segments (price, value, and need)
o Product Costs (fixed & variable)
o Forecast of unit volumes, revenue, and profit
What screening criteria is your company using to separate ideas into good and
bad? Are you satisfied with their ability to predict product success? Most likely,
you are not satisfied because only few of the ideas which pass these screening
tests ever become market and profitability hits.
The purpose of screening is to spot and drop poor ideas as early as possible.
The cost of product development rises substantially at each successive
development stage. When products reach later stages, management feels that
it has invested so much in development that the product should be launched
to recoup some of the investment. But this is letting good money chase bad
money. The practical solution is to prevent poor product ideas from getting
this far.
Even if a given idea appears to have potential, a company has to decide
whether it fits well with its mission, objectives, strategies, core competencies
and resources. A product-idea rating device might include a checklist of
specific factors and their relative weight, the company's competence level in
each of these factors, and an overall rating for the company's ability to
develop and launch a new product successfully.
In the screening stage, companies need to devise and implement effective
methodologies for avoiding two types of errors.
A DROP-error occurs when the company dismisses an otherwise good idea.
Too many DROP-errors suggest that an organization is too conservative.
A GO-error occurs when the company fails to catch a poor idea before it
moves into development and commercialization.
You can screen and qualitiatively determine the technical and business merit
of your new product idea by providing answers to the following questions for
each of the products that you would like to develop and commercialize.
1. What compelling evidence do you have which clearly demonstrates that you
are the sole inventor of the subject new product idea? Please provide copies of
the recorded idea from your notebook and/or other document.
2. Which Unmet needs is the product going to satisfy? Why should a customer
buy this product and not that of competition (if it exists)?
3. Is there sufficient data to substantiate that these are truly Unmet needs for
the customer?
4. Are there any barriers to entry for the new product, i.e. utility or design
patents; trademarks, etc., etc.? If not, how easy it might be for someone to
reverse engineer and copy the new product?
Note: Please provide us with complete copies of any patents or Provisional
Patent Applications (PPA) you might have.
5. Which product features will satisfy these unmet needs? How?
6. What product claims will be made? Can these claims be substantiated
through scientific and other compelling evidence?
7. Are design criteria established for the product?
8. Have preliminary product, component and packaging specifications been
developed? Do you have any product models or prototypes made?
9. What type of testing will be done in order to evaluate the soundness of the
product design?
10. How long should the product be expected to last?
11. Does the new product have sales potential in the targeted market? If so,
provide numbers, etc.
12. Who is the competition?
13. How can they affect the new product's sales?
14. What are the most effective channels of distribution?
15. What are the prices of own and competitive, similar products? What is the
expect net profit (after taxes) per each product sold?
In economics
The break even point is also the point on a chart indicating the time when
something has broken even, and is a general term for not having gained or
lost something in a process.
In nuclear fusion research, the term breakeven refers to a fusion energy gain
factor equal to unity, this is also known as the Lawson criterion.
The notion can also be found in more general phenomena, such as percolation,
and is rather similar to the critical threshold. In energy, the breakeven point is
the point where usable energy gotten from a process exceeds the input
energy.
In computer science, the (less usual) term refers to a point in the life cycle of a
programming language where the language can be used to code its own
compiler or interpreter. This is also called self-hosting.
In medicine, it is a postulated state when the advances of medicine permit
every year an increase of one year or more of the life expectancy of the living,
therefore leading to medical immortality[2](barring accidental death).
The break-even point for a product is the point where total revenue received
equals the total costs associated with the sale of the product (TR = TC).[1] A
break-even point is typically calculated in order for businesses to determine if
it would be profitable to sell a proposed product, as opposed to attempting to
modify an existing product instead so it can be made lucrative. Break even
analysis can also be used to analyze the potential profitability of an
expenditure in a sales-based business.
break even point (for output) = fixed cost / contribution per unit
break even point (for sales) = fixed cost / contribution (pu) * selling price (pu)
Margin of Safety
By inserting different prices into the formula, you will obtain a number of break
even points, one for each possible price charged. If the firm changes the
selling price for its product, from $2 to $2.30, in the example above, then it
would have to sell only (1000/(2.3 - 0.6))= 589 units to break even, rather
than 715.
To make the results clearer, they can be graphed. To do this, you draw the
total cost curve (TC in the diagram) which shows the total cost associated with
each possible level of output, the fixed cost curve (FC) which shows the costs
that do not vary with output level, and finally the various total revenue lines
(R1, R2, and R3) which show the total amount of revenue received at each
output level, given the price you will be charging.
The break even points (A,B,C) are the points of intersection between the total
cost curve (TC) and a total revenue curve (R1, R2, or R3). The break even
quantity at each selling price can be read off the horizontal, axis and the break
even price at each selling price can be read off the vertical axis. The total cost,
total revenue, and fixed cost curves can each be constructed with simple
formulae. For example, the total revenue curve is simply the product of selling
price times quantity for each output quantity. The data used in these formulae
come either from accounting records or from various estimation techniques
such as regression analysis.
[edit] Limitations
• Break-even analysis is only a supply side (i.e. costs only) analysis, as it tells you
nothing about what sales are actually likely to be for the product at these various prices.
• It assumes that fixed costs (FC) are constant. Although, this is true in the short run,
an increase in the scale of production is likely to cause fixed costs to rise.
• It assumes average variable costs are constant per unit of output, at least in the
range of likely quantities of sales. (i.e. linearity)
• It assumes that the quantity of goods produced is equal to the quantity of goods
sold (i.e., there is no change in the quantity of goods held in inventory at the beginning of the
period and the quantity of goods held in inventory at the end of the period).
• In multi-product companies, it assumes that the relative proportions of each
product sold and produced are constant (i.e., the sales mix is constant).