Internal Databases Always Give Information About Opportunities And Problems Help To Plan Marketing Programs And Evaluate

Performance, Being A Marketing Manager Of Any Fast Moving Consuming Goods (FMCG), What Information Would You Like To Have In Your Internal Database? How This Information Would Be Used?
The Company Analyses the Following Database and apply The Problem Solving / Decision Making Approach / Finalizes the Plan. 1. External Assessment Areas for opportunities and threats * Markets [what is the market situation, which is forcing the change requirements *Customers [how can service the customer -internal / external -better . * Industry [is the industry trend] * Competition [is it the competitive situation *Factors of business [causing the change] * Technology [is it technology change] 2. Internal Assessment Areas for strengths, weaknesses, and barriers to success ORGANIZATION DIMENSIONS *Culture [is the working culture change] * Organization [is the organization demanding change] * Systems [is it the systems change] * Management practices [change in managemement process] OTHER KEY DIMENSIONS *Cost-efficiency [is it for cost efficiency] * Financial performance [is it for financial performance improvement] * Quality [is it for quality performance improvement *Service [is it for service performance improvement *Technology [is it for technology performance improvement * Market segments [is it for sales performance improvement * Innovation [is it for performance improvement *new products [is it for new product performance improvement *Asset condition [is it for financial performance improvement *productivity [is it for financial performance improvement 3. Source Strategic objectives and programs The critical issues that must be addressed if the organization

Question # 1

Is to succeed Strengths Weaknesses Opportunities Threat PRIORITY ISSUE FROM THE ABOVE , DETERMINE THE CORE ISSUES WHICH NEEDS TO SOLVED WITH YOUR INVESTMENT. STRATEGIC PROGRAMS FROM THE ABOVE CORE ISSUES, DETERMINE YOURSTRATEGIC PROGRAMS. MISSION STATEMENT VISION STATEMENT Youre CORE PURPOSE Youre CORE OBJECTIVES Your Core markets; Your CORE strategic thrusts. NOW THE QUESTION IS -BASED ON THE ABOVE WHAT ARE THE STRATEGIES NEEDED. 1. Basic question: How is organizational direction determined? Every organization takes on some direction, in terms of what customers/clients it serves and what functions it performs for these customers. This direction is often called its purpose, Mission or realized strategy. An organization's mission is a set of statements that define the exchange relationship between the organization and its stakeholders or claimants. More specifically a mission defines the population served and the function it fulfills or the need it satisfies for that claimant. This direction, or mission, may be the result of a deliberate planning process or it may emerge as the result of a set of incremental decisions. THIS ORGANIZATION Realized Strategies are the result of combinations of Purely Deliberate and Purely Emergent Strategies. 1. THIS ORGANIZATIONS Deliberate StrategyThis process starts with an analysis of a company's current mission and strategies. The most popular tool used in this process is the SWOT (Strengths, weaknesses, opportunities, threats) model. The external environment in terms of opportunities and threats, is analyzed by examining threats to the company's current position and new

opportunities (new customers, new applications, unfulfilled customers needs, etc.). The analysis proceeds by examining the company's internal environment in terms of its strengths and weakness. A mission and competitive strategy is formulated that matches opportunities with strengths and plans are made to strengthen areas of weakness. The next step is to develop functional strategies that support the overall business level competitive strategy. Marketing, Human Resource, Financial, Operations, Information Systems, and R & D strategies are developed that support the business unit strategy. Finally, a control system (organizational structure) is designed to insure that operational decisions are made consistent with the business and functional strategies. 2. THIS ORGANIZATIONS Emergent Strategy - Emergent Strategies are the result of incremental decision making that achieve some degree of consistency over time and launch the organization into a direction. When decisions are made or problems are solved, they have potential strategic impact. Levels of Strategy 1. Mission/Domain- Before identification of strategy can occur, one must clearly identify the mission or domain of the organization. The domain of an organization consists of the population it serves and the functions it performs (satisfies) for that population. Sometimes the domain is defined in terms of products or services offered (rather than functions performed), but this tends to be more limiting because it defines the mission more in terms of means rather than ends. 2. Corporate Level Strategy. 1. Vertical Integration STRATEGY Forward Integration- Gaining ownership or control over distributors. [TAKE OVER DISTRIBUTORS IN UNREPRESENTED AREAS. 2. Horizontal Integration STRATETGY - Seeking ownership or control over competitors [BOUGHT OVER ONE SMALL /BUT DYNAMIC COMPETITORS] 3. Market Penetration STRATEGY - Seeking increased market share for present products through greater marketing efforts 4. Market Development STRATEGY - Introducing present products in new markets

5. Product Development STRATEGY - Seeking increased sales by improving present products 6. Diversification STRATEGY 1. Concentric- Adding new or related product lines 2. Conglomerate- Adding new, but unrelated product lines 3. Competitive or Business Level Strategy - How should we compete in our chosen business (as)? Competitive strategies involve determining the basis of costumer or client decision making. Generally, they are based on some combination of quality, service, cost, time, and quality of the experience. 1. Cost Leadership Strategies - With this strategy you are competing on price. Your various functional strategies all emphasize cost reduction. This is an effective strategy when the market is comprised of many price sensitive buyers, when there are few ways to achieve product differentiation, when buyers do not care much about differences from brand to brand, or when there are a large number of buyers with significant bargaining power. 2. Differentiation Strategies - Differentiation strategies rely on some basis of product differentiation such as flexibility, specific features, service, time and availability, low maintenance, etc. as the basis for competition. Product development and market research are generally necessary components of a differentiation strategy. Generally, a successful differentiation strategy allows a firm to charge a higher price for its product. Organizations generally need strong R & D departments with strong coordination between R & D and marketing departments. Human Resource strategies must place emphasis maintaining a competitive skill base and motivating employees toward the basis for differentiation. 3. Focus or Niche Strategies - A successful focus strategy depends upon an industry segment that is of sufficient size, has good growth potential, and it not crucial to the success of other major competitors. Focus strategies are pursued in limited markets in conjunction with cost leadership and/or differentiation strategies. Focus strategies are the most effective when consumers have distinctive preferences or requirements and when rival firs are not attempting to specialize in the same target segment. 4. Functional Strategies

- How do organizational functional units contribute to the business level strategies? How can functional strategies be integrated to achieve competitive advantage? 1. Marketing Strategies- How do we communicate our strengths to the customer? How do we identify customer requirements and changes in customer requirements? 2. Human Resource Strategies- How do we recruit, train, develop, motivate, compensate, and place employees so that behavior is directed toward the competitive strategy and works to build competitive advantage? 3. Financial Strategies- How do we secure financial resources necessary to carry our competitive strategy? 4. Operations Strategies- How do we design our processes to produce products and/or service that meet customer requirements as specified in our strategy? 5. Information System Strategies- How do we provide decision makers, at all levels, with information necessary to make decisions consistent with strategy? 6. Technological (R & D) Strategies- How do we develop products consistent with customer requirements as specified in strategy? Strategic control links the internal business environment and the external environment. Give example in support of your of answer. Three fundamental perspectives-strategic controls, continuous improvement, and the balanced scoreboard-provide the basis for designing strategy control systems. Strategic controls are intended to steer the company toward its long-term strategic goals. - Premise controls, -implementation controls, -strategic surveillance, and -special alert controls are types of strategic control. All four types are designed to meet top management's needs to track the strategy as it is being implemented, to detect underlying problems, and to make necessary adjustments. These strategic controls are linked to the environmental assumptions and the key operating

requirements necessary for successful strategy implementation. Everpresent forces of change fuel the need for and focus of strategic control. Operational control systems require systematic evaluation of performance against predetermined standards or targets. A critical concern here is identification and evaluation of performance deviations, with careful attention paid to determining the underlying reasons for and strategic implications of observed deviations before management reacts. Some firms use trigger points and contingency plans in this process. The "quality imperative" of the last 20 years has redefined global competitiveness to include reshaping the way many businesses approach strategic and operational control. What has emerged is a commitment to continuous improvement in which personnel across all levels in an organization define customer value, identify ways every process within the business influences customer value, and seek continuously to enhance the quality, efficiency, and responsiveness with which the processes, products, and services are created and supplied. This includes attending to internal as well as external customers. The "balanced scorecard" is a control system that integrates strategic goals, operating outcomes, customer satisfaction, and continuous improvement into an ongoing strategic management system. THE FOLLOWING CONTROLS - Premise controls, -implementation controls, TO TRACK /MONITOR/ ACTION PLANNING BUSINESS INTERNALS. HOW THE COMPANY MAXIMIZES THE STRENGTHS AS PART OF BUSINESS STRATEGY Criteria examples Advantages of proposition? Capabilities? Competitive advantages? USP's (unique selling points)? Resources, Assets, People? Experience, knowledge, data? Financial reserves, likely returns? Marketing - reach, distribution, awareness? Innovative aspects? Location and geographical? Price, value, quality? Accreditations, qualifications, certifications? Processes, systems, IT, communications?

Cultural, attitudinal, behavioral? Management cover, succession? Philosophy and values? HOW THE COMPANY OVERCOMES THE WEAKNESSES AS PART OF BUSINESS STRATEGY Criteria examples Disadvantages of proposition? Gaps in capabilities? Lack of competitive strength? Reputation, presence and reach? Financials? Own known vulnerabilities? Timescales, deadlines and pressures? Cash flow, start-up cash-drain? Continuity, supply chain robustness? Effects on core activities, distraction? Reliability of data, plan predictability? Morale, commitment, leadership? Accreditations, etc? Processes and systems, etc? Management cover, succession HOW THE COMPANY TAKES ADVANTAGE OF OPPORTUNITIES AS PART OF BUSINESS STRATEGY Criteria examples Market developments? Competitors' vulnerabilities? Industry or lifestyle trends? Technology development and innovation? Global influences? New markets, vertical, horizontal? Niche target markets? Geographical, export, import? New USP's? Tactics: e.g., surprise, major contracts? Business and product development? Information and research? Partnerships, agencies, distribution? Volumes, production, economies? Seasonal, weather, fashion influences? THE

HOW THE COMPANY MANAGES THE THREATS AS PART OF BUSINESS STRATEGY Criteria examples Political effects? Legislative effects? Environmental effects? IT developments? Competitor intentions - various? Market demand? New technologies, services, ideas? Vital contracts and partners? Sustaining internal capabilities? Obstacles faced? Insurmountable weaknesses? Loss of key staff? Sustainable financial backing? Economy - home, abroad? Seasonality, weather effects? THE FOLLOWING CONTROLS -strategic surveillance, and -special alert controls TO TRACK /MONITOR/ ACTION PLANNING BUSINESS EXTERNALS Political (incl. Legal) -Environmental regulations and protection [what are the government regulations/ protection laws that must be observed ] -Tax policies what tax hinder the business and what taxes incentives are available] -International trade regulations and restrictions [Does the government encourage exports / with high tariffs on imports] -Contract enforcement law/Consumer protection [Does the government enforce on consumer protection] -Employment laws]

[Is the government permits?]

encouraging skilled immigrants with temp.

-Government organization / attitude [ does the government have a very positive attitude towards this industry] -Competition regulation [Are there regulation for limiting competition] -Political Stability [Politically, does the government government?] -Safety regulations [ has the government regulations] have a very stable

adopted some of the modern safety

Economic -Economic growth [ what is the economic growth rate / what are the reasons ] -Interest rates & monetary policies [ are the interest rates under control / is there a sound monetary policies] -Government spending [Is government spending is significant and is it under control] -Unemployment policy [What are the employment / unemployment policies of the government?] -Taxation [Has the taxation encouraged the industry?]

-Exchange rates [ is there well managed exchange controls and is it helping the industry] -Inflation rates [Is the inflation well under control?] -Stage of the business cycle [Is your industry is on the growth pattern]

-Consumer confidence [Is the consumer confidence is high/ strong and if not, why] Social -Income distribution [Is there balanced income distribution policy] -Demographics, Population growth rates, Age distribution [What is population growth and why] -Labor / social mobility [What are the labor policies and is there labor mobility] -Lifestyle changes [ are there significant lifestyle changes modernization/ why ] taking place--more

-Work/career and leisure attitudes [ are the population career minded and are seeking better lifestyle] -Education [ what are the education policies / is it successful ] -Fashion, hypes [Are the people becoming fashion conscious] -Health consciousness & welfare, feelings on safety [Are the people becoming health consciousness?] -Living conditions [Is the living conditions improving fast and spreading rapidly] Technological Government research spending [Is the government spending on research and development?] Industry focus on technological effort [are the industries focused on using improved technology] New inventions and development [ are new inventions being encouraged for developments] Rate of technology transfer

[ is the rate of technology transfer is speeding up ] (Changes in) Information Technology [ is the information technology rapidly moving and is there government support] (Changes in) Internet [ is the internet usage rapidly increasing and why]

(Changes in) Mobile Technology [Is the Mobile technology rapidly developing and is there government support] THE CONTROLS FOR ANY FOLLOWING ORGANIZATION ARE THE

-EFFECTIVE ORGANIZATION STRUCTURE -MANAGEMENT CONTROLS AT ALL LEVELS *MARKETING MANAGEMENT *SALES MANAGEMENT *SUPPLY MANAGEMENT *DISTRIBUTION MANAGEMENT ETC -BUDGETORY CONTROLS -AUTHORIZATIONS CONTROLS -INVENTORY CONTROLS--RAW MATERIALS -INVENTORY CONTROLS --FINISHED PRODUCTS -QUALITY CONTROLS -PROCUREMENT CONTROLS -DEBT CONTROLS -SALES/ MARKETING EXPENSES CONTROL -PERSONNEL CONTROL -MONTHLY PERFORMANCE REVIEW AGAINST BUDGET -HALF YEARLY BUSINESS AUDITING IN ORGANIZATION, THEY HAVE INTEGRATED THE CONTROL SYSTEMS INTO PLANNING, SO THAT IT HELPS -TO MEASURE THE DEVIATIONS -TO STUDY THE VARIANCES -TO TAKE APPROPRIATE ACTIONS.

Management planning and control process" P .PLANNING-----------------C.CONTROL [c1.establish standards] P1.establishing objectives. P2.determine detailed activities. p3.delegation P4.schedule tasks P5.allocate resources P6.communication and coordination P7.provide incentives C2.measure and compare. C3.evaluate results. C4.feedback and coach C5.take corrective action. The above schematic shows the important interrelationships between planning and control. As you can see, the control process does not begin after the entire planning process ends, as most managers believe. After objectives are set in the first step of the planning process, appropriate standards should be developed for them. Standards are units of measurement established to serve as a reference base and are useful in determining time lines, sequences of activities, scheduling, and allocation of resources. For example, if objectives are set and work is planned for 18 people on an assembly line, standards or reasonable expectations of performance from each person then need to be clearly established. The second significant interaction between planning and control occurs with the final step of the control process-taking corrective action. This can take several forms, but two of the most effective are to change the objectives or alter the plan. Managers dislike doing either; but if a positive motivational climate is to be established, these ought to be the first two corrective actions attempted. Objectives and standards are based on assumptions, but if these assumptions prove inaccurate, then objectives and standards require alteration. Thus sales quotas assigned on the premise of a booming economy can certainly be altered if, as is often the case, the economy turns sour. Likewise, if the assumptions are accurate and objectives and standards have not been met, then it is possible that the plan developed was inadequate and needs to be changed. Controls are to be an integral part of any organization's financial and business policies and procedures. Controls consists of all the

measures taken by the organization for the purpose of; (1) protecting its resources against waste, fraud, and inefficiency; (2) ensuring accuracy and reliability in accounting and operating data; (3) securing compliance with the policies of the organization; and (4) evaluating the level of performance in all organizational units of the organization. Controls are simply good business practices. 1. Responsibility Everyone within the COMPANY has some role in controls. The roles vary depending upon the level of responsibility and the nature of involvement by the individual. The Board of President and senior executives establish the presence of integrity, ethics, competence and a positive control environment. The department heads have oversight responsibility for controls within their units. Managers and supervisory personnel are responsible for executing control policies and procedures at the detail level within their specific unit. Each individual within a unit is to be cognizant of proper internal control procedures associated with their specific job responsibilities. The Internal Audit role is to examine the adequacy and effectiveness of the company internal controls and make recommendations where control improvements are needed. Since Internal Auditing is to remain independent and objective, the Internal Audit Office does not have the primary responsibility for establishing or maintaining internal controls. However, the effectiveness of the internal controls are enhanced through the reviews performed and recommendations made by Internal Auditing. 2. Elements of Internal Control Internal control systems operate at different levels of effectiveness. Determining whether a particular internal control system is effective is a judgment resulting from an assessment of whether the five components - Control Environment, Risk Assessment, Control Activities, Information and Communication, and Monitoring - are present and functioning. Effective controls provide reasonable assurance regarding the accomplishment of established objectives. A. Control Environment The control environment, as established by the organization's administration, sets the tone of THE COMPANY and influences the control consciousness of its people. MANAGERS of each department, area or activity establish a local control environment. This is the foundation for all other components of internal control, providing discipline and structure. Control environment factors include: Integrity and ethical values;

The commitment to competence; Leadership philosophy and operating style; The way management assigns authority and responsibility, and organizes and develops its people; Policies and procedures. B. Risk Assessment Every entity faces a variety of risks from external and internal sources that must be assessed. A precondition to risk assessment is establishment of objectives, linked at different levels and internally consistent. Risk assessment is the identification and analysis of relevant risks to achievement of the objectives, forming a basis for determining how the risks should be managed. Because economics, regulatory and operating conditions will continue to change, mechanisms are needed to identify and deal with the special risks associated with change. Objectives must be established before MANAGERS can identify and take necessary steps to manage risks. Operations objectives relate to effectiveness and efficiency of the operations, including performance and financial goals and safeguarding resources against loss. Financial reporting objectives pertain to the preparation of reliable published financial statements, including prevention of fraudulent financial reporting. Compliance objectives pertain to laws and regulations which establish minimum standards of behavior. The process of identifying and analyzing risk is an ongoing process and is a critical component of an effective internal control system. Attention must be focused on risks at all levels and necessary actions must be taken to manage. Risks can pertain to internal and external factors. After risks have been identified they must be evaluated. Managing change requires a constant assessment of risk and the impact on internal controls. Economic, industry and regulatory environments change and entities' activities evolve. Mechanisms are needed to identify and react to changing conditions. C. Control Activities Control activities are the policies and procedures that help ensure management directives are carried out. They help ensure that necessary actions are taken to address risks to achievement of the entity's objectives. Control activities occur throughout the organization, at all levels, and in all functions. They include a range of activities as diverse as approvals, authorizations, verifications, reconciliations, reviews of operating performance, security of assets and segregation of duties. Control activities usually involve two elements: a policy establishing what should be done and procedures to effect the policy. All policies must be implemented thoughtfully, conscientiously and consistently.

D. Information and Communication Pertinent information must be identified, captured and communicated in a form and time frame that enables people to carry out their responsibilities. Effective communication must occur in a broad sense, flowing down, across and up the organization. All personnel must receive a clear message from top management that control responsibilities must be taken seriously. They must understand their own role in the internal control system, as well as how individual activities relate to the work of others. They must have a means of communicating significant information upstream. E. Monitoring Control systems need to be monitored - a process that assesses the quality of the system's performance over time. Ongoing monitoring occurs in the ordinary course of operations, and includes regular management and supervisory activities, and other actions personnel take in performing their duties that assess the quality of internal control system performance. The scope and frequency of separate evaluations depend primarily on an assessment of risks and the effectiveness of ongoing monitoring procedures. Internal control deficiencies should be reported upstream, with serious matters reported immediately to top administration and governing boards. Control systems change over time. The way controls are applied may evolve. Once effective procedures can become less effective due to the arrival of new personnel, varying effectiveness of training and supervision, time and resources constraints, or additional pressures. Furthermore, circumstances for which the internal control system was originally designed also may change. Because of changing conditions, management needs to determine whether the internal control system continues to be relevant and able to address new risks. Components of the Control Activity 1. Internal controls rely on the principle of checks and balances in the workplace. The following components focus on the control activity: 2. Personnel need to be competent and trustworthy, with clearly established lines of authority and responsibility documented in written job descriptions and procedures manuals. Organizational charts provide a visual presentation of lines of authority and periodic updates of job descriptions ensures that employees are aware of the duties they are expected to perform.

3. Authorization Procedures need to include a thorough review of supporting information to verify the propriety and validity of transactions. Approval authority is to be commensurate with the nature and significance of the transactions and in compliance with COMPANY policy. 4. Segregation of Duties reduces the likelihood of errors and irregularities. An individual is not to have responsibility for more than one of the three transaction components: authorization, custody, and record keeping. When the work of one employee is checked by another, and when the responsibility for custody for assets is separate from the responsibility for maintaining the records relating to those assets, there is appropriate segregation of duties. This helps detect errors in a timely manner and deter improper activities; and at the same time, it should be devised to prompt operational efficiency and allow for effective communications. 5. Physical Restrictions are the most important type of protective measures for safeguarding COMPANY assets, processes and data. 6. Documentation and Record Retention is to provide reasonable assurance that all information and transactions of value are accurately recorded and retained. Records are to be maintained and controlled in accordance with the established retention period and properly disposed of in accordance with established procedures. 7. Monitoring Operations is essential to verify that controls are operating properly. Reconciliations, confirmations, and exception reports can provide this type of information. 3. Recently a very popular strategic alliance took place. Take the case of that alliance and analyze it looking at the benefits of strategic alliances. COMPANIES look for like-minded companies that understand The complementary value and content solutions can bring to their customers. By combining each companys products and services, turn-key solutions Can be developed to efficiently address market needs and tap into new technologies. Ultimately the Strategic Alliance Program really means one thing:

by participating in the alliance program your company has the potential to increase its revenue and grow its sales and business opportunities. The Strategic Alliance Program offers excellent opportunities -regardless of company type and size by enabling companies to: Expand the market opportunity for your business in the fast-growing collaboration market space Increase your company's knowledge base through access to collaboration experts Partner with a proven, x-year leader in the content space. ALLIANCE goal is to ensure the success of our combined efforts to grow our businesses together by identifying and acting on ways to increase mutual revenue opportunities, including: Introductions to new customers and new markets Issuance of joint press releases Development of joint marketing collateral Joint participation in tradeshows Speaking opportunities at PUBLIC symposia Preparation of joint proposals Logo placement on corporate web site Strategic alliances are common to any industry. Their presence is felt quite significantly in the Airline industry. 1. JETAIRWAYS ---KLM The guiding factors will be several that include formation of Blocs, resource scarcity, limits on foreign ownership and limitations imposed by Bilateral agreements. They further forwarded the argument that to be a part of an Alliance will become a necessity for an airline to survive in the future. 2. TOYOTA --- GM -share -share -share -share -share auto technology. the design facilities the 6 cycle / 8 cycle alloy engine manufacturing common parts supply distribution points.

3. NIIT ---MICROSOFT -NIIT IS THE CERTIFICATION / TRAINING AGENT FOR MICROSOFT IN INDIA.

WHAT DO YOU UNDERSTAND BY DIFFERENTIATION STRATEGY? DISCUSS BY FORMULATING A DIFFERENTIATION STRATEGY FOR A COMPANY, WHICH IS INTO FMCG SECTOR. Differentiation Strategy Defined Your differentiation strategy is an integrated set of action designed to produce or deliver goods or services that customers perceive as being different in ways that are important to them. It calls for you to sell nonstandard zed products to customers with unique needs. Why Differentiate? The concept of being unique or different is far more important today than it was ten years ago. The key to successful marketing and competing is differentiation. Hyper competition is a key feature of the new economy. What used to be national markets with local companies competing for business has become a global market with everyone competing for everyone's business everywhere. With the enormous competition markets today are driven by choice - your targeted customers have too many choices, all of which can be fulfilled instantly. Choosing among multiple options is always based on differences, implicit or explicit, so you ought to differentiate in order to give the customer a reason to chose your product or service. Thus, "differentiation is one of the most important strategic and tactical activities in which companies must constantly engage. It is not discretionary". Differentiation should be aimed at the broad market that involves -the creation of a product or services that is perceived throughout its industry as unique. *The company or business unit may then charge a premium for its product. *This specialty can be associated with design, brand image, technology, features, dealers, network, or customers service. Differentiation is a viable strategy for earning above average returns in a specific business because the resulting brand loyalty lowers customers' sensitivity to price. Increased costs can usually be passed on to the buyers. Buyers loyalty can also serve as an entry barrier-new firms must develop their own distinctive competence to differentiate their products in some way in order to compete successfully.

A differentiation strategy is more likely to generate higher profits than is a low cost strategy because differentiation creates a better entry barrier. -Positioning and differentiating the business. -Positioning and differentiating the products against rivals -USING the Business-level cross-functional process management -Anticipating changes in technology and customer perceptions and adjusting the strategy to accommodate them. -Influencing the nature of competition through strategic actions such as virtual integration and through political actions -Building strategic partnerships and co-innovating with other business units, partners, and customers. PROVIDING CUSTOMERS WITH MORE VALUE-ADDED [MVA] "MVA means that you give the customer more, perhaps far more, than you ever have before. It goes beyond simplifying your customers' interactions with you to delivering solutions to your customers' problems, of which your products and services in their native forms are but small pieces... You can visualize the principle of MVA as a ladder with your product at the bottom and the solution to your customer's problems at the top. The more help you provide your customers to fill that gap, the more value you add to them, which, of course, differentiates you from your competitors who are still scrambling around at the bottom of the ladder. Also, it is to your advantage to control as much of the ladder as you can customers will be less likely to abandon you in favor of someone else, lower down the ladder, who offers less value. At the same time, your opportunity for margin and profit increase." KEY ELEMENTS OF DIFFERENTIATING STRATEGY reflect the spirit of the Business be symbolic and intuitive be distinctive catch eye stay in memory connect to different cultures be adaptable.. ETC AN ORGANIZATION CAN DEVELOP A SERIES OF DIFFERENTIATION STRATEGIES DEPENDING ON ITS PRODUCT/ MARKET SITUATIONS AND THE ORGANIZATION RESOURCES.

*CHANGING PRICES

STRATEGY

-develop a pricing strategy which will allow the organization to lower prices To gain market monopoly and / or prevent competition from entering. *IMPROVING PRODUCT DIFFERENTIATION STRATEGY -improve the product features/ benefits to gain significant advantage in the market. -develop and implement innovations in the manufacturing process to gain advantage for the product cost/ distribution. -develop a brand consciousness in the market to reduce substitution from Entering the market. *CREATIVELY USING CHANNELS OF DISTRIBUTION STRATEGY -using vertical integration, to acquire a channel and dominate. -developing a new / unique distribution channel which is a novel to the industry. *EXPLOITING RELATIONSHIP WITH SUPPLIERS STRATEGY -developing / setting E-COMMERCE with suppliers. -developing/ extending TQM [total quality management] and JIT [just in time] with suppliers to meet the demands of product specifications / price. *COST LEADERSHIP -develop the manufacturing to achieve a gross margin, which could be used to cut price to gain market share, if/when required. -develop the product sourcing from anywhere, to achieve a gross margin, which could be used to cut price to gain market share, if/when required. -develop a trade rebate system for large quantity buyers which could block competitors entry.

*PRODUCT DIFFERENTIATION STRATEGY -develop unique patented or proprietary product know-how Which is hard to copy/ compete? -develop an unique customer loyalty program Which will make brand switching difficult? -develop a incentive strategy for major buyers, so that they would always use your brand. *FOCUS STRATEGY -within your organization, develop your core competences which are unique for your product / market. -develop a strategy to lift the profile/ image of your organization.

What Is The Difference Between A Product And Service? How Service Marketing Is Different From Product Marketing? Also Describe Why Marketing Of Services Is Difficult Than Marketing Of Goods. Answer With Support of Examples.

Question # 2 (A)

Product:

The noun product is defined as a "thing produced by labor or effort" or the "result of an act or a process, and stems from the verb produce, from the Latin produce (re) '(to) lead or bring forth'. Since 1575, the word "product" has referred to anything produced. Since 1695, the word has referred to "thing or things produced". The economic or commercial meaning of product was first used by political economist Adam Smith. In marketing, a product is anything that can be offered to a market that might satisfy a want or need. In retailing, products are called merchandise. In manufacturing, products are purchased as raw materials and sold as finished goods. Commodities are usually raw

materials such as metals and agricultural products, but a commodity can also be anything widely available in the open market. In project management, products are the formal definition of the project deliverables that make up or contribute to delivering the objectives of the project.

Service:
The generic clear-cut, complete and concise definition of the service term reads as follows: A service is a set of singular and perishable benefits Delivered from the accountable service provider, mostly in close coactions with his service suppliers, Generated by functions of technical systems and/or by distinct activities of individuals, respectively, Commissioned according to the needs of his service consumers by the service customer from the accountable service provider, Rendered individually to an authorized service consumer at his/her dedicated trigger, And, finally, consumed and utilized by the triggering service consumer for executing his/her upcoming business or private activity.

Services Marketing and the Extended Marketing What is services marketing?

A service is the action of doing something for someone or something. It is largely intangible (i.e. not material). A product is tangible (i.e. material) since you can touch it and own it. A service tends to be an experience that is consumed at the point where it is purchased, and cannot be owned since is quickly perishes. A person could go to a caf one day and have excellent service, and then return the next day and have a poor experience. So often marketers talk about the nature of a service as:

Product Marketing VS Service Marketing

The marketing of products and services reveal two different situations which require two very different strategies. With products you need only consider the perceived value, price, location, and advertising. With services you need to consider the perceived value, price, location, advertising, process, people, and proof. When advertising a service its important to demonstrate your process and proof through testimonials or other sources to build reasonable

expectations with your customer. These expectations will build perceived value in your product or service. When advertising a product proof is not as critical because the product is tangible and returnable. Perceived value is the amount a consumer would expect to pay for your product before they see the actual price. To build perceived value in a product you demonstrate and explain its benefits in relation to the customers needs. To build perceived value in a service you must prove that you are consistent and can provide quality service to meet the customers needs. Pricing for products will include the cost of materials, manufacturing, and distribution. Service pricing may include a small amount for some offsite manufacturing or travel but in general the pricing for a service is mostly profit. This low cost for providing the service will allow you to spend more money advertising and demonstrating the service. The location of your product or service may not be important depending on the type of item youre selling. If you run a retail location with many items, a stable location with plenty of walk-by or drive-by traffic is important. Niche items and services may not require a stable location as consumers do not need to know where your service is located unless theyre specifically requesting the service you provide. The process or operation of your business is a variable that consumers can compare with your competitors. Use your advertising and presentation wisely to explain why your process is better than the competition. People are the ones that "deliver" your service. People are the most difficult part of maintaining consistency in marketing. With a service youre dependent on people to offer the best customer service to each and every customer. If a consumer buys a product then tells a friend. The friend can rest assured that if they buy the same product they will have the same Result. Services do not operate this way. The trust consumers have in a humans ability to execute the same level of customer service day in and day out is nonexistent and for good reason. People are inconsistent creatures and thats why service marketers are burdened with Showing proof not once, but several times over.

Proof is the evidence that your service or product is worthy of purchase. Products seldom need proof because they are tangible and returnable. Proof for services may include testimonials, photos, audio, video, sales data, or other. In order to gain new customers your proof must be backed by facts and directly related to the customers needs. For a consumer, choosing a product is a matter of comparing the facts, choosing a service is like a trial. You have two sides: you and your competitor, or even more. Each side must backup their statements with evidence in order to prove their case. The consumer will judge The case and decide who is telling the truth, who has the most evidence that is relevant to their needs, and ultimately who is the best business for hire.

Marketing of Services Is Difficult Than Marketing of Goods

Every business owner knows that having a good marketing plan is absolutely vital to the success of their business venture. If you don't have a good marketing plan, then you don't know how to get where you want to go. You will just be shooting in the dark and you won't be able to see how you can achieve your goals within the market that you are working within. However, you need to have different approaches to marketing based on whether or not you are marketing products or if you are marketing services. If you are marketing both services and products, then you need to develop two different marketing plans that share some similarities-such as the type of business and the company image that you want to portray-but are also different. Different tactics work better for services versus products. You need to develop marketing plans for each and every one of them. So what are the difficulties between product marketing and service marketing? Many businesses know how to market products, but it is trickier to market services. Here are some things that you need to know about the differences between products and services. 1. When you are marketing a service, you are really marketing relationship and value. This relationship and value needs to be marketed differently than if you are marketing actual products. 2. Another major difference between marketing services and marketing products is that when a buyer purchases a service, the buyer is purchasing something that is intangible, instead of a tangible product, like a computer or a sprinkler system or a web page.

3. Consumers' concept of a service is often times based on just the reputation of only one single person. Instead of building a reputation based on the quality of a number of different products, a service is built on how well a particular person delivers on a service, such as how well a stock advisor does with your stock portfolio. 4. It is pretty easy to compare the quality of different products. It's easy for you to see if one computer works more quickly than another computer, or if one TV has a better picture than another picture, or if your child can break a toy more easily than another toy. However, it is much more difficult to compare the quality of similar services that are provided. 5. Products are returnable. However, services are not returnable. How to market services Generally speaking, marketing a product requires what are known as the "4 P's": Product, Price, Place, and Promotion. Marketing a service adds three more "P's" to the traditional "4 P's": People, Physical evidence, and Process. Service marketing also includes marketing what is known as the services cape, which is the aesthetics of your business place: the outside of your business building, the inside of your business building, and the way that the employees look.

How Companies Can Position Their Products For Competitive Advantage In The Marketplace? Discuss.
HOW TO GAIN A COMPETITIVE EDGE Examine your business and its key operations, policies and relationships with customers to determine what you should work on to compete more effectively. What You Should Know Before Getting Started Gaining a Competitive Advantage Marketing Position Company Resources and Opportunities Evaluation of Opportunities Defining the Process Choosing a Competitive Edge What to Expect

Question # 2 (B)

This Business Builder will help you to become more competitive by identifying the features of your operation you should focus on to maximize your efficiency and your product's appeal. What You Should Know Before Getting Started By accurately identifying and analyzing your firm's target market and its relative competition, you may recognize potential opportunities for success in selling your product or service. These opportunities, which your competitors may have overlooked, will provide your firm with the vision to develop marketing mixes far superior to your competition. Before getting started you will need to familiarize yourself with some basic terminology as it relates to customers and their markets. The First Step Is To Analyze Your Competition. What type of competition exists in your target market, and what impact will it have on the firm's ability to gain a competitive edge? The uniqueness of your firm's product or service, the number of competitors, the size of your competitors, the overall demand and the price will all be key factors in your gaining the competitive edge. There are four basic forms of competitive structures that differ based upon the number of competitors, relative ease of market entry, types of products and knowledge of the market. These structures are defined as follows: 1. Monopoly. A firm that produces a product or service with few or no substitute products or services. The company that has absolute control over the price in the market is considered a monopoly. An example would be your local utility companies. 2. Oligopoly. This structure exists when a few sellers of products or services control the supply of a large proportion of your market. These firms tend to set similar prices and create more difficult barriers for entry into the market. The steel industry is a classic example of an oligopoly. 3. Monopolistic Competition. This structure consists of many firms with moderate barriers to entry. Firms competing in this market attempt to develop differentiated market strategies to establish their own market share. Firms selling software products would fall into this category. 4. Perfect Competition.

Highlighted by unlimited competition and hardly any barriers to entry, individual firms operating under this structure would be unable to influence the price or supply of a particular product or service. Agricultural products are the closest form of pure or perfect competition. What Is Your Target Market? A Market is an aggregate of people, who, as individuals or organizations, have needs for products in a particular class, and who have the ability, willingness and authority to purchase such products. This Business Builder will use the term market in that sense, and not use it in the more general sense of a marketplace or mass market. In reviewing your market, consider two types of markets: Generic Market. This market is represented by sellers offering substitute products or services that are dramatically different than your product from a physical and conceptual viewpoint. The generic market is a broader market where items like automobiles, designer clothes, or vacations may all be in competition with each other. Product Market. This market is represented by sellers offering substitute products or services that are similar to yours from either a physical or conceptual viewpoint. Why Is It Important To Gain A Competitive Edge? In today's marketplace, there are thousands upon thousands of products and services available to fulfill the needs of individuals and businesses. Your ability to identify and exploit the features and associated benefits of your product or service and demonstrate how it is different or better than the competition will provide you with a competitive edge. The edge or advantage will provide your firm with the tools to: Increase sales and market share. Improve profit margins for a given period of time in new or existing markets. Ensure your survival in extremely competitive markets. Develop hard-to-copy marketing mixes. Gaining a Competitive Edge To get started, you will need to compile all the data collected about your target market trends, customers, products and competitors. Listed below is an outline of the various market plan elements you will need to review to identify your competitive edge or advantage: Market Positioning Company Resources and Opportunities

Evaluation of Opportunities Defining the Process Operational Efficiency Customer Service Product Leadership Choosing a Competitive Edge

Market Position How Can I Determine My Position In The Market? The identification of your firm's strengths and weaknesses is an important task that needs to be accomplished before any competitive edge can be developed. Try to analyze these factors from outside sources since perception (how you are perceived by others) is really the key. To determine your position in the market, you must ask many open ended questions of various types of sources. Besides your personal assessment, your employees, customers and suppliers are good targets for questions regarding how they view your firm in the market. Some of the more typical questions that might be asked are as follows: Customer-related Questions: How long have you been a client or customer of ABC Company? How did you hear of them? What criteria led you to select them? Do they perform all of your work in this area? What do you like best about them? What do you like least about them? Compared to other firms, what are their advantages? Disadvantages? Are there any other services you would like them to provide? Would you recommend them to others? Company Resources and Opportunities Generally speaking, all firms possess some type of resource or resources that help distinguish them from other firms. To develop attractive opportunities, you should make good use of your strengths, while avoiding competition with firms having similar strengths.

To uncover your firm's strengths, you should evaluate the functional areas of your firm (production, Research and Development, marketing, general management and finance), in addition to your present products and markets. This assessment of your firm's internal capabilities and resources will enable you to determine your strengths and weaknesses. Examples of resources that may impact your firm's pursuit of selected opportunities are as follows: 1. Financial Strength. Economies of scales that are achieved by steel and public utility companies require large amounts of capital. For these types of markets, small producers would have a tough time competing due to the large capital requirements. 2. Raw Material Reserves. The level of raw material reserves may play a major role in minimizing costs associated with production and the delivery of your products to market. In the wake of increased demand, potential price increases and raw material availability may have a significant impact on product cost. 3. Physical Plant. The actual location of your plant may have an impact on your ability to deliver your products to market. If your plant is located close to your suppliers and/or market, this strength may prove to be a competitive edge allowing you to minimize your freight cost and delivery time. Well-located plants are usually a strength, while poorly located ones may be a significant weakness. 4. Patents. If you possess a patent for a basic process in the manufacture of your product, this may provide a distinct advantage over the competition. It may force your competitors to substitute processes that are inferior or more costly and time consuming. Your possession of a patent will usually provide you with a competitive edge in selling your product. 5. Brands. If your firm has developed a group of loyal supporters, it may be difficult for other competitors to invade your market. Brills soap pads provide an example of this type of brand loyalty. Latecomer S.O.S. had a tough fight for market share, because the name Brills was synonymous with soap pad throughout most of the twentieth century. 6. Skilled People. A skilled sales force would be a definite strength that could be used as a competitive advantage in selling your product. A sales force without contacts or know-how would be a distinct disadvantage. 7. Management Attitudes. Top management attitudes toward growth of the business plays an important part in strategy formulation.

It will affect the development and introduction of new products and services. Evaluation of Opportunities Subsequent to evaluating your firm's resources (for strengths and weaknesses), the environmental factors impacting your firm, and your management objectives, you should screen and evaluate the various opportunities that have surfaced. To do so, the following steps should be taken: Match these opportunities against your firm's resources and objectives. Eliminate those opportunities that are mismatches. Analyze the remaining opportunities using one or more of the following approaches: Total profit approach Return on Investment approach Expected value approach Boston Consulting Group approach The measurement criteria used to evaluate each of these opportunities should include both quantitative and qualitative components. Quantitative components would summarize the objectives of the firm and include items like sales, return on investment and profit targets. Defining the Process In simple terms, the process of gaining a competitive edge consists of several steps: Discovering what your capabilities and resources are in your target market. Finding a place in the market where you will be able to position those capabilities. Developing a strategy to capture and maintain your position. Implementing and fine tuning your strategy. To improve the odds that successful competitive strategies are developed and implemented, the following factors should be considered: Personal Strengths. Company Strengths. Market Position Competition Market Trends There is no single factor which dictates what your firm needs to do in the market. You need to assess the interaction of all these factors and

interpret how that particular grouping of factors affects your firm's ability to market your product or service. Operational Efficiency. This term describes a firm that attempts to utilize processes to provide its customers with dependable products at a competitive price. Factors you may wish to consider in improving your operational efficiency would include the following: Try to match all your business activities with real and distinct customer needs. You will need to identify all of your customers needs and align or adjust all of your activities to ensure customer satisfaction. In What Areas Do I Need To Be Operationally Efficient In Order To Outperform My Competitors? Operational efficiency focuses on efficient production of your product or service, distribution capabilities, and customer satisfaction. It requires that you outperform your competition as follows: Respond rapidly to changes in market demand by adjusting your product or service. Ensure that each customer is provided with a quality product that has the reliability and consistency to satisfy their needs. Flexibility. Try to be flexible in delivering your products or services to your customer. Can you deliver different assortments to different shoppers? Make sure that your employees are provided with the proper training, responsibility and authority to satisfy your customers' needs. Relationship selling (building long term relationships with your customers) should be encouraged. Product Leadership. Many high technology companies are always searching to provide state-of-the-art products and services to their customers. Their new products or services are formulated based on the specific demands from their marketplace. If product leadership is the competitive edge your firm wishes to adopt or maintain, the following factors need to be considered: Choosing a Competitive Edge The competitive edge your firm chooses will depend on the reasons your customer will buy a particular product or service. Remember that customers who must meet specific needs are not ready or willing to make do with the wrong product. Some may like the newest product that technology has to offer, while others may opt for more convenient quality products at discount prices. Also keep in mind that the strategy you choose depends on what your market demands, the product or

service you offer, your firm's values, resources and expertise. Choosing the appropriate strategy for your product or service will provide you a competitive edge by allowing you to better serve your customers' needs. Why would my existing or potential customers buy my product or service over that of the competition? Remember to ask not what your advantage can do for you, but what your advantage can do for your customer. Gaining a Competitive Edge Market position ___ Have you identified your firm's strengths and weaknesses? ___ Have you identified and analyzed these factors using internal and external sources? ___ Have you compared your strengths and weaknesses against those of the competition? ___ Do you have a clear understanding about what your firm does best? Company resources and opportunities ___ Have you evaluated all functional areas within your firm? ___ What resources do you possess or lack that help distinguish your firm from each competitor? ___ What opportunities exist for your firm? Why do you consider them opportunities? Evaluation of opportunities ___ Have you screened your firm's opportunities by matching them against your resources and objectives? ___ Have you eliminated mismatched opportunities? ___ Have you evaluated each opportunity using one of the recommended approaches? Defining the process

___ Have you identified your capabilities in your target market? ___ Have you determined where in the market you can position those capabilities to gain a competitive edge? ___ Have you developed a strategy to capture or maintain your position in the market? Choosing a competitive edge ___ Do you have a clear understanding of why customers would rather buy your product or service vs. one of your competitors? ___ Will your product or service satisfy the customer's need? ___ Have you decided how your firm will gain or maintain a competitive edge in your target market?

Examine Product Life Cycle And Answer The Following Questions? What Stage You Think Is: Most Critical Most Risky Most Profitable Most Negative Your Answer Must Be Based On Logical Arguments.
The Product Life Cycle A new product progresses through a sequence of stages from introduction to growth, maturity, and decline. This sequence is known as the product life cycle and is associated with changes in the marketing situation, thus impacting the marketing strategy and the marketing mix. The product revenue and profits can be plotted as a function of the life-cycle stages as shown in the graph below:

Question # 3

Product Life Cycle Diagram

Introduction Stage
In the introduction stage, the firm seeks to build product awareness and develop a market for the product. The impact on the marketing mix is as follows: Product branding and quality level is established, and intellectual property protection such as patents and trademarks are obtained. Pricing may be low penetration pricing to build market share rapidly, or high skim pricing to recover development costs. Distribution is selective until consumers show acceptance of the product. Promotion is aimed at innovators and early adopters. Marketing communications seeks to build product awareness and to educate potential consumers about the product. Sales generally are low and somewhat slow to take off. Customers are characterized as 'innovators.' Production costs tend to be high on a per unit basis because the firm has yet to experience any significant scale economies. Marketing costs required for creating customer awareness, interest, and trial and for introducing the product into distribution channels are high. Profits, because of low sales and high unit costs, tend to be negative or very low. Competitors tend to be few in number, indeed there may be only one major player in the marketplace -- the innovating firm. Growth Stage

In the growth stage, the firm seeks to build brand preference and increase market share. Product quality is maintained and additional features and support services may be added. Pricing is maintained as the firm enjoys increasing demand with little competition. Distribution channels are added as demand increases and customers accept the Product. Promotion is aimed at a broader audience.

Sales increase rapidly during the growth phase. This increase is due to: (1) consumers rapidly spreading positive word-of-mouth (WOM) about the product; (2) an increasing number of competitors enter the market with their own versions of the product; (3) and a "promotion effect" which is the result of individual firms employing, advertising and other forms of promotion to create market awareness, stimulate interest in the product, and encourage trial. Cost are declining on a per unit basis because increased sales lead to longer production runs and, therefore, scale economies in production. Similarly firms may experience curve effects which help to lower unit variable costs. Because sales are increasing and, at the same time, unit cost is declining, profits rise significantly and rapidly during this stage. Customers are mainly early adopters and early majority. It is the early adopter, specifically, that is responsible for stimulating the WOM effect. During the latter part of growth, the first major segment of the mass market, called the early majority, enters the market. This category of consumers is somewhat more priced sensitive and lowers on the socio-economic spectrum. As a result, these consumers are somewhat more risk averse and, therefore, somewhat more hesitant to adopt the product. Competition continues to grow throughout this stage. As competitors recognize profit potential in the market, they enter the market with their own versions of the product. As competition intensifies, strategies turn to those that will best aid in differentiating the brand from those of competitors. Attempts are made to differentiate and find sources of competitive advantage. In addition, firms identify ways in which the

market can be segmented and may develop focused marketing strategies for individual segments. Maturity Stage At maturity, the strong growth in sales diminishes. Competition may appear with similar products. The primary objective at this point is to defend market share while maximizing profit. Product features may be enhanced to differentiate the product from that of competitors. Pricing may be lower because of the new competition.

Distribution becomes more intensive and incentives may be offered to encourage preference over competing products. Promotion emphasizes product differentiation.

Sales continue to grow during the early part of maturity, but at a much slower rate than experienced during the growth phase. At some point, sales peak. This peak may last for extended periods of time. In fact, the maturity phase of the life cycle is the longest phase for most products. As a result, most products at any given point in time probably are at maturity. And, most decisions made by marketing managers will be decisions about managing the mature product. Costs continue to rise during maturity because of market saturation and continually intensifying competition. When this slowing of sales is combined with the increasing costs associated with this stage, the result is that profits will have reached their highest level and must, from this point on, decline. The only remaining customers to enter the market will be the late majority and the laggards. These customer groups are by far the most risk averse and most hesitant to adopt new products. These customers are quite price sensitive and, as a result, will not buy products until prices have seen significant declines. Many laggards, the last group to adopt, often do not do so until the product is virtually obsolete and in danger of being displaced by new technologies. Competition is most intense during this stage. The intensity of competitive in-fighting drives the changes in costs and profitability. Decline Stage

As sales decline, the firm has several options: Maintain the product, possibly rejuvenating it by adding new features and finding new uses. Harvest the product - reduce costs and continue to offer it, possibly to a loyal niche segment. Discontinue the product, liquidating remaining inventory or selling it to another firm that is willing to continue the product. The marketing mix decisions in the decline phase will depend on the selected strategy. For example, the product may be changed if it is being rejuvenated, or left unchanged if it is being harvested or liquidated. The price may be maintained if the product is harvested, or reduced drastically if liquidated. Sales continue to deteriorate through decline. And, unless major change in strategy or market conditions occur, sales are not likely to be revived. Costs, because competition is still intense, continue to rise. Large sums are still spent on promotion, particularly sales promotions aimed at providing customers with price concessions. Profits, as expected, continue to erode during this stage with little hope of recovery. Customers, again, are primarily laggards. There generally are a significant number of competitors still in the industry at the beginning of decline. However, as decline progresses, marginal competitors will flee the market. As a result, competitors remaining through decline tend to be the larger more entrenched competitors with significant market shares.

Problems with Product Life Cycle.

In reality very few products follow such a prescriptive cycle. The length of each stage varies enormously. The decisions of marketers can change the stage, for example from maturity to decline by pricecutting. Not all products go through each stage. Some go from introduction to decline. It is not easy to tell which stage the product is in. Remember that PLC is like all other tools. Use it to inform your gut feeling.

Select Three Different Products Of Your Own Choice And Explain The Factors (Including Demand, Competition, Costs, And Other Marketing Mix) That Have Influenced Its Price?

Question # 4

The Marketing Mix

The Marketing mix and the 4 Ps are the controllable elements of business. In other words, a company has control over what product it makes, what price it sells the product for, how it wishes to place (distribute) the product and how it wishes to promote it. A company may need to adjust its marketing mix for each individual market due to the uncontrollable elements. Uncontrollable elements include geography, infrastructure, culture, technology, politics, laws and competition. The 4 Ps and the 4 Cs: the Importers Perspective An importer is most concerned about the 4Cs: Customer solution, customer Cost, Convenience and Communication. The 4 Cs emphasize customer needs and wants over just trying to sell products. Below is a comparison of the 4 Ps and the 4 Cs from the importers perspective. Product as Customer Solution Price as Customer Cost Place as Convenience Promotion as Communication

The exporters goal is to sell a product; the importers goal is to provide a solution for his/her customers. For either party to succeed, both must consider the total cost of shipping, insurance, customs clearance, duties, delivery fees and their own costs of business. Importers want the product to be handled, shipped and delivered to them as conveniently as possible. An importer also desires good communication in regards to product availability, transit times, problem-solving and marketing support. Product Basics

Each product contains a set of attributes. Included in the attributes is customer service, which is used to support business relationships. Although the sale is about the product, purchase decisions are also based on your ability to add value to the transaction. Exporters who are reliable, supportive, helpful in financing promotional materials and activities and good communicators often add to the companys export success. Next, consider if any changes should be made to the product before selling internationally. Are any label modifications required? Are the product packaging, size, color and name of the product appropriate? Considering these and other attributes are essential to positioning your product in a market. Product analysis includes: Quality Features Brand Name Packaging Labeling Product Assortment Product Length & Depth Quality Quality is the most important feature of a product, and is defined by the customer. Promoting and communicating product quality is imperative. An exporter often needs to educate the buyer and the market about a products inherent quality. Features Food features differ from other product categories. Ingredients make up a food and can be an area of competitive advantage. The way food is processed is also an important feature. A manufacturers care, creativity and technical skills can make up other important product features. Brand Name Successful branding of a product is a distinctive marketing skill. Branding includes creating, maintaining, protecting and enhancing the identity of a good to differentiate against the competition. A products brand is a combination of symbolic design, name, term or sign that

gives the product a unique position within the market. The brand often influences customer perception and purchasing decisions. A products name is also important. An exporter must consider whether the name makes sense, is offensive or means something entirely different when translated. American exporters are not the only people who face this challenge. Consider the following products that have had difficulty in the U.S. market: Mental: French mints Plop: Czech Republic candy bar Crapai: Turkish dill pickles Belchers Square Sausage: Scottish sausage Fart: Polish candy bar Bra: Swedish yogurt Cream Collon: Japanese cookie Packaging A products design and container or wrapper is its packaging. Packaging is closely connected with the design and style of the product. An importer understands the packaging importance, and might choose one product over another based upon it. A trade event in Singapore involved a tabletop display of over 60 U.S. food products and hosted buyers from a variety of chains and wholesalers within Southeast Asia. Packaging needs to be both attractive and durable. An exporter should also consider packing options, which better protect the product and the products packaging. Labeling Proper labeling is both a science and an art. Labels contain several key components. First, the design and artwork of the package is oftentimes part of the label. Label information should include: brand and product name, the origin and date of manufacture, a list of contents and ingredients, applicable nutritional and health claims, as well as proper use and shelf life. Label modifications can be expensive. However, there are programs to help. The Branded Program supports the expense involved in labeling changes to comply with import regulations. Private Labeling

Private label is a brand created by a store or re-seller of another companys products. Private labeling in the international retail food industry has continued to grow in the past decade and shows particular success in certain categories and countries. Private label products have become competitive with brands, due to their lower cost and perhaps better shelf space allocation. Product Assortment Most small and medium-sized companies have some consistency in their assortment of products. This means that they do not stray very far away from their core competency, such as making sauces, condiments or salad dressings. These products are grouped closely together in the same subheading in the harmonized system. This is a benefit, as many buyers are interested in working with a firm that specializes in certain types of products. Many buyers believe that a small company sacrifices quality if their product line is too large. It is good to have product mix consistency, which is to say, not too wide of an assortment of products to market. Length & Depth Product length and depth are important considerations in product assortment. Moderate length strengthens export opportunities, as it often refers to available product flavors. For example, having twelve flavors of margarita mixes allows a potential buyer to make choices on which products they are interested in distributing. In international trade, providing choices allows for customers to try new flavors or stay with the ones they are already familiar with. The number of versions available for a product is referred to as product line depth. Product depth usually refers to the different sizes a product is available in. Many countries prefer small product sizes due to limited store shelf space and smaller storage spaces in customer homes. Appropriate portion sizes also differ among countries, especially when compared to the U.S. During a retail store tour in the U.S., an international buyer referred to a 32 oz. bottle of soda as family size. Pricing Basics Firms relatively new to exporting should aim to keep their pricing simple. What is commonly referred to as the cost-plus method of pricing may not be too different than how a company prices their

products domestically. In fact, domestic pricing for many companies that have been in business some time include discounts, commissions, broker fees and other allowances that are more complicated than export pricing. Try to be as competitive as possible to gain market share, and remember that the importer has a variety of costs to deal with that you do not. Experienced importers have a good idea about what the market price for a product should be and will let you know what is required to establish distribution. If they ask for pricing considerations from you, it often does not mean your price is too high, but that their cost is too high. If both you and the importer agree that the business has potential, there are ways to deal with the price escalation of export. If your pricing cannot match the importers needs or the market conditions, then continue trying other importers in other markets. Each transaction will provide a valuable lesson in export pricing. Pricing Variables Export Price Escalation Discounts Payment Period Payment Terms Use of the Pro forma Invoice

Export Price Escalation Export pricing from your facility to the ultimate destination is usually segmented into three main parts: Shipping within the United States to the port of export. This is commonly referred to as inland transportation or pre main-carriage transport. The further your facility is from the port of export, the more expensive shipping becomes. Shipping from the port of export to the port of import. This is also referred to as main carriage and is usually listed as the origin and destination on the shipping documents. The main carriage is usually the longest leg of the journey, although there are exceptions. Shipping from the port of import to the ultimate destination. This is referred to as post main-carriage and involves the expenses of getting a product from the port to the importers warehouse or end use location.

Every step requires organization, documentation and a logistical plan. Each function may vary between country of destination and type of buyer. As mentioned previously there are service providers that specialize in the process, such as international freight forwarders, consolidators, customs brokers and shipping companies. Discounts As price escalation between your warehouse and the ultimate destination can cost the importer more than the domestic buyer, the importer may request some form of discount off of your regular price. Many considerations go into discounting sales. However, the worth of the sale to the company in terms of volume, value, profit and longterm business should all be taken into consideration. Discount options could include: Cash discount: Many businesses offer cash discounts to their customers in order to fuel demand of the products over a given period of time. Another type of discount could be offered for early payments, such as one percent per week prior to the invoice coming due. Quantity discount: This is often used in the export business, and reduces price based on volume. For example, an exporter offers a product for $17.00 per carton of 12 boxes of product, under 100 boxes. The price could be reduced to $16.00 for amounts between 101-499 boxes; $15.00 for amounts between 500-999 and so on. It gives the importer an incentive to purchase more and increases sales for the seller. Seasonal discount: Many foods and ingredients are produced in seasonal cycles. Sometimes, it makes sense to offer an off-season discount to the importer to make sure products move in the periods when consumption might be down. An allowance might also be considered. An allowance may be promotional support for distributors or retailers who specially feature your products. The Branded Program provides cost sharing in many types of promotional activities, and is of great benefit to many small businesses in developing export markets for their products. Payment Period Export payments may usually take longer than the domestic equivalent sale. As a result, prices should be designed to recover the cost of capital during a lengthy open account sale. For example, if it would cost a company $300.00 to finance an open account sale of 90

days, it is a good idea to include that cost in the pricing to absorb the loss. If the importer agrees to pay 50% of the invoice in advance, you could reduce the equivalent amount of the cost of financing. Payment Terms If open account sales are not an option for one or both parties, the use of a consignment controlled payment is an option. This payment method is also referred to as payment by documentary collection, or draft, either at sight or on a time basis. It restricts access of the commercial documents prepared for the shipment, which are required to take title of the goods at the destination. The documents are only released to the buyer when payment has been made (sight draft) or when an endorsement of the draft obligates them to make payment within a given time frame (time draft). Use of the Pro forma Invoice Most export prices are quoted via the use of a pro forma invoice, which is essentially a quotation to the buyer for a particular shipment. In actuality, it becomes the first draft of the commercial invoice, the key document in the export business. Many importers request pro forma invoices on a consistent basis, and most successful exporters have become skilled at issuing them. Placement (Distribution) Basics Export distribution can be broken into three steps. During the first step, products leave the factory or pick-up location and are taken to the port of export. Next, the shipment leaves the port of export and arrives at the port of import. Finally, the product moves from the port of import to the ultimate destination for storage, sale or use. More than one service provider is usually required to perform all of these functions, and because of the distance, paperwork and cost it is very important for all of these functions to work together in a seamless fashion, at least from the eye of the exporter and importer. Placement Considerations Distribution Channels Indirect vs. Direct Exporting Who Owns the Goods? Exporting Logistics Interposal Transportation Consolidations Exclusive Distribution

Export Diversion

Distribution Channels Channels of distribution vary greatly from one market to the next. For example, distribution channels in Japan are vastly different from those in Mexico or India. One of the major considerations of distribution concerns the length of the channel. The length of a channel refers to the number of intermediaries in the chain, all of whom are seeking a profit. The longer the channel, the more expensive the product is at the retail level. Thus, a shorter channel costs less and delivers the goods to market more quickly. Indirect vs. Direct Exporting: Who Owns the Goods? Many U.S. companies specialize in exporting products for others and do not produce any goods themselves. These companies may be called: Export Management Companies, Export Trading Companies, Export Merchants or Buying Offices from overseas firms. Regardless of the name, if you sell to another firm and they export your product, you are exporting indirectly, as you have given up title to the goods. Indirect exporting is a common way for small and medium-sized businesses to enter into foreign markets, as it requires little in the way of capital, time and staff compared to exporting directly. After some time and experience in the field of international trade, many companies begin to develop their own export business, often in other markets than the ones served by the exporting company. Exporting Logistics Logistics includes all of the activities in moving merchandise from the origin of manufacture to the point of use or consumption. Export logistics include getting the right amount of product to customers within the required time frame at a cost that leaves a margin of profit for both parties. Recent estimates indicate that logistics in trade account for 15% of the total volume, or $1.5 trillion annually. Therefore, controlling logistical costs should be a priority and can result in more profit for the exporter. While it is important to remain cost-competitive, choosing transportation on price alone is not advised. The cheapest method of transportation is usually not the best, and it is often risky to save a few cents by selecting an unknown logistics service provider or carrier. If goods are misrouted, lost or not properly serviced, future business could be lost. A savvy exporter will look for savings at each step beginning with the method of packing goods for shipment and ending

at product delivery, without sacrificing the quality of shipment. When an exporter can add value to the transaction, he/she always should. Intermodal Transportation Many exports are shipped by intermodal transport, which is the use of two or more modes of transport between origin and destination. The further a product has to be shipped, the more likely it will require intermodal transportation. Many shipments are picked up by local trucking firm, transferred to another truck for the interstate haul, loaded onto a container at a port and then loaded onto a vessel for export. After arriving at the port of import, the shipment may then be offloaded onto a train, a truck or another vessel prior to its arrival at the ultimate destination. Consolidations Many food importers consolidate their shipments, which means that they request the exporter to deliver the shipment to the warehouse of a freight forwarder, NVOCC (non-vessel operating common carrier), or other consolidator. This company then builds a consolidation of multiple suppliers products into an air or ocean container and ships it to the port of import. By consolidating, the importer saves in freight charges, customs clearance fees and protects the integrity of shipments by having everything arrive in one lot rather than in partial shipments. Exclusive Distribution It can work to the benefit of both the buyer and seller to enter into an exclusive distribution agreement. If an importer is truly excited about marketing a product in their country, they will often request the legal right to be the only one to do so. For an exporter, giving exclusive rights to the right partner can give his/her brand the best chance of gaining identity and market share. One key consideration regarding exclusivity is coverage. In some countries, most of the market may be within the coverage area of one distributor. In places like Canada, Mexico or Australia, there are multiple markets that are geographically spread apart and adequate coverage might not be possible with one partner. In these countries, you might choose more than one distributor and limit the exclusivity to a certain territory that can be properly managed by each one. Export Diversion

Despite the channel, mode of distribution or type of distributor you work with, your exports could be compromised by diversion. Simply put, diversion occurs when your shipments do not reach the stated destination and are sent elsewhere without your knowledge. Diversion usually occurs when you have negotiated a special export price, based on the fact you are free from most domestic equivalent costs like commissions, broker fees and rebates. The goods are picked up from your facility on behalf of the buyer, who then resells them to another U.S. customer and they are in turn sold below your domestic price. Example of a Destination Control Statement: "These commodities were exported from the United States in accordance with the export administration regulations for the ultimate destination of the United Arab Emirates. Diversion contrary to U.S. law is prohibited." Promotion Basics Promotions explain the merits of a product and its company and are oftentimes referred to as communications. Products that require significant promotion in the U.S. may find a similar need in international markets. Promotion Variables Advertising Sales promotion Public relations Personal selling Direct marketing Website for Export E-Marketing

Together, these elements make up the promotional mix. In the export business, a company may find that one or more components of the promotional mix may vary in effectiveness based on the market, the buyer or the product being sold. When used at the same time, they are collectively known as Integrated Marketing Communications", or IMC. It is helpful to take advantage of as many promotions as possible to grow a brand overseas. If a company does not have direct overseas communications, it should work with the importer to establish effective promotions. Advertising

Advertising is known as any paid form of non-personal presentation and promotion of goods. While a small business exporter might not ever get involved in advertising internationally, the opportunity to do so is increasing with new media and lower costs in specific targeted markets. It is possible to maintain your domestic theme in international advertisements, and in some cases, preferred by the importer as well. It is imperative to have the message translated properly though, if the destination market does not use English, and in some cases even if it does use English. Interpretation of the message is most important, especially as most advertising has a humorous angle, and humor is often the most difficult aspect of language to interpret. Examples of creative international advertising include: A popcorn company targeted children by advertising their products alongside a new childrens movie. Placemats were made for restaurants that had fun and games for the children with popcorn and movie images. A honey company hired a local in Greece to paint its car with the companys logo and information. Their products were promoted all over town at a minimal cost. One innovative company used product placement in key British soap operas to get their products into the living rooms of consumers. Their products could be seen in these fictitious supermarkets and convenience stores throughout prime time viewing hours. Sales Promotions Sales promotions are described as short-term incentives that encourage the purchase of a product within a given time frame. The use of coupons, cents-off, contests, premiums and other deals may be restricted in overseas markets, and are not nearly as common as they are in the United States. However, promotions can be a strategy used by your importer, who owns the goods and can decide how and when to promote a product. Many international sales promotions can be found in grocery stores. Instore demonstrations with product giveaways and cooking demonstrations are popular along with end-of-aisle gondolas that highlight new products. Some companies even give away recipe cards as an incentive to buy the product if its an item consumers may not be familiar with. Public Relations (PR)

Public Relations are based on obtaining favorable publicity and building up a good image as a corporate citizen. Public relations often make more of an impact than advertising. This is in part because they are true and believable. They are also an effective and economical way to create awareness about your products, your company and in some cases, yourself. Many small and medium-sized companies have effective public relations in place, even if that is not how they refer to them. Personal Selling Personal selling can pose a challenge with international customers. Cold calling distributor lists is less efficient than a properly set meeting such as a Buyers Mission, Trade Mission or meeting at a domestic or overseas trade show. However, it is important to note that many importers listed in the marketing reports outlined in Section 2 are aware they have been included in those reports and have requested to be included in order to be introduced to new suppliers. Food ExportMidwest and Food Export-Northeast also offer an online product catalog that has been customized to match buyer needs with registered companies products. Personal selling is subject to Cultures Consequences. In the U.S., we are used to being approached by strangers who would like to sell a product or service. But, in many countries this is not common or acceptable. Many cultures have distinctly different approaches to doing business, including both verbal and non-verbal communications, negotiations, thinking and decision-making processes. Before meeting with a potential buyer, learn about various business cultures of that country. Direct Marketing Direct marketing involves carefully targeting existing or potential customers by a variety of media including telephone, fax, e-mail, the internet or direct mailing in order to cultivate or maintain business relationships. It is difficult in the export trade, as it is not directly aimed at consumers, but at businesses. Direct marketing is most effective if you have actually met with or communicated with the targeted business before. It is also used to introduce yourself and your company or to create awareness about your products and international trade intentions. Websites for Export E-Marketing

Internet advancements have given small and medium-sized firms a boost and have allowed many to expand their business internationally. Many of the promotional concepts presented in this section can be achieved through a carefully designed website. E-Marketing can provide a low cost implementation of an export strategy. A clearly defined mention of International Inquiries Welcome along with a specially designated area to describe your exporting policies and procedures and a pricing list for export gives your company a competitive advantage. Companies can also incorporate their own trade lead form to collect buyer data and interests. Literally hundreds of food and agricultural product firms are establishing export business through their websites today; so if your company is not yet doing so, you should consider adding yours to that proactive group. Market Segmentation, Targeting & Positioning Once your top markets have been identified through market research, each market should be segmented, targeted and positioned properly for overall export success. This process helps a company to focus on those clients or market segments that offer the most potential, rather than using a de-segmented marketing approach. Market Segmentation In order to segment a market, it must be divided into separate groups which have distinct needs and characteristics. Each segment may hold potential for different products or require a separate marketing mix. There are many ways to segment markets, especially in export marketing. Below are a few segments that will be discussed in more detail throughout the section: Geographic Segmentation Demographic Segmentation Psychographic Segmentation Global Market Segmentation

Geographic Segmentation Geographic segmentation divides markets into different groups based on regions, countries or even regions within countries. For example, the North American market could include the United States, Canada and Mexico. However, Mexico could also be segmented into the Latin American market.

Other geographic segments throughout the world might include: Western Europe Central Europe Pacific Rim Asia Southeast Asia Middle East Caribbean

These regions are too large to be target markets, but they are regions where targets might be located. Within each segment there are differences in population density, climate and purchasing power which will help you to further refine your target. Demographic Segmentation Demography is the study of people, and is an important variable in market segmentation. If you have a good idea about whom your customers are in the domestic market, it makes sense to try and locate them in other areas of the world. The following is a list of some common demographic segments. Age Children, teenagers, young adults, adults, middle-aged, elderly Gender Male or female Family Size Ranging from single to 5+ Family life cycle Young, single, married, kids, empty-nest or older Income Under $10,000 to beyond $100,000 Education Grade school, high school, college, graduates Nationality Any individual within a country or different nationalities within countries

Psychographic Segmentation People in the same demographic may have different social classes, lifestyles and personalities. Psychographic segmentation divides markets by how individuals feel about themselves, their aspirations and goals in life. Marketing is often described as creating a psychic bond with customers and making them feel good about buying your products.

Another type of segmentation is by occasion, such as a particular holiday or event that might increase the use of a certain type of food. For example, exports of kosher food always increase in advance of the Jewish Holy Days. Global Market Segmentation Global consumers often have similar needs and purchasing behaviors despite their geographic location. Many consumer-oriented food exports are global in scope. Just as you might find some U.S. states to have strong sales; very similar markets can be found across the globe. Many customers have comparable tastes, regardless of language, culture, economics or politics. This is also referred to as Intermarket Segmentation. Market Targeting With proper segment profiles, a company may begin the process of evaluating each market and choosing one or several markets to enter into. Consumers in similar segments with common needs and characteristics can then been separated into the initial target markets. In order to determine which target markets to begin with, a set of factors for evaluation should be set. These factors include market segment size and growth and overall attractiveness of the market. Each factor should be evaluated based on your companys goals, capabilities and resources. Market segment size & growth: The right size and market growth rate are unique to each exporter. The best market is not always the largest one. Overall attractiveness: Market research should provide a good idea about how competitive a market is for products like yours or potential substitutes to yours, as well as price sensitivity for distributors and consumers. Company goals, capabilities and resources: Consider your own goals and objectives against your companys ability to provide marketing support.

Market Positioning When introducing a product into a market, it is important to consistently relay its attributes to potential customers. Your message

should provide a clear and distinct advantage of choosing your product over the competitions. Positioning the product is an important component of the promotional mix. Positioning begins with identifying where your products have a comparative advantage. In the business of food export, the comparative advantage sought is often on innovation, quality and value. A products position needs to have a relative advantage to be chosen over other products, and needs to be seen as distinct and superior. Products should produce profit for the importer while remaining affordable for the consumer. The recipe for Market positioning success includes: an appropriate business partner, export assistance agencies and support and longterm commitment from the companys management.

Direct Marketing Is The Practice Of Delivering Promotional Messages Directly To Potential Customers On An Individual Bases. Obtain Information From Any Commercial Organization (Such As Dawlance, Acer, And LG Etc) And Answer The Following Questions: 1. What Kind Of Direct Marketing Efforts They Apply? 2. How Do They Make It Easy To Order Their Product? 3. How Are Their Products Different From Competitors? 4. What Are Their Competitive Advantages And Disadvantages?

Question # 5

Direct marketing
Direct marketing is a form of advertising that reaches its audience without using traditional formal channels of advertising, such as TV, newspapers or radio. Businesses communicate straight to the consumer with advertising techniques such as fliers, catalogue distribution, promotional letters, and street advertising. Direct Advertising is a sub-discipline and type of marketing. There are two main definitional characteristics which distinguish it from other types of marketing. The first is that it sends its message directly to consumers, without the use of intervening commercial communication media. The second characteristic is the core principle of successful Advertising driving a specific "call to action." This aspect of direct marketing involves an emphasis on track able, measurable, positive

responses from consumers (known simply as "response" in the industry) regardless of medium. Channels Direct mail The most common form of direct marketing is direct mail,[citation needed] sometimes called junk mail, used by advertisers who send paper mail to all postal customers in an area or to all customers on a list. Any low-budget medium that can be used to deliver a communication to a customer can be employed in direct marketing. Probably the most commonly used medium for direct marketing is mail, in which marketing communications are sent to customers using the postal service. The term direct mail is used in the direct marketing industry to refer to communication deliveries by the Post Office, which may also be referred to as "junk mail" or "ad mail" or "crap mail" and may involve bulk mail. Telemarketing The second most common form of direct marketing is telemarketing, [citation needed] in which marketers contact consumers by phone. The unpopularity of cold call telemarketing (in which the consumer does not expect or invite the sales call) has led some US states and the US federal government to create "no-call lists" and legislation including heavy fines. This process may be outsourced to specialist call centers. In the US, a national do-not-call list went into effect on October 1, 2003. Under the law, it is illegal for telemarketers to call anyone who has registered themselves on the list. After the list had operated for one year, over 62 million people had signed up.[4] The telemarketing industry opposed the creation of the list, but most telemarketers have complied with the law and refrained from calling people who are on the list.[citation needed] (The list does not apply to non-profit organizations.) Email Marketing Email Marketing is a third type of direct marketing. A major concern is spam, which actually predates legitimate email marketing.[citation needed] As a result of the proliferation of mass spamming, ISPs and email service providers have developed increasingly effective E-Mail Filtering programs. These filters can interfere with the delivery of email

marketing campaigns, even if the person has subscribed to receive them,[5] as legitimate email marketing can possess the same hallmarks as spam. There are a range of e-mail service providers that provide services for legitimate opt-in emailers to avoid being classified as spam.

Door-to-Door Leaflet Marketing Leaflet distribution services are used extensively by the fast food industries, and many other business focusing on a local catchments Business to consumer business model, similar to direct mail marketing, this method is targeted purely by area, and costs a fraction of the amount of a mails hot due to not having to purchase stamps, envelopes or having to buy address lists and the names of home occupants. Voicemail Marketing A fifth type of direct marketing has emerged out of the market prevalence of personal voice mailboxes, and business voicemail systems. Due to the ubiquity of email marketing, and the expense of direct mail and telemarketing, voicemail marketing presented a cost effective means by which to reach people directly, by voice. Couponing Couponing is used in print media to elicit a response from the reader. An example is a coupon which the reader cuts out and presents to a super-store check-out counter to avail of a discount. Coupons in newspapers and magazines cannot be considered direct marketing, since the marketer incurs the cost of supporting a third-party medium (the newspaper or magazine); direct marketing aims to circumvent that balance, paring the costs down to solely delivering their unsolicited sales message to the consumer, without supporting the newspaper that the consumer seeks and welcomes.

THREE EASY WAYS TO ORDER:

Fast, simple and flexible ordering options from phone to fax, through the internet with one on line catalogue On line ordering From the comfort of your home or office, with the security of Pay pal, you can quickly and easily place your order for our Granicare products

from anywhere in the world. Simply click on the Products link and click on the product image of the product you would like to order, then press the Add to Cart button and proceed to checkout through Paypal. To reduce our overhead costs everything is done online which allows us to reduce the price you pay. This also provides us with complete order traceability to be able to provide you with the best possible buying experience. BY FAX: Many sites are not a secure web site. Therefore, for security reasons you place your order by fax or phone, or, if you ordered from fax you receive your order minimum 7 business working days... BY PHONE: Understand that people are still concerned about Internet security, even though a secure web site to accept orders... To avoid to enter your credit card information online When you "checkout" and fill out your name, address, phone number, "will call/fax in credit card information" as the payment method (instead of visa, MasterCard, or discover - which will require to enter the number online) An invoice with an order number will be generated, and it will have the phone number to call in your credit card information. You will receive a confirmation e-mail with the toll free telephone number to call in or fax in your credit card information.

Monopolistic competition
Monopolistic competition is a form of imperfect competition where many competing producers sell products that are differentiated from one another (that is, the products are substitutes, but, with differences such as branding, are not exactly alike). In monopolistic competition firms can behave like monopolies in the short-run, including using market power to generate profit. In the long-run, other firms enter the market and the benefits of differentiation decrease with competition; the market becomes more like perfect competition where firms cannot gain economic profit. Unlike perfect competition, the firm maintains spare capacity. Models of monopolistic competition are often used to model industries. Textbook examples of industries with market structures similar to monopolistic competition include restaurants, cereal, clothing, shoes, and service industries in large cities. The "founding father" of the theory of monopolistic competition was Edward Hastings Chamberlain in his pioneering book on the subject

Theory of Monopolistic Competition (1933). Joan Robinson also receives credit as an early pioneer on the concept. Monopolistically competitive markets have the following characteristics: There are many producers and many consumers in a given market, and no business has total control over the market price. Consumers perceive that there are non-price differences among the competitors' products. There are few barriers to entry and exit. Producers have a degree of control over price.

The long-run characteristics of a monopolistically competitive market are almost the same as in perfect competition, with the exception of monopolistic competition having heterogeneous products, and that monopolistic competition involves a great deal of non-price competition (based on subtle product differentiation). A firm making profits in the short run will break even in the long run because demand will decrease and average total cost will increase. This means in the long run, a monopolistically competitive firm will make zero economic profit. This gives the amount of influence over the market; because of brand loyalty, it can raise its prices without losing all of its customers. This means that an individual firm's demand curve is downward sloping, in contrast to perfect competition, which has a perfectly elastic demand schedule.

Product differentiation
MC firms sell products that have real or perceived non-price differences. However, the differences are not so great as to eliminate goods as substitutes. Technically the cross price elasticity of demand between goods would be positive. In fact the XED would be high. MC goods are best described as close but imperfect substitutes. The goods perform the same basic functions. The differences are in "qualities" and circumstances such as type, style, quality, reputation, appearance and location that tend to distinguish goods. For example, the function of motor vehicles is basically the same - to get from point A to B in reasonable comfort and safety. Yet there are many different types of motor vehicles, motor scooters, motor cycles, trucks, cars and SUVs.

Many firms
There are many firms in each MC product group and many firms on the side lines prepared to enter the market. A product group is a

"collection of similar products. The fact that there are "many firms" gives each MC firm the freedom to set prices without engaging in strategic decision making. The requirement assures that each firm's actions have a negligible impact on the market. For example. a firm could cut prices and increase sales without fear that its actions will prompt retaliatory responses from competitors. How many firms will an MC market structure support at market equilibrium? The answer depends on factors such as fixed costs, economies of scale and the degree of product differentiation. For example, the higher the fixed costs the fewer firms the market will support. Also the greater the degree of product differentiation - the more the firm can separate itself from the pack - the fewer firms there will be in market equilibrium. COMPETITIVE ADVANTAGES AND DISADVANTAGES Competitive advantage is a position of a company in a competitive landscape that allows the company earning return on investments higher than the cost of investments. Competitive advantage should be relevant, unique, and sustainable.

Resource-based view perspective

Competitive advantage is a theory that seeks to address some of the criticisms of comparative advantage. Michael Porter proposed the theory in 1990. Competitive advantage theory suggests that states and businesses should pursue policies that create high-quality goods to sell at high prices in the market. Porter emphasizes productivity growth as the focus of national strategies. Competitive advantage rests on the notion that cheap labor is ubiquitous and natural resources are not necessary for a good economy. The other theory, comparative advantage can lead countries to specialize in exporting primary goods and raw materials that trap countries in low-wage economies due to terms of trade. Competitive advantage attempts to correct for this issue by stressing maximizing scale economies in goods and services that garner premium prices (Stutz and Warf 2009). Competitive advantage occurs when an organization acquires or develops an attribute or combination of attributes that allows it to outperform its competitors. These attributes can include access to natural resources, such as high grade ores or inexpensive power, or access to highly trained and skilled personnel human resources. New technologies such as robotics and information technology either to be included as a part of the product, or to assist making it.

Information technology has become such a prominent part of the modern business world that it can also contribute to competitive advantage by outperforming competitors with regard to internet presence. From the very beginning, i.e. Adam Smith's Wealth of Nations, the central problem of information transmittal, leading to the rise of middle-men in the marketplace, has been a significant impediment in gaining competitive advantage. By using the internet as the middle-man, the purveyor of information to the final consumer, businesses can gain a competitive advantage through creation of an effective website, which in the past required extensive effort finding the right middle-man and cultivating the relationship. The term competitive advantage is the ability gained through attributes and resources to perform at a higher level than others in the same industry or market (Christensen and Fahey 1984, Kay 1994, Porter 1980 cited by Chacarbaghi and Lynch 1999, p. 45). The study of such advantage has attracted profound research interest due to contemporary issues regarding superior performance levels of firms in the present competitive market conditions. A firm is said to have a competitive advantage when it is implementing a value creating strategy not simultaneously being implemented by any current or potential player (Barney 1991 cited by Clulow et al.2003, p. 221). Successfully implemented strategies will lift a firm to superior performance by facilitating the firm with competitive advantage to outperform current or potential players (Passemard and Calantone 2000, p. 18). To gain competitive advantage a business strategy of a firm manipulates the various resources over which it has direct control and these resources have the ability to generate competitive advantage (Reed and Fillippi 1990 cited by Rijamampianina 2003, p. 362). Superior performance outcomes and superiority in production resources reflects competitive advantage (Day and Wesley 1988 cited by Lau 2002, p. 125