I would like to have following information in my database:

Operational database layer

The source data for the database — An organization's Enterprise Resource
Planning systems fall into this layer. Enterprise Resource Planning (ERP) is an
integrated computer-based system used to manage internal and external resources,
including tangible assets, financial resources, materials, and human resources. Its
purpose is to facilitate the flow of information between all business functions
inside the boundaries of the organization and manage the connections to outside
stakeholders
Data access layer
The interface between the operational and informational access layer — Tools to
extractfrom outside sources , transforming it to fit operational needs (which can
include quality levels), Loading it into the end target (database or data warehouse)
data into the warehouse fall into this layer.
Metadata layer
The data directory — This is usually more detailed than an operational system
data directory. There are dictionaries for the entire warehouse and sometimes
dictionaries for the data that can be accessed by a particular reporting and analysis
tool.
Informational access layer
The data accessed for reporting and analyzing and the tools for reporting and
analyzing data — Business intelligence tools fall into this layer. Business
intelligence (BI) refers to computer-based techniques used in spotting, digging-
out, and analyzing business data, such as sales revenue by products and/or
departments or associated costs and incomes.

USAGE OF THIS INFORMATION

An internal database is used as follows:

• to provide the products, information and services you request;

• for security, credit or fraud prevention purposes;
• to provide you with effective customer service;
• to provide you with a personalized experience when you use our Sites;
• to display personalized advertising when you visit our Sites;
• to contact you with special offers and other information we believe will be of
interest to you (but only with your permission);
• to contact you with information and notices related to your use of our Sites;
• to invite you to participate in surveys and provide feedback to us;
• to better understand your needs and interests;
• to improve the content, functionality and usability of our Sites;
• to improve our products and services;
• to improve our marketing and promotional efforts; and
• for any other purpose identified in an applicable Privacy Notice or other
agreement .
 • A database provides a common data model for all data of interest regardless of the
data's source. This makes it easier to report and analyze information than it would
be if multiple data models were used to retrieve information such as sales
invoices, order receipts, general ledger charges, etc.
• Prior to loading data into the database, inconsistencies are identified and resolved.
This greatly simplifies reporting and analysis.
• Information in the database is under the control of database users so that, even if
the source system data are purged over time, the information in the warehouse can
be stored safely for extended periods of time.
• Because they are separate from operational systems, database provide retrieval of
data without slowing down operational systems.
• database can work in conjunction with and, hence, enhance the value of
operational business applications, notably customer relationship management
(CRM) systems.
• database facilitate decision support system applications such as trend reports (e.g.,
the items with the most sales in a particular area within the last two years),
exception reports, and reports that show actual performance versus goals.

QUESTION#2

There are obvious differences between goods and services that are analyzed based on
characteristics of each. A good is a tangible object used either once or repeatedly. A
service is intangible. The tangibility differentiator indicates the ability to touch, smell,
taste and see which is absent in services. This can be a deterrent to the service receiver to
gauge the quality and dependant on the service company reputation. In the case of goods
the ownership of the product is transferable from sellers to buyers, whereas in services
there is no ownership involved.

On the quality front, with goods it is homogeneous, once produced the quality is uniform
across all line of products. They can be separated from the seller/ provider and not
dependant on the source for its delivery to the purchaser. With regard to service it is
inseparable from the service provider and heterogeneous, where each time the service is
offered it may vary in quality, output, and delivery. It cannot be controlled and is
dependant on the human effort in achieving that quality hence is variable from producer,
customer and daily basis.

Another key distinction is perishability of services and the non perishability of goods.
Goods will have a long storage life and are mostly non perishable. Whereas services are
delivered at that moment and do not have a long life or cannot be stored for repeat use.
They do not bear the advantage of shelf life as in the case of goods like empty seats in
airlines. With the production and consumption taking place simultaneously in services, it
differs from goods on simultaneity and the provisions for quality control in the process.
Both goods and services need not be driven by economic motives. Several times goods
and services are linked closely and cannot be detached. For example on purchase of a car,
the good is the car but the processing, the provision of accessories, after sales activities
are all services. It is essential to note that the difference between pure goods and pure
services are in contrast but most goods and services exist in between with a mix of both.
For instance, in a restaurant, food refers to goods while the service is the waiters offering,
the ambience, the setting of tables amongst others.

1. Goods are tangible, and transferable while the services are intangible and non
transferable.
2. Goods are separable, and non – perishable while services are inseparable.
3. Goods are homogeneous while services are heterogeneous

SERVICE MARKETING

Successful service marketing takes commitment and consistency, but they are hard to
achieve. Firms such as accountants, lawyers, consultants and executive recruiters fail to
commit to consistent marketing. Some are structural and some annoyances, but the
result is that service marketing fails more often than it succeeds.
Service marketing is difficult because :
Intangibility

• Lack of service inventories

• Not protected by patents
• Not easily displayed or communicated
• Pricing is difficult

Intangibility

• Service provider is involved in the production process

• Customer is involved in the production process
• Other customers are involved in the production process (shared experience)
• The mass production of services presents special challenges

Heterogeneity

Standardization and quality control are difficult to achieve

Perishability

• Matching supply and demand

 • Demand exceeds maximum available supply
• Demand exceeds optimum supply level
• Demand is below optimal levels of supply
• Demand and supply are at optimal levels

EXAMPLE

Despite these differences the marketing procedures relevant to profit oriented companies
can also be applied to non-profit organizations. Target marketing, differentiations and
marketing mix decision need to be made. These issues will be discussed with reference to
the special characteristics of non-profit organizations.
Non-profit organization can usefully segment their target publics into donors and clients
(customers). Within each group, sub segments of individuals and organization need to be
identified. These will be the target for persuasive communications, and the development
of services. The need of each group must be understood. For example the donors can
judge which non-profit CE centre to give the support n the basis of awareness and
reputation, the confidence that funds will not be wasted on excessive administration, and
the perceive worthiness of the cause. That is why the CE center needs not only to
promote itself but also to gain publicity for its cause. Its level of donor funding will
depend upon both of these factors. The brand name of CE centre is also important (it has
been discussed n previous parts).

Developing the marketing mix

Many non-profit organizations are skilled at event marketing. Events are organized to
raise the funds, including dinners, coffee mornings, book ales, sponsored walks and
others.
The pricing the services provided by non-profit organizations may not follow the
guidelines applicable to profit oriented pricing. Some non-profit organization even
provides free access to services. Like most services, distribution systems for many non-
profit organizations are short, with production and consumption simultaneous. This is the
case also of education. Such organization has to think carefully about how to deliver their
services with the convenience that customers require. For example, although the CE
center is based in big city, over half of the courses for ethnic minorities may be delivered
in small villages around the city.

Many non-profit organizations are adept at using promotion to further their needs. The
print media are popular with organization seeking donations for cases that are in common
interest of whole society (education for gypsies, raising awareness in the area of abused
children or women, courses to support and educate the political refugees …).
Direct mail is also used to raise the funds. Mailing lists of past donors are useful here,
and some organization use lifestyle geodemographic analysis to identify the type of
person who is more likely to respond to direct mailing. Non-profit organization must be
also aware of public opportunities which may arise because of their activities.

Pubic relations have an important role to play to generate positive word-of-mouth

communications and to establish the identity of the non-profit organization. A key
objective of communications effort should be to produce a positive assessment of the
fund-raising transaction and to reduce the perceived risk of the donation so that donors
develop trust and confidence in the organization and become committed to the cause.

PRODUCT MARKETING

Product marketing in a business addresses five important strategic questions:

• PRODUCT:What products will be offered (i.e., the breadth and depth of the
product line)? 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.

EXAMPLE: Swiss watch companies made 'Swiss watch actions' and enjoyed a
dominate position in the world market. By the 1970's they had introduced many
inventive variations of the 'Swiss watch action'. However, they completely ignored
the streams of independent invention that, together, created the quartz watch action.
During the early 1900's, aerospace scientists invented new materials like liquid
crystals, and laid the basis for miniaturized electronic circuitry, calculators -- and
watches. The number of employees making Swiss watch actions fell from 90,000 in
1970 to 30,000 in 1980 (the number of companies decreased from 1,600 to only 600).

The effect is significant: Still, today, only 35,000 employees manufacture Swiss
watch actions.

• Physical distribution :How will the products reach those (i.e., the distribution
channel and are there viable possibilities that create a solid business model)? (or
place) is one of the four elements of the marketing mix. An organization or set of
organizations (go-betweens) involved in the process of making a product or
service available for use or consumption by a consumer or business user.

EXAMPLE:

• Area on the world map, or country map, or city map

• Area 5"x5" on top of a counter in a convenience store
• Age group
• Ethnic group
• Income group
• A common interest
• A retail outlet
• Distributors
• A common personality
• A common lifestyle
• Occupation
• Clubs
• Hobbies
• Gender
• Size of organization
• Type of organization

Small companies often find a specialized place to sell (often referred to as a 'niche') as
an effective way to overcome huge competitors, who easily overlook 5% of their
market.

• Pricing: At what price should the products be offered? Pricing is the manual or
automatic process of applying prices to purchase and sales orders, based on
factors such as: a fixed amount, quantity break, promotion or sales campaign,
specific vendor quote, price prevailing on entry, shipment or invoice date,
combination of multiple orders or lines, and many others. Automated systems
require more setup and maintenance but may prevent pricing errors. The needs of
the consumer can be converted into demand only if the consumer has the
willingness and capacity to buy the product. Thus pricing is very important in
marketing.
• Promotion :How will customers be introduced to the products (i.e., advertising)?
Promotion is one of the four elements of marketing mix (product, price,
 promotion, distribution). It is the communication link between sellers and buyers
for the purpose of influencing, informing, or persuading a potential buyer's

EXAMPLE:

• Space advertising (magazine, internet)

• Direct advertising (postal, email)
• Telemarketing
• Personal sales (sales people, reps)
• Public relations (press releases, speeches)
• Media advertising (television, radio)
• Billboard (highway signs, hallway posters, blimps)
• Road Show (tradeshow, craft show)
• Incentives (tee-shirts, awards, vacations, contests)
• Discounts (sales, coupons)
• urchasing decision

B)PRODUCT POSITIONINGFOR COMPETITIVE ADVANTAGE

Positioning

Positioning is important because it’s the means by which goods and services can be
differentiated from one another and so gives consumers a reason to buy. Positioning
encompasses two fundamental elements. The first concerns the physical attributes, the
functionality and capability that a brand offers. For example, a car’s engine specification,
its design, and carbon emissions. The second positioning element concerns the way in
which a brand is communicated and how consumers perceive the brand relative to other
competing brands in the marketplace. This element of communications vitally important
as it is ‘not what you do to a product, it is what you do to the mind of a prospect’ (Ries
and Trout, 1972) that determines how a brand is really positioned in a market.
Understanding how brands are positioned provides important inputs not only to the way a
brand performs but also to the marketing communications used to support a brand.
Through communications, and especially advertising, information can be conveyed about
each attribute and in doing so adjust the perceptions customers have of the brand. For
example, Carrington’s might want to reposition the perception the market has of its brand
from range and quality of clothing to be more trendy and stylish; Fashion Now reposition
more on in-store service and convenience; and Budget Fashion and Just Fashion might
want to maintain their current positioning of low price, affordable, but also good value
for money. Following any necessary adjustments to the product, marketing
communications would emphasize these attributes and hope to further differentiate the
fashion retailers across their brands’ perceived positioning.
Positioning is essentially a task that revolves around the product and the way it is
communicated. The choice of approach depends on each individual situation facing
brand.
• Change the tangible attributes and then communicate the new product to the
same market. Regent Inns positioned themselves in 2007, ahead of the public
place smoking restrictions. The primary positioning on brand restaurant brands
such as Walkabout, Jongleurs, and Old Orleans moved to food, while lighting and
seating changes were made to change the atmosphere and ambience. The brands’
logos were refreshed and then Communicated to the target audience through a
mix of media (Godsell, 2007).
• Change the way a product is communicated to the original market. When the
World Golf Village in Florida was first developed, the retail, commercial,
residential resort failed to attract sufficient purchasers. The scheme was
repositioned using communications to convey not a ‘golf only development’
message but one that emphasized a well-balanced, developing premium
community.
• Change the target market and deliver the same product. On some occasions
repositioning can be achieved through marketing communications alone, but
targeted at a new market. For example, Lucozade was positioned from a drink for
sickly children, a niche market with limited volume sales growth, to an energy
drink for busy, active, and sports-oriented people. This was achieved through
heavyweight advertising campaigns.
• Change both the product (attributes) and the target market. For example, the
Indian company Dabur needed to develop but had to reposition itself as an FMCG
company, rather than retain its earlier position as an Ayurvedic medicine
manufacturer. To do this it had to develop new product offerings and new
packaging, it dropped the umbrella branding strategy, and adopted an individual
branding approach. This was then communicated, using leading Bollywood actors
and sports stars, to reach their various new markets.

The end result of positioning is the creation of a market-focused value proposition, a

simple clear statement of why the target market should buy the product.

QUESTION#3

Product life cycle

Product life cycle management (or PLCM) is the succession of strategies used by
business management as a product goes through its life cycle. The conditions in
which a product is sold (advertising, saturation) changes over time and must be
managed as it moves through its succession of stages

Market introduction stage

 1. costs are high
2. slow sales volumes to start
3. little or no competition
4. demand has to be created
5. customers have to be prompted to try the product makes no money at this stage

MOST RISKY STAGE

There are two different strategies you can use to introduce your product to consumers.
You can use either a penetration strategy or a skimming strategy.

• If a penetration strategy is used then prices are set very high initially and then
gradually lowered over time.
• This is a good strategy to use if there are few competitors for your product. Profits
are high with this strategy but there is also a great deal of risk.
• If people don't want to pay high prices you may lose out. The second pricing
strategy is a skimming strategy.
• In this case you set your prices very low at the beginning and then gradually
increase them. This is a good strategy to use if there are a lot of competitors who
control a large portion of the market.
• Profits are not a concern under this strategy. The most important thing is to get
you product known and worry about making money at a later time.
• Products at this stage have to be carefully monitored to ensure that they start to
grow. Otherwise, the best option may be to withdraw or end the product.

Growth stage

1. costs reduced due to economies of scale

2. sales volume increases significantly
3. profitability begins to rise
4. public awareness increases
5. competition begins to increase with a few new players in establishing market
6. increased competition leads to price decreases

MOST CRITICAL STAGE

This stage is most critical because 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.
• The Growth stage is where your product starts to grow. In this stage a very large
amount of money is spent on advertising.
• You want to concentrate of telling the consumer how much better your product is
than your competitors' products.
• There are several ways to advertise your product. You can use TV and radio
commercials, magazine and newspaper ads, or you could get lucky and customers
who have bought your product will give good word-of-mouth to their
friends/family.
• If you are successful with your advertising strategy then you will see an increase
in sales. Once your sales begin to increase you share of the market will stabilize.
• Once you get to this point you will probably not be able to take anymore of the
market from your competitors

Maturity stage

1. costs are lowered as a result of production volumes increasing and experience

curve effects
2. sales volume peaks and market saturation is reached
3. increase in competitors entering the market
4. prices tend to drop due to the proliferation of competing products
5. brand differentiation and feature diversification is emphasized to maintain or
increase market share
6. Industrial profits go down

MOST PROFITABLE STAGE

Successful products attract other competitor businesses to start selling similar products.
This indicates the third stage of the life cycle - maturity. This is the time of maximum
profitability, when profits can be used to continue to build the brand

• 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

Saturation and decline stage

1. costs become counter-optimal

2. sales volume decline or stabilize
3. prices, profitability diminish
4. profit becomes more a challenge of production/distribution efficiency than
increased sales

MOST NEGITIVE STAGE

• 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
• 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.

QUESTION#4

The marketplace forces of supply and demand determine the price. If demand grows or if
a disruption in supply occurs, there will be upward pressure on prices. By the same token,
if demand falls or there is an oversupply of product in the market, there will be
downward pressure on prices.Those principles apply at the service station level as well. If
a retailer prices its product too high, and without regard to competition, the retailer's
customers may take their business to another retailer with lower prices. If a retailer loses
enough volume, the retailer may then reduce prices in order to retain its customers.
Competition among retail outlets thus affects pricing. You may notice that sometimes
there are price differences between two gasoline stations on a busy street corner and
between those outlets and the only station on a long stretch of highway. More choices
generally mean more competition for business.And although retail outlets may sell
gasoline carrying the brand of a major oil company, most dealerships are owned and
operated by independent business people who are free to set the prices for their products
and services

1. CRUDE OIL Like agricultural products, such as wheat and corn, and precious
metals, such as silver and gold, crude oil is traded on the world market. Recently,
crude oil prices have risen dramatically, driven by rising global demand and
political instability in several oil producing countries. Crude oil prices are
important in determining gasoline prices because crude is the primary raw
material used to produce gasoline and other petroleum products. In some cases,
the price of crude oil may account for up to half the price of a gallon of
gasoline.Example:There are 42 gallons of oil in each barrel of oil. If the price of
crude oil is $75 a barrel, the cost of the raw material required to produce a gallon
of gasoline is $1.78. This figure does not include costs incurred to transport crude
oil to a refinery, refine the oil into gasoline, transport the gasoline to distribution
hubs or wholesalers, deliver the gasoline to retail locations or operate service
stations.
2. GASOLINE While crude oil is traded in a global market, gasoline is part of a
regional market. Crude oil prices are important in determining gasoline prices
because crude is the primary raw material used to produce gasoline. The price of
crude oil may account for over half the price of a gallon of gasoline.Transitions in
supply can also affect the short-term availability of gasoline. Going into the peak
summer driving season, refineries are adjusting their gasoline formulas to help
protect the air quality in warmer weather. And, because of changes to federal
energy legislation passed in 2007, many states are switching to ethanol-blended
gasoline.Many states require specific formulations of gasoline — there are
currently 18 separate gasoline formulas for different regions of the country-and it
is often difficult to import gasoline supplies from one region to another.Each
gallon of gasoline also is subject to numerous taxes and fees, which vary by state.
In California, the price of gasoline includes a federal motor fuel excise tax, a
California motor fuel excise tax, state and local sales taxes as well as other state
and local fees totaling more than 58 cents a gallon. After the crude oil is
processed through the refinery, the finished gasoline product is transported to a
terminal, where it may be sold to a wholesaler for distribution to the wholesaler's
retail network or delivered to the retail location. There the retailer sets the "street
price," which includes a margin to account for the retailer's cost of doing business
at that particular location and the retailer's profit.
3. NATURAL GAS Costs related to natural gas consist of four main components:
production, transmission, distribution and commodity price as determined by the
marketplace. When the gas is produced, it is transmitted over long distances by
pipeline from the wellhead to a local gas company. Once at the gas company, it is
 stored and then distributed to local customers. The price of natural gas consumed
is determined by supply, demand and other market conditions

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

Design

• Flyers
• Brochures
• Catalogs
• Documents
• Newsletters
• Sales Literature

Printing

• One or more colors.

• Presswork of all Sizes.
• Embossing.
• Bindery.
• 4 color process.
• Web printing.
• Hot Stamping
• Laminating.

Letter shop
• Folding
• Insertion
• Labeling
• Sealing
• Bulk
• First Class
 PEL COMPANY
Direct Marketing Channel:

It’s a marketing channel that has a no intermediary levels. PEL’s power division uses
this type of channels. Its major clients are large organizations and not the end user. So
people from these organization directly contact PEL’s marketing department of power
division when tenders are flooded, design, specification and price are discussed

Media for Advertising:

There are three types of media on which advertisement are given:

Electronic Media

• In the electronic media, POEL is using PTV, STN, PTV World.

Print Media

• National and local Newspaper

• Magazines and Periodicals

Out-Door Media

• Normal Boarding
• Neo-signs

Incentive Schemes for Customer and Retailers.

For attracting dealers and potential customers, Pak Electron Limited (PEL use the “Pull
and Push Strategy”.

PEL don’t’ have too many outlets and does its major selling through the dealers and
retailers, some of the incentives given to the dealers are:

A Credit of 60 days.
Rs.400/ set if dealer sells a certain amount of sets in six month.
Pel gave a car to the dealers if they achieve the set target.

Air Conditioners:

· Against the sale of 50 air conditioners discount is Rs.200/unit

· Against the sale of 50 air conditioners discount is Rs.400/unit.
Refrigerator:

· For sale of 150 or more refrigerators, the dealer is awarded with a Dubai Tour.
All above schemes are changing according to period.
Personal Selling:
The other promotional activity that the company takes on is personal relating company
representative visit their existing and potential clients and describe the technical aspects
and unique selling feature of their products.
Public Relation /publicity:
PEL tries to build its image among its consumers, personal and general public. This
because reputation of the business in recent years considerably transited. Almost no
segment of business has escaped the attacks of activities identified with the social cause
such as consumerism, environmentalism, employee’s safety etc.
Management of (PEL) considers value of public relationing in promotion mix because
• It is quite inexpensive
• Public relations can generated sale leads
• Public relationing has more creditability the advertisement
In so far as publicity is concerned (PEL) is not using promotional tool effectively,
sometimes press releases are published but there is no as such publicity by PEL.
However, some activity is taking place. That consists of sponsorships of school cricket
teams. But more needs to be done about it.
2) THEY MAKE THEIR ORDERS EASY
PEL has got a very effective distribution system that ensures the widespread supply of
company’s product through out the country for the sake of proper management.

PLACE :( DISTRIBUTION)
Most Producer use intermediaries to bring their products to market. They try to forge a
distribution channel a set of inter dependent organizations involves in the process of
making a product or service available for use or consumption by the consumer or
business user.

Channel Levels:

Disrtibution Channels can be described by the numbers of channel levels involved. PEL
uses both of the two major Marketing channels.

Direct Marketing Channel:

 It’s a marketing channel that has a no intermediary levels. PEL’s power division uses
this type of channels. Its major clients are large organizations and not the end user. So
people from these organization directly contact PEL’s marketing department of power
division when tenders are flooded, design, specification and price are discussed.

Indirect Marketing Channel:

It is a marketing channel containing one or more intermediary levels. PEL’s appliances

division works this way. These products are sole through authorized dealer shops or
PEL’s own outlets.

DISTRIBUTION SYSTEM:

Appliance Division:

PEL has got a very effective distribution system that ensures the widespread supply of
company’s product through out the country for the sake of proper management.

Zone Area Covered

Northern Zone Punjab and N.W.F.P
Southern Zone Sindh and Baluchistan

REGIONS

The zones have been further divided in to six different regions.

• Karachi
• Multan
• Lahore
• Gujranwala
• Rawalpindi
• Faisal-Abad

The distribution process at PEL Appliance is being looked after by the following
personal.
1. National Manager Sales (NMS)
 National Manager Sales (NMS) mainly responsible for watching the functioning of all
Regional Managers Sales, Area Sales Officer and Sales Office at the National Level.

2. Regional Manager Sales (RMS)

Managers Sales (RMS) controls sales in his specific region and is the connecting link of
all area offices currently the company has two controlling operation in Multan Region.

3. Area Sales Officers (ASO)

Area sales officer is responsible for making contacts with dealers product display and
looking orders in his specific area. The company has at present seven ASOs Mongering
operations in Rawalpindi, Gujranwala, Multan, Bahawalpur, Lahore etc.

4. Sales Officers (SO)

Sales officer (SO) looks after the sale operation in particular city. Currently there are
four sales officers two in Lahore, one in Faisalabad and Gujranwala each.

5. Assistant Manager Sales (ASM)

Assistant Manager Sales (ASM) looks after the proper functions of sales in Southern
Zone.

3) DIFFERECE FROM COMPETITORS

PEL DIFFRENCIATE IN FOLLOWING ASPACTS:

PRICEING:

• First the tender is received which shows the demand of the product.
 • It is send to the production department.
• They make calculations about material cost, labor costs and Factory overhead,
further taxes and duties are also calculated.
• Investment is calculated
• Then gross margin is added.
• Gross Margin= Labor Cost + FOH + Profit+ Financial cost + Miscellaneous cost
• Financial cost is found out
• Term and conditions may be different in some cases.

Appliances Division Price Procedures

• Sales tax, Octroi, excise duty is calculated above the cost of production.
• There is also a pricing trend depending on the models most demanded.
• Price is charged according to demand.
• Consumer product forces also show seasonal, variation i.e., their prices raise
during wedding season and before Eid-ul Azha and Eid-ul-fitar.

PROMOTION MIX

• Pak Electron Limited uses advertising personal selling, sales promotion and
public relations to pursue its advertising and marketing objectives

COMPETITIVE ADVANTAGES

• Fully modernized industry

• Having internationally competitive products
• Capacity to manufacture 400000units annually
• Potential to produce complete range of central air conditioning system of textile
industry
COMPETITIVE DISADVANTAGES

• Underutilized capacity of manufacturing units

• Shutdown units in to industry
• High cost of production
• Declining growth into industry
• Absence of export in international market

ASIGNMENT # 2

THE DISTRIBUTION
Abstract:
In most companies, there is ongoing conflict between managers in charge of covering costs (finance and
accounting) and managers in charge of satisfying customers (marketing and sales).
Accounting journals warn against prices that fail to cover full costs, while marketing journals argue that
customer willingness-to-pay must be the sole driver of prices. The conflict between these views wastes
company resources and leads to pricing decisions that are imperfect compromises. Profitable pricing
involves an integration of costs and customer value. To achieve that integration, however, both need to let
go of misleading ideas and form a common vision of what drives profitability.
.Introduction:
The third of the five Cs of value-marketing strategies asks managers to communicate
the value delivery of their offerings to their target customers.
Distribution strategy
In developing channel strategy, managers have two options to communicate value to
their target customers:
"Push "strategies. The focus of communication is on the supplier's next immediate
customer. Push strategies are aimed at propelling the supplier's offerings through the
channel. For example, some manufacturers of over the-counter (OTC) drugs and
automotive paints do not promote these products directly to ultimate consumers.
Instead, they focus on the retailer or auto-repair shops, expecting these channel
firms to make the sale to the consumer. Channel firms that carry a variety of
competing products may favor push strategies because they permit promoting
products that are most profitable to the channel firm (the channel firm's customers
frequently do not have strong preconceived preferences). Supplier softens find push
strategies less expensive to implement.
"Pull" strategies. The focus of communication is on the end customer or a channel
member closer to the end customer. Such strategies are aimed at pulling the
supplier's offering through the distribution channel.
For example, Intel maintains brand preference by advertising its chips to end
consumers with the "Intel Inside®" campaign. The intent is to create a preference for
computers with its chips-causing retailers to favor Intel based computers. Channel
members benefit from pull strategies when customers are "presold"for particular
brands. Suppliers gain some control over channel firms because it is more difficult for
channel firms to switch customers to competing brands.
Push strategies depend on channel intermediaries to carry the value message
through the rest of the channel. Pull strategies "presell" the offering to the target
customers, who then go to channel intermediaries with brand-specific demands.
Push strategies are essential when the supplier's product and its differential value
are not apparent to target customers, or when its value delivery cannot be easily
made salient to target customers. For example, most automobile buyers are unaware
of the specific machine tools used in the manufacture of their automobile
or of the specific brand of paint that covers it. For machine tool suppliers or
automotive-paint manufacturers, convincing manufacturer that their products can
make automobiles better or cheaper isomer effective than trying to convince
consumers to buy vehicles manufactured with a specific brand of machine tool or
utilizing a particular paint. The main drawback to push strategies is they depend on
the distribution channel to convey the value message to ultimate consumers. In some
cases, push strategies may require managers to invest in developing the value-
marketing skills of the entire distribution channel or risk having the channel not
conveys the value theme.
Pull strategies carry the value message directly to target customers. A pull strategy
often gives a supplier greater control in communicating value to target customers.
Further, pull strategies are often favored by channel intermediaries because they
often create "presold" customers, thus reducing the marketing effort required by
channel firms. More-exclusive retailers who compete with low-price outlets often
prefer suppliers who invest in building brand image. Also, effective pull strategies can
provide suppliers insurance against channel intermediaries who try to
opportunistically sell competing offerings-customers arrive at the channel firm with
strong brand preference.
1.The choice between "push" and "pull" is usually difficult. Push strategies require
both costly incentives forth retail channel partners and limited distribution. In
introductory and growth markets, channel
Intermediaries must invest substantial resources in targeting potential customers and
communicating value in return for uncertain sales that may occur considerably later.
As a result, suppliers have to share a large portion of their sales price with channel
firms as an incentive for the selling effort. In addition, when sales are uncertain or do
not follow quickly, manufacturers generally must pay high fees for promotional
efforts, such as cooperative advertising and in-store demonstrations.
Given these costs, it would seem that a pull strategy might be preferable, but there
are three strong considerations recommending the push approach.1. The costs are
large variable-being proportionate to the amount of sales and the number of retail
distribution outlets. This is a big advantage for a product that is starting out small.
The cost of ineffective advertising campaign could be prohibitive.
2. The retailers have retargeted the market. In markets where demand is diffuse-few
people are
Potential purchasers-the retailer (who may be a catalog or e-commerce company)
has already identified them. Either the target consumers already know where to buy
or retailers own a highly coveted customer list. For sales of scuba equipment, aids to
the physically impaired and topeopleinterested in do-it-yourself home repair, no
advertising outlets exist to reach a majority of the potential buyers. All of the
potential purchasers, however, will eventually need to visit a retailer or web site, or
read a catalog which, given an adequate incentive, can promote the product.
3. The retailers or others in the chain "augment" the product. Few people would pay
the prices for
Mary Kay cosmetics if they were available on a rack in a drug store. The value is in
the Mary Kay experience of being "made up" in the privacy of home. Mary Kay
creates that experience with team of independent distributors who are motivated by,
among other things, high margins.
4. Pull strategies require sophisticated marketing, expertise that a firm may lack.
Managers must know not only who might buy their product, but also understand why.
They must connect their offerings to benefits and offerings that these target
customers find salient, which may be difficult
When channel firms augment the offering in a way that hides the supplier's
components, and they
must create messages that can be indirectly communicated convincingly in limited
space or time.
Still, in most mature mass markets, pull strategies are preferred. They are cost-
effective for high-volume, mass-marketed products, and they give the seller control
over the message. Moreover, the mass-market channel partners like Wal-Mart,
grocery chains, and drugstores prefer pull strategies despite lower margins.
They make their money-moving inventory efficiently, not by selling. Moreover, a pull
strategy creates stronger brand identity that increases loyalty.
Pull strategies are an effective counter to brand competition for channel attention.
When multiple brand competitors are competing for the same customers,
opportunistic channel firms will play them against each other to extract higher
margins and fees. Brands that are large enough to support the cost of a pull strategy
can undermine the opportunist's ability to do this. Because customers are presold on
the supplier's brand, an attempt to switch them to a competing product is more
difficult. Pharmaceutical manufacturers, which traditionally used only push
strategies, have in the United States adopted the pull approach for some products.
Managed-care practices have encouraged substitution of branded pharmaceuticals
with generic products and have discouraged prescribing "quality-of-life" drugssuchas
nonsedating antihistamines and drugs for treatment of erectile dysfunction-that have
no effect on overall health. The pull strategy educates patients to ask for these drugs
by brand name.
Even some suppliers of materials that are not apparent in the finished good have
developed "branded ingredient" pull strategies. W. L. Gore, Inc., uses such a strategy
to promote Gore-TexTM apparel, even though W. L. Gore does not manufacture
apparel. Similar strategies have been developed by Du Pont
(Stainmaster carpet), Intel ("Intel Inside"), and G. D. Searle (NutraSweet in foods and
beverages).
Branded-ingredient strategies are a special type of pull communication strategy in
which a component not immediately transparent to the end user can be linked to
benefits and value the target customer highly desires.
The selection of the appropriate channel communication strategy (push or pull) has a
strong impact unsuccessful pricing-strategy implementation. This impact is
manifested in the ability of suppliers to communicate their value delivery to target
customers. The organizations multidimensional problems can be reduced to an
approaching in one dimension. The reductionism that is a heir of the Descartes’
system is opposed to the concept of global system, understood as a result of a
systemic reflection.
Some other thinkers are placed in the same context , like the biologist P.A. Weiss
who asserted that not always “one plus one is two”, according to a system parts’
complementariness. R.A. Ackoff proposes radical change within us regarding the
thinking modules and our ways of understanding the reality. Paul
Valery, by analyzing the method of Leonardo da Vinci, proposed a more suggestive
method of environmental perception: the one who represents a tree must also
represents the sky and the earth foreseeing and keeping it. It is an almost sensitive
logic, but also unknown.
The knowledge object must be perceived as an inserted, active force that is sunk in a
greater whole. This global vision will allow us to approach the organization as a
system, the interactions between actors as within a competing system We must
admit that everything is changing. There are fields within which the Taylor’s spirit
influences the decision makers’ behavior (the management control, the budgets)
where every deviation from normality is considered an anomaly.
The wish for order and for the achievement of that was forecast is found at every
manager. Disorder and objectives missing are difficultly accepted. Every thing is
perfect, only there is a “but”.
This “but” is determined by the many competing and social instabilities that must be
taken into account and that are making from the change the living rule of every
organization. The society can be changed by decrees and laws. Every organization
must develop a culture of changing , if not it is unable to face the crises created by
internal and external factors.
The developing of the (strategic, organizing, sizing etc.) culture of changing makes
from the change abnormal variable of the company decision making process.
By vulnerability we understand the possibility of being attacked or hurt. In this sense,
every company invulnerable because its success depends on its field competitors
attitude and on its environmental change adapting capacity. The idea of vulnerability
is analyzed in risk terms and is the main appreciating criterion
of every strategy. The strategic vulnerability regards the firm position in its
competing environment:
“When a company realizes its diagnostic regarding the forces that are influencing the
competition in its field and their deep causes, it is in measure to identify its forces
and weaknesses in relation to the rest of its sector. At strategic level, the forces and
weaknesses that are identified are regarding the firm position related to the
identified causes of each force of the competition. What is the firm situation related
to the products that must be substituted, related to the entrance barrier, in facing
the established competitors.
Push strategies are essential when the supplier's product and its differential value
are not apparent to target customers, or when its value delivery cannot be easily
made salient to target customers. For example, mostautomobile buyers are unaware
of the specific machine tools used in the manufacture of their automobile
or of the specific brand of paint that covers it. For machine tool suppliers or
automotive-paint manufacturers, convincing manufacturer that their products can
make automobiles better or cheaper isomer effective than trying to convince
consumers to buy vehicles manufactured with a specific brand of machine tool or
utilizing a particular paint. The main drawback to push strategies is they depend on
the distribution channel to convey the value message to ultimate consumers. In some
cases, push strategies may require managers to invest in developing the value-
marketing skills of the entire distribution channel or risk having the channel not
conveys the value theme.
Pull strategies carry the value message directly to target customers. A pull strategy
often gives a supplier greater control in communicating value to target customers.
Further, pull strategies are often favored by channel intermediaries because they
often create "presold" customers, thus reducing the marketing effort required by
channel firms. More-exclusive retailers who compete with low-price outlets often
prefer suppliers who invest in building brand image. Also, effective pull strategies can
provide suppliers insurance against channel intermediaries who try to
opportunistically sell competing offerings-customers arrive at the channel firm with
strong brand preference.
The choice between "push" and "pull" is usually difficult. Push strategies require both
costly incentives forth retail channel partners and limited distribution. In introductory
and growth markets, channel intermediaries must invest substantial resources in
targeting potential customers and communicating value
in return for uncertain sales that may occur considerably later. As a result, suppliers
have to share a large portion of their sales price with channel firms as an incentive
for the selling effort. In addition, when sales are uncertain or do not follow quickly,
manufacturers generally must pay high fees for promotional efforts, such as
cooperative advertising and in-store demonstrations.
Given these costs, it would seem that a pull strategy might be preferable, but there
are three strong considerations recommending the push approach.
Conclusion
In markets where demand is diffuse-few people are potential purchasers-the retailer
(who may be a catalog or e-commerce company) has already identified them. Either
the target consumers already know where to buy or retailers own a highly coveted
customer list. For sales of scuba equipment, aids to the physically impaired and to
people interested in do-it-yourself home repair, no advertising outlets exist to reach a
majority of the potential buyers. All of the potential purchasers, however, will
eventually need to visit trailers or web site, or read a catalog which, given an
adequate incentive, can promote the product.
An efficient strategy regarding the competition involves offensive or defensive
actions that aim to place the
Company into a supportable situation related to the five forces of the competition.
As an outcome, the company management must permanently appreciate the firm
vulnerability degree and evaluate the resulting risk and everything related to the life
expectation and the profitability expectation as these ones are defined in its
objectives.
References:
1. Micu Adrian, Marketing strategic, Editura Didactica si Pedagogica, Bucuresti,2004
2. Micu Angela-Eliza, Marketing international, Editura Didactica si Pedagogica,
Bucuresti, 2004.
3. Micu Adrian, Strategii de marketing, Editura Libertatea, Serbia, 2006.