Wholesaler, market demand, franchising, merchandising and marketing | Concepts of Marketing

Concepts of Leadership and Marketing

Table of contents

1. What is a wholesaler or distributor wholesaler
2. What is the measurement of the market demand
3. What is marketing
4. What is franchise marketing
5. What is marketing service
6. What is direct marketing
7. What is target market
8 marketing
9 Merchandising
10 mixture of market



The wholesaler or wholesale distributor (w: in: Wholesale) is a component of the distribution chain, in which the company does not in direct contact with consumers or end users of their products, but it delivers this task to a specialist. The wholesaler is an intermediary between the manufacturer (or producer) and end user:
• buy from a producer (independent or associated) in cooperative, a manufacturer, another wholesaler or broker, and
• sell to another wholesaler, a manufacturer, a retailer, but never to the consumer or end user.
In the case of agricultural products, they buy from small farmers, production grouped, classified it, they packed, they labeled... The wholesale companies are losing prominence in favour of large companies of distribution or associations of retailers, which are assuming functions of wholesalers.

Classification of wholesalers

Wholesalers can be classified according to several criteria.
• Depending on its location can be wholesalers of origin - in Spain, in agricultural products, livestock and fishing are often called auctions - and destination wholesaler, these last also called dealers.
• According to the linkages with other wholesalers can be independent and central purchasing.

Why do the wholesalers?

When the amount of retailers or customers of a company is very large or are widely dispersed geographically direct selling becomes a channel of high cost and complex management. the main reasons are: the administrative complexity involved in managing a large number of customers, large sales force necessary to serve the clientele, the follow-up of numerous orders and little size, sale or offices dispersed offices, stock management global and, finally, funding of the canal (accounts receivable management).
In these cases it is usually more efficient the use of wholesalers or distributors, which in turn cater to retailers or retailers. Distributors are specialists in the management of large volumes of sales. They have the adequate infrastructure in terms of sales, physical goods distribution systems and control of credit to its customer base.

Advantages and disadvantages of wholesalers

Small businesses just starting out, a big Distributor Association can be useful, because you can benefit from the image of being a distributor of prestige customer and can quickly achieve a large portfolio of clients.
The main disadvantage of the wholesalers is that add costs to the product and which decrease the profitability of products marketed. Wholesalers require margins that are added to those granted to retailers; Although these margins are ultimately his reward for the services provided.
In addition distributors can have a great bargaining power against the manufacturers whose products distributed, because they represent a large volume of total sales of the manufacturer. It also has the negative effect of concentrating the demand, so the loss of the Distributor or its insolvency endanger the sales volume and total revenue of the manufacturer.
However, wholesalers are basic links in the distribution channel to consolidate the distribution of products or services, to significantly increase the capillarity of a distribution channel and its maturity.

Conflicts in distribution channels

Is particularly complex management of wholesale distribution channels, in which most of the problems arise because of conflicts with other channels (direct for the most part); disputes that should be settled fairly and balanced, to avoid the loss of confidence of the channel in the manufacturer of that good or service.



The measurement of demand describes the activity of preparing quantitative estimates of it.
Demand can be measured for six different levels of product (product line, product shape, line of product, the company's sales, industry sales, domestic sales), five different levels of space (customer, territory, region, country, world); and three different levels of time (short, medium and long range).
Each type of demand measurement fills a specific purpose. Thus, a company could make a forecast of the short range of the total demand for a particular product line, to provide a base that serves for ordering raw materials, plan production and program funding in the short term. Alternatively, you could prepare a long-range regional demand forecast for its main product line, in order to have a basis to consider the expansion of market.
They are practical methods for the estimation of the current market demand for goods and services produced by enterprises.
There are four types of estimates that companies can perform:
Total market demand: For a product, it is the volume total of operations carried out by a group of consumers in a geographic area specified, for a specified period of time and under a stopped marketing program. It must be emphasized that it is not constant, but that depends on a number of conditions, such as the State of the economy or a marketing program (expenditures on promotions or product characteristics) that will make this varié.
Market demand by segment: it's the demand by market segment or a particular kernel. In principle, the company with greater demand, or those that, yet be greater demand, adapt better to their competitive resources.
Total industrial demand: is the total volume of transactions requested by the business market. It is adding to each competitor sales (this information is not easy, since many competitors are not willing to provide it). One solution might be to estimate the volume by indirect methods: for example, based on the orders of raw materials, in the number of shifts worked, etc.
Market share of each company: is the turnover of the company in relation to the competitors. In this regard, it is interesting to know: the share of total market, that is, the relative portion of the market with regard to the competitors.

Key concepts in the measurement of the demand of the market

The measurement of demand is plagued with a confusing number of terms. Company officials talk of forecasts, predictions, potential, estimates, projections, goals, targets, quotas and budgets. Many of these terms are redundant. The main concepts in the measurement of demand are: market demand and the demand of the company. Within each one of them to make the distinction between function of demand, potential and prognosis.
Market demand, for a product is the total volume that would buy a set of customers defined in a geographical area defined in a defined period of time and in an environment of market defined under a defined marketing program.
The most important thing that is necessary to understand regarding the demand of market, is that it is not a simple number, but a function. For this reason, also referred to as market demand function or function of the market response. The function of market demand is shown as a curve that rises with levels highest marketing work in the industry. This curve is defined for a given market environment.
It is necessary to determine the configuration of the curve for each market. The minimum of the market, are basic sales, which would take place without any outlay on marketing to stimulate the sales made by the industry. When one higher marketing expenditure already would not stimulate additional demand, it is suggested a limit greater than market demand and is known as the market's potential.
The distance between the minimum of market and market potential shows the overall sensitivity of the demand to the marketing, in that industry.
We can think of two extreme types of markets: the expandable and the not expandable. The expandable, which optimize the markets for new products, is affected highly in its total dimension by the level of disbursements in marketing. Not expandable market, is not as affected by the level of disbursements in marketing. The firm that sells in a non-expansible market can be made the size of the market (primary demand level) and focus their marketing resources for the proportion of the market that you want to (selective demand level).
The demand for the company, is the participation of the company in the market demand. As well as the demand of the market, referred to as response of sales role or role of demand of the company and is subject to all of the determinants of the demand of the market, most anything that influences the market share of the company.
But what about what influence the market share of the company? The most popular theory is that several competitors market shares will be proportional to their participation in the marketing effort. This normal expectation may be called fundamental theorem of determination of market share.
Demand for the company described sales is estimated at alternative levels of work of marketing for the company. It is management choose one of those levels. The level chosen marketing work involves a particular level of sales, which may be called the company's sales forecast.
The forecast of the company's sales, is the level expected of the company's sales, based on a marketing plan chosen and a so-called market environment.
A sales quota is the goal of sales for a line of product, the company division or sales representative. It is primarily an administrative device to define and stimulate the work of sales.
The sales quota set by management is through a joint consideration forecast of the company and the psychology of stimulating their achievement. This last consideration usually leads to set sales quotas that male a figure slightly higher than the sales forecast estimated.
A sales budget is a conservative estimate of the volume of sales that is expected and is used primarily to make ordinary purchases, production and cash flow decisions.
The sales budget is reached through the joint consideration forecast sales and the need to avoid an excessive investment, where the forecast not materialize. This last consideration usually leads to fix a budget of sales slightly below the forecast of the company.
The potential of the company's sales, is the limit which reaches the company demand as it increases the effort of marketing, in relation to competitors. The absolute limit of the demand of the company, heat, is market potential. The two would be the same if the company would cover 100% of the market, i.e., if the company was a monopolist

Methods of estimation of the current demand

There are two types of estimates of current demand that a seller might be interested: full potential of the market and potential territorial. The full potential of the market is of interest whenever a seller faces is the decision to introduce a new product or to cancel any existing. The seller wants to know if the market is big enough to justify the participation of the company.

The full potential of the market:

It is the maximum amount of sales (in units or money), which may be available for all companies within an industry, during certain period of time and under a given level of effort of marketing in the industry and certain environmental conditions.
Once it has estimated the total potential of the market, it must be compared with the current size of the market. The current size of the market is the current volume (in units or money), which is commonly purchased. This current market size is always smaller than the full potential of the market.

All the companies concerned:

• Select markets which sell
• Assign your budget optimally between these markets marketing
• Review your performance in different markets
The basis for these decisions is the competent estimates of the market potential of different territories. To do this, it has two main methods. The first or method of accumulation of markets, is primarily used by industrial companies. Second or purchasing power index method, primarily used it goods companies for the consumer.

Market forecasts

Only will occur in reality one of the many possible levels of marketing work in the industry. Corresponding to the expected effort market demand, is known as market forecast. Market forecast shows the level of demand expected in the market for the estimated level of marketing in the industry and given environment work. Market forecast shows market demand that is expected and not the highest possible market demand.
For the latter, we have to display the level of market demand for a job in marketing for the industry of very high level, where any additional increase in the work of marketing would exert little effect to stimulate additional demand.
Market potential is the limit which comes the demand of the market when the industry marketing effort becomes the infinite, for a given environment.



According to the American Marketing Association "marketing is the process of planning and executing the conception, pricing, promotion and distribution of products to create exchanges that satisfy individual objectives and organization"


• MARKETING PLAN strategic functional plan developed for each unit strategic business (SBU) that outlines the strategic role of marketing within a firm business plan.
• ANNUAL marketing PLAN an operational plan that governs all daily activities a firm marketing and direct the common actions of middle managers and line.
• INDIVIDUAL business PLAN a personal plan that aims to demonstrate how each partner will achieve its portion of strategic business, marketing, strategic and annual marketing plans.





Sense of purpose



State of affairs



Courses of action



Pathways to success

Corporate strategy

Corporate vision

Corporate analysis

Corporate strategies

Corporate philosophy

Corporate organizational plans

Business strategy

Business mission

Business analysis

Business strategies

Concept of business

The strategic business unit plans

Functional strategy

Marketing goals

Analysis MIC

Marketing strategies

Concept of marketing

Strategic marketing plans

Operational strategy

Marketing objectives

SWOT analysis

Marketing tactics

Marketing practices

Annual marketing plans

Personnel strategy

Personal intentions

Auto claim

Projects of tasks

Personal action plans



According to Meyer, H. in his book entitled Marketing, sales to the retail franchises, concessions, or licences, defined as a contractual agreement whereby a parent company (franchisor) grants you a small company to an individual (franchisor) the right to do business under specific conditions.
A short way to say that a franchisor has the right name or trademark and sells the right to a franchisee; Knowing this as product license.
The format of business licence is a more extensive and continuous relationship that exists between two parties, which often includes a full range of services, including selection of site, training, supply of products, marketing and also sponsor plans.
The spectacular growth of the dealers represents the rapid increase of two trends: the rush of individuals to become their own bosses and the need for companies to find more efficient and inexpensive ways to expand.
Meyer, H. and Kohns, S. set the time during which a licensing agreement is valid is called followed by the contract and can range from five years to perpetuity; where are most of the agreements for twenty years. After the period has expired, the franchisor often has the right to repurchase or resell the unit.
Unlike Kennedy, argues that the franchise is a privilege granted by a governmental agency to an individual, a partnership or a corporation, for use of a public company, a street or a road, or space above or below the street or highway. The franchise may be for a fixed term of years, for an indefinite period or perpetuity.
Phillips Kothler in his book entitled marketing direction established as concept of franchise or concession as an agreement with the dealer in the foreign market, providing the right to use the manufacturing process, brand, patent, trade secret and other points of value, in Exchange for fees or royalties.
Then will be what is the franchisor in return for the franchise:
A right of franchise. It is an advance payment of only once that dealers make directly who granted the franchise to be part of the system of concessions. The payment reimburses the franchisor costs location, qualification and training of the new dealers.
A royalty. It is an annual payment, between 1% and 20% of the sales of the dealer, who is paid to the franchisor. These payments represent the costs of doing business as part of an organization of concessions.
A right of publicity. It is an annual payment, usually less than 3% of sales, covering the corporate advertising.
Gains from sale of equipment, supplies or services or finished products to the dealer.
In view of the above mentioned should be made clear that not all dealers win, since allowances are subject to the fate of the economy in which gravitate. If an economy is growing, also franchises grow, otherwise; When the economy of country or region not develops, franchises may not do so. But if compare with other businesses small, the chance of survival are better in the case of concessions, because that many figures show that approximately 5% of the total number of franchises is they discontinue every five years, compared with 50% of new independent businesses.


According to the United States small business administration, the franchise has several advantages over independent retailers. They are:
Reputation: he is an established and well-known licensing system, the new dealer doesn't have to work to establish the reputation of the firm. The product or service being offered already is accepted by the public.
Working capital: costs less money to operate a concession business, because the franchisor gives the dealer good controls of inventory and other means to reduce costs. When necessary, the franchisor can also give financial assistance for operating expenses.
Experience: the advice given by the franchisor outweighs the inexperience of the new owner.
Management assistance: a small independent store owner has to learn everything, and an experienced retailer may not be a master in all aspects of finance, statistics, marketing and sales promotion. The best franchise companies give the dealer continued assistance in these areas.
Utilities: assuming reasonable costs of franchise and supply agreements, the dealer usually can expect a reasonable profit margin, because the business is operated with the efficiency of a chain.
Motivation: since the dealer and the franchisor benefiting from the success of the operation, both work properly to do so.


The motivations of the franchisor to create a franchise are essentially as follows:
1. have access to a new source of capital, without losing or diluting the control of the marketing system.
2. avoid the high fixed costs which usually involve a system of torque distribution warehouses.
3 cooperate with dealers independent but highly motivated as owners of their businesses.
4 cooperate with local businessmen, well integrated in the middle of the city, region or country
5. create a new revenue stream based on knowledge to make commercial technician who is possessed.
6. perform a rapid increase of sales, succeeding a snowball effect.
7. benefit from economies of scale thanks to the development of the franchise system.
Franchisors provide an initial and ongoing support services to its franchisees initial comprise mainly: a study of market, a study of localization of restaurant franchisee, assistance in the negotiation of rent, a conception of the interior decoration of the point of sale, the formation of labor, management accounting and financial models. Ongoing services include operating track, promotional material, training of managerial and employees, quality control, advertising nationally, centralisation of purchasing, information about the evolution of the market, accounting and financial, auditing approved insurance, etc.

Advantages for the franchisee

Franchisee motivation is primarily benefit experience, reputation and warranty, attached to the brand image of the franchisor. Add to this basic motivation the following considerations:
1 be able to start a business with little capital
2 reduce the risk and uncertainty, since it is a proven successful project.
3 benefit from a better purchasing power to the franchised chain providers.
4 receive training and continuous assistance provided by the of the franchisor.
5. have access to the best locations, thanks to the popularity and the financial power of the franchisor.
6 receiving aid for the marketing management and accounting and financial management of the franchise.
7 have well-designed premises and interior decoration.
8 benefit from ongoing research and development of new products or services.
9 be able to create their own as independent business belonging to a large organization.
The franchise agreement is a relatively flexible form of collaboration between the franchisor and the franchisee. However, there are three fundamentals essential to the strength of a franchise agreement, which are:
• Willingness to work jointly and severally.
• The acceptance of a right to transparency reciprocal.
• The legal basis of the formula.
This last condition is essential; the franchise is an original method of distribution of a good product or a good service (a formula for success), not will never be a solution to remove a trouble or safeguard of a firm in difficulty to be declared "franchisor" without having made herself the test of its formula.


There are also disadvantages to the dealer and some of them are presented below:
Rights: rights that the franchisor charges for the use of the name of the company, the prices charged for supplies and other costs can be very high for a particular locality. In such a way that you can incur loss or low margins of profit for the retailer.
Less independence: since the dealer must follow the patterns of the franchisor, the retailer loses some of its independence.
Standardization: The procedures are standardized and dealers do not have much ability to use ideas of his own.
Slow: due to the size, a franchisor may be slow to accept a new idea or adapt its methods to condition changes.
Cancellation policy: it is difficult and expensive to cancel an agreement of concession without the cooperation of the franchisor.
Control: the franchisor has less control over the licensee, than if mounted its own production facilities.
Competitor: If the dealer is very successful, the firm loses profits and when his contract ends it could meet that has grown a competitor.


There are alternative sources of funding available for a new business. These sources include franchisors; that it can be used only to start the business. In addition, many franchisors, as the own Mc. Donald's, have desperately sought in international markets expansion that already cannot be achieved in their own country, because of the harmful effect that has had the US recession in recent years, the development of franknesses.
Increased sales generated by foreign franchisors (and the consequent payment of royalties) are representing for many of these companies a real break, time that can help franchisees to get involved in the business for less money than if started a similar business on their own. Sometimes the franchisor will allow you to make a small payment in cash as a down payment and then pay him the rest of the money needed to start the business.
Elements to diagnose the analyzing of a business.
It is very important to establish the minimum criteria that must take into account the franchisors to determine if a business is a franchise. These criteria, will help us to enter the market of franchises, with the safety forward, despite the challenges and difficulties which may exist in these markets.
Basic and minimum criteria that determine the successful analyzing of a concept:
We can not conceive of a concept susceptible of franchise if the name brands that distinguish it are not adequately protected on the one hand, or any other legal means provided for in the legislation, and in addition, the importance which the franchisor brand have honors of the public within the market.
Concepts of franchises allowing its franchisees operating margins that cannot be compared with industry standards have not been successful.
They have been and continue to be network only those businesses whose product or service meets a real need in the market which intend to develop. I.e., to provide an added value to the market, and that is appreciated by the consumer for that market.
This point should not be the number four, but one, because that may not have chances of success when a company decides to launch a franchise without due experience and seniority.
In franchises, very unlike the license of brands and distribution contracts, the franchisor must live by and for the franchisee. The theory suggests that everything should revolve around the franchisee; advice, logistical and operational support, inputs, suppliers, etc.


Regarding the experience of the franchisees in recent years, almost whenever there has been success, is has been able to perceive that the master franchisee meets most, if not all, of the elementary characteristics that must find a franchisor for the development of his concept in a foreign country:
• Knowledge of the local market.
• Knowledge of the market segment that are interested in the franchise.
• Flexible attitude
• Financial resources
• Administrative resources
• Ability to communicate properly with your franchisor
• Experience of business in the country of the franchisor
• Knowledge of the real estate market in your country
• Ability to help in the selection of the potential suppliers of the system
• Good relations and experience in dealing with government officials in the country that joined the franchise.
When the multinational franchisee, which attempts to penetrate into a foreign market, i.e., omitted to select its foreign franchisee in the light of the criteria mentioned and is guided only by the economic (situation that is unfortunately widespread), the chances of failure are important. In conclusion, for those entrepreneurs who are considering franchising their business; they will have to consider that the franchises are a market solution to a market problem. Therefore, clearly, it is inappropriate to use franchising as a solution to problems that are purely financial in nature.


Almost all organizations selling to the retail can be classified as independent, a corporate chain or as a franchise. The independent is the most common type of property; However, it represents only a quarter of sales.
A firm independent retailer is a retailer owned and operated independently and without membership. Many independent retailers, however, want some of the benefits enjoyed by a string. For example, assistance in the development of effective advertising and promotion plans for sales and support in the design of systems of accounting and control and registration systems. But to achieve these benefits, independent retailers will have to deliver some of its independence.


If the chosen distribution channel is an indirect channel, is the problem of the number of intermediaries to recruit for the rate of coverage of the market necessary to the realization of the goals of penetration. Several strategies of market coverage can be considered.
• Hollywood offers gum at all sites that can be; in all the food stores, at tobacconists, in the stationery stores, auto dealers, in peddling.
• The Pierre Cardin company distributes its clothing in shops specialized, carefully selected products, and ensures that it is represented by the best.
• Volkswagen distributes its cars through dealers; He is assigned to each dealer a region where no other garage shall be entitled to represent the brand.
Hollywood practice intensive distribution, Cardin a selective distribution and Volkswagen an exclusive distribution. The choice of the strategy to adopt for a given product depends on the characteristics of the same and the objective pursued by the company within the competitive environment in which is.


An exclusive distribution system is the extreme form of selective distribution. In a predefined region, a dealer-only receives the exclusive right to sell the brand and usually undertakes not to sell competitive brands. In return, the dealer accepts not referencing brands competing in the same category of products. A strategy of exclusive coverage is useful when the manufacturer wants to differentiate your product by a policy of high quality, reputation or quality of service. The close cooperation between manufacturer and distributor facilitates the implementation of this programme of quality. The advantages and disadvantages of this system are those of selective distribution, but expanded. A particular form of exclusive distribution is the franchise.
Franchising is a system of contractual vertical marketing organized the distribution of goods or services. There are franchise agreement when, by contract, a company called franchise grants to another the right to exploit trade in a delimited territory, according to defined rules and under a banner or mark given. The company granted, usually offers its franchisees a continuous support enabling them to trade in the best possible conditions in their respective territories. It is, therefore, as well as paying the right of use of a trade mark, and to benefit from a continued contribution of know-how by what the franchisee is committed contractually to deliver to the franchisor initial rights - both flat - or a percentage of their sales. The franchisee purchase, in fact, a formula for success which the franchisor and perhaps other franchisees have made the test in other territories.


The franchise or the concession has been the development of faster growth and increased interest in recent years. Although the basic idea is already old, some forms of the concession are very recent. Three forms of concession can be distinguished:
The first is the system of issuing retailer sponsored by the manufacturer, which exemplifies the industry automobile. So the Ford concessions to distributors that sell their cars and dealers, who are independent stockists, accept compliance with several conditions of sales and services.
The second is the concession system manufacturer-sponsored wholesaler. This system is located in the soft drink industry. Coca - Cola, for example, licensed to bottler (wholesale) in several markets, which acquire concentrates that add carbonate, bottle and sell to retailers in local markets.
The third is the system of concession the services firm-sponsored retailer. In this case, a service firm organizes a whole system to carry his service in an efficient manner to consumers. Example of this type of concession are in the business of selling vehicles (Hertz, Avis), in the fast food business (Mc. Donald's, Burger King), and motels (Howard, Johnson, Ramada Inn) business.


A good franchise should be first and foremost a proven and transferable success that can be reproduced by the franchisee in its territory. A good formula has the following features.
• Related to the marketing of a product or service of good quality.
• The demand for the product or service is universal, or at least, not limited only to the region of origin of the franchisor.
• Leaves the already established in a place franchisee a right of first refusal at the time of implementation of one or more franchises in their territory.
• Provides for an immediate transfer of know-how and an effective training of the franchisee in marketing techniques and the methods of the franchise in question.
• Does your tests with a pilot company.
• Establishes the modalities of a continuing relationship between the franchisor and the franchisee with the aim of improving the conditions give exploitation of the franchise and share innovations, ideas for new products and services, etc.
• Explicitly describes the initial contributions (teaching, training, know-how) and perms (stands for marketing, advertising, promotional activities, research and development, various services) of the franchisor.
• Expressed immediate payments (initial rights) and continuous (canon) that the franchisee must be done.
• Involves the franchisee in the process of defining future directions for the franchise and makes it to participate in the life of the franchise.
• Provides for a procedure of renewal, renegotiation and cancellation of the franchise contract, as well as a possibility of rescue for the franchisor.
The franchise offers an interesting option to conventional or controlled vertical structures. Indeed, in a franchise network, each store investment is made by the franchisee, owner of the store. From the point of view of the franchisor, the creation of a network of franchise allows you to have quickly and with little cost of an international business network without investing directly in the ownership of the network, but controlling it by contract.
The franchise is a distribution system integrated, controlled by the franchisor, but funded by the franchisees. A successful franchise is a good partner in which the success of the franchisor and the franchisee's are indissolubly United.


In recent years franchises (franchising) business system reached an explosive development thanks to the globalization of the economic life of Nations aimed at increasing openness in this process of transformation of capitalism.
Renewed strategies of marketing products and services put in the foreground the alternative of adding a greater number of mouths of dispensing with benefits for the franchisor and the fianquiciado.
According to the U.S. Commerce Department estimates, at the end of this century a 50 per cent of retail sales will be handled within the franchise system.
This interesting field is not exclusive to developed countries, the franchises have no borders. For several years Latin America and other emerging markets transits their own experiences with a more generous in the Brazil display, following the Argentina, Mexico, Chile and Colombia.
But he also began to notice even in socialist market and not missing local by franchises in remote points of the planet. In many cities under different climates and latitudes, it is possible to taste the famous Big Mac, rent videos of the Blockbuster chain, sleep in the chain Holiday Inn, among others.
The franchisor and offer an opportunity, with many constraints, but provides an opportunity for who decides to take on the challenge.
There are a large number of entrepreneurs that includes grant franchises of your business, with security that doing so can resolve their expansion needs, for those who ever have dreamed of owning their own business, the franchise has become an option interesting and safe to achieve their purpose in an uncertain business environment.
The franchisor is the task to set the trade name, choose the corporate colors, design its public image, define the product, write operating manuals, finalize the transfer of the technology involved to who receives the license, control quality, determine the clothing of the employees, establish advertising guidelines, provide ongoing advice and give training to who runs the license.
The communication of the brand's global image appears as the essential condiment to ensure the success of the business. This, coupled with the business strategy and the target make up the tripod that supports this activity.
Latin America is a much sought-after by firms from the United States, the country of origin of the franchise system and the place where the sector is more dynamic. But a more recent trend shows that companies in Latin America also are trying to, through franchise win markets beyond their borders.
In the same way that the phenomenon of internationalisation departed from the United States, the recent analysis of this market bring to light other changes in the business that, as development continues, would be reflected in Latin America.
It is not uncommon that a so agile and versatile as the franchising sector responds to economic and social changes quickly. The increased orientation of the economy towards the generation of services, the incorporation of more women into the labour market or the progressive aging of the population are some of the trends that have an impact on the sector of the franchises.
Thus, expected that the business of growing between those who work for franchises are those related to the provision of services, such as repairs, household cleaning, maintenance and repair of cars, medical care, education and training or telecommunications. They also are likely to bloom business services, like accounting, distribution of correspondence, temporary staff, impressions.
Although the situation of the Latin American countries differs quite, some like Mexico, Argentina and Brazil this type of franchises already exists. As penetrating drums of the tribes of yesteryear, the franchising boom expands all over.
In the past five years the system of franchises in Chile experienced an average growth of 30%, a figure that leaves it well in the process of expanding this business in Latin America. After experienced boom, the franchises have lately entered in a stabilized straight and steady growth. Fresh data indicate that today operate in that country 65 companies of franchises, which come from different countries and billed $ 200 billion annually. The equivalent to 0.01% of the gross domestic product of Chile. This activity gives direct employment to more than twenty thousand people.



Service cultivates relationships with customers through the learning, the use of relevant information and customization or rational marketing. Also increases the company's future earnings, because it allows you to retain customers and sell more with lower costs of promotion and advertising.
When it comes to service, the mixture of traditional marketing is not enough. It is necessary to revise the traditional four P's marketing promotion, product, price and square and include three additional P: people (employees and customers), processes, and perceptiles (physical clairvoyance).


A external marketing: Companies that market products are concentrated in the external marketing: strategies to meet the s consumer needs, offer products that satisfy it, informs about the existence of the product and place them at your fingertips.
However in the marketing of service is required to devote greater attention to two types of marketing that involves consumers and employees: internal marketing and interactive.
B internal marketing: Refers to the company strategies to recruit, train and motivate the best people. Internal marketing means that the Organization should have with capable employees and service culture.
The success of a services company marketing depends on how mercadee the work of their employees. Service employees are the least motivated and lowest-paid; No embargoes, are expected to offer the best care. The culture of service that the company wants to markets with its employees not always is reciprocal, internally employees may be dissatisfied customers. It is important to give employees information and power to decide. Otherwise the opportunity of achieving satisfied customers will disappear. In services the best advertising is word of mouth the reference that a customer can give to acquaintances will be successful to the extent that employees can resolve problems.
An interesting case is that of Sears. The company began to face financial difficulties because it did not have an offer of value greater than the competition. In response, I use the orientation to the consumer as a differentiator. Thanks to the application of a model (Total Performance Indicators) for measuring the relationship beneficio-empleado - consumer, employees became protagonists of change: provided them opportunities for growth. Power of decision, and participation and strategic planning of the company. (Rucci, Kirn and Quinn, 1998)
C interactive marketing: Is crucial for services, because they are high-touch business: that contact between em0pleadop and client called "moment of truth" (Carlzon, 1991), during which you must solve customer problems. If the solution is delayed pending the decision of the supervisor, you will lose a customer who, by effect of the references will lose much more. It is not the same as a client wait for half an hour in the hotel lobby l, because the employee needs higher authorization, which is immediately informed that the hotel will offer the room of luxury at the same price because it is a loyal client. If it wasn't, it surely began to be. If those contact6os do not add value to the offer from the company, they deducted it is, especially when the consumer receives the message that your suggestions, problems or complaints do not have greater importance, as the employee who treats you do not have sufficient authority to decide. Here he began to acquire importance domestically.



You can define direct marketing such as direct sale from the producer to the consumer, but this simple definition does not take into account the importance of personal relationships involved in these exchanges. The development of ways of marketing director is a source of relationships between individuals, farmers and consumers, which created not only commercial but social unions. The most common direct sale is face to face, at a farmers market, for example. However, it is currently developing direct marketing via the Internet.
To achieve a good direct marketing plan, it is necessary:
• A thorough understanding of the target group
• Appropriate the same segmentation
• Strategies appropriate to each segment
• Accurate and reliable information
• Trained and proactive staff
• A database of marketing that allows you to easily manage the information
• Be able to give an immediate and accurate response
• And most importantly, 100% of creativity, solutions that exceed your expectations with a successful communication management.

Differences between direct marketing and traditional marketing

The goal of the traditional marketing is to sell the product to the wholesale in large quantities. Is the volume of the product sold that sustains the income of the farmer; the price per unit is generally low. Many times, the buyer is concerned mainly get the cheapest product. In general, it is assumed that all products of the same kind are identical - a tomato of class a is equal to any other tomatoes of the same kind. As a result, the farmer does not have to worry much to distinguish its product from those of other producers.
On the contrary, direct marketing focus on the differences between products and especially on the specific characteristics of the products of each farmer. Moving from traditional marketing to direct marketing requires a fundamental change of mind by the farmer. To achieve success in direct selling, the farmer has to recognize that not all consumers and all products are the same. Consumers have very particular tastes and preferences and the farmer aims to produce a variety of products that could satisfy the tastes of different customers. The farmer who takes advantage of the differences between consumers, rather than ignoring them does not have to compete to produce the cheapest product.

Can small producers take advantage of direct marketing?

Usually small producers are not competitive in traditional markets. To get the product cheaper, a farmer has to have lower production costs. Large farmers, who can buy supplies in quantities, produce much volume to low relative cost. Therefore, they are sources preferred by large buyers of agricultural products.
Although small farmers cannot compete with the large in terms of the price of their products, these family businesses have special features that give them benefits when they are other qualities of the product, and not just the price. The farmer who wants to take advantage of direct marketing has to offer customers something different - a product that cannot be purchased at the grocery store or a product with a feature absent in the same product purchased in the supermarket.
A suitable product. Pre-mixed salads are an example of a very convenient product for the consumer. Many small producers sell mixtures of different types of lettuce, ready for the table. Other farmers include recipes with their products, especially recipes quick and easy to prepare, to make easier the preparation by the consumer.
The flavor. Many consumers say the flavor and freshness of products purchased directly from the farmer are the main reasons for their purchases. Producer that sells its products the same day they are harvested always can offer the most fresh and tasty product customer. Small producers may also pay more attention to each fruit or vegetable, selecting only those ripe tasty.
Variety. Small producers do not have to specialize in the production of a just culture. It can produce many kinds of tomatoes, for example, including ancient varieties of good taste that cannot be stored for long time. These varieties are not in supermarkets. They can also produce many crops, even animals, in the same building and offer the consumer a wide range of different products.
Novelty. Small producers also have the luxury of experimenting with new and different cultures. As the small farmer does not have to plant hundreds of acres in a just culture, try non-traditional crops.
Type of production. Currently, more and more consumers are willing to pay a high price for products from production systems that protect the environment. Vente la organic products, for example, increases more than 20 percent per year. Other examples are livestock grazing, "organic" production and in local production. The farmer who takes into account the concerns and ideological preferences of the consumer wins this "vote with the dollar."

Alternatives for small farmers

There are many routes available direct marketing to the small producer. Each method has its advantages and disadvantages and the farmer has to choose who serves you best, taking into account the specific situation of his estate. A combination of methods is the best choice for many farmers. One of the main channels of direct marketing are:
• U-pick (harvest by the consumer)
• Road shop
• Farmers market
• Community market
• Commercial market
• Masters of cuisine and restaurants
• Internet or mail
• Cooperative marketing
• Consumer cooperative
• Sale by subscription
• Institutional sale
The following points out some of the advantages and the challenges associated with eight of these options.
U-Pick - the consumer harvests the crop


• Any cost of harvest
• Any cost of transportation
• There is an intermediary
• Imported much mixing of crops or products on the farm


• The location of the farm is critical
• Legal liability for customers while they are on the farm
• Persistence in family life
• Parking
• Need to be present on the farm for many hours
• Limited growth potential
• Little added value
Road shop - a simple tent on the edge of the road, usually specializing in fresh produce


• There are intermediaries
• No one comes to the farm
• You can get products from other farms to sell
• Elongated station sale, according to the crops produced or available
• Low transport
• Little packaging


• The town of shop is critical
• Maintenance of the store, good presentation
• Need to publish shop
• Need a good variety of products; cannot be sold one or two
• Need to keep the store open for many hours in a day
• Parking
The farmer - a fair market or market usually seasonal, non-permanent and open a few days a week


• There are intermediaries
• No one comes to the farm
• You need a wide variety of products because they are complemented by other sellers
• Each vendor takes advantage of general market advertising
• Many potential customers are attracted


• The farmer has to maintain direct and friendly contact with customers
• You can spend a long time in getting ready for the market and in the same market products
• The packaging and the general presentation of the product is important
• Distance to the market
• The cost of entering the market
• It may be that the timetable of the market doesn't do, nor the months when open
• There is competition among sellers with the same products or similar products
Internet or mail - consumers choose and pay the product by mail (old system) or the Internet and purchase send it to the farmer


• Little infrastructure required
• No one comes to the farm
• Very flexible hours
• Many opportunities for nearly unlimited growth


• Design and maintain a page on the Internet
• You lose the advantage of freshness of local products
• Good security programs are required to accept electronic payment
• Requires very good packaging
• Cost, availability and consistency of the transport
Sale by subscription - customer pays in advance; in the simplest form the customer usually pays monthly or every 60 or 90 days for a fixed amount of product; in its most complete form (CSA or community-supported farmer) the customer pays annually and accepts the risk of not receiving a certain amount of products


• Payment in advance is a source of cash for the farmer
• The income does not depend directly on the volume of product
• The price received for the product to be determined by the general market price
• For the CSA, the farmer shares the risk with customers
• For the CSA, it can reduce demand for labour if members are also working on the farm
• Generally, the same members are the best source of advertising
Cooperative marketing - a farmers cooperative dedicated to the marketing of products


• Potential for growth
• Combine the resources of many to make shopping, advertising, transportation, etc.
• Achieved a better variety of products that any individual producer can supply
• Little need for additional infrastructure in farms of members


• Each Member is subject to the rules and decisions of the cooperative; individual decisions can do
• Costs much time and enough initial investment
• The management of the cooperative is critical; professionals are preferable
• The trend of developing competence among members, especially the tendency of some members to sell their products out of the cooperative to take advantage of high prices
Market consumer - same consumers develop a store for members and hired farmers to supplement products sold


• Stable market over long time
• Potential for growth
• The farmer receives a high percentage of the price received for the product
• Low investment by the farmer


• The active support of the consumers is critical; the farmer has to develop and maintain a positive relationship with customers
• Generally, consumers are looking for a wide variety of very high quality products
• The management of the cooperative is critical; professionals are preferable
• Legal liabilities
• It is a formal organization, rules and statutes, and complaints can be developed
Institutional sales - a farmer or, more commonly, a group of farmers, develop contracts with public institutions (schools, prisons, etc.) or private (hospitals, homes for the elderly, cruise companies, amusement parks) and supplement specified products


• Market stable, although generally it is necessary to renew the contract every year
• The institutions make purchases in advance (up to one year), which allows better planning by the farmer
• High potential for growth in Florida


• Requires enough time to contact buyers for these institutions
• There are rules and regulations for products in many cases
• Regular supply at time is critical; You can not fail in supplementing the product on time
• Transportation is key
• Need a broad and consistent volume

Four basic concepts

The information in this section of this newsletter is a summary and adaptation of the brochure Keys to Success in Value Added Mercadeo by Holly Born. This publication is produced by the program of agriculture sustainable from the Department of Agriculture of the United States (SARE) and the Organization for the transfer of appropriate technology for Rural Areas (ATTRA). The complete publication is achieved without cost of ATTRA (http://attra.ncat.org/).
1. you need to involve all stakeholders
To achieve success in direct marketing, the farmer has to seek the support of the other. It cannot be only. Don't forget the importance of getting the support of consumers, farmers, State officials and other businesses. Use the skills and knowledge of others. Few attempts to develop the direct marketing by a farmer only are successful.
2 it is important to start small and grow over time
Direct marketing requires concepts, practices, and special abilities and the farmer has to buy them, to experienced farmers. It is important to develop new marketing strategies step by step, evaluating the results frequently. Start on a small scale permits correct problems more easily, without the loss of more investment of time and money.
3. good data are the Foundation of good decisions
Decisions should be based on good data. Although keeping the records is not a pleasant task for most people, they are critical to decision-making. It is especially important to have good data during periods of change on his farm.
4 listen to customers
Customers are the primary key for the direct marketing strategy. Good seller seeks to understand perceptions, preferences and tastes of its customers. But understanding is not enough. To achieve success, the farmer has to be willing to make the changes necessary to meet the requirements of its customers.

Strategies for direct marketing

Rob Singer, of the California marketing directoYates Advertising Agency, proposes five steps:
• Some organizations invest millions to centralize the collection of information for customers, however, for small budgets there is a collection on a smaller scale. This option is becoming popular as an easy and effective method to describe profiles and develop marketing strategy, although it is perhaps short to meet the CRM of the company.
• The use of advanced analysis tools offers more competitive advantages when compiling the database. Thus, predictive models, advancing the cross-selling and increased purchases by the customer, and the analysis by groups, i.e., which identifies customers according to interests.
• The most appropriate is to raise the campaign in several waves. The first approach is the best information available. Response rates are very valuable for future mailings.
• Those that already meet customers are, therefore, must recognize and identify them as such to strengthen the relationship. One of the ways to achieve this is to integrate customer in the sale process, asking for suggestions which will be taken into account. Loyalty is assured with this methodology. On the other hand, should make it clear to customers that they are not potential and must therefore perceive that they are object of best offers and prices.
• The dosage of bids is essential to not lengthen the sales cycle. If the approaches are modest and regular, customers will get used to buy immediately. On the other hand, if bids are improving as the campaign develops, customers will wait until the end to get the best deal.

Direct marketing media

Applications: sale, interested, potential qualification and generation point of sale traffic generation, maintaining relationship
Versatility / diversity of formats
There is no direct competitor in the attention of the receiver
It is offering more chances to test
Ability to involve the receiver
High cost per impact
Generates rate response + elevated other media
Elements of a communication by mail:
Essential central element. Personal communication, tone suitable relationship with recipient. Elements:
Letterhead: it identifies emitter. The first thing that you see.
Customization. It amplifies communication... If it is correct.
Johnson Box. It summarizes benefits. Interesting if not occupied space to address.
First crucial paragraph.
We must: present benefits, argue them, overcome resistance and call to action.
Short sentences and short paragraphs, to express an idea
Bold/underlined leading central ideas and enable synthetic reading letter
Attention to the visual structure: to which parts of the letter i ideas drive the reader view
Length is not relevant, what matters is that the content is interesting for the reader
Signature: clearly identified: name and title.
PostScript: 90% is the first thing read if not Johnson Box. Summarize benefits, remembering incentives, call action.
generated in Reader first impression; It allows to use text, color and images for reader consideration in detail product by. Must call wing action and contain coupon response. NOT A SUBSTITUTE FOR CHARTER.
About: communication element: must move to open letter. There may be benefits.
• Coupon/card response: close communication and ultimate goal. You should:
• Make clear what to do with it
• Facilitate the work the reader
• Remember benefits and incentives
• Reducing resistance
• Response: facilitates response. Concerted postage increases response but a lowering quality and + caro.
• Technologies printing and customization allow to develop to the maximum creativity and adaptation to the receiver
• Taking into account logistical aspects and cost: weights, postage, delivery planning.
• Applications: sale, interested generation, traffic generation, support direct media
• Features:
• Average greater emotional impact. It allows product demonstration.
• Great coverage, not allow very specific segmentation
• Normally, telephone response: emergence number phone and focused response
• Need + time than conventional advertising (detailed argumentation) 60-90 seconds
• Criteria planning different pub.: premium quality over quantity. Not interested in prime time.
• New recruitment modes + fall rates = > more possibilities
• Local stations and cable TV will allow TG + specific
Newspapers and magazines
Applications: direct sale, interested and potential identification, traffic generation, support notoriety other media
• Possibility of segmenting by titles and geographical
• Allows you to explain in detail
• Credible, strong competition in care (News)
• Short = > immediate response
• Lower-quality photographic reproduction
• Low cost production
• Generally reduced response rates
• Magazines. Features:
• High possibility of segmentation (many titles). Also geographical (inserts).
• Half-credible (less than press) and also strong competition (articles)
Longer life crimping
Low cost production
• Rate higher response
• Combination picture and headline is the most important. They must lead to body and this coupon.
• Coupon size suitable and situated bottom right margin (if on right-hand page)
• Coding coupons according to date, support and creativity provides valuable information
• Place insertion influences response rate. Inserts generate highest response rate
• Issue called: sale, potential qualification, interested identification, consultation visits and interviews, bad debt management.
• Receiving calls: sale, give information, arrange, care queries and claims.
• Interactive: immediate feedback.
• Very flexible
• We can visually present the product = > verbal argumentation.
• High cost per impact
• Very suitable as vehicle response or complement other actions MkD
• Always provides useful information
Telemarketing activity elements:
• Equipment telemarketers: key training, fitness and attitude. It is not a routine administrative work.
Information sheet:
Must from PO rigorous analysis and situation regarding product, brakes and motivations, purchase process
Planned to modify / adapt quickly based on results
• Must consider form present, argue and close sales and information to collect PO
Computer and technical support:
• Allow enough responsiveness and maximum productivity (control, called exploitation and HR automation processes)
• 900 services. Offer specific software.
Treatment information essential to achieve maximum efficiency in calls and return information
Considerations: Alternatives in organization telemarketing internal or external. Depends on: type activity to perform, duration time, necessary equipment, internal resources, level of experience. Recommended first external to analyze results, assess needs and resources, gain experience. Some activities may not be outsourced (management claims, etc.).
Advantages of direct marketing:
Berger (1989) lists the following advantages in direct marketing:
"Go to the target group: the precision to point to the target group with which you want to be a communication, through a careful selection of lists (database) and the information contained in these." The marketing manager can direct your communication specifically with leaflets which have certain characteristics may be by candidates interested in your products or services. This reduces the waste of mass media that can not reach the target group.
Customization: Each company whose products we are massive should know their customers and with the help of technology may have sophisticated databases. Personalization is important because it allows the company to communicate personally with the prospect.
The customer acts immediately: the used message offers a reward if the customer acts quickly.
"Invisible programs: competition for many programs or direct marketing strategies are invisible because it is much more difficult to learn what is what makes the company because in some cases there is no mass media and communication is direct to the client '.
Disadvantages of direct marketing:
In comparison with the mass media communication, direct marketing has the following disadvantages:
The mass media is more strategically, is oriented towards the management of attitudes, generates motivation in the long term, while marketing direct is more tactical. This makes for direct marketing it more difficult to create, maintain, and increase brand awareness and the construction of the product image.
For a company whose products are massive or have a large number of clients, programs direct marketing can be quite expensive, also difficult to control.
It is more difficult to develop a program of communication of successful direct marketing a program of traditional mass media due to start requires a database in good condition, which means an investment in technology. Likewise, a greater effort is in execution and especially in the control of programs.

As a form of marketing-direct marketing

There are authors who believe that direct marketing is just a technique of commercial action, which is very much far from can be considered a form of marketing. For example, Sanchez Guzman (1995; 600) expresses this stance saying: "the idea that direct marketing is a form of marketing, thus falling into the mistake of establishing a typology of marketing which certainly exists, therefore, (...)" "marketing is a general form of company which takes as its point of reference market and in which actions and suitable techniques are integrated to achieve targets to be determined".
On the basis of these words who understand marketing as a general form of the company's performance can be derived easily the existence of "special" forms of marketing, which develop the philosophy and objectives of general marketing in a specific way, following an own formal appearance and theoretical principles particular but confluent with the general marketing.
Considering that direct marketing is only a promotional tool of the company, certainly cannot be said that it is a way of doing marketing, since that is lowering the marketing, matching it to the promotion. As to marketing is not the same than advertising or promotion, direct marketing is not just a tool of communication to obtain an immediate response. Similarly, neither can be considered a set of commercial shapes "at a distance" or "non-establishment", it is much more.
Without going into depth on the concept of marketing, since this is considered known among readers of this article, it is necessary to emphasize that marketing direct is a way of doing marketing because it develops all the dimensions that the concept of marketing has, in particular.
Considering that marketing is a system of thought and an action system which has three fundamental dimensions: (Lambin, 1993)
• Ideological dimension. (Thinking of marketing system). Reflects the marketing function as a set of ideas that direct the activity of the company towards the satisfaction of the needs and wishes of individuals and organizations by creating and exchanging voluntary and competitive goods and utilities-generating services.
• Analytical dimension. (Strategic marketing) It is part of the marketing that allows to obtain information on the reality that surrounds the company facilitating the elaboration of offers tailored to the needs of the market and getting the Organization to adapt to changes in the environment, exploiting their potential.
• Dimension of action. (Operational marketing). It is the dimension of the marketing that reflects that the marketing is a system of action that brings to the company a series of variables-herramientas to act in the market and achieve the objectives pursued. Basically, these tools are the famous 4P´s of McCarthy (1974) (product, price, distribution and promocion-comunicacion).
Direct marketing is a growth industry, while suffering the problems of cost, saturation and image. Direct marketing professionals made several activities from direct selling (personal sales and telemarketing) to direct response advertising. Using the main forms of direct marketing as a sales one, direct mail, catalog marketing, telemarketing, marketing by marketing online, marketing kiosks and direct response television. Customers can compare offers, and then order products and services without dealing with sellers. Direct marketing companies can build an ongoing relationship with each client; planning mode offerings that reach the customer at the right time and therefore be more read and receive more replies; easily test media and alternative messages; those who do direct marketing gain confidentiality since offerings and strategies are less visible to competitors thus avoiding imitation and plagiarism of strategies. The supplemented with direct mail, telemarketing is the most appropriate medium for most of them, but one growing number use other media, especially the television informeciales. Interactive television is the medium of the future of direct marketing.



A target market is the market segment to which a product is in particular directed. Generally, defined in terms of age, gender or socio-economic variables.
The strategy of defining a target market consists of the selection of a group of clients that you want to give service.
Among the decisions to be taken are the following:
• How many segments establish how objective
• which
• How many products we will offer
• which products are going to offer in each segment
There are three steps to establish objective markets:
• market segmentation
• selection of the target market
• product positioning
Strategies are influenced by:
• the maturity of the market
• the diversity of preferences and needs of the consmidores
• the size of the company
• the strength of the Competencia_ (Economics)
• the volume of sales required to achieve benefits
The establishment of target market can be selective (e.g.: strategy of concentration, market specialization) or extensive (e.g.: full coverage, mass marketing or product specialization)

New trends

Historically target markets were considered to be groups of individuals, which, using or resorting to diverse segmentation techniques, were grouped together, as we previously mentioned, by age, gender, social groups, etc.
Today this concept is giving way to new trends in terms of the definition, today markets are considered to be sets or groups of profiles of buyers or potential buyers, i.e. closer to human behavior. This arises from that persons may contain multiple profiles of buyers, for example conditioned by the means they use to make a purchase or take the same decision, they might be affected by the environment.
There arise changes, and we could say, den metamorphosis where one person can behave and display characteristics as a buyer, very different according to these variables. This new reality has unveiled the reasons for that, for example, Marketing strategies in advertising campaigns fail according to where their implementation, convincing arguments can differ and fail even when they are directed to the same individual, simply because the variables have transformed to that individual in a different buyer.



Definition of marketing

Management approach of marketing that supports the achievement of organizational goals depends on determining the needs and wants of target markets and the satisfaction of more effectively and efficiently than competitors.

Evolution of marketing

Marketing is a comparatively new field; but thing indeed strange, also has always been one of the most ancient professions of humanity. Study formal "processes and terms of trade", which we call "marketing" and sometimes "marketing" or "marketing" had its beginnings in the Decade of 1920.
The need for marketing evolved as a historical process. With the industrial revolution, which gave a dramatic boost to the means of production of articles, the speed of sales not could keep tone with the manufacturing speed. Therefore they began to apply large quantities of products and it was imperative to find a solution.
Thus were born the current marketing needs:
• Know in advance what the customer wants to buy and not just articles that we consider suitable to manufacture;
• Organize a system of distribution that will attach to the habits of our industry;
• Decisions of production and distribution on the basis of feedback from the market place.
It can be successful in marketing to provide the customer what you want, in the right place, doing that it is available and in the precise amount needed. Marketing is a perfectly planned sales effort and helps to increase the speed of sales, according to the pace of manufacturing.

Advantages of marketing

Social researchers have different views on the meaning and social value of marketing. Most of them agree that marketing is essential, both for the manufacturer and consumer, when society has reached the stage of mass production and plays an even more important role in the "affluent society".
But there are others who believe that the practice of the administration of marketing creates a stock of "scammers" who succeed in persuading an audience unsuspecting, innocent and without suspicion, to purchase items which, as they discover later, do not even need.
However, the fact that even developing countries that had focused on production, are now in need of marketing, indicates that this is the core point of commercial effort. In this way, is that in a country such as the India, the Government is making use of the concept of marketing to promote family planning. In Brazil, the Government is sponsoring a marketing campaign to promote the power of the newborn infants with breast milk. The countries of Eastern Europe have also undertaken a frantic activity of marketing to capture some of the Asian markets, particularly for its chemicals and engineering.

Marketing management

MR Kotler, recognized authority on marketing, defines the management of marketing as "analysis, planning, implementation and control of programs designed to produce the desired Exchange with audiences that are targeted, with the purpose of personal or mutual gain that relies heavily on adaptation and coordination of a product, price, promotion and place, for an effective response".
Marketing management is a method designed and organized to carry out terms of trade. Methods planned and organized in any field are known as "professionalism".

Difference between marketing and selling

The sale is only one aspect of marketing. It is an exchange of goods or services by a value. In the sale has been what was convenient to produce, after which will take a look at around us to see how can be sold to the potential client.
On the contrary, in the marketing starts with the potential customer and then it is planned and what produces it wants. In this way, all manufacturing activities are designed to give satisfaction to the customer. In selling, the focus is on the needs of the seller, while in marketing focus is on the needs of the consumer.

Marketing and consumer

Since the birth of marketing as a discipline independent, recognized the critical role exercised by the consumer society. In a competitive market are many brands and manufacturers trying to win favor with the consumer; and therefore it is important to know, study and understand the motivations, the demands, the demands of consumers, who constitute an imperative that the company cannot escape.
It has repeatedly argued that the ultimate aim of the system of distribution of a society is to satisfy the wishes of the public and that there is an urgent need to have an adequate knowledge of which are those desires, as they influence by social groups, primary and secondary, as expressed and as finally these desires can be satisfied.
Anyone interested in the needs of the consumer must understand what motivates people to buy a service and reject another. In recent years, specialists conduct formed a team with marketing staff and established a completely new discipline: the study of the consumer.
Entrepreneurs and leaders recognized that not only all the marketing, but also many executive decisions decisions are directed towards the final consumer. So the production is a way to further provide and bring the goods to the consumer's needs and at the same time, the marketing is the source of all the values that are currently used.
Sales managers, as well as scholars, are in a unique position in relation to research on the consumer because on the one hand they can observe directly the behaviour of the consumer and get data to make generalizations and on the other hand can use the results of their theoretical analysis in a practical way.

Administration of the marketing process

Analysis of market opportunities

The "Big AIR" air company, seeks for its near future greater penetration in the regional air transport market in order to take advantage of excess capacity of an aircraft, in general in Earth, and demand growing passages and load.
For this purpose it is determined to achieve the goal of a greater share of the market and to this purpose apply necessary marketing strategies for their achievement.

Target market selection

The measurement of demand is set to clear with the current demand for airline tickets. So it is not necessary for the moment the hiring of external consultants or specialized marketing companies.
Future demand is given by the discovery of the advantages of the travel (time savings and increased security) and the tickets prices low by competition from other companies. The latter is not of direct application in this region, but is not dismissed before the profitability of the business.

Market segmentation and relationship of the market goal

Given the generality of product that the company sells it is necessary to cover the entire market of passenger traffic between the different cities of the Patagonian region.

Positioning in the market.

"Big AIR", is the only company operating in this southern region of the country. Given their efficiency in compliance with schedules, allowing passengers to fix or foresee its meetings and gatherings in other cities; Security on their flights, since it has not had serious problems in their planes, because it has a service guaranteed by the experience of their operatives and cordiality of the staff of the company, it enjoys wide preference among the passengers.
These facilities are have been transmitted orally between the passengers and the public in general by what has not yet been required an aggressive advertising policy.



Merchandising (literally in English "merchandise"), or micro-mercadotecnia is the part of the marketing that aims to increase profitability at the point of sale. They are activities that stimulate the purchase at the point of sale. It is the set of studies and sales techniques that allow you to present the product or service in the best conditions, both physical and psychological, to the final consumer. In contrast to the passive presentation, is an active presentation of the product or service using a variety of mechanisms that make it more attractive: placement, presentation, etc.
The merchandising includes all activity carried out at a point of sale, which aims to reaffirm or change the behavior of purchase, in favor of more profitable items for the establishment.
A space, two merchandising
On the other hand, the AMA, American Marketing Association, in his dictionary reminds that this word has two different meanings: (1) can refer to the promotional activities manufacturers in shops, such as specific exhibitors for their articles, or (2) identifies the management and decision-making of retailers with respect to an article or product line. This sets the difference between:
• Merchandising from manufacturer: actions of the manufacturer of a product at the point of sale, both the buyer as the oriented to the own establishment or its staff-oriented to achieve an adequate presence of their products at the point of sale.
• Merchandising of Distributor: shares of the retailer in its establishment, seeks not only to sell items from their assortment, but also to optimize the profitability of the surface dedicated to selling.
Objectives of the merchandising: attention, bring the customer to the product, facilitate the purchase action.
From the XX century with the emergence of the Department stores, was an important change in the conditions of sale:
• Product becomes available to the consumer by eliminating counter and dependent.
• The seller acts of mere consultant so their participation is not essential.
• Spreads the sale on a self-service basis and large areas are.
• Gondola in the Vasa in Stockholm (Sweden) Museum Shop
In 1934 the birth took place in France from popular stores that were characterized by the sale of a smaller number of basic products at discounted prices. Having to choose customer product directly from the shelf, it is necessary to increase its appeal through its graphic and structural design.
The first supermarket was born in 1958 and the first hypermarket was created in 1963.


The following are some of the elements used in Merchandising:
• Preferential location of product. It is placing the products in places where to increase the chances of being purchased by the consumer. In supermarkets and free service level surfaces are the headwaters of gondola, shelves at the height of the eyes and areas close to the boxes.
• Batteries and massive exhibitions of product. They give a feeling of abundance and tend to result in a positive effect on buyers.
• Bowls. Bare exhibitors containers. If products are cluttered give sensation of ganga.
• Linear extensions. Extending provisions of the shelves designed to poke a product from the rest.
• Masts. Rigid signs held by a flagpole that are advertised offers or products.
• Posters. Advertising messages which are hung on the walls, furniture or the roof of the establishment.
• Devices seeders. Indicators such as arrows or lines on the ground that serve to direct traffic and the attention of consumers.
• Advertising at point of sale. Exhibitors or product of either permanent or temporary anchors.
• Displays.
• Demonstrations and tastings. They usually have great acceptance in the settlements and cause significant increases in sales. Demonstrations are done to use products such as household appliances and for food and beverage tastings.
• Animation at point of sale. Set of promotional actions which take place in an establishment for a time determined on the occasion of a particular event. For example: fantastic week, return to school, Valentine's day, etc.

Promotional items

Another meaning of the merchandising is the promotional items. In order to promote the launch of a product or a cultural event (movie, Symposium, trade fair, etc.) the manufacturers or producers put on sale small related objects: dolls, t-shirts, key chains, toys, etc. This technique has special hook with children and youth.



Origin of the concept

The basic concepts of the current marketing were adopted around the 1960s. The concept of the marketing mix was introduced in the 1950s by Neil H. Borden, Professor of Harvard University, and the classification of the elements of the mix of marketing on four factors (product, price, place and promotion) was known as the four P´s and popularized by E. Jerome McCarthy at the beginning of the 1970s.
The concept of the four P´s was a simplification of the original ideas of Borden, who had twelve elements within its definition.
The concept of the marketing mix but had other antecedents: in the years 50´, European researchers, which was called the school of Copenhagen, became a notion similar to the mix of marketing that we know today, based on the theory of the parameters presented in the 1930s by Von Stackelberg, Arne Rasmussen and Gösta Mickwitz which was a focus of marketing mix linked to the life cycle of the product and where the parameters were integrated by means of variable elasticity of the market.

Definition of marketing mix

It refers to the variables of a decision on which your company has greater control. These variables are built around the in-depth knowledge of the needs of the consumer. These four variables are as follows and are known as the four PS: product, price, place and promotion.
It is important to mention that one of the characteristics of the marketing mix is should preside over the concealer use of marketing techniques in the need of coordination aimed at the same goal and coordination in time and space.
Example: "The case of the failure to announce an exclusive product intended to cover an agricultural need in located in industrial zones fences"

1 product

It is anything that can be offered to a market for attention, acquisition, use or consumption and that it will satisfy a need or desire included physical objects, services, people, places, organizations and ideas.
The ideal product is that remains in the minds of consumers and respecting that idea is as they are created, modified, manufacture, present, distribute and announces the product.
Product positioning: Positioning of the product strategy tends to locate a specific product in a place such that appears to consumers which brings better features, the objective of correct positioning is to make it more appealing to products within the province.
Stages to establish its strategy:
• Define the need that aims to satisfy the product correctly.
• Define the market segment to which it is addressed.
• Ideal positioning, through market research for consumers and cost analysis for the ideal positioning from the point of view of the company.
Coca Cola is a living example of the positioning of the product, since for each time of year focuses on your beverage according to the needs of the people, example in the summer is announced drink on the beach, at Christmas time they show scenes family or full of tenderness as Santa Claus, Elves etc.

2. the price

• Price is an amount of money requested in Exchange for a product or service, or sum of the values that consumers exchange by the benefits of having or using the product or service.
• Is the term used to describe the monetary value of an object.
• It is the monetary value assigned to a product or service according to your demand and quality.
2.2. determining factors in the price
Intrinsic to the market: the nature of the market, demand, supply, product.
External to the market: economic and political factors of type international economic policy the Government, level of national income, psychology of the country, evolution of prices of substitute and complementary products.
Personal: resulted from the integration of consumers and producers, with their way of being and the influences that receive fashions, the choices of others contribute to the formation of the prices that a certain time will decide their sales and purchases.
Marketing has been a logical target: If the price is not a consequence of a law of market can be used with an element of its strategy to achieve the objectives of the company by fixing it at the level that suits its purposes.

2.3. the price excellent

It is one that is accepted by a certain percentage of the market and ensuring the greatest possible benefit. The obsession of the selling price that get higher sales to find the selling price with which to achieve greatest benefit has been abandoned.

3 square

It is the route taken by a product as it moves through the market. Channel producer, includes the consumer or user and any intermediary involved in that route. The location of a business is determined by taking into account: the presence of other companies or product, the presence of other companies that may be complemented with the company or product, visit to the area of public, forecasting that the market is expanding, or at the least stabilized.
Defend the importance of distribution policies is equivalent to demonstrate the need for the existence of the trade, an example is you need a family to a meal: table, tableware, kitchen utensils, food, think in series production, the distance in space and time with which all these products needed for food have been developed , imagine what would happen if an appropriate distribution policy: the consumer would be able to reach each of the producers or manufacturer to reach out to all consumers.

4 promotion

• It is a set of activities aimed at promoting the products of the company in the market.
• It is an element of the mix of marketing, an organization that serves to inform the market and persuade him regarding their products and services.
The promotion makes use of direct or personal marketing efforts, contests at the level of final consumer and impersonal or indirect efforts exemplified by advertising.
The promotion consists of promoting goods and services through direct or indirect communication products to the selected market.
These policies have as an essential aim to boost either the product to the consumer, the consumer to the product, double action always required attract consumer and press the product and these are:
Advertising, promotion, merchandising, sales and relationship public, the common denominator of drive policies, is to get the consumer to perform the four known steps AIDA:
• Capture the attention.
• Create interest
• Provoke desire
• Get an action of purchase or consumption
In the measure that the process is achieved and will repeat, so will be the success of the marketing activities.
Promotion should act within the framework of a marketing policy, consists of a non-product incentive, is an independent advertising incentive since it promotes the sale of immediate mode, is a means of action in the short term, should be a discontinuous effect as if he joined the product long leave be promotion to become a feature of the product.
4.1 content promotion
The promotion is all marketing policies, the most innocent, as it is not convinced of the need to buy a product, but give the consumer more, this supplement needed simplicity, simple is the great public and of spontaneous so the purchase of popular consumer goods, as well as small gifts products, the content of the promotion consists of a product approach consumer advertising encourages the consumer to the product, the distribution approaches the product in a physical way, promotion brings it to the consumer in an illusory manner to improve its appeal to the user.
4.2 objectives of the promotion
• Company: liquidate a stock of the product, get greater liquidity in the short-term, shut off the competition, motivate the sales team, achieve greater productivity and profitability of the company.
• Market: introducing a new product, accelerate the habit of consumption, increase the participation in the market, suggest new users to the product, influencing consumers who have left us, ensuring the undecided.
• Distribution: expand the distribution, increase coverage, accelerate the rotation of stocks of retailers, enhance brand image to distributors, improve point of sale display.
4.3 kinds of promotions
• Those that are directed to the internal environment of the company (dedicated to the sales team).
• Which originated for distribution (delivery free product, competitions, gifts, bonuses).
• That guide consumers (testing of new product by means of samples and coupons of discounts, competitions, gifts, etc.).
4.4 development of the promotion
We need to have one sufficient product stock because as it's driving short-term sales, foresee special manufacture of the promoted product, must be a promotion Department to create, organize, maintain and monitor its development. You must have creative people who imagine and discover new developments, it is essential to support the promotion through an informative advertising for the consumer.

Advertising promotion

There are two dangers threatening the promotion, one is that not enough consumers; the other is the possibility of loss of prestige which can cause to the brand and the product at the thought of the public that the company does not have confidence in their articles and put crutches, promotion can damage long term product image if that possible disrepute is not corrected.
An effective tool to counteract these effects is balanced advertising that the improvement of the image of the product binds with the dissemination of the benefits to promote them; the advertising strategy carried out two campaigns in parallel, one promotional diffusing advantages and motivations and other prestige brand and image.


Integrated product and channel of distribution, sales (through equipment vendors), sales promotion and packaging, merchandising, advertising, public relations.
To illustrate in practical decision making of a promotional mix this the case of a local manufacturer of spirits who discovered a business opportunity in a market sector constituted by women that they required a liquor of palatability, low-alcohol, comfortable price and it would substitute for imported spirits.
Decisions made by marketing people are shown below:
• Product: Launch a 750 cc containers Apple liqueur. And with striking label with a feminine touch.
• Price: Price low and subject to previously scheduled special offers.
• Square: Display in shelves of liquor stores and supermarkets.
• Promotion

Promote liquor through personal sales level by women's associations and advertising special events highlighting the mild flavor and smell of natural Apple.
The concept of the marketing mix and the four P´s have been strongly dominant on the stage of marketing paradigms for forty years. There is no doubt of its usefulness, especially in packaged consumer products marketing.
However, market research is providing new approaches. The globalization of business and the growing recognition of the importance of retention of client, interaction and networks in industrial markets, marketing of experiences in business ecosystems, of the migration of the value of the life cycle of customer relations and marketing relationships, among other trends and criteria, begin to create new trends in the thinking on the theory and practice of marketing.
Extracted from the website: Liderazgo y Mercadeo
This is a translation published for educational purposes and may contain errors or be inaccurate.

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