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CUMMINS GENERATOR TECHNOLOGIES LTD
Company Background
Cummins Headquarters, located in Columbus, Indiana
Today, Cummins is a multinational Fortune 500 company that operates and serves
customers around the globe. At the same time, Cummins retains strong ties to its
Indiana home, where the Company's headquarters remain.
Cummins' roots are planted in soil nourished by innovation, persistence and a
commitment to community. Founded in Columbus, Ind., in 1919 as Cummins Engine
Company, for its namesake Clessie Lyle Cummins, the fledgling firm was among the
first to see the commercial potential of an unproven engine technology invented two
decades earlier by Rudolph Diesel.
Fortunately for Clessie Cummins, a self-taught mechanic and inventor, his vision was
shared by someone with the financial resources to make it a reality: William Glanton
(W.G.) Irwin, a successful local banker and investor, who already had provided financial
backing for Cummins' auto mechanic operation and machine shop.
After a decade of fits and starts, during which time the diesel engine failed to take hold
as a commercial success, a stroke of marketing genius by Clessie Cummins helped
save the Company. Cummins mounted a diesel engine in a used Packard limousine
and on Christmas day in 1929 took W.G. Irwin for a ride in America's first diesel-
powered automobile. Irwin's enthusiasm for the new engine led to an infusion of cash
into the Company, which helped fuel a number of speed and endurance records in the
coming years - including a grueling 13,535-mile run at the Indianapolis Motor Speedway
in 1931. (Watch the video of that event here.) Such feats earned Cummins' foothold as
an engine supplier to the trucking industry.
Still, publicity alone could not carry the Company; Cummins needed reliable products
and a sound business organization. In 1933, the company released the Model H, a
powerful engine for transportation that launched the company's most successful engine
family. J. Irwin Miller, great-nephew of W.G. Irwin, became general manager in 1934
and went on to lead the company to international prominence over the next four
decades. By marketing high-quality products through a unique nationwide service
organization, the Company earned its first profit in 1937. Three years later, Cummins
offered the industry's first 100,000-mile warranty.
By the 1950s, America had embarked on a massive interstate highway construction
program, with Cummins engines powering much of the equipment that built the roads
and thousands of the trucks that began to roll down them. Truckers demanded
economy, power, reliability, and durability, and Cummins responded. By combining lab-
based research and field-based trials, including dramatic performances at the Indy 500
races, Cummins achieved technological breakthroughs, including the revolutionary PT
(pressure-time) fuel injection system of 1954. By the late 1950s, Cummins had sales of
over $100 million and a commanding lead in the market for heavy truck diesels.
As Cummins continued to grow its business in the United States, the Company also
began looking beyond its traditional borders. Cummins opened its first foreign
manufacturing facility in Shotts, Scotland, in 1956 and by the end of the 1960s,
Cummins had expanded its sales and service network to 2,500 dealers in 98 countries.
Today, Cummins has more than 5,000 facilities in 197 countries and territories.
Cummins, led by the visionary leadership of J. Irwin Miller, forged strong ties to
emerging countries such as China, India and Brazil, where Cummins had a major
presence before most other U.S. multinational companies. Cummins has grown into one
of the largest engine makers in both China and India, and for the past three years
approximately half of the Company’s sales have been generated outside the United
States.
Cummins is no longer just an engine business, but a global power leader with more
than $14 billion in sales in 2008. We are a family of inter-related, yet diversified
businesses that create or enhance value as a result of doing business with each other
or having those relationships.
Cummins is organized around four business segments - Engine, Power Generation,
Components Business and Distribution – and provides products and service to
customers in more than 150 countries.
Cummins is a technology leader in the diesel engine market, with our employees
working relentlessly to provide cutting-edge solutions to the increasingly difficult
challenge of producing cleaner-running engines. For example, Cummins was the only
company in the industry to meet the 2010 EPA standards for NOx emissions with the
release in early 2007 of its new 6.7-liter turbo diesel for the Dodge Ram Heavy Duty
pickup.
Clessie Cummins' spirit of innovation and commitment to quality lives on nearly a
century later in the nearly 40,000 Cummins employees who work to design, make and
sell products that can be found in nearly every type of vehicle imaginable.
Our Vision
Making people's lives better by unleashing the Power of Cummins.
That simple, yet ambitious, statement serves as the guiding vision for Cummins and its
38,000 employees.
The Company takes pride in manufacturing engines, generators, filters and related
products that serve the varied needs of its customers worldwide. To do that, Cummins
unleashes the
power of its employees: Their energy and commitment make it possible for the
Company to
maintain a leadership position in the markets it serves.
Cummins also recognizes that with its role as a corporate leader comes a responsibility
to help
improve the communities in which employees work and live. It is a responsibility the
Company
brings to life through its actions and the activities of its employees.
Our Mission
Motivating people to act like owners working together.
Exceeding customer expectations by always being first to market with the best
products.
Partnering with our customers to make sure that they succeed.
Demanding that everything we do leads to a cleaner, healthier, safer
environment.
Creating wealth for all stakeholders.
Our Values
Integrity. Strive to do what is right and do what we say we will do.
Innovation. Apply the creative ingenuity necessary to make us better, faster,
first.
Delivering Superior Results. Exceed expectations, consistently.
Corporate Responsibility. Serve and improve the communities in which we
live.
Diversity. Embrace the diverse perspectives of all people and honor with both
dignity and respect.
Global Involvement. Seek a world view and act without boundaries.
The updated Code, which was approved by senior leadership and the Cummins Board
of Directors, is built around 10 “Statements of Ethical Principles” that provide the
foundation for ethical behavior at Cummins. The principles are backed by Corporate
Policies and other key documents that give specific guidance on topics and issues
addressed by the statements.
The basic tenets of the Code have not changed much from previous versions, but we
felt it was important to update the Code to reflect who we are today as a large and
growing company. This version of the Code provides our employees around the world
with a practical guide to doing the right thing and reinforces the values that have made
Cummins a great place to work for nearly 90 years.
New to this version are question and answer sections to illustrate each of the principles
in action, enhanced contact information and a section on “Living the Code.” The Code
also features a set of “FAQs” to help employees find other resources related to the
Code and for reporting ethical concerns.
Building Diverse and Dynamic Business Partnerships
Together we can build a diverse and dynamic business partnership to encourage
the process of mutual growth and success now and in the future.
Diversity Procurement (DP) at Cummins was established to carry out the Company's
commitment to achieve diversity in our supply base and to promote the economic
development of Minority-Owned, Women-Owned, HubZone, Service Disable Veteran-
Owned, Small Disadvantaged Businesses, Veteran-Owned, LGBT-owned and Small
Businesses as suppliers. Our vision is to unleash the Cummins Power of Opportunity
by creating strategic partnerships with QUALIFIED diverse suppliers that create
customer value and a competitive advantage for Cummins. The mission of this initiative
is to implement innovative sourcing strategies designed to enhance Supplier
Development, Cost Reduction, Global Sourcing and Alignment with all Sourcing
Initiatives.
Visit the Cummins supplier portal at supplier.cummins.com for access to a broad range
of information relevant to prospective suppliers. Complete details about supplier
diversity, including diverse supplier registration, are available at that site.
"Cummins has a long-standing commitment to creating diversity in the workplace. That
effort is matched with an equal commitment to use a diverse supply base for the goods
and services we purchase. We believe that maintaining a diverse supply base is vitally
important in helping Cummins be the low cost producer in all of the markets we serve.
Companies that value and manage diversity have a distinct advantage over those that
do not when it comes to the bottom line. In fact, the ability to manage diversity well
could be the difference between success and failure for businesses, as well as the
communities in which they operate.”
About Us
Cummins Generator Technologies is a recognised market leader in Brushles A. C. Generator
(Alternator) product range. Established in 1991, the company has consistently set new standards
of quality and business excellence. The market perceives 'STAMFORD Alternators' as a
premium quality product. The company has won several prestigious awards including the Rajiv
Gandhi National Quality Award & golden peacock national quality award.
Business
The company in India is engaged in the business of manufacturing Brushless A. C. generators. In
the range 5 kVA to 2200 kVA range under the famous STAMFORD brand. STAMFORD
Alternators are well accepted in the market as a quality product and have made us a significant
player in the Indian market. The company is ISO 9001 : 2000 certified. World-class systems and
Initiatives like Six Sigma, Kaizen, JIT are effectively implemented in the Company. The
Company has a young & dynamic technical & professional workforce. We keep continuous
development and improvement as the main thrust. The complete office building was automated
by Desk to desk computer system, interconnected LAN system and E mail software. We use the
latest ERP solution for making our business function and deliver results, effectively
Vision
Preferred Product Supplier
Improved Growth, Profitability
Stake holder’s Pride
Maintain Market Leadership
Thrust on Technology
Enriched Environment & Society
Dedicated Workforce
Mission
We provide power solutions to the entire power generation industry. We will
significantly grow our core business of power generation.
Customers will make us their first choice, viewing us as providing them the best value for
money and as the easiest company in the world for them to do business with. Our culture
will be innovative, fast-moving and entrepreneurial.
Our employees will be capable, have fun and provide a competitive edge.
We will link our work to clear measures and consistently deliver our financial
commitments.
Leadership
Leadership
Pradeep Bhargava
(Managing Director)
Individually and collectively we commit to realizing our shared goals through the
innovation, courage, energy and tenacity of our team. We continuously seek to improve
industry standards. Our Team The Core Values of Cummins Generator Technologies
India Limited, provide employees with the foundation for a healthy culture and strong
relationships with our customers and suppliers: Customers Our commitment is to listen
to and understand the needs of our customers and strive to exceed their expectations. We
build relationships based on reliability, quality and innovation. Growth We seek
opportunities for financial improvement in all areas of our business. We challenge the
status quo to identify and pursue ways of delivering sustainable growth. Talent We
recognize and nurture talent to secure our future. We commit to a culture which rewards
achievement and constantly expands our knowledge, experience and opportunities. Our
team also likes to have fun – the team that plays together, stays together!
History
Cummins Generator Technologies India Limited is registered as a public company. Its Plant was
inaugurated on 15th May, 1992. The operations commenced in the year 1993-94. Right from the
inception, the Company has implemented many industrial engineering principles in the TQM
way. The Company has achieved the phenomenal growth. Starting from humble sales of Rs. 5
Crores in the first year 1993/94, progressed rapidly to the turnover of Rs. 64 Crores in 1999-
2000.& turnover of Rs. 161 Crores. in the financial year 2004-2005. The latest financial year
2005-6 saw the company posting record sales of Rs. 234 Crores in Sales. This has established
Cummins Generator Technologies India Limited as a market leader in the Indian alternator
market. The companies Manufacturing plant and registered office is located at Ahmednagar in
India. The corporate office started at Pune in year 2002-2003. Cummins Generator Technologies
has achieved a largest capacity of manufacturing 30,000 units per annum in year 2004 and has
ambitious plans to create an annual capacity of over 60,000 units from 2007 onwards. Major
Highlights
April 1993 – Commercial Production Started.
June 1989 – MOU Signed For JV with Crompton Greaves (CGL)
May 1996 – Accredited With ISO 9000.
July 2002 – Crompton Greaves Ltd Sells Shares To Cummins group.
April 2003 – India Product IP 23 Compliant (First Unit globally)
Year 2003 – Sales Volume 13000 Alternators Value 20 Mn US$
Jan 2004 – Formal Inauguration Of Facilities After Expansion
Feb 2004 – Started Exports to Associate Entities (group companies).
Year 2004 – Sales Volume 19,000 alternators – Value 30 Mn US$
May 2005 – Capacity In Place For Manufacturing 40,000 annually
Year 2005 – Sales Volume 30,000 & Value 40 Mn US$
Year 2006 – Sales Volume 43,000 & Value 58 Mn US$ (Estimated)
Profit Making Enterprise since Inception …..
Cummins Inc. (NYSE: CMI) is a corporation that designs, manufactures, distributes and
services engines and related technologies, including fuel systems, controls, air handling,
filtration, emission control and electrical power generation systems. Headquartered in Columbus,
Indiana, United States, Cummins sells in approximately 190 countries and territories through a
network of more than 500 company-owned and independent distributors and approximately
5,200 dealers. Cummins reported net income of $428 million on sales of $10.8 billion in 2009.[4]
Cummins is a major manufacturer and marketer of diesel engines.
Contents
1 History
2 Business Units
o 2.1 Cummins Engine Business
o 2.2 Cummins Power Generation Business
2.2.1 Cummins Filtration
2.2.2 Cummins Turbo Technologies
2.2.3 Cummins Emission Solutions
2.2.4 Cummins Fuel Systems
3 Subsidiaries
o 3.1 Cummins Turbo Technologies
o 3.2 Onan
o 3.3 Cummins Emission Solutions
4 Products
5 Vehicles powered by Cummins:
6 Competitors
7 See also
8 References
9 External links
History
An early Cummins diesel in a 1950 Indianapolis 500 roadster
Founded in Columbus, Indiana, in 1919 as Cummins Engine Company, for its namesake Clessie
Lyle Cummins, the fledgling firm was among the first to see the commercial potential of an
unproven engine technology invented two decades earlier by Rudolph Diesel.
After a decade of fits and starts, in 1933, the company released the Model H, a powerful engine
for transportation that launched the company's most successful engine family. J. Irwin Miller,
became general manager in 1934 and went on the lead the company to international prominence
over the next four decades. By marketing high-quality products through a unique nationwide
service organization, the Company earned its first profit in 1937. Three years later, Cummins
offered the industry's first 100,000-mile warranty.
By the 1950s, America had embarked on a massive interstate highway construction program,
with Cummins engines powering much of the equipment that built the roads and thousands of the
trucks that began to roll down them. Truckers demanded economy, power, reliability, and
durability, and Cummins responded. By the late 1950s, Cummins had sales of over $100 million
and a commanding lead in the market for heavy truck diesels.
As Cummins continued to grow its business in the United States, the Company also began
looking beyond its traditional borders. Cummins opened its first foreign manufacturing facility in
Shotts, Scotland, in 1956 and by the end of the 1960s, Cummins had expanded its sales and
service network to 2,500 dealers in 98 countries. Today, Cummins has more than 5,000 facilities
in 197 countries and territories.
Cummins, led by the visionary leadership of J. Irwin Miller, forged strong ties to emerging
countries such as China, India and Brazil, where Cummins had a major presence before most
other U.S. multinational companies. Cummins has grown into one of the largest engine makers
in both China and India, and for the past three years approximately half of the Company’s sales
have been generated outside the United States.
Cummins was the only company in the industry to meet the 2010 Environmental Protection
Agency standards for NOx emissions with the release in early 2007 of its new 6.7-liter turbo
diesel for the Dodge Ram Heavy Duty pickup.
Business Units
Cummins Engine Business
Manufactures and markets a complete line of diesel and natural gas-powered engines for on-
highway and off-highway use. Its markets include heavy-and medium-duty truck, bus,
recreational vehicle (RV), light-duty automotive and a number of industrial uses including
agricultural, construction, mining marine, oil and gas and military equipment.[3]
For the general public, the most visible Cummins product may be the 5.9 liter in-line six cylinder
engine first used in the 1989 Dodge Ram light duty pickups[5]
In 2007, a 6.7 liter version of the Cummins straight six engine became optional on the Dodge
Ram pickup (standard with the class 4 and class 5 chassis).[5]
Cummins Power Generation Business
Global provider of power generation systems, components and services in standby power,
distributed power generation, as well as auxiliary power in mobile applications to meet the needs
of a diversified customer base.
A Cummins generator at the base of a radio mast
Cummins Filtration
Designs, manufactures and distributes heavy-duty air, fuel, hydraulic and lube filtration,
chemicals and exhaust system technology products for diesel and gas-powered equipment.
Cummins Turbo Technologies
Designs and manufactures turbochargers and related products, on a global scale, for diesel
engines above 3 liters.
[Cummins Emission Solutions
Develops and supplies catalytic exhaust systems and related products to the medium-and heavy-
duty commercial diesel engine markets.
Cummins Fuel Systems
Designs, develops and manufactures new fuel systems and remanufactures electronic control
modules in the United States.
Subsidiaries
Holset turbocharger (x2), on 450 hp (340 kW) V12 Kromhout diesel engine
Cummins Turbo Technologies
The Holset Engineering Co. was a British company that produced turbochargers, primarily for
diesel and heavy duty applications
In 1973 the company was purchased by Cummins after briefly being owned by the Hanson Trust.
Holset now operates facilities in China, India, Brazil, the Netherlands, the United Kingdom, and
the United States.
In 2006, the division officially changed its name to Cummins Turbo Technologies to be
identified more closely with its parent company. The turbocharger products still use the Holset
brand name.
Onan
In 1986, Cummins began acquisition of Onan and completed it in 1992. The Onan name
continues to be used for modern versions of their traditional engine-driven generators for RV,
marine, commercial mobility, home standby, and portable use.
Cummins Emission Solutions
Exhaust and emissions after-treatment company Nelson Industries was purchased in 1999 due to
the increasing importance of exhaust after-treatment systems for meeting future emissions
standards. The division officially changed its name to Cummins Emission Solutions to be
identified more closely with their parent company.
Products
High-horsepower (larger than 15 liters displacement) engines are manufactured in Seymour,
Indiana, Daventry, England, and Pune, India. Heavy duty (10–15 liter displacement) M and X
series engines are manufactured in Jamestown, New York. The B, C and L series engines are
manufactured in numerous plants across the world.
Operations Location Products
BMC Sanayi ve Ticaret A.S. Izmir, Turkey B3.9/5.9 C8.3
Chongqing Cummins Engine
Company Ltd.Chongqing, China M11 NT K19/38/50
Columbus Engine Plant Columbus, IndianaISX Cylinder Blocks and heads; Light-Duty
Diesel engine
Columbus MidRange Engine
PlantColumbus, Indiana ISB
Consolidated Diesel CompanyRocky Mount, North
CarolinaB3.9/4.5/5.9 C8.3 ISB ISC QSB ISL QSC QSL
Cummins Beijing Co. Ltd. Beijing, China Generator Sets
Cummins Brasil Ltda. São Paulo, BrazilB3.9/5.9 C8.3 NT/N14 ISB ISC QSB QSC
ISM Generator Sets
Cummins Generator
Technologies.Stamford, England
4 & 6-pole low voltage AC generators
between 7.5 kVA to 2,750 kVA.
Cummins India Ltd. Pune, IndiaN14/NT K19 V28 K38/50 OSK60 Generator
Sets
Cummins India Ltd. Daman, India Generator sets and natural gas engines
Cummins Industrial Center Seymour, Indiana K19 V903 QSK19
Cummins Komatsu Engine Co. Seymour, Indiana QST30
Cummins Marine CharlestonNorth Charleston,
South Carolina
Marine propulsion K19 to QSK 60, marine
auxiliary engines B3.9 to QSK 60
Cummins MerCruiser DieselNorth Charleston,
South Carolina
B3.9/5.9 C8.3 QSB5.9 QSC8.3 QSL9 QSM11
Sterndrives
Cummins Natural Gas
Engines, Inc.Clovis, New Mexico
G/GTA5.9, 8.3 and 855 GTA14, 19, 28, 38,
and 50
Cummins Power Generation Fridley, Minnesota Generator sets and electronic controls
Cummins Power Generation Singapore Generator sets and electronic controls
Cummins Power Generation Ramsgate, England Generator sets and electronic controls
Cummins Scania Fuel Systems Columbus, Indiana HPI fuel systems
Cummins Scania Fuel Systems Columbus, Indiana XPI fuel systems
Cummins Westport Inc. Vancouver, Canada Natural gas engines
DarlingtonEngine Plant Darlington, EnglandB3.9/5.9 B4.5/6/7 C8.3 ISB ISC ISL QSB
QSC
Daventry Engine Plant Daventry, EnglandK38/50 QSK45/60 QSK78 WSVs81/91
QSK19 rail power packs
Dongfeng Cummins Engine
Co. Ltd.Xiangfan, China B3.9/5.9 C8.3
JamestownEngine Plant Jamestown, New York ISM 11.0 ISX 15.0 11.9
Komatsu Cummins Engine
Company Ltd.Oyama, Japan B3.3 B3.9/5.9 C8.3
Tata Cummins Limited Jamshedpur, India B3.9/5.9
Xi’an Cummins Engine
Company
Shaanxi Province,
ChinaISM
Cummins Kama Naberzhnye Chelny, Russia
Products
Cummins Generator Technologies India Manufactures Brush-less Alternators with the most advanced design, production and testing facilities sets an international standard for ruggedness and reliability.
5 - 2200 kVA
Single Bearing
Double Bearing Presently available from 5 kVA to 2200 KVA, STAMFORD generators are suitable for all
generator set configurations to meet the most demanding range of industrial, commercial,
construction, telecommunications, mining and other standby or prime power applications.
Cummins Generator Technologies Ltd UK. leads the way in Automatic Voltage Regulator
(AVR) technology, for both self-excited and PMG excited generators. Ongoing quality
control programmes, based on rigorous component selection, testing, design refinement and
encapsulation developments, and have made AVR technology a byword of reliability.
About Company
Cummins in India, a part of US$ 11.36 billion CumminsInc., is a conglomerate of 11 entities -
Cummins India Ltd., Cummins Diesel Sales & Service (I) Ltd., Cummins Auto Services Ltd., Cummins
Research & Tehnology India, Fleetguard Filters India Pvt. Ltd., KPIT Cummins Infosystems Ltd.,
Newage Electrical India Ltd., Nelson Engine Systems (I) Ltd., Tata Cummins Ltd., Tata Holset Ltd.,
Valvoline Cummins Ltd. Spread all over India, the group employs more than 5500 people and has
established itself as an integrated engine, genset, components, related services and solutions
provider.
A Global presence, a product and services portfolio of unmatched quality, a work culture that is
challenging and empowering, a future of limitless possibilities - that is what a career with Cummins
offers you.
Cummins Generator Ltd, Ahmednagar Address
Cummins Generator Technologies India C - 33, M.I.D.C. Ahmednagar 414 111. Tel: +91 (0) 241
6603464 - 73. Fax: +91 (0) 241 2777494 ...
NEWAGE AVK SEG INDIA EXPANDS ITS MANUFACTURING FACILITY AT AHMEDNAGAR
Short description: First export consignment flagged off
Article: To meet the ever increasing worldwide demand for generators, Newage Electrical India
Ltd. (NEIL), has expanded its production capacity in Ahmednagar, India, from 10,000 units p.a.
to 18,000 units p.a. Inaugurated by Mike Norris, Director and General Manager, Asia Pacific,
Newage International Limited, the newly expanded facility will extend the range of alternators
catering to the expanding domestic and international markets. Paul Crossley, Group Operations
Director, Newage International Ltd flagged off the first export consignment of STAMFORD
alternators to USA and Singapore. The state of art manufacturing plant at Ahmednagar will
enhance its production capacity to 18,000 units with the range of Alternators from 5kVA to 2000
kVA. Presently operating at 100% utilization, the plant will increase production multifold and
will continue to play a critical part in domestic and global markets. Pradeep Bhargava, Managing
Director, NEIL said “We believe in the 4Ps of the organisation – ‘Prerana’ (Inspiration /
Motivation), ‘Parivartan’ (Change / Transformation), ‘ Parishram’ (Hard work) and ‘Parinam’
(Results). The journey in this organisation rally around these 4Ps to bring the smile on the face of
all our stakeholders” Mike Norris, Director and General Manager, Asia Pacific, Newage
International Limited said, “We are very happy to note the steady progress of Newage India.
With this expansion and increase in the capacity, we expect NEIL to consolidate its operations to
its tremendous advantage in order to enhance the value package offered to our customers”. He
further mentioned that three words marked this occasion – “Celebration, Thanks and Future. This
is a celebration of our vision, our success & the hard work done by India team. Thanks to all our
Customers, Suppliers and our people and local community for making this happen. This is just
the beginning but with India’s economic growth we expect Newage India to achieve more
milestones in the future.”
Marketing is the process of performing various forms of market research, selling products
and/or services to customers and promoting them via advertising to further enhance sales.[1] It
generates the strategy that underlies sales techniques, business communication, and business
developments.[2] It is an integrated process through which companies build strong customer
relationships and create value for their customers and for themselves.[2]
Marketing is used to identify the customer, to satisfy the customer, and to keep the customer.
With the customer as the focus of its activities, it can be concluded that marketing management
is one of the major components of business management. Marketing evolved to meet the stasis in
developing new markets caused by mature markets and overcapacities in the last 2-3 centuries.
[citation needed] The adoption of marketing strategies requires businesses to shift their focus from
production to the perceived needs and wants of their customers as the means of staying
profitable.[citation needed]
The term marketing concept holds that achieving organizational goals depends on knowing the
needs and wants of target markets and delivering the desired satisfactions.[3] It proposes that in
order to satisfy its organizational objectives, an organization should anticipate the needs and
wants of consumers and satisfy these more effectively than competitors.[3]
Contents
[hide]
1 Further definitions
2 Evolution of marketing
o 2.1 Earlier approaches
o 2.2 Contemporary approaches
3 Customer orientation
o 3.1 Organizational orientation
3.1.1 Herd behavior
3.1.2 Further orientations
4 Marketing research
o 4.1 Marketing environment
o 4.2 Market segmentation
o 4.3 Types of marketing research
5 Marketing planning
o 5.1 Marketing strategy
6 Marketing specializations
7 Buying behaviour
o 7.1 B2C buying behaviour
o 7.2 B2B buying behaviour
8 Use of technologies
9 Services marketing
10 See also
11 References
Further definitions
Marketing is defined by the American Marketing Association (AMA) as "the activity, set of
institutions, and processes for creating, communicating, delivering, and exchanging offerings
that have value for customers, clients, partners, and society at large. Marketing is a product or
service selling related overall activities. [4] The term developed from an original meaning which
referred literally to going to a market to buy or sell goods or services. Seen from a systems point
of view, sales process engineering marketing is "a set of processes that are interconnected and
interdependent with other functions,[5] whose methods can be improved using a variety of
relatively new approaches."
The Chartered Institute of Marketing defines marketing as "the management process responsible
for identifying, anticipating and satisfying customer requirements profitably."[6] A different
concept is the value-based marketing which states the role of marketing to contribute to
increasing shareholder value.[7] In this context, marketing is defined as "the management process
that seeks to maximise returns to shareholders by developing relationships with valued
customers and creating a competitive advantage."[7]
Marketing practice tended to be seen as a creative industry in the past, which included
advertising, distribution and selling. However, because the academic study of marketing makes
extensive use of social sciences, psychology, sociology, mathematics, economics, anthropology
and neuroscience, the profession is now widely recognized as a science, allowing numerous
universities to offer Master-of-Science (MSc) programmes. The overall process starts with
marketing research and goes through market segmentation, business planning and execution,
ending with pre- and post-sales promotional activities. It is also related to many of the creative
arts. The marketing literature is also adept at re-inventing itself and its vocabulary according to
the times and the culture.
Evolution of marketing
Main article: History of marketing
An orientation, in the marketing context, related to a perception or attitude a firm holds towards
its product or service, essentially concerning consumers and end-users. Throughout history,
marketing has changed considerably in time with consumer tastes.[8]
Earlier approaches
The marketing orientation evolved from earlier orientations, namely, the production orientation,
the product orientation and the selling orientation.[8][9]
OrientationProfit
driver
Western
European
timeframe
Description
Production [9] Production
methods
until the
1950s
A firm focusing on a production orientation specializes in producing
as much as possible of a given product or service. Thus, this signifies
a firm exploiting economies of scale until the minimum efficient
scale is reached. A production orientation may be deployed when a
high demand for a product or service exists, coupled with a good
certainty that consumer tastes will not rapidly alter (similar to the
sales orientation).
Product [9]
Quality of
the
product
until the
1960s
A firm employing a product orientation is chiefly concerned with the
quality of its own product. A firm would also assume that as long as
its product was of a high standard, people would buy and consume
the product.
Selling [9] Selling
methods
1950s and
1960s
A firm using a sales orientation focuses primarily on the
selling/promotion of a particular product, and not determining new
consumer desires as such. Consequently, this entails simply selling
an already existing product, and using promotion techniques to
attain the highest sales possible.
Such an orientation may suit scenarios in which a firm holds
dead stock, or otherwise sells a product that is in high demand,
with little likelihood of changes in consumer tastes diminishing
demand.
Marketing[9]
Needs and
wants of
customers
1970 to
present
day
The 'marketing orientation' is perhaps the most common
orientation used in contemporary marketing. It involves a firm
essentially basing its marketing plans around the marketing
concept, and thus supplying products to suit new consumer tastes.
As an example, a firm would employ market research to gauge
consumer desires, use R&D to develop a product attuned to the
revealed information, and then utilize promotion techniques to
ensure persons know the product exists.
Contemporary approaches
Recent approaches in marketing include relationship marketing with focus on the customer,
business marketing or industrial marketing with focus on an organization or institution and
social marketing with focus on benefits to society.[10] New forms of marketing also use the
internet and are therefore called internet marketing or more generally e-marketing, online
marketing, search engine marketing, desktop advertising or affiliate marketing. It attempts to
perfect the segmentation strategy used in traditional marketing. It targets its audience more
precisely, and is sometimes called personalized marketing or one-to-one marketing. Internet
marketing is sometimes considered to be broad in scope, because it not only refers to marketing
on the Internet, but also includes marketing done via e-mail and wireless media.
Orientation Profit driver
Western
European
timeframe
Description
Relationship
marketing /
Relationship
management [10]
Building and
keeping good
customer
relations
1960s to
present
day
Emphasis is placed on the whole relationship between
suppliers and customers. The aim is to provide the best
possible customer service and build customer loyalty.
Business
marketing /
Industrial
marketing
Building and
keeping
relationships
between
organizations
1980s to
present
day
In this context, marketing takes place between businesses or
organizations. The product focus lies on industrial goods or
capital goods rather than consumer products or end products.
Different forms of marketing activities, such as promotion,
advertising and communication to the customer are used.
Social
marketing [10]
Benefit to
society
1990s to
present
day
Similar characteristics as marketing orientation but with the
added proviso that there will be a curtailment of any harmful
activities to society, in either product, production, or selling
methods.
Branding Brand value
2000s to
present
day
In this context, "branding" is the main company philosophy
and marketing is considered an instrument of branding
philosophy.
Customer orientation
A firm in the market economy survives by producing goods that persons are willing and able to
buy. Consequently, ascertaining consumer demand is vital for a firm's future viability and even
existence as a going concern. Many companies today have a customer focus (or market
orientation). This implies that the company focuses its activities and products on consumer
demands. Generally, there are three ways of doing this: the customer-driven approach, the
market change identification approach and the product innovation approach.
In the consumer-driven approach, consumer wants are the drivers of all strategic marketing
decisions. No strategy is pursued until it passes the test of consumer research. Every aspect of a
market offering, including the nature of the product itself, is driven by the needs of potential
consumers. The starting point is always the consumer. The rationale for this approach is that
there is no reason to spend R&D funds developing products that people will not buy. History
attests to many products that were commercial failures in spite of being technological
breakthroughs.[11]
A formal approach to this customer-focused marketing is known as SIVA[12] (Solution,
Information, Value, Access). This system is basically the four Ps renamed and reworded to
provide a customer focus. The SIVA Model provides a demand/customer-centric alternative to
the well-known 4Ps supply side model (product, price, placement, promotion) of marketing
management.
Product → Solution
Price → Value
Place → Access
Promotion → Information
If any of the 4Ps were problematic or were not in the marketing factor of the business, the
business could be in trouble and so other companies may appear in the surroundings of the
company, so the consumer demand on its products will decrease.
Organizational orientation
In this sense, a firm's marketing department is often seen as of prime importance within the
functional level of an organization. Information from an organization's marketing department
would be used to guide the actions of other departments within the firm. As an example, a
marketing department could ascertain (via marketing research) that consumers desired a new
type of product, or a new usage for an existing product. With this in mind, the marketing
department would inform the R&D department to create a prototype of a product/service based
on consumers' new desires.
The production department would then start to manufacture the product, while the marketing
department would focus on the promotion, distribution, pricing, etc. of the product. Additionally,
a firm's finance department would be consulted, with respect to securing appropriate funding for
the development, production and promotion of the product. Inter-departmental conflicts may
occur, should a firm adhere to the marketing orientation. Production may oppose the installation,
support and servicing of new capital stock, which may be needed to manufacture a new product.
Finance may oppose the required capital expenditure, since it could undermine a healthy cash
flow for the organization.
Herd behavior
Herd behavior in marketing is used to explain the dependencies of customers' mutual behavior.
The Economist reported a recent conference in Rome on the subject of the simulation of adaptive
human behavior.[13] It shared mechanisms to increase impulse buying and get people "to buy
more by playing on the herd instinct." The basic idea is that people will buy more of products
that are seen to be popular, and several feedback mechanisms to get product popularity
information to consumers are mentioned, including smart card technology and the use of Radio
Frequency Identification Tag technology. A "swarm-moves" model was introduced by a Florida
Institute of Technology researcher, which is appealing to supermarkets because it can "increase
sales without the need to give people discounts." Other recent studies on the "power of social
influence" include an "artificial music market in which some 19,000 people downloaded
previously unknown songs" (Columbia University, New York); a Japanese chain of convenience
stores which orders its products based on "sales data from department stores and research
companies;" a Massachusetts company exploiting knowledge of social networking to improve
sales; and online retailers who are increasingly informing consumers about "which products are
popular with like-minded consumers" (e.g., Amazon, eBay).
Further orientations
An emerging area of study and practice concerns internal marketing, or how employees are
trained and managed to deliver the brand in a way that positively impacts the acquisition and
retention of customers, see also employer branding.
Diffusion of innovations research explores how and why people adopt new products, services,
and ideas.
With consumers' eroding attention span and willingness to give time to advertising messages,
marketers are turning to forms of permission marketing such as branded content, custom media
and reality marketing.
Marketing research
Main article: Marketing research
Marketing research involves conducting research to support marketing activities, and the
statistical interpretation of data into information. This information is then used by managers to
plan marketing activities, gauge the nature of a firm's marketing environment and attain
information from suppliers. Marketing researchers use statistical methods such as quantitative
research, qualitative research, hypothesis tests, Chi-squared tests, linear regression, correlations,
frequency distributions, poisson distributions, binomial distributions, etc. to interpret their
findings and convert data into information. The marketing research process spans a number of
stages, including the definition of a problem, development of a research plan, collection and
interpretation of data and disseminating information formally in the form of a report. The task of
marketing research is to provide management with relevant, accurate, reliable, valid, and current
information.
A distinction should be made between marketing research and market research. Market
research pertains to research in a given market. As an example, a firm may conduct research in a
target market, after selecting a suitable market segment. In contrast, marketing research relates to
all research conducted within marketing. Thus, market research is a subset of marketing research.
Marketing environment
Main article: Marketing environment
Market segmentation
Main article: Market segmentation
Market segmentation pertains to the division of a market of consumers into persons with similar
needs and wants. For instance, Kellogg's cereals, Frosties are marketed to children. Crunchy Nut
Cornflakes are marketed to adults. Both goods denote two products which are marketed to two
distinct groups of persons, both with similar needs, traits, and wants.
Market segmentation allows for a better allocation of a firm's finite resources. A firm only
possesses a certain amount of resources. Accordingly, it must make choices (and incur the
related costs) in servicing specific groups of consumers. In this way, the diversified tastes of
contemporary Western consumers can be served better. With growing diversity in the tastes of
modern consumers, firms are taking note of the benefit of servicing a multiplicity of new
markets.
Market segmentation can be defined in terms of the STP acronym, meaning Segment, Target and
Position.
Types of marketing research
Marketing research, as a sub-set aspect of marketing activities, can be divided into the following
parts:
Primary research (also known as field research), which involves the conduction and compilation
of research for a specific purpose.
Secondary research (also referred to as desk research), initially conducted for one purpose, but
often used to support another purpose or end goal.
By these definitions, an example of primary research would be market research conducted into
health foods, which is used solely to ascertain the needs/wants of the target market for health
foods. Secondary research in this case would be research pertaining to health foods, but used by
a firm wishing to develop an unrelated product.
Primary research is often expensive to prepare, collect and interpret from data to information.
Nevertheless, while secondary research is relatively inexpensive, it often can become outdated
and outmoded, given that it is used for a purpose other than the one for which it was intended.
Primary research can also be broken down into quantitative research and qualitative research,
which, as the terms suggest, pertain to numerical and non-numerical research methods and
techniques, respectively. The appropriateness of each mode of research depends on whether data
can be quantified (quantitative research), or whether subjective, non-numeric or abstract
concepts are required to be studied (qualitative research).
There also exist additional modes of marketing research, which are:
Exploratory research, pertaining to research that investigates an assumption.
Descriptive research, which, as the term suggests, describes "what is".
Predictive research, meaning research conducted to predict a future occurrence.
Conclusive research, for the purpose of deriving a conclusion via a research process.
Marketing planning
This section may require cleanup to meet Wikipedia's quality standards. Please improve this
section if you can. The talk page may contain suggestions. (October 2009)
Main article: Marketing plan
The marketing planning process involves forging a plan for a firm's marketing activities. A
marketing plan can also pertain to a specific product, as well as to an organization's overall
marketing strategy. Generally speaking, an organization's marketing planning process is derived
from its overall business strategy. Thus, when top management are devising the firm's strategic
direction or mission, the intended marketing activities are incorporated into this plan. There are
several levels of marketing objectives within an organization. The senior management of a firm
would formulate a general business strategy for a firm. However, this general business strategy
would be interpreted and implemented in different contexts throughout the firm.
[Marketing strategy
The field of marketing strategy encompasses the strategy involved in the management of a given
product.
A given firm may hold numerous products in the marketplace, spanning numerous and
sometimes wholly unrelated industries. Accordingly, a plan is required in order to effectively
manage such products. Evidently, a company needs to weigh up and ascertain how to utilize its
finite resources. For example, a start-up car manufacturing firm would face little success should
it attempt to rival Toyota, Ford, Nissan, Chevrolet, or any other large global car maker.
Moreover, a product may be reaching the end of its life-cycle. Thus, the issue of divest, or a
ceasing of production, may be made. Each scenario requires a unique marketing strategy. Listed
below are some prominent marketing strategy models.
Marketing specializations
With the rapidly emerging force of globalization, the distinction between marketing within a
firm's home country and marketing within external markets is disappearing very quickly. With
this in mind, firms need to reorient their marketing strategies to meet the challenges of the global
marketplace, in addition to sustaining their competitiveness within home markets.[14]
Buying behaviour
A marketing firm must ascertain the nature of customers' buying behavior if it is to market its
product properly. In order to entice and persuade a consumer to buy a product, marketers try to
determine the behavioral process of how a given product is purchased. Buying behavior is
usually split into two prime strands, whether selling to the consumer, known as business-to-
consumer (B2C), or to another business, known as business-to-business (B2B).
B2C buying behaviour
This mode of behaviour concerns consumers and their purchase of a given product. For example,
if one imagines a pair of sneakers, the desire for a pair of sneakers would be followed by an
information search on available types/brands. This may include perusing media outlets, but most
commonly consists of information gathered from family and friends. If the information search is
insufficient, the consumer may search for alternative means to satisfy the need/want. In this case,
this may mean buying leather shoes, sandals, etc. The purchase decision is then made, in which
the consumer actually buys the product. Following this stage, a post-purchase evaluation is often
conducted, comprising an appraisal of the value/utility brought by the purchase of the sneakers.
If the value/utility is high, then a repeat purchase may be made. This could then develop into
consumer loyalty to the firm producing the sneakers.
B2B buying behaviour
Relates to organizational/industrial buying behavior.[15] "B2B" stands for Business to Business.
B2B marketing involves one business marketing a product or service to another business. B2C
and B2B behavior are not precise terms, as similarities and differences exist, with some key
differences listed below:
In a straight re-buy, the fourth, fifth and sixth stages are omitted. In a modified re-buy scenario,
the fifth and sixth stages are precluded. In a new buy, all stages are conducted.
Use of technologies
Marketing management can also rely on various technologies within the scope of its marketing
efforts. Computer-based information systems can be employed, aiding in better processing and
storage of data. Marketing researchers can use such systems to devise better methods of
converting data into information, and for the creation of enhanced data gathering methods.
Information technology can aid in enhancing an MKIS' software and hardware components, and
improve a company's marketing decision-making process.
In recent years, the netbook personal computer has gained significant market share among
laptops, largely due to its more user-friendly size and portability. Information technology
typically progresses at a fast rate, leading to marketing managers being cognizant of the latest
technological developments. Moreover, the launch of smartphones into the cellphone market is
commonly derived from a demand among consumers for more technologically advanced
products. A firm can lose out to competitors should it ignore technological innovations in its
industry.
Technological advancements can lessen barriers between countries and regions. Using the World
Wide Web, firms can quickly dispatch information from one country to another without much
restriction. Prior to the mass usage of the Internet, such transfers of information would have
taken longer to send, especially if done via snail mail, telex, etc.
Services marketing
Services marketing relates to the marketing of services, as opposed to tangible products. A
service (as opposed to a good) is typically defined as follows:
The use of it is inseparable from its purchase (i.e., a service is used and consumed
simultaneously)
It does not possess material form, and thus cannot be touched, seen, heard, tasted, or smelled.
The use of a service is inherently subjective, meaning that several persons experiencing a service
would each experience it uniquely.
For example, a train ride can be deemed a service. If one buys a train ticket, the use of the train is
typically experienced concurrently with the purchase of the ticket. Although the train is a
physical object, one is not paying for the permanent ownership of the tangible components of the
train.
Services (compared with goods) can also be viewed as a spectrum. Not all products are pure
goods, nor are all pure services. An example would be a restaurant, where a waiter's service is
intangible, but the food is tangible.
The 7 Ps of Marketing
Once you've developed your marketing strategy, there is a "Seven P Formula" you should use to
continually evaluate and reevaluate your business activities. These seven are: product, price,
promotion, place, packaging, positioning and people. As products, markets, customers and needs
change rapidly, you must continually revisit these seven Ps to make sure you're on track and
achieving the maximum results possible for you in today's marketplace.
Product
To begin with, develop the habit of looking at your product as though you were an outside
marketing consultant brought in to help your company decide whether or not it's in the right
business at this time. Ask critical questions such as, "Is your current product or service, or mix of
products and services, appropriate and suitable for the market and the customers of today?"
Whenever you're having difficulty selling as much of your products or services as you'd like, you
need to develop the habit of assessing your business honestly and asking, "Are these the right
products or services for our customers today?"
Is there any product or service you're offering today that, knowing what you now know, you
would not bring out again today? Compared to your competitors, is your product or service
superior in some significant way to anything else available? If so, what is it? If not, could you
develop an area of superiority? Should you be offering this product or service at all in the current
marketplace?
Prices
The second P in the formula is price. Develop the habit of continually examining and
reexamining the prices of the products and services you sell to make sure they're still appropriate
to the realities of the current market. Sometimes you need to lower your prices. At other times, it
may be appropriate to raise your prices. Many companies have found that the profitability of
certain products or services doesn't justify the amount of effort and resources that go into
producing them. By raising their prices, they may lose a percentage of their customers, but the
remaining percentage generates a profit on every sale. Could this be appropriate for you?
Sometimes you need to change your terms and conditions of sale. Sometimes, by spreading your
price over a series of months or years, you can sell far more than you are today, and the interest
you can charge will more than make up for the delay in cash receipts. Sometimes you can
combine products and services together with special offers and special promotions. Sometimes
you can include free additional items that cost you very little to produce but make your prices
appear far more attractive to your customers.
In business, as in nature, whenever you experience resistance or frustration in any part of your
sales or marketing activities, be open to revisiting that area. Be open to the possibility that your
current pricing structure is not ideal for the current market. Be open to the need to revise your
prices, if necessary, to remain competitive, to survive and thrive in a fast-changing marketplace.
Promotion
The third habit in marketing and sales is to think in terms of promotion all the time. Promotion
includes all the ways you tell your customers about your products or services and how you then
market and sell to them.
Small changes in the way you promote and sell your products can lead to dramatic changes in
your results. Even small changes in your advertising can lead immediately to higher sales.
Experienced copywriters can often increase the response rate from advertising by 500 percent by
simply changing the headline on an advertisement.
Large and small companies in every industry continually experiment with different ways of
advertising, promoting, and selling their products and services. And here is the rule: Whatever
method of marketing and sales you're using today will, sooner or later, stop working. Sometimes
it will stop working for reasons you know, and sometimes it will be for reasons you don't know.
In either case, your methods of marketing and sales will eventually stop working, and you'll have
to develop new sales, marketing and advertising approaches, offerings, and strategies.
Place
The fourth P in the marketing mix is the place where your product or service is actually sold.
Develop the habit of reviewing and reflecting upon the exact location where the customer meets
the salesperson. Sometimes a change in place can lead to a rapid increase in sales.
You can sell your product in many different places. Some companies use direct selling, sending
their salespeople out to personally meet and talk with the prospect. Some sell by telemarketing.
Some sell through catalogs or mail order. Some sell at trade shows or in retail establishments.
Some sell in joint ventures with other similar products or services. Some companies use
manufacturers' representatives or distributors. Many companies use a combination of one or
more of these methods.
In each case, the entrepreneur must make the right choice about the very best location or place
for the customer to receive essential buying information on the product or service needed to
make a buying decision. What is yours? In what way should you change it? Where else could
you offer your products or services?
Packaging
The fifth element in the marketing mix is the packaging. Develop the habit of standing back and
looking at every visual element in the packaging of your product or service through the eyes of a
critical prospect. Remember, people form their first impression about you within the first 30
seconds of seeing you or some element of your company. Small improvements in the packaging
or external appearance of your product or service can often lead to completely different reactions
from your customers.
With regard to the packaging of your company, your product or service, you should think in
terms of everything that the customer sees from the first moment of contact with your company
all the way through the purchasing process.
Packaging refers to the way your product or service appears from the outside. Packaging also
refers to your people and how they dress and groom. It refers to your offices, your waiting
rooms, your brochures, your correspondence and every single visual element about your
company. Everything counts. Everything helps or hurts. Everything affects your customer's
confidence about dealing with you.
When IBM started under the guidance of Thomas J. Watson, Sr., he very early concluded that
fully 99 percent of the visual contact a customer would have with his company, at least initially,
would be represented by IBM salespeople. Because IBM was selling relatively sophisticated
high-tech equipment, Watson knew customers would have to have a high level of confidence in
the credibility of the salesperson. He therefore instituted a dress and grooming code that became
an inflexible set of rules and regulations within IBM.
As a result, every salesperson was required to look like a professional in every respect. Every
element of their clothing-including dark suits, dark ties, white shirts, conservative hairstyles,
shined shoes, clean fingernails-and every other feature gave off the message of professionalism
and competence. One of the highest compliments a person could receive was, "You look like
someone from IBM."
Positioning
The next P is positioning. You should develop the habit of thinking continually about how you
are positioned in the hearts and minds of your customers. How do people think and talk about
you when you're not present? How do people think and talk about your company? What
positioning do you have in your market, in terms of the specific words people use when they
describe you and your offerings to others?
In the famous book by Al Reis and Jack Trout, Positioning, the authors point out that how you
are seen and thought about by your customers is the critical determinant of your success in a
competitive marketplace. Attribution theory says that most customers think of you in terms of a
single attribute, either positive or negative. Sometimes it's "service." Sometimes it's "excellence."
Sometimes it's "quality engineering," as with Mercedes Benz. Sometimes it's "the ultimate
driving machine," as with BMW. In every case, how deeply entrenched that attribute is in the
minds of your customers and prospective customers determines how readily they'll buy your
product or service and how much they'll pay.
Develop the habit of thinking about how you could improve your positioning. Begin by
determining the position you'd like to have. If you could create the ideal impression in the hearts
and minds of your customers, what would it be? What would you have to do in every customer
interaction to get your customers to think and talk about in that specific way? What changes do
you need to make in the way interact with customers today in order to be seen as the very best
choice for your customers of tomorrow?
People
The final P of the marketing mix is people. Develop the habit of thinking in terms of the people
inside and outside of your business who are responsible for every element of your sales and
marketing strategy and activities.
It's amazing how many entrepreneurs and businesspeople will work extremely hard to think
through every element of the marketing strategy and the marketing mix, and then pay little
attention to the fact that every single decision and policy has to be carried out by a specific
person, in a specific way. Your ability to select, recruit, hire and retain the proper people, with
the skills and abilities to do the job you need to have done, is more important than everything
else put together.
In his best-selling book, Good to Great, Jim Collins discovered the most important factor applied
by the best companies was that they first of all "got the right people on the bus, and the wrong
people off the bus." Once these companies had hired the right people, the second step was to "get
the right people in the right seats on the bus."
To be successful in business, you must develop the habit of thinking in terms of exactly who is
going to carry out each task and responsibility. In many cases, it's not possible to move forward
until you can attract and put the right person into the right position. Many of the best business
plans ever developed sit on shelves today because the [people who created them] could not find
the key people who could execute those plans.
Promotion is one of the four elements of marketing mix (product, price, promotion,
distribution). It is the communication link between sellers and buyers for the purpose of
influencing, informing, or persuading a potential buyer's purchasing decision.[1]
The following are two types of promotion:
1. Above the line promotion : Promotion in mass media (e.g. TV, radio, newspapers, internet,
mobile phones, and, historically, illustrated songs) in which the advertiser pays an advertising
agency to place the advertisement
2. Below the line promotion : All other promotion. Much of this is intended to be subtle enough for
the consumer to be unaware that promotion is taking place. E.g. sponsorship, product
placement, testimonials, sales promotion, merchandising, direct mail, personal selling, public
relations, trade shows
The specification of five elements creates a promotional mix or promotional plan. These
elements are personal selling, advertising, sales promotion, direct marketing, and publicity.[2] A
promotional mix specifies how much attention to pay to each of the five subcategories, and how
much money to budget for each. A promotional plan can have a wide range of objectives,
including: sales increases, new product acceptance, creation of brand equity, positioning,
competitive retaliations, or creation of a corporate image. Fundamentally, however there are
three basic objectives of promotion. These are:[3]
1. To present information to consumers as well as others
2. To increase demand
3. To differentiate a product.
There are different ways to promote a product in different areas of media. Promoters use internet
advertisement, special events, endorsements, and newspapers to advertise their product. Many
times with the purchase of a product there is an incentive like discounts, free items, or a contest.
This is to increase the sales of a given product.
The term "promotion" is usually an "in" expression used internally by the marketing company,
but not normally to the public or the market - phrases like "special offer" are more common. An
example of a fully integrated, long-term, large-scale promotion are My Coke Rewards and Pepsi
Stuff. The UK version of My Coke Rewards is Coke Zone.
About Shares of Cummins in Market
Cummins Inc. extended its dominance in heavy-duty engines in North America last year, selling
82,500 units or 42.2% of the market, up from 34.3% in 2007, WardsAuto.com reported.
Cummins increased its market share, in part, because two major competitors - Caterpillar Inc.
and Mercedes-Benz - have said they will withdraw from the market after 2009.
"The decision by Caterpillar to vacate the on-highway market has enhanced the usage of
Cummins, and for that, Cummins should be grateful," Gary Meteer, senior account director of
commercial and aftermarket solutions for R. L. Polk & Co., told Transport Topics.
R. L. Polk published its own data on 2008 engine registrations in the United States, which
showed the same general trend in favor of Cummins.
While most truck sales fell in 2008, Cummins increased its 2008 engine sales by 19.2 % from its
2007 total of 69,200 units, Ward's said. Caterpillar's heavyduty engine sales dropped from
35,273 in 2007 to 20,196 last year, Ward's data showed.
Chris Brady, president of the truck consulting firm Commercial Motor Vehicle Consulting,
Manhasset, N.Y., told TT that Cummins will face a test to its dominance, beginning in 2010.
"All of die truck manufacturers are trying to go vertically integrated," Brady said, referring to the
practice in most of the world in which the truck maker also produces the engine and sells the two
as an integrated unit. "By 2010, they'll all be in place, and we'll see how Cummins fares then," he
said.
Caterpillar said in June that it would halt production of Class 8 engines after this year (6-16, p.
1). Caterpillar's decision leaves Cummins as the only independent engine producer in North
America.
Caterpillar, which had held the top market share in die heavy-duty market for eight straight years
through 2006, fell dramatically behind Cummins in 2007 because of persistent problems with the
new engine it introduced that year (8-25, p. 3).
Caterpillar's 2008 sales of 20,196 units were still good enough for fourth place in market share.
In second place in market share was German-based Daimler AG, whose sales by its two engine
subsidiaries dropped to 51,836 last year from 56,170 in 2007, according to WardsAuto.com.
Daimler, which is the parent company of Daimer Trucks North America, said it would end its
distribution of Mercedes-Benz power plants here in 2010 and that its U.S. subsidiary Detroit
Diesel Corp. would produce all of its heavy-duty engines for North America.
Cummins Products