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