Friday, February 08, 2008
Resurrecting an Old Technology - VSR Motors
A 170 year old electrical technology, called variable switched reluctance (VSR) motors was resurrected in the 1980s with the advent of electronic controllers. The Texas based Le Tiurneau.inc has developed a wheeled front end loader for mining work which use large horsepower VSR motors for its wheel drives. Basically, a VSR motor comprises a rotor and a stator with a coil winding in the stator. The rotor, which consists of a laminated permeable material with teeth, is a passive device with no coil winding or permanent magnets.
The stator typically consists of slots containing a series of coil winding, the energization of which is electronically switched to generate a moving field. When one stator coil is set on, a magnetic flux path is generated around the coil and the rotor. The rotor experiences a torque and is moved in the line with the energized coils, minimizing the flux path. with the approximate switching and energization of the stator coils, the rotor can be encouraged to rotate at any desired torque and speed.
VSR Motors offers the following advantages: Since there are no brushes ringing, there is no requirement of commutator maintenance. the motor is more robust since there are no coils or moving parts. A VSR motor can maintain higher torque and efficiency over broader speed ranges than is possible with other advanced variable speed systems. In addition, as the commutation can be accurately controlled with respect to the rotor angle, the motor will operate at its predicted high efficiency. With VSR technology it is possible to design a low cost motor with over 90% system efficiency and variable speed.
VSR motors can be programmed to precisely match the loads the serve, and their simple rugged construction has no expensive magnets or squirrel cages like the induction motor. VSR motors are smaller than DC motors. VSR motor is inherently resistant to overload and immune to single point failure. They have a high level of fault tolerance and are immune to switching faults. According t a spokesman of Le Tourneau, While the initial cost of SR motor and control is a little more expensive than standard DC system, in the failure, there may be little or no difference in the manufacturing costs due to decreasing prices of electronic components. VSR motors are not without their drawbacks, however. The most significant downside is the acoustic noise and the large vibration caused by the motor's high pulsating magnetic flux. Another limitation is torque ripple. But while these drawbacks have an effect in small horsepower VSR motors, they are of no significance in large horsepower traction motors.
The stator typically consists of slots containing a series of coil winding, the energization of which is electronically switched to generate a moving field. When one stator coil is set on, a magnetic flux path is generated around the coil and the rotor. The rotor experiences a torque and is moved in the line with the energized coils, minimizing the flux path. with the approximate switching and energization of the stator coils, the rotor can be encouraged to rotate at any desired torque and speed.
VSR Motors offers the following advantages: Since there are no brushes ringing, there is no requirement of commutator maintenance. the motor is more robust since there are no coils or moving parts. A VSR motor can maintain higher torque and efficiency over broader speed ranges than is possible with other advanced variable speed systems. In addition, as the commutation can be accurately controlled with respect to the rotor angle, the motor will operate at its predicted high efficiency. With VSR technology it is possible to design a low cost motor with over 90% system efficiency and variable speed.
VSR motors can be programmed to precisely match the loads the serve, and their simple rugged construction has no expensive magnets or squirrel cages like the induction motor. VSR motors are smaller than DC motors. VSR motor is inherently resistant to overload and immune to single point failure. They have a high level of fault tolerance and are immune to switching faults. According t a spokesman of Le Tourneau, While the initial cost of SR motor and control is a little more expensive than standard DC system, in the failure, there may be little or no difference in the manufacturing costs due to decreasing prices of electronic components. VSR motors are not without their drawbacks, however. The most significant downside is the acoustic noise and the large vibration caused by the motor's high pulsating magnetic flux. Another limitation is torque ripple. But while these drawbacks have an effect in small horsepower VSR motors, they are of no significance in large horsepower traction motors.
# posted by Medical Information : 2:02 AM
Linear Motors and Stepper Motors
A linear induction motor is made up of an inductor which is made of individual cores with a concentrated polyphase. Linear motors can be directly substituted for ball screw drives, hydraulic drives, pneumatic drives, or cam drives.
A linear induction motor is basically what is referred to by experts as a “rotating squirrel cage” induction motor. The difference is that the motor is opened out flat. Instead of producing rotary torque from a cylindrical machine it produces linear force from a flat machine. The shape and the way it produces motion is changed, however it is still the same as its cylindrical counterpart. There are no moving parts, however and most experts don’t like that. It does have a silent operation and reduced maintenance as well as a compact size, which appeals many engineers. There is also a universal agreement that it has an ease of control and installation. These are all important considerations when thinking about what type of device you want to create. The linear induction motor thrusts ratio varies depending mainly on the size and rating. Speeds of the linear induction motor vary from zero to many meters per second. Speed can be controlled. Stopping, starting and reversing are all easy. Linear induction motors are improving constantly and with improved control, lower life cycle cost, reduced maintenance and higher performance they are becoming the choice of the experts. Linear motors are simple to control and easy to use. They have a fast response and high acceleration. Their speed is not dependant on contact friction so it is easier to pick up speed quickly.
Stepper motors are a special kind of motor that moves in discrete steps. When one set of windings is energized the motor moves a step in one direction and when another set of windings is energized the motor moves a step in the other direction. The advantage of stepper motors that the position of the motor is "known". Zero position can be determined, if the original position is known.
Stepping motors come in a wide range of angular resolution and the coarsest motors typically turn 90 degrees per step. High resolution permanent magnet motors are only able to handle about 18 degrees less than that. With the right controller stepper motors can be run in half-steps, which is amazing.
The main complaint about the stepper motor is that it usually draws more power than a standard DC motor and maneuvering is also difficult.
A linear induction motor is basically what is referred to by experts as a “rotating squirrel cage” induction motor. The difference is that the motor is opened out flat. Instead of producing rotary torque from a cylindrical machine it produces linear force from a flat machine. The shape and the way it produces motion is changed, however it is still the same as its cylindrical counterpart. There are no moving parts, however and most experts don’t like that. It does have a silent operation and reduced maintenance as well as a compact size, which appeals many engineers. There is also a universal agreement that it has an ease of control and installation. These are all important considerations when thinking about what type of device you want to create. The linear induction motor thrusts ratio varies depending mainly on the size and rating. Speeds of the linear induction motor vary from zero to many meters per second. Speed can be controlled. Stopping, starting and reversing are all easy. Linear induction motors are improving constantly and with improved control, lower life cycle cost, reduced maintenance and higher performance they are becoming the choice of the experts. Linear motors are simple to control and easy to use. They have a fast response and high acceleration. Their speed is not dependant on contact friction so it is easier to pick up speed quickly.
Stepper motors are a special kind of motor that moves in discrete steps. When one set of windings is energized the motor moves a step in one direction and when another set of windings is energized the motor moves a step in the other direction. The advantage of stepper motors that the position of the motor is "known". Zero position can be determined, if the original position is known.
Stepping motors come in a wide range of angular resolution and the coarsest motors typically turn 90 degrees per step. High resolution permanent magnet motors are only able to handle about 18 degrees less than that. With the right controller stepper motors can be run in half-steps, which is amazing.
The main complaint about the stepper motor is that it usually draws more power than a standard DC motor and maneuvering is also difficult.
# posted by Medical Information : 2:00 AM
Thursday, February 07, 2008
VW Makes Rear Engine Vehicle Again
In the news: Sources inside Volkswagen headquarters are reportedly saying that the German auto maker is currently making a rear engine vehicle again. Volkswagen has indicated that it is currently working on a rump-motored, water-cooled small car. It is one that resembles the original Beetle in both layout and purpose.
Reports are also saying that Volkswagen's reinvention of its iconic people's car will have its engine situated on top of the transaxle and a radiator in the nose. Three wheelbase options and two body styles will be offered worldwide, but only two variations will come to the United States. These are the 130-inch-long Beetle reincarnation aimed at the Smart for Two, and the no-frills, four-door notchback likely to be marketed as a smaller, cheaper Jetta. Pricing will be in the range of $10,000 to $14,000.
Other features supposedly included are ABS, satellite navigation, and a sun roof. Power steering however, will not be offered as a cost-reducing measure. Although third-world countries will receive a two-cylinder engine and emerging markets may even get a one-cylinder unit, U.S. VW cars will likely be powered by a turbocharged and direct-injected three-cylinder.
Speculations are that the rear-engine revival was largely Ferdinand Piëch's idea. Piëch, the grandson of Ferdinand Porsche, the man behind the original Beetle reportedly convinced VW chairman Martin Winterkorn that the dynamically challenged rear-engine layout was attractive enough to succeed.
According to reports, one VW executive has already admitted that the company plans to install stability control to address handling issues. But other automotive journalists are still not sold on the rear-engine idea though it is quite certain that it can be made to work in an inexpensive car like a VW small car.
Other have been speculating that the German automaker has long abandoned the people's car demographic for “richer climes”, what with Piëch's grand vision for the brand lay in cars like the Phaeton in recent times. But who knows if wild ideas like these will be able to do wonders for Volkswagen’s seemingly lackluster offerings of late? That we have to wait and see.
Meanwhile, no mention of the engine components of the rear engine vehicle has been made. Nonetheless, it can be anticipated that the automaker will give it the same quality VW engine components, with the same durable VW valve covers. These are components which are typically made of heavy gauge die cast steel. They come in different shapes, sizes, and finishes to function to all kinds of engine specifications.
Reports are also saying that Volkswagen's reinvention of its iconic people's car will have its engine situated on top of the transaxle and a radiator in the nose. Three wheelbase options and two body styles will be offered worldwide, but only two variations will come to the United States. These are the 130-inch-long Beetle reincarnation aimed at the Smart for Two, and the no-frills, four-door notchback likely to be marketed as a smaller, cheaper Jetta. Pricing will be in the range of $10,000 to $14,000.
Other features supposedly included are ABS, satellite navigation, and a sun roof. Power steering however, will not be offered as a cost-reducing measure. Although third-world countries will receive a two-cylinder engine and emerging markets may even get a one-cylinder unit, U.S. VW cars will likely be powered by a turbocharged and direct-injected three-cylinder.
Speculations are that the rear-engine revival was largely Ferdinand Piëch's idea. Piëch, the grandson of Ferdinand Porsche, the man behind the original Beetle reportedly convinced VW chairman Martin Winterkorn that the dynamically challenged rear-engine layout was attractive enough to succeed.
According to reports, one VW executive has already admitted that the company plans to install stability control to address handling issues. But other automotive journalists are still not sold on the rear-engine idea though it is quite certain that it can be made to work in an inexpensive car like a VW small car.
Other have been speculating that the German automaker has long abandoned the people's car demographic for “richer climes”, what with Piëch's grand vision for the brand lay in cars like the Phaeton in recent times. But who knows if wild ideas like these will be able to do wonders for Volkswagen’s seemingly lackluster offerings of late? That we have to wait and see.
Meanwhile, no mention of the engine components of the rear engine vehicle has been made. Nonetheless, it can be anticipated that the automaker will give it the same quality VW engine components, with the same durable VW valve covers. These are components which are typically made of heavy gauge die cast steel. They come in different shapes, sizes, and finishes to function to all kinds of engine specifications.
# posted by Medical Information : 1:16 AM
Wednesday, February 06, 2008
What Does the Check Engine Light Really Mean?
When a car's check engine light comes on, it is a mystery to most drivers. It instills panic in many for good reason. There are times when that light can mean drastic problems in a car's engine system or other operating parts. There are also times when it simply means you changed your brand of gasoline and the car needs to adjust to the new mix. For that reason there is a tendency to ignore that little light and hope the problem will go away.
Should You Worry About Your Check Engine Light?
How do you know if the check engine light is trying to tell you there is a serious problem or if it is nothing to worry about? One way is to take the time out of your busy schedule, drive to the mechanic and pay a hefty fee to have them hook up their machine to your car's OBDII system and then tell you to tighten your gas cap as a result. Or you can get your own OBD diagnostic tool that will give you all the information you need right at your fingertips.
Onboard Diagnostic System
These simple devices attach to your automobile's OBDII (onboard diagnostic system) right under the dash just like the big machine at the mechanic shop does and it will give you the exact same readouts plus provide easy to understand graphs and explanations of those confusing codes your mechanic gives you to keep you in the dark as to what is really going on.
Simply take the OBD diagnostic system for a short ride with you when your check engine light comes on and then take it in the house to your personal computer and download the data. The website provided to you with your OBD diagnostic system will decipher the information and give you all the information you need to determine if the problem is serious or not at fractions of the cost of a mechanic's garage. The readout will also give you simple solutions to the easier fixes if they are available plus if you do need to take the car to your mechanic, you can go in well-armed with the knowledge you need to keep from being overcharged for their services.
The OBD system will also alert you to potentially damaging driving habits you may have acquired over time even when your check engine light is not blinking. Things like hard braking and excessive acceleration so that you can correct problems before they affect your car's mechanisms.
Benefits of OBD
There are even more benefits to your own OBD diagnostic system. Never get stuck with a lemon again by taking it on all of your test drives. With your own diagnostic system, you will be able to find out for yourself if your potential new or used car is in good operating order before you drive off the lot. You can even find out why the check engine light is on. You can also take all the worry out of vacations when you hook it up before a road trip.
Should You Worry About Your Check Engine Light?
How do you know if the check engine light is trying to tell you there is a serious problem or if it is nothing to worry about? One way is to take the time out of your busy schedule, drive to the mechanic and pay a hefty fee to have them hook up their machine to your car's OBDII system and then tell you to tighten your gas cap as a result. Or you can get your own OBD diagnostic tool that will give you all the information you need right at your fingertips.
Onboard Diagnostic System
These simple devices attach to your automobile's OBDII (onboard diagnostic system) right under the dash just like the big machine at the mechanic shop does and it will give you the exact same readouts plus provide easy to understand graphs and explanations of those confusing codes your mechanic gives you to keep you in the dark as to what is really going on.
Simply take the OBD diagnostic system for a short ride with you when your check engine light comes on and then take it in the house to your personal computer and download the data. The website provided to you with your OBD diagnostic system will decipher the information and give you all the information you need to determine if the problem is serious or not at fractions of the cost of a mechanic's garage. The readout will also give you simple solutions to the easier fixes if they are available plus if you do need to take the car to your mechanic, you can go in well-armed with the knowledge you need to keep from being overcharged for their services.
The OBD system will also alert you to potentially damaging driving habits you may have acquired over time even when your check engine light is not blinking. Things like hard braking and excessive acceleration so that you can correct problems before they affect your car's mechanisms.
Benefits of OBD
There are even more benefits to your own OBD diagnostic system. Never get stuck with a lemon again by taking it on all of your test drives. With your own diagnostic system, you will be able to find out for yourself if your potential new or used car is in good operating order before you drive off the lot. You can even find out why the check engine light is on. You can also take all the worry out of vacations when you hook it up before a road trip.
# posted by Medical Information : 12:02 AM
7 Myths About The Color of Your Car
You may have heard that if you drive a red car you are more likely to get a speeding or other traffic ticket. This is just one of the myths and urban legends that are believed about what effect the color of your car may have.
1. Red cars get more tickets. There is no proof that people who drive red cars are any more likely to receive a traffic citation. Now if your car is a red corvette or mustang it might be that the driver is doing something that attracts attention, like speeding or driving recklessly. Someone driving a red pickup truck may go for years without getting a ticket or even being pulled over by the police.
2. Black cars are stolen more often. Black is popular with high performance cars and more manufacturers make their top selling models black. Thieves tend to steal cars that are a particular make and model, not a specific color.
3. Green cars are traded in or resold more quickly than any other color. This has not been observed by car dealers. Cars are generally traded in because the owner is purchasing a newer car or a car of another make and model.
4. Yellow cars are more easily seen by other drivers, resulting in fewer accidents. Again, this is just an urban legend. Other drivers should be on the lookout for cars of all colors.
5. Blue cars have the best resale value. This is not true. Cars with low miles and in good condition will sell for more.
6. Brown cars are driven by people who are set in their ways and are very inflexible with their dealings with others. Stubborn people drive cars of all colors.
7. White cars are the safest ones to own. There is no evidence to support this idea.
So drive any color car that you like. If you speed you will probably get a ticket. Trade it in when you like. Take care of your car and the resale value will be the highest it can be. Stay out of other driver’s blind spots so they can see you. Be flexible when dealing with others. Always drive safely and courteously and obey all laws. And most of all, enjoy your car, whatever color it is, and the time you spend driving it. Driving is a privilege, not a right. Be kind to other drivers and you will enjoy this privilege even more.
1. Red cars get more tickets. There is no proof that people who drive red cars are any more likely to receive a traffic citation. Now if your car is a red corvette or mustang it might be that the driver is doing something that attracts attention, like speeding or driving recklessly. Someone driving a red pickup truck may go for years without getting a ticket or even being pulled over by the police.
2. Black cars are stolen more often. Black is popular with high performance cars and more manufacturers make their top selling models black. Thieves tend to steal cars that are a particular make and model, not a specific color.
3. Green cars are traded in or resold more quickly than any other color. This has not been observed by car dealers. Cars are generally traded in because the owner is purchasing a newer car or a car of another make and model.
4. Yellow cars are more easily seen by other drivers, resulting in fewer accidents. Again, this is just an urban legend. Other drivers should be on the lookout for cars of all colors.
5. Blue cars have the best resale value. This is not true. Cars with low miles and in good condition will sell for more.
6. Brown cars are driven by people who are set in their ways and are very inflexible with their dealings with others. Stubborn people drive cars of all colors.
7. White cars are the safest ones to own. There is no evidence to support this idea.
So drive any color car that you like. If you speed you will probably get a ticket. Trade it in when you like. Take care of your car and the resale value will be the highest it can be. Stay out of other driver’s blind spots so they can see you. Be flexible when dealing with others. Always drive safely and courteously and obey all laws. And most of all, enjoy your car, whatever color it is, and the time you spend driving it. Driving is a privilege, not a right. Be kind to other drivers and you will enjoy this privilege even more.
# posted by Medical Information : 12:01 AM
Tuesday, February 05, 2008
Do Gifts Of Socks Suck Or Should You Stock Up?
Socks
If you like getting socks for Christmas or your birthday, then you are in the minority. No one likes socks, yet we all get them at one point or another in our lives. Why are these gifts so popular, why do we need them and why do people keep buying them for other people but never for themselves.
Do We Need Them?
Humans have been walking up right for a million or so years, and during the vast majority of our species' life, we have not used socks. If anything, we have worn shoes, usually made of leather, to protect our feet, so why do we wear socks?
Are they even necessary to wear? Do we need to wear something while we wear our shoes? Well, the truth is that we probably do not need socks but so many of us have become accustom to them that it is highly unlikely people are going to stop wearing socks anytime soon.
Of course, this does not answer the question of if we really need them. No matter what the answer is, whether we need them or not, socks still constitute a multi-billion dollar industry across the world.
Good Gift?
Ask anyone who has received the gift of socks and they will say no, while the people who give those gifts will say that they are.
For the people who receive the gift of socks, they don't like them because they see them as cheap and a gift that takes zero thought at all. While the people who give the gift of socks will like the gift for the exact same reasons, they are cheap and easy to find anywhere in the world. Of course, whether you buy them or get them, it is the thought that counts, no matter how small of a thought it was.
Conclusion
Socks are a very common gift, given by everyone to everyone else. They are cheap, easy to find and there are not usually any size restrictions, nor color restrictions, with most coming in the standard colors of white or black.
Whether they are needed by our species or not, they are bought by millions of people every year, putting thousands of people to work making a product that most people don't think about, but everyone uses. Who knew that there was so much to the gift of socks? Think about that the next time you put your socks on.
If you like getting socks for Christmas or your birthday, then you are in the minority. No one likes socks, yet we all get them at one point or another in our lives. Why are these gifts so popular, why do we need them and why do people keep buying them for other people but never for themselves.
Do We Need Them?
Humans have been walking up right for a million or so years, and during the vast majority of our species' life, we have not used socks. If anything, we have worn shoes, usually made of leather, to protect our feet, so why do we wear socks?
Are they even necessary to wear? Do we need to wear something while we wear our shoes? Well, the truth is that we probably do not need socks but so many of us have become accustom to them that it is highly unlikely people are going to stop wearing socks anytime soon.
Of course, this does not answer the question of if we really need them. No matter what the answer is, whether we need them or not, socks still constitute a multi-billion dollar industry across the world.
Good Gift?
Ask anyone who has received the gift of socks and they will say no, while the people who give those gifts will say that they are.
For the people who receive the gift of socks, they don't like them because they see them as cheap and a gift that takes zero thought at all. While the people who give the gift of socks will like the gift for the exact same reasons, they are cheap and easy to find anywhere in the world. Of course, whether you buy them or get them, it is the thought that counts, no matter how small of a thought it was.
Conclusion
Socks are a very common gift, given by everyone to everyone else. They are cheap, easy to find and there are not usually any size restrictions, nor color restrictions, with most coming in the standard colors of white or black.
Whether they are needed by our species or not, they are bought by millions of people every year, putting thousands of people to work making a product that most people don't think about, but everyone uses. Who knew that there was so much to the gift of socks? Think about that the next time you put your socks on.
# posted by Medical Information : 2:18 AM
Save A Whole Lot, With Wholesale Clothing
Wholesale Clothing
Not everyone can afford brand name clothing, yet everyone wants to look good in what they wear, however it reflects their personality. Thankfully, if you are not one for designer clothes, there are wholesale clothing outlets that allow a consumer to buy clothes that look and feel good, but at cheap prices.
Cheap or Expensive?
There will be individuals out there who will tell you that they will wear nothing that is not designer-labeled. They will refuse to even consider buying wholesale and putting anything but on the latest fashion on their body is blasphemy. Of course, those people will usually have plenty of money to afford those fashions. For the rest of us, staying on budget is more important than wearing whatever the big celebrities at that moment are putting on.
Buying cheap does not have to be a bad word, it can be something beneficial that will save you money so that, every so often, you will be able to buy a special designer outfit that you want. With wholesale clothing, you can save money on what you buy, yet get something that looks good.
Is it Bad?
It has a stigma that only soiled and dirty clothes are sold second-hand, and that they all sit in a big bin that people rummage through. However, wholesale clothing can be very nice and in no way is it soiled or dirty. In fact, some of the clothes that are sold wholesale are actually nicer than the clothes people spend oodles of money for.
For example, many consumers buy retro T-shirts that are marked in price, while wholesale shoppers can find the retro T-shirts that were made when the fashion was not retro, for a fraction of the price.
Conclusion
Wholesale clothing has helped a great deal of people stay on budget, while wearing clothes that look good and feel good. There is no reason that someone should have to make clothes out of curtains anymore when wholesale clothing exists. By shopping in the wholesale warehouses, and individual can find a fashion that fits them perfectly, both in personality and size, while spending much less than what they would at a designer store. In fact, they could probably buy 20 excellent shirts at a wholesale distributor for the price of one at a designer store.
Not everyone can afford brand name clothing, yet everyone wants to look good in what they wear, however it reflects their personality. Thankfully, if you are not one for designer clothes, there are wholesale clothing outlets that allow a consumer to buy clothes that look and feel good, but at cheap prices.
Cheap or Expensive?
There will be individuals out there who will tell you that they will wear nothing that is not designer-labeled. They will refuse to even consider buying wholesale and putting anything but on the latest fashion on their body is blasphemy. Of course, those people will usually have plenty of money to afford those fashions. For the rest of us, staying on budget is more important than wearing whatever the big celebrities at that moment are putting on.
Buying cheap does not have to be a bad word, it can be something beneficial that will save you money so that, every so often, you will be able to buy a special designer outfit that you want. With wholesale clothing, you can save money on what you buy, yet get something that looks good.
Is it Bad?
It has a stigma that only soiled and dirty clothes are sold second-hand, and that they all sit in a big bin that people rummage through. However, wholesale clothing can be very nice and in no way is it soiled or dirty. In fact, some of the clothes that are sold wholesale are actually nicer than the clothes people spend oodles of money for.
For example, many consumers buy retro T-shirts that are marked in price, while wholesale shoppers can find the retro T-shirts that were made when the fashion was not retro, for a fraction of the price.
Conclusion
Wholesale clothing has helped a great deal of people stay on budget, while wearing clothes that look good and feel good. There is no reason that someone should have to make clothes out of curtains anymore when wholesale clothing exists. By shopping in the wholesale warehouses, and individual can find a fashion that fits them perfectly, both in personality and size, while spending much less than what they would at a designer store. In fact, they could probably buy 20 excellent shirts at a wholesale distributor for the price of one at a designer store.
# posted by Medical Information : 2:16 AM
Monday, February 04, 2008
Client Marketing Audit Engine Builders
The paper is intended to outline the marketing situation of the Company and to make reasonable recommendations about the proper tact and development of a strategic marketing position. As written in A Framework for Marketing Management and Marketing Management Millennium Edition, Tenth Edition (Kotler, Philip), “Modern marketing calls for more than developing a good product, pricing it attractively, and making it accessible to target customers. Companies must also communicate with present and potential stakeholders, and with the general public. The marketing communications mix consists of five major modes of communication: advertising, sales promotion, public relations and publicity, personal selling, and direct marketing.”
Kotler also wrote that for a company to develop an “effective marketing communication requires eight steps: (1) Identify the target audience, (2) determine the communication objectives, (3) design the message, (4) select the communication channels, (5) establish the total communication budget, (6) decide on the communication mix, (7) measure the communications’ results, and (8) manage the integrated marketing communication process.
Within the following marketing audit an honest attempt has been endeavored to accurately observe behaviors and contemporaneously record conversations with employees, ownership, prospects and customers in such a was as not to divulge the identity of the source. Hopefully, such anonymity has bolstered the honesty of those that have given information to the author. In turn, the resulting honesty should have improved the chances for an accurate compilation of the current marketing position of the Company. To the extent that accrued sales data and financial statement information was not available for review and comparison to industry norms and metrics the audit was limited to interviews and subjective data. While some polling has been executed with customers in order to paint an accurate picture of local and surrounding demographics and market share, the Company should endeavor to obtain more comprehensive market share data to fully exercise their place in the industry.
During the past five weeks, the following elements of the marketing position of the company have been reviewed:
Part I. Marketing Environment Audit
· Macro environment
· Demographic
· Economic
· Technological
· Competitors
Part II. Marketing Strategy Audit
· Business Mission
· Strategy
Part III. Marketing Organization Audit
· Formal Structure
· Functional Efficiency
· Interface Efficiency
Part IV. Marketing Systems Audit
· Marketing Control System
· New-Product Development
Part V. Marketing Productivity Audit
· Profitability Analysis
· Cost-Effective Analysis:
Part VI. Marketing Function Audit
· Products
· Price
· Distribution
· Sales Force
Essentially it is the Auditor’s opinion that the Company suffers no problems that well thought out communication both internal and external to the firm coupled with consistent execution through solid team building processes and a permanent change in attitude cannot remedy. Albeit there lies strong institutional resistance to change in the Company which is endemic to most all small closely held operations, much can be done to effect the positive change absolutely required if the Company ever desires to stretch beyond a local company serving customers haphazardly.
Part I. Marketing Environment Audit
Macro environment
Demographic:
Since the customer demographics include direct retail purchasers as well as automotive engine repair shops we look to the individuals and their buying habits within the two groups. First, the individual buying habits of the customers dictates how to approach not only the existing demographic but new undeveloped markets as well. Traditionally, the Company has combined mass mailing with direct in person customer contact by the outside marketing department. In 2000, a major competitor in the rebuilt engine company from Indiana, “Jasper”, entered the Texas market by employing a direct sales force with full management staff in the major markets. Jasper sells directly to the end user, the repair shop mechanic and this approach has changed the way customers can buy engines. In addition, ownership has caused Internet exposure via the websites to become formidable additions to the strategic marketing front consistently generating almost 40% of the sales volume according to ownership since no financial data is made available to employees for management purposes. Jasper prices significantly higher than CLIENT, Inc. but offers a stout warranty. The Company can compete on both the distance advantage and the warranty if it accounts for it in price. In response to Jasper as well as a declined engine market, the company has hired a marketing person to lead the marketing and sales effort for the foreseeable future. Within the last two months, CLIENT., INC mailed 8800 pieces of a combination flyer event invitation to remind customers that CLIENT., INC is still in business. The mailer resulted in approximately 100 attendees to the barbeque event November 8, 2003. Two or three motors were sold as a result. Economic:
No doubt exists that as long as man drives the internal combustion engine; demand will exist for rebuilt replacement engines. CLIENT., INC stands ready to serve this demand. Several factors contribute to the overall demand in a given market as regards engines. First, the general economic health can contribute to whether people drive their cars longer requiring sometimes a replacement engine or they buy a new one. CLIENT., INC obviously prefers the former. Price conditions currently are tough as what is believed to be an end to general industry compression in the number of engine producers, which started in late 2000 and is now tapering off. Nevertheless, ownership has attributed its loss in volume to a poor economy while this Auditor believes a case could be made that the business has shrunk due to improper handling of several strategic issues. Ownership’s short-term attitude to the cost of warranty rather than coupling that with the consequences of irritating customers over warranty such that they cease the relationship may not have been realized.
As a response to this compression, CLIENT., INC has laid off much staff shrinking the payroll to have its height in 2000 when gross sales were also double what they are today. The Company has held prices stable for the past eighteen months, as it has found innovative ways to cut costs. Technological:
The President has indicated a desire to transform the company from a mom and pop operation to a firm that allows rigorously recruited and hired employees to take charge and responsibility of the company’s destiny toward growth and profitability so that all stakeholders will prosper. As such, systems from accounting to order entry to dispatch, communications and fuel and fleet management must be improved and brought up to date so that the company can jump ahead of expectations and get away from the reactionary mode of operating. New skill sets must be recruited to fit the model if this company is going to ever achieve anything more than a fifty-employee company. Competitors:
As indicated earlier, Jasper Engines is a late entry to the Texas market and at the top of the price tier. Other competitors include Four Star, Thunderbolt, Jasper, Roadmaster and others as well as local small town machine shops. Jasper has effectuated a policy to sell to anyone. Others have marketed repair shops but tend to work through parts distributors where possible. Summary Conclusion Part I.
In 2000, the Texas remanufactured auto engine market changed by the entry of Indiana’s Jasper Engine and Transmissions to the State. Jasper changed the industry here not only by entering as a formidable competitor but in their marketing tact of selling directly to the consumer through the repair shop rather than through a jobber or distribution network. Jasper seized onto the extreme high dollar end of the market with its pricing structure where the Company and others missed out by pricing too low and delivering lower quality.
Economic conditions generally declined the auto market and this took auto engine remanufactures with it. As a result to market belt tightening the Company’s ownership made the strategic error of electing a perceived cash flow remedy of not paying warranty claims for shabby craftsmanship rather than controlling cost in a more efficient manner and preserving customer relationships. The Company has as a result lost 45% of year 2000 top line sales.
The Company’s technology is par with industry in the plant but at least ten years lagging in order processing and information technology. The Company has no network administrator and problems result.
As the market has stabilized during 2003, the Company by recognizing opportunities and grasping a second wind now endeavors to position itself to capture market share in risk balanced market place activities and niches.
Part II. Marketing Strategy Audit
Business Mission:
Although ownership possesses a clear mind of mission in the generic sense, part of the mission gets confused when verbally imparted to the employees. That is to say that no visible written strategic business plan of action or business mission exists. If one does exist it no promotion exists or is made available to employees for empowerment and accountability purposes.
The owner and leadership have indicated their desire to recapture lost accounts and develop new channels and customer niches and are willing to invest the time, energy and dollars to do so. The entire process of this marketing audit has indirectly caused a spur in the thinking of what the Company is doing and why they are doing it. In other words, the ownership and employees have begun to realize that positive change is a good thing and that in order to thrive in a global engine market a firm must be flexible and “roll” with market conditions and demands. Customers will not accept less than superior service and a proper pricing model; they will just take their order to the competition.
Marketing Objectives and Goals:
The marketing objectives and goals are the proverbial “Let’s grow” which is to say that no formal written goals and objectives are recorded or articulated to the team. The general employee temperament is stagnation at keeping their job rather than working and dreaming to excel and actually enjoy coming to work. In other words, employees take care of themselves first and the Company (the President) and Customers next. As such, the only way to plan marketing and measure performance is from the daily profit and loss statement, which only seems to be available to the owner and not managers or staff. The purpose of this audit is to determine the action items needed to formulate a formal marketing policy that the staff may implement. Strategy:
While the strategy may be clear in the mind of the ownership of the company, there is tremendous vagueness when an employee is asked the question. The ownership is clear in vision albeit not documented so that it may be measured. The company is not using best basis or best practice for market segmentation nor does it have a clear criterion for rating segments and choosing the best ones the company merely sells to the one on the phone or in their face first. There is no formal marketing resources allocation mix. Monies are provided when the ownership believes the task will be beneficial. Moreover, “the Marketing Budget” exists in the ownership mind but not on a real budget whereas a management team could be charged and then held accountable for results.
Summary Conclusion Part II.
The Company has no formalized mission statement. Disconnection exists between ownership goals and employee execution. Marketing and sales goals are articulated as “Let’s grow.” The ownership has requested this audit to identify problem areas in order to establish and action plan for 2004. Marketing strategy should be written and shared among the employees for morale, accountability, incentive, quality and brand imaging.
Part III. Marketing Organization Audit
Formal Structure:
Prior to September 2003, there was no concentrated marketing effort for well over a year. Customer satisfaction has not been made a responsibility of Marketing, Sales or Production but rather the ownership handles “heat cases” as they eventually make their way to him. Once these situations arrive at “firefighter headquarters.” Headquarters consists of a small desk with an outdated obsolete computer networked to a “Novell” system that is so unproductive when one loads any current day program “the whole network is slowed”, according to one employee. The owner either “handles” it right then or “puts them in cue.” Cue means that they go on a wall file for further negotiation. Most all of the employees believe that customers’ dissatisfaction is so highly enhanced and embellished by this cuing of complaints or untimely resolution that lost customers are the result. A new warranty mechanism must be articulated and implemented. Marketing activities are ad hoc. Functional Efficiency:
Good communication and working relations between marketing and sales now exists. Since overcoming a rocky beginning in September between this Auditor and certain long time entrenched employees, sales and marketing are in constant communication with each other. In the past, the “sales guy” would just go about his business and there was no communication between him and other staff. Product managers (General Manager) are not able to plan profit or sales volume due to no reporting available. Interface Efficiency: There are substantial problems as regards communication and interaction between sales and manufacturing to the extent that the manufacturing manager seems to employ an “us (manufacturing) against them (sales)” philosopy. This individual told the author in October 2003 in an attempted impromptu leadership meeting that “there is nothing that we can do to get better, we are doin’ it as well as it can be done.” Many employees in the inside have stated that the manufacturing manager has threatened the owner in the past with a total labor walkout if his demands are not accommodated. As a result to this and this employees general attitude, the inside the office leadership resents this individual and that causes apprehension about the working relationship so both sides ignore each other. Lower quality, customer satisfaction and high warranty costs are the resulting victim in the end. The established détente and dysfunctional operation cause problems to the extent that communication and cooperation is extremely difficult. The auditor believes that this dysfunctional behavior creates and indeterminable hidden cost to the Company in dollars due to diminished quality and morale. One only needs to review the accompanying photographs on the next page to understand the true room for improvement just by noticing the filthy and non-inspected for safety working conditions. As such the Auditor, while not a certified safety inspector believes that if a regulatory agency like Occupational Safety and Health Administration were to inspect the plant, the Company would incur massive fines. This slip-shod manner in operations carries over into the general image of the Company through the delivery model. Summary Conclusion Part III.
No concentrated marketing effort has existed for at least the last year. Customer satisfaction is handled on an emergency basis as a rule and the old adage of the squeaky wheel gets the grease. Sales counter personnel are distracted with too many non-revenue producing activities. Sales and marketing are jointly working to expand the “thinking” of personnel in order to deliver a superior product to customers. Warranty cash expended is weighed more heavily than long-term customer effects.
Part IV. Marketing Systems Audit
Marketing Control System:
There is no annual plan objective to track or gauge achievement. The ownership rather than the management periodically reviews product profitability, markets, and channels of distribution. Marketing costs are ad-hoc evaluated with the gut instinct rather than with formality or plan. Again, if such a plan exists it is not shared with leadership since the owner is the leader. This control system achieves the result of stifling growth rather than enhancing it. The Auditor makes recognition of ownership’s desire and new found efforts to step back and allow leaders to germinate a new initiative of team work, accountability and profitability.
New-Product Development:
The company is not well organized to gather, generate or screen new-product ideas? Idea generation comes from spur of the moment conversations held with many interruptions and no execution or very difficult execution consequences. It is operated with loose, shoot from the hip mentality with the ownership dictating his desires since as the employee consensus says, “he knows everything and a lot better than us.” In the past the owner has executed much research. Employees perceive that personal initiative is fruitless, not rewarded and discouraged. The disconnection between facilitating passive aggressive behavior and honest communication cause tension when the owner “is around.” This complaint requires that goals, targets and minimum standards for performance dictate rewards and compensation increases. The old saying of just giving him/her enough rope to hang him/herself would apply here. The perception of this attitude by employees is two fold. By placing all blame on the owner, employees avoid taking responsibility for any actions or results. Vice versa, the owner by not properly delegating and then holding personnel accountable only ratifies the employee attitude. Adequate and proper market and product testing is to “whatever the market will bear.” In summation, the owner commits the traditional sin, searching for approval from employees rather than pushing them to develop their talents and allowing them to make mistakes to grow. Summary Conclusion Part IV.
Information is not disseminated to people that need to take responsibility for their daily performance. New-product development does not exist.
Part V. Marketing Productivity Audit
Profitability Analysis:
The company’s profitability of different products, markets, territories and channels of distribution is unknown to the extent that the ownership does not divulge that information to employees. There are no findings pursuant to entry or exit from markets to the extent rendered in the aforementioned statement. Cost-Effective Analysis:
Marketing activities are standard and in line given the developmental level of the Company. Summary Conclusion Part V.
Distribute information to trusted team members and enlist team building with true limited authority for a budget to achieve objectives.
Part VI. Marketing Function Audit
Products:
Product-line objectives are to double sales volume to where it was three years ago so overhead costs are contained. It is unknown which product-lines should be expanded or contracted since that information is not made available by ownership.
Buyers’ attitude toward our general product is good until there is a warranty issue. The ownership executes all warranty claims and takes a short-term approach to solving the claim. While the ownership believes most engine issues are caused by mechanic at installation (this action mitigates costs by blaming the customer), once the claim is not handled to the customers’ satisfaction that customer goes away and tells many to do the same. The general quality of the product to its presentation is in drastic need of improvement. Price:
The company’s pricing objectives are to be price competitive and we are. The ownership constantly reviews and is aware of the market as regards price. Customers that buy believe that we are competitive. Customers that do not buy do so for an array of reasons. Distribution:
Since inception the distribution objectives have been ad-hoc with not much order place on efficiency or consolidation. Now, that ownership has developed the means to wholesale our product by way of a special d/b/a/ and website dedicated to the parts distributor (jobber), marketing can develop new customers and channels through such. The company considers expanding its distribution channels to further diversify its channel mix from delivery and pick up. Advertising, Sales Promotion, Publicity, and Direct Marketing:
The company has no formalized advertising budget, at least not one known by the staff. The company does not employ media except the United States Mail. Ownership has recently chosen to purchase weekly newspaper type advertisement commencing January 2004 convinced that during the Christmas season peoples cars always run and never need motors. The company has a database but does not employ on-line marketing save the website and sporadically (used once or twice according to staff memory) uses coupons.
Sales Force:
What are the sales force objectives? Unknown. Is the sales force large enough to accomplish the company’s objectives? Debatable. The three salesmen at the counter probably exert more effort and activity during the day than any other employees in the company. The direct issue in sales is not effort or activity but direction or lack thereof. The salesmen serve not only as sales people to walk in customers and in bound phone calls but they also serve the Company in a myriad of functions.
The salesmen answer the phones of the company fielding every single in coming call. This is an issue because it is a distraction from sales. In a move to cut costs in recent memory, ownership decided to retire the receptionist. This move was good and bad. When no receptionist answered all the calls, every call then and now arrived straight at the sales counter. The resulting poor allocation of labor may have decreased payroll costs significantly but the underlying hidden costs of lost sales is not measured or realized. In a word, sales guys need to be on the phone with customers or prospects. This customer service or prospecting time is lost due to the overwhelming distraction of having to jump to answer the phone when it rings. While the Auditor is not informed of payroll pursuant to sales personnel, it is imagined with certainty that the lost dollars in opportunity costs relative to lost sales overwhelmingly advocates a better system. The sales force is not organized. The sales manager is also the General Manager as well as a salesman. Procedures are not adequate for setting quotas or evaluating performance. Without any measurement no incentives are paid and employees are unhappy about lower compensation. How does the company sales force compare to competitors’ sales forces? Unknown.
As the means to determining all of these questions, the Auditor tried to review various data compiled by the Company over the past few years. Specifically, we wanted to look to daily, weekly and monthly sales totals and then compare these to their past equivalents. In order to verify the authenticity of the historical data, we wanted to analyze the data to determine who the customers have been and why, what factors yield the best gross margin as well as net income. We would have reviewed this data within the prior committed time limits but such data is not made available to employees to craft a timely report to management. The most difficult part of the analysis will be gaining access to the data since the computer system is not now maintained and not administered from a networking position. This cost cutting measure could be catastrophic is any one of a number of issues occurs.
Summary Conclusion Part VI.
Overhead costs have been slashed to a minimum. Ownership has indicated a goal of year 2000 sales volume at $5,000,000. Warranty costs must be managed as well as the good will of the customer. Look to quality deficiencies in the manufacturing process to cut the true cost of warranties by implementing zero tolerance for defects. Wear safety glasses in the plant and institute at least minimal safety procedures. Enforce the procedures and allow no one to work outside the law or rules.
The Company should balance advertising and marketing with a consistent message to customers. Formalize the marketing, advertising and sales budget as well as all other operating budgets. Improve the quality of product by improving the quality of workers. Start with the worst performing 10% and replace them with more hungry individuals. Eliminate those with non-cooperative or difficult personalities. Remember the Company has to deal with the public and that means that everyone contributes to sales, image and quality. Focus employees on their primary and secondary jobs and eliminate distractions.
Recommended Marketing Improvements
· Enlist team work among leadership
· Establish budget
· Set monthly sales targets
· Monitor daily the progress
· Allocate marketing dollars to maximum impact media
· Advertise
· Diversify media used in advertising
· Promote customer events that pay for themselves via increased sales
· Establish safety and quality as internal standards of living
· Translate internal safety and quality to the brand and the market
· Establish competitors product and pricing and achieve “best of class” solutions
Kotler also wrote that for a company to develop an “effective marketing communication requires eight steps: (1) Identify the target audience, (2) determine the communication objectives, (3) design the message, (4) select the communication channels, (5) establish the total communication budget, (6) decide on the communication mix, (7) measure the communications’ results, and (8) manage the integrated marketing communication process.
Within the following marketing audit an honest attempt has been endeavored to accurately observe behaviors and contemporaneously record conversations with employees, ownership, prospects and customers in such a was as not to divulge the identity of the source. Hopefully, such anonymity has bolstered the honesty of those that have given information to the author. In turn, the resulting honesty should have improved the chances for an accurate compilation of the current marketing position of the Company. To the extent that accrued sales data and financial statement information was not available for review and comparison to industry norms and metrics the audit was limited to interviews and subjective data. While some polling has been executed with customers in order to paint an accurate picture of local and surrounding demographics and market share, the Company should endeavor to obtain more comprehensive market share data to fully exercise their place in the industry.
During the past five weeks, the following elements of the marketing position of the company have been reviewed:
Part I. Marketing Environment Audit
· Macro environment
· Demographic
· Economic
· Technological
· Competitors
Part II. Marketing Strategy Audit
· Business Mission
· Strategy
Part III. Marketing Organization Audit
· Formal Structure
· Functional Efficiency
· Interface Efficiency
Part IV. Marketing Systems Audit
· Marketing Control System
· New-Product Development
Part V. Marketing Productivity Audit
· Profitability Analysis
· Cost-Effective Analysis:
Part VI. Marketing Function Audit
· Products
· Price
· Distribution
· Sales Force
Essentially it is the Auditor’s opinion that the Company suffers no problems that well thought out communication both internal and external to the firm coupled with consistent execution through solid team building processes and a permanent change in attitude cannot remedy. Albeit there lies strong institutional resistance to change in the Company which is endemic to most all small closely held operations, much can be done to effect the positive change absolutely required if the Company ever desires to stretch beyond a local company serving customers haphazardly.
Part I. Marketing Environment Audit
Macro environment
Demographic:
Since the customer demographics include direct retail purchasers as well as automotive engine repair shops we look to the individuals and their buying habits within the two groups. First, the individual buying habits of the customers dictates how to approach not only the existing demographic but new undeveloped markets as well. Traditionally, the Company has combined mass mailing with direct in person customer contact by the outside marketing department. In 2000, a major competitor in the rebuilt engine company from Indiana, “Jasper”, entered the Texas market by employing a direct sales force with full management staff in the major markets. Jasper sells directly to the end user, the repair shop mechanic and this approach has changed the way customers can buy engines. In addition, ownership has caused Internet exposure via the websites to become formidable additions to the strategic marketing front consistently generating almost 40% of the sales volume according to ownership since no financial data is made available to employees for management purposes. Jasper prices significantly higher than CLIENT, Inc. but offers a stout warranty. The Company can compete on both the distance advantage and the warranty if it accounts for it in price. In response to Jasper as well as a declined engine market, the company has hired a marketing person to lead the marketing and sales effort for the foreseeable future. Within the last two months, CLIENT., INC mailed 8800 pieces of a combination flyer event invitation to remind customers that CLIENT., INC is still in business. The mailer resulted in approximately 100 attendees to the barbeque event November 8, 2003. Two or three motors were sold as a result. Economic:
No doubt exists that as long as man drives the internal combustion engine; demand will exist for rebuilt replacement engines. CLIENT., INC stands ready to serve this demand. Several factors contribute to the overall demand in a given market as regards engines. First, the general economic health can contribute to whether people drive their cars longer requiring sometimes a replacement engine or they buy a new one. CLIENT., INC obviously prefers the former. Price conditions currently are tough as what is believed to be an end to general industry compression in the number of engine producers, which started in late 2000 and is now tapering off. Nevertheless, ownership has attributed its loss in volume to a poor economy while this Auditor believes a case could be made that the business has shrunk due to improper handling of several strategic issues. Ownership’s short-term attitude to the cost of warranty rather than coupling that with the consequences of irritating customers over warranty such that they cease the relationship may not have been realized.
As a response to this compression, CLIENT., INC has laid off much staff shrinking the payroll to have its height in 2000 when gross sales were also double what they are today. The Company has held prices stable for the past eighteen months, as it has found innovative ways to cut costs. Technological:
The President has indicated a desire to transform the company from a mom and pop operation to a firm that allows rigorously recruited and hired employees to take charge and responsibility of the company’s destiny toward growth and profitability so that all stakeholders will prosper. As such, systems from accounting to order entry to dispatch, communications and fuel and fleet management must be improved and brought up to date so that the company can jump ahead of expectations and get away from the reactionary mode of operating. New skill sets must be recruited to fit the model if this company is going to ever achieve anything more than a fifty-employee company. Competitors:
As indicated earlier, Jasper Engines is a late entry to the Texas market and at the top of the price tier. Other competitors include Four Star, Thunderbolt, Jasper, Roadmaster and others as well as local small town machine shops. Jasper has effectuated a policy to sell to anyone. Others have marketed repair shops but tend to work through parts distributors where possible. Summary Conclusion Part I.
In 2000, the Texas remanufactured auto engine market changed by the entry of Indiana’s Jasper Engine and Transmissions to the State. Jasper changed the industry here not only by entering as a formidable competitor but in their marketing tact of selling directly to the consumer through the repair shop rather than through a jobber or distribution network. Jasper seized onto the extreme high dollar end of the market with its pricing structure where the Company and others missed out by pricing too low and delivering lower quality.
Economic conditions generally declined the auto market and this took auto engine remanufactures with it. As a result to market belt tightening the Company’s ownership made the strategic error of electing a perceived cash flow remedy of not paying warranty claims for shabby craftsmanship rather than controlling cost in a more efficient manner and preserving customer relationships. The Company has as a result lost 45% of year 2000 top line sales.
The Company’s technology is par with industry in the plant but at least ten years lagging in order processing and information technology. The Company has no network administrator and problems result.
As the market has stabilized during 2003, the Company by recognizing opportunities and grasping a second wind now endeavors to position itself to capture market share in risk balanced market place activities and niches.
Part II. Marketing Strategy Audit
Business Mission:
Although ownership possesses a clear mind of mission in the generic sense, part of the mission gets confused when verbally imparted to the employees. That is to say that no visible written strategic business plan of action or business mission exists. If one does exist it no promotion exists or is made available to employees for empowerment and accountability purposes.
The owner and leadership have indicated their desire to recapture lost accounts and develop new channels and customer niches and are willing to invest the time, energy and dollars to do so. The entire process of this marketing audit has indirectly caused a spur in the thinking of what the Company is doing and why they are doing it. In other words, the ownership and employees have begun to realize that positive change is a good thing and that in order to thrive in a global engine market a firm must be flexible and “roll” with market conditions and demands. Customers will not accept less than superior service and a proper pricing model; they will just take their order to the competition.
Marketing Objectives and Goals:
The marketing objectives and goals are the proverbial “Let’s grow” which is to say that no formal written goals and objectives are recorded or articulated to the team. The general employee temperament is stagnation at keeping their job rather than working and dreaming to excel and actually enjoy coming to work. In other words, employees take care of themselves first and the Company (the President) and Customers next. As such, the only way to plan marketing and measure performance is from the daily profit and loss statement, which only seems to be available to the owner and not managers or staff. The purpose of this audit is to determine the action items needed to formulate a formal marketing policy that the staff may implement. Strategy:
While the strategy may be clear in the mind of the ownership of the company, there is tremendous vagueness when an employee is asked the question. The ownership is clear in vision albeit not documented so that it may be measured. The company is not using best basis or best practice for market segmentation nor does it have a clear criterion for rating segments and choosing the best ones the company merely sells to the one on the phone or in their face first. There is no formal marketing resources allocation mix. Monies are provided when the ownership believes the task will be beneficial. Moreover, “the Marketing Budget” exists in the ownership mind but not on a real budget whereas a management team could be charged and then held accountable for results.
Summary Conclusion Part II.
The Company has no formalized mission statement. Disconnection exists between ownership goals and employee execution. Marketing and sales goals are articulated as “Let’s grow.” The ownership has requested this audit to identify problem areas in order to establish and action plan for 2004. Marketing strategy should be written and shared among the employees for morale, accountability, incentive, quality and brand imaging.
Part III. Marketing Organization Audit
Formal Structure:
Prior to September 2003, there was no concentrated marketing effort for well over a year. Customer satisfaction has not been made a responsibility of Marketing, Sales or Production but rather the ownership handles “heat cases” as they eventually make their way to him. Once these situations arrive at “firefighter headquarters.” Headquarters consists of a small desk with an outdated obsolete computer networked to a “Novell” system that is so unproductive when one loads any current day program “the whole network is slowed”, according to one employee. The owner either “handles” it right then or “puts them in cue.” Cue means that they go on a wall file for further negotiation. Most all of the employees believe that customers’ dissatisfaction is so highly enhanced and embellished by this cuing of complaints or untimely resolution that lost customers are the result. A new warranty mechanism must be articulated and implemented. Marketing activities are ad hoc. Functional Efficiency:
Good communication and working relations between marketing and sales now exists. Since overcoming a rocky beginning in September between this Auditor and certain long time entrenched employees, sales and marketing are in constant communication with each other. In the past, the “sales guy” would just go about his business and there was no communication between him and other staff. Product managers (General Manager) are not able to plan profit or sales volume due to no reporting available. Interface Efficiency: There are substantial problems as regards communication and interaction between sales and manufacturing to the extent that the manufacturing manager seems to employ an “us (manufacturing) against them (sales)” philosopy. This individual told the author in October 2003 in an attempted impromptu leadership meeting that “there is nothing that we can do to get better, we are doin’ it as well as it can be done.” Many employees in the inside have stated that the manufacturing manager has threatened the owner in the past with a total labor walkout if his demands are not accommodated. As a result to this and this employees general attitude, the inside the office leadership resents this individual and that causes apprehension about the working relationship so both sides ignore each other. Lower quality, customer satisfaction and high warranty costs are the resulting victim in the end. The established détente and dysfunctional operation cause problems to the extent that communication and cooperation is extremely difficult. The auditor believes that this dysfunctional behavior creates and indeterminable hidden cost to the Company in dollars due to diminished quality and morale. One only needs to review the accompanying photographs on the next page to understand the true room for improvement just by noticing the filthy and non-inspected for safety working conditions. As such the Auditor, while not a certified safety inspector believes that if a regulatory agency like Occupational Safety and Health Administration were to inspect the plant, the Company would incur massive fines. This slip-shod manner in operations carries over into the general image of the Company through the delivery model. Summary Conclusion Part III.
No concentrated marketing effort has existed for at least the last year. Customer satisfaction is handled on an emergency basis as a rule and the old adage of the squeaky wheel gets the grease. Sales counter personnel are distracted with too many non-revenue producing activities. Sales and marketing are jointly working to expand the “thinking” of personnel in order to deliver a superior product to customers. Warranty cash expended is weighed more heavily than long-term customer effects.
Part IV. Marketing Systems Audit
Marketing Control System:
There is no annual plan objective to track or gauge achievement. The ownership rather than the management periodically reviews product profitability, markets, and channels of distribution. Marketing costs are ad-hoc evaluated with the gut instinct rather than with formality or plan. Again, if such a plan exists it is not shared with leadership since the owner is the leader. This control system achieves the result of stifling growth rather than enhancing it. The Auditor makes recognition of ownership’s desire and new found efforts to step back and allow leaders to germinate a new initiative of team work, accountability and profitability.
New-Product Development:
The company is not well organized to gather, generate or screen new-product ideas? Idea generation comes from spur of the moment conversations held with many interruptions and no execution or very difficult execution consequences. It is operated with loose, shoot from the hip mentality with the ownership dictating his desires since as the employee consensus says, “he knows everything and a lot better than us.” In the past the owner has executed much research. Employees perceive that personal initiative is fruitless, not rewarded and discouraged. The disconnection between facilitating passive aggressive behavior and honest communication cause tension when the owner “is around.” This complaint requires that goals, targets and minimum standards for performance dictate rewards and compensation increases. The old saying of just giving him/her enough rope to hang him/herself would apply here. The perception of this attitude by employees is two fold. By placing all blame on the owner, employees avoid taking responsibility for any actions or results. Vice versa, the owner by not properly delegating and then holding personnel accountable only ratifies the employee attitude. Adequate and proper market and product testing is to “whatever the market will bear.” In summation, the owner commits the traditional sin, searching for approval from employees rather than pushing them to develop their talents and allowing them to make mistakes to grow. Summary Conclusion Part IV.
Information is not disseminated to people that need to take responsibility for their daily performance. New-product development does not exist.
Part V. Marketing Productivity Audit
Profitability Analysis:
The company’s profitability of different products, markets, territories and channels of distribution is unknown to the extent that the ownership does not divulge that information to employees. There are no findings pursuant to entry or exit from markets to the extent rendered in the aforementioned statement. Cost-Effective Analysis:
Marketing activities are standard and in line given the developmental level of the Company. Summary Conclusion Part V.
Distribute information to trusted team members and enlist team building with true limited authority for a budget to achieve objectives.
Part VI. Marketing Function Audit
Products:
Product-line objectives are to double sales volume to where it was three years ago so overhead costs are contained. It is unknown which product-lines should be expanded or contracted since that information is not made available by ownership.
Buyers’ attitude toward our general product is good until there is a warranty issue. The ownership executes all warranty claims and takes a short-term approach to solving the claim. While the ownership believes most engine issues are caused by mechanic at installation (this action mitigates costs by blaming the customer), once the claim is not handled to the customers’ satisfaction that customer goes away and tells many to do the same. The general quality of the product to its presentation is in drastic need of improvement. Price:
The company’s pricing objectives are to be price competitive and we are. The ownership constantly reviews and is aware of the market as regards price. Customers that buy believe that we are competitive. Customers that do not buy do so for an array of reasons. Distribution:
Since inception the distribution objectives have been ad-hoc with not much order place on efficiency or consolidation. Now, that ownership has developed the means to wholesale our product by way of a special d/b/a/ and website dedicated to the parts distributor (jobber), marketing can develop new customers and channels through such. The company considers expanding its distribution channels to further diversify its channel mix from delivery and pick up. Advertising, Sales Promotion, Publicity, and Direct Marketing:
The company has no formalized advertising budget, at least not one known by the staff. The company does not employ media except the United States Mail. Ownership has recently chosen to purchase weekly newspaper type advertisement commencing January 2004 convinced that during the Christmas season peoples cars always run and never need motors. The company has a database but does not employ on-line marketing save the website and sporadically (used once or twice according to staff memory) uses coupons.
Sales Force:
What are the sales force objectives? Unknown. Is the sales force large enough to accomplish the company’s objectives? Debatable. The three salesmen at the counter probably exert more effort and activity during the day than any other employees in the company. The direct issue in sales is not effort or activity but direction or lack thereof. The salesmen serve not only as sales people to walk in customers and in bound phone calls but they also serve the Company in a myriad of functions.
The salesmen answer the phones of the company fielding every single in coming call. This is an issue because it is a distraction from sales. In a move to cut costs in recent memory, ownership decided to retire the receptionist. This move was good and bad. When no receptionist answered all the calls, every call then and now arrived straight at the sales counter. The resulting poor allocation of labor may have decreased payroll costs significantly but the underlying hidden costs of lost sales is not measured or realized. In a word, sales guys need to be on the phone with customers or prospects. This customer service or prospecting time is lost due to the overwhelming distraction of having to jump to answer the phone when it rings. While the Auditor is not informed of payroll pursuant to sales personnel, it is imagined with certainty that the lost dollars in opportunity costs relative to lost sales overwhelmingly advocates a better system. The sales force is not organized. The sales manager is also the General Manager as well as a salesman. Procedures are not adequate for setting quotas or evaluating performance. Without any measurement no incentives are paid and employees are unhappy about lower compensation. How does the company sales force compare to competitors’ sales forces? Unknown.
As the means to determining all of these questions, the Auditor tried to review various data compiled by the Company over the past few years. Specifically, we wanted to look to daily, weekly and monthly sales totals and then compare these to their past equivalents. In order to verify the authenticity of the historical data, we wanted to analyze the data to determine who the customers have been and why, what factors yield the best gross margin as well as net income. We would have reviewed this data within the prior committed time limits but such data is not made available to employees to craft a timely report to management. The most difficult part of the analysis will be gaining access to the data since the computer system is not now maintained and not administered from a networking position. This cost cutting measure could be catastrophic is any one of a number of issues occurs.
Summary Conclusion Part VI.
Overhead costs have been slashed to a minimum. Ownership has indicated a goal of year 2000 sales volume at $5,000,000. Warranty costs must be managed as well as the good will of the customer. Look to quality deficiencies in the manufacturing process to cut the true cost of warranties by implementing zero tolerance for defects. Wear safety glasses in the plant and institute at least minimal safety procedures. Enforce the procedures and allow no one to work outside the law or rules.
The Company should balance advertising and marketing with a consistent message to customers. Formalize the marketing, advertising and sales budget as well as all other operating budgets. Improve the quality of product by improving the quality of workers. Start with the worst performing 10% and replace them with more hungry individuals. Eliminate those with non-cooperative or difficult personalities. Remember the Company has to deal with the public and that means that everyone contributes to sales, image and quality. Focus employees on their primary and secondary jobs and eliminate distractions.
Recommended Marketing Improvements
· Enlist team work among leadership
· Establish budget
· Set monthly sales targets
· Monitor daily the progress
· Allocate marketing dollars to maximum impact media
· Advertise
· Diversify media used in advertising
· Promote customer events that pay for themselves via increased sales
· Establish safety and quality as internal standards of living
· Translate internal safety and quality to the brand and the market
· Establish competitors product and pricing and achieve “best of class” solutions
# posted by Medical Information : 12:22 AM
Physics - Magnetism and How it Works
Since our beginnings, mankind has always known about magnets and knew that, based on their position, magnets can either attract or repel one another and that they attract objects made out of iron. However, beforehand, no one could explain why it was like this or could not think how to make practical use out of them.
Today however, we know that there are magnetic areas of microscopic size in many substances. If they are oriented identically, they become magnetic, creating around themselves a magnetic field. If we place such an object in close proximity to another magnetic object, they either attract or repel one another, depending on whether the respective magnetic fields are identically or oppositely oriented.
Magnetic fields are not in any major way influenced by their surroundings and, contrary to sound, work in a vacuum. Furthermore, the magnetic material within them can neither be removed nor changed.
A compass using a magnetic needle was the first and, for a long time, the only practical use of magnets. The Chinese apparently discovered the magnet several thousand years ago, the Europeans only until a few hundred years ago. A compass needle is a small magnet which easily rotates and which orients itself according to the magnetic field of the earth, in a north/south direction. Besides the position of the stars, compasses were for a long time the only navigational aid used by sailors.
The magnetic field of the earth is created by the convection (flow) of molten iron in the earth's core. The geographical and magnetic poles are not exactly the same and the magnetic north pole is close to the earth's geographic south pole.
At present, mostly only electromagnets are used in technical practice because they are more effective and their strength and orientation can be easily regulated.
An electromagnet is composed of an electrical conductor wound around a core, usually made of iron. If a current passes through this winding (electrical coil), a magnetic field is created relating to the iron core and electromagnetic fields are located on its ends. If the size of the current or its direction changes, the strength of the magnetic field changes as well, or its polarity is reversed. As soon as a current stops passing through the coil, the magnetic effect ceases.
Electric motors, electric relays and loud speakers all operate on this principle.
Artificially created magnetic fields are also used for storing data. Cassettes, diskettes and hard drives all store information magnetically. In these case, however, it is important that the information stored on them remain protected even once the electrical current is disconnected, in order that its data do not get erased. This is accomplished by using several protective layers made from special materials.
Today however, we know that there are magnetic areas of microscopic size in many substances. If they are oriented identically, they become magnetic, creating around themselves a magnetic field. If we place such an object in close proximity to another magnetic object, they either attract or repel one another, depending on whether the respective magnetic fields are identically or oppositely oriented.
Magnetic fields are not in any major way influenced by their surroundings and, contrary to sound, work in a vacuum. Furthermore, the magnetic material within them can neither be removed nor changed.
A compass using a magnetic needle was the first and, for a long time, the only practical use of magnets. The Chinese apparently discovered the magnet several thousand years ago, the Europeans only until a few hundred years ago. A compass needle is a small magnet which easily rotates and which orients itself according to the magnetic field of the earth, in a north/south direction. Besides the position of the stars, compasses were for a long time the only navigational aid used by sailors.
The magnetic field of the earth is created by the convection (flow) of molten iron in the earth's core. The geographical and magnetic poles are not exactly the same and the magnetic north pole is close to the earth's geographic south pole.
At present, mostly only electromagnets are used in technical practice because they are more effective and their strength and orientation can be easily regulated.
An electromagnet is composed of an electrical conductor wound around a core, usually made of iron. If a current passes through this winding (electrical coil), a magnetic field is created relating to the iron core and electromagnetic fields are located on its ends. If the size of the current or its direction changes, the strength of the magnetic field changes as well, or its polarity is reversed. As soon as a current stops passing through the coil, the magnetic effect ceases.
Electric motors, electric relays and loud speakers all operate on this principle.
Artificially created magnetic fields are also used for storing data. Cassettes, diskettes and hard drives all store information magnetically. In these case, however, it is important that the information stored on them remain protected even once the electrical current is disconnected, in order that its data do not get erased. This is accomplished by using several protective layers made from special materials.
# posted by Medical Information : 12:21 AM
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