Thursday, 31 May 2012

Talent Platform

http://tumbhi.com/home.html?actionFlag=showHome

This is link for the grooming talent ....just click it and search it to find where you stands.
This is started by Anurag Kashyap film director in Hollywood.

Pawan Dhankhar
Asst Prof
KITM
Kurukshetra

Dhirajlal Hirachand Ambani


by Ashutosh Sharma

Dhirajlal Hirachand Ambani ( 28 December 1932 – 6 July 2002) was an Indian industrialist who founded Reliance Industries, a petrochemicals, communications, power, and textiles conglomerate and one of the 3 privately owned Indian companies in the Fortune 500. Ambani took his company public in 1977. Dhirubhai has been among the select few to be figured in the Sunday Times list of top 50 businessmen in Asia.[1] His life has often been referred to as a true "rags to riches" story.
Dhirubhai started off as a small time worker with Arab merchants in the 1950s and moved to Mumbai in 1958 to start his own business in spices. After making modest profits, he moved into textiles and opened his mill near Ahmedabad. He founded Reliance Industries in 1966, and today, the company, with over 85,000 employees, provides almost 5% of the Central Government's total tax revenue. Ambani was credited with introducing the stock market to the average Indian investor, and thousands of investors attended the Reliance annual general meetings, which were sometimes held in a football stadium, with millions more watching on television.

In 1985 after a heart attack Dhirubhai handed over the Reliance empire to his sons Mukesh and Anil. After his death, the group was split into Reliance Industries Limited, headed by Mukesh Ambani, and Reliance Anil Dhirubhai Ambani Group (Reliance ADAG), headed by Anil Ambani

Early
Hirachand Ambani was a low wage villager. Hirachand and Jamnaben had two daughters - Trilochanaben and Jasuben - and three sons - Ramnikbhai, Dhirubhai and Natubhai. Dhirubhai was the second son.

Life in Aden (1949-1958)
Just after Dhirubhai was through his annual matriculation examination and even before the result was out, Hirachand called him home (to Chorwad). Hirachand had been unwell for quite some time and had grown extremely weak and frail.
Hirachand asked his son the very night he reached home. "Well, I'll tell you. You know I have been unwell for past several months. I cannot work any more. I know you want to study further but I can't afford that any more. I need you to earn for the family. I need your money. The family needs it. You must work now. Ramnikbhai has arranged a job for you in Aden. You go there.
Dhirubhai had really wanted to study for a bachelor's degree, but his ambition melted when he looked into the anxious eyes of his sick father. "I'll do as you say," he said, and the very next morning he left for Rajkot to get his passport. Those days Indians were exempt from obtaining a visa for entering Aden, but there were rumors around that the No Visa regime was about to end any day. So he needed to hurry up before the visa rules changed. In a few days he was in Bombay to board the ship to Aden. It was on board the ship that Dhirubhai learnt from a Gujarati newspaper that he had passed his matriculation examination in second division.
On reaching Aden, Dhirubhai joined office on the very day of his arrival. It was a clerk's job with the A. Besse & Co., named after its French founder Antonin Besse. Those days Aden was the second busiest trading and oil bunkering port in the world after London handling over 6,300 ships and 1,500 dhows a year.
And, there in Aden, A. Besse & Co. was the largest transcontinental trading firm east of Suez. It was engaged in almost every branch of trading business - cargo booking, handling, shipping, forwarding, and wholesale merchandising. Besse acted as trading agents for a large number of European, American, African and Asian companies and dealt with all sorts of goods ranging from sugar, spices, food grains and textiles to office stationery, tools, machinery and petroleum products. Dhirubhai was first sent to the commodities trading section of the firm. Later, he was transferred to the section that handled petroleum products for the oil giant Shell.
"I learnt business at Besse which was then the best trading firm this side of the Suez," he used to tell friends in later years. He was quick on the uptake. He learnt the ways of commodity trading, high seas purchase and sales, marketing and distribution, currency trading, and money management. During lunch breaks he roamed the [[souks]] and bazaars of Aden where traders from numerous different continents and countries bought and sold goods worth millions of pounds sterling, the then global currency, during the day. He met traders from all parts of Europe, Africa, India, Japan and China. Aden was the biggest trading port of the times, a trading port where goods landed from all parts of the world and were dispatched to the farthest corners of different continents. Speculation in manufactured goods and commodities was rife all over the Aden bazaars.
Dhirubhai felt tempted to speculate but had no money for that and was still raw for such trading. To learn the tricks of the trade he offered to work free for a Gujarati trading firm. There he learnt accounting, book keeping, preparing shipping papers and documents, and dealing with banks and insurance companies., skills that would come handy when he launched himself into trading about a decade later in Bombay. At the Besse office during the day he polished his skills in typing and Pitman shorthand, drafting commercial letters, and composing legal documents.
At the boarding house where he lived with another twenty-five or so young Gujarati clerks and office boys, he devoted long hours of the night mastering English grammar, essay writing, current affairs and a host of subjects that took his fancy from week to week. He was the first to snatch the English, Gujarati and Hindi daily papers and weeklies as soon as they arrived by the ship every day. The Times of India, Blitz, Janmabhoomi and Navajeevan formed his favorite reading material. He also devoured all sorts of books, magazines and journals the passengers arriving from various European and Indian ports left in the ships and at the offices of various shipping agents.
After he thought he had learnt the basics of commodities trading, Dhirubhai began speculating in high seas purchase and sales of all sorts of goods. He did not have enough money of his own for such speculative trading. So he borrowed as much as he could from friends and small Aden shopkeepers on terms nobody had ever offered them. "Profit we share and all loss will be mine" became his motto. During lunch break and after office hours he was always in the local bazaar, trading in one thing or the other.
Soon, those around him found that he had an uncanny knack for such speculative trading. He seldom lost money in any deal. "I think I had an animal instinct about such trading but there was a lot of reading and understanding of market trends behind that animal instinct of mine. I read every bit of paper I could lay my hands on about what was happening around the world, I listened carefully to every word uttered in the market, picked every bit of gossip in the shipping circles and pondered long through the night in the bed about the pros and cons of every deal I wanted to make."
Meantime, the Shell oil refinery and the first oil harbor came up in Aden in 1954, the year Dhirubhai returned home to Gujarat to marry Kokilaben. As expected, A. Besse & Co. became the agents for distribution of Shell refinery products. Dhirubhai had done well at the office during his first five years. Now he was sent on promotion to the oil filling station at the newly built harbour.
He liked the new job, though it was a lot more demanding than the desk job in the commodities section. Here he had to service the ships bunkering for diesel and lubricants. He enjoyed visiting the ships, making friends with sailors and the engine staff I heard from them first hand accounts of their voyages in different parts of the world of which he had until then read about only in books and magazines. And, here it was that he first began dreaming of one day building a refinery of his own.
"It was a crazy idea for a petrol pump attendant to want to build a refinery of his own, but that is the sort of crazy ideas I have been playing with all my life," Dhirubhai recalled at the time Reliance's 25 million ton oil refinery, the largest grassroots refinery in the world, went on stream in Jamnagar in 1999. "I have been able to build this refinery because I decided long years ago not to settle for anything else," he said, "I had heard a Yemeni proverb in Aden "la budd min Sana'a wa lau taal al-safr" (You must visit Sana'a, however long the journey takes). I never forgot that saying."
By the late 1950s it became clear that the British rule in Aden would not last long in the face of growing Yemeni movement for independence supported by Gamal Abdel Nasser's revolutionary government from across the Suez. The large Indian community of Hindu and Parsee Gujaratis began preparing to move out of Aden. Some began returning home to India, while some chose to settle in Britain. Aden Indians those days were allowed to settle in Britain.
Where to go on leaving Aden was debated among the colony's settlers heatedly everyday. Some of Dhirubhai's friends told him that he should migrate to London where, considering his talents, acumen and guts, he could find better opportunities of growth. At the port and on ships at Aden he often heard glowing accounts of post-war Britain and the promises of a life of much greater ease there than one could ever hope to find in India.
Dhirubhai weighed his options.. By now he had saved some money and was thinking of setting up some business of his own. Although Dhirubhai's father had died in 1952, he had in the meantime been blessed with his first son, Mukesh D. Ambani, in April, 1957. Kokilaben and Mukesh were back home in India.The choice of opening a shop somewhere in London was tempting but he felt India was calling him home.
Those were exciting years in India. The country was in the midst of implementing the Second Five Year Plan which promised to build big industries, raise new big dams across many rivers, lay new roads through the length and breadth of the country, boost agricultural production to new record levels and set up a huge network of food grains procurement centers.
Though by the end of 1958, the newspapers coming from India were painting a rather gloomy picture of the country's finances and foreign exchange reserves, there was also a new vigor and a new fervor in their reports of a new   100 billion Five Year Plan then under preparation. The Plan promised to open massive new opportunities for growth for the country's youth. Jawaharlal Nehru was daily exhorting the young to cast away their old ways and help build a new India. His words were stirring and roused the passions of every young Indian, especially of those living far away from the country.
Dhirubhai was now 26 years (1957), full of youthful vigor and vitality, and filled with high hopes for himself and for the new India of Nehru's dreams. He just could not miss the excitement of being in India in such tumultuous times. He decided to return home, instead of going to London to live a life of ease there.
Majin Commercial Corporation
Ten years later, Dhirubhai Ambani returned to India and started "Majin" in partnership with Champaklal Damani, his second cousin, who used to be with him in Aden, Yemen. Majin was to importpolyester yarn and export spices to Yemen. The first office of the Reliance Commercial Corporation was set up at the Narsinatha Street in Masjid Bunder. It was a 350 sq ft (33 m²) room with a telephone, one table and three chairs. Initially, they had two assistants to help them with their business. During this period, Dhirubhai and his family used to stay in a one-bedroom apartment at the Jai Hind Estate in Bhuleshwar, Mumbai. In 1965, Champaklal Damani and Dhirubhai Ambani ended their partnership and Dhirubhai started on his own. It is believed that both had different temperaments and a different take on how to conduct business. While Damani was a cautious trader and did not believe in building yarn inventories, Dhirubhai was a known risk-taker and believed in building inventories, anticipating a price rise, and making profits. In 1968, he moved to an upmarket apartment at Altamont Road in South Mumbai. Ambani's net worth was estimated at about   1 million by late 1970s.
Reliance Textiles
Sensing a good opportunity in the textile business, Dhirubhai Ambani, along with Amit Mehra, a Delhi-based chartered accountant and company secretary residing in Ashok Vihar, Delhi, started the first textile mill at Naroda, in Ahmedabad in the year 1966. Textiles were manufactured using polyester fiber yarn.[4] Dhirubhai started the brand "Vimal", which was named after his elder brother Ramaniklal Ambani's son, Vimal Ambani. Extensive marketing of the brand "Vimal" in the interiors of India made it a household name. Franchise retail outlets were started and they used to sell "only Vimal" brand of textiles. In the year 1975, a Technical team from the World Bank visited the Reliance Textiles' Manufacturing unit. This unit has the rare distinction of being certified as"excellent even by developed country standards" during that period. Amit Mehra had played a pivotal role in helping and supporting Dhirubhai in this success
Initial public offering
Dhirubhai Ambani is awarded with starting the equity cult in India. More than 58,000 investors from various parts of India subscribed to Reliance's IPO (Initial public offering) in 1977. Dhirubhai was able to convince large numbers of small investors from rural Gujarat that being shareholders of his company would be profitable.
Reliance Industries was the first private sector company whose annual general meetings were held in stadiums. In 1986, the annual general meeting of Reliance Industries had number of first-time retail investors investing in Reliance. Ambani's net worth was estimated at about   1 billion by early 1980s.
Dhirubhai's control over stock exchange
In 1982, Reliance Industries came up against a rights issue regarding partly convertible debentures.[6] It was rumored that the company was making all efforts to ensure that their stock prices did not slide an inch. Sensing an opportunity, The Bear Cartel, a group of stock brokers from Calcutta, started to short sell the shares of Reliance. To counter this, a group of stock brokers till recently referred to as "Friends of Reliance" started to buy the short sold shares of Reliance Industries on the Bombay Stock Exchange.
The Bear Cartel was acting on the belief that the Bulls would be short of cash to complete the transactions and would be ready for settlement under the "Badla" trading system operative in theBombay Stock Exchange. The bulls kept on buying and a price of   152 per share was maintained till the day of settlement. On the day of settlement, the Bear Cartel was taken aback when the Bulls demanded a physical delivery of shares. To complete the transaction, the much needed cash was provided to the stock brokers who had bought shares of Reliance, by none other than Dhirubhai Ambani. In the case of non-settlement, the Bulls demanded an "Unbadla" (a penalty sum) of   35 per share. With this, the demand increased and the shares of Reliance shot above  180 in minutes. The settlement caused an enormous uproar in the market.
To find a solution to this situation, the Bombay Stock Exchange was closed for three business days. Authorities from the Bombay Stock Exchange (BSE) intervened in the matter and brought down the "Unbadla" rate to   2 with a stipulation that the Bear Cartel had to deliver the shares within the next few days. The Bear Cartel bought shares of Reliance from the market at higher price levels and it was also learnt that Dhirubhai Ambani himself supplied those shares to the Bear Cartel and earned a healthy profit out of The Bear Cartel's adventure.
After this incident, many questions were raised by his detractors and the press. Not many people were able to understand as to how a yarn trader till a few years ago was able to get in such a huge amount of cash flow during a crisis period. The answer to this was provided by the then finance minister, Pranab Mukherjee in the Parliament. He informed the house that a Non-Resident Indian had invested up to   220 million in Reliance during 1982-83. These investments were routed through many companies like Crocodile, Lota and Fiasco. These companies were primarily registered in Isle of Man. The interesting factor was that all the promoters or owners of these companies had a common surname Shah. An investigation by the Reserve Bank of India in the incident did not find any unethical or illegal acts or transactions committed by Reliance or its promoters
Diversification
Ambani began the process of backward integration, setting up a plant to manufacture polyester filament yarn. He subsequently diversified into chemicals, petrochemicals, plastics, power. The company as a whole was described by the BBC as "a business empire with an estimated annual turnover of $12 billion, and an 85,000-strong workforce". The final phase of Reliance’s diversification occurred in the 1990s when the company turned aggressively towards petrochemicals and telecommunications.
Criticism
Despite his almost Midas Touch, Ambani has been known to have flexible values and an unethical streak running through him. his biographer himself has cited some instances of his unethical behavior when he was just an ordinary employee at a petrol pump in Dubai. He has been accused of having manipulated government policies to suit his own needs, and has been known to be a king-maker in government elections. Although most media sources tend to speak out about business-politics nexus, the Ambani house has always enjoyed more protection and shelter from the media storms that sweep across the country.
Tussle with Nusli Wadia
Nusli Wadia of Bombay Dyeing was, at one point in time, the biggest competitor of Dhirubhai and Reliance Industries. Both Nusli Wadia and Dhirubhai were known for their influence in the political circles and their ability to get the most difficult licenses approved during the times of pre-liberalized economy. During the Janata Party rule between 1977–1979, Nusli Wadia obtained the permission to build a 60,000 tons per annum Dimethyl terephthalate (DMT) plant. Before the letter of intent was converted into a licence, many hurdles came in the way. Finally, in 1981, Nusli Wadia was granted the license for the plant. This incident acted as a catalyst between the two parties and the competition took an ugly turn.
The Indian Express Articles
At one point in time, Ramnath Goenka was a friend of Dhirubhai Ambani. Ramnath Goenka was also considered to be close to Nusli Wadia. On many occasions, Ramnath Goenka tried to intervene between the two warring factions and bring an end to the enmity. Goenka and Ambani became rivals mainly because Ambani's corrupt business practices and his illegal actions that lead to Goenka not getting a fair share in the company. Later on, Ramnath Goenka chose to support Nusli Wadia. At one point of time, Ramnath Goenka is believed to have said "Nusli is an Englishman. He cannot handle Ambani. I am a bania. I know how to finish him"..
As days passed by, The Indian Express, a broadsheet daily published by him, carried a series of articles against Reliance Industries and Dhirubhai in which they claimed that Dhirubhai was using unfair trade practices to maximise the profits. Ramnath Goenka did not use his staff at the Indian Express to investigate the case but assigned his close confidante, advisor and chartered accountant S. Gurumurthy for this task. Apart from S. Gurumurthy, another journalist Maneck Davar who was not on the rolls of Indian Express started contributing stories. Jamnadas Moorjani, a businessman opposed to the Ambanis was also a part of this campaign. Both Ambani and Goenka were equally criticized and admired by sections of the society. People criticized Goenka that he was using a national newspaper for the cause of a personal enmity. Critics believed that there were many other businessman in the country who were using more unfair and unethical practices but Goenka chose to target only Ambani and not the others. Critics also admired Goenka for his ability to run these articles without any help from his regular staff. Dhirubhai Ambani was also getting more recognition and admiration, in the meantime. A section of the public started to appreciate Dhirubhai's business sense and his ability to tame the system according to his wishes. The end to this tussle came only after Dhirubhai Ambani suffered a stroke. While Dhirubhai Ambani was recovering in San Diego, his sons Mukesh Ambani and Anil Ambani managed the affairs. The Indian Express had turned the guns against Reliance and was directly blaming the government for not doing enough to penalize Reliance Industries. The battle between Wadia - Goenka and the Ambanis took a new direction and became a national crisis. Gurumurthy and another journalist, Mulgaokar consorted with President Giani Zail Singh and ghost-wrote a hostile letter to the Prime Minister on his behalf. The Indian Express published a draft of the President’s letter as a scoop, not realizing that Zail Singh had made changes to the letter before sending it to Rajiv Gandhi. Ambani had won the battle at this point. Now, while the tussle was directly between the Prime Minister Rajiv Gandhi and Ramnath Goenka, Ambani made a quiet exit. The government then raided the Express guest house in Delhi’s Sunder Nagar and found the original draft with corrections in Mulgaokar’s handwriting. By 1988-89, Rajiv’s government retaliated with a series of prosecutions against the Indian Express. Even then, Goenka retained his iconic stature because, to many people, he seemed to be replaying his heroic defiance during the Emergency regime.
Dhirubhai and V. P. Singh
It was widely known that Dhirubhai didn't enjoy a cordial relation with Vishwanath Pratap Singh, who succeeded Rajiv Gandhi as the Prime Minister of India. In May 1985, he suddenly removed the import of Purified terephthalic acid from the Open General License category. As a raw material this was very important to manufacture polyester filament yarn. This made it very difficult for Reliance to carry on operations. Reliance was able to secure, from various financial institutions, letters of credit that would allow it to import almost one full year’s requirement of PTA on the eve of the issuance of the government notification, changing the category under which PTA could be imported. In 1990, the government-owned financial institutions like the Life Insurance Corporation of India and the General Insurance Corporation of India stonewalled attempts by the Reliance group to acquire managerial control over Larsen & Toubro. Sensing defeat, the Ambanis resigned from the board of the company. Dhirubhai, who had become L&T's chairman in April 1989, had to quit his post to make way for D. N. Ghosh, former chairman of the State Bank of India.
Death
Dhirubhai Ambani was admitted to the Breach Candy Hospital in Mumbai on June 24, 2002 after he suffered a major stroke. This was his second stroke. The first one had occurred in February, 1986 and had kept his right hand paralyzed. He was, latterly, in a state of coma for more than a week. A number of doctors were used. He died on July 6, 2002, at around 23:50 UTC+05:30.
His funeral procession was not only attended by business people, politicians and celebrities but also by thousands of ordinary people. His elder son,Mukesh Ambani, performed the last rites as per Hindu traditions. He was cremated at the Chandanwadi Crematorium in Mumbai at around 16:30 UTC+05:30 on July 7, 2002.
He is survived by Kokilaben Ambani, his wife, two sons, Mukesh Ambani and Anil Ambani, and two daughters, Nina Kothari and Deepti Salgaonkar. Dhirubhai Ambani started his long journey in Mumbai from the Mulji-Jetha Textile Market, where he started as a small-trader. As a mark of respect to this great businessman, The Mumbai Textile Merchants' decided to keep the market closed on July 8, 2002. At the time of Dhirubhai's death, Reliance Group had a gross turnover of   750 billion (US$15 billion). In 1976-77, the Reliance Group had an annual turnover of   700 million (Note that Dhirubhai had started the business with just   150 000 (US$3500).
Reliance after Dhirubhai
In November 2004, Mukesh Ambani in an interview, admitted to having differences with his brother Anil over 'ownership issues.' He also said that the differences "are in the private domain." He was of the opinion that this will not have any bearing on the functioning of the company saying Reliance is one of the strongest professionally-managed companies. Considering the importance of Reliance Industries to the Indian economy, this issue got extensive coverage in the media.
Kundapur Vaman Kamath, the Managing Director of ICICI Bank was seen in media, a close friend of the Ambani family who helped to settle the issue. The brothers had entrusted their mother, Kokilaben Ambani, to resolve the issue. On June 18, 2005, Kokilaben Ambani announced the settlement through a press release.
With the blessings of Srinathji, I have today amicably resolved the issues between my two sons, Mukesh and Anil, keeping in mind the proud legacy of my husband, Dhirubhai Ambani.

I am confident that both Mukesh and Anil, will resolutely uphold the values of their father and work towards protecting and enhancing value for over three million shareholders of the Reliance Group, which has been the foundational principle on which my husband built India's largest private sector enterprise.

Mukesh will have the responsibility for Reliance Industries and IPCL while Anil will have responsibility for Reliance Infocomm, Reliance Energy and Reliance Capital.

My husband's foresight and vision and the values he stood for combined with my blessings will guide them to scale new heights.
— Kokilaben Ambani
The Reliance empire was split between the Ambani brothers, Mukesh Ambani getting RIL and IPCL & his younger sibling Anil Ambani heading Reliance Capital, Reliance Energy and Reliance Infocomm. The entity headed by Mukesh Ambani is referred to as the Reliance Industries Limited whereas Anil's Group has been renamed Reliance Anil Dhirubhai Ambani Group (Reliance ADA Group).
Reliance Institute of Life Sciences, a Dhirubhai Ambani Foundation Initiative, was established to promote higher education in various fields of life sciences and related technologies.

THEORY OF MARKETING


By Anshul Arora
INTRODUCTION
Marketing is, conventionally, an empirical discipline based on a number of minor concepts and reasoning. There are several definitions but no actual, fundamental theory. I propose a definition, in essential confirming to the conventional view that would be generally acceptable:
”Marketing is a discipline uniting activities aimed at enhancing the potential for sales of goods and services.”
The lack of fundamental theoretical definitions has been one complicating factor in the understanding and, consequently, relations between different functions in companies, especially product development, marketing and sales.
Besides marketing ”as such”, according to accepted definitions, many activities
are marketing driven, like product development and industrial design/styling.
The understanding of the activities in a market, money and products incessantly changing hands, can be traced back to the main principles, originally
suggested by Adam Smith in his work “Wealth of Nations” in 1776.
The following attempt to form a General Theory of Marketing relates existing
concepts and reasoning by means of the common denominator of value. The
theory takes off from the undisputed objective of all commercial activity – the
transaction of selling and buying.
Value is the subjective judgement by a buyer, according to universal definitions, and the reason for realizing a transaction. As the perceived value is a
function of his/her needs, economy, and general motivations, we have to consider the effects of psychology as well as biology. Here I confirm to the theory
of evolutionary psychology and, consequently, regard this theoretical attempt as a
contribution to evolutionary marketing.
In organisations, there are several functions involved in the creation of buyerappreciated value. All resources and activities having any influence on this
should be seen integrated in the commercial efforts of the organisation.
It is the author’s hope, that this theory will increase the mutual understanding
between key functions in companies.
Research and practical experiences as a consultant since the first edition of my
theory of 1999 have given me insight and inspiration for its continuous development.
Crucial Definitions, Evolutionary Marketing:
To start with, some definitions have to be stated:
Marketing: An analysis of a number of current definitions results in this lowest
common denominator: “Marketing is a discipline uniting activities aimed at
enhancing the potential for sales of goods and services.” This implies that
communication is a major component of the discipline, which in its turn implies
that marketing applies to branded goods and services only.
Value: The universal definition of (economic) Value as of Webster’s Dictionary
is applied: ”The amount of another commodity for which a given thing can be
exchanged. [...] A fair return in goods, services or money for something exchanged.[...]”. Also monetary cash or monetary credit is such a commodity.
Older definitions (e.g. Marx) have to be discarded. Consequently the creation of
value is a process in the mind of the observer – potential buyer.
Evolutionary psychology: The application of the principles and knowledge of
evolutionary biology to psychological theory and research.
Product. In this context I consistently define products as “goods and/or services” as there is virtually no difference between them in their commercial sense
and they frequently appear in synergic combinations.
The components of the theory
1. The Transaction forms the hub
2. Operative Value and Evolutionary Psychology
3. Value/Price relation triggers transaction
4. Evolutionary Marketing is excited by Metaproducts
5. Full value exists in a specific Audience only
6. Marketing for Brands only
7. The unique fourth-dimension Metaproduct
8. The Price/Value Hypothesis
9. The dynamic two-sided Transaction Model
10.The one-picture SummaryGENERAL THEORY OF MARKETING
1.
The transaction forms the hub
The transaction of selling and buying is the objective of all commercial activity,
the hub for all these activities, and the moment when the wealth-building profit
is produced, of crucial importance to both the seller and society at large. The
transaction is effected in the moment, when the buyer, in his self-interest, realizes that the value of the offer (to him) is higher than the price asked.
2.
Operative Value and Evolutionary Psychology
The value of any utility is only hypothetical or potential in any situation, except
in the actual moment of the decision to buy, exchange or sell, when the exchange rate between money and the object is set in the transaction. This applies
to a free market, where buyer and seller both act from their self-interest to gain
from the transaction. The operative value thus is, in every occasion, a consequence of the immediate situation of the valuing buyer.
Consequently, a behavioural model is needed to understand the value perceived by the buyers. The Paradigm of Survival is based on the theory of evolutionary psychology, and is, consequently, a keystone model of this marketing
theory. It has proved itself in practice during more than 20 years.
The Paradigm of Survival (Linn, C. E. 1990)
The steps of the Paradigm of Survival:
• Physiological needs: conditions necessary for the bodily survival – eating, drinking, sleeping, keeping warm, etc.
• Individual safety and security: the need to protect ourselves to survive,
from predators, illnesses, competitors – and, in modern society, financial
insecurity. GENERAL THEORY OF MARKETING
• Pleasure: the ability to co-operate with other individuals in self-interest.
The sense of freedom or comfort, tastes and aromas.
• Group’s welfare: contributions to the efficiency of the group as a support for the well-being and safety of the individuals. 
• Social identity: social status meaning priority in situations of scarcity.
The ability to convey an impression of being unique.
• Mating: success in mate acquisition and in reproduction – choice of
partner and survival of offspring.
3.
Value / Price relation triggers transaction
Price and value are, in principle, the same phenomenon regarded from the opposite positions. The price of commodities depends on supply and demand,
when the supplier’s price follows the value decided by the market. In the case
of branded products, price is the level where the seller is willing to exchange
the product for the money of a sufficient number of buyers. The buyer’s personal and subjective opinion on the value of the product in relation to its price
is expressed by his/her willingness to buy. The transaction will be performed
at the moment when both parties realise that they gain from it. In marketing,
price is independently set by the supplier, value is decided by the buyer.
4.
Evolutionary Marketing is excited by Metaproducts
The value of a (hypothetic) generic product could be assumed based on substance and utility values. The outcome of its sales can be described by a pricedemand diagram. For the generic product, or commodity, the price elasticity (E
= ∆Q/∆P) is negative. We assume here that it follows a curve according to R =
Q x P, a ”classic” price-demand curve.
Without affecting the substance or utility values, marketing driven values can
be added. (With the help of marketing communication, design/”styling”,
branding, etc.) By this, the product is moved to a higher value potential; it is
excited to a new level of value. The value of an intangible phase of the product,
a metaproduct, has been added, but only according to the buyers’ perception.
This added metavalue of the product is limited to a finite population, defined by
its discriminating knowledge of product and brand – its audience. We are now
studying a functionally branded product.
Any attempt to describe the price-demand relations of this product will be affected by the fact that its metavalue is limited to its audience. This is the main
reason why the economical behaviour of branded products only can be discussed in terms of empirically founded degrees of price elasticity.
Nothing indicates, consequently, that sales of the excited product would follow
a new ”classic” price-demand curve when its price is changed. Even positive
price elasticity is conceivable for a branded product.
In the illustration, the product in the position A has gained a pure volume premium whereas B gained pure price premium over the original generic product. GENERAL THEORY OF MARKETING
The excited product differs from a hypothetic, comparable generic product by the value
of its metaproduct. Its higher competitive power is demonstrated by higher transaction
prices and/or quantities sold.
5.
Full value exists in a specific Audience only
In consequence with this reasoning it is obvious that the full value of the functionally branded product only exists within a population characterized by a
discriminating knowledge of the product/brand enabling an evaluation against
competing alternatives. This ”Audience of Marketing” is recruited from the gross
market by means of marketing activities (e.g. communication). In this context it
will be called ”The Evaluating Audience”. We assume for the sake of this discussion that the population has the shape of a normal distribution. Consequently
”The Evaluating Audience” would be a central model in a science of marketing and
branding.
6.
Marketing deals with branded products only
Due to its dependence of communication, marketing demands a discriminating
name or trademark to identify the products (i.e. goods and/or services!) it deals
with. A product excited to include an amount of metavalue may thus be identified as functionally branded. (This does not mean, however, that all of its metavalue has to be related to its brand!)
Sales, however, is not involved in creating a metavalue but exploiting it, being
directed towards single buyers. Consequently it should be regarded as a discipline separate from marketing.
7.
The fourth-dimension Metaproduct is
unique to every individual buyer
Practically no buyer is capable of valuing a just the tangible, branded product.
The buyer will always be influenced in his judgements by his personal memories, experiences, knowledge as well as opinion and taste. And when he is considering buying, his subjective wishes and expectations will also affect his appraisal. These personal and social grounds for valuing the offer thus are thus
considerations transcending time, based on past time as well as an imagined
future. This additional aspect or phase of the product corresponding to this intangible
value is called the Metaproduct. As Time is generally accepted as the fourth dimension, the metaproduct can be considered to be the fourth-dimensional part
of any branded product.GENERAL THEORY OF MARKETING
8.
The Price-Value Hypothesis demonstrates the Dynamics.
The abscissa in the diagram of The Evaluating Audience represents value as
well as price (See 3.!) both being measured in currency. The valuing of the buyers is shown as a distribution, whereas the price asked is momentarily set. With
the two actors in the same diagram, the distribution of buyers will be cut by the
seller’s price line: the Price-Value Hypothesis, PVH. The part of the population to
the right of the price line represents actual buyers in this very moment (See 3.!),
while the one to the left is merely potential buyers (See 7.!). The population to
the left of the price line would have a number of reasons for not finding the
product being worth its price; it is not available, they just bought one, it is functionally non-satisfactory, it is just not attractive, they don’t have the economic
resources or priorities, etc. The PVH can be used for a systematic, dynamic analysis
of the consequences of changes in price, evaluation and awareness.GENERAL THEORY OF MARKETING
CARL ERIC LINN
9.
The dynamic, equational Transaction Model
From the Price-Value Hypothesis follows that the object of the transaction – the
product – has to be explained with two descriptions according to the principles
for an equation. One showing the properties and features the seller/supplier
offers as a foundation for the price he asks for the Supplier’s Product. One showing what benefits they offer, resulting in the buyer’s valuation: the Buyers’ Product. This dynamic model is the commercial Transaction Model. The Value factor
in the Buyer’s Product also has to observe all possible costs added in the process of acquisition. The condition for the transaction being performed is, in
principle, that the buyer values the product to equal or more than the price
asked:
PRICE ASKED ≤ PERCEIVED VALUE
From the buyer’s point of view, the decision of finalizing the transaction depends on a
value perceived as high or higher than the price asked.
10.
Summary:
The one-picture Summary
This theory makes it possible to summarise the essentials of marketing in one
picture. The product is developed in an interaction between conscious and unconscious, explicit and implicit demands, wishes, and ideas of supplier and
buyers. When the product is presented to the audience, it responds by its
evaluation of the offer, resulting in the division of the audience in actual buyers
and merely non-buyers. GENERAL THEORY OF MARKETING
Social identity has for a long time been discussed as a phenomenon. Thorstein
Veblen (also influenced by Darwin) discussed “conspicuous consumption” already in 1899. Since then, a vast amount of research has been done, proving
Darwin’s theories, and making it obvious that the need for social identity is
based on instincts. Its effects may be strange, sometimes grotesque, but the
driving force is nevertheless an inherited, evolutionary instinct.
A recent book by Yale University Professor Paul Bloom, How Pleasure Works,
offers a detailed explanation of the Pleasure factor in all aspects, pointing out
its importance in our everyday life, giving a strong motivation for its position
in the Paradigm.
Now it should be obvious, that the understanding of human behaviour plays a
major role in marketing. This is why a behavioural model comes natural as a
keystone of the theory. When we accept these prime movers of the human psyche as conditions for modern marketing theory, the term Evolutionary Marketing
comes readily to mind. Which serves to point out the difference to earlier concepts and theories, less well adapted to the realities of human nature and behaviour.
Recent research tells us that we always want to reassure ourselves of who we
are, even when we are alone, which makes the emphasis on our behaviour as
buyers and consumers even stronger.
Professional behaviour is no exception. The two most influential reasons for
choosing a certain brand or product, apart from its objectively assessable functional utility, are the buyer's need for security and safety, and also his/her aspiration for making a career in business. Which, of course, has a lot to do with
social identity.
Marketing in itself cannot, contrary to popular belief create any basic needs. It
may, though, be instrumental in suggesting ways of fulfilment of the strivings
which are already there, as shown in the Paradigm. Moral and ethical aspects
can naturally not be included in the need structure of the Paradigm as such.
In summary, Marketing demands a better theoretical basis than we have had to
content ourselves with since the dawn of the discipline. Certain developments
are needed to include an approach better adapted to human nature and behaviour.
To arrive at this, the concept has to fulfil certain demands. The transaction is
the absolute centre, when seller and buyer agree on the value of its object, and
where the relation between price and value is crucial. Their motivations have to
be analyzed according to current science and theory. Evolutionary Marketing in
the shape of the Meta Management concept offers the viable tools needed.GENERAL THEORY OF MARKETING
Implications: The Forming of a Set of Tools
Linn’s General Theory of Marketing forms a firm foundation for a set of tools
for strategical and tactical analyses and development according to the ideas of
evolutionary marketing.
1.           
THE DYNAMICS OF THE EVALUATING AUDIENCE
One set of models is derived from the ”Evaluating Audience” which graphically demonstrates and defines the eleven cases (see fig.) of the consequences of
changed value, price, size of population, and supply in the interaction between
the supplier and his/her audience behaviour (Linn, C. E., Brand Dynamics, Atlanta 1998).
This series of models is used as basis for systematic analyses of the consequences of changes in supplier strategies and tactics as well as buyer behaviour
and values.
The interrelation between the two actors – between the buyers' awareness and
valuation of the products offered, and the supplier's marketing efforts – is
demonstrated. The prerequisites of this crucial concept are the application of
the two-sided product description and the notion of the metaproduct.
The Evaluating Audience
The prerequisites
In its present form, the Evaluating Audience should be seen as a thought provoking tool for education, analyses and discussions. The Evaluating Audience
also offers, however, a scope for further research, with the apparent possibility
for the analyses of specific price/demand curves for branded products. GENERAL THEORY OF MARKETING
The correct understanding of the Evaluating Audience model demands that the
following conditions are observed:
• The make-up of the Group – represented by the area of the distribution –
is limited to individuals aware of, or well aware of, the product/brand,
thus carrying a perceived value of the product as a basis for their decision on buying or not.
• "Buyers" are individuals actually buying the product – not just uncommitted telling that they judge the product to be worth the price asked.
The decision to buy is the proof, that an individual estimates the product
to offer value for (his) money at his particular state of need. The share of
buyers relative to non-buyers may thus, statistically, be fairly stable from
day to day for mass marketed products, while the actual buyers are incessantly changing their position between buying and non-buying.
The eleven modes of The Evaluating Audience
This comprehensive list of eleven Evaluating Audience modes assumes in the
first place that the interest of the supplier is to increase his sales volume.
1. Expansion
2. Erosion
3. Price Increase
4. Price Reduction
5. Revaluation
6. Devaluation
7. Regression
8. Upgrading
9. Overpricing
10.Compensation
11.Limited SupplyGENERAL THEORY OF MARKETING
1. EXPANSION. The metavalue of a branded product is, by definition, nonexistent outside of its Evaluating Audience. To increase the scope for
sales of the differentiated, branded product, awareness of the product/brand may have to be increased in the market through expansion of
the target group. Marketing communication may be used to accomplish
this task. New members of the Evaluating Audience are supposed to accept the valuation of the product already existing in the Group.
2. EROSION. A decrease in awareness may be caused by an insufficient intensity of market communication, but also by competitors conquering a
"mindshare" from our product.GENERAL THEORY OF MARKETING
3. PRICE INCREASE. At a perfectly stable metavalue a price increase reduces the number of buyers. Any deviation from this causal connection
has to be referred to in terms of the change of metavalue demonstrated
under Upgrading or Overpricing, respectively.
4. PRICE REDUCTION. At a perfectly stable metavalue a price reduction
will result in an increase in sales. This is, in practice, generally restricted
to temporary activities. The possible consequences of a permanent price
reduction are dealt with under Regression. GENERAL THEORY OF MARKETING
5. REVALUATION. Vitalization means an increase in metavalue (buyer
perceived value) at an unchanged price level. Whether this is performed
with a virtually unchanged total product is arguable. This is, though, the
illustration of a successful marketing communication activity targeted at
the enhancement of the product/brand.
6. DEVALUATION. Buyers are often lost due to a depreciation of the product's Metavalue (i.e., a reduction of the level of the buyers' valuation of
the Product). This could be due to many factors (e.g., increased competition, an aging product, reduced quality of physical product, reduced
quality of customer service, or ineffective or destructive marketing
communication). GENERAL THEORY OF MARKETING
7. REGRESSION. Regression is often the result of excessive price competition. Sales may be constant, or even increase, but the net revenue is negative. Regression is mostly seen as being forced upon by competition, but
often enough it is induced by the sales organization within, or associated
with, the company itself.
8. UPGRADING. Upgrading is a more frequent phenomenon than commonly realized. Every product undergoing a price increase, but still
managing to maintain sales levels, is in fact going through an Upgrading
operation. An obvious Upgrading is characterized by a noticeable price
increase connected with targeted marketing activities. The obvious risk
of Upgrading is Overpricing.GENERAL THEORY OF MARKETING
9. OVERPRICING. The potentially fatal consequences of Overpricing will
be clearly understood by this diagram. The added losses of customers
through increased pricing and reduced metavalue is more than most
products ever could. The impact on the product's metavalue may be disastrous, as Overpricing makes every minor flaw of quality very noticeable.
10. COMPENSATION. The opposite of Overpricing. A price reduction alone
will only in exceptional cases save a product from the disaster of Overpricing. Heavy marketing communication will be needed, but mostly,
only a product re-formulation or re-specification will do the work. GENERAL THEORY OF MARKETING
11. LIMITED SUPPLY. All other cases of the Evaluating Audience demonstrate the consequences in situations of more or less abundant supply. In
this case we, however, imagine that the limited supply of products will
be sold to the individuals that want them the most. In practice this happens when potential buyers metaphorically or actually line up for buying. The choice of the supplier is between keeping the buyers waiting or
raising the price. Limited Supply could thus be seen as the sign of too
low a price. Raising the price will, however, always invoke the risk of
Overpricing, as the metavalue of the product partly has been based on
the added cost of waiting for it. GENERAL THEORY OF MARKETING
THE SUMMARY OF TRANSITIONS
Price increase Sale discount Revaluation Regression Upgrading Overpricing
Devaluation Price change Readjustment 0 0 Change of Meta Value
This diagram shows the complete scope of modes of transition within the Evaluating
Audience for those eight modes of abundant supply, which apply to a constant size of
the audience. GENERAL THEORY OF MARKETING
2.
THE TRANSACTION MODEL
A business can be profitable only if it regularly can sell its products for a price
higher than what it costs to manufacture or purchase them. One objective of
business, thus, is to cost-effectively evoke in the buyer an evaluation, which
will yield the desired profit margin. Imagine the obscene contrast between a
4000$ luxury watch in comparison to an equally accurate time-keeping device
obtainable at 50$, when you just see them as such. And then realise that the
buyers of the two may be just as satisfied with their acquisitions.
It is obvious that the supplier creates his commercial offer by a number of actions to be able to ask the price he wants. The buyer, on his side, values what
benefits he gets from paying this price for this product.
The equilibrium can be illustrated by balancing the two product descriptions of
the object of trade with each other: i.e., both the supplier's and the buyer's
product. Here, the product is discussed at depth as the object of trade, whereas
the exchange of money is seen as a prerequisite.
The supplier's complete offer, and the price asked for this total product, has to
be balanced against the buyers' evaluation of this offer in view of their (anticipated) total gain from the deal.
The dynamic model of the total transaction
The set-up of this pivotal model, the Transaction Model, has in its details been
founded on theories, notions, structures and reasoning known and accepted in
marketing and product development, as well as in the area of behavioural research (the ”Paradigm”, App 1) i.e. evolutional psychology. Its closest equivalent
in traditional marketing is the 4P model and its successors.
The equational Transaction Model
The holistic character of this model implies that everything that the Supplier calls
on for support of the price he/she is asking for his/her product is included in
the box for the Supplier’s Product. The same applies to the Buyer’s product;
everything that affects the value he/she appreciates as relevant to the product GENERAL THEORY OF MARKETING
One readily realizes that the buyer's evaluation of the object depends on far
more than the rational utility derived from it. Availability, Pleasure, Supplier
Relation, and Social Identity take on varying degrees of importance depending
on the individual buyer, his situation at the moment and the kind of product.
From the supplier's point of view, the potential for achieving a positive buying
decision will be affected by the quality of execution of the Function, Design,
Distribution, Communications Concept and Brand Image of the product. All
the supplier's activities intended to establish the product's value in the eyes of
the buyer.
The buyer evaluates the product in view of the benefit desired: regardless of
whether it is a question of its rational Utility or Availability, or whether it is a
source of meta values that we find in Pleasure, Supplier Relation, or Social
Identity.
An interactive model
The Transaction Model demonstrates the interactive relation between the supplier's offer and the buyer's perceived product. In the model we structure the
means available for the supplier to induce physical as well as meta values –
which, after all, are realised in the world of the buyers' perception.
The objective of the Supplier is to conceive a ”total” product that is perceived as
having a value higher than the price asked by a sufficient number of potential
buyers.
It now becomes apparent that "product" serves as a mere headline of what we
mean with the expression. The holistic product, which we deal with here, contains everything we associate with the product (either as suppliers or buyers).
But what does, on the contrary, the everyday expression ”product as such”
mean, actually? The answer is that the ”product as such” only exists in theory,
because we never can understand any object without the help of any prerecognition. A chair ”as such” is just an inconceivable accumulation of matter
without our acquired pre-recognition of what a chair is.
For the reason of logic and consistency, we have to choose between the holistic
product and the ”product as such”: a non-comprehensible net product or the
universally applicable, perceived gross product, metaproduct and all.
A realistic model
The problem put like this makes much earlier reasoning obsolete. Such is the
case with the universally known, "marketing mix" 4P model (Product, Place,
Promotion, Price) by McCarthy, widely used in textbooks and education. What
“product” is it referring to – as seen by whom? And, what if you change Place,
Promotion or Price – will this “product” still be perceived as the same by potential buyers evaluating it?
The conclusion is that if we want reasonably realistic models for the development and marketing of branded products in competitive markets, oversimplified categories like the 4P-model will not be sufficient. Neither does the complexity of models like the ”house of quality” makes analyses easier to overview. GENERAL THEORY OF MARKETING
The equational nature of the Transaction Model offers not only a realistic picture of the product, but also an easy understanding of the consequences of
changes in the supplier’s offer and the buyers’ general and specific attitudes
and values.
A hypothetical case   
An axe can be used as a hypothetical example, starting with the Supplier's Product. The Function of the axe is chopping wood and by having
it accomplished by a product with a lifetime guarantee on both the cutting edge and the handle. Like all other products, the design of the axe is
not imposed on it at random: some designer made his subjective interpretation of the experience of professional lumberjacks; it is hand-forged
with a handle made of hickory. This is the   physical product. To be able
to sell it at a profit, the supplier advertises it as an axe for the professional. This is the Communications Concept. The brand is the Ajax brand
(a hypothetical brand supposed to be well-known among foresters in
Northern Europe), which implies considerable Brand Strength, derived
from its commercial history. The Distribution is through mail order. The
Price is approximately double that of a comparable mass-produced axe.
The Buyer's Product is founded on rational and economical Utility,
which is prospect for the buyer of buying a well functioning axe to a reasonable price/performance. This could, however, be overridden by the
outcome of the other Buyer's Product factors. Its Availability is low;
however, as it has to be ordered by mail. Pleasure is the feel of the perfectly balanced axe and its impeccable finish. The lacking Availability is
compensated by the Supplier Relation, which comprises a life-long guarantee and a membership in the Ajax Tool Club. The buyer's Social Identity is heightened through buying a high quality, professional tool (even
though the buyer himself is only a wealthy amateur).
The buyer's valuation of the axe is thus not only founded on his demands for utility - which should have guided him to an ordinary axe at
half the price - but on the other factors (Pleasure, Supplier Relation and,
not least of which is Social Identity) to give him value for his money.
THE SUPPLIER'S PRODUCT – DEFINITIONS
Differentiating potential values: adding to, compensating for, and offering synergies between each other.
• FUNCTION = What is the product supposed to do, how do you describe
it in terms of performance and/or qualities? Does it offer a unique value
in terms of function?
• DESIGN = What could be the contribution of the product's design, its
perceived physics - aesthetics, graphics, ergonomics, smells, sounds, etc;
its way of informing of its use, how it communicates quality?  Could design of associated surroundings, like the corporate design program,
packaging, displays, etc – add to its value?
• COMMUNICATION CONCEPT = What could be the contribution of the
marketing communication message to the value of the product – to make GENERAL THEORY OF MARKETING
CARL ERIC LINN
© CARL ERIC LINN / META MANAGEMENT AB 1999 - 2010
- 26 -
it, to facilitate the use of it, to attract the chosen target group, to make it
socially and/or professionally accepted?
• DISTRIBUTION = Does the system for distribution contribute to the perceived value of the product? Does it offer the degree of availability expected for a product of its price level? Is the distribution of technical
service, information service, spares, etc., designed to add to the value by
building relations for customer loyalty?
• BRAND = Does the product apply to existing Brand Strategy, Brand Setting, and – most essentially – the buyers’ established perception of the
Brand, the Operative Brand? Will the product take advantage of the Operative Brand, and add to its value? Is there a risk that it will hurt it or
cannibalize on other products?
• PRICE ASKED = Is the price level strategically set for a chosen market
segment? Is it differentiated to support marketing efforts – or is it set for
head-on competition? Does the price confirm product qualities or emphasise them?
THE BUYER'S PRODUCT - DEFINITIONS
Positioning perceived values: adding to, compensating for, and offering synergies between each other.
• UTILITY = Value of rational fulfilment of basic needs - physiological
needs, own and group's safety and security. Relief of laborious and time
consuming tasks, and the enabling of new activities and tasks.
• AVAILABILITY = Value of availability in space and/or time concerning
deliveries, sales service, general user support, spares, technical service,
guarantee service, etc.
• PLEASURE = Value of buyer's own, private and isolated, sensual sensation from using the product. Feel, comfort, security and safety, taste,
looks, noise level, etc.
• SUPPLIER RELATION = Value of pure social relation to the people
supplying (servicing) the product. Are they (people, company) perceived
as friendly, honest, trustworthy - are business deals and communication
characterized by respect and a wish for lasting relation?
• SOCIAL IDENTITY = Social value of buying, owning and/or using the
product (Brand) for the decision maker's, owner's or user's identity in his
social surroundings. SI may be supported by either conspicuous or discreet consumption, and differently at any position on the "Camel Curve".
• VALUE = The individual valuation of the product will decide if and
when the buyer buys it. In mass marketing buyer's valuation depends
heavily on perceived credibility of the supplier and his brand. In the
moment the buyer finds that the product offers him value for his money,
he will exchange them for the product.GENERAL THEORY OF MARKETING
The development process before sale should be seen as the creation of a value
potential, and the process from the sales transaction onwards as the realisation
of the value, as perceived by the buyer/owner/user. How the perceived product value develops during the time of use or ownership is decisive for repeat
purchases and customer loyalty and for the way the user will influence the
3.
THE META MANAGEMENT MODEL, MMM
The Dynamic Development of Value
in Brands and Branded Products
The perception of a brand is unique to the mind of every individual, and relating to his/her role in the commercial process. A strong brand would be defined
as a distinct perception common to a large population.
The Operative Brand
In the transaction regarding a branded product, the buyer’s evaluation of the
offer includes the metaproduct and its generally most important component,
the brand. As the brand in this case represents a part of the value embraced by
the buyer, it is operative in the transaction. Consequently, this aspect of the
brand is called the operative brand.
The Transaction Model with its inherent Operational Brand
The Internal Brand
The characteristics of the Supplier’s Product offered to the buyer are a result of
the activities and objectives of the staff and employees of the supplier. Consequently, their perception of the brand is guiding their actions and has a decisive
influence on their performance. The Internal Brand has to co-operate with the
Operative Brand in forming the product the supplier offers the market.GENERAL THEORY OF MARKETING
The Transaction Model with its closest sources of influence.
The Strategic Brand
The management of every conscious supplier is supposed to have a strategic
planning for its brand and products. This is realized in a brand strategy, which is
a documentation of their essential and specific aspects of marketing. Consequently, this brand strategy would be seen as the Strategic Brand of the supplier’s management. The Strategic Brand will be filtered through the Internal
Brand to influence the conception of the Supplier’s Product.
Including the management planning of the Brand.GENERAL THEORY OF MARKETING
The business core – the Model in outline
The Strategic Brand obviously is the result of the notions forming the business
core, founded on the market situation in general.
The MetaManagement Model in detail
The detailed MetaManagement Model describes the development of value in
brands and branded products and forms a practical tool as a dynamic model
for realizing the process and the understanding the logics of its system.