Digital Subscriber Line

C H A P T E R Chapter Goals †¢ †¢ †¢ †¢ †¢ Identify and discuss different types of digital subscriber line (DSL) technologies. Discuss the benefits of using xDSL technologies. Explain how ASDL works. Explain the basic concepts of signaling and modulation. Discuss additional DSL technologies (SDSL, HDSL, HDSL-2, G. SHDSL, IDSL, and VDSL). Digital Subscriber Line Introduction Digital Subscriber Line (DSL) technology is a modem technology that uses existing twisted-pair telephone lines to transport high-bandwidth data, such as multimedia and video, to service subscribers. The term xDSL covers a number of similar yet competing forms of DSL technologies, including ADSL, SDSL, HDSL, HDSL-2, G. SHDL, IDSL, and VDSL. xDSL is drawing significant attention from implementers and service providers because it promises to deliver high-bandwidth data rates to dispersed locations with relatively small changes to the existing telco infrastructure. xDSL services are dedicated, point-to-point, public network access over twisted-pair copper wire on the local loop (last mile) between a network service provider’s (NSP) central office and the customer site, or on local loops created either intrabuilding or intracampus. Currently, most DSL deployments are ADSL, mainly delivered to residential customers. This chapter focus mainly on defining ADSL. Asymmetric Digital Subscriber Line Asymmetric Digital Subscriber Line (ADSL) technology is asymmetric. It allows more bandwidth downstream—from an NSP’s central office to the customer site—than upstream from the subscriber to the central office. This asymmetry, combined with always-on access (which eliminates call setup), makes ADSL ideal for Internet/intranet surfing, video-on-demand, and remote LAN access. Users of these applications typically download much more information than they send. Internetworking Technologies Handbook 1-58705-001-3 21-1 Chapter 21 Asymmetric Digital Subscriber Line Digital Subscriber Line ADSL transmits more than 6 Mbps to a subscriber and as much as 640 kbps more in both directions (shown in Figure 21-1). Such rates expand existing access capacity by a factor of 50 or more without new cabling. ADSL can literally transform the existing public information network from one limited to voice, text, and low-resolution graphics to a powerful, ubiquitous system capable of bringing multimedia, including full-motion video, to every home this century. Figure 21-1 The Components of an ADSL Network Include a Telco and a CPE Core network Existing copper Server ADSL ADSL 1. 5 to 9 Mbps 16 to 640 kbps Internet ADSL connection ADSL will play a crucial role over the next decade or more as telephone companies enter new markets for delivering information in video and multimedia formats. New broadband cabling will take decades to reach all prospective subscribers. Success of these new services depends on reaching as many subscribers as possible during the first few years. By bringing movies, television, video catalogs, remote CD-ROMs, corporate LANs, and the Internet into homes and small businesses, ADSL will make these markets viable and profitable for telephone companies and application suppliers alike. ADSL Capabilities An ADSL circuit connects an ADSL modem on each end of a twisted-pair telephone line, creating three information channels: a high-speed downstream channel, a medium-speed duplex channel, and a basic telephone service channel. The basic telephone service channel is split off from the digital modem by filters, thus guaranteeing uninterrupted basic telephone service, even if ADSL fails. The high-speed channel ranges from 1. 5 to 9 Mbps, and duplex rates range from 16 to 640 kbps. Each channel can be submultiplexed to form multiple lower-rate channels. ADSL modems provide data rates consistent with North American T1 1. 544 Mbps and European E1 2. 048 Mbps digital hierarchies (see Figure 21-2), and can be purchased with various speed ranges and capabilities. The minimum configuration provides 1. 5 or 2. 0 Mbps downstream and a 16-kbps duplex channel; others provide rates of 6. 1 Mbps and 64 kbps for duplex. Products with downstream rates up to 8 Mbps and duplex rates up to 640 kbps are available today. ADSL modems accommodate Asynchronous Transfer Mode (ATM) transport with variable rates and compensation for ATM overhead, as well as IP protocols. Internetworking Technologies Handbook 21-2 1-58705-001-3 Chapter 21 Digital Subscriber Line Asymmetric Digital Subscriber Line Figure 21-2 This Chart Shows the Speeds for Downstream Bearer and Duplex Bearer Channels Downstream bearer channels n x 1. 536 Mbps 1. 536 Mbps 3. 072 Mbps 4. 608 Mbps 6. 144 Mbps 2. 048 Mbps 4. 096 Mbps x 2. 048 Mbps Duplex bearer channels C channel Optional channels 16 Kbps 64 Kbps 160 Kbps 384 Kbps 544 Kbps 576 Kbps Downstream data rates depend on a number of factors, including the length of the copper line, its wire gauge, the presence of bridged taps, and cross-coupled interference. Line attenuation increases with line length and frequency, and decreases as wire diameter increases. Ignoring bridged taps, ADSL perfo rms as shown in Table 21-1. Table 21-1 Claimed ADSL Physical-Media Performance Data Rate (Mbps) 1. 5 or 2 1. 5 or 2 6. 1 6. 1 Wire Gauge (AWG) 24 26 24 26 Distance (feet) 18,000 15,000 12,000 9,000 Wire Size (mm) 0. 5 0. 4 0. 5 0. 4 Distance (km) 5. 5 4. 6 3. 7 2. 7 Although the measure varies from telco to telco, these capabilities can cover up to 95 percent of a loop plant, depending on the desired data rate. Customers beyond these distances can be reached with fiber-based digital loop carrier (DLC) systems. As these DLC systems become commercially available, telephone companies can offer virtually ubiquitous access in a relatively short time. Many applications envisioned for ADSL involve digital compressed video. As a real-time signal, digital video cannot use link- or network-level error control procedures commonly found in data communications systems. Therefore, ADSL modems incorporate forward error correction that dramatically reduces errors caused by impulse noise. Error correction on a symbol-by-symbol basis also reduces errors caused by continuous noise coupled into a line. ADSL Technology ADSL depends on advanced digital signal processing and creative algorithms to squeeze so much information through twisted-pair telephone lines. In addition, many advances have been required in transformers, analog filters, and analog/digital (A/D) converters. Long telephone lines may attenuate signals at 1 MHz (the outer edge of the band used by ADSL) by as much as 90 dB, forcing analog sections of ADSL modems to work very hard to realize large dynamic ranges, separate channels, and Internetworking Technologies Handbook 1-58705-001-3 21-3 Chapter 21 Asymmetric Digital Subscriber Line Digital Subscriber Line maintain low noise figures. On the outside, ADSL looks simple—transparent synchronous data pipes at various data rates over ordinary telephone lines. The inside, where all the transistors work, is a miracle of modern technology. Figure 21-3 displays the ADSL transceiver-network end. Figure 21-3 This Diagram Provides an Overview of the Devices That Make Up the ADSL Transceiver-Network End of the Topology Downstream channel(s) Duplex channel(s) Mux Error control XMTR D/A and A/D Line coupler Channel separation (FDM or ECH) Basic telephone service splitter Line Demux Duplex channel(s) Error control RCVR Basic telephone service ADSL transceiver–network end (Premises end is mirror image) To create multiple channels, ADSL modems divide the available bandwidth of a telephone line in one of two ways: frequency-division multiplexing (FDM) or echo cancellation, as shown in Figure 21-4. FDM assigns one band for upstream data and another band for downstream data. The downstream path is then divided by time-division multiplexing into one or more high-speed channels and one or more low-speed channels. The upstream path is also multiplexed into corresponding low-speed channels. Echo cancellation assigns the upstream band to overlap the downstream, and separates the two by means of local echo cancellation, a technique well known in V. 32 and V. 34 modems. With either technique, ADSL splits off a 4-kHz region for basic telephone service at the DC end of the band. Internetworking Technologies Handbook 21-4 1-58705-001-3 Chapter 21 Digital Subscriber Line Signaling and Modulation Figure 21-4 ADSL Uses FDM and Echo Cancellation to Divide the Available Bandwidth for Services FDM Upstream Basic telephone service Downstream Frequency Echo cancellation Upstream Basic telephone service Downstream 1 Mhz Frequency 1 Mhz An ADSL modem organizes the aggregate data stream created by multiplexing downstream channels, duplex channels, and maintenance channels together into blocks, and it attaches an error correction code to each block. The receiver then corrects errors that occur during transmission, up to the limits implied by the code and the block length. At the user’s option, the unit also can create superblocks by interleaving data within subblocks; this allows the receiver to correct any combination of errors within a specific span of bits. This, in turn, allows for effective transmission of both data and video signals. Signaling and Modulation This section includes the following: †¢ †¢ CAP and DMT Modulated ADSL ADSL Standards and Associations CAP and DMT Modulated ADSL DMT and CAP are line-coding methods for modulating the electrical signals sent over the copper wire in the local loop. Carrierless Amplitude and Phase (CAP) is a common line-coding method. CAP is a well-understood technology because of its similarity with QAM. Although CAP is well-understood and relatively inexpensive, some argue that it is difficult to scale because it is a single-carrier modulation technique and is susceptible to narrowband interference. DMT uses multiple carriers. At this point, DMT is capable of more speed than CAP. This is one reason that the ANSI committee T1E1. accorded it standards status in document T1. 413. This standard calls for 256 subbands of 4 KHz each, thereby occupying 1. 024 GHz. Each subband can be modulated with QAM 64 for clean subbands, down to QPSK. If each of the subbands can support QAM-64 modulation, then the forward channel supports 6. 1 Mbps. On the return path are 32 subbands, with a potential for 1. 5 Mbps. Internetworking Technologies H andbook 1-58705-001-3 21-5 Chapter 21 Signaling and Modulation Digital Subscriber Line CAP and DMT Compared CAP is a single-carrier technique that uses a wide passband. DMT is a multiple-carrier technique that uses many narrowband channels. The two have a number of engineering differences, even though, ultimately, they can offer similar service to the network layers discussed previously. Adaptive Equalization Adaptive equalizers are amplifiers that shape frequency response to compensate for attenuation and phase error. Adaptive equalization requires that the modems learn line characteristics and do so by sending probes and looking at the return signals. The equalizer then knows how it must amplify signals to get a nice, flat frequency response. The greater the dynamic range, the more complex the equalization. ADSL requires 50 dB of dynamic range, complicating adaptive equalization. Only with recent advances in digital signal processing (number crunching) has it become possible to have such equalization in relatively small packaging. Adaptive equalization is required for CAP because noise characteristics vary significantly across the frequency passband. Adaptive equalization is not needed for DMT because noise characteristics do not vary across any given 4-KHz subband. A major issue in comparing DMT with CAP is determining the point at which the complexity of adaptive equalization surpasses the complexity of DMT’s multiple Fourier transform calculations. This is determined by further implementation experience. Power Consumption Although DMT clearly scales and does not need adaptive equalization, other factors must be considered. First, with 256 channels, DMT has a disadvantage regarding power consumption (and, therefore, cost) when compared with CAP. DMT has a high peak-to-average power ratio because the multiple carriers can constructively interfere to yield a strong signal. DMT has higher computational requirements, resulting in more transistors than the transceiver chips. Numbers are mostly proprietary at this point, but it is estimated that a single transceiver will consume 5 W of power, even with further advances. Power consumption is important because hundreds or thousands (as carriers dearly hope) of transceivers might be at the central office, or CEV. This would require much more heat dissipation than CAP requires. Latency Another issue for DMT is that latencies are somewhat higher than with CAP (15). Because each subband uses only 4 KHz, no bit can travel faster than permitted by a QAM-64. The trade-off between throughput and latency is a historical one in data communications and has normally been settled in the marketplace. Speed DMT appears to have the speed advantage over CAP. Because narrow carriers have relatively few equalization problems, more aggressive modulation techniques can be used on each channel. For CAP to achieve comparable bit rates, it might be necessary to use more bandwidth, far beyond 1 MHz. This creates new problems associated with high frequencies on wires and would reduce CAP’s current advantage in power consumption. Internetworking Technologies Handbook 21-6 1-58705-001-3 Chapter 21 Digital Subscriber Line Additional DSL Technologies ADSL Standards and Associations The American National Standards Institute (ANSI) Working Group T1E1. 4 recently approved an ADSL standard at rates up to 6. 1 Mbps (DMT/ANSI Standard T1. 413). The European Technical Standards Institute (ETSI) contributed an annex to T1. 413 to reflect European requirements. T1. 413 currently embodies a single terminal interface at the premises end. Issue II expands the standard to include a multiplexed interface at the premises end, protocols for configuration and network management, and other improvements. The ATM Forum and the Digital Audio-Visual Council (DAVIC) have both recognized ADSL as a physical layer transmission protocol for UTP media. Additional DSL Technologies This section discusses the following DSL technologies: †¢ †¢ †¢ †¢ †¢ †¢ SDSL HDSL HDSL-2 G. SHDSL ISDN Digital Subscriber Line (DSL) VDSL SDSL Symmetric Digital Subscriber Line (SDSL) is a rate-adaptive version of HDSL and, like HDSL, is symmetric. It allows equal bandwidth downstream from an NSP’s central office to the customer site as upstream from the subscriber to the central office. SDSL supports data only on a single line and does not support analog calls. SDSL uses 2B1Q line coding and can transmit up to 1. 54 Mbps to and from a subscriber, or can be configured to offer a variable range of bandwidth up to 1. 45 Mbps. The symmetry that SDSL offers, combined with always-on access (which eliminates call setup), makes it a favorable WAN technology for small to medium businesses and branch offices, and can be an affordable alternative to dedicated leased lines and Frame Relay services. Because traffic is symmetrical, file transfer, web hosting, and distance-learning applications can effectively be implemented with SDSL. HDSL Originally developed by Bellcore, high bit-rate DSL (HDSL)/T1/E1 technologies have been standardized by ANSI in the United States and by ETSI in Europe. The ANSI standard covers two-pair T1 transmission, with a data rate of 784 kbps on each twisted pair. ETSI standards exist both for a two-pair E1 system, with each pair carrying 1168 kbps, and a three-pair E1 system, with 784 kbps on each twisted pair. HDSL became popular because it is a better way of provisioning T1 or E1 over twisted-pair copper lines than the long-used technique known as Alternative Mark Inversion (AMI). HDSL uses less bandwidth and requires no repeaters up to the CSA range. By using adaptive line equalization and 2B1Q modulation, HDSL transmits 1. 544 Mbps or 2. 048 Mbps in bandwidth ranging from 80ntrast to the 1. 5 MHz required by AMI. (AMI is still the encoding protocol used for the majority of T1. ) Internetworking Technologies Handbook 1-58705-001-3 21-7 Chapter 21 Additional DSL Technologies Digital Subscriber Line T1 service can be installed in a day for less than $1,000 by installing HDSL modems at each end of the line. Installation via AMI costs much more and takes more time because of the requirement to add repeaters between the subscriber and the CO. Depending on the length of the line, the cost to add repeaters for AMI could be up to $5,000 and could take more than a week. HDSL is heavily used in cellular telephone buildouts. Traffic from the base station is backhauled to the CO using HDSL in more than 50 percent of installations. Currently, the vast majority of new T1 lines are provisioned with HDSL. However, because of the embedded base of AMI, less than 30 percent of existing T1 lines are provisioned with HDSL. HDSL does have drawbacks. First, no provision exists for analog voice because it uses the voice band. Second, ADSL achieves better speeds than HDSL because ADSL’s asymmetry deliberately keeps the crosstalk at one end of the line. Symmetric systems such as HDSL have crosstalk at both ends. HDSL-2 HDSL-2 is an emerging standard and a promising alternative to HDSL. The intention is to offer a symmetric service at T1 speeds using a single-wire pair rather than two pairs. This will enable it to operate for a larger potential audience. It will require more aggressive modulation, shorter distances (about 10,000 feet), and better phone lines. Much of the SDSL equipment in the market today uses the 2B1Q line code developed for Integrated Services Digital Network. The Bell companies have insisted that using this SDSL at speeds higher than 768 kbps can cause interference with voice and other services that are offered on copper wire within the same wire bundle. The biggest advantage of HDSL-2, which was developed to serve as a standard by which different vendors’ equipment could interoperate, is that it is designed not to interfere with other services. However, HDSL-2 is full rate only, offering services only at 1. 5 Mbps. G. SHDSL G. SHDSL is a standards-based, multirate version of HDSL-2 and offers symmetrical service. The advantage of HDSL-2, which was developed to serve as a standard by which different vendors’ equipment could interoperate, is that it is designed not to interfere with other services. However, the HDSL-2 standard addresses only services at 1. 5 Mbps. Multirate HDSL-2 is part of Issue 2 of the standard known as G. SHDSL, and is ratified by the ITU. G. SHDSL builds upon the benefits of HDSL-2 by offering symmetrical rates of 2. 3 Mbps. ISDN Digital Subscriber Line ISDN digital subscriber line (IDSL) is a cross between ISDN and xDSL. It is like ISDN in that it uses a single-wire pair to transmit full-duplex data at 128 kbps and at distances of up to RRD range. Like ISDN, IDSL uses a 2B1Q line code to enable transparent operation through the ISDN â€Å"U† interface. Finally, the user continues to use existing CPE (ISDN BRI terminal adapters, bridges, and routers) to make the CO connections. The big difference is from the carrier’s point-of-view. Unlike ISDN, ISDL does not connect through the voice switch. A new piece of data communications equipment terminates the ISDL connection and shuts it off to a router or data switch. This is a key feature because the overloading of central office voice switches by data users is a growing problem for telcos. Internetworking Technologies Handbook 21-8 1-58705-001-3 Chapter 21 Digital Subscriber Line Summary The limitation of ISDL is that the customer no longer has access to ISDN signaling or voice services. But for Internet service providers, who do not provide a public voice service, ISDL is an interesting way of using POTS dial service to offer higher-speed Internet access, targeting the embedded base of more than five million ISDN users as an initial market. VDSL Very-High-Data-Rate Digital Subscriber Line (VDSL) transmits high-speed data over short reaches of twisted-pair copper telephone lines, with a range of speeds depending on actual line length. The maximum downstream rate under consideration is between 51 and 55 Mbps over lines up to 1000 feet (300 m) in length. Downstream speeds as low as 13 Mbps over lengths beyond 4000 feet (1500 m) are also common. Upstream rates in early models will be asymmetric, just like ADSL, at speeds from 1. 6 to 2. 3 Mbps. Both data channels will be separated in frequency from bands used for basic telephone service and Integrated Services Digital Network (ISDN), enabling service providers to overlay VDSL on existing services. Currently, the two high-speed channels are also separated in frequency. As needs arise for higher-speed upstream channels or symmetric rates, VDSL systems may need to use echo cancellation. Summary ASDL technology is asymmetric, allowing more bandwidth for downstream than upstream data flow. This asymmetric technology combined with always-on access makes ASDL ideal for users who typically download much more data than they send. An ASDL modem is connected to both ends of a twisted-pair telephone line to create three information channels: a high-speed downstream channel, a medium-speed duplex channel, and a basic telephone service channel. ADSL modems create multiple channels by dividing the available bandwidth of a telephone line using either frequency-division multiplexing (FDM) or echo cancellation. Both techniques split off a 4-kHz region for basic telephone service at the DC end of the band Synchronous Digital Subscriber Line (SDSL) provides variable, symmetric, high-speed data communication up to 1. 54 Mbps. But SDSL doesn’t allow analog on the same line, as ADSL does. SDSL uses 2B1Q line coding, a technology employed in ISDN and T1 services. SDSL is a viable business option because of its capability to transmit high-speed data over longer distances from the CO and because of its ease of deployment made possible by its spectral compatibility. High Bit-Rate DSL (HDSL) is a symmetric version of DSL that uses 2B1Q like SDSL, but over two-wire pairs. HDSL is targeted at business deployment because it offers full-rate symmetrical 1. 5 Mbps service. HDSL-2 is a standards-based version of HDSL offering symmetrical 1. 5 Mbps service like HDSL, but with a single twisted pair of wires. HDSL is full-rate and does not offer variable rates. G. SHDSL does offer multirate service with symmetrical speeds of up to 2. 3 Mbps. ISDN digital subscriber line (IDSL) is similar in many ways to ISDN. The primary difference is that IDSL is always on and can reach speeds up to 512 kbps with compression. IDSL uses 2B1Q line coding and does not support analog. On the other hand, IDSL does allow data communications over longer distances than other DSL options (up to 26,000 feet) and is considerably less expensive than ISDN service, in most cases. Because IDSL supports existing ISDN CPE, it makes it easy to convert from ISDN to IDSL. Internetworking Technologies Handbook 1-58705-001-3 21-9 Chapter 21 Review Questions Digital Subscriber Line Very-High-Data-Rate Digital Subscriber Line (VDSL) transmits high-speed data over short distances through twisted-pair copper telephone lines. VDSL technology is still in the definition stage, but additional research is required before it can be standardized. VSDL and ADSL are similar technologies. However, although VSDL transmits data at nearly 10 times the rate of ADSL, ADSL is the more complex transmission technology. Review Questions Q – Name the current versions of DSL technology. A – ADSL, SDSL, HDSL, HDSL-2, G. SHDL, IDSL, and VDSL. Q – What are the two-line coding methods used for ADSL? A – DMT and CAP. Q – Which versions of DSL offer symmetrical service? A – SDSL, HDSL, and HDSL-2. Q – What symmetrical version of DSL offers multirate service over a single pair of wire? A – G. SHDSL Q – How far of a reach can IDSL achieve from the CO? A – 26,000 feet. Q – What downstream and upstream rates are proposed for VDSL? A – The maximum downstream rate under consideration is between 51 and 55 Mbps over lines up to 1000 feet (300 m) in length. Downstream speeds as low as 13 Mbps over lengths beyond 4000 feet (1500 m) are also common. Upstream rates in early models will be asymmetric, just like ADSL, at speeds from 1. 6 to 2. 3 Mbps. For More Information ADSL Forum (http://www. adsl. com/) Cisco DSL Depot (http://www. isco. com/warp/public/779/servpro/promotions/dsldepot/) Glossary Terms †¢ G. SHDSL – Asymmetrical Digital Subscriber Line. The upstream data rate is different from the downstream (typically the downstream is greater than the upstream). It is applicable to many DSL technologies offered today; however, this term typically assumes DMT as defined in the ANSI T1. 413 specification. CPE – Customer premises equipment, including devices such as CSU/DSUs, modems, and ISDN terminal adapters, required to provide an electromagnetic termination for wide-area network circuits before connecting to the router or access server. This equipment was historically provided by the telephone company, but it is now typically provided by the customer in North American markets. †¢ Internetworking Technologies Handbook 21-10 1-58705-001-3 Chapter 21 Digital Subscriber Line Glossary Terms †¢ CSU/DSU – Channel service unit/data service unit. Provides electromagnetic termination of the digital (WAN) signal at the customer premises. Performs line conditioning and equalization functions, and responds to loopback commands sent from the central office. In North America, the customer supplies the device providing CSU/DSU functionality; outside North America, the telecommunications service provider usually provides this device. DMT – Discrete Multitone is the ANSI specified modulation technique for G. SHDSL (ANSI-T1. 413). DMT is theoretically capable of more speed than CAP. The key providers of DMT are Alcatel, Amati, Aware/ADI, and Orckit. Downstream – Refers to the transmission of data from the central office (CO or COE) to the customer premise equipment (CPE). HDSL – High-speed Digital Subscriber Line. This is a symmetrical modulation technique that uses two or three pairs of wires. HDSL2 – High-speed Digital Subscriber Line. This is a symmetrical modulation technique that can achieve speeds in the T1 (1. 5 Mbps) range using one copper pair. POTS – Plain old telephone service. QAM – Quadrature amplitude phase modulation. RG. SHDSL – Rate Adaptive Digital Subscriber Line. This refers to the CAP2 and QAM technologies that use variable data rates to maximize the utilization of various loop lengths. SDSL – Symmetric Digital Subscriber Line. This indicates a subscriber line service that utilizes the same data rate for upstream and downstream. This term is applicable to MDSL and HDSL technologies. Upstream – Refers to the transmission of data from the customer premises equipment (CPE) to the central office equipment (CO or COE). VDSL – Very-High-Data-Rate Digital Subscriber Line. This is a high-speed asymmetrical service in the 10 to 25 Mbps range, typically limited to less than 5,000 feet. The targeted application for this technology is a hybrid fiber copper system (fiber to the neighborhood). †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Internetworking Technologies Handbook 1-58705-001-3 21-11 Chapter 21 Glossary Terms Digital Subscriber Line Internetworking Technologies Handbook 21-12 1-58705-001-3

Discuss one or more theories of Moral Understanding and evaluate its conclusions Essay

The term morality, according to Shaffer (1993) means â€Å"a set of principles or ideals that help the individual to distinguish right from wrong and to act on this distinction. Morality is important to society, as it would not function effectively unless there is some agreement of what is right and wrong. There are many underlying processes and environmental factors, which limit or promote social, cognitive and moral development in children. In modern society, television could be considered to be one of the major influences on a child’s moral development. There are three approaches to moral development; the cognitive approach, the psychodynamic approach and the social learning theory. The Cognitive-Developmental approach of Piaget and Kohlberg studies how children become more able to reason morally and make moral judgements, whereas the Freud’s psychodynamic approach is more concerned with the development of the conscience and moral feelings such as guilt and anxiety. The social learning theory of Bandura and Mischel investigates the development of moral behaviour and how role models in the family, society and the media, influence it. The theory I am going to discuss is Piaget’s Cognitive-Developmental Approach. His theory of moral development is concerned with how the child’s moral knowledge and understanding change with age. Piaget saw morality as any system of rules, which governs interaction between people. The methods of investigation he used to develop his theories were, he looked at the way children imposed rules in their games. He used games to study the development of children’s moral development as he thought that by studying rules in the context of a game, he could study the child’s spontaneous though directly. He also, assessed changes in the child’s moral judgements by telling hypothetical stories about children who lied, stole or broke something. When using hypothetical stories, Piaget was generally more interested in the reasons why the children give the answers they did and not particularly the answers. Piaget identifies stages of moral development just as he identified stages with cognitive development. His theories of the way children think and their moral reasoning goes through a series of stages, as they are adapting to the world, these are also known as the processes of accommodation and assimilation. He believed that as children’s reasoning about the world changes when they grow older and gain more experience, so does their reasoning about morality. Their ability to think about the world in more complex ways is what causes them to move on from one stage to the next. This is known as cognitive development. Piaget stated that infants don’t understand much about morality until they are about three or four years of age. Their development divides into two main stages after infancy. His stages of moral development are: Pre Moral Stage (up to three or four years) Children don’t understand about rules, and so they don’t make moral judgements Stage of Heteronomous Morality (aged three – six years) Children at this stage think rules are absolute and unchangeable, and the goodness and badness of an action is judged largely on the basis of its consequences rather than by taking intent into account. Stage of Autonomous Morality (from around six or seven) Children at this stage now see rules as more changeable and intentions are taken into account. Children also start to believe that it is possible to break rules and get away with it, whereas earlier they tended to think they will always be found out and possibly punished. Researchers from Europe and America have tested some of Piaget’s theories and have concluded that distinct stages of development do seem to exist however, other research found that children do not see all rules as being equally important as Piaget thought they did. Heteronomous Morality, also known as moral realism, means when the child is subject to another’s laws or rules. Children think that rules must be obeyed no matter what the circumstances. A child at this stage will think that rules are only made by authority figures, such as, parents and teachers. Two other features that are displayed in moral reasoning at this stage are, first they expect bad behaviour to be punished in some way, they believe that the punishment should be expiatory – the wrongdoer must make amends for the crime by paying with some kind of suffering. They have the view that the amount of punishment should match the badness of the behaviour. Secondly, if the bad behaviour goes undetected then the child believes in immanent justice – where any misfortune occurring after the bad behaviour can be seen as a punishment. For example, if a child tells a lie and gets away with it, then later trips and falls, the younger child could consider this as a punishment. In general, they believe punishment should be fair and that wrongdoing will always be punished in some way. Autonomous Morality, which means when the child is subject to one’s own laws and rules. It involves moral relativism whereby the child comes to realise that rules evolve from social relationships. Due to the child ‘decentring’ and their developed ability to think more flexibly about moral issues, they have began to realise it is important to take other people’s opinions into account. At this stage a child will have developed the understanding that sometimes rules of morality can be broken in certain reasonable circumstances. They believe in reciprocal punishment, whereby the punishment should fit the crime. For example, if a child takes another child’s sweets, the first child should be deprived of their sweets or should make it up to the victim in some other way. This is known as the principle of reciprocity. Children will also have learnt at this stage that wrongdoers often avoid punishment, diminishing any belief in immanent justice. They see punishment as a method of making the offender understand the nature of the crime and that punishment is also a deterrent. The move from heteronomous morality to autonomous morality is influenced by two factors. Children around the age of seven begin to move on from the pre operational stage of an illogical and an egocentric way of thinking to more logical and flexible way of thinking, in the operational stage. Their growing awareness that other people have different views allows them to develop more mature moral reasoning. However, moral development lags at least one to two years behind cognitive development because the whole process depends on the cognitive changes occurring first. Kohlberg expanded Piaget’s theory to form a theory that also explained the development of moral reasoning. While Piaget described a two-stage process of moral development, Kohlberg’s theory outlined six stages within three different levels. Kohlberg extended Piaget’s theory, proposing that moral development is a continual process that occurs throughout the lifespan. A study by Colby et al (1983) criticised Piaget’s assumption that children of ten and eleven years old had reached an adult level of moral reasoning. Piaget was always focusing on what an average child was capable of achieving so he neglected the idea of great variations between the individual child’s ways of thinking. In general, Piaget’s cognitive theory has been criticised for the methods of investigation not being as precise as they could have been. Methods he used were seen as complicated, leading critics to think he under estimated younger children’s capabilities of what they could and could not do. This was because later research went on to conclude that children could actually take other motives into consideration, when they understood what motives were involved. Despite criticism, Piaget’s work is still regarded as a revolutionary step forward in the way we understand how children think. It has led to a much more realistic ways of understanding children’s moral development. Many attempts to test Piaget’s theories from researchers around the world have resulted in acceptance that some of his views and methods do appear to exist.

Globalization Essay Example | Topics and Well Written Essays - 1000 words - 1

Globalization - Essay Example Fashion images projected in the films, magazines, television, and the Internet have created a global style that has spread across different cultures and geographic boundaries. T-shirts, blue jeans, baseball caps, and athletic costumes are traded everywhere from China to Manhattan, and to the African villages. Fashion systems in Asia, Africa, and the West borrow different kinds of textile elements and styles from one another. All these styles are housed under one roof in the large shopping malls in the rich countries. These products gain the attention of customers belonging to all age-groups, ethnicities, genders, cultures, and professions like high-tech global bazaars. This trend of the homogenizing effect across countries and cultures as well as the increased variety of costumes and accessories within the geographic locations reflects a global paradox. Although the shopping malls in different countries across the world have similar stores and the products sold are same, yet every si ngle item has a huge variety. There is a seemingly baffling and infinite variety of cuts and fits in jeans both for men and women, ranging from the billowing baggy style to the stretched tight jeans, and from tapered at the ankle jeans to the bell-bottom jeans. Different styles have been developed to suit the individualistic needs of men and women belonging to different age-groups, and having different heights and physiques. â€Å"While a somewhat baggy, â€Å"relaxed† cut can signify dignified middle-aged femininity, a baggy cut taken to excess can signify hyper-masculine ghetto street smarts. Each variation takes its turn as an ephemeral and arbitrary signifier of shifting identities based on age, gender, ethnicity, or subculture† (â€Å"Globalization†). These days, the Fashion week in different cities around the world including Oslo, Berlin, Lahore, and Kiev are the same. The Fashion week was first organized in 1943 in the New York City. In those days, it was not possible for the Americans to visit Paris to know the latest trends in fashion. The objective of the organizers of the event was to attract the American designers. Fashion weeks are events in which both national and international designers get an opportunity to display their works which not only helps them gain the media attention but also earns them millions of tourist dollars in revenue. Proliferation of the fashion weeks all over the world is a potential sign of globalization of the fashion industry. These days, the most impressive fashion weeks are annually organized in London, Paris, New York, and Milan. The fashion industry grew by leaps and bounds as the fashion weeks were started to be organized in the Islamic countries. In the year 2006, the first fashion week was organized in Tehran. This fashion week featured modestly dressed women. The models wore hijabs, abayas, gowns, and other Islamic outfits in bright colors and prints. In the same year, fashion week was arrange d in New Delhi which featured 60 designers. Out of the 160 buyers who were attracted by the event, over 70 were international. The event earned the organizers profit worth $50 million. Globalization of the fashion industry reached its apogee with the use of the Internet. Internet not only spread awareness about the latest fashion trends, but also enabled the consumers to shop the latest

Living Conditions of Immigrants in America Today Research Paper

Living Conditions of Immigrants in America Today - Research Paper Example America as a country, is made up mostly of the descents of immigrants from Europe, who moved to the Americas in search of greener pastures. However, the America of today is witnessing another group of immigrants mainly from the third world countries, and in search of a better life contrary to their countries of origin (Avenarius 34). This topic is important in the sense that, while immigrants contribute significantly to the economy of the United States, their plight often go unnoticed at the expense of the bonafide citizens. While there are immigrants who are lucky to discover their dreams in this land of abundant opportunities, others find themselves in dire situations. The world today faces the impact of globalization and the economic crunch that has hit countries across the world including the developed countries such as the United States. As a result, the life of many Immigrants in America is not that rosy as perceived by relatives back in the country of origin. Many immigrants today in America, has to engage in more than one job to sustain both their needs and those of relatives back home. In terms of seeking employment, immigrants in America today faces a milestone since unemployment is widespread, and there is competition for the better job opportunities. On the same note, most immigrants are either semi-illiterate or illiterate and often find themselves looking for menial jobs. Further, most of immigrants in America mainly work in farms, restaurants, factories or any other job that does not requi re professional skills. This makes their living condition a challenge as a result of the meager wages they receive in their places of work. As consequent, most immigrants find themselves unable to afford decent accommodation or housing and healthcare (Conard 163). On another note, most citizens from other countries are often ignorant about the kind of life they may experience in another country. In the developing or third world countries, moving or migrating to the developed world is seen as a way of escaping poverty and other societal challenges common in the developing world. As a result of expecting heaven when immigrants move to a developed country, they end up exploited by rogue employers who underpays their services. This is a challenge for immigrants in America today since, most of these immigrants cannot protest for an improvement of wages. The main reason why most immigrants are unable to challenge employers for better working conditions and wages is because of being in the country illegally. The proper channels to seek work permit or permanent citizenship is involving and some of these immigrants often end up deported back to their countries of origin. To avoid deportation, most immigrants prefer remaining silent about their status as they continue to suffer from exploitation from rogue employers or unscrupulous business persons (Chip 48). Further, to make ends meet, immigrants in America often find themselves engaging in illegal dealings to earn more money to sustain their living and significant others. While most of these immigrants are innocent, they often end up in American prisons or deported to their countries of origins where some may face incarceration. The United States as a country, is considered the world’s number one economy and this means that government offers better social, economic and political structures for its citizens. However, most immigrants often find themse

The gender is a key variable in international relations Essay

The gender is a key variable in international relations - Essay Example In this essay, I have discussed gender relations from various perspectives to highlight its position within international relations. The answer to whether gender remains a key variable in international relations studies seems to be contentious. Various issues are discussed here including the interrelations between gender and politics, gender and social norms and gender and industrial changes. Trade, political agenda, and social policies are shaped and controlled not just by a non-gendered approach to international relations but also by including factors of race and gender in developing these approaches. The analysis definitely points to a single all-important factor in the study of gender in international relations, namely the influence of feminism. Feminist and women’s movements have developed in parallel with changes in the study of international relations and have transformed the way social rules and political changes are defined or analyzed. Several aspects of the feminist approach are discussed here including health, scientific management, political inclusion, incarceration, workplace equality, trade relations and women’s human rights. The studies suggest that gender issues have awareness of the discriminatory practice at the workplace, in the classroom, in political scenarios, social meetings and in the wide international contexts. Gender issues have permeated all aspects of society and are subsequently the main variables that define wide social transformations along with race and class. Considering the range of issues that seem to be affected by gender considerations and the tremendous influence of feminism in highlighting a gendered view of social systems, the acknowledged masculinities in social realms seem to have been replaced by a greater realization for women’s rights and gender equality patterns in all aspects of international relations.

Israeli-Palestinian Conflict Essay Example | Topics and Well Written Essays - 250 words

Israeli-Palestinian Conflict - Essay Example The main and the biggest obstacle to conflict resolution is strong religious values and inability of the parties to accept view points and ideas of ach other. Each of the parties tries to prove his position and correctness. "Prejudiced views on both sides, not only by those directly engaged in the conflict, but by their allies as well, further stoke the flames of hatred and violence" (Wahid and A'La 2009). This conflict vivid portrays that ethical and religious factors and principles dominated in the Arab world and prevent its people to establish peace in the region. This conflict can be overcome with the help of the global peace organizations and UNO (United Nations Organizations). In order to make the conflict peaceful, UNO should force leaders of two countries to take part in summit and sign peaceful agreements. The main policies should involve political negotiations and organization of social life on the disputed territory. In spite of territorial claims, the core of the conflict is religious difference between these states and their ethnical envy. The Israelis would have to choose whether to annex the West Bank and Gaza Strip. And if they did so, they would have to decide whether to grant full civil rights to the Palestinians (Israeli-Palestinian Conflict, 2008).

Breast Cancer Research Paper Example | Topics and Well Written Essays - 1000 words - 1

Breast Cancer - Research Paper Example The first reference to breast cancer appeared more than 3,500 years ago in ancient Greece (Aronowitz, 2007). The condition was described accurately as a bulging tumor of the breast of which no cure was known. Between 460 B.C. and 200 A.D., physicians from Hippocrates to Galen made efforts to understand the structure of a cancer tumor, noting especially the black fluid that is released when a tumor bursts. Since there were no methods to slow the progress of breast cancer, it became a disease that affected the entire body, making treatment options like surgery not a viable possibility. More breakthroughs were made during the 17th and 18th centuries, during which theories were debunked and others were formed to gain a better understanding of what causes breast cancer. French physicians Francois de la Boe Sylvius and Claude-Deshais Gendron were among the first to find connections between the transformation of lymphatic fluids and glandular tissue and the occurrence of breast cancer (Lacr oix, 2011). Friedrich Hoffman also hypothesized that lymphatic blockage caused breast cancer but as a result of too much or not enough sex. Though the causes of breast cancer were continuously debated, it was in 1757 when French physician Henri Le Dran determined that removing the tumor and infected lymph nodes could treat breast cancer, thus creating the modern mastectomy. The 19th and 20th centuries brought with them more treatment options for breast cancer. William Halstead, a New York surgeon, introduced other methods of breast removal, from the entire breast to just the cancerous sections. It was also discovered, by Scottish surgeon George Beatson, that the removal of ovaries decreased the size of tumors as the estrogen from ovaries help tumors to grow. Then, in 1955, physicians George Crile and Bernard Fisher confirmed what physicians from centuries past assumed: cancer was not localized but was capable of spreading if left untreated. This is where our current knowledge of bre ast cancer ends. Causes Breast cancer is among many other forms of cancer in which there are no definite causes of the condition. It is known that â€Å"breast cancer develops when some cells within the breasts grow abnormally (Pasqualini, 2008)†. Unlike healthier cells, these mutated cells divide more rapidly and then gather together until they create a mass or lump, which is the point of cancer. These cancerous cells then have the ability to spread through the breast and to other parts of the body. However, while the formation of the mutated cells is almost entirely understood, it is not yet clear what prompts these cells to grow the way that they do, thus causing breast cancer. Despite not knowing the precise causes of breast cancer, doctors and scientists have discovered factors that can increase one’s risk of developing this condition. One such risk factor is gender with women being more prone to developing breast cancer than men, though men are not immune to this condition. Genetics are another risk factor as some cases of breast cancer are believed to be hereditary, which would involve an individual with breast cancer passing on the mutated genes to their children. Similarly, individuals who have a family history of breast cancer are at risk for developing the condition. Lifestyle factors can also pose a risk, including

Advanced Management Accounting - Total Quality Management (TQM) Assignment

Advanced Management Accounting - Total Quality Management (TQM) - Assignment Example tion dynamics, provide an insight into the advantages that can be enacted through its integration, the possible drawbacks of T.Q.M and the considerations that need to be taken into account in case of its implementation, and finally, providing recommendations about its application with context to Spearhead Ltd. Reduced profits and shrinking in the network has brought about realization towards implementing quality system. T.Q.M being the front runner amongst quality systems has been suggested for implementation. T.Q.M is acronym for Total Quality management. As the name would imply, it pertains to quality management. Further dissection of the meaning would provide an insight into the nature and domain of operational capacity it entails. It refers to integrating quality mechanism in the every discipline and every domain of the organizational structure (MUKHERJEE, 2006, p. 393). Since Spearhead Ltd is faced with financial sink age, the addressing of different areas is required. T.Q.M would enable this. The low productivity in the financial sector impacts the clients’ satisfaction as well as the overall mood of the organization. Citing this, T.Q.M will enable undertaking a strategy that would enable overcoming the financial constraints. The domains of T.Q.M are not just limited to particular processes; rather it takes into account the working methods of the employees. The behaviour of the employees towards goals accomplishment along with the aptitude towards accomplishment of the goals and targets set forth. The focus of attention is the activities and the items used within as well. The use of the right of tools and techniques towards the accomplishment of tasks also entails the domain and consideration within a T.Q.M integrated system. Spearhead Ltd must look into the areas where wastes are high in percentage .The wastes are defined as those items, products and activities that do not add any value to the organizational activity or overall output. They in turn

Critique of Capitalist Economy Essay Example for Free

Critique of Capitalist Economy Essay Introduction Karl Marx and Freidrich Engels were great supporters of communism and were opposed to the capitalism way of economic system because they believed that it was a way of exploiting the poor and benefiting the rich in the society[1]. They did a lot of work as philosophers in addressing religious, political and economic issues. Karl Mark and Engels were supporters of communism and criticized the capitalism economy which was being advocated for by the developed countries. Thesis; communist economy is better than the capitalist economy. There has always been a conflict between the counties in the west and the Eurasia on the way economic policies should be set with countries like the US supporting capitalism while the countries that were formally soviet union oppose it and want continue with the communism way.   To critically assess the reasons why communism is better than capitalism, the following is the analysis of negative impact of capitalism and the advantages of the communist economy according to Karl Marx and Engels. The most notable writing is the communist manifesto. Communist Manifesto In 1848, Karl Marx and Freidrich Engels came together to write the   communist manifesto which was a proclamation of the unavoidable failure of the capitalist economy and wake up call to the workers all over the world[2]. The manifesto was commissioned by the communist league in England. Capitalism described as the economic scheme where there is free market of capital i.e. facilities and money, the natural resources and labor (production)[3]. This kind of system allows individual entities like people and companies to the business owners and not the central government. They run the production lines, make much profit as possible since they are also the decision makers of the issues that are affecting the production of goods and services plus the sale of the same[4]. Communism on the other hand is described as an economic system which allows the distribution of the countries resources with the intent of creating a non stratified society. In this type of economy, the government owns the production means and there are no private entities that own the same business or industry. Communism is intimately associated with a German philosophy, Karl Marx because he was an activists and an economist and wrote so much literature about communism and criticizing the capitalism. In his works, he put forward postulations that capitalism would be overthrown and ultimately replaced by communism. Since the individual ownership of the means of production would lead to exploitation, Karl Marx advocated for communism arguing that though the communism may vary from country to country, the following beneficial characteristics would still remain[5]; the planning, production and other operations in agriculture and industry are centrally organized, the system does not put up with opposition from other viewpoints and that only one political party runs the government. Communism developed as reaction of employees to the unacceptable working conditions during the emergence and the increased industrial revolution according to Marx and Engels. In Marx’s view, capitalist should[6] give a chance to socialism a chance to excel because capitalism was deemed to fail the economy because it would create two rivalry classes in the society of the â€Å"haves† and â€Å"have not† hence a new economic system would emerge and replace the capitalism[7]. Though not popular in the 19th century, the communist manifesto became widely used and read document as people sought to actually establish the most efficient economic system during the era of industrial revolution.   As discussed by Marx and Engels, the communism economy would come as a scientifically proofed issue and according to the historic changes of phenomena as continuous processes. Feudalism grew and as expected it had to transform giving rise to mercantilism which also naturally translated to capitalism, from this reasoning, Karl Marx expected that the supporters of the capitalist economy would accept change as it was inevitably going to take place with capitalism transforming to socialism (communism). Economy under Capitalism In the manifesto of communism, Marx and Engels argue that employment would be greatly affected by the owners of the means of production. It also addresses the idea of ownership of private property and idea of communism. The employees are depicted to be suffering from alienated labor; the alienation of labor is categorized in to four groups[8]; first, as soon as the product is made it is immediately taken away from the creator; second, the workers are exploited in the production line (too much work un-proportional to the pay), third, the human beings are meant to work and increase productivity blindly and not in agreement with the normal human nature (from species being), finally, mutual satisfaction of the human needs is replaced by the benefit resulting from the exchange of the products (from other beings). Marx analyses the Hegelian deduction of types of economies to explain how all the categories (salaries, rent, profits etc) were all alienated as a consequence of alienation of the human nature in the capitalist economy. This is because the structure of the economic system ultimately ends up dictating the way people come to live their lives in future, their behavior and determines the possible actions to be taken to stay on top. For instance, in the event that a capitalist economist intention is to remain in the industry (business venture) then he has to exploit the employees to the legal limit. The capitalist will definitely end up being a ruthless exploiter despite being wracked by guilt or not because of the need to stay in control of the economy and apparently everything.   On the same note, employees are forced to take on the work offer as there are no sensible alternatives. Marx and Engels insist that it is for this reason that people have to rise above such oppression and take the bull by its horns so as to have a collective control of their way of life in terms of economy and societal development. Commodity production is another aspect that is addressed by Marx as being used for exploitation. Commodity in the economy and business definitions is the product produced with an intention of exchange for legal tender or money in the market, as there exists a market, the product can be exchanged and that there is division of labor where a variety of products are produced, otherwise there would be no incentive for the exchange. With this kind of reasoning then, a commodity is described in terms of use and value. The use is easily understood, but the value becomes a complex issue to deal with and the relative value for the exchange has to be elaborated. For instance why does some amount of a product exchange for a different amount of another product? The elaboration has to cover the labor input during production of the product or rather the socially obligatory effort put in at average level of intensity to yield the commodity[9]. This is where the labor theory understanding and interpretation plays a big role, and it states that the quantity of socially essential work time needed to produce the commodity should be the determinant of its worth. In Marx view, this argument has two stages and the first is, to say if two items are compared by equations with an equal sign, there should be a third item of identical amount in both to which they are reducible and which is common, the second stage is to look for the suitable ‘third element’ and in this case labor is the only reasonable element[10]. Labor force is therefore likely to be exploited in order to increase the value of the commodity as the use remains constant. Capitalism is idiosyncratic; the capitalist economist does not only rely on the exchange of products as the source of profits but rather the progression of wealth, in the form of cash, with the intension of profit making by means of trading in the products and changing them into other products which can cost higher prices and generate more profits. According to Marx and Engels, no previous scholars have been able to clearly give an explanation of how capitalism as a whole would generate profits. There solution is that, the capitalists exploit the labor from employees, they buy employees labor effort for the day. The price (value) of the product is established by the same means that is, the socially essential labor force needed to make the product. In such an instance, the day’s labor effort is the worth of the products required to keep the employee alive for one day. Taking for example a situation where commodities take about five hours to create, the   first five hours of the day would be used up on creating value that is equal to the worth of the salaries the employees would be compensated, this is the necessary labor. Any other labor done above this is termed as surplus labor and it only benefits the capitalist economist to make surplus value for the profits. The analysis done by Marx reveal that labor called the variable capital and this because it is the only resource that can create more value than it is worth. Other items basically pass their value to the final processed product but cannot create any additional value and hence referred to as the constant capital. Profits generated by the capitalists are a result of employees working past the necessary labor to create value for the employer. This is the theory of profits as far as the surplus value of labor is concerned. The rate of profit making is bound to fall as the industry increases its mechanization under the capitalist economy, by the use of more constant capital and little variable. As it has already been established that labor is the only resource that can add value to a commodity, less advancement on labor as a result of less capital will translate to a fall in the profits. Marx emphasized on the shamed labor and value of commodity[11]. Labor Theory and Value The analysis of Marx and Engels basically emphasized on the reward of labor power and the other forces of production means, basically such resources as land and technology are necessary for production. The analysis of Marx differentiated the history of the means of production for instance the European nations developed from a feudal mode of producing products to capitalist economy. Marx believed that change would come at a fast rate because of the advance in technology. The understanding of the social relations of production to be involving groups of people who are classified based on the wealth they own or their income (social classes)[12]. Commodity fetishism is a description of what Engels termed as false consciousness and is intimately associated with the understanding of the ideology. The ideology was used to imply the ideas of the specific people (class) at a point in time in history[13]. Marx and Engels did not describe only the belief as half truth but as the most important political operation. This explains the way a class can control the production means in food and other manufactured goods, they contribute the ideas of production. People in capitalist are alienated from their own labor investment. The alienation of the labor power as expressed by the Marxist supporters indicates it as the major feature of capitalism resulting in commodity fetishism. Before the emergence of the capitalist economy in the European market, many people who operated their businesses as producers or merchants used to purchase goods and resell them to earn profits. The development of the capitalist economy came as a result of treating labor force as a commodity in itself; the peasants were allowed to exchange labor force with money from the rich people because they did not own any land which they could use to produce food from agriculture[14]. People were being paid according to the time they worked (they were selling labor and not commodity). Those who were in possession of land and the means of production were called bourgeois and they are the capitalists while the peasants who had to sell their labor power for survival were called proletarians[15]. The difference between the industrial capitalist and merchants is that the merchants purchase goods and resell them at some higher cost to earn profits depending on the changes of the laws of demand and supply in the market. The merchant practices arbitrage between markets while the industrialist capitalist exploit the labor market and the product under production[16]. For any profits to be created there has to be a surplus in labor market and value surplus. Capitalism on the other hand can be very productive and develop very fast because of the enticement to reinvest profits in the developing technology and capital facilities. It is also the most innovative economic system as it has always changed the means of production and caused notable improvements. With an attempt to cut down the labor cost, the capitalist economists are likely to invest more in the new technology and as a result considerably cut down the labor cost (less labor)[17]. Since Marx and Engels believed that the profits were from surplus labor, they also concluded that the profits would fall. Conclusion Marxism opposed capitalist and encouraged a move to communism (socialism) in which the economy distributes the resources equally to everybody in the community (nation). It does not promote private possession of assets and business.    References Antonio R.J Cohen. (2003). Marx and Modernity. Key Readings and Commentary. Blackwell Publishing Mark K. Engels F. (2007). Capital. A Critique of Political Economy Vol. 3 Part 1. The Process of Capitalist Production as a Whole. Cosimo Moore S.W. (1957). The Critique of Capitalist Democracy. An Introduction to the Theory of the State in Marx, Engels, and Lenin. Whitman Publishers. Preston P.W. (1982). Theories of Development. Taylor Francis Stalin J. Wells H.G (1937). Marxism vs. Liberalism. An interview. New Century Publishers. New York retrieved on 5th February 2009 from http://www.rationalrevolution.net/special/library/cc835_44.htm . [1] Antonio R.J Cohen. (2003). Marx and Modernity. Key Readings and Commentary. Blackwell Publishing [2] Mark K. Engels F. (2007). Capital. A Critique of Political Economy Vol. 3 Part 1. The Process of Capitalist Production as a Whole. Cosimo. [3] Mooore S.W. (1957). The Critique of Capitalist Democracy. An Introduction to the Theory of the State in Marx, Engels, and Lenin. Whitman Publishers. [4] Mark K. Engels F. (2007). n 2 [5] Stalin J. Wells H.G (1937). Marxism vs. Liberalism. An interview. New Century Publishers. New York retrieved on 5th February 2009 from [6] Stalin J. Wells H.G (1937) n 4 [7] Mark K. Engels F. (2007). n 2 [8] Mooore S.W. (1957). The Critique of Capitalist Democracy. An Introduction to the Theory of the State in Marx, Engels, and Lenin. Whitman Publishers. [9] Mark K. Engels F. (2007) n 2 [10] Antonio R.J Cohen. (2003). Marx and Modernity. Key Readings and Commentary. Blackwell Publishing [11] Mark K. Engels F. (2007) n 2 [12] Preston P.W. (1982). Theories of Development. Taylor Francis [13]Antonio R.J Cohen. (2003). Marx and Modernity. Key Readings and Commentary. Blackwell Publishing [14]Preston P.W. (1982). N 11 [15] Preston P.W. (1982). Theories of Development. Taylor Francis [16] Antonio R.J Cohen. (2003) n 6 [17] Mooore S.W. (1957). The Critique of Capitalist Democracy. An Introduction to the Theory of the State in Marx, Engels, and Lenin. Whitman Publishers.

Commercialization of Beauty Essay Example for Free

Commercialization of Beauty Essay To help with any queries you may have about the examination, I have written some guidelines below. You will have had experience preparing exam questions in your review sessions. The following document provides some further hints and tips, with some sample questions at the end. I have also attached a document with questions from January and Resit last year, with an outline of what the answer should contain. What do I have to do? In the examination, you will be asked to select three questions to answer from a choice of six. Very broadly, these areas might be taken from the nine major sections listed in the course outline as below. 3) Marketing to Consumers Consumer Behaviour * Why is customer analysis an important component of strategic marketing management? Making reference to a company of your choice suggest TWO models that can be used in undertaking such an analysis. * With reference to models and products of your choice, describe both the Consumer Buying Process and four common types of behaviour that consumer’s exhibit. * Explain, using examples, how marketers try to influence consumers at the different stages of the consumer decision process. 5) Product Strategy, Brand Management * Describe and discuss each of the key stages involved in new product development and explain why innovation is a key marketing strategy for organisations today. * What is the Boston share/growth matrix? [30] In turn, give an example  product for each of the four boxes and describe the marketing implications. [70] * What is a positioning map and how are they useful to marketers? [50] For an industry of your choice draw an example of a positioning map with at least 6 product/brands located on it according to appropriate criteria with comments on the strengths and weaknesses of each location. [50] * Assess the advantages and disadvantages of brand extensions. Use appropriate examples to illustrate your answer. * Examine the components of effective brand positioning, illustrating your answer with examples of well-positioned brands and poorly positioned ones. 6) Pricing Strategy * Discuss the following strategy using pricing theories and concepts from the course: The only reason that companies set low prices is that their products are undifferentiated. * List and explain the keys mistakes a strategic marketer could make when setting the price of a good or service. * You have been asked by a company specialising in consumer electronics about the pricing of a new product about to be launched. Describe the factors that the company should consider in setting the price of their new product. * Discuss how pricing should play a strategic rather than a tactical role for an organisation. Use relevant industry examples to illustrate your answer. 7) Distribution Strategy * Marketing channel issues are amongst the most important decisions that  management faces. To what extent do you agree with this statement? * Why might a supply channel become disintermediated? 8) Promotions Strategy, Marketing Communications * Advertising is the most obvious form of promotion. Using examples, describe at least three other forms of promotional activity. * Identify and discuss the key strategic actions marketers must take to ensure Integrated Marketing Communications are successful. * Different advertising campaigns can have different objectives. With reference to recent examples, list and discuss four different types of objective. * There are five main promotional tools. Define each and use examples to illustrate their potential usefulness. 9) Services Marketing * Using strategic marketing theories and concepts, state whether you agree or disagree with the following statement: â€Å"Creating marketing strategies for services is no different to the marketing of goods†. * Discuss the extended marketing mix used for services. Why are these useful, given the characteristics of services? Below are listed the exam questions and outline answers for a previous January examination and Resit. The outline answers are produced so that the external examiner and markers have a good idea about what the answer should contain. However, to achieve top marks (70+) you would need to include these points in a coherent argument, aided by relevant examples and context. Resit 2012 1) What are the four distinguishing characteristics of services marketing? What challenges do these present to the formulation of marketing strategy and implementation? Answers should define what is meant by a service: a provider/client interaction that creates and captures value. Definitions such as â€Å"Deeds, processes, performances† (Zeithaml Bitner, 1996); â€Å"An activity or series of activities†¦ provided as solution to customer problems†(Gronroos, 2000); may be used. The four distinguishing characteristics of services marketing will be defined as: Intangible (as opposed to tangible goods): The implication of this is that services cannot be inventoried, or easily patented. They may therefore be easier to copy, and gaining real competitive advantage may be more difficult. Services cannot be readily displayed or communicated- this raises issues in terms of the promotional strategy and message designs that can be used. Airlines may emphasise the relaxation of being on board as the actual process of travel is more difficult to represent, and might be more problematic when communicating the company’s positioning strategy. Intangibility also makes pricing more difficult. With goods, a differentiation focus and premium pricing strategy may be clearly identified by the consumer through the tangible attributes of the products and the difference in quality. The quality of a set of accounts, or a medical procedure may be less tangible, and therefore high prices may need to be supported by other aspects of the strategy and marketing management process. The extended marketing mix, such as physical evidence may be helped to signal quality to consumers. Heterogeneous (as opposed to standardized): Service delivery and customer satisfaction depend on employee and customer actions. Therefore plans for marketing strategy and implementation cannot be guaranteed in the same way as for products. Service quality depends on many uncontrollable factors. There is no sure knowledge that the service delivered matches what was planned and promoted. The extended marketing mix, particularly the planning  of the ‘process’ may be to alleviate problems of standardization. Some companies such as McDonalds have tried to implement a standardized service experience. This may only be appropriate for some sectors however. For luxury services or professional services, the heterogeneous and client-specific exchange may be part of the value of the service. Companies will need to carefully monitor and control implementation. Simultaneous production and consumption – customers participate in and affect the transaction, and each other. Employees also affect the service outcome. Decentralisation may be essential. Mass production is difficult. Because services depend critically on the co-production relationship, it is very important that the service contract spell out mutual responsibilities and expectations. A significant percentage of service engagements (estimates range from 10-50 percent) do not meet the clients or providers expectations, resulting in poor performance and low satisfaction, and, therefore, in less value created and captured than anticipated. This gap is an opportunity for services innovation that will improve returns, performance and satisfaction. The training and management of people, another aspect of the extended marketing mix, may help the control and implementation of strategy in this respect. Perishability (as opposed to non-perishable)- It’s difficult to synchronise supply and demand. For many services, demand may be affected by geographical location, seasons, timing etc. Marketing management has to try to balance supply and demand, for example through pricing strategies- bundling return journeys or making seasonal promotions to stimulate demand off-peak. In this sense, segmentation, targeting and positioning is of key importance- identifying the value sought by different consumers and managing the marketing mix accordingly. Services cannot be resold or returned, therefore pricing and promotional tactics may be to sell services at cost alone, for example last minute hotel bookings and flights. Considering overheads are fixed, it is better to have costs covered than an empty seat or hotel room. However, these tactics may not integrate effectively with the company’s generic strategy. 2) What marketing strategies and marketing mix decisions are associated with the different phases of the product life cycle? Discuss how the product life cycle can help companies to plan its product portfolio. The concept of the plc should be introduced and how marketers use it to make strategic planning and marketing mix decisions. The four phases should be identified as: Introduction: Characterised by low sales and high cost per customer. There are ways which marketers categorise consumer’s willingness to adopt new products, such as Rogers (1983) seminal work on the adoption of innovation. At this phase the segments which should be indentified and targeted are innovators, who are risk takers and open to new ideas. A similar adoption model is proposed by Moore (1999). His chasm strategy would argue that the early phases should involve techies, to iron out bugs. There are few competitors at this stage, and therefore some advantages may be found in being first to market. Consumers may be willing to pay a premium price for products at the introduction stage, and therefore a market skimming strategy may be adopted. Alternatively depending on product type, a cost-plus or penetration strategy may be appropriate. Promotional strategy will have the objective of raising awareness. Heavy sales promotion may also be used. Distribution is likely to be selective at this phase. Growth: This phase is charaterised by rapidly rising sales, lower average cost per customer, and rising profits. At this phase early adopters will consider purchase. They should be targeted by companies as they tend to be respected opinion leaders in the product field will promote wider adoption through word of mouth. Moore’s (1999) model would propose that visionaries should be targeted to help find competitive advantage and to establish the basis of the appeal for the pragmatists. There will be a growing number of competitors at this phase so marketing management and strategy is likely to reflect this. Extensions, warranty, and service may become more important add-ons to secure competitive advantage. Pricing may be competitor-orientated or for penetration. Efforts should be made to build intensive distribution to try to remain market leader. Promotional efforts will continue to build awareness but in the mass market, rather than targeted at a niche. Maturity: This phase is characterised by peak sales, low cost per customer and high profits. Purchasers will be the early/late majority (or the pragmatists and conservatives). Competition is likely to have stabilized as weaker products are forced out of the market. Strategies at this stage might involve diversifying brands (brand leverage, brand extension) and product line changes (widening, filling, stretching). Prices will most likely be lowered at this stage, possibly to match or beat competitors. Sales promotion may become more prevalent. Generally promotional strategy will be to stress brand differences and encourage brand loyalty. Advertising will try to remind and reinforce the brand. Decline: This phase is characterised by declining sales, and declining profits. Laggards or the skeptics will buy the product now cost and risk is low and most other people have purchased the product. Competition will reduce as company’s divest products in a declining market with declining sales. Strategies at this phase may be to phase out weak items. Prices may be cut. All aspects of the marketing mix might be cut back to reduce costs with efforts made at the level to retain loyalists. The PLC can be used in planning a company’s product portfolio. The ideal is to have products at different phases of the life cycle so that products at the maturity phase can provide profits for investment in the mix for products at the introduction and growth phases. Portfolio planning models like the BCG matrix allow firms to address this, and to make sure they are channelling their efforts into products which have potential for growth (stars and question marks) or profit generation (cash cows). Portfolio planning will also be about phasing out products which do not have a future (dogs). Best answers will emphasise the limitations of the plc model (linearity, not all products ever do into decline). 3) Discuss the main areas an advertising company will consider when given a creative brief. Using examples, explain why a celebrity may be chosen as a  message source. What factors determine the success of a celebrity endorsement? Answers should outline the following areas for a creative brief: Positioning statement- what is the overall positioning of the brand. What are the key brand benefits and brand promise. It could be based on: Features: how the brand delivers its promise; Values and personality: what the brand stands for and signifies, which affects relationship and loyalty; or Key reward: may be based on one of these features, safety, classy personality etc. Proposition: spells out what you want to say: big ideas, strategically central. Potential sources of a proposition are: user characteristics, price, brand image, product service heritage, ways of using the product, comparison with rivals, surprising points etc. What are the specific objectives for the campaign- may be to inform, persuade, remind or reinforce. This should help formulate specific, measurable, achievable, realistic and targeted/timed objectives. Objectives may be to move buyers through readiness stages. Models such as AIDA and Dagmar may be mentioned. Target market- what segments are being targeted. This will impact greatly on the message strategy, creative considerations and media choice. Communication is a transactional process whereby meaning is exchanged through the intentional use of symbols. The firm must encode- reduce the concepts to a set of symbols which the recipient will decode. There must be a shared view of what the symbols mean, a shared field of experience. This will be determined by the target market as well. Message strategy: appeals, themes or ideas that tie into the brand positioning and establish points of parity or points of difference. Rewards may be intrinsic e.g. quality or extrinsic e.g. traditional. Buyers expect one or more of the following rewards: rational, sensory, social or ego  satisfaction Creative structure- how should we express our message: informational (rational, logical, product demo, comparison, testimonials); transformational (non-product related benefit or image, stir up emotions, negative: fear, guilt, shame, positive: humour, love, pride and joy, often use borrowed interest devices- music, provocative images, cute animals etc.). Media choice- Where is the communication(s) going to appear? Media classes (media types such as PR, press, TV- does it reach the chosen audience?); Media vehicles (choice within the chosen class such as the Times or the Sun). How frequently? What impact? What exposure? (Burst- concentrated, Continuity, Pulsing etc.). How much is to be spent? Budget and control measures. Message source- who should express the message? Credibility, celebrity endorsement, modelling. Celebrity endorsement: used extensively. The product or service is given credibility through association with someone the audience trust or aspire to be like. Success depends on having a believable link between the meanings associated with the celebrity and the product; Class, status, gender, age, personality and lifestyle are all part of what the celebrity transfers to the product. Likeability also important; Celebrity credibility is comprised of attractiveness, trustworthiness and expertise. The various endorsements of a celebrity such as Tiger Woods may be used to discuss the effectiveness of this method. 4) Using the purchase of a particular product as an example, describe the decision process model of consumer behaviour. What are the short comings of the model in understanding this purchase? The answer to this question will largely depend on whether the student decides to focus on a high involvement purchase such as a car, or a low involvement purchase such as a can of soft drink. All answer will identify  the 5 stages of the decision process model of consumer behaviour: Problem recognition: consumer’s either recognise a problem or have a need triggered by internal or external stimuli. If the stimulus is internal for example hunger, it may rise to threshold level and become a drive. A need can be aroused by an external stimulus such as seeing a neighbour’s new car may trigger thoughts about buying one yourself. Information search: Sources of information may be personal, commercial, public or experiential. Of the total set of brands available, the consumer will only be aware of a subset called the awareness set. Some brands will meet the initial buying criteria and become part of the consideration set. As the consumer searches for further information, a few brands will form the choice set from which the final choice will be made. The awareness set will depend on whether companies have got themselves noticed. Consumers will then have positioned these according to a hierarchy of attributes- type/price/brand dominant. The car purchaser may decide on brands in the consideration set: audi/BMW/Mercedes. The drink purchaser may decide on type, cola with the options of Pepsi, Coca Cola and Supermarket own-brand. Evaluation- will depend on the need the consumer is satisfying; the benefits they are seeking; and the bundle of attributes that will satisfy this need. Attributes that deliver sought after benefits will vary: for the soft drink it may be taste, price, packaging, for the car it may be safety, performance, price. Expectancy value model assumes consumers arrive at decision about brands through an attribute evaluation procedure, combining brand beliefs, the positives and the negatives according to importance. Decision- the consumer makes the choice of their preferred brand and also decisions about quantity, timing and payment method. The car purchaser may have decided on a BMW but there was a waiting time and no interest-free finance so actually decided on an Audi. The soft drink purchaser discovered Pepsi had a trial price and opted for that. Post purchase behaviour- consumer’s often feel dissonance that stems from noticing disquieting features or hearing unfavourable things about the brand and will be alert to information that supports the purchase decision. No single process is used by all consumers, or by one consumer in all buying  situations. There are several processes which are not necessarily made on the basis of such conscious and rational judgements. Non-compensatory models of decision making using heuristics may be used, depending on brand knowledge, differences among brands and the social context. In reality, the soft drink purchaser is very likely just to choose the Cola brand they have previous experience of, or the one all their friends drink. The elaboration likelihood model would suggest consumers may take a peripheral route for this type of purchase, as they are unlikely to have the motivation for a diligent rational evaluation of alternatives. The consumer could just go straight from problem to decision, or certainly skip stages. This model also ignores other consumer psychology such as variety seeking, which happens in low involvement but significant brand difference sectors. Therefore consumers try Cherry Coke, Coke with Lime etc. purely for variety. A car on the other hand would demand the central route. Perceived risk will vary with the amount of money at stake, the amount of attribute uncertainty and the consumer’s self-confidence. For the purchase of a car, there could be functional, physical, financial, social, psychological and time risk. This uncertainty may lead the customer to postpone the decision, as might unanticipated situational factors, both of which are not included in the decision model. High involvement decisions are more likely to proceed down this central route for purchases that are financially involving, technically complex or have social implications (examples might be cars, mobiles). 5) What are the three key stages of the strategic marketing management process? Explain what activities are undertaken at each stage of the process and why this is so critical to a firm’s long term competitive advantage. Strategic analysis- where are we now? This is concerned with understanding the strategic position of the organisation in terms of its external environment, internal resources and competencies and the expectations and influences of stakeholders. Strategy is the development of long-range plans for the effective management of environmental opportunities and threats  while taking into account the organisation’s strengths and weaknesses. At this stage firms will collect and analyse relevant types of information about environmental forces and trends. This will be on two levels: the macro- for which a PEST analysis may be performed; and the micro- for which the Five Forces model for industry analysis may be used, in addition to analysing other relevant factors such as consumer behaviour and perceptive competitor analysis. The other environment is the internal environment in which a firm will identify its assets, resources and their application to determine where strengths and weaknesses may exist. Models such as a resource audit or value chain are used to collect this information. All relevant environmental analysis is then compiled into SWOT from which the organisation will determine where its future strategy should lie given the major factors and trends identified. This stage is crucial for competitive advantage as market information and intelligence is essential for developing a successful marketing strategy based on and for creating and sustaining competitive advantage is today’s rapidly changing environment. Strategic choice- where do we want to be? This involves understanding the underlying bases guiding future strategy, and generating strategic options for evaluation and selecting from among them. Strategy is decided upon in terms of objectives, financial decisions, segmentation, and positioning. These are the crucial and central decisions in developing a competitive marketing strategy. Based on the SWOT, strategic alternatives may be suggested and a decision needs to be made at corporate and SBU levels. Deciding the the mission and directional strategy and allocating resources will be decided at a corporate level. Portfolio planning models such as the BCG matrix may be used. At the SBU level, a generic strategic orientation (cost leadership, differentiation, focus) will be chosen based on unique competitive advantages. At the functional level, strategists consider decision such as what products to offer. Ansoff’s matrix may be used a tool to choose between the four possible options available to any organisation with regard to product/market strategy. Market segments to target and market position strategy are also decided at this stage, as well as competitive positioning and relationship strategies. Segmentation, targeting and positioning are the cornerstone of marketing strategy and key in developing  a distinctive position in the consumer’s mind, developing brand loyalty and therefore building long term consumer franchise that will help the company defend itself from competitive threats. Strategic implementation- how are we going to get there? This is the translation of strategy into organisational action through organisational structure and design, resource planning, and the management of strategic change. This involves the strategic, rather than tactical planning of product innovation, branding, services, pricing and distribution, marketing communications and emarketing. Some responses may also identify a fourth stage- strategic monitoring and control- did we get there? The importance of monitoring and control in strategic planning. 6) Identify what is meant by Value Chain Analysis. Why would a firm decide to use this analytical tool? Framework developed by Porter (1985) as a way of examining the nature and extent, if any, among the internal activities of a firm. Porter argues every firm is a collection of activities that are performed to design, produce, promote, deliver and support its product. All these activities can be represented in five primary activities and four support activities using a value chain concept. The primary activities of the value chain are inbound logistics, operations, outbound logistics, marketing and sales and services. Support activities are firm infrastructure, human resource management, technology development and procurement. Value chain analysis has been widely used by firms as a means of analysing the internal activities of an organisation. One of the key benefits is the recognition that organisations are much more than a random collection of machines, money and people because these resources have no value unless they are deployed in activities and organised into systems which ensure products and services are produced and valued by the end customer. Firms which produce several products may evaluate several value chains. Examining each  chain and the linkages may allow firms to examine the potential synergies between the value chains of different products. Internal analysis provides a detailed understanding of those aspects of an organisation that are of strategic importance. It is often the way a firm’s assets and resources are applied that explain differences in performance among companies, rather than industry structure. It has been argued that the significance of the external environment has been over emphasised and a more appropriate focus for strategy is the organisation’s resource base. The key idea is that the value chain is a systematic way of examining all the activities a firm performs and how they interact to differentiate a firm’s value chain from its competitors value chains. This differentiation is recognised as a key source of competitive advantage. A firm is therefore likely to use this tool when undertaking a strategic analysis. It will analyse the various activities and determine where its strengths and weaknesses lie. For example high levels of absenteeism and ineffective warehouse automation may be identified as weaknesses. Strong research and development and salesforce results might be strengths. The company will then decide whether to match their strengths or to convert or nullify their weaknesses. The value chain would be used when determining a strategic capability profile or using a SWOT analysis. Answers may explore the alternative forms of internal analysis, such as the resource-based approach, performance analysis approach and functional analysis approach, commenting on potential strengths and weaknesses of these analytical tools. Like any strategic environmental analysis, internal analysis must be rigorously performed and undertaken at regular intervals to monitor and evaluate strategies and changes. Answers may also critique the fact that value creation does not only occur in the organisation but also in the supply and distribution channels. For example the quality of a car is influenced not only by the activities within the firm but by the quality of spare parts, components and the performance of distributors. January 2011 1) Discuss the factors that influence a companys choice of promotional mix. (50%) Name and describe the scope and characteristics of various promotional tools. (50%) The main 5 factors that influence the choice of the marketing mix are: 1) Resource availability and cost of promotional tools 2) Market size and concentration 3) Customer information needs 4) Product characteristics 5) Distribution push versus consumer pull strategies Other relevant points are that: decisions must not be made in isolation from the rest of the marketing mix- must be aligned; marketers need to make the correct choice of the promotional blend to communicate to the target audience; Marketers weigh strengths and weaknesses of tools against promotional objectives Advertising is defined as â€Å"Paid for communication by an identified sponsor with the aim of influencing and informing one or more people†. It is mainly used in the long term and is useful for raising awareness or influencing consumer’s attitudes about brands. Advantages are that it can communicate amplified and expressive messages through the use of sight, sound, music, experience etc. Disadvantages are that is is one directional, impersonal, expensive and can be seen as pervasive. Direct marketing is defined as â€Å"The recording, analysis and tracking of customers’ direct responses in order to develop loyalty†. It is used in the long term and short term. It is mostly used for retention but can also be used for acquisition of new customers. With improvements in databases, direct marketing can increasingly be customised and up to date. It is also interactive i.e. generates responses from customers and builds relationships. Disadvantages can be cost, and that telemarketing and direct  mail etc. are often seen as a nuisance by consumers. Public Relations is defined as the â€Å"Formulation, execution and sustained effort to establish and maintain goodwill and mutual understanding and reciprocal goodwill between an organisation and its stakeholders†. It is used in the short and long term and is particularly useful for building reputation. It has the advantages of low media costs, credibility, visibility, and dramatisation- can catch consumers off guard. Major disadvantage is that it is difficult to control. Sales promotion is â€Å"An incentive for the customer, salesforce or distributor to make an immediate purchase†. It is mainly used in the short term. When used strategically, it can be useful for encouraging trial, re-trial, extended trial, building databases and getting rid of old stock. From a trade perspective it can be useful for increasing distribution, increasing inventory, and improving shelving space/position. Disadvantages are that it does not build brand loyalty and is mainly tactical in its horizons. 2) Explain the concept and purpose of analysing industry competition using Porter’s Five Forces model. Use illustrative examples to support your answer. The reason the Five Forces are important is that whilst industry structure has a strong influence in determining the competitive rules of the game as well as the strategies potentially available to the firm. Forces outside the firm are significant primarily in a relative sense; since outside forces usually affect all firms in the industry, the key is found in the differing ability of the firms to deal with them. The purpose of analysing industry competition is that it: Determines sectoral structural attractiveness Collective strength determines the ultimate profit potential of the industry and the ability of firms to earn rates of ROI in excess of the cost of capital Links with strategy development- goal of business is to find a position in the industry where it can defend itself Strategists should evaluate and rate these forces (high/medium/low threat or power) Accounts  for most of the micro-environment by acknowledging that competitive structure is not just determined by direct industry competitors Answers may outline the different Forces and raise some or all of the following points: Rivalry determinants: Industry growth; exit barriers; brand identity; switching costs; concentration; corporate stakes; diversity of competitors; informational complexity; intermittent overcapacity; fixed costs/value added; product/service differences Buyer power : Bargaining leverage e.g. Buyer information, Buyer switching costs Buyer volume Price sensitivity Brand identity, Product/service differences, Impact on quality performance Supplier power e.g. Switching costs; substitute inputs; impact of inputs on differentation; threat of forward integration; importance of volume to supplier Substitute threats e.g. Relative price performance of substitutes; switching costs; buyer propensity to substitute Entry Barriers e.g. Economies of scale; brand identity; switching costs; capital requirements; access to distribution; expected retaliation 3) Discuss the role that segmentation, targeting and positioning each play in developing a successful marketing strategy including managing the marketing mix. STP is central to development a marketing strategy. The marketing concept assumes different preferences amongst consumers, and STP is how consumers are grouped into clusters with similar characteristics or needs, so that products and services can be targeted to satisfy them. Segmentation is dividing a market into distinct groups of buyers with different needs, characteristics or behaviours, who might require separate products or marketing mixes. The reason companies use STP is that: * It is profitable business. * May discover unfulfilled consumer needs. * Strengthens management capabilities. * Allocates marketing resources. * Sets market objectives. There are 6 stages to STP, which are: When considering which segments to target, marketers consider a mixture of managerial concerns and customer needs which include: * Is servicing the segment consistent with corporate goals? * What is the strength of competition targeting the segment? * Is it desirable in terms of size, future growth and saturation? * Selecting segments whose needs match the companies ability to deliver. * Profitability and strategic fit- SWOT * Ultimately the decision is conceptual- who we are as a company, and where we want to be The strategic role that STP plays is in allocating resources to the potentially most profitable segment of the market. Product lines are then designed to match demand in the market place or match resources. STP means companies can catch the first sign of change to give time to prepare and take advantage of it, and consider best competitive position to adopt for each segment. With marketing management STP allows firms to determine the right style of comms campaign; choose the most cost effective advertising media; apply demographic data effectively; price for maximum effectiveness; and develop the right channel strategy. Ultimately STP results in positioning which is possibly the most important aspect of marketing- it results in changing and forming perceptions about brands, creating brand identity and is about designing, communicating and delivering value (crafting the marketing mix to the needs of the target market is the foundation upon which customer relationships and brands are built). A  product’s position is the way the product is defined by consumers on important attributes, it is the place the product occupies in the consumer’s mind relative to competing products. Positioning is based on unique selling proposition (USP) (what is unique/what are you selling); a Brand’s competitive advantage- with whom are you competing and how are you better? And who will use the product? 4) What personal, social and cultural factors influence buyer behaviour? (50%) Choose an example of a high involvement purchase, such as a car, and describe how these factors influence the consumer’s choice.(50%) Cultural Influences have the broadest and deepest influence. Culture is the fundamental determinant of a person’s wants and behaviors acquired through socialization processes with family and other key institutions. Your values are formed on achievement and success, individuality, freedom, humanitarianism etc. (or Hofstede’s model). Subcultures- more specific identification and socialisation for members on the basis of nationalities, religion, geographical location, political perspectives. Social classes: show distinct preferences in terms of product choice, brands, media choice and languages. Social influences. Relevant factors include: Reference groups: have a direct or indirect effect on attitudes or behaviours; consist of primary and secondary; aspirational and dissociative; they introduce ideas and behaviours, influence attitudes and self concept; they create pressures for conformity which may affect brand choice. Opinion formers (e.g. designers), opinion leaders (offers information and usage advice), confident social and involved with category; and opinion followers. Companies try to reach leaders to disseminate messages. Family- the most important consumer buying organisation and the primary reference group, different priorities and decision-making influences. Personal Influences: Relevant factors include: Age and stage in life cycle- family/ psychological/ transitions. Occupation and economic circumstances- occupation may affect products and services required and what you can  afford. Personality: a set of distinguishing human psychological traits that lead to relatively consistent and enduring responses to environmental stimuli. Often consumers try to buy brands that reflect their own personality (Aaker’s brand personality typologies: sincerity/ excitement/ competence/ sophistication/ ruggedness). Self-concept: actual/ ideal/ others’ self-concept/ multiple selves. Lifestyle: pattern of living as expressed in activities, interests and opinions and values; influences such as time constrained, multi-tasking. Core values: the belief systems that underlie attitudes and behaviours. 5) Discuss THREE different approaches to pricing, outlining the advantages and disadvantages of each approach. The three approaches are: Cost-based pricing : strong internal orientation and based on costs Competitor-orientated pricing : major emphasis on levels set by competitors Market-led pricing: focuses on the value that customers place on a product in the market place and the nature of the marketing strategy used to support the product. Cost-based pricing involves setting prices based on the costs of producing, distributing and selling the product plus a fair rate of return for the company’s effort and risk. Methods include: Cost-plus pricing- simplest method of pricing- involves adding a standard mark-up to the product; break-even- what’s the minimum price we can charge to match the cost of making and marketing a product (BE= (fixed costs)/[(price-variable costs)]. Marginal cost- setting prices below full cost. Often used by service companies like hotels and airlines to make a contribution to direct costs. More complicated for services- variable costs move faster with an increase in demand. Advantages: simple; ensure you stay in business by setting minimum floor on pricing; and helps to set objectives in terms of the minimum number of units that need to be sold Disadvantages: In reality many business use cost-based approaches but they can have huge disadvantages: illogical: raised prices when sales fall; sales estimates are made before a price is set; ignores elasticity of demand; ignores competitor’s pricing; no incentive to reduce costs; ignore the impact of consumer perception and psychology; estimates overheads against individual products in an arbitrary way Competitor-based pricing- Can take three forms: 1) Firms follow the prices set by leading competitors Benchmark then set either above, below or the same as competitor Popular in financial services Can be risky, especially if cost position is not as good as a competitor Could start price war 2) Going Rate- all competitors receive the same because it is the going rate Undifferentiated commodities like coffee beans Challenge for marketer is to find creative ways of differentiating to charge higher price e.g. fair trade coffee beans, premium quality coffee beans 3) Competitive bidding process- contract goes out to tender sealed bids or competitive auction usually lowest price accepted increasing price pressures, European competition legislation and growing use of technology has increased the use of competitive bidding Very common in government and public sector markets Market-led pricing- favourable as it takes into account value rather than price. Main methods: 1) Trade-off analysis- also known as conjoint analysis, determines the trade-off between price and other features different combinations of variables such as brand, packaging, product features and price are tested can measure the impact on preferences of increasing price and determine the price level customers are willing to pay 2) Experimentation- places products on sale in various locations at different prices 3) Economic Value to the Customer (EVC) reducing costs and increasing revenue are primary concerns of companies Therefore in industrial markets, EVC is calculated- can charge more for a product if it will help your customer increase their revenue more than the competition e.g. new technology. Market led pricing is favourable as it takes into account the psychology of  prices and not simply economics; the price is used to say something about the product, and other factors such as stage in the product life cycle. Price often indicates quality especially in services. However, organisational considerations such as costs and the nature and structure of competition must also be considered. 6) Outline how you would construct a SWOT analysis. (50%) Explain the purpose of a SWOT analysis in the marketing planning process. (50) Answers should explain how the marketing environment is analysed- Macro environmental analysis conducing a PESTEL analysis, Micro-environment- examining Five Forces and other factors such as consumer behaviour. These result in identifying opportunities and threats. An internal analysis using e.g. value chain, identifies an organisations strengths and weaknesses. The purpose of conducting a SWOT is to identify strategic choices available to a company. It’s the internal communication of external information about emerging issues, situations and potential threats that potentially influence an organisation’s decision making (Albright 2004). SWOT is essential for firms growing in size and complexity and is an important component of a company’s approach to developing a market orientation. Market orientated companies are more profitable. SWOT is essential in markets where the pace of change and uncertainty is increasingly high- companies need to take a proactive direction. It identifies fads, trends, and megatrends. Scanning customer trends helps you create, communicate and deliver value and beat the competition. SWOT/TOWS is the basis for making strategic decisions about growth, what products, what markets, and whether to convert weaknesses or capitalise on strengths etc. Decisions are then made about STP and how the marketing mix will be managed in order to achieve marketing objectives. SWOT is the result of the strategic analysis which is followed by strategic choice, strategic implementation, and strategic control.