Thursday, September 26, 2019
Bipolar Affective Disorder Essay Example | Topics and Well Written Essays - 3000 words
Bipolar Affective Disorder - Essay Example The condition could be observed in teen age, adolescence or early adulthood. In many cases the symptom onsets before the age of 25 years (Kessler et al, 2005), but it remains undiagnosed till the problem takes the form of disorder. Management of the condition is crucial and is a long-term process where co-operation of the associated individuals play a significant role. Symptoms of Bipolar Disorder Individuals suffering from bipolar disorder display severe emotional condition which is termed as "mood episodes", encompassing either too thrilled or overjoyed which is called the maniac episode; or the individuals remain in the phase of discouraging thoughts or gloom this phase is termed as the depressive episode. Individuals also witness a mixed stage where phase of mania as well as depression co-exist. Individuals with bipolar disorder may become bad-tempered or dangerous during their mood episode. These symptoms directly influence daily activities such as the energy levels, behaviour o f the person, trouble in proper sleep, restlessness. With time the condition becomes severe and the person have longer duration of unbalanced frame of mind as compared to the distinct phases of depression or mania (Web. Bipolar Disorder). Individuals displaying terrible phases of mood swing and almost every day or remain in such altered mindset for two to three weeks is likely to suffer with bipolar disorder. The symptoms can be categorized as- A. Manic episode or mania encompasses- a. mood swing- this is the extreme phase where the individual is either over joyful, in very high spirit or display very extrovert nature. On the other hand, this phase also displays other aspect where the individual remain ill-tempered, disconcerted, jumpy feeling may also be seen (Web. Bipolar Disorder). b. behaviour alterations- the individual gets diverted without difficulty, can jump from one thought to another or many thoughts could be presented simultaneously. The individual starts taking at a fas ter pace, restlessness is also displayed during this phase and the individual may not sleep appropriately. During this phase some sort of hyperactivity is also observed where the individual may show over enthusiasm in taking new assignments and jobs due to impractical conviction in one's skills. This phase also display unusual behaviour such as participating in high-risk task, may show extravagance temperament, getting diverted towards pleasurable things and perform impetuous investments (Web. Bipolar Disorder). B. Depressive episode of depression encompasses a. mood swing- during this phase the individual has the feeling of being empty and remains depressed. The individual do not show any interest in activities which were once providing pleasure (Web. Bipolar Disorder). b. behaviour alterations- the normal pace of work becomes slow, the individual is not able to concentrate on things and a habit of forgetfulness could be observed. Individuals during this phase may face difficulty i n remembering and recollecting from the memory and therefore finds intricacy in taking any decision rather they remain restless and irritable. Changes could also be observed in eating as well as sleeping habits. Suicidal thoughts often ponder in mind and in severe condition a person may attempt to commit suicide (Web. Bipolar Disorder). Bipolar disorder constitute two phases or poles, BPI, or classic manic-depression. BPII is considered to be placid disorder with alternating phases
Wednesday, September 25, 2019
Sport Organization Communications Proposal Term Paper
Sport Organization Communications Proposal - Term Paper Example The term communication now covers all the latter-day additions to the primitive trench or passageway: telegraph, telephone, radio, television and computer. The distinguishing feature of all these modern inventions is that they enable rapid communication between persons widely separated thus giving them the group name ââ¬Ëtelecommunicationsââ¬â¢ with ââ¬Ëteleââ¬â¢ stemming from the Greek word far ââ¬Ëfar off.ââ¬â¢ In broad terms, communication means that which is shared, the ââ¬Ëcommonsââ¬â¢ as the English language flowered, communication stood for the action of sharing in the mental or non-material realm, especially in and through the use of words. Anything that links two or more persons or places has come to be communication as it has come to include the means as well as the primary activity itself, (Adair, 2009) Communication skills are essential in leading, managing and working others. Understanding the nature of communication is the foundation of effective communication and hence the skills required include speaking, listening, writing and reading. For effective communication, every individual needs a good grounding and ability in these skills, so it is a matter of sharpening and honing them in the context of the daily working life. The aspiration to lead or manage others need competency in these skills as communication is a brother and sister of leadership. Principles of good speaking, which are the same as the general principles of communication are being simple, prepared, clear, vivid and natural. These principles need to be tied firmly on the communication mast as they can be applied in every form of communication. According to Adair (2009), communication usually implies both intension and means and in a sharper focus can be said that it is essentially the ability of one person to make contact with another to make himself or herself understood. It can also be the process by which meanings are exchanged between
Tuesday, September 24, 2019
Disaster Plan Assignment Research Paper Example | Topics and Well Written Essays - 1000 words
Disaster Plan Assignment - Research Paper Example The stress test examines the stability of the system on while handling many simultaneous functions and processes. Stress testing is far beyond normal operations as it can be categorized in to application stress testing and hardware stress testing. The strict security measures, both in terms of physical and software security. Biometric identification system and encryption techniques can be implemented to minimize database security. Moreover, the third step would be to replicate the core services that are running on a specific server or workstation. This will facilitate the employees to entertain the patients, whenever a primary server goes down. Plans and Changes In order to minimize system failure for future, risk analysis is required that will identify all the critical systems on the network. It will also demonstrate the factors that may disrupt the critical system on the network. Moreover, it also includes the implementation of adequate controls in order to prevent system failures. Daily backups are required on daily basis and a mechanism is required that will check the integrity of the backup at the same time, if the backup is corrupt, new backup can be requested at the same time. It is essential to prevent the backup database also by applying adequate security measures, as database contents are highly classified. In case of a natural disaster, data must be relocated on a separate data center situated far away geographically. Furthermore, to eliminate power issues, ââ¬ËPoEââ¬â¢ can be implemented to minimize electric outage as it contains its own separate electric channel for the workstation and network devices. Root Cause Analysis The major impact that contributed to the system failure problem is the instability of Tech Med system as well as the application that creates database backup. However, primary source of power was restored instantly and replaced by the secondary link. The impact of Tech Med system resulted in halting all the operations associ ated with Jones Regional Medical Center (JRMC). Moreover, the impact of corrupt database backup resulted in a major halt in system operations of the medical center. Manual entries were conducted, as full database recovery is required from journal articles to transactions. Likewise, when the system is not operational, the staff at the medical center has noted all the operational processes manually so that they can be entered, when the system becomes operational. Disaster Recovery Plan The disaster recovery plan covering all the issues and counter measures is demonstrated below (Sandhu, 2002): Threats Counter Measures Power Failure Alternate power distribution link Database Failure Backing up data on 3 different locations at the same time by disk mirroring, ciphering, DLT or manual backup on daily basis. System Failure Alternate system to replace the affected system Theft Lock Cabinets IP cameras, biometric fingerprint identification, Vandalism Hard steel box for Servers and Databases Flood Relocating or replicating the network room Create a duplicate or replica of crucial data servers that are geographically located away Fire water sprinklers, Fire extinguishers Earthquake Relocating data with data centers that are geographically located away Determining the Amount The initial step is to identity the information assets on the network along with the services associated with it. The next
Monday, September 23, 2019
Improving Web Security Essay Example | Topics and Well Written Essays - 750 words
Improving Web Security - Essay Example The security of passwords was not of as much worth decades ago as it is today and this is not the sole responsibility of the institutions/bodies that offer email or banking services etc. One must consider taking multiple measures in order to increase the strength of passwords and tighten the security. It is necessary to have the understanding of how the passwords are compromised despite high security algorithms deployed by respective institutions. The easiest way of tracing the passwords of people is to introduce agent software i.e. a spyware into their computer systems to monitor, record and transmit the details of each and every activity people perform including password entries at different sites. This happens through emails, chats and downloading form unauthentic websites like pornographic sites etc. A good internet security firewall installation can handle this situation quite effectively but the possibilities of breaches remain. One of the indications is that the computer syste m takes unusual time in processing usual transactions because of the added work that spywares perform. The other reasons of password compromise include the careless selection of passwords and their redundant usage at different forums to save the hassle of memorization. Sometimes it happens that the communication between the user and the respective body like bank is intercepted by introduction of a lookalike page instead. The users most of the times remain unable to figure out the differences in haste and deliver the actual information to the false page. Redundant passwords cause more damage as the leakage of just one, opens multiple personal horizons of a personââ¬â¢s life before the hackers and cyber criminals. IMPROVING CONTRIBUTIONS OF PASSWORD PROTECTION FOR INFORMAITON SECURITY The baseline of information security lies in the basic structure of the information system itself. The following steps, if taken for the better management of the system would be massive contributions to the improvement of password protection for information security. Information security is an iterative process. It is essential that this process must first be controlled; it should then be planned, implemented, evaluated and maintained. CONDUCTION OF RISK ANALYSIS The use of risk analysis identifies the security requirements of the IT Customers. IMPROVING MINIMUM SECIRUTY BASELINE The feasibility of the requirements assessed in the risk analysis should be compared with the current security assessment and implementation structure of the organization. CONSTRUCTION OF SLA. SLA or Service level agreement between the customers dealing with an organization and the IT management of the company is required to be made. This agreement defines the measurable terms of the information security requirements. It also contains details of the specification of this achievement. OLAs Operational Level Agreements provide the detailed instructions of the implementation of the information security Req uirements. These instructions are negotiated and defined. SLA AND OLA IMPLEMENTATION The successful implementation of the SLA and OLA are done. The regular outcomes of the implementation at every transaction done are monitored. Repots about their outcomes are shared with the customer. The feedback from the customers leads to modification of the implemented information secur
Sunday, September 22, 2019
Hurricane Sandy Essay Example for Free
Hurricane Sandy Essay 1, Background * The outline of hurricane Sandy Hurricane Sandy was formed on October 22 and dissipated on October 31. Its highest winds throughout all the date was 110mph (175km/h) and the lowest pressure was 940hPa. The number of fatalities was 253 in all, and all costs of damage, at least, have risen to $65.6 billion. Affected areas by this hurricane expanded to wide range. This is Hurricane Sandy when it was near peak intensity on October 25. Firstly what is the hurricane? It is an intense tropical depression with a very strong rainstorm. Hurricane has the other different names, typhoon and cyclone, but these donââ¬â¢t have any of differences in terms of their characters, and the difference is only where it takes place. A hurricane is classified to five levels according to Saffirââ¬âSimpson hurricane scale based on the maximum wind speed within one minute. According to the National Hurricane Center, its highest wind speed was 110mph, which mean Hurricane Sandy is classified to category 3. (More than Category 3 is distinguished as a record hurricane) Due to its climate, around the Southern Atlantic, there is likely to have a hurricane between June and November (especially between Aug and Oct), and U.S, as well as the West Indies countries has been suffered from its damage. From such a historical background, these countries have a strong feeling of prevention of damage by hurricanes. Particular in U.S, when hurricane Katrina strikes U.S, the government could not take adequate measure against a hurricane, and there was a great deal of damage. Since then, such a perception has been bigger and bigger among people. After the storm became a tropical cyclone on October 22, in case of Jamaica, the government called upon the all of citizens in the whole island to take precautions against the approaching tropical cyclone. 2, Cause To begin with, how was it formed and how did it progress? At the first time, it began with a low pressure which is classified as a tropical depression on October 22 South of Kingston, Jamaica, and this tropical depression was named Tropical Storm Sandy at the same date. Firstly, it moved slowly because of a peak of the high atmospheric pressure called ridge. However early on October 24, the eye of hurricane started developing, and it headed for northward with steadily speed affected by the atmospheric trough. After that, the NHC (National Hurricane Centre in U.S.A) upgraded it to hurricane status and as of 19; 00 in Greenwich Mean Time that day, Sandy finally arrived at Kingston, Jamaica. Then just after Sandy left from Cuba towards the northern sea, it rapidly intensified to winds of 110mph which is 175km/h although it had been 80mph (130km/h). After Sandy left Cuba, its structure became disorganised, and due to it, Sandy turned to the northwest over the Bahamas. By October 27, because of influence from an approaching trough, Sandy was no longer fully tropical depression. But after that, Sandy re-intensified into a hurricane from a tropical storm. Sandyââ¬â¢s second peak was on October 29, and it recorded 90mph (150km/h) and it had a wind diameter of over 1,000nautical miles (1,150 mi, 1850km). As of 2300 in Greenwich Mean Time on October 29, Sandy was not tropical, and an hour later, it made landfall on the south-west of Atlantic City with 90mph (150km/h) wind. On October 31, Hurricane Sandy finally dissipated over western Pennsylvania This map shows the route of Hurricane Sandy. Hurricane Sandyââ¬â¢s route was not usual as well. Most of tropical depression is likely to path into the sea in this season. However, in the case of hurricane Sandy, other high atmospheric pressure in the southern Greenland pushed it to side of inland. Now, why did it develop to one of the biggest hurricane on record? There has some of hypothesises, but most of experts say that there is a strong relationship between the global warming and its abnormal development. The sea surface temperature from Florida to Canada was 0,6ââÆ' before the global warming had been identified, however since it has come up to the surface, its temperature increased by 2,4 ââÆ'. As the condition when a hurricane is created, at least, it requires three conditions. First, the ocean water must be warm enough to put heat and moisture into the overlying atmosphere to provide the potential fuel for the thermodynamic engine that a hurricane becomes. Second, atmospheric moisture from sea water evaporation must combine with the heat and energy to form the powerful engine needed to propel a hurricane. Third, a wind pattern must be near the ocean surface to spirals air inward. In terms of hurricaneââ¬â¢s mechanism, it still has a lot of unsure parts but as of today, it is found that hurricaneââ¬â¢s initial energy source is the latent heat released by water vapor in the atmosphere on the tropical sea surface, which mean, as the temperature of surface of sea water increases, amount of vaporized water (primary energy source for a hurricane) also increases, and it is considered as the cause of Sandyââ¬â¢s unusual development. As I mentioned above, hurricane mechanism is still not made clear so it is not sure that whether or not only the global warming is the cause of occurring a massive scale of hurricane. 3, Impacts * Impacts on Jamaica. Jamaica is also one of the region were has suffered from terrible damage by a hurricane Sandy. When hurricane sandy made landfall over south eastern Jamaica, the hurricane was still classified as category 1 with winds of 129km/h, and torrential rain was also hitting the country. In addition, because of its strong winds, a lot of trees were fallen and these blocked several roads, which made many communities inaccessible. Electricity and domestic water supply system was cut too. As a result, any of lifelines were temporary not available. Not only public facilities but also a lot of houses were damaged by a strong wind (for example, the roofs were removed by the wind). In Portland and the area of Mount Pleasant 80% of roofs have been destroyed. Flooding also brought about in Pamphret and Port Maria and it made a lot of people evacuate to collective centers. Number of deaths was relatively less in spite of this scale of hurricane, but such an accident that one man was crushed by stones falling from a hillside and dead in a rural area near Kingston. The total cost of damage becomes $16.5 million throughout the country. * Impacts on Haiti Although Haiti was still recovering from 2010ââ¬â¢s earthquake damage, a massive hurricane hit there. As of October 29, estimated 200,000 people became homeless because of heavy raining which went on four days. Port-Salut, where was given one of the worst effects by it, was damaged by over floated rivers, in addition, nationââ¬â¢s capital street, Port-au-Prince were also flooded by the heavy rains. Moreover, ongoing cholera epidemic was also warned due to unsanitary situation brought by flooding. The storm also ruined most of crops and as a United Nation said, as many as 1 million people in Haiti would face to food shortage problem unless enough aids would come. * Impacts on U.S The damage brought about by hurricane Sandy in the whole U.S was one of the most severe throughout all of U.Sââ¬â¢s record. Eventually, the hurricane caused about ten billion dollar damage in the U.S. The total number of deaths raised to, at least, 131 in eight states and about 1000 houses were destroyed, so about millions of people left without electric service after the hurricane attacked. However, in comparison with Hurricane Katrina, total damage was considerably smaller. According to statistics, its differences are very clear. For example, in terms of the number of deaths, it was over 1000 in the case of Hurricane Katrina, but in this time, the total number was ten times smaller than before. The number of displaced was also ten times smaller although Sandyââ¬â¢s diameter was bigger than Katrina and its total amount of rainfall was almost no differences. So, U.Sââ¬â¢s countermeasure against hurricane has improved a lot compared with past examples. However, the other West Indians Countries are still developing countries regarding countermeasures. Bibliography http://www.nws.noaa.gov/os/hurricane/resources/TropicalCyclones11.pdf http://www.ifrc.org/docs/Appeals/12/MDRJM003EA.pdf http://www.huffingtonpost.com/2012/11/04/hurricane-sandy-vs-katrina-infographic_n_2072432.html http://www.skepticalscience.com/hurricane-sandy-global-warming.htm http://phillyecocity.com/act-philly/climate-act-philly/how-hurricane-sandy-is-related-to-climate-change/
Saturday, September 21, 2019
Media Giant Rupert Murdoch And His Empire Media Essay
Media Giant Rupert Murdoch And His Empire Media Essay As the new millennium dawned, global television tracked the rise of the sun across the world (Thussu, 2006, p. 1). The twenty-first century brought with it the opportunity for millions of people to be able to communicate internationally in different time zones (Thussu, 2006). In such a global village that we live in, competition plays a magnetic role for attracting media giants to be present across borders spreading like wild fire. An apparition now haunts the world: The birth of a mercantile media structure is globally dominated by a diminutive numeral of influential media giants, mostly U.S.-based transnational media corporations (TNMCs). This structure continuously strives to strengthen the foundation of the global market and works towards advancing commercial values, while negatively portrays journalism and culture. It is a disaster for anything but the most superficial notion of democracya democracy where, to paraphrase John Jays maxim, those who own the world ought to govern it. (McChesney, 1997). The development of this mercantile system is very recent. Previously in history i.e. 1980s, the structure was tilted towards national boundaries. Communication and media industries were locally regulated and owned while importing limited music, books, TV shows, and films for decades. The decade of the 1980s saw the worlds economy become more fully privatized. Current trends in privatization and free market economies have led to an international consolidation of media companies. The trend towards consolidation has begun to emerge worldwide (Gershon, 1997, p. 5).The pressure implanted by the IMF, World Bank, and U.S. government in the 1980s to deregulate and privatize media and communication systems which overlapped with the new digital and satellite technologies led to the consequences towards the growth of transnational media giants (McChesney, 1997). The Major US media giants which dominate numerous universal media and international media-related markets are Time Warner, Disney, News Corporation, Viacom, and NBC Universal among a few others. They are spread widely nationally and across national borders. All are based in the United States, the central nation, with broad semi peripheral and some peripheral market activities (McPhail, 2006). This paper will concentrate on the media giant Rupert Murdoch and his empire News Corporation, one of the main benefactors of privatization of infrastructure of global communication. It will briefly describe the history of the existence of the company whilst focusing on an analysis of the international expansion strategy that Murdoch adapted during his journey to acquire the world of media. While analysing different strategies; as well as geographic expansion, there will be an effort to decipher the relation of the tools of extension to the powerful existence of different theories which have played a vital role in the establishment of media structures. Historical Background of News Corporation Changes in technology have pushed the flow of transnational traffic in media products. This development has mainly benefitted media conglomerates like News Corporation which lead media content and delivery mechanism by owning numerous networks and production facilities. This commercial dominance has raised many concerns about cultural homogenization. However, an obvious effort has been noted towards regionalisation and localisation of content to match local and cultural precedence of viewers given the heterogeneity of the universal market (Thussu, 2007) The President and founder of the News Corporation Ltd, Keith Rupert Murdoch, is a legendary example of a tycoon from his era who contributed immensely in the 19th century towards the tradition of the great press barons (Gershon, 1997). Murdoch, in one of his speeches said that For better or for worse, our company (The News Corporation Ltd.) is a reflection of my thinking, my character, my values. Rupert Murdochs universal vision of a new communications atmosphere is made up of both a corporate strategy and a social vision. The companys existence can be traced to the year 1923, in Australia, when News limited was set up in Adelaide with the intention of circulating a daily newspaper. Rupert Murdochs father Sir Keith Murdoch invested in minority interest in News limited in the year of 1949. The company was then officially established in South Australia in 1979 (Gershon, 1997). News Corporation is an entertainment based transnational media company which diversifies within eight different media sectors including Newspapers, Book Publishing, Magazines and Inserts, Filmed Entertainment, Television, Direct Broadcast Satellite Television, Cable Network Programming and other. Geographically the activities of News Corporation are spread out primarily in the United Sates, the United Kingdom, Continental Europe, Australia, Asia and the Pacific Basin (News Corporation Press Releases, 2010). News Corporation is engaged in the United Kingdom, United States, Australia, and Ireland in the publishing business of magazines, newspapers through its variety of subsidiaries. The Company publishes English language books worldwide via its wholly owned subsidiary HarperCollins Publishers. Furthermore their subsidiaries allow them to be also involved in the enlargement, invention and allotment of network and television programming as well as broadcasting television stations. It also owns shares in BSkyB and V, and Sky Italia which are involved in the direct broadcast satellite (DBS) business. The company currently owns the entire FOX franchise of broadcast networks; as well FOX film studios responsible for many blockbusters (News Corporation Annual Report, 2007) The birth of free flow of information after World War II contributed majorly towards the liberation of media markets. This theory lead to the existence of modernization theory, it also played a vital role in the decision of privatization. Murdoch has strategized to make competent use of liberation of cross-media ownership widely in the USA and the British media markets. He also strategically entered the private satellite operators into the arena of telecommunications and broadcasting. News Corporation risked a large sum on investment by leasing time on new satellite ventures such as Astra and Asia Sat (Thussu, 2000), Murdoch has been able to create a truly international media corporation, at the heart of which is satellite television. (Thussu, 2000, p. 107) All parent companies and subsidiaries are united through a common owner Rupert Murdoch. Murdoch demonstrates an expansion strategy through vertical integration, which has played a vital role in its most crucial times. The company was one of early migratory conglomerates of vertical integration, this move helped News Corporation to utilize the profits through its content operation via their existence in numerous distribution sectors of the media value chain. This move has certainly been a tactical way to achieve authority and probably produce a profitable position in various media markets (Flew and Gilmour, 2003). Murdoch chose to adapt a borrow and buy philosophy that enabled him to debt leverage his way to the very top. Each successful acquisition would generate profitable results however that required greater patience. Foundations of News Corporation in Australia After his fathers death on his return to Australia in 1954 Murdoch instantly started to struggle to increase the circulation of his Adelaide newspaper. Despite the negative attitude of other publishers and the constant underrating by his opposition he dedicated all his efforts to the print business with a passion, and learned the techniques of every aspect of newspaper production. He published exciting news stories in an effective writing style, soon making returns to Murdochs small holdings. He strategically took risks by acquiring smaller newspapers that were not doing well and then turned them around (Tuccille, 2003) Murdoch in a few years of success bought his first television station in July 1959, in Adelaide, calling it Southern TV. He was an innovative young man who throughout was in search for new communication technologies continuously making an effort to amalgamate them into his existing businesses. Later in a year he took over the Daily Mirror in Sydney and its associated Sunday paper for $4 million; the paper soon enough was known to be notorious for exciting and bizarre headlines and articles about sex and mayhem. He took immediate action to change this image and established TheAustralian in the mid of1964, as a national newspaper in Canberra. This paper was a twist from the norm; it discussed social issues and government policies and rapidly acquired the respect of journalists. (Encyclopedia of Business, 2010) Expansion to Britain Murdochs past in the U.K., from his days in Oxford, had left in him bitterness for the English upper class; they had made him feel like an outsider, as if they regarded Australians as inferior being and he planned to strike back at them. He had planned to expand to Britain at the first opportunity. As evident, Murdoch has no set strategy to operate his business; however he expanded internationally through making strategic alliances in Britain which later he transformed into acquisitions. This is evident as he become a principle investor in 1969 for News of the World (a newspaper previously owned by the Carr family) while facing direct competition by Robert Maxwell, who had an infamous reputation in the news circle. Murdoch gradually became the sole proprietor for News of the World by manipulating complete control of the corporation (Tuccille, 2003) In the same year he had an opportunity to take over a dying newspaper at its true cost called the Sun formerly known as the Daily Herald, a predominantly left-wing newspaper. The unions at that time felt that Murdoch would have been a better choice to keep the newspaper viable and trade union jobs unharmed, as opposed to Maxwell who had also shown interest in buying the newspaper. Murdoch revamped the newspaper into a tabloid which was greatly criticized by many of the British newspaper establishments. However Murdochs rebellious nature ignored the criticism and planned to assemble a team of reporters and promotion experts including many from Australia. By the 1970s the Sun had become Britains most popular publication with an increase in circulation to 1.7 million, which at present is replaced by 4 million. News Corporation has grown beyond its newspapers origin as it continues to be the largest newspaper producer in the world. In addition News Corporation owns many different British newspapers including the prestigious, The Times, New of the World, and The Sunday Times (Gershon, 1997). Murdoch uses cross-media ownership and synergies as another strategy, resulting in him being able to promote his ventures across, virtually, all media segments. There is an expectation by News Corporation for major synergies to be created between U.S. satellite operations and its global business. These synergies are part technology-related, for example by sharing security software or electronic programme guides, and part content related, as for the example the combined bidding for global sports rights. The power of cross-platform synergies is most evident in association to motion picture studios and television/cable platforms and networks. This is the vicinity where synergistic potential of power in relation to media supply chain are mainly noticeable (Gunther, 2003). Furthermore, Murdochs launch of Sky Digital in 1989, a four channel satellite television service, was afterwards merged with a competitor named British Satellite Broadcasting to form British Sky Broadcasting, in 1990. The merger instantly became a success with its multi-channel subscription service which was positioned to dominate interactive digital television (Forreste, 2010). BSkyB provides a wide portfolio of genres of television programming like entertainment, news, sports etc. in order to cater to a wide variety of target audience. Sky News and Sports have seen trends of consistent growth and viewership (McPhail, 2006). Moreover, BSkyB is now Europes most profitable broadcaster with 40% holding of U.K. news corporations; though at one point it led New Corporation towards bankruptcy due to a week global economy and lack of cash flow (Guardian, 2010) Murdochs media power supported Margret Thatcher with her struggle to liberalize regulation on cross media ownership. The victory of the British labour party in the 1997 election supported by the Sun lead to the Murdochization of the media, which transformed the media background in the U.K. and other countries. Since then, entertainment and infotainment have emphasised at the price of the public service function of the media (Thussu, 2006). Expansion to Europe Having established a base in the U.K., Murdoch expanded his business into Continental Europe by establishing partnerships in Germany and Italy. News Corporation penetrated the satellite television industry in 1983. It possessed many assets in Satellite Television PLC (SATV), which during the 1980s was set up to supply to Northern European audience. After two years alongside the scrutiny of the BBC, SATV, renamed Sky Channel and consisted approximately, of three million subscribers in 11 European countries. Murdoch was not encouraged in further increasing his acquisitions as he had already forged a union with, French television giant Canal Plus to create paid-television-services across Europe. Having only conquered 6% of Western Europe, few homes had cable television; the market for pay-TV was unreached (Fiero, 2002). Now News Corporations central business policy is to use soccer as a fuel to powered satellite dish sales across Europe. Murdoch is using sports programming to enter new markets; he has acquired premium sports rights for his network and is using an identical content approach that he pursued with BSkyB (News Corporation Annual Report, 2007). Expansion to the U.S.A. Murdochs journey to enter the U.S. market began in 1976 when he acquired the New York Post. Following this, in September 1985 Murdoch decided to become an American citizen in order to satisfy the legal requirements of the U.S. markets that only a U.S. citizen was permitted to own assets in the U.S. television industry. Later that year News Corporation entered the U.S. media market, by purchasing Metromedias seven television stations amounted at $2 billion. Murdoch not only took over these seven stations but also gained their market rank and their competitive position. This purchase resulted News Corporation to build the foundation of Fox television network. In 1986, News Corporation purchased 20th Century Fox for $1.55 billion (Fiero, 2002) From Murdochs early stages of business acquisitions recognized the significance of vertical integration as a strategy for launching a new business. In the two years Murdoch was guaranteed to create a stable source of programming and readymade distribution channels. The Fox Television Network was launched in April 1987 with 108 affiliates. Fox network opted for a highly differentiated strategy in comparison to the other U.S. networks. They plan to aim their programming towards a younger and urban audience. Fox introduced three distinguishing programming formats, reality based, counter culture and tabloid television (Albarran, Chan-Olmsted, O. Wirt, 2006) In the early years of development Murdoch faced heavy financial losses, however in a few years the network was able to reach 91% of United States through an amalgamation of VHF and low powered UHF stations. The network also transformed its programming from three nights a week to five nights. The financial recovery of these loses how Murdochs long term strategy in which he is prepared to suffer losses in the short run with the expectation of gaining long term returns in the future. Murdochs synergizing strategy helped him save Fox network in its initial years by cross investing from his other well to do companies (Gershon, 1997). Further to this Mr Murdoch and his management spend a good deal of time lobbying for support for proposed mergers and acquisitions and for favourable changes in the law such as those relating to media ownership and digital piracy in the USA. (Curwen, 1999) Other assets under News Corporation in the U.S. are the Weekly Standard, Hughes Electronics with a 34 % stake in the company and DIRECTV. Ã The vertically expansion acquisition of DirecTV is a fundamental piece representing Murdochs media empire, providing him with a lucrative distribution platform in the US, which can be used to offset the rising influence of large cable operators such as Comcast. There is a strong concern that News Corporation might not be able to advantage from its economies of scale and from efficient allocation of resources as of its vertical structure due to variations in strategies with DirecTV. Joint ventures with DirecTV are necessary for absolute vertical integration which allows News Corporation to adapt to an incomplete vertical structure. It may be added that Mr Murdochs position is so dominant that there is a niggling fear that he could yet put recent advances at risk, although he has recently made clear that the immediate strategy is to absorb and im prove DIRECTV rather than make further acquisitions. (Curwen, 1999). In 2005 News Corporation bought inter-mix media which holds myspace.com and many other famous social networking websites. In 2007 News Corporation attained Dow Jones, the publishers of the famous Wall Street Journal for $ 5.6 billion (News Corporation Annual Report, 2007) One of Murdochs moves has lead to a shift in the Australian market as he announced to move the head quarters from his native land to the U.S. This has created uproars and criticism by many, however the U.S. government subsided this protest by announcing that this move was in the best interest of the U.S. market (Shah, 2004). Expansion to the Asian Markets News Corporation further expanded to the Asian media market in the mid 1990s by investing in a joint venture with Phoenix TV and Star TV. Star TV then acquired Hutchvision Hong Kong Ltd; the very first satellite television licence in 1998. Very soon Star TV in China realised that Pan Asian broadcasting was not a practical strategy to adopt for Asian markets. Hence, it divided the media services into northern and southern i.e. China and India, respectively, as their main target. The flourishing Zee TV which is a joint venture of Star TV in India broadcasted in their native language Hindi further emphasised for Star TV to go local. Therefore Star TV continuously was on a quest to seek joint venture prospects in the district (Chalaby, 2005) News Corporation has used an array of strategies to consolidate its position in Asia, potentially the worlds biggest television market.(Thussu, 2000, p. 112). STAR TV network was set up to cater Asian audiences to global corporations and promoters. The enhancement of technology in satellites and dishes as well as the rapid expansion of liberalization and government deregulation certifies a concrete broadcasting future in Asia. STAR TV aims to stay in Asia on the very top of Satellite broadcasting. To capitalize on viewership Star TV is moving towards local language fare (McPhail, 2006) Star TV has assertively taken on the strategy of indigenisation in offering localized channels. This is truly an example of going glocal this strategy demonstrates how the global can include both the transnational and geo-culture by nominating the local to sustain the leading flow. Their localized channels include Star Chinese channel (for Taiwan), Star Japan, Star Plus and Star News for India, VIVIA cinema for the Philippines. ESPN Star Sports a joint venture of ESPN and Star to provide coverage of Pan Asian and international sports event is Asia. Murdochs Star Select are gradually localizing their content to cross into the gulf region. This Arabisation includes the use of subtitles for American programs and sensitising language as well as the depictions of sex and nudity (Thussu, 2006). In Asia News Corporation are faced with many burdens; political, economical, cultural and social. In order to eliminate these barriers to entry this works hand-in-hand with morality, democracy as well as with capitalism. This liberation of mechanisms for Asia is a result of communication, capitalism and democracy which create greater access, choice prosperity and social equality (Weber, 1995). Conclusion With News Corporation Murdoch has created an international empire of media, technology and sports franchise. His vast multimedia holdings have always been global in nature. With satellite system in Europe (BSkyB) Asia (Star TV) and North America (direct TV) Murdoch may be on his way to create a global media infrastructure (McPhail, 2006). There are three main strategies News Corporations business model is based on vertical control and horizontal networking, vicious quest of market expansion and the leveraging of community, and political elite opinion. In context of globalisation theory the company has been steadily occupied in structuring a foundation of geographically dispersed assets via mergers and acquisitions, direct foreign investment and strategic partnerships. This mechanism is interconnected, equally fundamental and established on the capability of Murdoch to build connection between media, political and economic system in the joint ventures of the corporations financial development (Arsenault and Castells, 2008) News Corporation consists of many various businesses within the umbrella of the company and therefore when examining the overall strategy of News Corporation, one needs to understand and scrutinize the various, individual, tactics that each sub-business applies in order to stay ahead of their competition in each respected industry. When examining Murdochs growth-tactics, in order to expand the News Corporation Empire, it would be adequate to state that he practices very aggressive strategies despite the industry divergences. In the print industry the company has adopted a cost-leadership strategy (van den Bosch, de Man, 1997), in order to monopolize the industry competition. When it comes to the television media, i.e. Fox, the company has spread in many directions, and their assets are vertically integrated to live up to the strategies of expansion in order to benefit from long-term returns. News Corporation has always been in quest to search power more than distribution, and the introduction of new digital technologies has created an opportunity to develop that type of power. The proceedings that help the continuous growth of News Corporation are the mature, non-digital distribution activities. Murdoch complies with a three-phase strategy in which profitable, high growth old businesses move the company ahead and please investors while mature parts of the company fund the growth areas of the future. (Turow, 2009). Diversification of News Corporation might create a possibility to enhance the position as more than one sector of the business is experiencing damaging changes. The major issue with that would be that Company would have to either adjust to an absolutely new business, or they would have to stick to what they know and hope they can keep ahead in the media market. Globally News Corporation thinks of itself more grandly than other media conglomerates. Like Disney another major media conglomerate, News Corporation necessitates for synergy among subsidiaries, global reach, and the use of new technologies. Unlike the other giants, News Corporation does not run on a business model of an official planning department. Criticism has been highlighted upon the way the company does not undertake acquisitions on the grounds of comprehending synergies with the core businesses, but mainly have the incentive of acquiring an asset on a lower price and selling it for a significant profit after it has been turned around. Due to which News Corporation lacks the connectivity to exploit synergies to its full capacity. The company is vastly spread out with very little connectivity. Murdochs strategic vision has always composed of expansion as the key factor. He has deserted his 1980s high-debt strategy, and has substituted it with more conservative management style. This allows him to be less dependent and exempts him from creating short-term shareholder value and rather focusing on long-term vision even if shareholders and financial markets would likely oppose such actions (Freedman, 1996). Murdochs strategies at times seemed risky and unsuitable and were against market norms but his commendable ability to handle the media industry, his fearless risk taking approach, joint with his exemplary familiarity of the media industries and his mystifying capability to sense the popular pulse, still lead to his extraordinary success (Thussu, 2000) Rupert Murdoch is a businessman. He has built News Corporations competitive advantage by continuing to maintain control of his joint ventures with other media giants and by leveraging his ability to influence audiences around the world in order to gain political favours. Authority in every system is attained on the foundation of safe entrant to the others. According to this point of view, Murdochs authority is not bound to a particular association with a political actor in a nation at any one point in time. What really matters is his control over multiple connecting points (Arsenault and Castells, 2008). Murdoch quoted The world is changing very fast. Big will not beat small anymore, It will be the fast beating the slow (Chappelle, 2007).
Friday, September 20, 2019
Differences between the consumer market and business
Differences between the consumer market and business Some book authors define Market as a group of potential or actual buyers who are willing to buy certain product or service (Kolter Armstrong, 2006, p. 7; Kurtz Boone, 2006, p. G-7; Lau, 2007, p. 56). When we mentioned business to business (B2B) and business to consumer (B2C), there are two groups of market: the first one is business market and the later one is consumer market. First, discussion will start with differences between consumer and business market. Then, the second part will be followed by the influences of key factors that differentiate business marketing and consumer marketing. Differences between consumer and business market Kolter Armstrong (2006, p.161) stated that consumer and business markets have similar characteristics in some ways. Meanwhile, many researchers also argued that business market is different from consumer market in many ways (Webster, 1978; Ames, 1970; Cooke, 1986; Lilien, 1987; Kolter Armstrong, 2006, p. 161). Kolter Armstrong (2006, p. 161) classified key difference between business and consumer markets into three broad groups, namely: market structure and demand, nature of the buying unit, type of decisions and decision process. Their classification is parallel with Lau (2007, p. 6), whom stated that both markets are different in terms of number and size of customers, buying expertise and process, decision making, geographical concentration, derived demand, and relationships. From the review, total of seven key differences are identified. Type of customers First of all, a very obvious difference is the type of customer on both markets served (Coviello Brodie, 2001). According to Lau (2007, p. 12), customers in the business market can be classified into commercial enterprises, government and public organizations, and institutional organizations. In contrast, customers in the consumer market are individuals or households (Sashi Kudpi, 2001). In consumer market, target market for a juice drink is working woman with 12 years old youth at home. Nevertheless, target market for industrial products such as steel or cement will be different from consumer market. For instance, customers for industrial products such as steel or cement will be a group of people or organization whom doing business. This two examples show that type of customer for consumer market is more concern on individuals or households whereas business market is more concern on a group of people. Number and size of customers Despite type of customer, business markets and consumer markets are different in terms of number and size of customers (Lau, 2007, p. 6). Unlike consumer market, business market has fewer customers. However, customers in the business market buy larger quantities than consumer market. As Kaplan (2000) and Olsen (2000) stated that the market size for consumer market is normally measured in millions whereas business market is measured in thousands. Thus, conclusion can be drawn where a company might have millions of customers where each customer buys in small quantity. On the other hand, a company might only have thousand of business customers whom each of the organization buy in large quantity. For example, consider an apple pie seller and an individual buyer that buy apples for different use. In this situation, the apple sellers might have several apple pie business buyers but many individual apple buyers. Meanwhile, apple pie business buyers will buy larger quantities than the indivi dual consumer because the business buyers demand more apples to make apple pies for sale. Buying knowledge and process Other than that, purchaser of business market has greater buying expertise than consumer market (Lau, 2007, p. 7). Hence, business decision process is different from consumer decision process when business buyer has greater knowledge (Kolter Armstrong, 2006, p. 170; Blackwell, Miniard Engel, 2006, p. 70). Blackwell et al. (2006) stated that consumer decision for goods and services including seven stages: need recognition, information searching, pre-purchase evaluation, purchase behavior, consumption, post-purchase evaluation and divestment (p. 70). Examples will be as followed: An individual found that he needs a new printer to replace the old one. After that, he searches printers information available in internet/ seek information from his friends. From the searching stage, three alternatives are found and he evaluate different printers brand in terms of quality, after sale services, prices and etc. He decided to buy Printer B after evaluation and bring it home / install and use it. During the usage, good or bad perception towards the new buying will determine his satisfaction which further determines his loyalty to the brand. That is, consumer decision process is that simple. In contrast, business buying process has eight stages: Problem recognition, need description, product specification, supplier searching, proposal solicitation, select supplier, order-routine specification, and performance review (Kolter Armstrong, 2006, p. 171). Example is as followed: New entrant, XYZ automobile Sdn Bhd need new business suppliers to supply aluminums for cars produced. Before searching for suppliers, they list down their need and product specification. Then, they start search number of suppliers which supplies what they want. The pool of suppliers then compete and bidding for the projects. Eventually, the company selects BIBI aluminums Sdn Bhd which they think BIBIs offer /services best suit their needs and product specification. After that, XYZ listed down the order-routine items and all the specification/order with BIBI. Once the supplies process has started, XYZ will review and evaluate the performance of BIBI in terms of deliver, product quality, services and others performance. The evaluation will determine whether XYZ want to continue the business relationship or terminate it in the future. From the example, conclusion can be drawn where business market has more complex and formalized buying decision process than consumer market because business buyer has to follow specific procedures or get approval before buying decision are made (Kolter Armstrong, 2006, p. 163; Lau, 2007, p. 7). Despite greater knowledge, business buyer is responsible to purchase with huge resources (Lau, 2007, p. 7). Hence, they tend to spend more effort and time to evaluate products and services offered before buying decision are made (Lau, 2007, p.7). For example, a consumer buyer might not go through the stage of pre-purchase evaluation and buy an inkjet printer just because he or she likes it. But when it comes to business buyer, they cannot skip the formal procedure or approval to buy inkjet printers for office use just because he or she likes to do so. Buying decision making Besides that, business market made decision differently from consumer market (Lau, 2007, p.7). In business market, salesperson has to deal with number of individuals. Buying decision making involved more than one person, whom possesses different roles either to build or maintain the relationship with the supplier (Homburg et al., 1997). Those persons involved in buying decision making are known as the members of buying center (Lau, 2007, p.47-48). In the buying center, those members include decider, purchaser, influencer, initiator, gatekeeper and user (Schellhase et al., 1999; Lau, 2007, p. 47 48). For instance, in an automobile manufacturing company, a production team might be initiator or user for a machine. Then, another team in purchase department will act as buyer for the machine. Meanwhile, finance team will act as gatekeeper in decision making process which functions as budget control role. Lastly, Chief executive officer might act as influencer and decider which he or she w ill decide whether to buy or not to buy at the end. Salesperson in business marketing deals with more than one person in, but salesperson commonly deals with an individual in consumer market. For instance, materials purchase decision (new task buying) for car manufactured will only be made when the agreement across different functional department and vertical management levels have reached. Purchase decision will not be made when conflict between different departments has not yet solved. However, a mother (purchaser) will buy a dress for her daughter (user) without the consent of other family members (e.g. son, father). Demand In addition, business and consumer market can be differentiated in the view of economic perspective. Demand in business and consumer market is different. Demand in business market is derived from demand of the products that business suppliers help produce (McConnell et al., 2009). This is known as derived demand. Derived demand can be referred as Association demand between resource and product in which demand for industrial product is linked with demand for goods and products that made from the resource (Kurtz and Boone, 2006). For example, demand for cotton is derived from consumer demand of shirt. According to the news, consumers will be paying high prices for shirt for the coming New Year since cotton prices has increased (The star, 2010). According to law of demand, demand for shirt will drop as price goes up due to elasticity (McConnell et al., 2009). From here, we can conclude that demand for shirt will be affected by consumers directly. However, demand for cotton at business m arket is inelastic (Lau, 2007, p. 8). Demand for cotton is depending on consumer demand for shirt. It is in contrast with law of demand where changes in prices will not increase or decrease demand for business products. On other words, it means that decrease in prices will not encourage sale for business products (Lau, 2007, p. 8). Nevertheless, demand for cotton is being affected by demand for shirt. For instance, although cotton price is escalating, demand for cotton is still remaining or increasing if demand for shirt is greater. Geographical concentration As business is moving towards globalize, customers are everywhere. Business products buyers with similar business tend to be geographical concentrated. According to McDonald et al. (2001), geographical concentration serves as one of the characteristics of the term Cluster. The term cluster can be defined as a group of producer whom produce similar products are located near to each other (Schmitz, 1992, p. 65). Cluster and industrial district are used interchangeably (McDonald et al., 2001). Marshall (1890) claimed that one of the reasons for being geographical concentration is to grab economies of scale. For instance, consider automobile business companies: Nissan, Ssangyong, BMW, Daihatsu and Proton edar. These automobile business companies set up their headquarters office in Selangor. These companies are in the same industry: automobile selling industry. Similarly, they need raw materials such as steel and aluminum etc. to produce automobile. In contrast, customers in consumer mark et can be found everywhere and they are not that geographical concentrated as compare to business markets customers. Relationship When talk about relationship, relationship development for consumer market and business market is both important. Thus, customer relationship management in consumer market plays an important role. However, when comes to business to business relationship, relationship will even play a more critical role to determine business success or failure. In business market, need of coordination between business supplier and business customers is greater (Lau, 2007, p.10). In business market, Cann (1998) stated that long term relationship between business suppliers and customers is vital for business to be succeeded. According to some researchers, there are several reasons for business suppliers and customers to maintain long term relationship. For example, Sheth (1994) stated that maintain long term relationship will gain more benefits and risk of doing business will decrease. Apart from that, maintain existing relationship is less costly than acquired a new one and existing business partner is easy to work with (Cann, 1998; Congram, 1991). For instance, when an automobile company decided to replace a new supplier instead of the existing one, cost will incurred. New supplier is much likely will perform slow and not that effective in the beginning. This is because they are new joined supplied which they are not familiar to their new customer as compare to old supplier. As a result, operation efficiency decrease and cost incurred. Put it as conclusion, sellers have to develop close relationship with customers in customer market. But, business suppliers have to develop much closer relationship with customers and coordinate well with business customers. Table 1: Summarize differences between business and consumer market Key differences Business market Consumer market Type of customers Commercial enterprises Government and public organizations Institutional organizations Individuals households Market structure and demand Number and size of customers fewer customers large buyer more customers small buyer Geographical concentration More Concentrated Customers are less geographical concentrated Demand Derived from the demand of other products Derived directly from consumer Nature of the buying / Type of decision / Decision process Buying expertise and process Greater buying expertise/knowledge Complex and formalized buying decision process more professional effort in purchasing less buying expertise Simple and less formal buying decision process Buying decision making Decision made by a group of people More complex buying decision Decision made by individual Less complex as compare to Business to business Relationship Closer relationship Long term Close relationship Short term Sources: adapted from Lau (2007); Kolter Armstrong (2006). In conclusion, business and consumer market is different in several key characteristics: type of customers, number and size of customers, geographical concentration, demand, buying expertise and process, buying decision making and relationship (Table 1 summarize the differences between business and consumer market). Next, we look at how these seven key differences have caused business marketing different from consumer marketing. Business marketing and Consumer marketing Business to business marketing can be defined as the process of sale or purchase of goods and services involve at least two parties in which the buyer will buy the products from supplier for operation, production or resale purpose (Kurtz and Boone, 2006, p.188). Consumer marketing can be referred as the process of sale or purchase of goods and services between sellers and individual buyer (Noori and Salimi, 2005). There are different arguments towards marketing approaches for business and consumer market. Some researchers argued that differences in consumer and business market did not constitute to different marketing approaches (Fern Browns, 1984; Jackson Cooper, 1988). However, it is widely discussed that different marketing approaches should be used for business and consumer market (Cooke, 1986; Webster 1978, p. 24). For example, due to the differences between consumer and business market, Lilien (1987, p.16) suggested that marketers should use different marketing strategies to approach consumer market and business market. Comparison between business to business marketing and consumer marketing When mentioned about marketing, we should not overlook marketing mix. Marketing mix refers to the blending of four P strategies (Kotler and Armstrong, 2006, p. 48). Kurtz and Boone (2006, p.189) compared business to business and consumer marketing based on marketing mix: First, Business to business and consumer marketing is different in terms of product strategy. Business products are normally technical in nature whereas consumer products are in more standardized form (Kurtz and Boone, 2006). As a result, they claimed that accompanying services are more important in business products marketing as compare to consumer products marketing. Business customers have to be handled individually and personal selling is needed for business products marketing (Hakansson et al., 1967; Kaplan, 2000; Olsen, 2000). Second, Business to business and consumer marketing can be compared in terms of promotion strategy. Kurtz and Boone (2006) stated that business to business marketing should focus on personal selling whereas consumer marketing should focus on advertising. Other than that, Business to business marketing is different with consumer marketing in terms of distribution strategy. In business to business marketing, business marketer distribute business products direct channel which did not involve any intermediaries and the distribution channel is short whereas consumer products marketer utilize indirect channel to approach their customers (Kurtz and Boone, 2006). Lastly, Kurtz and Boone (2006) differentiated business to business marketing from consumer marketing in terms of price strategy. They stated that there will be competitive bidding in business to business despite list price whereas consumer products is more standardized thus using list price. From the review, example of consumer marketing is as followed: An instant noodle is standardized product. Despite sales promotion, business marketer for instant noodles will promote their products through advertising. The manufacturer uses list price to price their products. Then, pack and distribute their products by using indirect channel, which buyers can buy it from retailers. In contrast, example for business to business marketing is as followed: An electronic product is technically in nature, an accompanying service is needed. To convince business customer to buy electronic products, the company will send sales representative team to market their product to their customers due to the complexity of the marketed product. The sales representative will approach their customer directly rather than go through intermediaries. The supplies company might have to bid for the price because there are normally more than one companies are marketing similar products to the same customer. At the end, the project will goes to the best product quality and lowest price provider. However, Comparison between Business to business marketing and consumer marketing should look beyond marketing mix (Coviello and Brodie, 2001). Hence, we will discuss in depth regard the influence of key factors of business and consumer market in marketing practices. Differences between business and consumer marketing will be discussed based on each of the key factors listed in table 1. Mass marketing versus one-to-one marketing Since the number and size of customers are different, customer acquisition method for both markets also is different. Due to the differences, business organizations customers should be handled individually (Hakansson et al., 1967). Kaplan (2000) and Olsen (2000) stated that communication with business to consumer market is more relied on mass marketing. As mentioned, size of customers in consumer market is large. When size of customer is large and homogeneous, mass communication such as advertising will be used to approach the customers. In contrast, business market is more relied on one-to-one marketing. Customers in business market are fewer but large, they are more expert and making decision in group as a whole. Hence, business market customer should be handled individually (Hakansson et al., 1967). According to Kaplan (2000) and Olsen (2000), personal selling is normally used in business to business marketing. For example, salesperson engaged in business to business marketing wil l use direct selling rather than mass communication to approach their targeted customers. Argument of Kaplan (2000) and Olsen (2000) is parallel with Kurtz and Boone (2006, p. 189), which Kurtz and Boone also stated that promotion strategy in business marketing is more focus on advertising whereas consumer marketing is more focus on personal selling. Marketing strategy As seen in Table 1, type of customer for business and consumer market is different. Thus, marketing strategy for both markets will be different as well. In fact, type of customers might help business marketer to segment market group based on type of customers (Kurtz and Boone, 2006). Indeed, understanding customers needs and wants for both market is important as well. In consumer marketing, marketers market their products to individuals or household. Thus, marketer offered products to satisfy customers needs and wants or to make customer pleasure. Meanwhile, customers might buy the products which they do not really need, they buy just because for pleasure. However, types of customers for business supplier are a group of person whom doing a business. Product purchase is critical for their business operation. Unlike customer in consumer market, they are not purchase for pleasure. Hence, to convince business customers, business marketers have to understand and focus needs of business cu stomers but end user. Then, market their products by demonstrating how their products can help business customers in daily operation in long term period. Second, when demand for industrial products is driven from other products, customer demand for that particular product will determine the demand for industrial products as well. Since law of demand stated that any changes prices will stimulate consumer demand, marketer for consumer market might manipulate product price to stimulate the demand for consumer product. However, since demand for industrial products is inelastic, price manipulation would not increase the demand for industrial products unless demand for consumer demand is being stimulated. This explains why cooperative advertising is employed by manufacturer and channel members. Cooperative advertising is a manufacturer and channel members joint advertising (Cadeaux, 1997). When manufacturer and business customers agree to engaged in cooperative advertising, upstream channel partner such as manufacturer will bear certain percentage for product advertising (Kurtz and Boone, 2006, p. 423). Due to derived demand phenomenon, bus iness supplier such as manufacturer willing to spend money for cooperative advertising because they understand that increase in end user demand will eventually increase the demand for industrial products as well. From here, we know that price manipulation is not the solution for industrial products marketing. In contrast, cooperate with channel partners and develop relationship with channel partners and come out a comprehensive marketing strategy will help business suppliers business to growth further. Other that than, since business customers are geographical concentrated, business marketer has to identify where is the key district for their business customers to run operations. For example, as mentioned in first part, automobile business companies set up their head office in Selangor. From here, business marketers should able to identify that Selangor serve as key district for their business customers to run operations. When business customers are geographical concentrated, the distribution channels in business marketing is shorter than consumer marketing (Kurtz and Boone, 2006, p. 189). In conventional distribution channel, the channel involves numbers of intermediaries to distribute products to the market, this is known as indirect channel distribution (Peter and Donnelly, 2009, p. 145). In fact, business suppliers such as manufacturer will use short and direct channel to approach their business customers which means that distribution is shorter as compare to consumer products distribution (Peter and Donnelly, 2009, p.145; Pelton et al, 2001). In contrast, since consumer market is less geographical concentrated as compare to business market, distribution channel for consumer products normally involve participation of intermediaries to reach the dispersed consumer. Besides that, the distribution channel for consumer market is long (Kurtz and Boone, 2006, P. 189). This also explains why business marketing is relying more on personal selling whereas consumer marketing is relying on mass marketing. Besides, business expertise and buying process in business market also contribute to the different use of marketing strategy in both markets. Since business organization has trained expert to conduct purchase, they normally understand what the organization want. Most significant, they possess more knowledge on how to make purchase which best fulfill those requirements. (Lau, 2007, p. 7). Thus, when the trained person has skills and knowledge, this key factor differentiates business marketing from consumer marketing. In consumer market, customers tend to possess less knowledge about the products as compare to business customers. As a result, impulse purchase is likely to happen in customer market rather than business market (Lau, 2007, p. 7). For instance, a female customer might did not plan to buy body wash during shopping time. However, the customer encounters a salesperson for AAA brand body wash and bought the product eventually because she was told by the salesperson that the bo dy wash is good. From here, impulse purchase was happened in consumer market, and marketers can easily manipulate strategy to convince consumer to buy. Nevertheless, impulse purchase would not happen in business market since business customers would not buy business supplier products merely because business salespersons claimed that their supplies are good. For instance, an automobile would not purchase aluminum (raw material) to produce the car without proper evaluation of the products. Thus, to market industrial product to business customers, business marketer must possess greater product knowledge. Besides, fulfill business customers specific requirements and demonstrate how marketer products can solve their problems is a must in order for transaction to deal successfully. When comes to buying process, business customers have more formalized procedure to be followed (Lau, 2007, p.7) as compare to customers in consumer market. In such situation, understanding on business customers buying procedure is a must if business marketers hope to have a deal with them. Since there are no formalized procedure for individuals or households to purchase a product, marketers can freely approach customers in consumer market. But, if business marketers wish to approach business customers, marketers must understand clearly the formalized business buying procedure and adhere to their procedure (Lau, 2007). Business marketers must ensure any of their actions do not conflict with the specified procedure. In fact, decision making process of both markets advocated marketers to apply different marketing strategy in business and consumer market. In consumer marketing, marketers normally deal with individuals or household. Thus, marketer might only have to address and interact with individual if they wish to convince customer in consumer market to buy. However, different situation is in business marketing. Kurtz and Boone (2006, p. 202 203) identified four factors which will influence decision making process in business market: The four factors include environmental, organizational, interpersonal and buyer role. From these four factors, interpersonal factors do play greater influence in decision making process. According to Kotler and Pfoertsch (2007), customer in business market is much more rational. Hence, Sashi and Kudpi (2001) stated that organization will perform analysis of potential business suppliers in procurement decision. Unlike consumer market, they are more than one person involve in buying decision making. Thus, business marketer not only has to address buyer needs, marketer also has to address and interact with all parties involved in buying decision making (Kurtz and Boone, 2006). For example, initiator and buyers might want to buy material supplies from XYZ Company. However, Influencer and decider might not agree that; buy the supplies from XYZ Company will benefits their company. As Ghingold and Wilson (1998) claimed that different parties in buying center having different perspective or perceptions in regards to problem, needs of the organization. Hence, to convince business customers, business marketers have to make sure all the relevant parties involve in decision making and ensure all parties needs have been addressed. Some researchers even argued that brand plays an important role in business buying decision making (Bendixen et al., 2004; Michell et al., 2001). Webster and Keller (2004) stated that brands will help in gaining consensus of di fferent parties on buying decision. Relationship marketing Today, either consumer marketing or business marketing, relationship does play an important role for business successfulness; accordingly we have seen the emergence of customer relationship management (CRM), which this CRM system aid companies to interact with customers and response quickly to them (Nguyen et al., 2007; Anderson, 2006). Hence, buyer-seller relationship development in consumer marketing is important. Nevertheless, importance of relationship development is much greater in business marketing. Since business market is different with consumer market in terms of several factors, relationship marketing is commonly employed in service industry and industrial industry (Ahmad and Buttle, 2001). Relationship marketing can be defined as Achieving objectives of both sellers and customers by develop, maintain and enhance relationship (Gronroos, 1990). As mentioned earlier, seller-buyer relationship in business market is closer and long term relationship should be developed with th em (Ford, 2003). Hence, needs of coordination between business supplier and customer is greater in business market. As Simatupang et al. (2002) stated that greater coordination between distribution channels members will allow the entire distribution channel system become more flexible and allow them quickly response to the market changing. On other means, the way business supplier maintains relationship with their customer is vital to determine their long term sustainability and profitability. This emphasizes how development of business relationship or networking between business supplier and customer is vital in business marketing. In consumer marketing, marketers can utilize Customer relationship management system and gaining customer satisfaction and loyalty, hope that customers will stay loyal to the brand and buy it again. In business marketing, relationship development is much more complex. Cann (1998) suggested that there are eight steps for a business supplier develop busine ss relationship with customer; marketing goals, strategies, culture, customers orientation and socialization are critical in order for business supplier to develop business relationship. From these eight steps, it showed that business relationship development is much more complex in business to business world. Conclusion As a conclusion, there are seven key factors that differentiate business market from consumer market. The seven identified key factors include type of customers, demand, geographical concentration, buying expertise and process, buying decision making, seller and buyer relationship, number and size of customers. Structure in business market is much more complex than consumer market. Hence, handled business customer individually is more suitable. In fact, combi
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