Market

Market:

Actual or conceptual place in commercial world where forces of demand and supply operate, and where buyers and sellers interact (directly or through intermediaries) to trade goods, services, or contracts or instruments, for money or barter. Markets include mechanisms or means for (1) determining price of the traded item, (2) communicating the price information, (3) facilitating deals and transactions, and (4) effecting distribution. Market for a particular item is made up of existing and potential customers who need it and have the ability and willingness to pay for it. All markets, ultimately, consist of people. Also called marketplace.

Marketing:

Marketing is the process by which companies create customer interest in goods or services. It generates the strategy that underlies sales techniques, business communication, and business development.It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves.Marketing is used to identify the customer, to keep the customer, and to satisfy the customer.

Marketing is defined by the American Marketing Association (AMA) as "the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large."The term developed from the original meaning which referred literally to going to a market to buy or sell goods or services. Seen from a systems point of view, sales process engineering views marketing as"a set ofprocesses that are interconnected and interdependent with other functions, whose methods can be improved using a variety of relatively new approaches."

The Chartered Institute of Marketing defines marketing as "the management process responsible for identifying, anticipating and satisfying customer requirements profitably." A different concept is the value-based marketing which states the role of marketing to contribute to increasing shareholder value.In this context, marketing is defined as "the management process that seeks to maximise returns to shareholders by developing relationships with valued customers and creating a competitive advantage.

Marketer:

A marketer is someone who seeks a response attention ( on a purchase, a vote, a donation) from another party, called the ‘prospect. If two parties are seeking to sell something to each other, we call them both marketers.

Market place:

A marketplace is the space, actual, virtual or metaphorical, in which a market operates. The term is also used in a trademark law context to denote the actual consumer environment, ie. the 'real world' in which products and services are provided and consumed. It is a location where goods and services are exchanged.

Meta Market:

Meta Market is a web-based market centered around an event or an industry, rather than a single product. These are markets of complementary products that are closely related in the minds of consumers, but spread across different industries. The web allows us to match producers' desire for economies of scale, and consumers' desire for variety of choice to satisfy a set of needs

Meta market is a place, where everything connected with a certain market can be found. Let’s say a car selling meta market would be a website, that sells cars but you will also find car parts there, add-ons for cars, colors for cars, mechanics reviews and many more.

So meta market of a certain market is a market, where you can find everything about that market and everything about markets that are strongly connected to that market.

Market space:

A virtual marketplace such as the Internet in which no direct contact occurs between buyers and sellers.

Swot analysis:

SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. The technique is credited to Albert Humphrey, who led a convention at Stanford University in the 1960s and 1970's using data from Fortune 500 companies.

A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model. Strategic Planning, has been the subject of much research.

1.Strengths: attributes of the person or company that are helpful to achieving the objective(s).

2.Weaknesses: attributes of the person or company that are harmful to achieving the objective(s).

3.Opportunities: external conditions that are helpful to achieving the objective(s).
4.Threats: external conditions which could do damage to the objective(s).

Internal and external factors:

The aim of any SWOT analysis is to identify the key internal and external factors that are important to achieving the objective. These come from within the company's unique value chain. SWOT analysis groups key pieces of information into two main categories:

Internal factors – The strengths and weaknesses internal to the organization.

External factors–The opportunities and threats presented by the external environment to the organization.

Strengths:

A firm's strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage. Examples of such strengths include:

1)Patents 

 2)Strong brand names 

 3)Good reputation among customers

 4)Cost advantages from proprietary know-how 

 5)Exclusive access to high grade natural resources 

 6)Favorable access to distribution networks

Weaknesses:

The absence of certain strengths may be viewed as a weakness. For example, each of the following may be considered weaknesses:

1)Lack of patent protection

2)A weak brand name

3)Poor reputation among customers

4)High cost structure

5)Lack of access to the best natural resources

6) lack of access to key distribution channels

Opportunities:

The external environmental analysis may reveal certain new opportunities for profit and growth. Some examples of such opportunities include:

1)An unfulfilled customer need

2)Arrival of new technology 

3)Loosening of regulations

4)Removal of international trade barriers.

Threats:

Changes in the external environmental also may present threats to the firm. Some examples of such threats include:

1)Shifts in consumer tastes away from the firm's products 

2)Emergence of substitute products 

3)New regulations 

4) Increased trade barriers.

The Swot Matrix:

A firm should not necessarily pursue the more lucrative opportunities. Rather, it may have a better chance at developing a competitive advantage by identifying a fit between the firm's strengths and upcoming opportunities. In some cases, the firm can overcome a weakness in order to prepare itself to pursue a compelling opportunity.To develop strategies that take into account the SWOT profile, a matrix of these factors can be constructed. The SWOT matrix (also known as a TOWS Matrix) is shown below:

S-O strategies pursue opportunities that are a good fit to the company's strengths.

W-O strategies overcome weaknesses to pursue opportunities.

S-T strategies identify ways that the firm can use its strengths to reduce its vulnerability to external threats.

W-T strategies establish a defensive plan to prevent the firm's weaknesses from making it highly susceptible to external threats.

Define:

Exchange: - means to give goods or services and to get goods or services of equal value in return. Exchange is synonymous with barter.

Transaction:- a transaction is a sale when money is received in return for the goods or services.

Or

It is the trade of values between two or more parties. A transaction involves at least two things of value, agreed- upon conditions, a time of agreement and place of agreement.

Transfer:- A changing of ownership, such as real estate, a security or a financial account, from one party to another.

Goal Formulation:-

Goals are “what” a business unit wants to achieve.

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  First perform a SWOT analysis.
  
  
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  Next, formulate goals with specificity as to time (by when it will be performed) and magnitude or quantity (by how much it will be changed). An organization will normally have a mixture of goals.
  
  
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  Order your goals from broad to specific categories: for example from increasing net earnings by 20%-dansk- to increase revenues by 15% and reduce expenses by 12 % in certain areas.
  
  
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  Confirm that your goals relate realistically to the results of the SWOT analysis performed.
  
  
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  Examine your goals to make sure they are not at cross purposes with one another. For example, short term versus long term goals; sales goals versus profit goals; high growth versus low risk; development of new products versus deepening existing markets.
  
  
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  This process is often called Management by Objective or MBO.

Trademark:- 

A trademark or trade mark is a distinctive sign or indicator used by an individual, business organization, or other legal entity to identify that the products or services to consumers with which the trademark appears originate from a unique source, and to distinguish its products or services from those of other entities.

A trademark is designated by the following symbols:

1)  ™ (for an unregistered trade mark, that is, a mark used to promote or brand goods)

2)  ℠ (for an unregistered service mark, that is, a mark used to promote or brand services)

3)  ® (for a registered trademark)

Patent:- Exclusive rights granted by federal govt. to manufacture and sell a patended machine or device or to use a process for 17 years.

copyright: Copyright is a set of exclusive rights granted to the author or creator of an original work, including the right to copy, distribute and adapt the work. Copyright does not protect ideas, only their expression or fixation. In most jurisdictions copyright arises upon fixation and does not need to be registered. Copyright owners have the exclusive statutory right to exercise control over copying and other exploitation of the works for a specific period of time, after which the work is said to enter the public domain. Uses which are covered under limitations and exceptions to copyright, such as fair use, do not require permission from the copyright owner. All other uses require permission and copyright owners can license or permanently transfer or assign their exclusive rights to others.

Entrepreneurial Competencies

Entrepreneurial Competencies


A competence is an underlying characteristic of persons, which results in effective and /or superior performance in a job. A job competence is an underlying characteristics of a person, in that it may be motive ,traits, skills ,aspect of ones self-image a body of knowledge ,set of skills and cluster of appropriate motives/ traits that an individual possess to perform a given task.

The knowledge of entrepreneurial competence has been sharpened over the last 3 decades. The following is a list of major competencies that contribute towards top performance.

1. INITIATIVE:
Takes action that goes beyond job requirements or the of the situation.

Does things before being asked or forced to by events.

Acts to extend the business into new areas, products, or service.

2. SEES AND ACTS ON OPPORTINITIES:

Looks for and action on opportunities.

Sees and acts on opportunities (business, educational or personal growth).

Seizes unusual opportunities to obtain financing equipment, land, work space. Or assistance.

3. PERSISTENCE:

Takes repeated action to overcome obstacles that get in the way of reaching goals.

Takes repeated or different action to overcome obstacle.

Takes action in the face of a significant obstacle.

4 INFORMATION SEEKING:

Takes action on own to get information to help reach objectives or clarify problems.

Does personal research on how to provide a product or service.

Consults experts for business or technical advice.

5. CONCERN FOR QUALITY OF WORKS:
 Acts to do things that meet or beat existing standards of excellence.

States a desire to produce work of high quality.

Compares own work or own company’s work favorably to that of others.

COMMITMENT TO WORK CONTRACT:
Acts to do things that place the highest priority on getting a job completed.

Accepts full responsibility for problems in completing a job for others.

Pitches in with workers or works in their place to get the job done.

Expresses a concern for satisfying the customer.

7.EFFICIENCY ORIENTATION :
Finds ways to do things faster or with fewer resources or at a lower cost.

Looks for or finds ways to do things faster or at less cost .

Uses information or business tools to improve efficiency.

Expresses concern about costs vs. .benefits of some improvements, change, or course of action.

8.SYSTEMATIC PLANNING:
Develops and uses logical ,step-by-step plans to reach goals.


Plans by breaking a large task down into sub-tasks.

Develops plans that anticipate obstacles.

Evaluates alternatives.

Takes a logical and systematic approach to activities.

9.PROBLEM SOLVING:
 Identifies new and potentially ideas to reach goals.

Switches to an alternative strategy to reach a goal.

Generates new ideas or innovative solutions.

10.SELF-CONFIDENCE:

Has a strong belief in self and own abilities .

Expresses confidence is own ability to complete a task or meet a challenge.

Sticks to own judgment in the face of opposition or rarely lack of success.

Does something that he says is risky.

11. ASSERTIVENESS:
 Confronts problems and issues with others directly.

Tells others what they have to do .

Reprimands or disciplines those failing to perform as expected.

12. USE OF INFLUENCE STRATEGIES:
Uses a variety of strategies to influence others.

Acts to develop business contacts.

Uses influential people as agents to accomplish own objectives.

Selectively limits the information given to others.

14.MONITORING:

Develops or uses procedures to ensure that work is completed or that work gets standards or quality.

Personally supervises all aspects of a project.

15. CONCERN FOR EMPLOYEE WELFARE:

Takes action to improve the welfare of employees.

Takes positive action in response to employee’s personal concerns.

Express concern about the welfare of employees.

Steps Taken In Entrepreneurship Development Programmes

Training and Entrepreneurship

Development Programme in India

Contents:-


Importance of training


Methods of training


EDP- Need and importance


Phases of EDP


Selection of entrepreneurs for EDP


Training programme - Course contents


Pre requisites of EDP


Organisations providing EDP



Importance of Training

• Ensures availability of skilled manpower at all management levels.

•Enhancing abilities, potential among entrepreneurs

•Increase efficiency

•Maintain and enhance product quality

• Minimise wastages in production process

•Minimise accidents on the job

•Reduce fatigue and increase speed of work

•Standardisation in industry and internal processes



Methods of Training

• Individual instruction

•Group instruction

•Lecture method

•Demonstration method

• Written instruction method

•Conference

•Meetings



EDP (Need and Importance)

• Designed with an aim of encouraging self employment.

• Imparts training and motivates potential and existing entrepreneurs to start new business or diversify and expand the existing one.

• Helps employment and wealth creation among educated

unemployed youth.

• Well equipped to face risks and challenges as an

entrepreneur.

•Government needs considerable human and material

resource, importance to detailed planning & implementation.



Phases of EDP

• Select area from existing government policy

guidelines/socio-economic reports.

• Techno-economic survey of the selected area; feasibility

study.

• Identify potential and existing entrepreneurs interested in

starting new business/expansion/diversification.

• Training.

• Follow up and consultancy services.



Selection of entrepreneurs for EDP

•The programme is well publicised and promoted to attract maximum applications for screening.

• Selection of top 25 to 30 applicants only

• Applications screened for:

–Demographics and socio cultural data – age, education, work

exp, financial resources, type of business etc

–Motivation factors – pull factors, source of encouragement,

credibility, endurance, concreteness of plans

–Psychological test results- traits like risk taking, need for

achievement



Training – Course contents

• Introduction to entrepreneurship

• Motivation training

• Essentials of management

• Fundamentals of project feasibility study

• Organising the business

•Plant visit

Organisations providing EDP

National Institute for entrepreneurship and


Small Business Development (NIESBUD)

• Established by Government of India in 1983.

•An apex body for coordination and supervison on activities

of various institutes engaged in entrepreneurial

development.

•Helps evolution of EDP, model syllabi, effective training

strategies, methodology, manuals and tools.

•Activities undertaken:

–Organise and conduct training programmes.

–Coordinate training activities of various agencies/institutes.

–Provide affiliation to such institutes.

–Hold examinations and confer certificates to trainers and

trainees.



Small Industries Service Institutes (SISI)

•Three months part time evening courses in management

•4-6 weeks part time courses in intensive training in

functional areas (marketing, finance)

•Special courses in quality control, HR, production planning,

product development etc

• Mobile workshops imparting training on correct usage of tools and equipment

• Helps with preparation of plant layouts.

•Helps individual firms on specific problems faced.



Small Industries Development


Organisation (SIDO)

• Runs EDP in collaboration with financial institutes,

directorate of industries.

• Gives on the job training on shop floor (carpentry, electrical

devices).

• Sends its officials/trainers to organisations to update their

Knowledge.



National Small Industries Corporation (NSIC)

• Provides apprenticeship for 2 years

•Training supervisory staff of SSI up to 2 years

•Training to engineers up to 2 years

•Training workmen for 12 months

• Training to set up own venture

•Advice on machinery and components

•Production of technologically advanced machines



Entrepreneurship Development Institute of India (EDII)

•EDP for rural entrepreneurship development in U.P and Orissa .

• Develops programmes for entrepreneurial training and
  development.

•Develops innovative training techniques for trainers.

•Focused attention on women entrepreneurs with first such EDP in 1988.

• Famous for organising camps on entrepreneurship.

•Condusted EDP in Sri Lanka, Nepal, Ghana, Kenya etc .



National Alliance of Young Entrepreneurs (NAYE)

• Contribution in encouraging women entrepreneurship

•Set up women’s wing in 1975.

•This wing assists women in:

–Getting better access to resources, infrastructure, markets.

–Identify investment opportunities.

–Attending to problems of individual industries.

–Sponsor participation in trade fairs, exhibitions, conferences.

–Organise seminars, training programmes, workshops.

Entrepreneurship Development Programmes

Entrepreneurship Development: Concept and Context

Many developing countries including India are in a state of transition. They are striving to move from a subsistence-oriented, tightly integrated, inward looking local economy to a surplus seeking, market led, outward looking economy. Such a move is possible only with the emergences of a multitude of a small-scale and rural enterprise in all works of life. This requires building up of a wider base of population capable of entrepreneurial behaviour. If we take India as an example in the context of development, we find that the initial build up of entrepreneurial activity took place in urban center. This was followed by a trickle down effect in rural communities over time. Development strategy today, however, seeks a more proactive and immediate change in India. While much of policy making in this regard treats enterprise creation as a function of appropriate economic conditions(made possible through institutional and economic interventions), others have emphasized training and attitude change as vital elements in the process. But it needs systematic observations and research into the process through which entrepreneurship emerges and sustains itself.

Keeping in view the contribution of small business to employment generation,
balanced regional development of the country, and promotion of exports, the
Government of India’s policy thrust has been on establishing, promoting and
developing the small business sector, particularly the rural industries and the
cottage and village industries in backward areas. Governments both at the
central and state level have been actively participating in promoting
selfemployment opportunities in rural areas by providing assistance in respect
of infrastructure, finance, technology, training, raw-materials, and marketing.
The various policies and schemes of Government assistance for the development of
rural industries insist on the utilisation of local resources and raw materials
and locally available manpower. These are translated into action through various
agencies, departments, corporations, etc., all coming under the purview of the
industries department. All these are primarily concerned with the promotion of
small and rural industries.
Some of the support measures and programmes meant for the promotion of small and
rural industries are discussed below:

National Bank for Agriculture and Rural Development (NABARD) 
NABARD was setup in 1982 to promote integrated rural development. Since then, it
has been adopting a multi-pronged, multi-purpose strategy for the promotion of
rural business enterprises in the country. Apart from agriculture, it supports
small industries, cottage and village industries, and rural artisans using
credit and non-credit approaches. It offers counselling and consultancy services
and organises training and development programmes for rural entrepreneurs.

The Rural Small Business Development Centre (RSBDC)
It is the first of its kind set up by the world association for small and medium
enterprises and is sponsored by NABARD. It works for the benefit of socially and
economically disadvantaged individuals and groups. It aims at providing
management and technical support to current and prospective micro and small
entrepreneurs in rural areas. Since its inception, RSBDC has organised several
programmes on rural entrepreneurship, skill upgradation workshops, mobile
clinics and trainers training programmes, awareness and counselling camps in
various villages of Noida, Greater Noida and Ghaziabad. Through these programmes
it covers a large number of rural unemployed youth and women in several trades,
which includes food processing, soft toys making, ready-made garments, candle
making, incense stick making, two-wheeler repairing and servicing,
vermicomposting, and non conventional building materials.


National Small Industries Corporation (NSIC) 
This was set up in1955 with a view to promote, aid and foster the growth of
small business units in the country. This focuses on the commercial aspects of
these functions.
  1.Supply indigenous and imported machines on easy hire-purchase terms.
  2.Procure, supply and distribute indigenous and imported raw materials.
  3.Export the products of small business units and develop export-worthiness.
  4.Mentoring and advisory services. • Serve as technology business incubators.
  5.Creating awareness on technological upgradation.
  6.Developing software technology parks and technology transfer centres.

A new scheme of ‘performance and credit rating’ of small businesses is
implemented through National Small Industries Corporation (NSIC) with the twin
objectives of (i) sensitising the small industries about the need for credit
rating and (ii) encouraging the small business units to maintain good financial
track record. This is to ensure that they score higher rating for their credit
requirements as and when they approach the financial institutions for their
working capital and investment requirements.


Small Industries Development Bank of India (SIDBI)

1.Set up as an apex bank to provide direct/indirect financial assistance under
  different schemes, to meet credit needs of small business organisations.

2.To coordinate the functions of other institutions in similar activities

The National Commission for Enterprises in the Unorganised Sector (NCEUS) 
The NCEUS was constituted in September, 2004, with the following objectives:

1.To recommend measures considered necessary for improving the productivity of
  small enterprises in the informal sector.

2.To generate more employment opportunities on a sustainable basis, particularly
  in the rural areas.

3.To enhance the competitiveness of the sector in the emerging global
  environment.

 4.To develop linkages of the sector with other institutions in the areas of
  credit, raw materials, infrastructure, technology upgradation, marketing and
  formulation of suitable arrangements for skill development. The commission has
  identified the following issues for detailed consideration:

5.Growth poles for the informal sector in the form of clusters/ hubs, in order
    to get external economic aid.

6.Potential for public-private partnerships in imparting the skills required
    by the informal sector.

7.Provision of micro-finance and related services to the informal sector.

8.Providing social security for the workers in the informal sector.


Rural and Women Entrepreneurship Development (RWED)
The Rural and Women Entrepreneurship Development programme aims at promoting a
conducive business environment and at building institutional and human
capacities that will encourage and support the entrepreneurial initiatives of
rural people and women. RWE provides the following services:
  1.Creating a business environment that encourages initiatives of rural and women
  entrepreneurs.
  2.Enhancing the human and institutional capacities required to foster
  entrepreneurial dynamism and enhance productivity.
  3.Providing training manuals for women entrepreneurs and training them.
  4.Rendering any other advisory services.


World Association for Small and Medium Enterprises (WASME)
It is the only International NonGovernmental Organisation of micro, small and
medium enterprises based in India, which set up an International Committee for
Rural Industrialisation. Its aim is to develop an action plan model for
sustained growth of rural enterprises.
Apart from these, there are several schemes to promote the non-farm sector,
mostly initiated by the Government of India. For instance, there are schemes for
entrepreneurship through subsidised loans like Integrated Rural Development
Programme (IRDP), Prime Minister Rojgar Yojana (PMRY), schemes to provide skills
like Training of Rural Youth for Self Employment (TRYSEM), and schemes to
strengthen the gender component like Development of Women and Children in Rural
Areas (DWCRA).
There are schemes to provide wage employment like Jawahar Rojgar Yojana (JRY),
food for work etc., on rural works programmes to achieve the twin objectives of
creation of rural infrastructure and generation of additional income for the
rural poor, particularly during the lean agricultural season. Last, but not the
least, there are schemes for specific groups of industries such as khadi,
handlooms and handicrafts.


Scheme of Fund for Regeneration of Traditional Industries (SFURTI)
To make the traditional industries more productive and competitive and to
facilitate their sustainable development, the Central Government set up this
fund with Rs. 100 crores allocation to begin within the year 2005. This has to
be implemented by the Ministry of Agro and Rural Industries in collaboration
with State Governments. The main objectives of the scheme are as follows:

 1.To develop clusters of traditional industries in various parts of the country;

  2.To build innovative and traditional skills, improve technologies and encourage
  public-private partnerships, develop market intelligence etc., to make them
  competitive, profitable and sustainable; and

  3.To create sustained employment opportunities in traditional industries.


The District Industries Centers (DICs)

The District Industries Centers Programme was launched on May 1, 1978, with a
view to providing an integrated administrative framework at the district level,
which would look at the problems of industrialisation in the district, in a
composite manner. In other words District Industries Centers is the institution
at the district level which provides all the services and support facilities to
the entrepreneurs for setting up small and village industries.
Identification of suitable schemes, preparation of feasibility reports,
arranging for credit, machinery and equipment, provision of raw materials and
other extension services are the main activities undertaken by these centers.
Broadly DICs are trying to bring change in the attitude of the rural
entrepreneurs and all other connected with economic development in the rural
areas. Even within the narrow spectrum, an attempt is being made to look at some
of the neglected factors such as the rural artisan, the skilled craftsman and
the handloom operator and to tune up these activities with the general process
of rural development being taken up through other national programmes. The DIC
is thus emerging as the focal point for economic and industrial growth at the
district level.