v.

Product development
components
manufacturing
Manufacturing is the portion of product development which is concerned with the planning, direction, and
control of production and allied services performed in the fabrication of key product designs. Specifically,
it deals with the forming, assembling, finishing, packaging, and shipping of a product in general.
The measure of how well manufacturing management perform its function is often a simple comparison
between the profits manufacturing generates as compared with the capital money placed into the
manufacturing operation, namely the rate of return in the capital investment.
When this rate of return principle is applied to all input cost-labor, materials, machinery, utilities, building
facilities-and compared to total value of product output, it is probably the most comprehensive measure of
the effectiveness of manufacturing performance. Other performance measures include those of material or
equipment such as utilization, delivery schedule conformance, budget adherence, extent of operating cost
reduction, reduction on rejects, labor productivity, and strata of the employee morale.
Manufacturing management’s continuous objective is that of improving productivity of the capital invested
in the operation, and of materials, machinery, and manpower. Traditionally, this improvement is achieved
through employing more effective utilization of present resources and by replacement or modernization of
existing equipment and facilities with more efficient ones.
SCOPE OF MANUFACTURING

Over the years, many auxiliary management and engineering services have been
introduced in the manufacturing industries to support production or line
management. Rather than performing these auxiliary functions itself, in most
companies the line management depends upon the advise, guidance or services of
specialized staff departments. Most typically, these department services include::
PRODUCTION PLANNING which furnishes production schedules and
machine loading programs, and expedites work as it flows through the plant.
INVENTORY CONTROL which works closely with Marketing and Finance to
determine when, and how, inventory should be accomulated.
INDUSTRIAL ENGINEERING is the means by which engineering principles
are applied to manufacturing problems. Typically, this function deals with work
measurement, work methods, wage incentives, and standard costs. In most plants
it also encompasses materials handling, plant layout, production machinery
specifications, and manufacturing engineering.
PLANT MAINTENANCE has to do with the upkeep and repair of production equipment,
buildings, and plant services.
PLANT ENGINEERING is concerned with the design, construction, and installation of
plant facilities and services.
QUALITY CONTRROL responsibility includes inspection and test of inprocess and
finished products, utilizing statistical techniques in order to control product manufacture
within specified quality limits.
PURCHASING supervises the procurement function, and exerts considerable influence
upon the purchase of the materials, supplies, services, equipment, and facilities, as they
facilitate or impede the production process.
TRAFFIC is generally concerned with scheduling of raw materials into the plant and
delivery of finished goods from the plant warehouse to either regional warehouse or the
customer’s facility.
PRODUCT DESIGN normally lies between the realm of manufacturing and marketing,
the six basics of manufacturing strategy

Development of machines with higher performance capabilities plus intensification of

consumer demands foe better products are now bringing about renewed efforts to
improve product quality and reliability. All the activities in the line of material flow-
from suppliers through fabrication and assembly and culminating in product
distribution must be integrated for manufacturing strategy formulation. The crucial
decisions concerning capacity and its location must also be included, and aspects of
operating decisions that have strategic significance must be checked. The six basics of
manufacturing strategy are: (1) Positioning the production system, (2) Capacity
and location decisions, (3) Product and Process Technology, (4) The Work Force
and the Job Design, (5) Strategic Implications of Operating Decisions, and (6)
Strategies regarding Suppliers, or what is known as Vertical Integration.
process choices: basic hardware manufacturing processes
Casting and Molding Machining Metal Working Assembly Finishing
Sand casting Turning Forging Soldering Cleaning
Shell casting Drilling Extruding Brazing Blasting
Investment casting Milling Trimming Mechanical fastening Painting
Die casting Shaping Trimming Welding Deburring
Permanent mold casting Cutting Drawing Gluing Plating
Powered metal molding Broaching Rolling Press fitting Heat treating

Compression molding Grinding Forming Shrink fitting Buffing

Transfer Honing Coining Polishing
Extrusion Etching Swagging Hardening
Injection molding Spinning
Lamination
process technology
Process Technology refers to the generic ways of organizing process flows in product fabrication.
Maintaining control over a process technology requires that the operations manager identify and carry out
certain key tasks that depend on the basic work flow characteristics of the process.
[]PROJECT. A project work flow pattern is often used by firms that produce a variety of customized
products such as prototypes that requires the coordinated input of a variety of resources.
[]JOB SHOP. A job shop process flow pattern generally is employed when a firm produces small batches
of a large number of different products most of which require a different set or sequence of processing
steps. Commercial printing firms, machine tool shops, and plants that make custom-designed printed
circuit boards are all example of such job shop technologies.
[]BATCH OR DECOUPLED LINE PROCESS. A batch or decoupled line flow process is essentially a
somewhat standardized job shop. Such a process is generally adopted when a business has developed a
relatively stable line of products, each of which is produced in periodic batches-either to customer order or
inventory.
[]ASSEMBLY LINE PROCESS. In this type of production technology, the work stations are laid out in
the sequence needed to produce a group of highly similar products. Examples include the assembly of
automobiles, digital watches, and children’s toys.
[]CONTINUOUS FLOW PROCESS. This type of process technology organization occupies the
most specialized end of the continuum. Oil refineries, high volume chemical plants, and food
processing operations such as cereal plants or flour mills are examples of continuous process.
ergonomics
Ergonomics is defined as a study of the relationships between man and his environment and the
application of anatomical, physiological and psychological knowledge to the problems arising
therefrom.
Ergonomics is concerned with making things easier to use by suiting them to the needs of the user.
as applied to man-machine situations, ergonomics is used to design favorable environments which
will efficiently give the right amount of work to man and the machines he operates.
Some of the relevant sciences closely related to ergonomics are as follow:
[]FUNCTIONAL ANATOMY. This field is concerned with the human body framework
posture and the use of muscles. It can provide information on the best ways in which force
can be applied on objects lifted and limits of joint movements.
[]ANTHROPOMETRY. This field of specialization yields data on body sizes and
dimensions, both for male and female. It can help with optimum designs for height and size
of working spaces, position of hand and foot controls and the height and size of seating
postures.
[]WORK PHYSIOLOGY. This field covers the whole strata of bodily activity, particularly
with reference to the many different exposures to varied environments. Reasonable
measurement of physical work can be made in terms of calorie consumption, and on the
practical side, it is possible to calculate organization and rest pauses.
[]HUMAN PSYCHOLOGY. This field covers all areas of behaviour and performance,
particularly the mental and emotional aspects of human beings .
packaging

Packaging is indispensable both as an adjunct to products and as an aid in the supply of products to
consumers. It is an integral part of the sequence of operations designed to facilitate the handling,
storage, sale, protection and use of products.
functions of packaging
Effective packaging involves more than simply putting products in containers and covering them with
wrappers. Packaging materials serve several primary functions. First, they protect the product or
maintain its functional form. Product tampering recently has become a problem of marketers for
many types of products, and several packaging techniques are being used now to counter the problem.
Fluids such as milk, orange juice, and hair spray need packages that preserve and protect them; the
packaging should effectively reduce damage that could affect the product’s usefulness and increase
costs.
Another function of packaging is to offer the convenience that consumers often look for. The size or
shape of the package may relate to the product’s storage, convenience of use, or replacement rate.
Small, single-serving cans of vegetables, for instance, may prevent waste and facilitate storage.
A third function of packaging is to promote a product by graphically communicating its features, uses,
package development

Package development for individual products, hardware, applicances, and products

which require protective shipping or have special use features, is quite a necessity for
protection and quality assurance.
The major focal point in contemporary packaging is to improve the characteristics of
merchandise. This involves the technology for selling and improving convenience of use,
in addition to the technology for preserving and protecting merchandise quality.
the goods.
Packaging is classified into two types: Transport Packaging and Consumer
Packaging.
TRANSPORT PACKAGING is a packaging field of strong physical character,
designed to protect and pack goods in an easy way, and to prepare containers for
transporting and storing materials, manufactured goods, and others.
CONSUMER PACKAGING is involved with packages in convenient forms to give
information about the contents of the package while at the same time protecting the
goods.
materials of packaging
The degree and type of packaging needed depends almost totally on the nature of the
product being packaged. Some of the basic requirements of packaging would entirely
depend on hygiene, disposability, suitability to available methods of transport, and the
quantity of product contained for the market concerned.
The package must also protect the product from contamination (flavors, odors,
poison), infestations (bugs, bacteria, moulds), and also losses (physical damage,
pilferage, wastage), among others.
Furthermore, packages must be functionally suitable, easy to make up and store
before use, easy to open and remove goods, easy to transport and handle, and must be
economical.
Among the materials available for use in containers are cardboard, corrugated
paperboards, wood crates, wood-and-wire combinations, metal and foils, plastic,
styrofoam, and glass bottles.
elements of packaging
THE PRODUCT The product is the item purchase for ultimate
consumption by the user or consumer.
PRIMARY PACKAGE The package in direct contact with the product. Examples are
cans, bottles, folding cartons, pouches, and others.
SUB-SECONDARY A consumer or store multi-package. For example, a six pack
carrier for beverages, or a corrugated fiber container grouping
a number of primary packs or a quantity of products, which is
then grouped into the shipping container.
SHIPPING CONTAINER PACKAGE The physical distribution unit or secondary container. For
example, corrugated fiberboard trays with shrink overwrap,
bundles of paper-wrapped sugar packs, plastic wire or
wooden crates.
FITMENTS Partitions, collars, cells, moulded cushioning, etc., which are
included in the package to cushion the product or contribute
to the column strength of the package.
TERTIARY PACKAGE Unit loads or similar groupings of secondary packages.
package data-purposes of packaging
Information to be sought in package research and design are as follows:
[]DETAILED DESCRIPTION of the uses of the product, the conditions under which it is used, the
type of user, and any supplementary devices used with the product.
[]SIZES, possible combinations of packages, sample packages for particular markets, and the various
put-ups required.
[]PREDICTED VOLUME: minimum order quantities for Packaging Components below which costs
can be eliminated early.
[]PROCESSING OF PRODUCT AND EXISTING PACKAGING FACILITIES: special
processing(sterilization, vacuum packaging, etc.); automated equipment and machine limitations.
[]CHANNEL OF DISTRIBUTION: requirement for storage, shipping, handling, marketings, etc.
[]PROMOTIONAL REQUIREMENTS: The package should almost always be designed with
features which will draw attention and please the consumer. Promotional requirements are dictated by
the channel of distribution, advertising media, and type of the consumer.
[]LEGAL REQUIREMENTS: legal aspects of the copy; patentable devices, Food and Drug
Administration approval, deceptive packaging; etc.
[]RESEARCH AND PHARMACOLOGICAL REQUIREMENTS, where applicable, sterility, design of
anatomical devices, dosages, and similar aspects.
[]LABELING, USE DIRECTIONS, RECIPES. Often these are the most important means of producing
repeat use as well as initial sales for a product.
GENERAL IN-HOME IN-STORE

To protect contents To be functional(easy-to-open, To gain attention on shelf

close store use dispose)
To satisfy distributor requirements To reinforce product satisfaction To identify the product
To identify brand and differentiate
it from competition
To satisfy retailer requirements To remind customer when to To say something good about the
repurchase product
To be adaptable to illustration in To remind customer to buy the To induce the customer to buy
both color and black/white same brand
marketing
Marketing Plan For New Product Development
I. Introduction. This section briefly describes the product, tells who prepared the plan, and its timing.
II. Situation analysis.
A. Market description.
1. Consumers, users, and other market participants.
2. Buying processes pertinent to this plan.
3. Direct and indirect competitors.
4. Current competitive strategies.
5. Market shares on sales, profits, and budgets.
6. Available distribution structure, plus attitudes and practices.
7. Key environmental or exogenous factors.
B. Full description of new product, including all pertinent test data and comparisons with competition.
III. Summary of opportunities and problems.
A. Key exploitable market opportunities.
IV. Strategy.
A. Overall guiding statement, including key actions and their quantitative and qualitative
objectives.
B. Market targets/segments, with positioning for each.
C. Overall marketing efforts.
1. General role for product, including planned changes.
2. General role for advertising, including copy.
3. General role for personal selling.
4. General role for such other tools as sampling and trade shows.
Copy platforms for creative units.
5. General role for distributors (wholesale, retail).
6. Price policy, including discounts and planned changes.
V. Economic Summary.
A. Sales forecast in dollars and units.
B. Expense budgets by category of activity.
C. Contribution to profit, with pro form a income statement.
D. Risk Statement: major problems, uncertainties.
E. Future capital expenditures, with cash flows.
VI. Tactical Plans. This section is situational to the firm. It includes each tool, what will be
done with it, objectives, people responsible, schedule, creative units needed , etc.
VII. Control
A. Key control objectives for reporting purposes.
B. Key internal or external contingencies to watch.
C. Informal generation schedule.
VIII. Summary of major support activities needed, including data processing, warehousing, technical
service, R&D, finance, personnel, public relations.
IX. Chronological schedule of activities.
Marketing is more than just advertising or selling a product. Marketing is the prime objective of
product development in bringing the requisite profit to the product’s manufacturer. Marketing focuses
on making the product available at the right place, at the right time, and at a price that is acceptable to
costumers, and also on informing customers in a way that helps them determine if the product is
consistent with their needs.
Marketing includes all the activities necessary to place tangible products in the hands of household
consumers and industial users. The role of marketing in product development is quite pervasive, its
results are reflected in the creation of customers who are supposed to patronize the products being
developed, which also determines whether a business could survive or not. Usually, a Marketing
Manager is the one appointed to tackle thid kind of problem. In order for him to be successful, he
should formulate a systematic approach in handling the balance between the needs of the marketing
mix (which is composed of the salesforce effort, advertising, product quality and service), the business
functions (manufacturing, finance, marketing), and the external system (customer, distributors, and
significant marketing terms
Significant terms that a product designer should know about marketing are as follows:
[]MARKETING MANAGEMENT. The process of planning, organizing. implementing and controlling
marketing activities to facilitate the expedite product and service exchange effectively and efficiently.
[]MARKETING STRATEGY. The process of identifying, analyzing, choosing, and exploiting marketing
opportunities to fulfill a company’s mission and objectives. The process is made up of five major steps,
namely (1) analyzing marketing opportunities, (2) selecting target markets, (3) formulating the
marketing mix strategy, (4) implementing the marketing strategy, and (5) marketing control.
[]MARKETING RESEARCH. The systematic and objective gathering, recording, and analyzing of data
about problems relating to the marketing of goods and services, and formulating the appropriate solutions
to counteract such problems.
[]MARKETING INFORMATION SYSTEM(MIS). A continuous process which provide a constant
flow of information from both inside and outside the organization which serves as the basis for the
decision-making in specified responsibility areas such as information on prices, advertising expenditures,
sales, distribution expenses, competition, markets and public policies.
[]MARKET SEGMENTATION. The process of breaking up a large, heterogenous market into segments
or smaller markets, based on specific buying needs, interests, and behavior of consumers.
[]MARKETING ORGANIZATION. The organizational structures of a company according to functions,
products, territories or regions, types of customers or a combination thereof.
[]MARKETING CONTROL. The means of measuring and correcting the performance activities of
subordinates in ensuring conformity to management plans. There are four forms:
1. Annual Plan Control- pertains to the steps made to measure performance against goals within a year
including remedial actions necessary.
2. Marketing Cost Analysis- the actual measurement of the profitability of specific products, territories,
and channels of distribution.
3. Efficiency Control- ways of upgrading the effect of various marketing implements and expenditures.
4. Strategic Control- involves an orderly evaluation of the firm in relation to its marketing environment.
[]MARKETING MIX. Refers to the combination of variables necessary for efficient and successful
marketing. This consists of the four P’s of Marketing: Product, Price, Place, and Promotion.
THE FOUR P’S OF MARKETING
MIX VARIABLES MAJOR ACTIVITIES & DECISIONS

PRODUCT Develop and test-market new products; modify existing products; eliminate products
that do not satisfy customer’s desires; formulate brand names and branding policies;
create product warranties and establish procedures for fulfilling warranties; plan
packages , including materials, sizes; shapes, colors, and designs.
PLACE Analyze various types of distribution channels; design appropriate distribution
channels; design an effective program for dealer relations; establish distribution
centers; formulate and implement procedures for efficient product handling; set up
inventory controls; analyze transportation methods; minimize total distribution costs;
analyze possible locations for plants and wholesale or retail outlets.
PROMOTION Set promotional objective; determine major types of promotion to be used; select and
schedule advertising media; develop advertising messages; measure the effectiveness
of advertisements; recruit and train salespersons; formulate compensation programs
for sales personnel; establish sales territories; plan and implement sales promotion
efforts such as free samples, coupons, displays, sweepstakes, sales, contests, and
cooperative advertising programs; prepare and disseminate publicity releases.
PRICE Analyze competitors’ prices; formulate pricing policies; determine method or
[]MARKETING CLASSIFICATIONS. Markets are usually classified into four categories:
(1) pure competition, (2) monopoly, (3) oligopoly, and (4) monopolistic competition.
[]MARKET SHARE. The amount of competitive advantage a firm fares relative to its
competitors in maintaining product patronage and in preventing competing product
substitution.
[]INTERNATIONAL MARKETING. The performance of business activities that direct the
flow of a company’s goals and services to consumers or users in more than one nation.
[]CHANNELS OF DISTRIBUTION. Are made up of middlemen performing transactional,
logistical and facilitating functions in the transfer of physical possession of products from
producers to the consumers.
[]MARKETING AUDIT. A systematic examination of the marketing group’s objectives,
strategies, organization, and performance. Its primary purpose is to identify weaknesses in
ongoing marketing operations and plan the necessary improvements to correct these
product promotions
Promotion consists of a mix of personal and in personal communications directed towards various audiences to stimulate and
maintain demand for the company ‘s products, product lines, and services. The major components of industrial promotion are
personal selling, advertising, sales promotion, and publicity; These combine form what is called the “promotional mix”.
major forms of product promotion
Four major forms of product promotion are combined to accomplish an organization’s goals during the stages of
organizational buying process. They are categorized as follows:
PERSONAL SELLING. Usually the cornerstone of the promotional effort, involves direct contact with the potential and
present customer, either in person or by telephone.
ADVERTISING. An impersonal method of communication that utilizes a variety of different media for a fee- has the
capability to reach a much larger number of potential buyers, users, influencers, deciders, and gatekeepers than those
impersonal selling. This type includes broadcasting, cable television, direct mails, magazines, newspapers, and outdoor
advertising.
SALES PROMOTION. A catchall category of personal and impersonal communication tactics usually directed toward
specific purchases. Trade shows, samples, premiums, rebates, trade-in-allowances, calendars, and customer entertainment are
familiar tactics. They are generally short-term in nature.
PUBLICITY. This type attempts to influence target groups without actually paying to do so. It involves the release of the
company or product information to print or broadcast media with the hope that it will be disseminated. Impersonal in nature,
types of promotional alternatives

[]GENERAL BUSINESS PUBLICATIONS

General business are aimed at a wide variety of markets and buying influences(e.g. Fortune Mag,
Business Week, Forbes).
[]TRADE PUBLICATIONS
Vertical publications are directed towards a specific industry and its members(e.g. Modern
Plastics, Iron Age, Ceramics).
Horizontal publications are directed towards a specific task, function or area of concentration
across multiple industries(e.g. Purchasing Modern Materials Handling, Production Engineering,
Electronic Design).
[]INDUSTRIAL DIRECTORIES
A compiled list of known suppliers within a large variety of product areas. They are intended for
use as a reference for industrial buyers. There are general directories covering most industries,
directories for individual states, and private directories (e.g. Thomas Register).
[]TRADE SHOWS
A formal exhibition at which a supplier rents space to produce and display its products and make sales.
Competitor’s products are also demonstrated at these exhibitions. Personal contacts with a large number of
prospective and present customers in the industry can be established in a short period of time and in one
location.
[]CATALOGS
Printed material containing information describing a supplier’s products, their applications, and other
product specifications (e.g. price) which is distributed among organizational buying influences for use as a
reference and buying guide. Catalogs often contain enough information so the buyer can purchase products
direct from them.
[]DIRECT MAIL
Letters or brochures sent to selected buying influencers to provide information on a supplier and its
products or services. This type of media allows a marketer to relay personalized messages to these
influencers.
[]TECHNICAL REPORTS. Written, detailed descriptions of product design specifications and
performance capabilities. Results of product testing are summarized, including data on quality and
reliability.
[]SAMPLES. Products given to certain customers on a trial basis for the purpose of promoting and
demonstrating a supplier’s product.
[]PUBLICITY. A presentation of company and product information for which the marketer does not
pay and does not control. These presentations appear in media forms (e.g. newspapers, trade journals)
that can increase public awareness and can develop a favorable image for an organization.
[]NOVELTIES. Free gifts such as calendars, pens, and paperweights that are imprinted with a
company’s name and possibly an advertising message. These small, useful items are given to
customers as a reminder of a supplier and its products or services.
[]TELEMARKETING. Using the telephone to find out about a prospect’s interest in the company’s
products, to create an awareness or understanding of those products, and even to make a sales
presentation or take an order.
advertising
Advertising is one of the best tools in the marketing and promotion of a finished product. Its function
is to inform and enhance the value of the product being advertised. While most effective advertising to
some degree encompasses both, advertising is usually strategically designed to accomplish four
objectives, they are (1) to inform, (2) to persuade, (3) to influence, and (4) to entertain.
THE EIGHT M-FORMULA
Effective advertising should follow a plan. There is no one best way to go about planning an
advertising campaign, but in general, product marketers should have good answers to the following
eight questions:
1. The Management Question: Who will manage the advertising program?
2. The Money Question: How much should be spent on advertising as opposed to other
forms of selling?
3. The Market Question: To whom should the advertising be directed?
4. The Message Question: What should the ads say about the product?
5. The Media Question: What types and combinations of media should be used?
6. The Macro-scheduling How long should the advertising campaign be in effect

Question: before changing ads or themes?

7. The Micro-scheduling At what times and dates would it be best for ads to appear
during the course of the campaign?
8. The Measurement Question: How will the effectiveness of the advertising campaign be
measured and how will the campaign be evaluated and
controlled?
must’s for an effective advertising campaign

The following tips are quite important when designing for an effective advertising campaign:
1. A SUCCESSFUL ADVERTISEMENT MUST HAVE A HIGH DEGREE OF VISUAL
MAGNETISM. A good industrial advertisement should capture the reader’s attention so that a single
component- either the picture, the headline, or the text- must dominate the area.
2. A SUCCESSFUL ADVERTISEMENT MUST SELECT THE RIGHT AUDIENCE. A reader’s first
glance at a picture or headline should let him know that the advertisement contains information that related to
his job interests.
3. A SUCCESSFUL ADVERTISEMENT MUST INVITE THE READER INTO THE SCENE. The
advertisement should visualize, illuminate, and dramatize the selling proposition so that it will appeal to the
reader’s lifestyle.
4. A SUCCESSFUL ADVERTISEMENT MUST PROMISE A REWARD. A good advertisement should
give the reader specific promise of benefits whether explicit or implicit, positive or negative.
5. A SUCCESSFUL ADVERTISEMENT MUST BACK UP TO THE PROMISE. An advertisement must
provide evidence to support the validity of the promise through a description of the product’s characteristics, a
6. A SUCCESSFUL ADVERTISEMENT MUST PRESNT THE SELLING PROPOSITION IN
LOGICAL SEQUENCE. The advertisement should be organized so that the reader is guided through the
material in the sequence consistent with the logical development of the selling proposition.
7. A SUCCESSFUL ADVERTISSMENT MUST TALK “PERSON-TO-PERSON”. The
advertisement’s copy should speak to the reader as an individual, in friendly tone, and in terms of the
reader’s business. The writing style should be simple using short words, short sentences, short paragraphs,
active rather than passive voice, and no advertising cliches.
8. SUCCESSFUL ADVERTISING MUST BE EASY TO READ. The advertisement’s type should
appear black on white, stand clear of inference from other parts of the ad, and should not be more than half
the width of the ad.
9. SUCCESSFUL ADVERTISING MUST EMPHASIZE THE SERVICE, NOT THE SOURCE. A
good advertisement should make the reader want to buy or consider buying before telling him where to
buy it.
10.SUCCESSFUL ADVERTISING MUST REFLECT THE COMPANY’S CHARACTER. The
advertisement should favorably portray the company’s personality and remain consistent over time and
trade shows
Trade shows are promotional events that permit the formal exhibition of a manufacturer’s products for the
purpose of demonstrating, promoting, and ultimately selling these products. A show is an excellent forum for
delivering a message to, and making personal contacts with, a large number of present and prospective
customers at one location.
The following are some of the major reasons why product exhibitors participate in Trade Shows:
1. TO GENERATE INQUIRIES AND TRADE LEADS. Most of the people who visit fairs are already
conversant with the mechanics of the exhibits. They have come to be educated and to sell an idea or product.
2. TO GENERATE SALES. Selling fairs have proven to have the capacity to draw a crowd. Exhibitors
increase sales in a matter of a few days. It becomes ideal for unloading inventory and generating cash.
3. TO INTRODUCE A NEW PRODUCT. The audience, together with the publicity generated, make a fair a
suitable place to begin initial marketing. It is relatively cheaper than mounting an introductory sales campaign.
4. TO TEST AND FEEL THE MARKET. Fairs serve as a perfect customer testing laboratory where one
tries the acceptability of one’s product in his target market. Feedbacks from the customers are immediate and
exacting.
5. TO GET ORDERS ON THE FLOOR. Some product which are either too bulky and or too expensive
to carry in inventory are ordered through the exhibitors. His booth, thus, acts as a profitable order-taking
desk.
6. TO LOOK FOR AGENTS AND DEALER. Big buyers, agents and distributors usually attend
international fairs in big numbers. They come from all parts of the world looking for new products they
can sell in their own markets.
7. TO MAINTAIN COMPANY EXPOSURE IN THE MARKET. Since fairs are a major part of a
extensive marketing strategy, there have been some instances wherein they become prestige events for
certain product categories. It has become imperative for some companies to be seen in fairs in order to
maintain their public image. In this case, fair participation has become part of institutional advertising.
8. TO CREATE A NEW IMAGE. The live display situation in fairs is ideal for the creation of a new
image, especially for those companies who cater to a small specific market. It is most effective when the
people who make up that market are most likely to be present in the fair.
9. TO DEMONSTRATE EQUIPMENT AND GIVE THE CLIENTS A MORE ACCESIBLE VENUE
FOR SOLVING TECHNICAL MATERS. If the factory is located in the outskirts of the city and the
equipment is too heavy to carry around, then a demonstration in a fair held in an accessible venue provides the
best way to solve the customer’s problems and ensure full comprehension on the workings of the equipment.
10.TO BOOST MORALE OF COMPANY EMPLOYEES AND DEALERS. Participation in the fair also
shows the company’s dynamism and capability to afford the exposure. Because of the atmosphere prevailing
in fairs, they have come to connotation of being on a holiday, and are decidedly looked upon as working
vacations.
11.TO STUDY COMPETITION AND ACQUIRE NEW IDEA. With the concentration of the competitors
present, one can readily get an overview of competitive products, packaging, promotional schemes,
organizational strengths, buyer preferences, industry trends and competitive pricing.
The following are some of the major reasons why buyers attend trade shows:
1. TO LEARN NEW PROCESSES, PRODUCTS AND TECHNOLOGY. Since exhibitors use fairs as a
launching pad for new products, the fair ground is the best place and the cheapest way to learn and discover
new things.
2. TO TAKE ADVANTAGE OF LOWER PRICES. Exhibitors in fairs, especially consumer fairs
normally offer special discounts on prices as a special promotion.
3. TO STUDY COMPETING PRODUCTS. A specialized exhibition, say in Food and Beverage
equipment, would have all those in the industry showing their wares, this offers a unique time saving and
inexpensive opportunity for a comprehensive comparison of different brands by the visitor.
4. TO BE ENTERTAINED. Since displays in exhibitors are accompanied by demonstrations, special
events and other promotional gimmicks, it is invariably a good place for entertainment.
5. TO MEET THE RIGHT PEOPLE. The fair atmosphere provides a good place to know people or
personalities who would otherwise be difficult to meet.
FAIR INFORMATION
An exhibitor normally needs a number of information which concerns the many physical and logistical
arrangements necessary for joining a trade show or exhibit. Most of these information are usually provided
by the organizers with the set of contact forms sent to all prospective exhibitors.
The following is a Checklist of Trade Fair Information:
[] Place and dates
[] Name and address of organizer
[] Arrangement of halls and fair
[] Spaces available, Cost of space
[] Availability description and cost of erected stands
[] Closing date for application of space
[] Utilities available, costs, deadlines for application
[] Furnishings available, costs
[] Availability and cost of local staffs-designers, decorators, receptionists, interpreters, constructors,
photographers, freight clearing agents, cleaning service
[] Insurance and security arrangements
[] Promotional material available from the organizers
[] Catalogue deadlines and advertising rates
[] Availability of poster advertising in fair grounds
[] Organizers press publicity service, deadlines, and requirements
[] Packing requirements of the organizer
[] Deadline for arrival of stands and goods
[] Date of your country’s day of honor at the fair
[] Hotel locations and rates
[] Reception facilities
TIPS TO BETTER DISPLAYS
The effectiveness of an exhibit is directly proportional to the quality of information used as a basis for the
overall design concept. It is always better to create a positive selling atmosphere than an existing design
atmosphere.
The first step to better display is creating an image. Three concepts go into creating an image:
(1) the selection of merchandise, (2) the quantity of merchandise to be displayed, and (3) sequencing
of the merchandise. When all three components work together, they create the kind of excitement that
enduces people to buy.
Selection is the first step. To create an effective display, you have to choose the merchandise carefully.
Quantity, is simply how much merchandise do you want to include in the display? Do you want the
display to highlight one or two items from a category or do you want it to hold all of one type of product?
Sequencing relates to how you arrange the display. There is a lot to be said for the order in which you
place your merchandise.
Four major types of exhibit techniques employed by anexhibition designer in the design and construction
of booth layout are (1) static displays, (2) attention-getters, (3) audio-visual presentations, and (4) live
demonstrations.
[] STATIC DISPLAY. Static display features areas and systematic diagrams for products without hands-on
demonstrations of specific processes. The emphasis is on salespeople working individually with prospects.
[] ATTENTION-GETTERS. This include special performances such as magic acts, celebrities, and
contests meant to attract large crowds.
[] AUDIO-VISUAL PRESENTATIONS. This type includes films, tapes, or computer screen displays,
and can involve multimedia presentations enhancing the product’s appearance.
[] LIVE PRODUCT DEMONSTRATIONS. These involve actual product usage and are quite effective;
should be used whenever possible. This employs the expertise of craftsmen, salesmen, and technical
consultants.
Here are TEN TIPS from John Landes, a visual merchandising specialist, on the specifics of effective
displays:
1. MAKE A MESS. The bigger the mess you make while decorating, the more people will come to the
booth.
2. DON’T FEEL FORCED TO USE ONLY DISPLAY FIXTURES. Anything that will hold a piece of
3. PAY ATTENTION TO LIGHTING. Even the most interesting display will suffer if it is poorly lit. If
there are no track or spot lights in the area of your display, try some clip-on spotlights available at the
hardware store.
4. ADD DIMENSIONS. Try to create at least three different levels in any large displays. Create these
levels by using risers of some sort, which could be simply painted or paper-covered cardboard tubes.
5. UNIFY THE LOOK. Even related products can look divided in a display if the colors do not work
together.
6. GO FOR THE PERSONAL LOOK. Use props in your display to make it unique. Seasonal and
unexpected props will always generate interests.
7. TRY HUMOR. Humor is one gimmick that always works. Even a display that borders on being silly
will catch your customer’s eye.
8. MIX PRICE POINTS. Mix higher and lower-end merchandise in one display to spur sales of both
categories. To do this effectively, you must tone down the display of the higher-end products to make them
less intimidating to the customer with only a small amount to spend .
9. PLACE DECORATIONS CAREFULLY. It is not how much trim or how many decorations
you hang, it is where you hang them that creates the impact.
10.CREATE AN EVENT. Go for excitement in your decorating. If you get people into the booth,
and then get them excited about being there, how can they resist buying? To create an event, the
three keys are (1) Color, (2) Shape, and (3) Motion.
[] Use lots of strong colors; these generate more excitement in a display than pastels, simply
because they catch the customer’s eye and hold it.
[] Go for large, identifiable shapes. A rocking horse, a Christmas tree, or a chicken coop all work
because they are easily recognizable.
[] Create motion in a display anyway you can. Things that move or light up attract attention.
Customers will be drawn to the display to see what else it does.
thanks
for
listening