Investment Fund Market-What is the investment fund market?
An overview of the investment funds market
The investment fund market is the place of investment fund transactions, it is part of the stock market.
Throughout the development of the investment fund market in the world history can be seen, the investment fund market has been able to become an integral part of the industry financial markets, partly because of the investment fund as an investment tool inherent features and unique advantages, the other hand, the countries to strengthen the results of the investment fund market regulators. The investment fund market, small to large, from specifications to standardize development has not been easy, there was heavy lessons due to lack of supervision.
The investment fund market is more developed in Britain, America, Japan and other countries no not benefit from the regulatory level of the Fund continue to improve the regulatory level of a large extent depends on the fund the establishment of the regulatory system and the degree of perfection. Due to different national situation, and in which specific conditions and condition of the investment fund market development objectives and requirements, the use of the fund market selection and supervision of the regulatory body means also showed significant differences, which formed a unique practice investment fund market regulatory approach.
Thursday, February 9, 2012
Venture Capital Firms
Venture Capital Firms-What is venture capital firms?
Venture capital firms - an overview:
The risk of investors who risk investment. Venture capital refers to capital investment bears a larger failure of dangerous high-tech development area, to the period after the success of a business investment behavior of high capital gains. Venture capital support in the market economic system is an important means of scientific and technological achievements, and its essence is the success of the project group by investing in a high-risk, high return projects, will be sold or listed to achieve the owner's equity realizable , then not only can compensate for the losses of failed projects, but also enable investors to earn high returns. We usually refer to the risk of investment, specifically refers to the investment activities of those associated with high-tech industrialization phase, referred to as the high-tech venture capital.
Venture capital firms - responsibilities:
In the venture capital market, venture capitalists investment funds to invest in venture companies, and therefore need to be very cautious in order to obtain high profits. And general investors in a dominant position, this stage many of the agreements and legal documents drafted by venture capitalists, lawyers, and lawyers are at a critical position. Its business and responsibilities include:
First, to assist the investor survey Ventures
High-risk venture capital, investors need to do comprehensive investigation of all aspects of understanding, in order to make rational decisions. Understand the scope of the company's history, business, product, the original share capital, management structure, intangible assets, external claims and liabilities and so on. Venture capital returns from the economic point of view will the company survey, but this time the lawyers from a legal perspective to assist in the careful investigation, the projects include: organizational forms and ownership structure; registered capital and funding in place; company managers true; of important personal information management with the company's labor contract and the contract with the previous employer, the main attention to the terms involving trade secrets; report and debts of the company's assets; the company's dealings, contracts and other legal documents; the company has the knowledge the authenticity and legitimacy of property rights; Litigation or arbitration cases; the relevant government approval documents in place. If the company provided false or all kinds of non-standard practices. The lawyers should submit written comments.
Second, to assist investors in commercial negotiations
The role of lawyers in the commercial negotiations can not be ignored, because many legal issues involved need to be resolved immediately, or it may make the terms of the negotiations in violation of our laws invalid, which may be very huge economic losses to the principal. At this time, the lawyer's duty: summary of the relevant legal issues, which can help investors to fully understand the law relating to feeling very sudden and frustrated, and will not in the negotiations; in the negotiations in addition to answer investors, but also legitimate, constructive comments in accordance with the actual situation of the negotiations, and inform both sides of its legal consequences for the client to choose.
Third, review and drafting of relevant legal instruments
Review of legal documents is a venture company to provide the cooperation plan, legal opinions, the new staff agreement, and need a lawyer to draft legal documents generally include legal opinions and investment agreements, one of the most important thing is that the investment agreement, because it is the basis of legal documents for this project, the agreement is complete and accurate, which directly affect the interests of both sides. Generally speaking, the draft investment agreement need to note the following:
An investment agreement is signed and the controlling shareholder of the company rather than risk the company; and because venture capital is not an ordinary way of corporate finance, investment is to get the company's equity, so the investment will affect the company's equity allocation and management of the company, so this The agreement should be signed and not signed and the company and shareholders.
2, the general shareholders' capital contribution in the form of transfer agreement. Venture capital investment in pursuit of high profits, high-risk, between the two sides should carry out a variety of special convention, and should not simply provide the content of the equity transfer agreement.
3, in terms of the agreement, in addition to the company's self-described, the contribution of the basic terms of the amount of return method should also be stated in accordance with the agreement to amend the company charter to strengthen the constraints of the Board of Directors of the Company and other agencies; investors investment, should be sent to enrich management, and specify whether to replace the manager; held by investors in the equity transfer and liquidation when priority; investors to fulfill the obligations of a prerequisite in order to reduce the risk of the investment side.
Venture capital firms - an overview:
The risk of investors who risk investment. Venture capital refers to capital investment bears a larger failure of dangerous high-tech development area, to the period after the success of a business investment behavior of high capital gains. Venture capital support in the market economic system is an important means of scientific and technological achievements, and its essence is the success of the project group by investing in a high-risk, high return projects, will be sold or listed to achieve the owner's equity realizable , then not only can compensate for the losses of failed projects, but also enable investors to earn high returns. We usually refer to the risk of investment, specifically refers to the investment activities of those associated with high-tech industrialization phase, referred to as the high-tech venture capital.
Venture capital firms - responsibilities:
In the venture capital market, venture capitalists investment funds to invest in venture companies, and therefore need to be very cautious in order to obtain high profits. And general investors in a dominant position, this stage many of the agreements and legal documents drafted by venture capitalists, lawyers, and lawyers are at a critical position. Its business and responsibilities include:
First, to assist the investor survey Ventures
High-risk venture capital, investors need to do comprehensive investigation of all aspects of understanding, in order to make rational decisions. Understand the scope of the company's history, business, product, the original share capital, management structure, intangible assets, external claims and liabilities and so on. Venture capital returns from the economic point of view will the company survey, but this time the lawyers from a legal perspective to assist in the careful investigation, the projects include: organizational forms and ownership structure; registered capital and funding in place; company managers true; of important personal information management with the company's labor contract and the contract with the previous employer, the main attention to the terms involving trade secrets; report and debts of the company's assets; the company's dealings, contracts and other legal documents; the company has the knowledge the authenticity and legitimacy of property rights; Litigation or arbitration cases; the relevant government approval documents in place. If the company provided false or all kinds of non-standard practices. The lawyers should submit written comments.
Second, to assist investors in commercial negotiations
The role of lawyers in the commercial negotiations can not be ignored, because many legal issues involved need to be resolved immediately, or it may make the terms of the negotiations in violation of our laws invalid, which may be very huge economic losses to the principal. At this time, the lawyer's duty: summary of the relevant legal issues, which can help investors to fully understand the law relating to feeling very sudden and frustrated, and will not in the negotiations; in the negotiations in addition to answer investors, but also legitimate, constructive comments in accordance with the actual situation of the negotiations, and inform both sides of its legal consequences for the client to choose.
Third, review and drafting of relevant legal instruments
Review of legal documents is a venture company to provide the cooperation plan, legal opinions, the new staff agreement, and need a lawyer to draft legal documents generally include legal opinions and investment agreements, one of the most important thing is that the investment agreement, because it is the basis of legal documents for this project, the agreement is complete and accurate, which directly affect the interests of both sides. Generally speaking, the draft investment agreement need to note the following:
An investment agreement is signed and the controlling shareholder of the company rather than risk the company; and because venture capital is not an ordinary way of corporate finance, investment is to get the company's equity, so the investment will affect the company's equity allocation and management of the company, so this The agreement should be signed and not signed and the company and shareholders.
2, the general shareholders' capital contribution in the form of transfer agreement. Venture capital investment in pursuit of high profits, high-risk, between the two sides should carry out a variety of special convention, and should not simply provide the content of the equity transfer agreement.
3, in terms of the agreement, in addition to the company's self-described, the contribution of the basic terms of the amount of return method should also be stated in accordance with the agreement to amend the company charter to strengthen the constraints of the Board of Directors of the Company and other agencies; investors investment, should be sent to enrich management, and specify whether to replace the manager; held by investors in the equity transfer and liquidation when priority; investors to fulfill the obligations of a prerequisite in order to reduce the risk of the investment side.
International Standards on Auditing-ISA
International Standards on Auditing/ISA-What is the International Standards on Auditing?
International Standards on Auditing is an international professional auditing standards to regulate the financial audit operations. International Standards on Auditing issued by the International Federation of Accountants (IFAC).Basic elements: the general guidelines of the International Standards on Auditing, field work standards, reporting standards.
A list of the International Standards on Auditing (ISAs)
Objectives and general principles of the division of responsibilities • the ISA 200 Audit of Financial Statements
• ISA 210 Audit engagement letter terms
• the ISA 220R audit quality control
• ISA 230 Audit Documentation Records
• the ISA 240 audit of financial statements, fraud into account the responsibility of the auditors
• ISA 250 Financial statements audit, legal and regulatory considerations
• ISA 260 audit staff and management of communication
Audit plan • ISA 300 Financial statements audit plan
Knowledge of the ISA 310 Enterprise Service
• ISA 315 understanding of the audited entity and its environment and to assess the risk of material misstatement
• the ISA 320 audit to identify and evaluate misstatements to the use of the importance of
• the ISA 330 auditors for the level of risk assessment procedures to be undertaken
Internal control risk assessment and internal controls • the ISA 400
• audit under the ISA 401 computer information systems environment
• audit of the audited entity contracting out the work of service organizations to consider the ISA 402
Audit evidence • ISA 500 Audit evidence
• ISA 501 Audit evidence considerations on special projects
• ISA 505 External Confirmations
• the ISA 510 for the first time to accept the commission, opening balance
Analytical procedures of the ISA 520
• the ISA 530 Audit Sampling and other test methods
• ISA 540 accounting estimates of audit
• the ISA 545 fair value measurement and disclosure of audit
• the ISA 550 to related parties and transactions
• the ISA 560 Subsequent Events
• the ISA 570 to continue operating assumptions
• ISA 580 management authorities a written statement
Use of other post-secondary materials • ISA 600 audit the Group financial statements, and other audit staff
• the ISA 610 internal audit work
• the ISA 620 experts work
Audit conclusions and audit report ISA 700 audit report for financial statements issued
• the ISA 710 compared information
• the ISA 720 on audit of financial statements information
Special kind of independent audit ISA 800 The Auditor's Report on Special Purpose Audit Engagements
International Standards on Auditing is an international professional auditing standards to regulate the financial audit operations. International Standards on Auditing issued by the International Federation of Accountants (IFAC).Basic elements: the general guidelines of the International Standards on Auditing, field work standards, reporting standards.
A list of the International Standards on Auditing (ISAs)
Objectives and general principles of the division of responsibilities • the ISA 200 Audit of Financial Statements
• ISA 210 Audit engagement letter terms
• the ISA 220R audit quality control
• ISA 230 Audit Documentation Records
• the ISA 240 audit of financial statements, fraud into account the responsibility of the auditors
• ISA 250 Financial statements audit, legal and regulatory considerations
• ISA 260 audit staff and management of communication
Audit plan • ISA 300 Financial statements audit plan
Knowledge of the ISA 310 Enterprise Service
• ISA 315 understanding of the audited entity and its environment and to assess the risk of material misstatement
• the ISA 320 audit to identify and evaluate misstatements to the use of the importance of
• the ISA 330 auditors for the level of risk assessment procedures to be undertaken
Internal control risk assessment and internal controls • the ISA 400
• audit under the ISA 401 computer information systems environment
• audit of the audited entity contracting out the work of service organizations to consider the ISA 402
Audit evidence • ISA 500 Audit evidence
• ISA 501 Audit evidence considerations on special projects
• ISA 505 External Confirmations
• the ISA 510 for the first time to accept the commission, opening balance
Analytical procedures of the ISA 520
• the ISA 530 Audit Sampling and other test methods
• ISA 540 accounting estimates of audit
• the ISA 545 fair value measurement and disclosure of audit
• the ISA 550 to related parties and transactions
• the ISA 560 Subsequent Events
• the ISA 570 to continue operating assumptions
• ISA 580 management authorities a written statement
Use of other post-secondary materials • ISA 600 audit the Group financial statements, and other audit staff
• the ISA 610 internal audit work
• the ISA 620 experts work
Audit conclusions and audit report ISA 700 audit report for financial statements issued
• the ISA 710 compared information
• the ISA 720 on audit of financial statements information
Special kind of independent audit ISA 800 The Auditor's Report on Special Purpose Audit Engagements
International Project Tendering-International Project Bids
International project tendering/International Project Bids-What is an international project tendering?
The international construction tender is in the international project, the tender invited several or dozens of bidders participate in the bidding competition through the majority of bidders, select one of the most favorable to the bid inviting bidders deal. The tender is a major engineering construction projects in the current international transactions. It is characterized by the owners indicated it intends to contract the project, deadlines, quality requirements, attract or invite some bidders willing to contract and qualified bidders on the contract of the project construction program and requirements for the price of the tender parity deal an economic activity. At present, most countries have developed a tender and regulations for its own characteristics, to harmonize their domestic bidding method, but also the formation of a countries should comply with the mandatory tender requirements. International tender, according to the habits of the country or region to select one representative for a wide range, and the bidding regulations applicable in the region of a country. Such as the World Bank loan project bidding and procurement laws and regulations, tender and regulations of the United Kingdom and France project tendering system.
International Engineering - tendering principles:
International project bidding shall adhere to and implement fair, just, and equal competition, the timely and effective principle, embodied in the following aspects:
(1) the project tender information is released to the public, all bidders have the same understanding of the right and the right to know the bidding information.
(2) the scope and content of the tender project is specific and clear. The tender shall be detailed, accurate description is intended to tender the project, including the scope, content and the specific requirements of the tender shall not be ambiguous.
(3) The tender procedure and rules of the project prior to the public; the bidding process, the rights, obligations and responsibilities of the parties should be clear, scientific and rational.
(4) the process of bidding, the tender shall not be bidders to negotiate directly; deadline for submitting bids, the bidder has no right to make any changes to tenders. The bidding process is transparent, open, no "secret operations" or the breeding of the possibility of corruption.
(5) Project tender should give priority to the use of open competitive bidding can not use open competitive bidding is required to adopt other tender.
(6) The bidder should be in the price, quality, technology, term, programs, services, reputation, as far as possible to meet the tender requirements.
(7) in the bidding process, the tender should be given to all suppliers and contractors to participate in the bidding to a fair and equal treatment, discrimination shall not be of a different country, the company.
(8) The tender should be taken to strengthen scientific management, in addition to guarantee the bidding in a timely manner, successfully reached out to, but also to ensure that all participants timely access to effective legal remedies when their rights have been violated.
International Engineering - scope of the tender
International project bidding are widely applicable to the public and private procurement, according to the nature of the tender subject of the scope of application of the international bidding, in general, including works, goods (supplies), the three services. Countries and international organizations on the understanding of the works, goods, services, and not the same as defined.
In the international market, national and international organizations usually provide that where government departments, state-owned enterprises and some private companies that impact the public interest purchases are subject to the bidding. The same time, countries and international organizations generally allow purchases under certain circumstances, purchased items such as emergency situations, munitions procurement or involving the security and confidentiality of the project, purchase quantity, the use of tender enough economies of scale, means other than the known choice of products, project or limited number of enterprises projects, bidding can be used for procurement or contract the contractor. Therefore, in the international arena, the scope of compulsory bidding in public procurement, private procurement have a significant impact on the public interest is also compulsory tender.
However, not all the works should be carried out the bidding process, must implement the bidding procurement projects generally have a number of limitations. Countries and international organizations is not entirely consistent with the provisions of the tender specific limits, such as the tendering of the project limits than the general goods and services project bidding limit is much higher, sometimes the central government procurement than other bidding and purchasing control strict, etc. .
International project bidding agent
A. Tender agent
In international bidding activities, hire agency proxy bidding phenomenon is relatively common, you often but also in government procurement agencies, especially in government departments, not the creation of specialized procurement agencies do not have the specialized knowledge and skills of procurement necessary or procurement volume, the amount is too large and complex engineering, economic, technical complexity, self-organized bidding difficult circumstances, the more necessary to employ agency agent.
World Bank, the Asian Development Bank and other financial organizations of its funded projects is forced to implement an agency recognized by it proxy bidding project units according to their demands to hire agencies in tender, you can not get projects loans.
Two. Tender agent
The foreign tenderer wishes to enter the Country tender should be entrusted to the agent of the Country. The bidding agent is generally of the Country's advisory body, such as bidding agent organizations. Its agent, the scope of business is:
(1) to assist foreign bidders to apply for pre-qualification, purchase collar tender documents;
(2) to assist foreign bidders to apply the procedures of import and export of construction machinery and means of subsistence, an application for leave Wang, declare the tariff to apply for tax exemption for transportation; (3) to assist foreign bidders and their local officials and the business community, the financial sector connect, communicate and carry out public relations activities;
(4) to assist foreign bidders entry and exit visas, residence permits, work permits, car driving license;
(5) introduce a partner for foreign companies and to register;
(6) for foreign bidders to provide their own local policy, legal advice and market information, business activity knowledge.
Principal-agent contract
Foreign bidding shall be signed with the location of the project bidding agency to principal-agent contracts, and grant power of attorney. Agency contract shall include: ① The agent's business Fan with and activity areas; ② agent permissions and effective period; ③ The agent costs (generally for the project the price of 3%, the lowest for the 1%, the highest for five %) and payment (installment or a payment to pay agency fees as a precondition of successful bidder, bidders are not successful do not pay agency fees); ④ The terms of the special remuneration (in addition to the agent of dereliction of duty or without good reason not to perform the contract outside regardless of whether the bidder is the successful bidder, to pay special remuneration).
International project bidding - developments:
With the accelerated process of global economic integration, national project bidding system has been a marked uniform trend, and presents many new features, mainly in the following aspects:
(1) within the scope of the world to see, the basic framework of the bidding system does not occur too many changes. States modify, improve the bidding system, is to protect the recruit cast the interests of the parties in the world free trade.
(2) the scope of the bidding continues to expand, no longer limited to traditional single form of works, goods, and services.
(3) International bidders qualified the growing construction technology continues to improve, a new bidder has increasingly become the focus of attention of all parties.
(4) further diversification of the bidding of the legal remedies, but the negotiation, mediation means will be particularly favored.
(5) large-scale application of the means of science and technology, especially computer technology is widely used, has been basically achieved the goal of "paperless office". The parties may easily via the Internet and other bidding activities.
International project bidding - local protection
In international bidding activities in countries on the one hand egalitarian other hand, often from their own national interests, to give domestic bidders certain concessions, made all kinds of restrictions for foreign bidders to enter the market of its own tender, in order to achieve protection their own in this region, and corporate purposes. Restrictions on foreign bidders, there are two ways: ① in the relevant international treaties concluded or acceded to the agreement has declared reservations. For example, the United States and the European Union plus the WTO Agreement on Government Procurement ", the opening up of national public procurement markets to do a lot of reservations. ② through their national legislation, to take the measures of market access, incentives and other aspects to be limited. Such as the U.S. "Buy American Act provisions, bidding more than $ 100,000, in addition to the outside of the following circumstances must purchase a substantial proportion of U.S. products, the tender in the tender document must be under the law instructions given to domestic the margin of preference: ① The United States does not have the product or the product is not much; ② foreign products, low prices, to give a 25% discount on their products, their products are still higher than foreign products.
Bidding in the international context, to protect their products and businesses of this region is an important and sensitive issue in the national bidding system, a popular international practice.
The international construction tender is in the international project, the tender invited several or dozens of bidders participate in the bidding competition through the majority of bidders, select one of the most favorable to the bid inviting bidders deal. The tender is a major engineering construction projects in the current international transactions. It is characterized by the owners indicated it intends to contract the project, deadlines, quality requirements, attract or invite some bidders willing to contract and qualified bidders on the contract of the project construction program and requirements for the price of the tender parity deal an economic activity. At present, most countries have developed a tender and regulations for its own characteristics, to harmonize their domestic bidding method, but also the formation of a countries should comply with the mandatory tender requirements. International tender, according to the habits of the country or region to select one representative for a wide range, and the bidding regulations applicable in the region of a country. Such as the World Bank loan project bidding and procurement laws and regulations, tender and regulations of the United Kingdom and France project tendering system.
International Engineering - tendering principles:
International project bidding shall adhere to and implement fair, just, and equal competition, the timely and effective principle, embodied in the following aspects:
(1) the project tender information is released to the public, all bidders have the same understanding of the right and the right to know the bidding information.
(2) the scope and content of the tender project is specific and clear. The tender shall be detailed, accurate description is intended to tender the project, including the scope, content and the specific requirements of the tender shall not be ambiguous.
(3) The tender procedure and rules of the project prior to the public; the bidding process, the rights, obligations and responsibilities of the parties should be clear, scientific and rational.
(4) the process of bidding, the tender shall not be bidders to negotiate directly; deadline for submitting bids, the bidder has no right to make any changes to tenders. The bidding process is transparent, open, no "secret operations" or the breeding of the possibility of corruption.
(5) Project tender should give priority to the use of open competitive bidding can not use open competitive bidding is required to adopt other tender.
(6) The bidder should be in the price, quality, technology, term, programs, services, reputation, as far as possible to meet the tender requirements.
(7) in the bidding process, the tender should be given to all suppliers and contractors to participate in the bidding to a fair and equal treatment, discrimination shall not be of a different country, the company.
(8) The tender should be taken to strengthen scientific management, in addition to guarantee the bidding in a timely manner, successfully reached out to, but also to ensure that all participants timely access to effective legal remedies when their rights have been violated.
International Engineering - scope of the tender
International project bidding are widely applicable to the public and private procurement, according to the nature of the tender subject of the scope of application of the international bidding, in general, including works, goods (supplies), the three services. Countries and international organizations on the understanding of the works, goods, services, and not the same as defined.
In the international market, national and international organizations usually provide that where government departments, state-owned enterprises and some private companies that impact the public interest purchases are subject to the bidding. The same time, countries and international organizations generally allow purchases under certain circumstances, purchased items such as emergency situations, munitions procurement or involving the security and confidentiality of the project, purchase quantity, the use of tender enough economies of scale, means other than the known choice of products, project or limited number of enterprises projects, bidding can be used for procurement or contract the contractor. Therefore, in the international arena, the scope of compulsory bidding in public procurement, private procurement have a significant impact on the public interest is also compulsory tender.
However, not all the works should be carried out the bidding process, must implement the bidding procurement projects generally have a number of limitations. Countries and international organizations is not entirely consistent with the provisions of the tender specific limits, such as the tendering of the project limits than the general goods and services project bidding limit is much higher, sometimes the central government procurement than other bidding and purchasing control strict, etc. .
International project bidding agent
A. Tender agent
In international bidding activities, hire agency proxy bidding phenomenon is relatively common, you often but also in government procurement agencies, especially in government departments, not the creation of specialized procurement agencies do not have the specialized knowledge and skills of procurement necessary or procurement volume, the amount is too large and complex engineering, economic, technical complexity, self-organized bidding difficult circumstances, the more necessary to employ agency agent.
World Bank, the Asian Development Bank and other financial organizations of its funded projects is forced to implement an agency recognized by it proxy bidding project units according to their demands to hire agencies in tender, you can not get projects loans.
Two. Tender agent
The foreign tenderer wishes to enter the Country tender should be entrusted to the agent of the Country. The bidding agent is generally of the Country's advisory body, such as bidding agent organizations. Its agent, the scope of business is:
(1) to assist foreign bidders to apply for pre-qualification, purchase collar tender documents;
(2) to assist foreign bidders to apply the procedures of import and export of construction machinery and means of subsistence, an application for leave Wang, declare the tariff to apply for tax exemption for transportation; (3) to assist foreign bidders and their local officials and the business community, the financial sector connect, communicate and carry out public relations activities;
(4) to assist foreign bidders entry and exit visas, residence permits, work permits, car driving license;
(5) introduce a partner for foreign companies and to register;
(6) for foreign bidders to provide their own local policy, legal advice and market information, business activity knowledge.
Principal-agent contract
Foreign bidding shall be signed with the location of the project bidding agency to principal-agent contracts, and grant power of attorney. Agency contract shall include: ① The agent's business Fan with and activity areas; ② agent permissions and effective period; ③ The agent costs (generally for the project the price of 3%, the lowest for the 1%, the highest for five %) and payment (installment or a payment to pay agency fees as a precondition of successful bidder, bidders are not successful do not pay agency fees); ④ The terms of the special remuneration (in addition to the agent of dereliction of duty or without good reason not to perform the contract outside regardless of whether the bidder is the successful bidder, to pay special remuneration).
International project bidding - developments:
With the accelerated process of global economic integration, national project bidding system has been a marked uniform trend, and presents many new features, mainly in the following aspects:
(1) within the scope of the world to see, the basic framework of the bidding system does not occur too many changes. States modify, improve the bidding system, is to protect the recruit cast the interests of the parties in the world free trade.
(2) the scope of the bidding continues to expand, no longer limited to traditional single form of works, goods, and services.
(3) International bidders qualified the growing construction technology continues to improve, a new bidder has increasingly become the focus of attention of all parties.
(4) further diversification of the bidding of the legal remedies, but the negotiation, mediation means will be particularly favored.
(5) large-scale application of the means of science and technology, especially computer technology is widely used, has been basically achieved the goal of "paperless office". The parties may easily via the Internet and other bidding activities.
International project bidding - local protection
In international bidding activities in countries on the one hand egalitarian other hand, often from their own national interests, to give domestic bidders certain concessions, made all kinds of restrictions for foreign bidders to enter the market of its own tender, in order to achieve protection their own in this region, and corporate purposes. Restrictions on foreign bidders, there are two ways: ① in the relevant international treaties concluded or acceded to the agreement has declared reservations. For example, the United States and the European Union plus the WTO Agreement on Government Procurement ", the opening up of national public procurement markets to do a lot of reservations. ② through their national legislation, to take the measures of market access, incentives and other aspects to be limited. Such as the U.S. "Buy American Act provisions, bidding more than $ 100,000, in addition to the outside of the following circumstances must purchase a substantial proportion of U.S. products, the tender in the tender document must be under the law instructions given to domestic the margin of preference: ① The United States does not have the product or the product is not much; ② foreign products, low prices, to give a 25% discount on their products, their products are still higher than foreign products.
Bidding in the international context, to protect their products and businesses of this region is an important and sensitive issue in the national bidding system, a popular international practice.
International engineering contracting
International engineering contracting-What is an international engineering contracting?
International engineering contracting (International Contracting for Construction,) is an integrated business activity and international economic exchanges, is a form of international contractors (companies) to provide its own technology through international bidding, the proposed standard or other consultative approach,, capital, labor, management, equipment and materials, permission, according to the requirements of the foreign project owners (the Employer), its to create projects or engage in other economic activities, the terms of the contract and agreed in advance the fees charged by the international economictechnical cooperation.
International engineering contracting/International Contracting for Construction - scope of business
(A) engineering design
(B) the transfer of technology
(C) machinery and equipment supply and installation
(D) the supply of raw materials and energy
(E) Construction
(F) funds
(7) Acceptance
(H) training of personnel
(I) technical guidance
(10) management
International engineering contracting (International Contracting for Construction,) is an integrated business activity and international economic exchanges, is a form of international contractors (companies) to provide its own technology through international bidding, the proposed standard or other consultative approach,, capital, labor, management, equipment and materials, permission, according to the requirements of the foreign project owners (the Employer), its to create projects or engage in other economic activities, the terms of the contract and agreed in advance the fees charged by the international economictechnical cooperation.
International engineering contracting/International Contracting for Construction - scope of business
(A) engineering design
(B) the transfer of technology
(C) machinery and equipment supply and installation
(D) the supply of raw materials and energy
(E) Construction
(F) funds
(7) Acceptance
(H) training of personnel
(I) technical guidance
(10) management
Thursday, February 2, 2012
Direct Marketing
Direct Marketing-What is direct marketing?
Direct marketing is the product of individual needs, the dissemination of personalized products and services, the best channels. U.S. Direct Marketing Association (ADMA), marketing experts will define it as "a place to produce any measurable response can be used one or a deal or the interaction of several advertising media marketing system."
Direct marketing - the origin of
Direct marketing originated in the mail order activities. In 1498, Al publishers set in Venice, Italy, founder of Aldus Manutius published the first printed price list of directories. This generally is considered the first documented mail order activities. 1667, William Lucas in the United Kingdom published the first gardening catalog. Later, the mail order activities in the United States, Italy and Britain made some progress. To 1926, Sherman and Sackheim founded in the United States, the first modern book club - monthly book club (The Book of the Month Club). They began to use the free trial, that is first consumer Jishu, until the consumer no longer order or not payment. This is the first collection after the Jishu traditional way different. This is also the marketers trying to measure customer lifetime value (lifetime customer value) of the first attempt the world's second-largest direct response companies - Wunderman marketing consultant (WCJ) - founder Lester Wunderman said the manufacturer 90 % of the profits from repeat customers, and only 10% of sporadic individual. Reduction in losses of 5% of the old customers will increase by 25% of the profits. Therefore, from a strategic perspective, companies must be clear that he is to focus on the fight for market share, or to maintain or develop customer loyalty. According to experts, is facing fierce competition in the market, to maintain an old customer is looking for a cost of 0.5 times the cost of new customers, and to make a loss of old customers again become new customers that cost is to find a new customer cost of 10 times. How to traditional advertising to get customers to be maintained and converted into loyal customers for direct marketing is an important goal.
Mr. Wunderman in 1967 first proposed the concept of direct marketing. He believes that human society is the direct trading began, that the sale of the classical one (service) mode is the most and can satisfy the needs of the people, rather the industrial revolution brought about by mass production and mass marketing is not consistent with human nature, is immoral.
Especially the fish market at this stage, a large number of traditional advertising media are full of people called the "eyeball economy" is said to have aroused a public outcry, the conditions in today's society, people seek more personalized products and services, no one is willing to accept and others as products and services. This is a lot of marketing, marketing a large number of fatal weaknesses and decay times, the end of the root causes.
While consumer products generally do not trust some time; tired of a lot of advertising is not the time; especially health care products company marketing staff know what to do and to think hard to find when the new marketing, direct marketing operation and should be Health and vitality and adaptability to rapidly swept all Western countries, launched a marketing revolution in twenty-first century. Our nation's health care products drug companies most part accept the use of a direct marketing approach, but not yet used the system. We direct marketing as a primary means of entering the market, can greatly reduce risk.
Direct marketing - forms:Network as an interactive two-way communication channels can be and the media, it can be very convenient for the bridge between enterprises and customers, customers can order and pay directly through the network, businesses can receive the orders through the network to arrange the production, directly Products sent to the customer. Internet-based direct marketing will be more consistent with the concept of direct marketing. This is reflected in the following four areas:
First, direct marketing as an interacting system, with special emphasis on direct marketing and target customers are between the "two-way exchange of information" in order to overcome the traditional marketing in the "one-way information exchange," the way marketers and customers can not communicate between the Achilles' heel. Internet as open and free two-way communication networks, between businesses and customers can direct one to one exchange of information and direct communication, companies can target the needs of customers in production and marketing decision-making, maximize customer satisfaction in demand, improve the efficiency and effectiveness of marketing decisions.
Second, direct marketing activities for each goal, the key is to provide customers with direct response marketers channels, companies can rely on customer feedback to identify shortcomings, for the next direct marketing campaign ready. The Internet easy and fast makes it easy for customers via the Internet to make recommendations directly to the business and purchase requirements, you can also directly access the Internet service. Enterprises can also suggestions from customers, needs and requirements of the service, to identify the lack of business, according to customer demand management, reducing marketing costs.
Third, the direct marketing activities, emphasizing at any time, any place you can achieve the enterprise and customer, "two-way exchange of information." Internet's global and persistent, which makes the customer can at any time, any place direct response to business requests and issues, companies can also use the Internet to achieve low-cost break across space and time constraints of two-way communication with customers, This is because the use of the Internet can be automated all-day communication tools to provide online information, customers can access their own schedule to get any information.
Fourth, the direct marketing activities, the most important feature is the effect of direct marketing activity is measured. The Internet as the most simple and direct communication tool for business can be very convenient when dealing with customers to provide communication support and trading platform to achieve, through database technology and network control technology, companies can easily deal with each customer order and demand, and Customers do not control the size, the amount of purchase, this is because the cost of Internet communication and information processing costs are very low. Thus, through the Internet can be achieved at the lowest possible cost to meet customer needs while understanding customer needs, target market segments, improve marketing efficiency and effectiveness.
Direct marketing - main features:
Difference between direct marketing and other marketing methods, the main features are:
1 choose more accurately target customers
Direct marketing can from the customer list and database information, the selected customers may become their own people as the target customers, and target customers with a single user or a specific business direct exchange of information. So that the target customers accurately targeted communication.
(2) emphasize the relationship with customers
Direct marketing campaign, direct marketing may be based on each customer's different needs and spending habits for targeted marketing activities. This will form one to one with two-way communication between the customer, will work with customers to create and maintain a good relationship. Various studies show that the majority of consumer purchase behavior is a planned purchase. Direct marketers know that customers will not stay at home passively waiting for the arrival of advertising. Therefore, they encourage consumers to always concentrate on the unplanned purchase or impulse buy, as consumers respond immediately to provide all possible convenience.
3 encourage the customer an immediate response
Through the incentive to concentrate on advertising in a particular recipients to take immediate action and to reflect the customer immediately and provide a convenient way possible, people of the immediate implementation of direct communication.
4 covert marketing strategy
Direct marketing strategy is not the conduct of high-profile, so competitors can not easily be detected, even if competitors aware of their marketing strategy will be too late, as advertising and direct marketing sales is the same time.
5 attention to customer lifetime value and long-term communication
Direct marketing to business customers (including end customers, distributors and partners) as the most important corporate resource, by improving customer service and in-depth customer analysis to meet the customer's needs, concerns and help customers achieve lifetime value.Direct marketing - Category:Direct marketing (direct marketing) as part of marketing activities, and modern consumers are becoming increasingly close. On the one hand, the accelerating pace of life in modern society, so that consumers are becoming used to reduce shopping time. On the other hand, information, communication technology, and continuously improve the credit system, the development of direct marketing provides an opportunity.
Now, with the credit instruments and the rapid development of information technology, the form of direct marketing has been an unprecedented development, the form is no longer limited to mail-order activities. With the telephone, television and the Internet and many other media, the emergence of forms of direct marketing has become increasingly diverse, a common form of direct marketing are:
1. Direct mail marketing:Marketing staff to letters, samples or advertising sent directly to the target customer marketing activities. A list of target customers can rent, buy or no competition with other businesses to exchange. Use these lists, they should pay attention to the list of repetition, to avoid two or more products with a mailing sent to the same customers, causing resentment.
2. Catalog marketing:Marketers to target customers mailing list, or available for customers to obtain the directory at any time. The integrated operation of the complete production line mail order store more this way, such as Montgomery Ward • Company (Montgomery Ward), • Sears Roebuck (Sears Roebuck) and so on.
3. Telemarketing:Marketers to target customers by telephone for marketing activities. Phone penetration, especially in the opening 800 free phone so that consumers are more willing to accept this form. Many consumers through telephone inquiries about products or services, and make purchases.
4. Direct response television marketing:Marketing staff through on television about the products, sell products or sponsor a special program, marketing activities. In China, television is the most popular media, television channels are more, many companies have started marketing on television.5. Direct response print media:Direct response print media usually refers to magazines, newspapers and other print media, direct response advertising to do, to encourage the target members of the order by telephone or letter, to achieve the purpose of increasing sales and provide customers with knowledge of other services.6. Direct response radioBroadcast as a direct response to the dominant media can also be used as with other media, so that the customer feedback on the radio. With the broadcasting industry, an increasing number of radio stations, more and more professional the whole, some stations even for a particular segment of small groups or height for the direct marketing targeting those who seek to provide a precise the opportunity.
7. Network Marketing:Marketing staff through the Internet, fax and other electronic means of communication to carry out marketing activities. At present, such as books, computer software and hardware, travel services, etc., have generally started their online marketing business. In addition, marketers also use newspapers, magazines, radio and other media for marketing activities. The types of direct marketing can be a single use, can also be combined with use.
Direct marketing - FeaturesAlthough direct marketing as a marketing idea has long existed, but until the 1980s, people still think it is a method of distribution. It is widely accepted definition of Stan • Rip (Stan Rapp) and Tom • Collins (Tom Collins) by the definition: "Direct marketing is without a store, directly between buyers and sellers to complete transactions in a distribution form . "Although the above definition outlines the basic nature of direct marketing, but the role of direct marketing as more and more widely, it has been difficult to fully summarize the purpose of direct marketing.
Direct marketing and database concern is that each of its consumers and potential consumers. They are based on consumer buying behavior in the past to predict future behavior. This information is processed on an individual as a unit, even tens of thousands of consumers can still use it to carry out the analysis of individual behavior and decision-making. This does not mean that marketing research is outdated, but if you rely only on marketing research information obtained will be made generally applicable to the assumption that consumer behavior, this assumption when applied to individual circumstances, may be wrong. In short, direct marketing stressed that according to the analysis of information about individual decision-making, and finally to maximize customer lifetime value.
Characteristics of direct marketing can be summarized as connectivity, the target, control and continuity.1. Connectivity (interaction) refers to the marketing staff and the linkages between consumers, which includes two meanings: (1) how marketers target consumers on the market to provide responses to stimuli cause. (2) how consumers react. Interaction with consumers, marketers can gain effective control for target-oriented and consumer information and how to keep in touch with the information. Therefore, the four characteristics of direct marketing, the Internet is the centrally located.
2. Goal-oriented (targeting) is the marketing staff select a product or service information received into the process, information has been received income can be purchased product or service to consumers, or likely to become patrons of potential customers, or the majority of potential consumers. Marketing personnel can periodically check the results of the last campaign, in order to obtain more accurate goal-oriented information.
3. Control (control) refers to the management of marketing activities, including setting goals and plans, make budget and assessment. It is a cyclical process, marketers generally based on past results of the control process to develop plans for the future.
4 continuity (continuity) is to retain the existing customer base, to sell them other products and more advanced products. In business, a lot of profit from the existing customer base, so the continuity is very important. Interaction with customers to obtain important data, enabling marketers to better communicate with customers, timely access to their interests and preferences, to understand their views on marketing activities of the past. Although many companies do not realize the importance of continuity, but studies have shown that the product has been purchased re-sale to consumers the cost of attracting new customers only a small part. For example, in the new car market, the cost ratio of the two 1 / 5.
Direct marketing of the above four characteristics are interrelated, and its overall goal is to establish a database to keep old customers and attract new customers, maximize the customer lifetime value. Customer Lifetime Value is the life of an enterprise to bring the customer the total net income, which means that customers remain loyal to the company during the period, will bring the total value of expected future income.
The shortcomings of traditional marketing and direct marketing advantages:Marketing costs related to traditional marketing, advertising media costs, warehousing costs, channel costs, management and marketing costs are very high, and direct marketing to a certain extent, lower cost, and efficiency is improved.1, direct marketing to reduce overall customer costs. Direct marketing aspects of the exclusion of intermediaries increases, thus reducing commodity prices; while allowing the customer does not need to go out shopping can make their time, physical and spiritual cost to almost zero.2, direct marketing emphasis on time efficiency of customer response to the trend. Comparison shopping, modern people are more willing to invest valuable time to work, learning, communication, sports, leisure and other more meaningful things, and direct marketing telephone (or network) ordering, home delivery of benefits to customers shopping offers great convenience.
3, the promotion of network communication technology to promote the development of direct marketing. Media is the key to successful direct marketing. Today, advanced communication facilities, in particular the use of Internet technologies (According to statistics, China has 50 million mobile phones, 100 million fixed telephone; computer ownership in more than 12 million Internet users over 4 million) is to e-shopping has become a trend.
4, the direct response to customer demand for personalized marketing trend. Direct marketing by the manufacturer according to the specific needs of each customer customized products to provide customers with complete satisfaction with the goods. New century calls for direct marketing, but marketing strategy change has economic grounds. The traditional image of the advertising for many companies it is not too specific.
For example, most of the revenue from Coca-Cola 8% of Americans, but Coca-Cola is in the cook billion in television advertising to 100% of the people. This is a reasonable proportion of Coca-Cola tried to find the right ratio. Coca-Cola understand that each client must establish a closer relationship because no one has seen a customer base to buy Coke, every time a single customer.
Traditional advertising is facing a structural crisis. In order not to forget, companies must do more advertising. But only well-known and a good impression is not enough. Statistics show that consumers face every day a 1600 advertising messages. Not surprisingly, he will forget after a while a large part, the other part would be wrong to memory.
Direct marketing is the product of individual needs, the dissemination of personalized products and services, the best channels. U.S. Direct Marketing Association (ADMA), marketing experts will define it as "a place to produce any measurable response can be used one or a deal or the interaction of several advertising media marketing system."
Direct marketing - the origin of
Direct marketing originated in the mail order activities. In 1498, Al publishers set in Venice, Italy, founder of Aldus Manutius published the first printed price list of directories. This generally is considered the first documented mail order activities. 1667, William Lucas in the United Kingdom published the first gardening catalog. Later, the mail order activities in the United States, Italy and Britain made some progress. To 1926, Sherman and Sackheim founded in the United States, the first modern book club - monthly book club (The Book of the Month Club). They began to use the free trial, that is first consumer Jishu, until the consumer no longer order or not payment. This is the first collection after the Jishu traditional way different. This is also the marketers trying to measure customer lifetime value (lifetime customer value) of the first attempt the world's second-largest direct response companies - Wunderman marketing consultant (WCJ) - founder Lester Wunderman said the manufacturer 90 % of the profits from repeat customers, and only 10% of sporadic individual. Reduction in losses of 5% of the old customers will increase by 25% of the profits. Therefore, from a strategic perspective, companies must be clear that he is to focus on the fight for market share, or to maintain or develop customer loyalty. According to experts, is facing fierce competition in the market, to maintain an old customer is looking for a cost of 0.5 times the cost of new customers, and to make a loss of old customers again become new customers that cost is to find a new customer cost of 10 times. How to traditional advertising to get customers to be maintained and converted into loyal customers for direct marketing is an important goal.
Mr. Wunderman in 1967 first proposed the concept of direct marketing. He believes that human society is the direct trading began, that the sale of the classical one (service) mode is the most and can satisfy the needs of the people, rather the industrial revolution brought about by mass production and mass marketing is not consistent with human nature, is immoral.
Especially the fish market at this stage, a large number of traditional advertising media are full of people called the "eyeball economy" is said to have aroused a public outcry, the conditions in today's society, people seek more personalized products and services, no one is willing to accept and others as products and services. This is a lot of marketing, marketing a large number of fatal weaknesses and decay times, the end of the root causes.
While consumer products generally do not trust some time; tired of a lot of advertising is not the time; especially health care products company marketing staff know what to do and to think hard to find when the new marketing, direct marketing operation and should be Health and vitality and adaptability to rapidly swept all Western countries, launched a marketing revolution in twenty-first century. Our nation's health care products drug companies most part accept the use of a direct marketing approach, but not yet used the system. We direct marketing as a primary means of entering the market, can greatly reduce risk.
Direct marketing - forms:Network as an interactive two-way communication channels can be and the media, it can be very convenient for the bridge between enterprises and customers, customers can order and pay directly through the network, businesses can receive the orders through the network to arrange the production, directly Products sent to the customer. Internet-based direct marketing will be more consistent with the concept of direct marketing. This is reflected in the following four areas:
First, direct marketing as an interacting system, with special emphasis on direct marketing and target customers are between the "two-way exchange of information" in order to overcome the traditional marketing in the "one-way information exchange," the way marketers and customers can not communicate between the Achilles' heel. Internet as open and free two-way communication networks, between businesses and customers can direct one to one exchange of information and direct communication, companies can target the needs of customers in production and marketing decision-making, maximize customer satisfaction in demand, improve the efficiency and effectiveness of marketing decisions.
Second, direct marketing activities for each goal, the key is to provide customers with direct response marketers channels, companies can rely on customer feedback to identify shortcomings, for the next direct marketing campaign ready. The Internet easy and fast makes it easy for customers via the Internet to make recommendations directly to the business and purchase requirements, you can also directly access the Internet service. Enterprises can also suggestions from customers, needs and requirements of the service, to identify the lack of business, according to customer demand management, reducing marketing costs.
Third, the direct marketing activities, emphasizing at any time, any place you can achieve the enterprise and customer, "two-way exchange of information." Internet's global and persistent, which makes the customer can at any time, any place direct response to business requests and issues, companies can also use the Internet to achieve low-cost break across space and time constraints of two-way communication with customers, This is because the use of the Internet can be automated all-day communication tools to provide online information, customers can access their own schedule to get any information.
Fourth, the direct marketing activities, the most important feature is the effect of direct marketing activity is measured. The Internet as the most simple and direct communication tool for business can be very convenient when dealing with customers to provide communication support and trading platform to achieve, through database technology and network control technology, companies can easily deal with each customer order and demand, and Customers do not control the size, the amount of purchase, this is because the cost of Internet communication and information processing costs are very low. Thus, through the Internet can be achieved at the lowest possible cost to meet customer needs while understanding customer needs, target market segments, improve marketing efficiency and effectiveness.
Direct marketing - main features:
Difference between direct marketing and other marketing methods, the main features are:
1 choose more accurately target customers
Direct marketing can from the customer list and database information, the selected customers may become their own people as the target customers, and target customers with a single user or a specific business direct exchange of information. So that the target customers accurately targeted communication.
(2) emphasize the relationship with customers
Direct marketing campaign, direct marketing may be based on each customer's different needs and spending habits for targeted marketing activities. This will form one to one with two-way communication between the customer, will work with customers to create and maintain a good relationship. Various studies show that the majority of consumer purchase behavior is a planned purchase. Direct marketers know that customers will not stay at home passively waiting for the arrival of advertising. Therefore, they encourage consumers to always concentrate on the unplanned purchase or impulse buy, as consumers respond immediately to provide all possible convenience.
3 encourage the customer an immediate response
Through the incentive to concentrate on advertising in a particular recipients to take immediate action and to reflect the customer immediately and provide a convenient way possible, people of the immediate implementation of direct communication.
4 covert marketing strategy
Direct marketing strategy is not the conduct of high-profile, so competitors can not easily be detected, even if competitors aware of their marketing strategy will be too late, as advertising and direct marketing sales is the same time.
5 attention to customer lifetime value and long-term communication
Direct marketing to business customers (including end customers, distributors and partners) as the most important corporate resource, by improving customer service and in-depth customer analysis to meet the customer's needs, concerns and help customers achieve lifetime value.Direct marketing - Category:Direct marketing (direct marketing) as part of marketing activities, and modern consumers are becoming increasingly close. On the one hand, the accelerating pace of life in modern society, so that consumers are becoming used to reduce shopping time. On the other hand, information, communication technology, and continuously improve the credit system, the development of direct marketing provides an opportunity.
Now, with the credit instruments and the rapid development of information technology, the form of direct marketing has been an unprecedented development, the form is no longer limited to mail-order activities. With the telephone, television and the Internet and many other media, the emergence of forms of direct marketing has become increasingly diverse, a common form of direct marketing are:
1. Direct mail marketing:Marketing staff to letters, samples or advertising sent directly to the target customer marketing activities. A list of target customers can rent, buy or no competition with other businesses to exchange. Use these lists, they should pay attention to the list of repetition, to avoid two or more products with a mailing sent to the same customers, causing resentment.
2. Catalog marketing:Marketers to target customers mailing list, or available for customers to obtain the directory at any time. The integrated operation of the complete production line mail order store more this way, such as Montgomery Ward • Company (Montgomery Ward), • Sears Roebuck (Sears Roebuck) and so on.
3. Telemarketing:Marketers to target customers by telephone for marketing activities. Phone penetration, especially in the opening 800 free phone so that consumers are more willing to accept this form. Many consumers through telephone inquiries about products or services, and make purchases.
4. Direct response television marketing:Marketing staff through on television about the products, sell products or sponsor a special program, marketing activities. In China, television is the most popular media, television channels are more, many companies have started marketing on television.5. Direct response print media:Direct response print media usually refers to magazines, newspapers and other print media, direct response advertising to do, to encourage the target members of the order by telephone or letter, to achieve the purpose of increasing sales and provide customers with knowledge of other services.6. Direct response radioBroadcast as a direct response to the dominant media can also be used as with other media, so that the customer feedback on the radio. With the broadcasting industry, an increasing number of radio stations, more and more professional the whole, some stations even for a particular segment of small groups or height for the direct marketing targeting those who seek to provide a precise the opportunity.
7. Network Marketing:Marketing staff through the Internet, fax and other electronic means of communication to carry out marketing activities. At present, such as books, computer software and hardware, travel services, etc., have generally started their online marketing business. In addition, marketers also use newspapers, magazines, radio and other media for marketing activities. The types of direct marketing can be a single use, can also be combined with use.
Direct marketing - FeaturesAlthough direct marketing as a marketing idea has long existed, but until the 1980s, people still think it is a method of distribution. It is widely accepted definition of Stan • Rip (Stan Rapp) and Tom • Collins (Tom Collins) by the definition: "Direct marketing is without a store, directly between buyers and sellers to complete transactions in a distribution form . "Although the above definition outlines the basic nature of direct marketing, but the role of direct marketing as more and more widely, it has been difficult to fully summarize the purpose of direct marketing.
Direct marketing and database concern is that each of its consumers and potential consumers. They are based on consumer buying behavior in the past to predict future behavior. This information is processed on an individual as a unit, even tens of thousands of consumers can still use it to carry out the analysis of individual behavior and decision-making. This does not mean that marketing research is outdated, but if you rely only on marketing research information obtained will be made generally applicable to the assumption that consumer behavior, this assumption when applied to individual circumstances, may be wrong. In short, direct marketing stressed that according to the analysis of information about individual decision-making, and finally to maximize customer lifetime value.
Characteristics of direct marketing can be summarized as connectivity, the target, control and continuity.1. Connectivity (interaction) refers to the marketing staff and the linkages between consumers, which includes two meanings: (1) how marketers target consumers on the market to provide responses to stimuli cause. (2) how consumers react. Interaction with consumers, marketers can gain effective control for target-oriented and consumer information and how to keep in touch with the information. Therefore, the four characteristics of direct marketing, the Internet is the centrally located.
2. Goal-oriented (targeting) is the marketing staff select a product or service information received into the process, information has been received income can be purchased product or service to consumers, or likely to become patrons of potential customers, or the majority of potential consumers. Marketing personnel can periodically check the results of the last campaign, in order to obtain more accurate goal-oriented information.
3. Control (control) refers to the management of marketing activities, including setting goals and plans, make budget and assessment. It is a cyclical process, marketers generally based on past results of the control process to develop plans for the future.
4 continuity (continuity) is to retain the existing customer base, to sell them other products and more advanced products. In business, a lot of profit from the existing customer base, so the continuity is very important. Interaction with customers to obtain important data, enabling marketers to better communicate with customers, timely access to their interests and preferences, to understand their views on marketing activities of the past. Although many companies do not realize the importance of continuity, but studies have shown that the product has been purchased re-sale to consumers the cost of attracting new customers only a small part. For example, in the new car market, the cost ratio of the two 1 / 5.
Direct marketing of the above four characteristics are interrelated, and its overall goal is to establish a database to keep old customers and attract new customers, maximize the customer lifetime value. Customer Lifetime Value is the life of an enterprise to bring the customer the total net income, which means that customers remain loyal to the company during the period, will bring the total value of expected future income.
The shortcomings of traditional marketing and direct marketing advantages:Marketing costs related to traditional marketing, advertising media costs, warehousing costs, channel costs, management and marketing costs are very high, and direct marketing to a certain extent, lower cost, and efficiency is improved.1, direct marketing to reduce overall customer costs. Direct marketing aspects of the exclusion of intermediaries increases, thus reducing commodity prices; while allowing the customer does not need to go out shopping can make their time, physical and spiritual cost to almost zero.2, direct marketing emphasis on time efficiency of customer response to the trend. Comparison shopping, modern people are more willing to invest valuable time to work, learning, communication, sports, leisure and other more meaningful things, and direct marketing telephone (or network) ordering, home delivery of benefits to customers shopping offers great convenience.
3, the promotion of network communication technology to promote the development of direct marketing. Media is the key to successful direct marketing. Today, advanced communication facilities, in particular the use of Internet technologies (According to statistics, China has 50 million mobile phones, 100 million fixed telephone; computer ownership in more than 12 million Internet users over 4 million) is to e-shopping has become a trend.
4, the direct response to customer demand for personalized marketing trend. Direct marketing by the manufacturer according to the specific needs of each customer customized products to provide customers with complete satisfaction with the goods. New century calls for direct marketing, but marketing strategy change has economic grounds. The traditional image of the advertising for many companies it is not too specific.
For example, most of the revenue from Coca-Cola 8% of Americans, but Coca-Cola is in the cook billion in television advertising to 100% of the people. This is a reasonable proportion of Coca-Cola tried to find the right ratio. Coca-Cola understand that each client must establish a closer relationship because no one has seen a customer base to buy Coke, every time a single customer.
Traditional advertising is facing a structural crisis. In order not to forget, companies must do more advertising. But only well-known and a good impression is not enough. Statistics show that consumers face every day a 1600 advertising messages. Not surprisingly, he will forget after a while a large part, the other part would be wrong to memory.
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