Wordz & Jargonz

Well, 

You might think that 'a word day' column ain't got any relevance with this blog related to Marketing, but then a good marketeer I  believe should have a good command over English Language & know some trendy, fundoo words & jargons to hold the attention of his potential customer or consumer. Hence, from today, I would be adding to the basket, one word & one jargon a day; something I believe would possibly have a long term effect, but also help me in my current goal of preparing for my placement procedures.

Today's word is:

Boffin: In the slang of the United Kingdom, Australia, New Zealand, India and South Africa, boffins are scientists, engineers, and other people engaged in technical or scientific research. The word 'boffin' (or 'boff'—often as an insult can also be used to refer to any particularly clever person. The closest American equivalent is 'egghead'.

Cognitive dissonance: Cognitive dissonance is an uncomfortable feeling caused by holding two contradictory ideas simultaneously. The "ideas" or "cognitions" in question may include attitudes and beliefs, the awareness of one's behavior, and facts. The theory of cognitive dissonance proposes that people have a motivational driveto reduce dissonance by changing their attitudes, beliefs, and behaviors, or by justifying or rationalizing their attitudes, beliefs, and behaviors. Leon Fessinger's Cognitive Behavior theory holds paramount relevance for a marketeer in studying Consumer Behavior- the feelings of postpurchase psychological tension or anxiety a consumer often experiences. Firms often use ads or follow-up calls from salespeople in this postpurchase stage to try to convince buyers that they made the right decision.

Drawbacks of Carbon Trading as it Stands Today

1. It enables government to find excuses for refraining from implementing tough measures against Global Warming
2. Kyoto protocol allows countries to allocate own industries large number of permits
3. The USA, Australia, China and other major polluters are not interested in carbon trading
4. Aviation, motoring and domestic energy use are excluded from carbon trading
5. CO2 emission growth from aviation is likely to cancel out any savings made under Kyoto
6. The carbon trading market collapsed in 2006 because too many permits had been allocated to polluting European industries e.g. no-one needed to purchase carbon permits to continue to operate within in their allocated carbon limits

Carbon Trading- An Insight

Welcome to the latest trend of trading 'polluting gases' where bankers maintain debit & credit of polluting account. Yes, Carbon Trading. Carbon trading is basically a commercialized activity that originates from protecting the earth from harmful emission of gases from industries. The concept of carbon credit is giving incentives to units which pollute less and disincentive the units that pollute more. Themost dangerous gases thrown out by the industrial units are - carbon dioxide,methane, nitrous oxide, hydroflourocarbons, perflurocarbons and sulphur hexafluoride, popularly called greenhouse gases.On the initiative of UNO (United Nations Organisation), Kyoto protocol was signed in 11December 1997 and it came into force from 16 December 2005. The Kyoto protocol aims to tackle global warming by setting target levels for nations to reduce greenhouse gas emission worldwide.

The Kyoto protocol is an agreement by which the ratifying countries have agreed to reduce their emission of greenhouse gases. Under the protocol, initial target is to reduce greenhouse gas emission to 5.2 per cent below 1990 base level. 172 countries have signed the Kyoto Protocol. These countries and their companies are the only ones allowed to engage in carbon trading.

Carbon trading (or Emission trading) is an administrative approach used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants. It is sometimes called cap and trade.Carbon emissions trading is emissions trading specifically for carbon dioxide (calculated in tonnes of carbon dioxide equivalent or (CO2e) and currently makes up the bulk of emissions trading. It is one of the ways countries can meet their obligations under the Kyoto Protocol to reduce carbon emissions and thereby mitigate global warming. Companies or other groups are issued emission permits and are required to hold an equivalent number of allowances (or credits) which represent the right to emit a specific amount. The total amount of allowances and credits cannot exceed the cap, limiting total emissions to that level. Companies that need to increase their emissions must buy credits from those who pollute less.The transfer of allowances is referred to as a Trade.In effect, the buyer is paying a charge for polluting, while the seller is being rewarded for having reduced emissions by more than was needed.Thus, in theory, those that can easily reduce emissions most cheaply will do so, achieving the pollution reduction at the lowest possible cost to society.Emissions trading principles are based on proposals by the Technocracy movement of the 1930's.Technocracy proposed a system of Energy Accounting, or emissions trading, to promote balanced and harmonious development throughout the world.

WHO ARE POTENTIAL BUYERS FOR CARBON CREDITS?

Any entity, typically a business, that emits CO2 to the atmosphere may have an interest or maybe required by law to balance their emissions through the mechanism of Carbon sequestration. These businesses may include power generating facilities or any kinds of manufacturers.

WHO ARE POTENTIAL SELLERS FOR CARBON FARMING CREDITS?

Entities that manage agricultural land might sell carbon credits based on the accumulation of carbon in their agricultural soils. Similarly, business entities that reduce their carbon emissionmay be able to sell their reductions to other emitters.

MARKET TREND

Carbon emissions trading has been steadily increasing in recent years. According to the World Bank's Carbon Finance Unit, 374 million metric tonnes of carbon dioxide equivalent (tCO2e)were exchanged through projects in 2005, a 240% increase relative to 2004 (110 mtCO2e) which was itself a 41% increase relative to 2003 (78 mtCO2e).In terms of dollars, the World Bank has estimated that the size of the carbon market was 11billion USD in 2005, 30 billion USD in 2006, and 64 billion in 2007. For greenhouse gases all trading countries maintain an inventory of emissions at national and installation level; in addition, the trading groups within North America maintain inventories at the state level through The Climate Registry. For trading between regions these inventories must be consistent, with equivalent units and measurement techniques. In some industrial processes emissions can be physically measured by inserting sensors and Flowmeters in chimneys and stacks, but many types of activity rely on theoretical calculations for measurement. Depending on local legislation, these measurements may require additional checks and verification by government or third party auditors, prior or post submission to the local regulator. Another critical part is enforcement without which the value of allowances are diminished. Enforcement can be done using several means, including fines or sanctioning those that have exceeded their allowances. Concerns include the cost of MRV and enforcement and the risk that facilities may be tempted to mislead rather than make real reductions or make up their shortfall by purchasing allowances or offsets from another entity.The net effect of a corrupt reporting system or poorly managed or financed regulator may be a discount on emission costs, and a (hidden) increase in actual emissions.

OPPORTUNITY FOR INDIAN COMPANIES

Almost all industrialized countries are huge buyer of carbon credit and all developing countries, where industrialization has not reached its peak, are supplier of carbon credit. Japan is the largest buyer of carbon credit while India and Brazil are amongst the largest suppliers of carbon credit. Being a developing country, India is exempted from the requirement of adherence to Kyoto protocol. India, however can sell the carbon credits to the developed countries.Most of the beneficiaries of the carbon trading are those companies that are investing in windmills, Biodiesel, Biogas. Actually by investing in such an alternative non-polluting source of energy, these companies will earn carbon credit in the form of CERs (Certified Emissions Reductions) to the tune they have not polluted the environment. These CERs will be sold by the Indian companies to companies, say in Japan, at market prevailing rate of CERs and make profit. Companies like Torrent Power have started projects, which enhance energy efficiency and in turn have earned CERs points. These CERs will be sold by Torrent Power to companies indeveloped countries and is expected to earn approximately Rs 200 crores. Several Indian companies are adopting such processes in their production units, which result in earning of CERs.Carbon trading has brought a huge opportunity for Indian companies. Companies can earn CERs by adopting energy saving and environment protecting methods and in turn can earn huge incomes by selling them. This opportunity will not exist forever for Indian companies. Once India is accepted as an industrialised country, she would have to adopt strict emission norms like other industrialised countries of the world and India may turn into a net buyer of carbon credit from other developing countries when that happens.

Why is Google Android beating Symbian?

In the battle of the open-source mobile platforms, developers have at least two choices:

Google Android, which is open source but (relatively) closed development,

or Symbian, which is open source...once it gets around to releasing the full source code.

Guess which one is winning?

Experts expect Android to become the second-most popular mobile platform within the next few years as it continues to gobble up Symbian's declining market share.

But why?

Symbian has been dismissive of Google Android, as well as smaller upstarts like the LiMo Foundation, arguing that the latter is overly focused on middleware for wireless operators and the former is fake open source with more hype than substance.

All of which might be true, but the reality is that it seems to be working for Android. Google has been signing new handset manufacturers at a frenetic pace, while Symbian has been holding steady with Nokia...and that's about it.

Despite Symbian announcing new handsets, Google is actually shipping Android. There's a big difference between marketing and reality. Google Android offers the latter.

For all the buzz that Android gets from developers, its success owes more to handset manufacturers than to open-source developers. Handset manufacturers and wireless carriers are hungry for alternatives to surging Apple and declining Microsoft. And while others may not be seeing source code in copious amounts, handset manufacturers are apparently getting their fill.

More than this, though, Google gives them a safe, consumer-friendly brand. Symbian does not.

This is the reason Google Android is winning. It's not about developers--at least, not yet. Neither Symbian nor Android really offers developers open communities and open code.

No, the difference today is brand. Google has it. Symbian does not, and that's despite decade-long dominance of the mobile market. I mean, before Windows started advertising its presence in mobile software sector & Android caught your eye in the newspaper, how aware were we of the Brand Symbian which resided in our very pockets!

Symbian still has a ways to go. It has a weak user interface (UI) that is supposed to get better, but that describes much that is wrong with Symbian today. Everything (source code, revamped UI, and resumption of market dominance) is always spoken of in the future tense.

Meanwhile, Google Android rolls on--not because it out open-sources Symbian, but rather because it out-executes it.

COLLABORATIVE COMMERCE

Creating a collaborative network of trade partners is key to strong business growth, according to a new study by Deloitte Consulting.

Companies are undergoing a shift in the way they compete, increasingly tying their competitive advantage to a "dynamic ecosystem" of trade partners, says the report put out by New York-based Deloitte. A survey of 300 business leaders shows that sharing decision making, workflow and data boost business more than 70%.

"Collaborative commerce has enabled companies to dramatically improve the way they manage their cross-enterprise, value chain processes," says John Ferreira, a partner at Deloitte Consulting. "The successful integration of business processes and information systems of different companies provided companies with a substantial competitive advantage -- these companies are seeing better profits, better revenue growth, greater market share and better return to investors."

Collaborative commerce is gaining increasing acceptance & an important example of it is stated below:

In the US about 50 FMCG companies that include Procter & Gamble, Levers, Nestle, Coke, Pepsi: - biggest names in the FMCG industry have got together and have invested in an exchange.This exchange is a separate company by itself.Several of these companies have a stake in this exchange.The company is called TRANSORA which is a neutral market place not only for the manufactures but it extends across the entire supply chain to suppliers, to dealers and customers.TRANSORA is looking at end-to-end Supply Chain market place.PROCTER & GAMBLE has an active participation in TRANSORA.TRANSORA has active operations in North America and Western Europe and has started signing up companies in Asia

Collaborative Commerce enables retailers, suppliers, and distributors to share information with one another in a standard business language, benefiting all members of the supply chain. This initiative includes the processes, technologies, and supporting standards that allow continuous and automated communication of electronic information between trading partners.

In today’s global commerce environment, the need for accurate, standards-based information is critical for conducting business efficiently. By standardizing the way information is communicated, and by having all trading partners accessing the same information, the opportunity for errors decreases dramatically, costs are reduced, and supply chains operate more efficiently.

Collaborative Commerce is based on the GS1 System — a suite of integrated supply chain standards. The GS1 System is accepted worldwide, accommodating the needs of all trading partners within the global trade community. The standards allow for products, services, and raw materials to be sourced and sold anywhere in the world.

COHESIVE MARKETING

My today's post introduces you to the concept of cohesive marketing whereby a group of companies or brands get together to promote their product under one common umbrella. The term may also be used when a company ventures to promote its different departments or different products/brands under its wings as one integral representation of the company's policy, credibility & character. The example I am going to enumerate today falls in the previous category where we talk about Indian Pharma Companies resorting to cohesive marketing, an article I found in Brandchannel.

The All India Organisation of Chemists and Druggists (AIOCD) is boosting the nation's vast pharmaceutical industry by moving toward cohesive branding.

By next February, the AIOCD plans to bring 20,000 retail pharmacies across India under one common brand. With the sector growing over 15% per year, the group says its target is 300,000 or more, to be brought under the common brand within several years.

While "branding" often brrings to mind massive global brands like Ford and Coca-Cola, the benefits of imposing a brand can be equally dramatic on local or regional enterprises. Under one brand, India's pharmacies will gain name recognition and a sense of service assurance, just as often-local pharmacy brands in the US like Walgreens and New York's Duane Reade stand as recognizable guarantees of service and product.

Undoubtedly, AIOCD's locations will offer scaled-up competition for India's existing retail pharmacy brands like as Apollo Pharmacy, which operates over 1,000 outlets across the country. While these brands may feel swamped by the sheer size of the new AIOCD alliance, they have a head start in profiting from brand-building. Apollo and Guardian Lifecare have taken the lead in developing private labels, with Bangalore-based Trust Pharmacy, Hyderabad-based MedPlus Pharmacy and Religare Wellness not far behind.

FLASH MOB MARKETING

A flash mob (or flashmob) is a large group of people who assemble suddenly in a public place, perform an unusual action for a brief time, then quickly disperse. The term flash mob is generally applied only to gatherings organized viatelecommunications, social media, or viral emails.The term is generally not applied to events organized by public relations firms or as publicity stunts.

This form of marketing has been successfully used in the past in the US mainly & has of recent taken an entry into India. A most recent example was one where Apparel Brand, Allen Solly employed 100 models dressed in their latest casual collection to move around our very own TGIP Mall (The Great India Palace, Noida) & they all froze together at different spots for 7 minutes. This really took the shoppers & all out their by surprise given that there was a quite a crowd gathered at the Mall give that it was a pleasant Friday evening on the 30th of October. The passers- by started prodding these people & stopped only when they saw the Allen Solly tags on their grab. The Brand definitely made quite an impression on a focused group of people & at a low cost too.

This is one amongst some of the recent attempts at cashing in on flash mob marketing, the other being Colors promoting Big Boss 3 or Channel V or 7Up engaging troop dancers to promote their new look. However, a Flashmob comes with its own liabilities. So long as its done in malls, it free from any legal policing, however, if it needs to be taken to streets, it must be done in a very calculated manner so as to not to disrupt any traffic or the normal rhythm. One wrong step can get you fined or slapped with a case under Sec. 37(1) in India.

Despite these hurdles, there is no doubt that the venture is novel and saves the much needed marketing expenditure during a recession (rather hopefully speaking in the post recession phase). A lot of companies are in fact allocating a handsome part of the promotion budget for BTL (below the line) promotion which previously stood at a meager ratio of 1:9 Vs ATL.But then, just like the guerrilla marketing tactics, it needs to be seen that this form of promotion is not over used, lest it looses its luster.