Page 135 - DMGT547_INTERNATIONAL_MARKETING

International Marketing

Notes remember that cost should not be over emphasized. The main marketing goal is to maximize
profits and production cost reductions should be considered as a secondary objective.

Task Make a list of Companies that provide standardised products all over the world.
Give the product profile of any two of them.

Self Assessment

Fill in the blanks:
7. A new product is advantageous if it people can try it first in small quantity. This quality is
referred to as………………

8. Cost reduction should be ………………objective of business.

Caselet Cotton Production/Marketing Interface

Spinners
Machines are highly flexible, that is they can usually switch to a variety of yarn
requirements. The machines are geared to high production, are automated and are of a
precision for constant quality provision. There are strict process controls and built-in
quality control. Poor raw material, especially when contaminated with metal particles,
damages opening mills, grid knives, fans and card clothing. Previous devices employed
to remove these (magnets) are becoming less effective. The consequences are damage in
the blow room and carding and danger of fire. Quality is therefore defined as properties
of the end use (clothing etc.), efficiency of weaving and knitting and the efficient running
of the spinning plant. Spinners require raw cotton which is free of trash, dust, sugar and
honey dew contamination, seed coats, bark and foreign fibres. Further requirements are a
certain length (could be short, medium or long), uniformity of length, strength, fineness,
maturity and a certain elongation and colour.

Suppliers
In order to meet these high quality demands, the growers have to ensure that the production,
picking and ginning is of a very high standard.

Cotton Grading
The Liverpool Cotton exchange, for one, relied on the skills of its experts to manually
classify raw fibre purchases for its clients. It still holds the “standards” for length, colour
and trash content. As well as the demands of modem machinery, the lack of standardised
measuring and cotton classification procedures has resulted in commercial conflict and
legal disputes about the true nature of traded cotton. Now, computer based high volume
instrument listing systems of raw cotton (HVI systems) are available. The system can
handle large numbers of bales, reduce variation in classification and the need for highly
trained bate classifiers.

For cotton exporters the system offers the following advantages:
enhanced objectivity in classification
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