DAGMAR see Model

Data refers to facts and opinion that are collected. Data are in a raw state and have not been processed.

Hard data is the former being fact collected in scientific manner.

Soft data more informally gathered and are more qualitative (or subjective) in nature.

See also Primary data, Secondary data, Information and Intelligence.

See below Data warehousing, Database and Database marketing .

Data warehousing is a series of pieces of information kept on an internal computer system. It can contain information on (i) customers, (ii) internal records and (iii) information on the competitor.

Database
Definition #1. Database is a file of data structured in such a way that it may serve a number of applications without its structure being dictated by any one of these applications. (Chartered Institute of Management Accountants)
Definition #2. Database is a collection of available information on past and current customers together with future prospects, structured to allow for the implementation of effective marketing strategies.

Business database application: 1) Market research, 2) Marketing plans, 3) Marketing presentation, 4) Sales force coordination, 5) Market analysis, 6) Sales analysis, 6) Customer communications.

Internal databases (build up by the business itself) must contain certain items of data about business itself and also about the environment of the business.

Information of internal databases: 1. Internal resources: 1.1 Physical resources, 1.2 Human resources, 1.3 Systems, 1.4 Intangibles; 2. Environment data: 2.1 Competitive data, 2.2 Economic data, 2.3 Political data, 2.4 Legal data, 2.5 Social data, 2.6 Social data, 2.7 Technological data, 2.8 Geographical data, 2.9 Energy suppliers data, 2.10 Data about stakeholder in the business.

External databases: 1. Government statistics and reports (e.g. Office for National Statistics, Annual Abstract, BOTB Country Profiles), 2. Market research publishers, 3. Professional bodies (e.g. CIM library), 4. Reports from distributors, agents and middlemen, 5. 'Off-the peg' research company (e.g. AGB Superpanel), 6. Key statistical data (Central Statistical Office (for the UK), CENDATA (for the USA) and Eurostat (for the EU)), 7. On-line databases: (On Line Business and Company Data-bases by Helen Parkinson, On Line Management and Marketing Databases by Nick Parker, etc.). 15. Company information produced by organizations (Kompass, Dunn & Bradstreet, etc.)

See below Database marketing.

Database marketing is a collection of available information on past and current customers together with future prospects, structured to allow for implementation of effective marketing strategies.

The range of database application include: 1. Focusing on price prospects; 2. Evaluating new prospects; 3. Cross-selling related products; 4. Launching new products to potential prospects; 5. Identifying new distribution channels; 6. Building customer loyalty; 7. Converting occasional users to regular users; 8. Generating enquiries and follow-up sales; 9. Targeting niche marketing.

Management information provided by effective database: 1) Usage patterns, 2) Evaluation of marketing effectiveness, 3) Segmentation analysis to ensure accurate targeting, 4) Account analysis (value, duration, product type), 5) Updated market research information.

Promotion opportunities of utilizing customer database: 1. Discount coupons sent by post and targeted at customers who buy specific food items. 2. Targeting customers who should, but don't, buy certain goods. 3. Containing lapsed customers. 4. Forming special customer groups to target specific promotions (recipe clubs, customer events, etc.)

Key benefits of using database for customer retention: 1) To isolate customers as individuals, making communication more relevant; 2) To develop a profitable long-term relationship with customers, to maximize lifetime value; 3) To give added value to customers to ensure long term loyalty.

Key benefits of building accurate and up-to-date profiles of existing customers: 1. Extension of help to a company's target audience; 2. Stimulation of further demand; 3. Staying close to customers (direct marketing, customer care).

Sales invoice data and its marketing use: 1. Customer title - Sex coding, job description identification; 2. Customer first name - Sex coding, discriminates households; 3. Customer surname - Ethnic coding; 4. Customer address - Geodemographic profiling and census data; 5. Data of sale - Tracking of purchase rates, repurchase identification; 6. Item ordered - Benefit/need analysis, product cluster; 7. Quantities ordered - Heavy/medium/light use; 8. Price - Life time value of customer; 9. Terms and conditions - Customer service needs.

Application of database marketing to marketing planning: 1. Situation analysis: 1.1 Sales performance, 1.2 Customer data, 1.3 Competition information; 2. Marketing objectives (SMART); 3. Strategy and Segmentation; 4. Marketing operations (e.g. promotion, direct selling, etc.); 5. Activity timetable; 6. Marketing budgets; 7. Marketing planing control.

Application of database marketing to international marketing: 1. Marketing research; 2. Marketing communications; 3. Sales support / After sales service; 4. Logistics; 5. Niche marketing; 6. Relationship development; 7. Cost reduction.

Examples of marketing databases and software :
1. For total marketing planning - 'EXMAR'; 2. For strategic analysis - 'I THINK'; 3. For marketing research - 'Euromonitor'; 4. For market segmentation - 'MOSAIC'; 5. For inventory control - 'BARSTAR'; 6. For sales monitoring - 'Saletalk'.

See also EPOS (Electronic Point of Sale).

Debt/equity ratio Prior charge capital / Ordinary share capital and reserves

Debtor is a person or an entity who owes money.

Debtor days Calculated by multiplying debtors by 365 and dividing by the value of sales on credit. This ration reflects the company's efficiency in collecting debtor money by indicating the number of days' sales outstanding.

Debtors' payment period (average) Trade debtors x 365 days / Sales

Deciderssee Decision Making Unit.

Decision criteria See Choice criteria

Decision making
Types of decision: 1) Routine planning, 2) Short-run problem, 3) Pricing decisions, 4) Investment or disinvestment, 4) Longer-range, 5) Control.

Factors influencing pricing decisions: 1. The organization's objectives; 2. The market in which organization operates; 3. Demand: 3.1 Product life cycle, 3.2 Quality, 3.3 Marketing; 4. Price elasticity of demand; 5. Costs; 6. Competition; 7. Inflation; 8. Legislation; 9. Availability of substitutes.

Appraisal methods (evaluating a capital project): 1) The accounting rate of return method, 2) The payback method, 3) Discounted cash flow (DCF) techniques.

Decision-making process: 1) Analysis of problem, 2) Analysis of resources available, 3) Evaluation alternative solutions, 4) Decision-taking.

Also see Relevant costs, Non-relevant costs.

Decision Making Unit (DMU) is all those individuals and groups who participate in the purchasing decision process, who share some common goals and the risks arising from the decisions.

Decision Making Roles:
1) Initiators are a group within the DMU who begin the process of considering a purchase. Information may be gathered by this group to help the decision.

2) Influencers are a group within the DMU who help define the specification and also provide an input into the process of evaluating the available alternatives.

3) Deciders are a group within the DMU who have the responsibility for deciding on product requirements and suppliers.

4) Approvers are a group within the DMU who authorize the proposals of deciders and buyers.

5) Gatekeepers are a group within the DMU who, by controlling the flow of information, may be able to stop sellers from reaching individuals within the buying center.

6) Buyers are a group within the DMU who have the formal authority for the selection of suppliers and negotiating purchase terms.

7) Users are a group within the DMU who may initiate the buying process and help define purchase specifications.

Factors that are likely to influence members of DMU:
1) Organizational
2) Interpersonal
3) Individual
4) Environmental

Decision support system used by management to aid decision making on unstructured, complex, uncertain or ambiguous issues.

Elements of decision support computer systems: 1) The language subsystem used by the manager to communicate interactively, 2) The problem processing subsystem provides analytical techniques and presentation capabilities, 3) The knowledge subsystem which holds internal data and can access any required external data.

Also see Management information system.

Decision tree is an analytical tool for classifying the choices, risks, objectives, gains and information needs involved in different courses of action.

Delegated legislation Rules of law made by subordinate bodies to whom the power to do so has been given by statute.

Delegation is the granting by a superior to a subordinate of the authority to make decisions within certain spheres of influence. Note that the superior is still ultimately responsible for the tasks/decisions delegated.

Stages of effective delegation: 1. The appropriate person should be selected; 2. The subordinate should be properly briefed: 2.1 Appropriate instruction about how to do the job should be given, and in particular the expected performance levels of subordinate should be clearly specified; 2.2 The scope of the delegated authority must be specific; 3. She subordinate should be supported during the period the tasks are carried out. 4. At the end of the task, there should be proper debriefing.

Delegation is useful: 1) as it makes more times for managers (freeing management time), and 2) develops those staff to whom tasks are delegated (training and motivation).

Reasons for fail delegations: 1) Wrong tasks, 2) Wrong person, 3) For the wrong reason.

Benefits of increased delegation: 1) Increased autonomy, 2) Freedom in planning and managing staff, 3) Increasing recognition of staff efforts and motivations, 4) Training people, 5) Encouraging loyalty and trust, 6) Encouraging effective teamwork.

Factors to improve the chances of successful delegations: 1) The purpose of the delegation has to be clearly spelled out, 2) The person to whom the tasks are to be delegated should have the necessary training, skills and personality to be effective in the task, 3) The assignment should be discussed freely throughout, 4) Sufficient resources, particularly of time, should be available, 5) The manager must monitor progress, 6) The actual results must be reviewed against the stated objectives.

Delphi method is an expert opinion forecasting technique. The Delphi method is a technique which can be used if there is little historical data on which to base a forecast or if results are unstable and/or uncertain. A group of experts are asked individually to provide their views on what will happen in the future. The process: 1) To begin with, each expert gives an independent opinion, 2) The opinions of each expert are collated. 'Extreme' views are discarded, and a draft 'consensus' view is formulated, 3) The draft 'consensus' is circulated to the experts for their further comments, and depending on how they respond, the 'consensus' might be amended, 4) The process will continue until a forecast for the future has been prepared which has the acceptance of all or most of the panel of experts, 5) When there is some uncertainty among the experts, probability weightings might be given to different possible future 'scenarios' or events.

Demand curve A curve that projects the number of units the market will buy in a given time period at different prices that might be charged. (Philip Kotler)

Demand function Mathematical expression that shows how sales demand for a product is dependent on several factors.

A demand function can be set out as follows:
Qa = f( Pa, Aa, Da, Oa; Ic, TC, EC; Pb. Ab, Db, Ob; G, N,...)

where:
Strategic variables (Controllable variables):
Qa is quantity demanded of a product A per period;
Pa is price of product A;
Aa is advertising and sales promotion for product A;
Da is the design or quality of product A;
Oa is the number of retail outlets or other outlets for distribution of product A.

Uncontrollable variables
Consumer variables
lc is incomes of consumers/customers;
Tc is the tastes and preferences of consumers;
Ec is the expectation of consumers about future prices etc.

Competitor variables
Pb is the prices of related goods (substitutes, complements);
Ab is advertising/promotion for related goods;
Db is design and quality of related goods;
Ob is the number of outlets for distribution of related goods.

Other variables (PEST)
G is government policy;
N is the number of people in the economy/potential market.

Demand management see Economic policies.

Demand patterns are the trends and characteristics associated with consumer expenditure on the various goods and services currently marketed.

Demands Human wants that are backed by buying power. (Philip Kotler)

Demarketing Marketing in which the task is to temporarily or permanently reduce demand. (Philip Kotler)

Demand-pull inflation Inflation resulting from a persistent excess of aggregate demand over aggregate supply. Supply reaches a limit on capacity at the full employment level.

Democracy. Universal suffrage. Periodic free elections. Freedom of speech/media. Open political competition. Pluralistic - power spread. Majority rule/minorities are protected and equal under the law. Pressure groups free to lobby between elections.

Demographic environment embraces the size, structure and characteristics of population.

Demography The study of human populations in terms of size, density, location, age, sex, race, occupation, and other statistics. (Philip Kotler)

See also Geodemographics databases.

Department store A retail organiza-tion that carries a wide variety of product lines-typically clothing, home furnish-ings, and household goods; each line is operated as a separate department managed by specialist buyers or merchandisers. (Philip Kotler)

Departmentation See Organization structure.

Depreciation is the measure of the wearing or consumption or other reduction in the useful economic life of a fixed asset whether arising from use, affliction of time or obsolescence through technological or market changes.

Depth interview is an unstructured one, usually face-to-face and intended to elicit meaningful information from a respondent.

Strengths of depth interview: 1) Clarity of interpretation and analysis information, 2) Accessed intimate and personal information, 3) Non-confined respondents.

Weaknesses of depth interview: 1) Time consuming to conduct and analyze, 2) More costly than group discussions.

Deregulation is the removal or relaxation of restrictions on the production, distribution or sale of goods and services.

Derived demand Demand for organizational (especially industrial) goods is derived from consumer markets. If demand for end-product consumer good falls, then this has an effect along the production line to all the inputs. (Geoff Lancaster and Lester Massingham)

Desk research is the collection of secondary data in marketing research.

Descriptive research Marketing research to better describe marketing problems, situations, or markets - such as the market potential for a product or the demographics and attitudes of consumers. (Philip Kotler)

Devaluation is a reduction in the fixed or pegged exchange rate between one currency and other currencies.

Dialect Local variation of a language.

Differential advantage see Segmentation and Competitive advantage.

Differential/incremental cost see Overheads/costs/expenses.

Differentiated marketing A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each. (Philip Kotler)

Differentiation see Competitive strategies.

Differentiation focus see Competitive strategies.

Diffusion process the spread of a new idea from its source of invention or creation to its ultimate users or adopters (Rogers).
Diffusion process is similar to the product life cycle.

Factors determines the endurance of diffusion process: 1) Profitability, 2) Deterrence, 3) Scale of investment, 4) Market structure, 5) Characteristics of the new product, 6) Potential range of applications, 7) Environmental acceptability, 8) Change agents

Diminishing returns The law of diminishing returns (or law of variable production) states that as additional units of a factor or production are employed, while others are held constant, the additional output thereby generated (its marginal physical product) will eventually diminish.

Direct cost see Overheads/costs/expenses.

Direct distribution Supply of goods to customers without an intermediary (e.g. direct sales, mail order in some cases).

Direct exporting Exporting to overseas customers, who might be wholesalers, retailers or users, without the use of export houses etc. See also indirect exporting.

Direct investment
Major Determinants of Direct Foreign Investment :
A. Marketing Factors 1. Size of market; 2. Market growth; 3. Desire to maintain share of market; 4. Desire to advance exports of parent company; 5. Need to maintain close customer contact; 6. Dissatisfaction with existing market arrangement; 7. Export base.
B. Trade Restrictions 1. Barriers to trade; 2. Preference of local customers for local products.
C. Cost Factors : 1. Desire to be near source of supply; 2. Availability of labor; 3. Availability of raw materials; 4. Availability of capital/technology; 5. Lower labor costs; 6. Lower production costs other than labor; 7. Lower transport costs; 8. Financial (and other) inducements by government; 9. More favorable cost levels;
D. Investment Climate 1. General attitude toward foreign investment; 2. Political stability; 3. Limitation on ownership; 4. Currency exchange regulations; 5. Stability of foreign exchange; 6. Tax structure; 7. Familiarity with country.
E. General Expected higher profits

Direct mail
Definition #1. Means of promotion, whereby selected customers are sent advertising material addressed specifically to them (e.g. by post and/or fax).
Definition #2. Advertising that uses person-to-person communication through the mail rather than mass media. Advertising is sent via fliers, letters, brochures or reprints.

The ways to compile the mailing list: 1) From sales records, 2) From responses to advertisements, 3) By using ACORN, 4) By using direct mail agency, 5) By hiring/buying a mail list from specialist brokers, 6) From yearbooks, directories and membership.

Characteristics of direct mail: 1) Fast growing medium, 2) Highly targeted/personalized, 3) Creative formats, 4) 'Junk' mail, 5) Lead times.

Formats of direct mail: 1) Distinctive shapes, 2) Colors, 3) Envelopes, 4) Materials.

See also Factors driving/restarting the move to international direct mailing.

Direct marketing
Definition #1. Direct marketing is an interactive system of marketing, which uses one or more advertising media to effect a measurable response and/or transaction at any location.
Definition #2. Direct marketing is the planned recording, analysis and tracking of customer behavior to develop relational marketing strategies.
Direct marketing is a very personal, precise and powerful form of communication. It can use various distribution channels and so it is highly flexible and affords improved creative methods. Because of its precision it is possible to measure the financial implications of specific campaign very accurately.

Direct marketing benefits: 1) Market information (usage patterns), 2) Measurement tools for marketing activity and improved segmentation, 3) Targeting to minimize wastage, 4) Benefits of customer retention.

The inherent advantages of direct marketing: 1) Target and captive audience, 2) Cost-effective, 3) High control and accountability.

Effective direct marketing (4 C's): 1) Customer focused, 2) Cost-effective, 3) Convenient, 4) Competitive.

Direct marketing media: 1) Direct mail, 2) Direct response advertising, 3) Press inserts, 4) Mail order, 6) Electronic media, 7) Database marketing, 8) Radio, 9) Televisions, 10) Telemarketing, 11) Statement stuffers, 12) Take-ones, 13) Door to door, 14) Computerized home shopping, 15) Home shopping networks (such as QVS).

Reasons of alter the balance of promotional budget to direct marketing:
1. Growth of own store labels, 2. The power of multiplies, 3. Usual media advertising costs, 4. Action vs. branding, 5. Information revolution and databases, 6. Fragmentation of the media. 7. Targeting of customers, 8. Special promotions.

Direct measures:
1) Cost per response = Cost of Promotion / Number of Responses; Advantages: (i) Measures performance of ad in media, (ii) Database building; Disadvantages: (i) No volume indicator, (ii) No indicator of conversion, (iii) No value indicator.
2) Cost per contract = Cost of Promotion / Number of Contracts; Advantage: Considers customers vs. respondents. Disadvantages: (i) No volume indicator, (ii) No value indicator.
3) Conversion rate = Number of Contracts*100% / Number of Responses; Advantages: (i) Measurement of quality of response, (ii) Indicates performance of fulfillment material. Disadvantages: (i) No volume indicator, (ii) No value indicator.
4) Average contract value = Total Value of Contracts / Number of Contracts; Advantages: (i) Indication of quality of booking, (ii) Inherent problems of averages: masks high and low figures; Disadvantage: No volume indicator.
5) Acquisition Cost = Cost of Promotion * 100% / Value of Contracts; Advantages: (i) Indication of contract's booking, (ii) Considers value of business; Disadvantages: (i) No volume indicator, (ii) No indication of customer lifetime value, (iii) No indication of profitability.
6) Rejection rate.
7) Conversion rate.

Direct product profitability
Merits of using Direct product profitability : 1. Identify those products that are highly profitable; 2. Identify products making loss; 3. Determine causes for loss or low net profit; 4. Identify areas where economies of scale can be applied; 5. Clearly show all cost involved in getting product from production line to customer.

Direct response TV marketing Television ads that require a consumer to call an 800 or 900 telephone number. (Responsive Database Services, Inc.)

Direct selling is the use of a salesperson to sell a product, as opposed to advertising etc.

Direct taxation Tax levied directly on individuals or firms, such as income tax, corporation tax, and capital gains tax.

Discount A straight reduction in price on purchases during a stated period of time. (Philip Kotler)

Discount store A retail institution that sells standard merchandise at lower prices by accepting lower margins and selling at higher volume. (Philip Kotler)

Discounted cashflow is the discounting of future cash flows of a capital project to ascertain present value.

Discriminatory pricing Selling a product or service at two or more prices; the difference in prices is not based on differences in costs. (Philip Kotler)

Distribution and selling expenses see Overheads/costs/expenses.

Distribution channel A set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or industrial user. (Philip Kotler)

Key functions of distribution channels: (1) Information: the collection and dissemination of information about current customers, competitors, and other actors and forces in marketing environment. (2) Promotion: the development and dissemination of persuasive communication concerning the offer, designed to attract customers. (3) Negotiation: the attempt to reach final agreement on price and other terms so that transfer of ownership or possession can be achieved. (4) Ordering: the backward communication intentions to by the marketing channel members to the manufacturer. (5) Financing: the acquisition and allocation of funds required to finance inventories at different levels of marketing channel. (6) Risk taking: the assumption of risk connected with carrying out the channel work. (7) Physical possession: the successive storage and movement of physical products from raw materials to the final customer. (8) Payment: buyers paying their bills through banks and other financial institutions to the sellers. (9) Title deed: the actual transfer of ownership from one organization or person to another.

Criteria for the selection of a distribution channel:
1. Internal factors: 1.1 Economic criteria - Each channel alternative will produce a different level of sales, costs and capital investment required; 1.2 Control criteria - There must be means of motivating and evaluating the performance of channel against criteria such as customer delivery time, cooperation in promotion, coverage of the market, etc.; 1.3 Adaptive criteria - Each channel involves some duration of commitment and loss of flexibility; during this period other distribution channels may become more effective.
2. External factors: 2.1 Customers; 2.2 Cultural differences between channel members, expectations of each other; 2.3 Competition (Power, Distribution structure); 2.4 Company objectives; 2.5 Communications.

Channel design will be affected by the following : 1. Buyer behavior, 2. Product features, 3. Competition and competitive advantage, 4. Company objectives in the market, 5. Mode of entry.

Major store and non-store types: 1) Supermarkets, 2) Department stores, 3) Specialty shops, 4) Discount houses, 5) Category houses, 6) Category killers, 7) Convenience stores, 8) Catalogue stores, 9) Mail order, 10) Automatic vending.

See below Distribution channels Distribution research and Distributor.

See also Logistics.

Distribution channels Elements of the system of delivery of merchandise to customers from the manufacturer or wholesaler, including retailers, brokers, and shipping companies; also includes discussions of store merchandising and cross-merchandising. (Responsive Database Services, Inc.)
See also Distribution channel.

Distribution research
Type of data to be collected: 1. Number of calls per period, 2. Number of sales / number of calls, 3. Sales revenue per call, 4. Profit per call, 5. Sales revenue per customer, 6. Profit per customer, 7. Average order value, 8. Sales expenses / sales revenue, 9. Sales expenses / profit per customer, 10. New accounts as a percentage of total accounts, 11. Performance versus forecasts.

Distributor is customer with preferential rights to buy and sell a range of a firm's goods in a specific geographical area.

Elements of a distributor agreement:
A. Basic Components
1. Parties to the agreement
2. Statement that the contract supersedes all previous agreements
3. Duration of the agreement (perhaps a three- or six-month trial period)
4. Territory: a. Exclusive, nonexclusive, sole; b. Manufacturer's right to sell direct at reduced or no commission to local government and old customers
5. Products covered
6. Expression of intent to comply with government regulations
7. Clauses limiting sales forbidden by U.S. Export Controls or practices forbidden by the Foreign Corrupt Practices Act
B. Manufacturer's Rights
1. Arbitration: a. If possible, in the manufacturer's country b. If not, before International Chamber of Commerce or American Arbitration Association, or using the London Court of Arbitration rules; c. Definition of rules to be applied (e.g., in selecting the arbitration panel); d. Assurance that award will be binding in the distributor's country
2. Jurisdiction that of the manufacturer's country (the signing completed at home): if not possible, a neutral site such as Sweden or Switzerland
3. Termination conditions (e.g., no indemnification if due notice given)
4. Clarification of tax liabilities
5. Payment and discount terms
6. Conditions for delivery of goods
7. Nonliability for late delivery beyond manufacturer's reasonable control
8. Limitation on manufacturer's responsibility to provide information
9. Waiver of manufacturer's responsibility to keep lines manufactured outside the United States (e.g., licensees) outside of covered territory
10. Right to change prices, terms, and conditions at any time
11. Right of manufacturer or agent to visit territory and inspect books
12. Right to repurchase stock
13. Option to refuse or alter distributor's orders
14. Training of distributor personnel in the United States subject to: a. Practicality; b. Costs to be paid by the distributor; c. Waiver of manufacturer's responsibility for U.S. immigration approval
C. Distributor's Limitations and Duties
1. No disclosure of confidential information
2. Limitation of distributor's right to assign contract
3. Limitation of distributors position as legal agent of manufacturer
4. Penalty clause for late payment
5. Limitation of right to handle competing lines
6. Placement of responsibility for obtaining customs clearance
7. Distributor to publicize designation as authorized representative in defined area
8. Requirement to move all signs or evidence identifying distributor with manufacturer if relationship ends
9. Acknowledgment by distributor of manufacturer's ownership of trademark, trade names, patents
10. Information to he supplied by the distributor: a. Sales reports b. Names of active prospects; c: Government regulations dealing with imparts d. Competitive products and competitors' activities; e. Price at which goods are sold; f. Complete data on other lines carried (on request)
11. Information to he supplied by distributor on purchasers
12. Accounting methods to be used by distributor
13. Requirement to display products appropriately
14. Duties concerning promotional efforts
15. Limitation of distributor's right to grant unapproved warranties, make excessive claims
16. Clarification of responsibility arising from claims antil warranties
17. Responsibility of distributor to provide repair and other services
18. Responsibility to maintain suitable place of business
19. Responsibility to supply all prospective customers
20. Understanding that certain sales approaches and sales literature must be approved by manufacture 2L Prohibition of manufacture or alteration of products
22. Requirement to maintain adequate stock, spare parts
23. Prohibition of transshipments

Advantages of a single distributor : 1. One corporate presence eliminates confusion among buyers and local officials. 2. The volume of business that results when exports are consolidated will attract a larger distributor. The larger will have greater influence in its local business community. 3. Communication is less plagued by noise. This will have a positive effect in many areas, from daily information flows to supervising and training. 4. More effective coordination of the sales and promotional effort can he achieved. 5. Logistics flows are more economical. 6. A stronger presence can he maintained in smaller markets or markets in which resources may dictate a holding mode, until more effective penetration can be undertaken. 7. Distributor morale and overall principal-intermediary relationship are better.

Diversification A strategy for com-pany growth by starting up or acquiring businesses outside the company's current products and markets. (Philip Kotler)
Also see Ansoff matrix.

Division of work Specialization on a part of a job.

Divisionalisation Arrangement of a business innate autonomous units each with its own revenue costs, capital expenditure programs.

Dogs see Boston classification.

Documentary credits A system of trade finance facilitating exports, in which a seller and a buyer arrange through their respective banks to make payment on presentation of certain. documentation.

Dominant firm is one that controls a relatively large share of the market and whose actions tend to be followed by smaller competitors.

Downturn see Business cycle.

Draft a preliminary plan or outline of a topic or report.

Dumping Sale of goods in an overseas market at a price lower than would be charged in the home market. Alleged dumping has been an excuse for protectionist measures particularly by the US and EU against companies from Japan and the Third World, to protect national/regional firms. Examples abound in consumer electronics industries.

Duopoly is a market which is supplied by only two firms.

Durable goods Consumer goods that are usually used over an extended period of time and that normally survive many uses. (Philip Kotler)