Essential Marketing for Every Company, Product and Service

Consider marketing to be an ongoing process, rather than a discipline with a 'start' and a 'finish' and you are likely to reap far better benefits from your efforts.

Because marketing deals with an ever-changing entity: markets.

And markets are made up of dynamic, ever-changing buyers. They age, change their spending habits, adapt their tastes and their needs; people come and people go.

One of the most fascinating things about aging has been the realisation that I am no longer considered part of any real target market. No one fights to sell me property, insurance, furniture, music or fashion any more. I already have so many of those things. But if I want to replace a saucepan, I find they are now sold in sets. If I want one, I must buy six. Surely only newlyweds need six new saucepans...what on earth would I do with the other five?

And, let's be honest, I am no longer sylph-like, so in more ways than one, I no longer fit the mould. I'll only want a new home if I down-size; my furniture is mainly antique, not mass-produced; my music is mellow and has stood the test of time and I've bought all the insurance I can afford (and some I no longer can).

Marketers look to much younger people to buy most of their products: the teeny-weenies, the teenage hellions, the upwardly mobile or future families; in short, Generations Y and Z. On my part, that's good! The only marketers who still bother me are banks (and if they checked my bank balance and debt load first, they'd leave me alone entirely!)

Where to start with a marketing mix?

Affordability is as good a guide as any. No SME would book ongoing national TV coverage, for instance. Not only is it unaffordable, but only large companies and franchise systems can service national response to great TV advertising.

Here are ten great commandments for successful management of the marketing process:

1. Your market knows what it wants. You may be bright; you may be clever, but the people who buy (or don't) also have opinions and are easily swayed. Never assume you know what your market needs. Ask it! Tons of companies target markets that provide little of their income.

2. Continually ask questions. The best marketers have insatiable curiosity and questions reveal questioning, intelligent minds. Products fail daily because they are the wrong colour, are too big or too small...questions need answers; find them.

3. Back up all argument with evidential rationale. Argument without facts or proof to back it up is merely opinion. Just because we like something, doesn't mean others do.

4. Lead with strong conviction. It's management's job to lead onwards into new territory. If your team grumbles and disagrees, get them to find their own answers, but don't discount their opinions. Continually 'pushing the envelope' is essential to good marketing management.

5. Surround yourself with positive people. I'm in two minds about this...while essential optimists make every team easier to co-ordinate, I don't believe marketing should forge ahead without relevant research, assessment and report-back. If people don't like the taste, they'll only buy the muffin once and sales will drop before the marketing campaign is done. Ra-ra people may bolster your confidence, but they could also easily miss essential detail.

6. Learn from your mistakes. If you don't take risks and make mistakes, you won't learn anything about your products, your services or your market. Marketing without ongoing research markets to a vacuum. Always aim to reach beyond what you already know.

7. Don't do it alone. Whether you have an internal marketing team or you use an agency or freelancers, listen and include every opinion you can. Discover each person's value and apply it to the tasks in hand.

8. Commit to generating momentum and dynamic activity. Campaigns include providing feedback, like researching target markets, product popularity, service needs and follow-ups. How many enquiries did your promotion generate? Activity based on logic generates momentum and gets results, creating confidence in the marketing process.

9. Hire people who are smarter than you. For true innovation, new ideas are essential and new ideas are generated, not learnt. Find people who think differently and, once tested, let them manage new initiatives. By all means, expect status reports, but give them relative freedom to operate.

10. Honour your failures. That's right! With no failures, you've not learnt what your buying public doesn't like! Whether you use this approach in product design, service orientation or in the promotional context, failures give you valuable contextual information for future decisions.

More on Bootstrap Marketing - One More Way to Launch Your Product in a Tight Market

Every business, organization and individual I know has been impacted in some way, almost always negatively, by the current economic downturn. The ripple effects of slow sales, shrinking home equity, foreclosures and job downsizing has been pervasive. Governments are experiencing record dips in tax revenues. Church and charity donations are logically imploding as citizens attempt to shore up their personal finances and survive the fiscal carnage taking place all around them.

As job losses occur, and I believe more startling, many of these jobs will not be replaced when the economy returns to a more normal footing, my marketing consulting firm is approached with a slew of new business opportunities being presented by fired and laid off workers. Many are former middle managers who have been terminated and received some type of severance package. Their goal is often to leverage this small purse into a business opportunity.

Some have panic in their eyes as they try to find an alternative way to make a living. Some are simply unrealistic. Many think they will need to fund their start-up with an investment round from angel investors. Most have never tried to launch a product before so the process is obviously daunting. The advice we seem to provide most regularly is this: slow down, vet your business plan again and be realistic in the assumptions you are constructing your enterprise around.

The universal issue that confronts entrepreneurs, and always has, is funding. If you have no available funds, cannot put any sweat in the game, or expect to use OPM (Other Peoples Money) in lieu of your own, stop now. There are Angel Investors who invest in early stage startups, however, they are rare, highly targeted and exceedingly choosy as they have a virtually unlimited supply of opportunities available. Most investors use the old three F adage for launch funds: "this type of start up money comes from Friends, Family or Fools".

So what can the newly driven entrepreneur do to launch a product in a competitive market with only a small amount of working capital on hand.

We typically attempt to customize a strategy including guerrilla and bootstrapping marketing. There is no single definition or road map for this type of market penetration strategy. Much like guerrilla warfare, which is free flowing and conducted based on terrain, climate, force size and enemy disposition, new products should take the approach that there is a chink in market armor, discover it and fill the niche.

Almost always a bootstrap marketing campaign starts at the local level. Every entrepreneur wants to see their product on every store shelf in America from the get go. However, the capital requirements required to support national distribution is huge. By working the home turf the product can be nurtured, tested, seasoned and most importantly proven. The most important day in any new businesses life is the day a re-order is placed. This confirms the first stage of market acceptance.

Here is a simple example of bootstrapping a product that we have utilized numerous times to successfully get a line of product in front of consumers:

Let's assume you have a gourmet food product that you are keen to get to market. Utilize the services of local private packer and build a minimal inventory.

Be sure to make sure that the packer signs a secrecy agreement that protects your recipe. Make sure that the label meets all government requirements.

Produce a short film production (DVD) with voice over, music optional. Modern recording equipment makes this process virtually zero cost. Shoot the piece (video loop) at home, or on a picnic table and in the lab/commissary of the private packer. Detail the product, how you developed the product, have on air quotes for attribution from friends and others that love the product and possibly show the lab work being done to safely produce the item in a government licensed facility.

If you live in a town that has five malls or lifestyle shopping centers, choose the property that has demographics most likely to appeal to consumers of the type of product you are selling. Then negotiate with property management to rent a cart or kiosk on a monthly basis. January through September you will pay a basic rent. October through December, the holiday season, your rate will soar, but so will sales.

Typically shopping centers are open about 70 hours per week. The cart can be manned by you, family members or hired students with a minimal salary and a commission incentive. The stand can be inexpensively merchandised with point of purchase display, signs and a television running the DVD video loop. Demonstration of the product will enable consumers to experience the features and benefits of your product. If the product is a food product, you will want to sample the product, for instance.

Once sales commence, and proof of product performance is confirmed, the kiosk can be replicated in nearby malls and ultimately in proximate cities. Typically, we plan sales models to enable the expansion of the cart or mall kiosk to additional locations utilizing the profit from the alpha location.

The bootstrap path described above is just one way to launch a consumer product without the benefit of a funding round or a rich Aunt Bertha available to write a big check. Most people do not have rich friends or family to reach out too for investment. The venture capital process is slow, daunting and fraught with tons of competition chasing precious few dollars. Nevertheless, successful entrepreneurs find a way and bootstrapping is often the most available method of getting a product to market.

We have used variants of bootstrapping many times to benefit clients seeking to overcome launch hurdles. Flea markets, consignment, advertorial, local management of national chains, targeted direct response and many more avenues can be crafted to fit the bootstrap model. Most new entrepreneurs have been lead to believe that a heavy capital investment is essential to insure marketing success. Experienced entrepreneurs know otherwise. They know that there are many other, usually more attainable, ways to achieve their goals.

Geoff Ficke has been a serial entrepreneur for almost 50 years. As a small boy, earning his spending money doing odd jobs in the neighborhood, he learned the value of selling himself, offering service and value for money.

After putting himself through the University of Kentucky (B.A. Broadcast Journalism, 1969) and serving in the United States Marine Corp, Mr. Ficke commenced a career in the cosmetic industry. After rising to National Sales Manager for Vidal Sassoon Hair Care at age 28, he then launched a number of ventures, including Rubigo Cosmetics, Parfums Pierre Wulff Paris, Le Bain Couture and Fashion Fragrance.

Geoff Ficke and his consulting firm, Duquesa Marketing, Inc. (http://www.duquesamarketing.com) has assisted businesses large and small, domestic and international, entrepreneurs, inventors and students in new product development, capital formation, licensing, marketing, sales and business plans and successful implementation of his customized strategies. He is a Senior Fellow at the Page Center for Entrepreneurial Studies, Business School, Miami University, Oxford, Ohio.

Distribute Your Product to Convenience Stores

Article also includes:

-Description of various organizations typically found in an inventor's distribution channel.

-Explanation of how to find a distribution channel for your product.

Many inventors have small novelty products where they want their products sold to convenience stores. This has been a difficult market for inventors because the distributors are typically rack jobbers who actually own the merchandise and buy at 40 to 45 percent of retail. The distributors can be hard to find as they don't have a Standard Industrial Classification (SIC) dedicated to them, and most operate on the office supplies distributor SIC code.

Recently on a project though, I can across a great source, Mr. Checkout. According to the website description "Mr. Checkout is a national organization of (DSD) Direct Store Delivery Wagon-Jobbers, Distributors, Retail Merchandisers and Wholesale-to-Distributor Warehouses servicing Convenience and Grocery Stores in the US since 1989. Our DSD / Full-Service Merchandising Distributor Members call on c-stores weekly." The site has a large of services including a Walgreens merchandising program and a product placement blitz service. Everyone should check this site out if you have a product for drug stores, convenience stores or grocery stores. I can't vouch for the association but I did find the site had a great deal of helpful information.

Over the years I have found that inventors are unfamiliar with distribution, which is the channel that a product follows to take to market. Often products are handled by your own direct sales efforts, reps (also called manufacturers' sales agents), brokers, specialty distributors, wholesale distributors, other manufactures with complementary lines, and rack jobbers all who may play a role in selling a product. The path your product follows to market is called a distribution channel. For example you may sell a product through a rep to a rack jobber distributor who sells to convenience stores who then sells to the consumer.

Description of terms often used when discussing in the distribution channel:

Direct sales: Indicates that sales are handled by the selling company's own sales force.

Reps (manufacturers' sales agents): Independent contractors that promote a Company's line, but have very limited authority to commit a company to any but its standard sales terms. In effect a salesperson that represents a variety of companies with non competing product lines. They typically call on a specific industry, and carry product lines where the sales volume isn't large enough to justify a direct salesperson. Reps don't take title on a product and work commonly on a 5 percent to 20 percent commission.

Brokers: Brokers are similar in some respects to a rep, they are independent from the companies they serve and receive a commission but they are more oriented towards the buyer than the seller. A rep will not carry competing lines and will have a wide range of products. A broker has a narrow range of products and many of them compete. An insurance broker, for example, carries lines of insurance from many companies, and will chose the company that is best for his customer. An insurance agent carries only one company's products, and tries to steer everyone to buy those products. A clock broker, for example, might have three stores as customers, and have access to many lines of clocks. He would then offer clock lines to his customers so they would have a constantly changing variety of clocks. Reps are far more common than brokers.

Private label: This is a practice where a company makes a product that it sells to another company that markets the product under their brand name. For example, a toy company might make a toy that is sold under the Toys R Us label. Or it might make a toy that is sold to Play School and then Play School would sell it under its label. Private labels sellers own the rights to the product and develop and produce the product to their specifications. Toys R Us might also create a develop toys that they have produced by a manufacturer. That manufacturer would be a contract manufacturer, rather than a private label manufacturer, because it didn't create the product and it doesn't own rights to the product.

Specialty retail distributors: Distributors serving small markets, for example baby stores or bike shops. These distributors take title to the product and promote the product and typically carry many products from one product inventor oriented companies. They are a key component in most inventor companies' distribution plans. They typical mark up (raise their price by) is 35 to 40 percent before selling to retailers.

Industrial distributors: These companies typically sell directly to industrial companies, versus selling to a retail store. Graingers and Fastenall are examples of industrial distributors that sell a wide range of products to companies. You also have specialized industrial distributors. Some examples would be a pump and compressor distributors, a distributor that sell products for high temperature furnaces, or a company that supplies safety equipment. These companies typically have a high level of technical support to help chose the right products and then get the products to work effectively for them.

Trade distributors: These are distributors that deal with tradesmen versus industrial or consumer oriented accounts. Plumbing distributors, wood products distributors that sell to contractors, auto parts distributors that serve car repair shops are just a few of the types of distributors that sell to various trades.

Wholesalers: Wholesalers are also a distribution point between manufactures and their customers. While distributors provide promotion and service, wholesalers typically don't. They also rarely carry products from inventors as they purchase very large stocks of products and serve markets like grocery stores. Like distributors they take ownership of the product, but typically only mark the product up 15 to 20 percent.

Rack jobbers: Rack jobbers are a specialty type of distribution. Most distributors take title to the product and then sell it to a store or industrial company that takes title. Rack jobbers instead rent portions of a store, which might just be a section of a rack, or endcap positions at the end of the store aisles by the cash registers. Durable hair care products (brushes, combs and other product related hair care products) at drug stores are a typical rack jobber item. The rack jobber owns the merchandise in the store, replaces it and is only paid for the merchandise when it is sold by the store. Typically rack jobbers raise their purchase price 50 to 75 percent and then the stores mark the product up an additional 50 percent.

Selling through other manufacturers: One of the reasons companies use reps is that they don't have enough sales volume on their own to justify a direct salesperson. Those companies are often willing to pickup a line from another company if it puts them in a position to have their own direct sales force.

How to find agents and distributors.

Step 1: Start by looking for trade associations, trade magazines and trade shows. You can find associations and trade magazines with Google searches if you are lucky, or by going to one of your larger libraries, where you can look for The Encyclopedia of Associations by Gale Research, and also Gale Research's Directory of Magazines and Broadcast Media. Both of these directories have a wide range of groups for even thee smallest trade associations and trade magazines.

Once you find a list of associations and trade magazines you should go to their site and look for a list of manufacturers' representatives or distributors. For example I went to look for products for the baby industry in Gale's Encyclopedia of Associations. I found the association Juvenile Products Manufacturers Association. When I went to the web site, jpma.org, I found they had a list of manufacturers sales agents. Often the web sites will also have a list of distributors, similar to the Mr. Checkout web site.

Step 2: Develop a list of manufacturers in the industry. You can find lists of manufacturers in the trade association and the trade magazines web sites. Trade magazines will also have a list of trade shows. If you go to the web sites for those trade shows you can usually get a list of exhibitors. You can make the list more complete by using your library again. Most bigger libraries have a service called Reference USA in their online services. You can also use the service at home once you have the library password. Go to the site http://www.referenceusa.com before going to the library to see what information you will need. Then look up the SIC codes for a few companies on the site. SIC stands for Standard Industrial Codes, and typically most companies in the industry will have the same code. Once you have the SIC Codes you can do a search based on SIC codes and get a list of many of the companies in the industry.

Step 3: Go the web sites of companies in the industries. Some of the companies will list distributors, and others will list manufactures representatives. Other companies will be looking for representatives or distributors. Often it pays off to call those companies and see if they would like to partner with you in marketing your products. This is a tactic to consider because often manufacturers reps and distributors don't want to carry a line that is too small. You and your partner company might have enough volume together to entice distributors or manufacturing reps to carry your product.

You can also find representatives at the manaonline.org, which is the site of the manufacturers' agents' national association web site.

Success Tip

If you are a minority or women-owned business you might want to check out the site http://supplierregistration.target.com/Supplier/supplier_registration.aspx to get idea of the information you need to know to become a supplier for a leading store.

Don Debelak is a well-known invention expert who has worked with new products and inventions for over 25 years and is the author of four of the best-known invention books of the last 15 years. Don runs the One Stop Invention Shop, http://onestopinventionshop.net, with a team of expert associates. The One Stop Invention Shop provides great service along with lots of free information to help inventors.

Natural and Organic Product Makers Must Be Very Careful When Developing Formulaes and Recipes

The consumer product world is undergoing a green revolution. Marketers are racing to be the most green, most natural, most organic. Trade groups and organizations are marketing seals of approval, ala good housekeeping, to bedazzled innovators. There is a "gold rush" aura to this stampede.

When a large, multi-national firm like p&g, or general mills touts their green bona fides, the consumer can trust that these brands have been properly vetted. Teams of lawyers review every label statement and product performance claim. Publicly traded companies such as these cannot afford any risk of lazily policing their quality and standards. Huge quality control groups and research and development departments oversee every step of new product development, ingredient and product testing. All of this is accomplished long before a concept is turned over to the sales, marketing and branding pros to prepare market launch and consumer consumption.

The rapid growth of social media and the internet has greatly enhanced and accelerated the opportunity for entrepreneurs to launch artesian and micro-brands. My consumer product development and marketing consulting firm reviews many of these projects. These innovators are passionate about the hand crafted soap, skin care moisturizer, barbecue sauce, energy drink or gourmet candy they produce and proudly tout as "all natural" or "organic".

Many of these entrepreneur's are self-taught. There was a time when this was considered a positive business trait. No longer! The risks associated with legal and insurance issues must be paramount for every small green business. Too often it is given short shrift.

There are literally an endless number of cosmetic brands, topical skin care brands, food and baked goods, weight loss, drinks and other consumable product sellers that can be easily searched on the internet. LinkedIn is bloated with these types of brands, many making outlandish performance claims. I read some of the branding statements and marketing claims and gasp at the audacity.

Food, cosmetic, vitamin and other topical or consumable product manufacturers are very sensitive to the desire for contemporary small business innovators to appear 100% green. However, they are even more sensitive to the risk that most all-natural products pose. The FDAalways lurks and regularly rears its grizzly head to enforce rules that approach the Bible, Torah and Koran combined in length and complexity.

Bakeries and food product manufacturers are extremely sensitive to providing preservative systems that protect products from bacteria growth and extend shelf life. I love my neighbor Mary Jean's cupcakes and look forward to eating them. But i would not buy one that has been shipped, handled, stored in extreme climatic conditions, etc. Unless i knew it was made under tight industrial standards.

Many artisan cosmetic producers make their products at home. The "all natural, organic" tag they attach to their products is accurate, and they state this openly and proudly. They should be very careful. It is almost impossible to get product liability insurance for these products without proper production controls. Bacteria growth will occur unless a preservative is added and virtually all such systems that efficiently protect users include chemicals.

another issue with all truly "all natural" products is the problem of obtaining nature identical ingredients. Natural ingredients are flora or fauna that are grown and harvested. Every major producer of these products faces the issue of product quality control and stability from season to season and year to year. Essences that are essential for the production of perfumes can be of differing color and strength owing to different climate, moisture and exposure cycles. Mother nature really does control natural life. Taste, smell, color, product performance and quality can be seriously affected by biological changes that regularly happen each growing season. Sophisticated manufacturers have developed technology to minimize this risk. I have rarely seen an artisan producer that knows the problem exists, much less how to cope with it.

This is not a screed against small artesian craft brand marketers. It is just a nod to difficulties that are real and should be addressed. The ability to germinate new consumer product brands is an essential part of the American character. Some of these innovations grow and become the next great new thing. Just protect yourself at every stage of the product development, sales, marketing and branding cycle.

by: Geoff Ficke

Geoff Ficke has been a serial entrepreneur for almost 50 years. As a small boy, earning his spending money doing odd jobs in the neighborhood, he learned the value of selling himself, offering service and value for money.

After putting himself through the University of Kentucky (B.A. Broadcast Journalism, 1969) and serving in the United States Marine Corp, Mr. Ficke commenced a career in the cosmetic industry. After rising to National Sales Manager for Vidal Sassoon Hair Care at age 28, he then launched a number of ventures, including Rubigo Cosmetics, Parfums Pierre Wulff Paris, Le Bain Couture and Fashion Fragrance.

Geoff Ficke and his consulting firm, Duquesa Marketing, Inc. ( http://www.duquesamarketing.com ) has assisted businesses large and small, domestic and international, entrepreneurs, inventors and students in new product development, capital formation, licensing, marketing, sales and business plans and successful implementation of his customized strategies. He is a Senior Fellow at the Page Center for Entrepreneurial Studies, Business School, Miami University, Oxford, Ohio.

Four PR Tips For Marketing Your Product Or Service on TV & Radio Without Buying Advertising Time

You have a great product, service or book, and you know it. But just like the "better mousetrap," it doesn't mean a thing unless your market knows it, too. Interviews on TV and radio talk shows are great avenues for promoting your product to the masses, and are generally far more dynamic than basic print advertising.

You may believe the only way to get great TV and radio exposure is to buy advertising time, but there is an even better and more cost-effective way - harnessing the marketing power of PR.

Regardless of the product or message you'd like to promote, a targeted TV or radio talk show offers a great forum to get your word out. Hosts are always looking for guests that will help them entertain and inform their audiences. With the correct PR strategy you can land these terrific guest spots - pure marketing gold!

Why are these spots gold? You see, when you or your spokesperson is on the air, you're a featured guest on a show whose host has an established audience that trusts his message. Your appearance on the show as a guest confers an implicit endorsement, enhancing your credibility with the host's audience; they're hearing about you and your product or service from their trusted friend.

The best part? An interview as a guest on a TV or talk radio show is free! Even if you decide to employ the services of a public relations firm to arrange these interview spots, such a campaign usually costs about one-tenth of an advertising campaign.

My PR firm was once approached by the CEO of a life insurance agency, and we ended up representing his agency for years. They initially wanted us to arrange local and national radio and TV appearances for the CEO, who was also their spokesman. Now, I don't think it will offend anyone if I state here that as an interview subject, insurance is perceived by consumers as dull, dull, dull. An angle was needed that would not only interest audiences, but resonate with them as an issue of great importance.

We created a very effective headline for our pitch: "Can You Afford to Survive Without Your Spouse?" The interview focus was about the need for spouses and children to be protected financially after the death of the family breadwinner. In effect, it became a human interest story instead of a boring interview with an insurance salesman.

Our client did a large number of both radio and TV guest appearances, but it was clear after a while that the CEO was a terrific spokesman, particularly on the visual medium of television. So the focus for the remainder of the 3-year-long campaign was on TV talk shows. The CEO appeared on numerous national TV news shows, such as CNBC, speaking to the vital issue of financial security for women and families. The result? The highest number of new leads the company had ever experienced, for any type of promotion.

If you think PR can help market your product or service, here are four specific PR tricks you can use to effectively pitch TV and radio producers and hosts:

1. Stay current. Follow the news, know what the hot trends are, and what people are talking about. What is the current "buzz?" Talk radio and TV are all about current events, so make it your business to be "in the know."

2. Tie In to the News. As you follow the hottest stories in the news, think of ways you can relate stories to your product or service. Look for controversy or big names...these are always tantalizing topics for talk show hosts and their listeners.

3. Pitch Your Topic. Keep in mind that TV and radio hosts are interested in what you can do for their audience, not what they can do to help you promote your product. They want an interview, not an infomercial, so when pitching to hosts and producers emphasize the issue or problem for which your product or service is the solution.

4. Follow the Right Press Release Formula. Your press release is critical - it's the key to the media's door! Make sure your headline is enticing and attention-grabbing, and that the text elaborates on the subject matter and what the interview would be about. Also include a short but impressive bio or company profile. As well as a couple of well-chosen juicy or provocative quotes.

And if you have decided to tackle arranging your own interviews the above can be summed up to a couple of key PR rules to keep in mind when approaching media hosts or producers. First, never pitch yourself - pitch the issue on which you are an expert (and you ARE an expert - have you read my book, "Celebritize Yourself"?). Second, never pitch your product - talk instead about the problem your product addresses and how your product ties in as a solution. Good luck!

For 20 years Marsha Friedman has been a leading authority on public relations as CEO of EMSI, a national public relations firm. Her firm represents corporations and experts in a wide array of fields such as business, health, food, lifestyle, politics, finance, law, sports and entertainment. Some of the more prominent names on her client roster are Teamster's President Jimmy Hoffa Jr., Sergeant's Pet Care Products, Former National Security Advisor Robert McFarlane and the famous Motown Group, the Temptations. She consults individuals and businesses on a daily basis and is frequently asked to speak at conferences about how to harness the power of publicity. Go to http://www.emsincorporated.com to claim your free "Power of Public Relations" video today! Or call 727-443-7115, ext. 202, or email her at info@marshafriedman.com.

Product Review - UK Paye And Payroll Software

DIY Accounting Payroll Software is written on a series of excel spreadsheet templates.

Small business payroll solution available in the UK for up to 5 employees, up to 10 employees and a third version of the payroll for up to 20 employees.

The basic details of each employee are entered on an Employee Details worksheet including personal details such as name, address, starting date, income tax code and national insurance details. Details which every employer needs to maintain anyway to satisfy the requirements of operating a paye scheme. The payroll software then uses the pay data entered such as income tax code and dates and national insurance dates to calculate the income tax deductions and national insurance contributions of both employee and employer. Once the employee details have been entered running a paye system couldn't be easier.

The payroll software pre-enters each employee's name on the payroll each week or month and simply entering the employee gross pay triggers the payroll to automatically calculate income tax and national insurance contributions including the employers' national insurance contribution using the standard income tax and national insurance tables which are embedded within the files supplied with the payroll software system.

Having calculated the net pay the payroll software then goes that extra step and automatically completes the time consuming paye deduction sheets, all arranged in the same appearance as the official inland revenue deductions sheet for recording income tax and national insurance deductions. In addition also included in the employee paye section are copies of the employee P60 certificate, P45 if required and the P14 which is a summary of the pay, income tax and national insurance contributions made by each employee. This feature of the payroll software is extremely valuable in saving employers using the small business payroll solution a great deal of time in paye administration.

Many payroll software systems require the purchase of payslip stationery. The DIY Accounting payroll software is different in this respect. First of all the payslips are all generated automatically from the information in the payroll file which shows the weekly or monthly gross and net pay, income tax and national insurance and the gross numbers to date. The Payslips all preset on payslip templates can be printed at any time on normal A4 copy paper being another money saving feature of the paye solution.

The income tax and national insurance deducted throughout the financial year are automatically collected by the payroll software on an excel copy of the Employers Annual return, the P35. An excel copy in the same format as the inland revenue form which can be simply printed out enabling the payroll figures to then be entered and filed online for employers to both avoid late penalties and receive the online tax free bonus available.

The DIY Accounting Payroll Software is easily integrated into the DIY Accounting Software solutions for both self employed and limited companies when the payroll software files are saved in the same folder as the accounting files providing a complete accountancy solution for clients.

Payroll Software Weaknesses

The DIY Accounting payroll system does not deal with income tax K codes. The income tax code K is used infrequently being applicable to those employees whose taxable expenses exceed the income tax allowance and is often never seen by most employers.

Employer statutory sick pay and maternity leave require to be entered manually. Considered to be a minor weakness since these figures when applicable can be easily looked up on the employers CD-Rom as required.

The quoted package sizes of 5 employees, 10 employees and 20 employees include all employees during the year including new starters and leavers and it is important then to obtain a package likely to be in excess of the total number of expected employees to avoid changing the payroll solution during the financial year.

Pricing

At £14.99 the small business payroll software for up to 5 employees including starters and leavers is almost a giveaway price with many competitive products priced much higher. The 10 employee payroll version is £19.99 and the 20 employee payroll version just £24.99. Considering the paye administrative work the payroll systems save. The packages are not upgraded each year with employers purchasing the new package each financial year.

Conclusion

Exceptionally good value, the payroll system is very quick and easy to use and produces exactly what every employer requires from a small business payroll solution. Accurate income tax and national insurance contribution calculations, significant reduction in paye administration time, regular payslips for each employee, compliance with paye administrative requirements and the satisfaction and valuable tax free bonus prize of producing the payroll on time.

Terry Cartwright is a qualified accountant in the UK designs Payroll Software solutions for small to medium sized business that automates the calculation of Income Tax and National Insurance contributions producing a complete Payroll solution for 1 to 20 employees.

Insurance Marketing Territory - Great Product Marketing States

Check and see if any of the states in your insurance marketing territory are listed here. These are great insurance product marketing states to enhance your sales. State rankings are provided for the 11th through 21st state along with a recap listing of the first ten.

TENNESSEE, Rating = 11 Tennessee is not considered a rich state by any means. However, it holds a solid reputation as a solid insurance marketing territory. Here long time recruiting operations are as totally committed to mailing Tennessee brokers, as are music collectors totally committed to collecting Elvis memorabilia. What really helps split up the competition is that the state is divided up into three major metropolitan areas, Nashville and Memphis, followed by Knoxville. We mentioned before, how this factor helps to significantly lower total recruiting competition. In addition, the wide diversity for annuity, life, financial, health, group, and senior products offers all product marketing firms an opportunity.

OREGON, Rating = 12 This an all round very good state to market your insurance products. Examining almost every statistical figure points out Oregon is within close range of the national "average" state. This includes the income level, the percentage of senior residents, the number of agents per thousand residents, and the amount of insurance marketing competition. The agent retention rate, and average number of years of agent experience correlate correctly. The response received back from insurance marketing firms contacting the quality agents has been favorable, and the response rate from agents has been slightly above normal. It is these two last, yet very critical recruiting factors that place Oregon significantly ahead of the middle of the pack.

ALABAMA, Rating = 13 Sweet home Alabama, where the skies are so blue, and the recruiters are too few. Alabama has an exceptionally good mix of agents, meaning independent agents, career agents that broker business, and multi-line small agencies that brokers with insurance marketers their life and health business. There is far less recruiting demand than expected. The lower competition pressure mixed with the pleasant response from those who using refined lists to recruit in Alabama, places a well deserved, lucky 13, rating.

KENTUCKY, Rating = 14 You way find the blue hills of Kentucky beautiful, along with the green pockets of Kentucky agent product recruiters. Kentucky has a fairly similar mixture of agents to Alabama. Although here in Kentucky, there exists a heavier concentration of career life agencies. The competition search for recruiting experienced agents to sell products, is just above normal, yet the response feedback from insurance marketing organizations ranks as being very good.

ARKANSAS, Rating = 15 Arkansas is ranked the ninth highest state for its rising senior population, and reasonable retirement housing and living costs. This makes it a must state for insurance marketing recruiters of senior market agents to sell ltc, long term care, medicare supplements part B and D, final expense, and some annuity products. However, here is a drawback for some insurance recruiters. This is a state where it is much harder to sell high premium, sophisticated annuity and life retirement/invest plans. Arkansas lends itself to a rural and small business atmosphere, starting just outside Little Rock city limits and extending throughout the entire state. As it is a low-income state, major life insurance career agencies have focused elsewhere. This leaves many semi-captive agents, independent agents, brokers, and PPGA producers. Moreover, it is a very good state also for marketing medical plans, small group, term, universal life, and family life products.

KANSAS If you have a limited recruiting budget, stay out of Kansas City, Kansas. This area has too many career life agencies. and lower agent retention. Unknown Fact revealed: a state or area of a state with a high concentration of career life agents averages a 5% to 20% lower retention of maintaining The remainder of the state, has agents of the caliber that are much more likely to show an interest in your insurance product or give brokers an opportunity. Kansas holds the 21st position for median family income, plus a senior population equal to the state average. For you, a recruiter, it means you have a vast variety of products for brokers to sell. Products ranging from variable indexed annuities, to long-term care, to universal life, all have their marketplace in Kansas. To these advantages, add good feedback response from other marketers and a lower that capacity demand for recruitment advertisements.

MISSISSIPPI, Rating = 17 For the current time we are keeping Mississippi in this ranking position. .Earning the distinction of currently being the state with the lowest median family income, does not help .This means it is a poor state to market annuity products, while lower cost health and life products thrive. Overdue modernization and a favorable business tax environment will eventually drive up the housing market and associated contracting and building occupation incomes. Local and regional recruiters know that outside areas are not feeling the effects; in fact, some are benefiting from higher quality that normal. Staying out of main town New Orleans is smart, while staying out of Mississippi is not.

OKLAHOMA, Rating = 18 Oklahoma is more than just an "OK" state. It may surprise you that most of the lower income states, have a higher than average rating. Why? Over the last 10 years, larger career life companies, especially those based in the high-income Northeastern/New England states have pulled out almost all their agencies in lower income areas. Why So? A Large career life company wants to get the agents off and running appointments with higher income products. They look for lots of possible clients that can afford high premium life and investment plans. In a low-income state, finding people with this profile is not feasible. For the number of Oklahoma agents willing to broker business, recruiters have overlooked the state far too often. Other than high premium or complex annuities, the state is wide open for business.

NEBRASKA, Rating = 19 Nebraska is not only home to the Cornhuskers. It is also the home of major health insurance companies, like Mutual of Omaha, World, Medico, and others. Although the senior population is slightly above normal, these home base insurers have quite a monopoly of senior related products. Their agent direction has widely changed however to being much less captive than before. This means the brokerage agents in Nebraska are still not very open to non-senior, blue-collar disability, and medical plans. The average family median income is above 28 states. This opens up good premium opportunities for brokers offered variable life, universal life, term, small group, worksite benefits, and annuity plans to sell their clients.

UTAH, Rating = 20 No every man does not have 6 wives, and 20 children. Therefore, it is not selling family life, and family medical policies that place Utah so high up in the rankings. Instead, it is the wide mixture of clients, especially outside the Salt Lake City area. The influx of agents moving from Nevada and Colorado to Utah is worth noting. The market for all types of life, annuity, and health products is very strong. There are a sufficient number of brokerage agents to make your mailing worthwhile.

In case you are wondering here is a recap of the first 10 rated states Florida, Texas, California, Ohio, Georgia, Wisconsin, Minnesota, North Carolina, Michigan, and Missouri with the #10 state ranking.

Well published author, Don Yerke likes to concentrate on what you don't know or what no one else dares to print. Tell it like it is.

Watch for his new paperback book debuting on Amazon early this summer. It is loaded with great insurance marketing and recruiting information.

Come and get your FREE "Think and Grow Rich" Ebook by Napoleon Hill instantly. The website address is [http://www.agentsinsurancemarketing.com]

Insurance Market Analysis - States Ranked 21 Thru 31 For Insurance Product Marketing

In this insurance market analysis are 10 states ranked as not earth shattering for recruiting agents. However, these states should be repeat winners every time you use a top-notch insurance mail list to contact the key insurance product marketing brokers. Merging insurance marketing skills, with a quality mailing list, puts these states within the budget of many regional and national brokerage firms, along with the big wholesalers fmo's, and insurance companies. Read each different  insurance marketing analysis.

In these 10 states, trim the unnecessary fat away and you have an excellent brokerage mailing list.   This means no mass mailing, email blasting, or faxing. Mass marketing to insurance agents is not only very foolish, but also in the end costly. How many agents respond at the lowest cost is very insignificant in an insurance recruiting campaign. What is important is the quality of the agent that responds and in turn if this agent actually becomes a proven producer.  Do not measure by "leaders" but by production from contracted insurance brokers.

NEW MEXICO, Rating = 21   In the last 5 years this state has really turned directions for recruiting. Before this, the state had far too many insurance agents, with minor experience. The turnover rate was ridiculous.   Everyone had a rookie cousin in the business, and another licensed cousin who was rapidly falling by the wayside. This has changed. The big Northeast/New England career recruiting shops wised up finally, and closed down shop. As a result, there are more semi-independent minded agents climbing up the success ladder.  The number willing to give brokerage products a good look is rising. As additional competing recruiters are catching on to our advice, get your piece of the action before it gets too over hit. The downside is the highly migrant average household income in this state is $20,000 lower than that of many states where the big life career companies are headquartered. All factors considered the future is now two thumbs up.

WEST VIRGINIA, Rating = 22  By the little recruiting attention this state receives, you would think it is hidden on the map. West Virginia averages only 1/4 to 1/3 the population of the states of Virginia, Maryland, Massachusetts, and New Jersey, and the agent receives at least 90% less calls, emails, or mailings. The problem to annuity recruiters is that West Virginia ranks dead last of all states when the median household income is examined. The decent senior population makes it a respectable area for selling long-term care and senior life products.

NORTH DAKOTA, Rating = 23   North Dakota, for being such a cold state, has one of the highest percentage of senior age citizens in the entire nation. This small agent population state, makes finding senior market agents a great find. Combine that with the warm reception of many fraternal life insurance agents. Here is the opening for marketing to agents you health insurance plans. However, when looking for annuity sales reps, the median family income needs to be acknowledged. In this, sales area, because of sub-par overall income status, North Dakota would rate lower for annuity marketing organizations and wholesalers.

SOUTH CAROLINA, Rating = 24   Agent reception in South Carolina, sure lags behind its sister state North Carolina. Two factors lower this state's recruiting rank. First, it is a state of a lower family income level. Second, it is also a state with higher agent turnover. If you target the right agents with the right products at the right time, you will find the South Carolina is smack dab in the middle. Part of this is the fact that South Carolina is not given enough recruiting attention.

MAINE, Rating = 25   "Little" is the word keeping this state from being ranked much higher. There is an insufficient number of agents to give a seminar, and almost too little to mail. Maine agents, unlike those in most northeastern states, are receptive to both local, regional marketing firms, along with far away national marketers and insurance companies. Like North Dakota, the overall income status is low, but the number of seniors willing to brave the winter chill is high. A state way overlooked. Especially it is true when recruiting firms are looking for agents to sell ltc, life, and annuities to the senior and near senior ma

LOUISIANA, Rating = 26   The hurricane disaster sent this state hastily rolling 6 spots downward on our recommendation list. Since then, it has climbed back up two positions. Many agents have made a transition to drier states with a better economy. It was already one of the poorer states, and right now, many low-income people stayed. In New Orleans, many with money or job transfer opportunities moved out. The surviving agents, with over 5 years experience, still have a stable client base, or work parts of the state not affected by the disaster. The good news is that your competition has pretty much given up on the state. Some adaptive, insurance brokerage operations tell us that their current Louisiana mailings are getting the best results ever. The main reason being is that the less knowledgeable recruiting competition has retreated.

PENNSYLVANIA, Rating = 27  We feel the state of Pennsylvania keeps the worst insurance records of licensed agents. Are there really 100,000 or so just life and health agents alone? Absolutely Not. Moreover, how about the addresses of the agents? Using addresses the insurance department provides would produce far in excess of 30% of your mail being undeliverable. This might sound shocking. However, numerous other state insurance department agent address records hover between 20 and 35% not deliverable. Do not trust anybody that says they have a large accurate list of Pennsylvania agents. Hint: In Pennsylvania, obtain either a small-refined list or none at all. Definitely, this is not the state to engage in mass mail, mass email, or use telephone telemarketing. Overall, the agents that can be determined to being brokers (placing business with an outside company) are premier producers. Only the best will do, especially for target marketing to agents with a knack for annuity and financial related products.

MONTANA, Rating = 28  The agent base in Montana is small, but the geographic area they must cover is immense. The amount of small independent multi-line, life-health-auto=home agents is beyond normal proportions. This however is a plus factor. The majority of these small operations are independent, representing multiple carriers. They place their life and health products with different carrier insurers that receive their car, home, and business insurance premiums. 

IOWA, Rating = 29   Iowa is the home to many life and health insurance companies, and most insurers like to have a heavy presence in their home states. Therefore, while the insurance company direct recruiting pressure is high, the pressure placed by brokerage and marketing firms is average. It is a hard city for recruiting wanting to give a seminar. Only Des Moines has enough quality agents to invite. This means areas like Cedar Rapids, Davenport, and Sioux City are commonly overlooked. The demand for agent recruiting is overall is slightly below what it should be.

IDAHO, Rating = 30   There are a lot of potato farmers spread out over a vast lot of land for the professional agents to follow up on. Unfortunately, the number of independent agents and agencies in this state falls below what it should be. Although there are quite a few agents that will occasionally place insurance, life or health cases outside their main company. So many should be called semi captive and semi-receptive, instead of independently receptive. The amount of business each broker produces is limited, making it harder on the insurance marketing firm to get a good return on investment.

ILLINOIS, Rating = 31   Illinois is a very large population state, with a 60/40 split. This means 60% of the agents are crammed in the metropolitan Chicago area alone. The Chicago are shares many of the New England State characteristics. The similar features are the higher than normal agent turnover rate, the large presence of big career life training companies, and the 9th highest median family income in the United States. The other 40% of the state follows its Midwestern state counterparts. It has more independent brokers, less recruiting competition, and producers receptive to annuity, life, and health offers. Stay out of Chicago, and you find a good middle range state for marketing your products to agents.

Right here, in case you are printing out the ranks, are the top 20 states in order. They are Florida, California, Texas, Ohio, Georgia, Wisconsin, Minnesota, North Carolina, Michigan, Missouri, Tennessee, Oregon, Alabama, Kentucky, Arkansas, Mississippi, Oklahoma, Nebraska, and Utah holding the 20th position.

Well published author, Don Yerke likes to concentrate on what you don't know or what no one else dares to print. Tell it like it is.

Watch for his new paperback book debuting on Amazon early this summer. It is loaded with great insurance marketing and recruiting information.

Come and get your FREE "Think and Grow Rich" Ebook by Napoleon Hill instantly. The website address is [http://www.agentsinsurancemarketing.com]

Screening of New Product Ideas

New products can come from many sources and through many kinds of individual with widely differing backgrounds. We can, however, think in terms of three main categories, as follows:

1. Products developed to fill a known 'gap' in the range of existing products available to meet a known need. An example would be the considerable development currently going on to produce an acceptable battery-operated car, to overcome the pollution problem created by the internal combustion engine and to achieve a more economical use of fossil fuels.

2. Products arising out of scientific research probably devoted originally to quite different ends, or from 'pure' research in pursuit of knowledge with no commercial end at all in view. One famous example is penicillin, whose effect was first noticed by accident during a study of many different moulds. Another is teflon-coating of cooking utensils, a 'spin-off' from research into heat-resistant materials for the U.S. space programme.

3. Creative ideas with no very logical origin. These range from a technical break-through departing from the orthodox approach (the jet engine, hovercraft) to more trivial and less technical but nonetheless useful ideas, such as oven-ready french fries, ready-planted flowering shrubs for 'instant gardening', and self-assembly 'knock down' furniture. Generally speaking, of course, it is products that are developments of existing ones which arise from a study of the marketplace and new technology which gives rise to products with high novelty. Viewdata ('Teletext') information displayed on home TV screens is still to some degree a 'product in search of a need' and there are many 'high-tech' products in a similar situation.

Finding Gaps in the Market

The aim here is to identify a need in the market and then find the product to fill it. There are three main approaches, as follows:

1. Examine other markets. Keep a close eye on international markets. If a product is selling well in the US it has a fair chance of also succeeding in other countries. Many of the products now established in the market were first developed in the United States, including ball-point pens, aerosol sprays, credit cards and 'finger-lickin' good' Kentucky Fried Chicken.

2. Segment the market. Since people do not have identical preferences, it is unlikely that one product will completely satisfy everyone. A new product that gains a large market share may therefore suggest the possibility of a number of market segments. Thus instant coffee was originally marketed with a single flavour, which was reasonably acceptable to most people; now we see the development of special blends - mild, bitter and so on - to suit smaller groups of people prepared to pay a premium price to obtain something that suits their personal taste more closely than the 'standard' flavour.

3. Gap analysis. This is a rather complex technique of examining products on the basis of how people view them - what people 'think' they are. For example, if people viewed all existing chocolate bars as crunchy, but said they preferred a soft bar, then a gap might exist for a new chocolate bar brand promoted as 'the soft one'.

Scientific Development

Achieving new products this way is a question either of a company maintaining its own research and development team or of it keeping closely in touch with development teams in universities, research establishments and worldwide publications carrying reports of technological development. The former method is much the more expensive, but can be more directly applied to the areas in which the company is interested.

Producing Creative Ideas

The previous two categories both rely on some kind of systematic search. But the creative approach is almost by definition not systematic. Here we are looking for a new departure rather than a logical development from what already exists. The main technique used to achieve this is known as 'brainstorming'. The essence of this approach is to assemble a group of people, preferably with widely different attitudes and backgrounds, and then encourage them to 'spark off' and produce a stream of ideas. In order to encourage the maximum number of new thoughts the following 'rules of the game' are applied:

1. All ideas are written down;

2. Negatives are ruled out; even obviously idiotic ideas must be allowed to stand, because they may suggest others;

3. No critical analysis is applied until after the brainstorming session.

Once the ideas are all recorded, they can be sorted critically and further consideration given to those that look promising.

The Business Analysis of New Product Ideas

Far too many ideas have money spent on their development simply because they do seem to be good ideas, that is to say they appeal to someone, who then becomes committed to them. Two main reasons for a vast proportion of new product failures can be pointed out:

1. Reluctance to terminate a project once a relatively early stage has been passed, and

2. Corporate arrogance - either simply about the product's quality or about the company's ability to use its 'marketing power' to sell an inferior product.'

The best way to avoid this temptation is to ask at a very early stage what is the likelihood of adequate profits accumulating if the product is successfully developed and launched? Crucial questions will include the following:

1. What is the likely demand and at what price?

2. Can the product be manufactured and distributed at a cost that will fit the price/demand situation and also yield a suitable profit?

3. What will be the yield of capital and manpower invested in this way as against the comparable return from alternative ways of employing the resources? (In economic language, what is the opportunity cost?)

Source: http://en.articlesgratuits.com/screening-of-new-product-ideas-id1565.php

Martin Hahn PhD has received his education and degrees in Europe in organizational/industrial sociology. He grew up in South-East Asia and moved to Europe to get his tertiary education and gain experience in the fields of scientific research, radio journalism, and management consulting. If you would like to know more about Martin Hahn PhD and purchase his e-book, please visit: http://www.martinimhahn.com.

Product Review - UK Paye And Payroll Software

DIY Accounting Payroll Software is written on a series of excel spreadsheet templates.

Small business payroll solution available in the UK for up to 5 employees, up to 10 employees and a third version of the payroll for up to 20 employees.

The basic details of each employee are entered on an Employee Details worksheet including personal details such as name, address, starting date, income tax code and national insurance details. Details which every employer needs to maintain anyway to satisfy the requirements of operating a paye scheme. The payroll software then uses the pay data entered such as income tax code and dates and national insurance dates to calculate the income tax deductions and national insurance contributions of both employee and employer. Once the employee details have been entered running a paye system couldn't be easier.

The payroll software pre-enters each employee's name on the payroll each week or month and simply entering the employee gross pay triggers the payroll to automatically calculate income tax and national insurance contributions including the employers' national insurance contribution using the standard income tax and national insurance tables which are embedded within the files supplied with the payroll software system.

Having calculated the net pay the payroll software then goes that extra step and automatically completes the time consuming paye deduction sheets, all arranged in the same appearance as the official inland revenue deductions sheet for recording income tax and national insurance deductions. In addition also included in the employee paye section are copies of the employee P60 certificate, P45 if required and the P14 which is a summary of the pay, income tax and national insurance contributions made by each employee. This feature of the payroll software is extremely valuable in saving employers using the small business payroll solution a great deal of time in paye administration.

Many payroll software systems require the purchase of payslip stationery. The DIY Accounting payroll software is different in this respect. First of all the payslips are all generated automatically from the information in the payroll file which shows the weekly or monthly gross and net pay, income tax and national insurance and the gross numbers to date. The Payslips all preset on payslip templates can be printed at any time on normal A4 copy paper being another money saving feature of the paye solution.

The income tax and national insurance deducted throughout the financial year are automatically collected by the payroll software on an excel copy of the Employers Annual return, the P35. An excel copy in the same format as the inland revenue form which can be simply printed out enabling the payroll figures to then be entered and filed online for employers to both avoid late penalties and receive the online tax free bonus available.

The DIY Accounting Payroll Software is easily integrated into the DIY Accounting Software solutions for both self employed and limited companies when the payroll software files are saved in the same folder as the accounting files providing a complete accountancy solution for clients.

Payroll Software Weaknesses

The DIY Accounting payroll system does not deal with income tax K codes. The income tax code K is used infrequently being applicable to those employees whose taxable expenses exceed the income tax allowance and is often never seen by most employers.

Employer statutory sick pay and maternity leave require to be entered manually. Considered to be a minor weakness since these figures when applicable can be easily looked up on the employers CD-Rom as required.

The quoted package sizes of 5 employees, 10 employees and 20 employees include all employees during the year including new starters and leavers and it is important then to obtain a package likely to be in excess of the total number of expected employees to avoid changing the payroll solution during the financial year.

Pricing

At £14.99 the small business payroll software for up to 5 employees including starters and leavers is almost a giveaway price with many competitive products priced much higher. The 10 employee payroll version is £19.99 and the 20 employee payroll version just £24.99. Considering the paye administrative work the payroll systems save. The packages are not upgraded each year with employers purchasing the new package each financial year.

Conclusion

Exceptionally good value, the payroll system is very quick and easy to use and produces exactly what every employer requires from a small business payroll solution. Accurate income tax and national insurance contribution calculations, significant reduction in paye administration time, regular payslips for each employee, compliance with paye administrative requirements and the satisfaction and valuable tax free bonus prize of producing the payroll on time.

Terry Cartwright is a qualified accountant in the UK designs Payroll Software solutions for small to medium sized business that automates the calculation of Income Tax and National Insurance contributions producing a complete Payroll solution for 1 to 20 employees.

Gross Domestic Product a Nation's Health Gauge

The Gross Domestic Product (GDP) of a nation is a gauge used to judge their economic health and really their world status. The United States has the highest single country GDP, but in recent years the GDP rankings have had some significant changes. The European Union's collective GDP has surpassed the United States' GDP as the world largest. The European Union is not a direct threat to the United States, but they are an economic threat. Their threat comes from competition for resources. Their needs counter our productivity and raise prices. They are not our enemy, but they do cause us many problems collectively and will do so more frequently in the future.

China is steadily climbing the GDP ladder. According to the CIA World Factbook they were number three on the list after the European Union and the United States. The Chinese of course have their sights on number one and it is possible. They too pose a threat to the United States in many ways, but for the near future their threat is resource based too. They want, need, the same resources our economy needs. The demand raises the prices hurting the United States, especially in our fragile economic state.

India is another fast riser. They have surpassed Germany and are close behind Japan. They will overtake Japan in the next few years. Japan's aging population and economic woes will take a gradual toll on their GDP. India will affect the resource supply and demand chain as well. India is just another potential bad news story for the United States.

Another nation that will be a competitor in the GDP race is Russia. Russia will continue to climb the GDP ladder because of the increase in demand for natural resources. They have the potential to benefit from our very woes. Given their current leadership's vision of a renewed Russian empire this is a very worrisome problem for the United States and the world.

Other countries are worth watching as well; especially if the United States does not become energy independent of the Middle East. The increase in GDP of nations like China and India is not an entirely bad thing. They can be great consumers as well as producers and if the United States can find a world niche, say alternative energy, we could be suppliers to those nations.

GDP is not the greatest indicator of world economies, but it is a gauge we need to monitor. Raising awareness of the world's economies and their correlations to our own economy will make Americans more mindful of the world we live in. We need to become a nation more aware of international dynamics. We need to create an economy that can survive in a world that is home to several giants, because we are no longer the only giant.

The website www.bulzomi.com has a free tool to look up any country's GDP.

Geno A Bulzomi
http://www.bulzomi.com
Articles on International Affairs, Leadership and Business.