Introduction to Marketing (((The National Factory)))

Introduction

   This project speaks about a national factory in Lebanon. It pleased me

greatly to get an interview with the owner of The National factory for Blocks
and Cements. The observer begins to know how the competition happens
among men who work in a similar domain. Beside this, a person should
follow several functional means in order to keep on his factory in its high
level. The progressive movement of any factors is not only the responsibility
of the managers but it is also the responsibility of the policy and the regime
of the government. So, to have a successful company, establishment, or a
factory we should depend on good managers and select the good economical
and sociological state surrounding any factory. These two factors play a
good role in the success of any company.

The National Factory for Blocks and Cements started in the year 1969 in
Lebanon. This factory is located in Zouk Mkail-Green Zone in a place away
from the crowded city and civilians. The owners and the general managers
of this factory are two partners Mr. Samir Boustani and Mr. Ibrahim Malah.
Thirty-nine employees and workers work in this factory, among them there
are twenty two foreign workers. Most of these are workers are either from
Egypt or Syria. This factory produces cements and marbles for the Lebanese
market. According to the statistic, the factory can be classified as both a
manufacturers of consumer and industrial goods.

Besides, The factory contains ten large machines and each has a different
job. I have told that these machines are the best in Lebanon. They get the
row material that they need for their products from Italy. Mr. Samir said that
others factories get the row material from different countries with lower
prices, but of coarse the quality differ. For this reason, customers prefer the
National Factory from other factories. He believes that quality is more
important than the price.
 Their competitors are many. In Zouk only they compete with two similar
factories that works in the same field. The first belongs to Mr. Karam Azar
and the other to Mr. Nabil razak. Mr. Samir told me that with these two
factories they have direct comparison, but customers can easily observes the
quality standard in their factory. Out side zouk region there are a many
factories that work in the field of marble and cements. The National Factory
have a high quality standard, which is not available in other factories. For
this they prefer not to compare themselves with others factories. What they
care for is to satisfy their customers needs and make them believe in their
products.

The buyer's behavior towards their products is the most important thing for
the factory. But in the present situation in Lebanon no one is satisfied neither
the buyer nor the manufacturer, nor the seller. If we take the economical
situation nowadays it is failing but when a customer comes to buy from the
National Factory he is sure of his buying decision. The government most
urges the Lebanese to buy national product rather than foreign one.

Mr. Samir said, "The most important influence in marketing theory is the
continuous and rapid change in consumer interests and desires. Consumers
today are more sophisticated than those of past generations. They attend
school for much longer; they are exposed to newspapers, magazines, movies,
and radio… So, demands are more exacting, and their taste is more volatile.
Because of this we always try to segment our products in order to fit all
customers tastes".

Besides, advertisement is very important for the National Factory. They

put a lot of their investments in advertising in order to build the image for
their products. They make advertisements because if they stop the
advertisements they will loose a lot. T.V advertisement is impossible for the
factory to use because it is very expensive and they can not afford such
expenses. So, they depend on other kinds of advertisement like magazines
"Al-Geish", and newspapers. In addition, Mr. Samir said " We always try to
lower the cost production in order to offer better prices for our customer. But
of course this should not affect the quality. Because of this, we use the
recent technology in order to lower cost production without hurting the
quality. We also offer facilitation in payment. In the past we used to offer
facilitation in payment but if the customer could not pay we used to bail
him. Today everything is different, the banks offering the customer a loan,
so the banks are now competing in offering better plans for financing ". The
facilitation in payment increases the number of customers. Because, few
have cash money in this bad economic situation.

The factory uses a fixed pricing policy. They believe that this strategy will
make the customer more confident and satisfied of his buying decision.
Sometimes they are obliged to increase their prices because of the increase
in the prices of the raw material. They have a good relation with an Italian
company that supply them with the material they need.

The national Factory is known to have the best services. Time is sacred for
them. "We always deliver the products on time and sometimes before. If we
don not have a good services we do not sell any of our products. However
the service after sale is more important than selling the products, you can
sell a product in ten minutes but you have to continue in your service
towards this product." said Mr. Samir. He believes that a service is the
provision of his company.

Internet and telephone ordering are not included in the policy of this
factory. They lack this easily means of communication. Mr. Samir said "the
world distribution in Lebanon is too wide, we are a very small to talk about
such distribution. We have one sale points which is our factory, so we have
no Internet and telephone ordering". They have been in business for thirty
years, so they depend on their popular name in the Lebanese market.
 If the product concept passes the business test, it moves into the product
development stage. Here R&D develop the product concept into a physical
product. The R&D department develops and tests one or more physical
versions of the product concept. R&D hopes to design a prototype that will
satisfy and excite consumers and that can be produced quickly and at
Budgeted costs. Developing a successful prototype can take days, weeks
months, or even years. Often, products undergo rigorous functional tests to
make sure that they perform safely and effectively.

The success of specialized marketing developments had caused many

older organizations to revise their operating methods. Under this plan, the
retailer is given the right to sell, within a certain area, without competition
from another retailer dealing in the same product.

Many consumers now find it more desirable to rent products than to

purchase them outright. For example, a homeowner may find it preferable to
rent an electric floor polisher when needed, rather than purchase the
appliance at the list price, use it only frequently, and then have to provide
storage space within the home. The renting of equipment also figures in
large industry. Corporation are finding it to their economic advantage to rent
computers and office industrial machinery, thereby assuring themselves of
product servicing and repair and allowing changeover, without great

expenses, to newer equipment models as they become available. The use of

credit has had a great impact on marketing. Customers with credit cards can
make purchases without the normal immediate presentation of cash, and
sales are thus stimulated. Stores often further stimulate sales by use of
premium promotions whereby customers making purchases receive free
goods or the opportunity to buy special merchandise at very low prices.
 Businesses must strive daily to outdo competitors. The methods
available to businesses for distinguishing their commodity from others in the
market are subject only to their ingenuity. Such methods may include
product movement, a unique promotional campaign, a new twist in
servicing, a change in distribution channels, or an enticing price adjustment.

The National Factory introduces many new products in the Lebanese

market. According to the factory the first and the most important thing in the
new product is to assure its safety. They make different kinds of tests to
assure the safety of the products. The second important thing in marketing
development for the factory is to test the effectiveness of the new products.

This can be done without serious tests. It is the responsibility of the research
and development department to tests the safety and effectiveness of the new
products. In addition, the managers of the factory can develop new markets
or its current products. Managers could review new geographical markets.
They expand their marketing efforts and sales to different countries in the
Middle East, Asia, and Europe… They should target newly opened markets
in order to gain more profits.

In my opinion, I like to say that this factory lacks the means of success
for it does not own the easy means of communication which is the internet
and telephone ordering. The other point of laciness is not giving enough
promotions to attract new customers. Had Mr. Boustani invested more
money in promotions and advertisements, he would have got more profit.
Lastly, it is the responsibility of the government to urge the people to buy
national products than foreign one. This policy of the government must be
taken into consideration for it might help local factories and other
establishments not to get bankruptcy.