Psychological Marketing How Our Senses Sell Us

When you walk into a bakery, the mere smell wafting out of the oven is often enough to incentivize clients to purchase sweets. The sights, sounds, and smells of the modern marketplace are rarely accidents. More likely, they are tools of an evolving strategy of  psychological marketing called â€Å"sensory marketing† designed to win your loyalty and, most of all, your dollars. Brief History of Sensory Marketing The area of psychological marketing known as sensory marketing is an advertising tactic intended to appeal to one or more  of the five human senses of sight, hearing, smell, taste, and touch to create an emotional association with a specific product or brand. A successful sensory branding strategy taps into certain beliefs, feelings, thoughts, and memories to create a brand image in a customers mind. For example, if the smell of pumpkin spices in October makes you think of Starbucks, its no accident. Sensory branding dates back to the 1940s when marketers began exploring the role of sight in advertising. At the time, the main forms of visual advertising were printed posters and billboards and research was focused on the effects of various colors and fonts within them. As  television  began finding its way into virtually every American home, advertisers began appealing to consumers’ sense of sound. The first TV commercial featuring a catch jingle is believed to be an advertisement for Colgate-Palmolives Ajax cleanser, aired in 1948. Noting  the growing popularity of aromatherapy and its connection to color therapy, marketers began researching the use of smell in advertising and brand promotion during the 1970s. They found that carefully selected scents could make their products more appealing to consumers. More recently, retailers have seen that infusing certain scents throughout their stores could increase sales. The popularity of multi-sensory marketing is on the rise.   How Sensory Marketing Works   As an approach that appeals to the senses instead of logic, sensory marketing can  affect people in a way that traditional mass marketing cannot. Classic mass marketing works on the belief that people—as consumers—will behave rationally when faced with purchasing decisions. Traditional marketing assumes that consumers will systematically consider concrete product factors like price, features, and utility. Sensory marketing, by contrast, seeks to utilize the consumers life experiences and feelings. These life experiences have identifiable sensory, emotional, cognitive, and behavioral aspects. Sensory marketing assumes that people, as consumers, will act according to their emotional impulses more than to their objective reasoning. In this way, an effective sensory marketing effort can result in consumers choosing to buy a certain product, rather than an equal but less expensive alternative. For the Harvard Business Review in March 2015, sensory marketing pioneer Aradhna Krishna wrote, â€Å"In the past, communications with customers were essentially monologues—companies just ‘talked at’ consumers. Then they evolved into dialogues, with customers providing feedback. Now they’re becoming multidimensional conversations, with products finding their own voices and consumers responding viscerally and subconsciously to them.† Sensory marketing attempts to ensure lasting product success by:   Identifying, measuring, and understanding consumers emotionsIdentifying and capitalizing on new marketsEnsuring first and repeated purchases (brand loyalty)   According to Iowa State University Professor Jihyun Song, consumers relate various brands to their most memorable experiences—good and bad—with their buying behaviors driven by storytelling and emotion. In this manner, sensory marketers work to create emotional ties that link the consumer to the brand. How Sincere vs. Exciting Brands Play on the Senses A products design creates its identity. A brands design can express trend-setting innovation like Apple or solidify its dependable tradition like IBM. According to marketing experts, consumers tend to subconsciously apply human-like personalities to brands, leading to intimate and (hopefully for the brands), lasting loyalties. Most brands are considered to have either sincere or exciting personalities. Sincere brands like IBM, Mercedes Benz, and New York Life tend to be perceived as conservative, established, and wholesome, while exciting brands like Apple, Abercrombie and Fitch, and Ferrari are perceived as imaginative, daring, and trend-setting. In general, consumers tend to form longer-lasting relationships with sincere brands than with exciting brands. Sight and Color in Marketing   People had been choosing their possessions based on how they looked long before the advertising industry even existed. With the eyes containing two-thirds of all the sensory cells in a sighted persons body, sight is considered the most prominent of all human senses. Sensory marketing uses sight to create the brands identity and create a memorable sight experience for consumers. This experience extends from the design of the product itself to packaging, store interiors, and printed advertising. The development of virtual reality (VR) devices is now allowing sensual marketers to create even more immersive consumer experiences. For example, Marriott Hotels new Teleporter VR glasses allow potential guests to see and experience the sights and  sounds of travel destinations before booking a stay. No aspect of product design is left to chance anymore, especially color. Research shows that up to 90% of all snap buying decisions are based on the colors of products or branding alone. Other studies have shown that brand acceptance hinges largely on the appropriateness of the colors associated with the brand—does the color fit the product? Over time, certain colors have become commonly associated with certain traits. For example, brown with ruggedness, red with excitement, and blue with sophistication and dependability. However, the goal of modern sensory marketing is to choose colors that portray the brands desired individual personality rather than sticking with such stereotypical color associations. Sound in Marketing   Along with sight, sound accounts for 99% of all brand information presented to consumers. More widely used in mass marketing since the invention of the radio and television, sound contributes to brand awareness in much the same way that humans use speech to establish and express their identities.   Today, brands spend huge sums of money and time choosing the music, jingles, and spoken words that consumers will come to associate with their products. Major retail outlets such as The Gap, Bed Bath Beyond, and Outdoor World, for example, use customized in-store music programs to appeal to the senses of their anticipated customer groups. Abercrombie and Fitch knows, for example, that their typically younger customers spend more money when loud dance music is being played in the store. As Emily Anthese of  Psychology Today  wrote, Shoppers make more impulsive purchases when theyre over-stimulated. Loud volume leads to sensory overload, which weakens self-control. According to the Harvard Business Review, the familiar Intel Bong is played somewhere in the world once every five minutes. The simple five-note tone, along with the memorable slogan—Intel inside—has helped Intel become one of the most recognized brands in the world. Smell in Marketing   Researchers believe that smell is the sense most powerfully linked to emotion, with over 75% of our feelings being generated by odors. Todays fragrance industry is increasingly focused on perfecting perfumes for the brain—specifically, the brains of customers. According to Harold Vogt, co-founder of the Scent Marketing Institute in Scarsdale, New York, at least 20 scent-marketing companies worldwide are developing scents and aromas for companies to help them enhance their marketing and reinforce their brand identity with customers.   The consumer scent industry is currently a billion-dollar business. The fragrance industry is moving into the conditioning of indoor environments using aromatherapy infusion technology. Natural and chemical substances are released into the air to improve feelings of well-being and even increase human performance. Scent conditioning systems are now found in homes, hotels, resorts, healthcare institutions, and retail stores. At Walt Disney World in Florida, visitors to the Magic House at Epcot Center are relaxed and comforted by the smell of fresh-baked chocolate chip cookies. In-house bakery and coffee chains like Starbucks, Dunkin Donuts, and Mrs. Fields Cookies, recognize the importance of the smell of fresh-brewed coffee in attracting customers.   What smells work? Scent marketing researchers say that aromas of lavender, basil, cinnamon, and citrus flavors are relaxing, whereas peppermint, thyme, and rosemary are invigorating. Ginger, cardamom, licorice, and chocolate tend to stir romantic feelings, while rose promotes positivity and happiness. Another recent study showed that the smell of oranges tended to calm the fears of dental patients awaiting major procedures. Singapore Airlines is in the sensory marketing hall of fame for its patented scent called Stefan Floridian Waters. Now a registered trademark of the airline, Stefan Floridian Waters is used in the perfume worn by flight attendants, blended into the hotel towels served before takeoff, and diffused throughout the cabins of all Singapore Airlines planes. Taste in Marketing   Taste is considered the most intimate of the senses, mainly because flavors cannot be tasted from a distance. Taste is also considered the hardest sense to cater to because it differs so widely from person to person. Researchers have found that our individual taste preferences are 78% dependent on our genes. Despite the difficulties of generating mass taste appeal it has been attempted. In 2007, the Swedish food retail chain City Gross began delivering grocery bags containing samples of bread, beverages, sandwich spreads, and fruits directly to customers homes. As a result, City Gross customers felt a more intimate and memorable connection with the brands products compared to those of brands who used more traditional marketing tactics such as coupons and discounts. Touch in Marketing   The first rule of retail sales is, Get the customer to hold the product.  As an important aspect of sensory marketing, touch enhances customers interaction with a brands products. Physically holding products can create a sense of ownership, triggering must-have purchase decisions. Medical research has proven that pleasant touching experiences cause the brain to release the so-called love hormone, oxytocin, which leads to feelings of calmness and well-being. As with the sense of taste, tactile marketing cannot be done at a distance. It requires that the customer interact directly with the brand, usually through in-store experiences. This has led many retailers to display un-boxed products on open shelves, rather than in closed-display cases. Major customer electronics retailers like Best Buy and the Apple Store are known for encouraging shoppers to handle high-end items. Research cited by the Harvard Business Review shows that actual interpersonal touch, such as a handshake or a light pat on the shoulder, leads people to feel safer and spend more money. Studies have shown that waitresses who touch the diners they are serving earn more in tips. Multi-Sensory Marketing Successes Today, the most successful sensory marketing campaigns appeal to multiple senses. The more senses appealed to, the more effective the branding and advertising will be. Two major brands noted for their multi-sensory marketing campaigns are Apple and Starbucks. The Apple Store   In its stores, Apple allows shoppers to fully experience the brand. Throughout these concept stores, customers are encouraged to see, touch, and learn about the entire Apple brand. The stores are designed to convince prospective and existing Apple owners that the innovate brand is and will contribute to be the key to enjoying a state of the art lifestyle. Starbucks As a pioneer in employing multi-sensory marketing, Starbucks philosophy is to satisfy its customers senses of taste, sight, touch, and hearing. The Starbucks brand serves up this comprehensive package of sensual gratification through the use of consistent flavors, aromas, music, and printing that is known to appeal to its customers. All music played in Starbucks stores worldwide is selected from about 100 to 9,000 songs on CDs sent to the stores every month by the companys main office. Through this approach, consumers in all countries and cultures can share much more than a good cup of coffee. They get the entire Starbucks experience.

Regional Critique of North America - 1454 Words

Regional Critique of North America The North American continent is located within the Northern, and Western Hemisphere bordered by the Atlantic Ocean to the East, South America to the Southeast, Arctic Ocean to the North, and Pacific Ocean to the west. North America precedes Africa and Asia in largeness since it accommodates twenty three states with diverse population and cultures. North America comprises of 41 countries with United States of America having the highest population and Montserrat (UK) having the lowest population. The major cities of United States of America are notably, New York, Ottawa, Washington, New Orleans, and Detroit. These States have different features that shape environmental and economic growth. North America therefore, has various critiques for both human and physical geography. In the book North America: The Historical Geography of a Changing Continent by Thomas F. McIlwraith, and Edward K. Muller, the writer describes North America as a continent that developed gradually over many years. However, the statement â€Å"past† and â€Å"present† are simplifies notions of our conceptions of time is inappropriate because developments and growth of the present precedes what happened in the past. Furthermore, North America is a haven of archeology, culture, parks, science museums, world’s fairs, and golf courses. These properties have been elevated for many years by tranquil environment, clean water systems together with plants, and animals found in theShow MoreRelatedThe myth of the continents: A critique of metageography- Martin W. Lewis and Kà ¤ren E. Wigen’ summary660 Words   |  3 Pagesï » ¿The myth of the continents: A critique of metageography- Martin W. Lewis and Kà ¤ren E. Wigen’ In trying to summarize this piece of writing, I have tried to talk about what stood out to me, all quotations used for emphasis are from The myth of the continents: A critique of metageography (University of California Press: 1997). The very first thing we are taught about how the world is divided- before classifying it as first, second and third world or even simply North, East, West and South- is thatRead MoreIn Certain Cases Porters Diamond of Competitive Advantage May Not Be an Appropriate Framework for the Analysis of a Nations Sources of Competitive Advantage.1621 Words   |  7 PagesPorters model, focussing on three major areas: the role of FDI, foreign government influence and Multi National Enterprises (MNEs), before looking at developments to Porters diamond with country specific examples. RUGMANS AND COLLINSONS CRITIQUE OF PORTERS DIAMOND The eight areas identified for comment and evaluation namely: the model is limited by being based on ten countries, which are either industrialised or a member of a triad; the Government is of critical importance, and has beenRead MoreEncountering Development By Arturo Escobar : A Multi Pronged Initiative Of The Third World928 Words   |  4 PagesIn Encountering Development by Arturo Escobar, Escobar critiques the Development Project, a multi pronged initiative of socioeconomic management of the Third World, specifically Latin America, Asia, and Africa, via the First World powers, in question specifically the United States. The critique entails how industrialization and modernization of the Third World could be seen as the mode through which modernization could be achieved and this was enabled by bureaucratic entities, like the World BankRead MoreThe Elusive Promise Of Indigenous Development : Rights, Culture, Strategy1053 Words   |  5 Pagesmovements? These are two important qu estions raised in Karen Engle’s The Elusive Promise of Indigenous Development: Rights, Culture, Strategy. Asking how indigenous advocacy has gotten where it is, Engle offers a provocative examination of international, regional, and domestic law related to indigenous peoples (and other groups that have â€Å"piggy-backed† on the successes of indigenous movements). A critical legal scholar, Engle starts her query by asking the tough questions. Rather than assuming that the indigenousRead MoreMarketing Plan For Gm North America1353 Words   |  6 Pagesautomotive segments GM North America (GMNA), GM Europe (GME), GM South America (GMSA), and GM International Operations (GMIO) to serve the world’s six populated continents. GMNA, GM’s largest segment, manufactures, develops, and markets vehicles under the brands Buick, Cadillac, Chevrolet, and GMC to meet the demands of wholesalers, retailers, and fleet customers in North America. Elsewhere, the company provides the brands Holden, Opel, and Vauxhall as well as its North American vehicle lineupRead MorePast Influences that Marked Brazils Contemporary Society1679 Words   |  7 Pages This paper analyzes aspects of Brazil’s colonial history that has influenced contemporary societies. It also describes and critiques measures that have recently been implemented by the Brazilian government in attempt to curb the further deterioration of society. In Brazil’s society, neoliberal and capitalist beliefs within the social structure have hindered democratic politics. Diverse social groups are unable to come together and exert their political power as a united front, instead, the neoliberalRead MoreQuebec s Five Demands A Reasonable Request?1616 Words   |  7 PagesDr. Mark Blythe POL S 225: Canadian Government Due: 7 March 2016 Are Quebec’s Five Demands a reasonable request? The relationship between the Canadian government and Quebec has been in constant turmoil for years. This paper will discuss and critique Quebec’s five demands made in 1986 by the Liberal government and their current implications. Reasonable demands are ones in which a limited amount of asymmetrical federalism grants provincial sovereignty. Currently all provinces have certain guaranteedRead MoreWal Mart : An Examination Of Management Tools And Effectiveness1734 Words   |  7 Pagesachieve their respective goals. In the following analysis, this paper will comment on the tools and processes provided through Walmart to their managers for the purpose of maintain market dominance, while also analyzing how top management at Walmart critique and monitor management effectiveness at both the micro and macro levels. Indispensable Management Tools Efficient and effective operations are the key to success for any organization; whether it is a local small business or the largest retailer inRead MoreThe Strange Career Of Jim Crow Essay1173 Words   |  5 PagesInstitute of Technology (Georgia Teach). In 1931, he continued his education with graduate school at Columbiana University. There he received a Master of Arts. In 1947, he received his Doctor of Philosophy (Ph.D.) in history from The  University of North Carolina at Chapel Hill. Then he taught at  Johns Hopkins University. He made the achievement of becoming Sterling Professor of History at  Yale  University from 1961 to 1977. Woodward s most influential work is  The Strange Career of Jim Crow  which wasRead MoreAmerican South And Race Relations Essay1186 Words   |  5 PagesInstitute of Technology (Georgia Teach). In 1931, he continued his education with graduate school at Columbiana University. There he received a Master of Arts. In 1947, he received his Doctor of Philosophy (Ph.D.) in history from The  University of North Carolina at Chapel Hill. Then he taught at  Johns Hopkins University. He made the achievement of becoming Sterling Professor of History at  Yale  University from 1961 to 1977. Woodward s most influential work is  The Strange Career of Jim Crow  which was

Why Is Writing so Difficult for Me free essay sample

Why Is Writing So Difficult For Me Writing and English has always been my worst subject all throughout my school years. As we all know to be a good writer you have to use proper grammar and that right there is where my problem is when it comes to writing. I guess you can say it started from when I was growing up a kid. All the kids had to talk to my grandma in Spanish not English. If we talked to her in English we would get in trouble, so I did as the other kids did and that was talk Spanish. In elementary school they were teaching me English and when I say teaching me, I mean they were teaching me.I had speech and reading class to help me as well. In first grade they told my parents that I had to learn English and I could not speak Spanish. If I didnt learn it I was not going to be able to move to the second grade. Yes, you can say I had a lot to learn in so little time. I did what I had to do, I promised myself I was never going to talk Spanish ever again and I didn’t. By making that choice you can say my grandma was highly upset with me. I told her I had to do what I had to do. It’s a shame, something that was part of my culture and that I knew so well, was in a way taken away from me.I say that, because at that time I only knew Spanish and with them telling me I cannot speak it well I didn’t. I felt by me living in the United States, I had to speak English no matter what. It took a minute for me to learn it more than others but I was trying and as we know proper English makes your writing. You have to know where to put the periods, semi colons, and not use run on sentences, make sure your words have the proper Capitalization and etc. , just because it’s the proper thing to know. I know my English is not good. I know my writing is not good either.The way I write is the way I talk and as we all know my English is not the best. Going into high school we had it where if we did not miss any days in school we did not have to take the final. So yes you know I made sure I went to school every day just so I did not have to take the final exam. I mean would you pass up an easy A? I don’t think so! That’s exactly what I did; I didn’t pass up a golden opportunity. I guess looking back at it now I took the easy way out   which I knew was wrong,   I could   do bad in class and still come out with a passing grade just because I did not have to take the final.Well sad to say my English was not high school level. We had a class called Bilingual English. It was for people whose   English, was not at the level they are suppose to be at, so once again I took the easy way out. I feel that if I was in the high school English, I wouldve gotten the proper tools to learn English better. I didn’t and they werent as hard on you like a regular English class. It was just another easy way out for me not to learn. When it was time to do an essay I would pay someone to do it for me and put my name on it.Once again sad to say, I took the easy way out. Even though I passed and graduated from high school I always knew in the back of my mind I took the easy way out and I knew one day it would bite me in my butt,   like it is now. I don’t like writing because I don’t know the proper English for me to use it on my writing. When I get upset at someone I pick up a paper, pen and get to writing them on how I’m feeling. Some reason it never fails when I’m writing,  reading a book, or dealing with  anything English my mind get to wondering off.I don’t blame anyone but I because I had a chance to learn it and me always took the easy way out. By me taking the easy way out there is more to it that is holding me back from writing and I guess it had a lot to do with me growing up. Usually something that happened this traumatic will help a person be a better writer because they can express their feelings. I was the opposite way around, I tried one day writing a letter and the person laughed in my face not only did that make me feel low but what happened after that made me feel less than dirt.From that day on I put my head down, never to write anything. I kept it in my head and way deep inside my soul, so no one can ever laugh at me again. From that day on I never wrote an essay, a story, or a poem. In reality you can say this is my first time writing. I know I have plenty to learn and I hope that I have an understanding teacher that will be patient with me to teach me the proper way to write. I am always up for learning and I don’t have a problem in putting the effort to learn and do what I have to do. Like the saying says â€Å"it’s never too late. It’s never too late learning. All I need is patience and understanding from a teacher that can help me use the proper grammar to put into my writing. I know now that I can’t take the easy way out any more. Not only will I be cheating in class but I’ll be cheating myself out of the knowledge I am suppose to know and learn. Writing is something everybody needs to learn and know your writing is what you need to get through in life if it’s for a job, to help someone else, even to pass elementary, junior high, high school, and even college.I know one day I will understand the concept of writing and I hope by taking this class it will help me with the structure I need to help me on a everyday bases not just with college but also as I go into my field of Business Management. I will have to make presentations, proposals and maybe do some documentation. Writing is like a puzzle to me. Once I study hard enough and put the pieces together the puzzle will fit. I hope that I can get the proper knowledge and help so I can no longer be afraid of  writing.

Management Accounting and Evaluation for Telebox Ltd

Question: Discuss about the Management Accounting and Evaluation for Telebox Ltd. Answer: Calculation for Cost of Raw Material, Labor Cost and Overhead Expenses:- Output (in Units) : 200000 Particulars Cost per Unit Input per unit Total Requirement Total Cost Circuit Boards 50 1 200000 10000000 Delivery Cost 40 1 200000 8000000 Total Cost for Circuit Board 90 1 200000 18000000 Wiring (in rolls) 10 2 400000 4000000 Metal Solder (in Grams) 0.35 50 10000000 3500000 Add: Wastage 0.35 2.63 526315.79 184210.53 Total Cost of Metal Solder 0.35 52.63 10526315.79 3684210.53 Assembly Labor (in Hour) 12 0.5 100000 1200000 Remote Control Units 5 1 200000 1000000 Add: Shipment Cost 1.25 1 200000 250000 Total Cost of Remote Control 6.25 1 200000 1250000 Variable Production Overhead (in Hours) 15 0.5 100000 1500000 Fixed Production Overhead (in Hours) 25 0.5 100000 2500000 Calculation for Estimated Cost per Unit:- TOTAL Particulars Total Unit Cost per unit Amount Amount Budgeted Sales 200000 200 40000000 40000000 Cost of Raw Materials: Circuit Boards 200000 90 18000000 Wiring 200000 20 4000000 Metal Solder 200000 18.42 3684211 25684211 Assembly Labor Cost 200000 6.00 1200000 1200000 Indirect Material: Remote Control 200000 6.25 1250000 1250000 Overhead Expenses: Variable Overhead 200000 7.50 1500000 Fixed Overhead 200000 12.50 2500000 4000000 Selling, General Administration Overhead:- Research 200000 0.15 30000 Design 200000 0.125 25000 Marketing Distribution 200000 0.2 40000 Web-Site Maintenance 200000 0.1 20000 Customer Service 200000 0.05 10000 125000 Total Estimated Cost of Sales 200000 161.30 32259211 Budgeted Profit 200000 38.70 7740789 Budgeted Profit Margin 19.35% Calculation for Cost Gap:- Particulars Cost Price unit Total Unit Total Amount Estimated Cost 161.30 200000 32259211 Selling Price 200 200000 40000000 Less: Target Profit 44.00 200000 8800000 Target Cost 156.00 200000 31200000 Target Cost Gap 5.30 1059210.5 Introduction The main aim of every firm working in the current market is to generate revenue. It is done in order to create a strong grip over the market position and boost up the competitive position in the market. The firms running in the competitive economic market focus on decreasing their production cost in order to raise their revenue keeping the external operations required for the production unaffected. Telebox Ltd, producer of wireless set top box functions its business with the help of various suppliers as they require raw materials and auxiliary tools for the production process. This firm also faces other manufacturing costs relating to research, marketing design labour cost, web-site maintenance etc (Yazdifar and Askarany 2012). The primary focus of Telebox Ltd is to find out the predicted cost for every unit of wireless set top box. It is even seen that a cost gap is generated. Discussion The target cost gap is calculated by estimated cost minus the target cost. The higher management of Telebox Ltd therefore creates benchmarks, which is useful in making the target costs better by improving the operations and the technologies used for production. There are different operational strategies that can be used in order to decrease the cost gap. The company can minimize the various elements that are essential for the production process and for the auxiliary tools that are even inclusive in the production cost. It is essential for the firm to make use of the generally accepted tools and raw materials wherever required to reduce the bridge between their competitors (Johansen and Fossen 2013). The most primary process to raise the productivity and service quality is by showering adequate and relevant training to their staffs so they can obtain essential knowledge about the creative and relevant tools of operations. It is profitable for the organization to make use of different varieties of materials thereby reducing the manufacturing cost. The appointment of cheaper labours into the firm by employing the local community into the business is also useful to bridge the cost gap (Sani and Allahverdizadeh 2012). The entry of innovative and creative technology within the firm will raise the quality and productivity and will also decrease the cost related to manufacture. It is even important for the company to eliminate all the non-value added operations in relation to production thereby reducing the liability of the enterprise. The minimization in the in the cost of labour and raw materials consumed is even an appropriate way thereby reducing the waste coming out of the manufacturing unit. The organization should also take note to raise the productivity so that increase in production will lower the manufacturing cost in bulk. Telebox Ltd brings in raw materials and other necessary items from their suppliers and therefore require delivery and shipping cost (Fayard et al. 2014). The firms asks for special discounts in order to decrease the delivery cost by transporting bulk of raw materials through one consignment, thus decreasing the total number of trips. They even use Kaizen costing method a s this process finds out all the costs at the primary stage of manufacture and thus restricting the firms to invest in any non-value added operations (Jiang and Hansen 2016). From the above calculations, it is seen that Telebox Ltd has a positive cost gap. It has been occurred due to the utilization of low quality material. The company has a chance to improve the quality of the product as well as reduce the cost gap of per unit manufacture of wireless set top box . It is essential that the firm introduces the kaizen cost technique and target costing. The firm brings in circuit boards from the suppliers of Taiwan at 90 each, which includes the delivery charge. The organization asks the suppliers for discounts as they purchase their product in a bulk. The enterprise tries to lower its production cost by minimizing the delivery cost (Yoshikawa and Kouhy 2013). The firm is also in the need of purchasing metal solders, which is useful for making connections between the circuit boards and the wires (Kaplan and Atkinson 2015). Telebox Ltd in order to reduce the production cost thinks of using lower graded solders but the problem involved with such solders is that they produce a lot of waste whereas the higher graded solder does not leave any residue. It is seen that there is a difference of 1 between both the solders. Conclusion It is recommended that the organization should use higher graded solders as it does not leave any residue and therefore, the rate of higher grade solder will be lower than the lower grade solders (Melo, Granja and Ballard 2013). Telebox Ltd presently buys remote control for use with the set top box from a supplier. The cost of the shipment is 1250 that includes the cost of shipping for 1000 units of remote controls. The design team of Telebox, in order to minimize cost is having an idea of using the existing television remote for the set top boxes, thereby reducing the burden of an extra remote from the consumers. The use of the existing remote for the wireless set top boxes will decrease a certain amount of cost for the firm, which will decrease the cost gap. Introduction The primary focus of every enterprise is to retain a product price in the market that is inferior from their rival firms so that the enterprise lives through the competitive environment. The firms therefore look to evaluate their costs in the most suitable way. The cost detection is a vital part of every firm as it is good for the enhancement of the firm. Target costing is an essential model used for the evaluation of the production cost at the stage of design and lower the commodity cost before they are being manufactured. Thus, it can be stated that the primary focus of target costing is to monitor costs before they are introduced in the market (Briciu and Capusneanu 2013). Target costing is introduced at the primary stage of life-cycle of the product before product design and product development. Target costing is helpful in finding out the production model of a new commodity. Telebox being the industry in focus, it is seen that it is in a condition to implement wireless set top box, which is installed in the television set without the use of any wires (Bovea and Prez-Belis 2012). The introduction of the new product( wireless set top box) is in requirement of target costing so that a predicted cost can be attained. In the model of target costing, the operation is under the influence of the consumers and thus focuses on designing and distributing commodities over the life-cycle of the product. Telebox, thus brings in the new product by evaluating the demand of the current consumers (Mouritsen, Hansen and Hansen 2011). Target costing thus concentrates into the revenue and the cost incurred in the management operations to reduce the cost of the products t hrough the entire life of the commodity. Discussion The requirement of target costing took place from the demand of the producers to improve their product development and product cost management. Target costing alike costing models like kaizen costing, activity costing etc are used by industries like Telebox Ltd as they want to enhance their quality and productivity of their product (Nolan 2014). It is observed that target costing is undertaken at the primary stage of life-cycle of the product in which the product design and product development are initiated. Thus it is seen that product design and development is an essential feature while evaluating target costing. The lifeline of an enterprise is product development (Gopalakrishnan et al. 2015). The main aim of product development is to transfer demand of the market into practicality, converting the intangible to tangible and generation of new revenue within the firm. The importance of product development is as follows: Fresh Value to the Consumers The most essential factor for the generation of a new commodity is to satisfy the demand and value of the customers. The firms do not want to invest money in any commodity that does not satisfy the demand of the customers (Marion et al. 2015). The requirement of new and creative value inspires the enterprise firm to keep moving forward. Telebox bring in wireless set top box into the market as it knows that this commodity will enhance the lifestyle of the customers and provide value to them. Improved Society The new commodities manufactured are generally an incremental improvement over their past version having some added advantages and performance. Such products add new capital in the firm and even play a vital role in the development of the society (Homburg, Schwemmle and Kuehnl 2015). The implementation of wireless set top box will decrease any problems related to wires and makes product mobile. Existence and Expansion of the Company The innovative and creative commodity is a bloodline of the firm as if an enterprise does not enhance their product looking after the changing time and demand of the consumers, they product may die or eliminate from the market. The community even is enhanced with the continuous changes in the product as it improves their standard of living (Piller, Vossen and Ihl 2012). The rise in demand will raise the revenue of the firm resulting to the expansion of the organization. Telebox, with its low cost of production and and innovative wireless box will raise its revenue from the economy growing their business and obtaining greater market share. Product design on the other hand is an essential factor that enhances target costing with relation to the cost life cycle of a commodity. The life cycle of a product is very much dependent on the product designing as it inspires new and potential consumers in the market. There exist various problems, which an organization faces while starting product design mechanism at the primary phase of product life cycle (Mooi, Wathne and Kayande 2016). These problems mainly refer to rise in cost, lengthy timescales to introduce the commodity into the market as the firm needs to undertake extensive analysis and research. Product designing even faces the problem of output uncertainty as the firm is always not sure whether the product design will suit the requirements of the customers. It is a complex method to find out the transforming needs of the customers with respect to the change in time and therefore, creation of long term product design becomes difficult (Ullman 2015). Conclusion There are various problems with regard to the product design but there are certain pros associated to it as well. The firm even needs to look into the brighter aspect of and need to implement the same as product design is useful in generating innovative products that can make huge transformation in the market product design is useful in generating competitive gain as their design increases an edge over its rivalries (Ashby and Johnson 2013). Product design is helpful in developing reputation and brings in new opportunities thereby backing the firms to raise their share in the market and increase their profit. Telebox Ltd thus concentrates on the factors that are relevant to product development and product design and through this process tries to analyze the cost through target costing (Radlovic, Lemon and Ford 2013). Thus, it is visible that Telebox Ltd in trying to place its commodity in the focused market with concentrating on target costing and will analyze its product design and development, which can be helpful to them to raise their revenue and make a name of them in the market. Reference List .Ashby, M.F. and Johnson, K., 2013. Materials and design: the art and science of material selection in product design. Butterworth-Heinemann. Bovea, M. and Prez-Belis, V., 2012. A taxonomy of ecodesign tools for integrating environmental requirements into the product design process. Journal of Cleaner Production, 20(1), pp.61-71. Briciu, S. and Capusneanu, S., 2013. Pros and cons for the implementation of target costing method in Romanian economic entities. Accounting and Management Information Systems, 12(3), p.455. Fayard, D., Lee, L.S., Leitch, R.A. and Kettinger, W.J., 2014. Interorganizational cost management in supply chains: Practices and payoffs. Management Accounting Quarterly, 15(3), pp.1-9. Gopalakrishnan, M., Libby, T., Samuels, J.A. and Swenson, D., 2015. The effect of cost goal specificity and new product development process on cost reduction performance. Accounting, Organizations and Society, 42, pp.1-11. Homburg, C., Schwemmle, M. and Kuehnl, C., 2015. New product design: Concept, measurement, and consequences. Journal of Marketing, 79(3), pp.41-56. Jiang, L. and Hansen, C.., 2016. Target Costing as a Strategic Tool to Commercialize the Product and Service Innovation. Johansen, T.A. and Fossen, T.I., 2013. Control allocationa survey. Automatica, 49(5), pp.1087-1103. Kaplan, R.S. and Atkinson, A.A., 2015. Advanced management accounting. PHI Learning. Marion, T.J., Eddleston, K.A., Friar, J.H. and Deeds, D., 2015. The evolution of interorganizational relationships in emerging ventures: An ethnographic study within the new product development process. Journal of Business Venturing, 30(1), pp.167-184. Melo, R.S., Granja, A.D. and Ballard, G., 2013. Collaboration to Extend Target Costing to Non-Multi-Party Contracted Projects: Evidence From Literature. 21st Annual Summit of the International Group for Lean Construction, pp.1-10. Mooi, E.A., Wathne, K.H. and Kayande, U., 2016. Openness and Innovation Performance Revisited. Journal of Marketing Behavior, 2(1), pp.69-76. Mouritsen, J., Hansen, A. and Hansen, C.., 2001. Inter-organizational controls and organizational competencies: episodes around target cost management/functional analysis and open book accounting. Management Accounting Research, 12(2), pp.221-244. Nolan, K., 2014. The future of product development. Piller, F.T., Vossen, A. and Ihl, C., 2012. From social media to social product development: The impact of social media on co-creation of innovation. Die Unternehmung, 65(1). Radlovic, P., Lemon, M. and Ford, P.B., 2013. Design for the environment in UK product design consultancies and in-house design teams: an explorative case study on current practices and opinions. Sani, A.A. and Allahverdizadeh, M., 2012. Target and Kaizen Costing. World Academy of Science, Engineering and Technology, 6(2), pp.40-46. Ullman, D., 2015. The mechanical design process. McGraw-Hill Higher Education. Yazdifar, H. and Askarany, D., 2012. A comparative study of the adoption and implementation of target costing in the UK, Australia and New Zealand. International Journal of Production Economics, 135(1), pp.382-392. Yoshikawa, T. and Kouhy, R., 2013. Continuous improvement and Kaizen Costing. The Routledge Companion to Cost Management, p.96.