netrashetty
Netra Shetty
DST Systems Inc. (NYSE: DST) is a software development firm that specializes in information processing and management, with the goal of improving efficiency, productivity, and customer service. DST was founded in 1969 as a division of Kansas City Southern Industries, and is currently headquartered near Kansas City Southern's headquarters on Quality Hill in Kansas City, Missouri.
DST Systems Inc. produces the AWD, or Automated Work Distributor, software package, which is a business process management solution. Its primary purpose is to increase back-office efficiency through workflow and imaging. It also helps to reduce paper in the office, moving businesses towards the paperless office.
DST Systems, Inc. is headed by CEO Thomas McDonnell, President Steve Hooley, and CFO Kenneth Hager. Internationally, many of DST Systems products are sold by its subsidiary DST Global Solutions.
a new product is introduced to a market, the innovators may be the only people aware of the new product. If the product is a new product class, the innovators may not know what the product uses are. Recalling that the innovators represent only a small percent of the population, the sales of the new product will be low. However, there is an advantage in this situation in that the new product does not yet have any competition. During the introduction stage of a new product, the developer enjoys a monopoly.
Unfortunately, the product monopoly does not usually translate to immediate profits. The product may have been in development for a long time and considerable development costs are still in the recovery phase. Also, an expensive marketing effort may be needed to introduce the product to the public. With low sales and high expenses, the introduction stage of the life cycle is usually a money loser for the company. However, the hope is for the future of the product, and the company usually is more than willing to incur the losses.
GROWTH.
As the early adopters begin to try the product, a sale begins to grow and profits usually start to follow. This is a great time for a company introducing a new product because the company still enjoys a monopoly early in the growth stage. The company is reaping all the sales and profits of the new product. When Chrysler introduced the idea of the minivan, they were in this enviable position of having the only minivan on the market.
As the early adopters begin influencing the early majority, sales and profits sore. The competition has also been watching from the new product's inception. Unfortunately for the original firm, the competition has also noticed the new product's success. Although they cannot be the first, the competition races to offer their own products and gain a share of a growing market. Chrysler's minivan did not maintain its monopoly for long; soon, the other major automobile manufacturers offered models to compete with Chrysler. Although total sales and profits continue to grow throughout the growth stage, they are divided among many manufacturers.
MATURITY.
By the end of the growth stage of the life cycle, the market is beginning to become very competitive, and this trend continues into the early period of the maturity stage. Besides many more manufacturers offering their products, the producers continue the product-differentiation process begun in the growth stage. The result is a market saturated with many manufacturers offering many models of the product. These manufacturers produce a multitude of models, from desktop computers to notebooks.
With so many companies now in the market, the competition for customers becomes fierce. Although total sales continue to grow during the first part of the maturity stage, the increased competition causes profits to peak at the end of the growth stage and beginning of the maturity stage. Profits then decline during the remainder of the maturity stage. The declining profits mean that the market is not as attractive to companies as it was in the growth stage.
In the growth stage, even inefficient companies made money. However, only the best companies and their products survive in the maturity stage. Manufacturers begin to drop out as they see profits turn to losses. Though there is still competition in the computer industry, for example, companies such as Dell and Apple have emerged as the leaders in the market. During the later part of the maturity stage, even sales begin to dip, putting more pressure on the remaining manufacturers.
Many marketers mistakenly believe marketing research, while important in helping make marketing decisions, is something that is far too expensive to do on their own. While this is true for some marketing decisions, marketers should also know that not all marketing research must be expensive to be useful.
For the rest of this tutorial we discuss secondary research sources that are easily obtainable and relatively low cost (often free). Many of these inexpensive sources hold great potential to aid marketers in several ways. First, for marketers seeking information to help with marketing decisions, the material found through these sources can be extensive and, on many occasions, will meet the marketer’s needs. Second, even in situations where the available information is not sufficient quantity or quality to be used for marketing decision-making, the information could still be used to fill smaller needs, such as the need to enter a metric in a slide presentation. Third, the information located through these sources may suggest to the research seeker that conducting their own primary research is necessary in which case the secondary research could serve as a guide for how this can be done.
Despite these advantages, inexpensive research carries many disadvantages making it unsuitable for some situations. As we noted in the Planning for Market Research Tutorial , these problems include:
The information lacks sufficient detail to address the marketer’s needs.
The method in which the research is presented does not provide sufficient supporting material to allow the research seeker to judge the quality of the research.
The amount of information presented represents only a “teaser” that requires the purchase of a full report to obtain full details.
DST Systems Inc. produces the AWD, or Automated Work Distributor, software package, which is a business process management solution. Its primary purpose is to increase back-office efficiency through workflow and imaging. It also helps to reduce paper in the office, moving businesses towards the paperless office.
DST Systems, Inc. is headed by CEO Thomas McDonnell, President Steve Hooley, and CFO Kenneth Hager. Internationally, many of DST Systems products are sold by its subsidiary DST Global Solutions.
a new product is introduced to a market, the innovators may be the only people aware of the new product. If the product is a new product class, the innovators may not know what the product uses are. Recalling that the innovators represent only a small percent of the population, the sales of the new product will be low. However, there is an advantage in this situation in that the new product does not yet have any competition. During the introduction stage of a new product, the developer enjoys a monopoly.
Unfortunately, the product monopoly does not usually translate to immediate profits. The product may have been in development for a long time and considerable development costs are still in the recovery phase. Also, an expensive marketing effort may be needed to introduce the product to the public. With low sales and high expenses, the introduction stage of the life cycle is usually a money loser for the company. However, the hope is for the future of the product, and the company usually is more than willing to incur the losses.
GROWTH.
As the early adopters begin to try the product, a sale begins to grow and profits usually start to follow. This is a great time for a company introducing a new product because the company still enjoys a monopoly early in the growth stage. The company is reaping all the sales and profits of the new product. When Chrysler introduced the idea of the minivan, they were in this enviable position of having the only minivan on the market.
As the early adopters begin influencing the early majority, sales and profits sore. The competition has also been watching from the new product's inception. Unfortunately for the original firm, the competition has also noticed the new product's success. Although they cannot be the first, the competition races to offer their own products and gain a share of a growing market. Chrysler's minivan did not maintain its monopoly for long; soon, the other major automobile manufacturers offered models to compete with Chrysler. Although total sales and profits continue to grow throughout the growth stage, they are divided among many manufacturers.
MATURITY.
By the end of the growth stage of the life cycle, the market is beginning to become very competitive, and this trend continues into the early period of the maturity stage. Besides many more manufacturers offering their products, the producers continue the product-differentiation process begun in the growth stage. The result is a market saturated with many manufacturers offering many models of the product. These manufacturers produce a multitude of models, from desktop computers to notebooks.
With so many companies now in the market, the competition for customers becomes fierce. Although total sales continue to grow during the first part of the maturity stage, the increased competition causes profits to peak at the end of the growth stage and beginning of the maturity stage. Profits then decline during the remainder of the maturity stage. The declining profits mean that the market is not as attractive to companies as it was in the growth stage.
In the growth stage, even inefficient companies made money. However, only the best companies and their products survive in the maturity stage. Manufacturers begin to drop out as they see profits turn to losses. Though there is still competition in the computer industry, for example, companies such as Dell and Apple have emerged as the leaders in the market. During the later part of the maturity stage, even sales begin to dip, putting more pressure on the remaining manufacturers.
Many marketers mistakenly believe marketing research, while important in helping make marketing decisions, is something that is far too expensive to do on their own. While this is true for some marketing decisions, marketers should also know that not all marketing research must be expensive to be useful.
For the rest of this tutorial we discuss secondary research sources that are easily obtainable and relatively low cost (often free). Many of these inexpensive sources hold great potential to aid marketers in several ways. First, for marketers seeking information to help with marketing decisions, the material found through these sources can be extensive and, on many occasions, will meet the marketer’s needs. Second, even in situations where the available information is not sufficient quantity or quality to be used for marketing decision-making, the information could still be used to fill smaller needs, such as the need to enter a metric in a slide presentation. Third, the information located through these sources may suggest to the research seeker that conducting their own primary research is necessary in which case the secondary research could serve as a guide for how this can be done.
Despite these advantages, inexpensive research carries many disadvantages making it unsuitable for some situations. As we noted in the Planning for Market Research Tutorial , these problems include:
The information lacks sufficient detail to address the marketer’s needs.
The method in which the research is presented does not provide sufficient supporting material to allow the research seeker to judge the quality of the research.
The amount of information presented represents only a “teaser” that requires the purchase of a full report to obtain full details.
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