CIM Coursebook 06/07 Customer Communications

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This item may ship fro the US or other locations in India depending on your location and availability. Condition: Brand New. Book Condition:- Brand New. Secured Packaging. Fast DeliveryBookseller Inventory Seller Inventory STM Specific exam skills can be developed by studying past case studies, questions and specimen answers given on the CIM website www. To develop the marketing mix, information is needed so Unit 8 explores the issue of information.

Before deciding how to research an understanding of why the information is needed and will be used is essential. Units 9 and 10 cover a range of the communications, management and financial skills needed in the day-to-day activities of marketing. At the end of the book, a return is made to the theme of Unit 1, with an overview of the complete planning processes and how individual elements that form part of this syllabus fit together into an overall marketing plan.

This module is not only the integrative module for level one, it also points to the syllabus elements in level two. Acknowledgments The models in this coursebook have been developed over a number of years with CIM students; their contribution in refining the models is appreciated. Sharon Heard assisted in the preparation of the draft manuscript. Helpful discussions, to revise and considerably improve the draft, were contributed by Ali Green University of Exeter and Lorraine Kirby University of the West of England.

This has been further enhanced through independent reviews carried out by CIM. We have aimed to develop the assessment support to include some additional support for the assignment route as well as the examination, so we hope you will find this helpful. The authors and indeed Senior Examiners in the series are commissioned for their CIM course teaching and examining experience, as well as their research into specific curriculum-related areas and their wide general knowledge of the latest thinking in marketing. They will guide you in a logical and structured x Preface way through the detail of the syllabus, providing you with the required underpinning knowledge, understanding and application of theory.

The editorial team and authors wish you every success as you embark upon your studies. Karen Beamish Academic Development Advisor How to use these coursebooks Everyone who has contributed to this series has been careful to structure the books with the exams in mind. Each unit, therefore, covers an essential part of the syllabus. You need to work through the complete coursebook systematically to ensure that you have covered everything you need to know.

This coursebook is divided into units each containing a selection of the following standard elements: o o o o o o o o o o o o o Learning objectives — tell you what you will be expected to know, having read the unit. Syllabus references — outline what part of the syllabus is covered in the module.

Study guides — tell you how long the unit is and how long its activities take to do. Questions — are designed to give you practice — they will be similar to those you get in the exam. Answers — at the end of the book give you a suggested format for answering exam questions. Remember there is no such thing as a model answer — you should use these examples only as guidelines. Activities — give you a chance to put what you have learned into practice. Debriefings — at the end of the book shed light on the methodologies involved in the activities. Hints and tips — are tips from the senior examiner, examiner or author and are designed to help you avoid common mistakes made by previous candidates and give you guidance on improving your knowledge base.

Insights — encourage you to contextualize your academic knowledge by reference to real-life experience. Key definitions — highlight and explain the key points relevant to that module. Definitions — may be used for words you must know to pass the exam. Summaries — cover what you should have picked up from reading the unit. Further study — provides details of recommended reading in addition to the coursebook. While you will find that each section of the syllabus has been covered within this text, you might find that the order of some of the topics has been changed.

This is because it sometimes makes more sense to put certain topics together when you are studying, even though they might appear in different sections of the syllabus itself. On this site you can benefit from: o o o o o Fully customizable electronic versions of the coursebooks enabling you to annotate, cut and paste sections of text to create your own tailored learning notes. The capacity to search the coursebook online for instant access to definitions and key concepts.

Useful links to e-marketing articles, provided by Dave Chaffey, Director of Marketing Insights Ltd and a leading UK e-marketing consultant, trainer and author. A glossary providing a comprehensive dictionary of marketing terms. Please go to www. Once you have got your password, you will need to log on using the onscreen instructions. This will give you access to the various functions of the site.

MarketingOnline provides a range of functions, as outlined in the previous section, that can easily be accessed from the site after you have logged on to the system. If you have specific queries about using MarketingOnline then you should consult our fully searchable FAQs section, accessible through the appropriate link in the top right hand corner of any page of the site. Please also note that a full user guide can be downloaded by clicking on the link on the opening page of the website. Syllabus references In the examination setting for this integrative paper, candidates are expected to develop self-consistent e.

The overall objective of this first unit is to provide a systems overview so that answers can be developed that are effective and coherent in the specific case study context. Answers which are correct in format e. The final paper at this level draws upon the three earlier papers and requires candidates to provide an integrated development of the theory and relevant issues in their answers to exam questions or integrated assignment reports. CIM Syllabus references: 2. Key definitions Decision-making unit — The group of people who may be involved in the purchase of an item, the buyer may well not be the decider.

Gap analysis — A model for evaluating strategies for moving a company from where it is with its existing strategies to where it desires to be. McKinsey 7s — A model for analysing the human and organizational issues within an organization. It is generally considered complementary to the value chain. Marketing Information System — A Marketing Information System MkIS is a continuing and interacting structure of people, equipment, and procedures to gather, sort, analyse, evaluate and distribute pertinent, timely and accurate information for use by marketing decisionmakers to improve their marketing planning, implementation and control Kotler, Microenvironment — The environment immediately surrounding the organization including the competition.

PEST — The analysis of the political, economic, social and technical environment within which the company operates. Porter Value Chain — A model for the internal examination of the organization and how it interacts with its environment. Porter 5 forces of competition — A method for the analysis of competitive forces on a company. Pull strategy — The activities used to directly inform and encourage buyers to go to outlets and purchase a consumer product e. Push strategy — The activities used to get consumer goods stocked by the retailers and channels.

Segmentation — The division of a large, heterogeneous market area into homogeneous sections to allow more effective marketing. Stakeholder — A stakeholder is any specific, identifiable group that may have an effect on the organization, either beneficial or adverse. SWOT — Strengths, Weaknesses, Opportunities and Threats analysis: a way to refocus all the internal and external analysis into key issues for directing management action.

Some new material is introduced, but much of the content is taken from the other three modules at this level. The major significant difference in this module is its integrative nature. Any single assessment element may need material introduced from any of the four modules. Bridge to Professional Diploma in Marketing When studying any new subject there is a potential problem that in reviewing the elements in detail, the overview of the subject as a whole becomes obscured.

If you wish to learn to drive a car, you cannot just learn the Highway Code and omit the skill of actually driving the car. To be a safe driver you have to understand all the relevant issues and acquire all the skills. Marketing Information is considered in Unit 8. The research department collects data raw elements of observation such as the number of people who buy a product , but managers need information in order to make business decisions.

Market research in itself does not make management decisions. Managers have to interpret data and information to make decisions. A marketing professional needs to understand how their role and activities within the organization contribute to its overall success. When a person visits a medical doctor, they do not want a lecture on molecular biology, they want to be cured. A company does not want to hire a person who can give a lecture on market segmentation; they want an individual who can achieve business objectives such as a successful new product launch, a real link to the practical world.

Theory is evolved from observing the way marketing has worked; the theory can then be applied to new situations to aid the marketing professional in making better and more successful decisions. To learn and understand theory, it is essential to select practical examples from your own experience. In this way, you will develop not only knowledge but also understanding and the ability to use your knowledge and understanding of theory to develop innovative creative solutions to practical business situations. In undertaking this integrative module, the CIM expects candidates to be conversant with the content of the other three modules at this level.

In formulating a profitable implementation strategy, the longer-term objectives of building lifetime stakeholder value must also be considered hence the relatively early brief outlines of relationship marketing and internal marketing in Unit 2. Problems have to be solved and decisions made in a variety of marketing contexts. Marketing a local charity is very different to marketing an international airline.

Unit 2 provides a brief review of some of the different contexts of marketing. Units 3, 4, 5, 6 and 7 provide a focused review of the integrated marketing mix. Given the integrated nature of this module, the development of skills is linked into the cover of the marketing mix. For example, aspects of finance are integrated into Unit 4 on Price. Setting the price, in a marketingorientated organization should be more than just cost plus a fixed margin. This treatment recognizes the integrated nature of marketing decisions.

The case studies and activities provide a range of contexts to develop these skills in a variety of situations that the professional marketer may face. Table 1. This will give you the framework and cover the general skills issues, but this is only a modest proportion of the marks which can be earned in such a question.

The letter must not only have the right structure but also relevant content, drawing upon the marketing context and objectives of the letter. The strategy of this book Figure 1.


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  • Units 8—10 Figure 1. If the task is to write a marketing plan this does not imply there are 12 potential marketing plans; more that one of the listed contexts may apply. Thus, one could envisage a small charity wanting to provide medical assistance to a less-developed country. There are relatively few exclusions, for example, in the marketing of consumer goods; it might be thought that business-to-business B2B issues were not relevant.

    The implication of this is that there are over potential contexts for a marketing plan. It is not possible to write a book that provides an example of every type of marketing plan, letter, budget and so on. As shown in Figure 1. The ability to apply knowledge and synthesize solutions for a given marketing problem in context is an essential professional competence at this level.

    The CIM assessments are designed to test your level of professional competence by exam or integrative assignment. Get the horse in front of the cart; the development of professional competence will enable you to pass the CIM 5 Unit 1 An overview of the marketing system assessments. Passing the assessment provides the evidence of having achieved the appropriate level of professional competence.

    Success in the assessment exam or integrative assignment comes from having previously developed competence. Why an integrated view? A change in one part of the system had created a bug in another part of the system. In integrated marketing, plans and actions must be set in their appropriate contexts. A change in distribution may imply changes in the product e. A systems view of marketing One of the problems in medicine is that medical specialists get to know more and more about less and less.

    Clearly, it is necessary to know how the heart works but this is part of a total system, the human body. Increasingly, it has become apparent that while understanding the individual components is important, an overview of the total patient is required. The same is true of marketing.

    Account Options

    Clearly, when implementing a marketing communications plan, a depth of understanding of advertising and the strengths and weaknesses of various media is required. However, these decisions have to be made in the context of an integrated marketing mix that itself must integrate into an overall business plan. In this unit, we will take a brief tour of the total marketing system. In Unit 2, some of the contexts that shape the way we use the tools are reviewed e. B2B marketing is significantly different to marketing fast moving consumer goods FMCG to the general public.

    An overview of the marketing system is given in Figure 1. The organization operates in a marketplace, which consists of the buyers and users of the product. In the marketplace, buyers and users are influenced by other groups of people stakeholders ; so, even if parents are the buyers in a toyshop, the children for whom they are purchasing the toy are also relevant stakeholders. The behaviour of the marketplace is influenced by the microenvironment; in particular the competition and their competitive marketing mix offerings. In turn, the microenvironment is influenced by the macroenvironment.

    The organization responds to the environment by continually adapting its internal environment. A SWOT analysis is one very useful tool for analysing the flood of information.

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    CIM Coursebook 06/07 Customer Communications

    The management team must define the broad mission, aims and objectives and decide the strategic stance to be adopted e. In appraising situations, formulating 6 Unit 1 An overview of the marketing system alternatives and selecting management actions e. Boston BCG matrix is invaluable. The best marketing plan is worthless if the product is of poor quality or does not arrive in time. Marketing plans involve cash flows and so the financial implications are critical. To implement marketing plans, the whole organization must be energized, so marketing plans must integrate with all the other business plans, for example logistics, financial management and organizational development.

    Activity 1. Who are its customers? What competition does the organization face? What do you think are the key challenges in the future for your selected organization? When mission statements are written, much is made of issues such as customer satisfaction. However, in some circumstances, it is a little difficult to define precisely who the customer is. This may be because the organization is a not-for-profit or social marketing organization or the definition of customer is not obvious for the product or service.

    The key concept is that of stakeholders. We can then accept that customers are a key stakeholder group and that a college has many and complex stakeholder groups. Stakeholders It is essential to satisfy or at least manage all the legitimate stakeholder expectations. It is no use marketing a toy to parents only for them to find their child does not play with it.

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    Equally, it does not help if the parents do not buy the toy in the first place. To illustrate stakeholder analysis we shall consider a personal care product — shampoo. Partial stakeholder analysis for this situation is given in Figure 1. Note that appropriate interpretation of market segmentation concepts is useful in identifying the structure within the groups that have been identified by the analysis.

    Internal stakeholders are vital and staff motivation and commitment are characteristics of successful organizations. Internal stakeholders can be segmented by features such as job level or job function. In internal marketing initiatives, such as during the management of change, attitude segmentation variables e. No product gets to the supermarket shelf without going through a B2B marketing process. Very often with consumer products, there is a division between B2B customers who use the product for the delivery of a service in our case it would be the hair salons and the B2B customers who retail the product to customers for home use.

    Clearly all the normal tools of market segmentation apply to groups of customers, identified for convenience in Figure 1. Most organizations operate within a framework of law and rules, which are enforced by regulators. For a manufacturer of shampoo, safety in manufacture and in consumer use is subject to regulatory control.

    The marketing claims made for the product e. The activity of a firm will be scrutinized by pressure groups with their own specific agenda. In Europe, animal testing of personal care products has been discontinued; however, international companies who operate under different standards in their home market may also come under pressure in Europe. In the fashion sector of the market, consumer pressure groups may consider marketing claims extravagant and products over-priced.

    A key PR activity is to lobby regulators and address the issues raised by the pressure groups. Firms both compete in the marketplace but will also collaborate e. Within the industry, there may be associations such as the Article Numbering Association industry forum for ensuring the effective and efficient use of bar codes to the benefit of both manufacturers and retailers of consumer products. The media are a significant influence on the brand. Celebrity endorsement in the editorials of the glossy fashion press can be a very positive influence.

    Adverse reports in the consumer or environmental pages of a paper can have a negative effect. The trade press can be important in maintaining credibility with B2B customers and in attracting the most able staff to join the organization. You should consider both the internal as well as the external stakeholders. Stakeholder analysis is a key skill for a marketer and is often part of a CIM exam question e. Figure 1. There are other companies that compete but not in such a direct way: Boots competes with ASDA in the personal care sector but not in clothing.

    However, it should be remembered that a large, distant competitor could have a significant impact on a small organization. By creaming off 9 Unit 1 An overview of the marketing system the sales of the latest blockbuster, the remaining sales of specialist books may not provide enough revenue to keep the small outlet above breakeven sales volumes. New Entrants new entrant new entrant In sector distant near supplier supplier buyer close Suppliers buyer Buyers substitute substitute Substitutes Figure 1.

    Viewing the situation from the point of view of a hotel in a ski resort, it can be seen that in the high season rooms are expensive as demand is high low buyer power. However, out of season prices can be lower as customers can shop around high buyer power. In general, from the viewpoint of the brand manufacturer of consumer goods, the power of the buyers is twofold.

    If the supermarkets do not stock the product then the customers are not able to buy it. If the customers select another brand as better value for money, the situation is just as bad. To address these two influences, brand manufacturers use marketing strategies directed at both the retail channels push strategy and at consumers pull strategy. There is also the potential influence of suppliers on the organization. Again, this may be direct or indirect, further down the supply chain.

    Therefore, a company may be spoilt for choice for a possible supplier of personal computer hardware, but still have to purchase a Microsoft operating system. It is not by accident that Microsoft is one of the most profitable organizations in the world. New entrants are also a major potential source of competitive pressure. The air travel microenvironment has been rewritten by the entry of the aggressive, low-cost airlines. An organization may be integrated to minimize some of the competition forces.

    The brand manufacturer may own raw material suppliers and also own the retail outlets managing both supplier and buyer power. This type of vertical marketing system VMS can be achieved by other devices. In the contractual VMS, the same end is achieved not by ownership but by the framework of contractual 10 Unit 1 An overview of the marketing system relationships. The Body Shop developed with the manufacture of its products and many of the outlets working under a franchise system.

    Here, the outlets are owned by individuals who then operate them under a detailed franchise contract. Co-operatives form a strategy for smaller organizations to gain some competitive stature by working together, to achieve critical mass in areas such as buying power. Large buyers such as Wal-Mart achieve coordination and control an administered VMS with their tight supply chain management system and its set of contractual relationships.

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    In the past, the product could have been viewed as a confectionery product. Complete a Porter competition analysis for chewing gum from the standpoint of a major brand leader. With rapid changes, it is vital to analyse the impact of the event on the organization. Slow changes such as shifts in population demographics are also important, since if the organization is not alert, the change can become so advanced before its impact is detected that major problems arise, even survival may become questionable. For travel agencies, the opening of the channel tunnel was a major event, which could be clearly identified.

    However, failure to respond to either would impact on the profitability of the business and service to the customers. Attitudes change quickly; for example, 20 years ago one could smoke on a transatlantic airliner, but now in most countries, the social trend is to want smoking eliminated from public buildings. Social changes can also impact on media habits. A development in technology text messaging on mobile telephones can influence social changes in the population e. Population shifts can affect the nature of society.

    Both Europe and North America have become much more multicultural societies, reflecting the global movements of population in the 20th century. This affects the demand for products and services and this, in turn, generates demand for special communication channels. With broadband technology, TV can now not only be a medium of mass advertising around a soap but also become highly targeted for special social groups. Mass air travel and mass ownership of cars have altered society. In the 21st century, convergent information and computer technologies will transform society.

    The Internet was originally conceived as a technical solution to a military planning problem: how to maintain communications after a nuclear attack. With commercial and consumer access to broadband, this technology has moved far from the uses originally conceived for it. The marketer needs to interpret these developments creatively and imaginatively. For example, the impact of the Internet on book sales is not uniform. Some directories and reference books have, in effect, ceased to exist as people gain this type of reference information directly from the Internet.

    We may well be happy to buy the latest blockbuster online from Amazon. However, the book addict is looking for a shopping experience and specialist shops are adapting to this, hence leading to trends such as coffee shops within bookshops to provide the right atmosphere and give shoppers an offline experience, the real joy of book buying.

    Economics Economics is often seen as a dense and difficult mathematical subject. Certainly, governments employ many statisticians to collect and analyse the figures. However, it is important to realize that economics is at the core of marketing. The Retail Price Index is not a mathematical abstraction. It is an exciting reflection of how people live and how the pattern of spending changes. These reports are excellent sources of secondary data for marketers. In Table 1. Economics is much more marketing orientated than some sources would indicate.

    The value of a house is what people are prepared to pay. This is a consumer issue involving social attitudes and values. When people see that house prices are rising, they can cash in on this in late , the majority of mortgages were not new but remortgages to spend on consumer durables and that longed-for world cruise. With the wide availability of credit, it is as much how people feel as what they have actually got disposable income that drives the high street if they do not have it they can borrow it.

    We are now moving to a situation in many developed counties where 50 per cent of the population have experience of higher education. The educational level of consumers is expanding; this is further levered by pressure groups and the media feeding good information through a flood of channels from Sunday newspaper supplements on wine to pressure group websites. The adoption of thinner, flatter organizations has driven decision-making towards the front line.

    The implication is that many more skilled and knowledgeable staff are required within companies, for example, to keep up with the development in company IT and communications technologies. Clearly, a change of government when there are privatization or nationalization policies depending on their political colour has an impact on the macroenvironment. Organizations also need to consider not only the national political issues but also regional and local ones.

    Often the expansion plans of a supermarket are dependent on winning a lot of local political debates in order to gain the required planning permissions. Politics and politicians shape laws, and many organizations see the lobbying of politicians as a key part of their strategic plans. This is not restricted to commercial organizations; social marketing groups have become most active in this area, campaigning to extend smoking bans and to move the healthy living battle lines towards junk food.

    Law Law affects everything we do in marketing. Every aspect of the marketing mix has legal issues that need consideration. When researching, we may well have to take account of data protection legislation. Lack of knowledge is no defence. Therefore, it is vital that a marketer is aware of which aspects of a marketing plan may be affected by laws and seeks professional advice where uncertainty prevails.

    This is particularly important when implementing marketing plans developed for one country in another, where a different legal system prevails. A competition that is an instant hit in one country may simply be illegal elsewhere. Apart from legal constraints, there may be voluntary codes of conduct imposed by the industry. Thus, much of advertising regulation may not be imposed by government law but by industry codes of conduct enforced within the industry by the industry.

    Environment Environmental issues have become increasingly important as the stark truth confronts society that gross consumption of finite resources cannot continue forever and that, in the long term, sustainable production and distribution is the only way forward for society as a whole. Some of the issues may be rather technical: such as whether genetic engineering is beneficial to society and the economy largely the view in the USA or a technical dead end with too many risks possibly the majority view in Europe.

    For the practising marketer two of the aspects of Table 1. A marketer should be aware of the PLC in this context we do not imply the traditional PLC concept of introduction, growth, maturity and decline. In this analysis, the impact of the product over its total lifespan is considered: raw materials e. This is important, as it is not acceptable to abdicate responsibility. Therefore, a garden centre selling hardwood garden furniture needs to be assured it has been produced by sustainable and legal logging. A car manufacturer may no longer consider that its environmental responsibilities have ended with the sale of the car but build into the vehicle the ability to recycle and now provide facilities for this.

    Some of the points identified may not always be relevant to a given situation. Sometimes another factor which has not been indicated may be important. The table should be used as a checklist to prompt consideration of issues that may be relevant to the context. The only way to be able to conduct a good environmental analysis is through practice. The suggested activities and case study will give you a chance to apply the framework and develop your skills.

    Having explored the marketplace, the microenvironment and the macroenvironment, we need to analyse how effective and efficient the internal workings of the organization are to complete the analysis. In the UK, railways are facing major challenges. Customers are complaining about poor services. The government is reluctant to spend vast amounts of public money on developing the decaying infrastructure.

    The inflated costs of commuting by car fuel charges and congestion charging in London are increasing the number of people wanting to use the railways. Non-UK students should consider how this analysis would differ in their country. These developments also include ways to improve the customer experience e. Internet access, on-train entertainment, etc. This trend is likely to continue with increasing costs of fuel, making car travel expensive. There is a need for investment in infrastructure e. Financing this investment may be difficult Customers — possibly not a major issue for customers Staff — New technical systems may require staff training The balance of public—private involvement in the running costs and capital investments for rail development is a major issue The legal framework for the regulation and power of the regulator is a major issue for operators Environmental impact of major infrastructure developments is a key issue.

    Online price comparisons make it easy for customers to select lowest cost option New companies may enter the market when rail franchises become available for re-tender e. Virgin a few years ago With an increasing number of discrete rail and train operators, the allocation of capacity becomes an issue. This problem is parallel to landing slots at Heathrow Airport. When capacity is full, access to the network is a key issue New entrants Suppliers Activity 1.

    The internal environment The marketing-orientated organization is effective and offers goods and services to its customers, which have appropriate market valuation and are affordable. To be profitable, the organization needs to be efficient and to make and market products and services in the most economic way consistent with the required product quality and standard of service.

    The value chain provides the marketer with a tool to appraise the internal efficiency and effectiveness of the organization. However, just as a car will not go forever if it is not refuelled, 15 Unit 1 An overview of the marketing system longer-term support activities are required to ensure that the primary activities can continue successfully. As always with business models, intelligent creative interpretation is required to apply them. The end result of well-tuned, balanced, primary and support activities adds value for the mutual benefit of the organization and its customers.

    The model is explained below followed by an example demonstrating how to apply it to a given situation. Primary activities Inbound logistics These are the activities and facilities for receiving raw materials with associated storage and quality procedures for a manufacturing organization. For a service organization, this could be ensuring the right number and type of telephone lines, for example, for a telephone-sales insurance company.

    Operations For a manufacturing company, these are the processes used in the manufacture and testing of a product. Typical examples are the manufacture of consumer electronics. Where the product is very expensive and customized, batch assembly might be appropriate. For vast volumes of lower-cost products e. For a service such as insurance, it may be the complex calculations undertaken to evaluate the risk for a new customer and set the appropriate premium.

    Outbound logistics For the manufacturing organization, this is the packaging and the physical distribution of the product. This aspect of the value chain clearly links in with the marketing place physical distribution of the marketing mix. Different approaches may be appropriate for the same product under different outlet conditions. In a bar, soft drinks such as cola may be dispensed from a multi dispenser that uses mains water to dilute concentrated flavoured syrup.

    This is effective and appropriate as there is a relatively high volume of consumption and the product is consumed immediately on the premises.


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    • For home consumption, however, the dilute product is manufactured and packed in non-returnable bottles or cans. For a service such as insurance, the outbound logistics involves the efficient delivery of documentation to the client. Sales For the manufacturing company the cycle is customers order, the product is manufactured or taken out of stock, delivered to the clients and most importantly, payment is made. Slow payments damage cash flow, which is bad.

      Non-payment and bad debts are disastrous! The sales cycle involves a number of functions.