Relationship Marketing

Relationship MarketingRelationship marketing – management of building long-term mutually beneficial relationships with key partners that interacts in the market: customers, suppliers, distributors. Relationship marketing strategically aimed at building long-term relationships, the fact to keep customers and partners that it is worth much less than their purchase. Long-term relationships are a critical competitive factor.

Relationship marketing – the process of creating, maintaining and enhancing strong mutually beneficial relationships with customers. Exchange transactions

The purpose of relationship marketing – establishing long-term personal preference relations. As a “building material” used high level of service and reasonable prices. Relationship marketing is aimed at establishing closer economic, technical and social ties with partners that will improve the performance commercial activity in the market, thus reducing transaction costs and save resources enterprise.

Relationship marketing system includes:

  • company;
  • consumers;
  • employees, agents;
  • suppliers of products and raw materials;
  • distributors;
  • dealers;
  • marketing agencies;

And all those with whom the company has established mutually beneficial market relations.
When built relationship marketing, the company is no longer a one-on- one with a competitor. In the struggle for the buyer are included together with the manufacturing company the whole system of market interaction in general.

See Also: CRM Programm

Relationship marketingThe main elements of relationship marketing are:

  1. Creating real value proposition for partners;
  2. Formulation of benefits for the partners of the interaction;
  3. Finding the right (profitable with similar goals, attitudes, and so forth.) Partners;
  4. Loyalty partners;
Relationship – a philosophical category, but relationship marketing – a concrete action and measurable parameters. Relationship marketing has four dimensions:
  • Long-term liabilities (guarantees);
  • responsiveness;
  • reciprocity;
  • Trust;

Liabilities: two or more parties must guarantee to each other the development of long-term contracts, mutual interests must be the same.

Responsiveness: the ability to see the situation from the outside.

Reciprocity: any long-term relationship between the parties to suggest some of the concessions, the favor to others in exchange for the same location.

Trust: reflects the degree of confidence one side of honesty and integrity in the other; is ultimately a binding element in the relationship for years to come.

Relationship marketing strives to form a unique asset of the company, called the marketing system interaction. Relationship marketing was placed in a separate area of marketing science in the 70-80-ies of the last century

See Also: Relationship Marketing Definition

Capacity Planning

Capacity PlanningCRP (Capacity Requirements Planning) – capacity planning, CRP first evaluates the production plan, developed by the company, and then analyzes the current level of production capacity and compares both indicators to determine: whether such a plan is made to the current level of production capacity.

Requirements Planning capacities – it is a guarantee that the company can implement production expectations. If the company fails to take such a step before the start of production, it may suddenly be unable to produce the volume of production, which is required to perform the current capacity.

Capacity Planning – the process of determining the production capacity, the company needed to respond to changing demand for products. In the context of capacity planning, “design capacity” – the maximum amount of work that the company can do for a certain period of time, “actual power” – the maximum amount of work that the company can do for a certain period of time subject to the limitations: quality problems, delays in delivery , delivery of material.

The discrepancy between the capacity of the enterprise and consumer demand leads to inefficiency, either do not fully utilize the resources or customer dissatisfaction. The purpose of capacity planning is to minimize this discrepancy. Demand for power organization will vary depending on changes in output, such as increasing or decreasing the output of existing products or new products. Better utilization of existing capacity can be achieved by improvements in the overall efficiency of the equipment. Capacity can be increased through the introduction of new technologies, equipment and materials, increasing the number of workers or equipment, increasing the number of work shifts or to purchase additional means of production.

See Also: Life Work Planning

Capacity planning strategy:

The strategy of advancing - additional capacity in anticipation of increased demand. Timing strategy – aggressive strategy, which aims to poaching customers from competitors? A possible disadvantage of this strategy is that it often leads to excess inventory, costly and often unusable.

Compliance strategy - additional capacity in small amounts in response to changes in market demand. This strategy is more moderate.

The strategy of delay - refers to the additional power only after the organization operates at full capacity and above it due to increased demand. This strategy is more conservative. It reduces the risk of inefficient spending of materials, but can lead to the loss of potential customers.

Capacity Planning - long-term solution, which sets the overall level of resources of the enterprise. It extends far beyond the time horizon for the acquisition of resources. Decisions on the capacity to control the production cycle, the reaction of consumers, production costs and competitiveness of the enterprise, inadequate capacity planning can lead to a loss of consumer and business. Excessive power may deplete the resources of the company and keep investing in more profitable enterprises.

See Also: Planning Software

Savings and Loans institutions

 Savings and Loans Definition

Savings and LoansIn this section we look at the activities of savings and loans (or S&L) institutions – a group of financial intermediaries, consisting of savings and loans associations, savings banks and credit unions. As can be seen from the data in Table 8.2, savings and loans institutions in 1984, has assets equal to almost two thirds of the assets of commercial banks. It is clear that their role in the financial markets is very high.

The difference between savings and loans institutions and banks in the eighties began to disappear. The Law on the Control of monetary circulation, adopted in 1980, as well as a number of other laws and regulations has allowed savings and loans institutions to carry out many of the operations that were part of the exclusive competence of the commercial banks. Savings and loans institutions were given the right to issue commercial loans (to a limited extent) and open check deposits; recently, it was previously allowed only to commercial banks, and even makes up their distinctive feature. Currently, savings and loans institutions are subordinate to the Federal Reserve System in all that concerns check deposits; they were entitled to receive a range of services Fed, including to receive discounted loans.

From the point of view of the theory of money, banks and savings and loans institutions currently very little different from each other, In subsequent chapters, in which the presentation will be conducted mainly from a macroeconomic point of view, almost any paragraph of the word “bank” is fully justified can be replaced by the words “banks and savings and loans institutions.” At the same time, a savings and loans institution has its own unique history with their own features and characteristics, and this history is still reflected in their current financial operations. Despite the fact that some of the savings and loans institutions are virtually indistinguishable from commercial banks, among them there are those who continue successfully for they occupy non-bank market niches.

Savings and loans associations

Today, savings and loans associations constitute the largest sector of all savings and loans institutions, and have the highest score. In addition, these associations – the youngest of all the actors on the stage of savings and loans business, most associations were organized after the Second World War. Government has promoted their development in order to contribute to the expansion of housing construction. In 1984, the United States, there were about 3,400 such associations. As a result of mergers acquisitions n the number now stands at about half of what it was a quarter century ago. Total assets grew associations for the same period by almost 5 times, from which we can conclude that the average modern savings and loans associations in nominal terms is about 10 times greater than those that existed in the postwar period.

Savings and loans association, charter or receive from the federal

Government or from the state government, initially, most associations functioned on the basis of “mutual” type of ownership (mutual form of ownership), to provide a co-operative company owned by its depositors (Depositary). In recent years, many associations have switched to corporate ownership. This saves them from having to actively seek sources of growth and profit in the period of deregulation of the banking sector. Owner’s investors of mutual savings and loans associations have the opportunity to buy shares on favorable terms in cases when the association goes to corporate ownership.

The balance sheet of savings and loans associations Table 8.2 shows the combined balance sheet of savings and loans associations in the United States in 1986. The report clearly reflects the unique characteristic of these institutions: they concentrate their assets primarily and mainly on granting loans secured by real estate. In the passive part of the balance of the main article – to save capital (savings capital), Thus, the association traditionally savings deposits from households and then give out loans to depositors and their neighbors to buy a home.

The active side of the balance sheet indicates a strong specialization

On the issuance of mortgage loans, the passive part of the balance is

Mainly from capital-saving, because of savings and

Term deposits of small size. Both assets and liabilities of the current

3400 Associations somewhat more diversified than it was

In the past,

Today, savings and loans associations have the right to invest a portion of its assets in commercial, agricultural and consumer loans. As follows from the data shown in Table 8.2 Association hold their assets and securities backed by real estate, as well as individual mortgages Association, also can open checking deposits and traditional savings and term deposits. However, despite the expansion of opportunities available to the association as a result of the enactment of new laws regulating the banking sector, many savings and loans associations prefer to perform a traditional operation, which distinguishes them from traditional banks.

Problems faced by savings and loans associations. Development of associations was by no means smooth and quiet. As we

Has already had the opportunity to see the assets of banks and savings and loans associations, are less liquid than their liabilities because they “take a while, and lend long.” Association in its activities built it into an absolute rule, and their assets consist mainly of long-term loans to mortgage on which the interest rate is fixed. Same liabilities consist of deposits in savings books.

In order to somehow compensate for the risk inherent in such a business strategy, as well as to promote the construction of housing, public authorities, governing the activities of the banking sector, provide savings and loans associations a privilege. Until 1980 published by the Federal Reserve Guide «Q» permitted savings and loans institutions to pay the interest rate by 0.25 percentage points more than the commercial banks. This advantage was enough to maintain a stable cash flow.

However, at times the market rate of interest escalated markedly higher interest rates on savings deposits, which encouraged the owners of shares of savings and loans associations, which are at the same time and their investors to sell their shares for cash and invest the money in something else, causing extensive outflow. Low tide means even more intensified with the development of money market mutual funds, which offer significantly more liquid savings mechanism with a specific market income. Low tide means dramatically devastated mortgage funds, which led to the housing crisis, to withdraw the state of the economy.

In the late 70’s – early 80’s transition to a policy of deregulation has enabled savings and loans institutions to compete for attracting funds at high interest rates; this, of course, does not solve all the problems of these institutions. Despite the fact that they now had the opportunity to raise funds on favorable terms for the client, their portfolios were still burdened by long-term mortgages signed in the 50s, 60s and early 70s, bringing a very small percentage. And everyone knows that the financial intermediary, who is forced to pay its liabilities more than it receives in terms of assets, incurs losses. Its share capital is melting day by day. Between 1980 and 1985, 30% of the total savings and loans associations have disappeared as a result of bankruptcies or mergers. Even today, many savings and loans associations, like the legacy of those years have very poor technical equipment of inadequacy or equity (see. 5.1 “Monetary Policy in Action”).

Savings and loans associations, Today associations are doing their best to get back to normal life. They have a whole range of new market strategies. Some almost turned into commercial banks. Other associations have remained faithful to the traditional style of doing business. Nevertheless, in general strategy of association change, they stayed savings and loans in substance, but significantly upgraded.

Modern Savings and Loans Association defends himself, as it were, “on both sides” of the balance sheet. Implementing asset management, it diversifies its activities by investing in commercial and consumer loans in. Thus, it avoids the trap caused by the practice of excessive amount

Operation mortgages with a fixed interest rate, providing mortgages with adjustable-rate mortgages. When increasing the market value of the funds, then the incomes from these mortgages are also increasing. Some (but not all) of the mortgages made out of modern savings and loans associations at a fixed rate of interest, turn them into securities for subsequent sale in the secondary markets. As for the passive operations, all the smaller part of the portfolio of liabilities is composed of small savings deposits such as deposits in the savings bank. They replaced the now-accounts, as well as a variety of small time deposits. These deposits increase the costs of associations, but earn interest comparable to other market income, which excludes the possibility of a sudden outflow of funds. Such financial institutions at a reasonable management have good prospects as members of the financial community.

Mutual savings banks

Mutual savings banks have a much longer history than the savings and loans institutions. Many of them appeared in the early 19th century. Initially, they have emerged as a kind of refuge for the meager savings of workers. Even today, the initial minimum deposits in these banks are reflected in their names: “nickels Savings Bank of Lynn,” Massachusetts, or “ten-cent Savings Bank of Brooklyn”, New York.

These savings banks originally arose on the basis of “mutual” type of ownership (i.e., ownership, close to the cooperative – approx. Ed.), as well as savings and loans associations. Instead, directors and trustees selected undisputed founders, mutual savings banks operated as a rule, authoritative representatives of the community. Profits of these banks or investors paid or used to finance the bank’s growth. Partly because of a collectivist structural organization of the majority of savings banks was financial performance even in the thirties, when hundreds of commercial banks went bankrupt.

In recent years, many mutual savings banks as well as many savings and loans associations, switched to corporate ownership.

Table 8.3 pleasant consolidated balance sheet of all mutual savings oddity US In the active part of the balance is dominated by loans secured by real estate. Savings banks are always carried out fairly large investment in the purchase of securities. Unlike commercial banks, they are now, as always, a certain amount of funds invested in stocks and corporate bonds. In the passive part of the balance of payments is traditionally dominated by deposits in savings books, but now it also contains data on all other types of deposits. Of all the savings and loans institutions, mutual savings banks were the first to accept check deposits, amounting thus competition to commercial banks; however, checking deposits is still not an important category of deposits in savings banks.

As this balance sheet savings banks specialize in granting loans secured by real estate, they also give out and other types of loans and buy significant amount of securities, including shares and bonds of industrial corporations. Deposits, as in the case of savings and loans associations, consist mainly of savings deposits and time deposits of small size; are also invited to the opening of check deposits.

In the 70s and 80s savings associations experienced considerable difficulties, though most diversified assets of several rescued. Today they are and associations become more like conventional banks, while at the same time, their activities are more focused on the consumer than the activities of commercial banks.

Savings and Loans Credit Union

Credit unions, there are more than financial intermediaries of any other type. In 1984, more than 18,000 credit unions consisted of about 53 million members. However, most credit unions are very small in size and in general they own only 2% of the assets in the accounts of all financial intermediaries.

Credit unions are cooperative savings institutions, usually organized by trade unions, employers, or just a group of individuals united by some common material interests. All credit unions appeared in Europe in the second half of the last century; in the US, the first credit unions emerged in the early 20th century.

Assets of credit unions consist mainly of consumer and personal loans issued by members of the union. Today, credit unions were granted the right to issue loans secured by real estate, but most credit unions cannot really take advantage of this right due to lack of funds. Liabilities of credit unions consist of a special kind of shares (shares), equivalent to savings deposits. Credit unions, in addition, may open checking accounts settlement drafts (share-draft accounts).

A number of specific benefits that credit unions have contributed to their rapid growth after World War II. As a consumer co-operative, credit unions belong to the category of non-profit institutions and exempt from federal income tax. In addition, they had the right to pay for their shares average dividend of 7%, while commercial banks have the right to pay only 5.25%, and savings and loan institutions – only 5.5% (all these data refer to the period preceding the deregulation of interest rates).

When granting loans to their clients credit unions also have some advantages. Because their founders are often employers or trade unions, managers of credit unions are often aware of where they are going to take money borrowers to repay loans. Many customers, including many students believe these alliances are very suitable place for the loan. Individual employers deduct payments to repay the loan of the credit union directly from your paycheck customers of credit unions. In the same way, they can deduct and contributions made to the savings deposits held at a credit union.

See Also: Home Savings and Loan

What is a mortgage? Mortgage Definition

The Mortgage Definition – this is when you take money on credit secured by real estate: for example, buying an apartment in a loan secured by the apartment, buy a house or a cottage in the loan against the house, the cottage.Mortgage Definition

That is, the bank or other mortgage company gives you money (loan, credit) to buy, say, apartments, and in return, if you suddenly refuse to pay on the loan, and will take away your new apartment. Scary, Why then take out a mortgage, if not confident in their abilities?!

What is a mortgage – few scientific mortgage definition

You can offer two mortgage definitions:

  • Mortgage Definition- a mortgage;
  • Mortgage Definition- a loan obtained mortgages.

The term “mortgage” first appeared in Greece in the beginning of the VI. BC. e. So the Greeks called the responsibility of the borrower to the lender secured his land. At the boundary of land owned by the debtor, put a post with the inscription states that this land provides debt. This post and was called “mortgage”, translated from Greek – “backup”, “stand”.

Well a mortgage – a modern scientific explanation (for smart)

Mortgage loan – a loan secured by real estate. Typically, a mortgage is issued by the bank, but the creditor under an obligation secured by a mortgage, may be any other person legally capable. Mortgage borrower provides its obligation to repay the loan secured by real estate owned by his ownership or economic management. With the consent of the lessors, the subject mortgage may be right to lease the property.

What is a mortgage in the European Understanding?

In European, the mortgage terms and mortgage loan means a loan in the bank for the purchase of residential real estate. In English, there is a special word to convey the meaning of this type of loan – mortgage. That is, in this category do not get loans from other intended purpose, which can also be provided for mortgages, for example, loans to buy cars, home appliances, furniture, or other needs.

See More Also:

Mortgage Defined

Mortgage Terms and Definitions

Mortgage Lending Definitions

Cloud Computing Definition

What is Cloud ComputingIn Europe, many decision makers, be they leaders, managers, financial managers or human resources, always ask these questions: but What is Cloud Computing Basics? And what are the benefits of cloud computing? Let us hasten to respond easily and with great clarity!

Simple Cloud Computing Definition

cloud computing definition – (which is also called in Europe the cloud) provides services or computer applications online, accessible from anywhere, anytime, and any device (Smartphone, desktop PC, laptop and tablet). To be more specific, cloud computing allows sharing among cloud provider offers, infrastructure, an application solution or a platform to any user who requests via a simple website (also called portal) free -service. For a user, the network elements representing the. The National Institute of Standards and Technology’s Cloud Computing Definition

Positioning Cloud Computing

Cloud Computing offers are defined with respect to the distribution of roles is performed between the cloud service provider and enterprise. There are three models:

IaaS (Infrastructure as a Service)

In the IaaS model, only the hardware (servers, storage arrays, networks) that constitutes the infrastructure is hosted by a provider or provider. With IaaS, the company benefits from a shared infrastructure (for obvious reasons of material costs) and automated. With IaaS very flexible, the company can increase or decrease its IT resources according to its current and future needs.

PaaS (Platform as a Service)

PaaS is placed on the upper level of the IaaS offering businesses an environment allowing them to deploy their developments. PaaS and provides programming languages, databases and various services to run their applications. In addition, it fully automates the deployment (updates, patches, etc.) and scalability.

SaaS (Software as a Service)

SaaS provides applications to the user in the form of a loan service employment which is maintenance: updates are regularly made by the publisher. It is therefore perceived rightly by users, applications as a consumer model.

The benefits of a Cloud Computing

Simple use

Cloud computing simplifies usage by allowing overcoming the constraints of traditional computer tools (installation and updating of software, storage, data portability …). Cloud computing also provides more elasticity and agility because it allows faster access to IT resources (server, storage or bandwidth) via a simple web portal and thus without investing in additional hardware. The availability is immediate. In addition, the user has no infrastructure to manage is to cloud provider to maintain server hardware, storage, networks. The company can therefore focus primarily on its business, its business and its expertise.

Reduced costs

Why Cloud Computing is it economically attractive? It allows you to start a professional activity without having to invest in an expensive IT infrastructure internally. And for companies that already have their own infrastructure but have additional needs such as IT to manage peaks of activity, cloud computing is the most economical way to respond. Indeed, the company adjusts, its infrastructure needs and by increasing or decreasing the available resources. By subscribing to cloud computing offers, the user only pays for what he consumes. Finally, the user does not bear the costs of maintenance and renewal of equipment. With cloud computing, the user company significantly reduced its IT investments (costs Capex) and optimizes operating costs and operating (OPEX).

High service availability

Contrary to popular belief, cloud computing will ensure access and availability of services, it is important today because companies have employees increasingly nomadic. Employees therefore need access to all their applications and their data without downtime. Cloud Computing Contracts are very important for clients because they allow having precise answers on the guarantees offered by suppliers on SLA (service continuity levels). The availability of service provided by a cloud service provider should be between 98 and 99.99% including downtime server for maintenance or for unexpected interruptions.

Security: Vendor guarantees

Cloud computing brings more security. And because lack of time, expertise and budget, companies are less and less able to fully ensure the security of their own information system. However, cloud computing security guarantees this with better safety features goods and services (data replication, disaster recovery plan, cyber defense, etc.) with updates and regular audits. On the other hand, it is important to favor a “Europe Cloud Computing.” Indeed, it is reassuring to know that the company’s data is located in Europe and thus benefit from French legislation on data protection. The data storage location is a recurring issue in user companies, they are very wary of the Patriot Act. Indeed, recall that US law allows government agencies to have almost unlimited access to information belonging to companies. Finally, do not panic, contract clauses providing for reversibility with a refund of the full data for businesses are now taken into account by suppliers.

See AlsoSimple Definition of Cloud Computing

What is equity?

But what is equity? Often used this concept (or that of equal opportunities, which amounts to about the same) instead of that of equality. Yet this is not exactly the same.

What is equityEquity is the idea of equality “right” (see our article “Does there exist just inequalities?  “). Equality for short indeed poses a problem in a society that is not an affluent society. The idea that individual merit, effort or work should be rewarded is widely accepted. No one claims the same wages for all.

In short, what is right is that everyone has the same “opportunity” in life, not everyone arrives at the same result.

Like Monsieur Jordan made prose without knowing it, we accept the idea of ​​fairness without much question at all. Yet in practice, this equity is not easy to achieve:

  • Everyone needs to be placed on the same starting line. If some leave with the advance, the game is not fair.
  • During “effort”, it is also that everyone has the same advantages. The competition is not to be biased.
  • We can accept the principle of equity, but then we are not advanced in terms of the extent of inequality “just”. How many years of minimum wage a CEO can win it before it becomes “unfair”, ten years, a century, a millennium? Is it “fair” that a person who helps the elderly all day button ten times less than a corporate executive?
  • Individual effort is rarely measurable: Most payments reward the efforts of a community (a work team, group, etc.).

Equity, as says the sociologist Dubet is a “necessary fiction.” Let us explain: we need it certainly, for the effort, merit, work, are better criteria than the birth or caste environment.

But it is indeed a fiction: in practice, inequalities result from a compromise of a power struggle between members of the same society. Highlighting excessively the notion of “fairness” is sometimes used to hide a greater tolerance for short inequalities…

See More Article:

What Does Equity Mean

Equity Define

Mortgage: everything about home savings and loans

home savings and loansThe system of the Home Savings, established in 1965, aims to encourage private savings while offering home loans through the Plan Epergne Ligament (PEL) or the Home Savings Account (CEL).


The Home Savings consists of two phases:

  • A savings phase:your model is powered by regular payments. The accumulated capital is paid by a fixed rate and enhanced by a premium of State.
  • A loan phaseat the end of the savings phase (at least 4 years for an ELP); it is possible to make a loan under the conditions defined at the beginning of the savings phase. The loan amount is “proportionate” to your savings effort. It is determined by the total interest received during the savings phase. Currently, the ELP rate of 4.20% excluding insurance.

Advantages and disadvantages

The advantages:

  • the loanswere offered, in principle, the interest rates and handling fees are free,
  • interest income is tax-free, excluding social security contributions,
  • Since 1 March 2011, the ELP compensation rate (excluding premiums of the state) is 2.50%.

The cons:

  • The loan amount depends on the interests“acquired” during the savings phase and thus the cumulative savings. In sum, plus interest income, the greater the loan is therefore
  • Capital is blocked throughout the savings period. If you “break” your model before the end of this phase, you lose your right to the premium and loan.

The transactions concerned

The loan Home Savings can Europe:

  • the purchase of land, if the loan is also funding the construction, within the cost of construction alone,
  • the buildingof housing,
  • the acquisitionof a new or old housing,
  • The workexpansion or improvement.
This loan can be used to fund the acquisition or construction of a principal residence. Until the reform of 1 March 2011, the loan could also be used for the purchase of a  second home or a housing for a be rented.

See Also: Farm and Home Loans

Assignment of borrowing rights

In addition to your own rights to loans, a person of your family (parents, children, brother, sister, uncle, aunt, niece, nephew) and family of your spouse you can assign the borrowing rights of his or PEL the CEL. You can increase your borrowing capacity, but cannot exceed the ceilings.

Special features of the ELP

  • Anyone, even minor, may open a CEL or PEL in the bank of their choice, provided he does not already have an open another facility.
  • The rate of ELP savings compensation is set at 2.50%. A public decree dated February 5, 2011 set a floor rate of 2.50%.
  • The ceiling of the bonus of State is still set at € 1,525for housing considered ecological or classified between A and D included in energy performance. However, it is lowered to € 1,000 for non-ecological housing or classified E and F.
  • Since 1 March 2011, the state premium is granted only for loans exceeding € 5,000.
  • ELP, you must pay 225 € to its opening and at least € 540 / year for 4 years. The maximum deposit is € 61,200.
  • The rate of home loanof ELP 20%.
  • Loan amounts obtained through an ELP are set according to the amount of interest earned and duration of the subscribed loan.
  • ELP and CEL, the loan can only be granted for the primary residence. Its duration varies between 2 and 15 years. The maximum amount of an ELP loan amounts to € 92,000.

New tax provisions since 2006

For ELP age of 10, social security payments are due at the close of all of the interest earned. For those over 10 years, payroll taxes are punctured every year since the Finance Act 2006. The rate is 12.1% since 1 January 2009. If the ELP has more than 12 years, the interests of the year may, in addition to social security contributions. The ELP owner may choose either the fixed rate of 18%, or the income tax on the progressive scale.


As the Plan Epergne Ligament, the CEL consists of two phases:

  • A savings phase:CEL is powered by your regular payments. The accumulated capital is paid by a fixed rate (0.75%) and enhanced by a premium of State.
  • A loan phaseat the end of the savings phase (at least 18 months); it is possible to make a loan under the conditions defined at the beginning of the savings phase. The loan amount is “proportionate” to your savings effort. It is set by the total interest received during the savings phase. Currently, CEL rate of 2.25% excluding insurance.

Advantages vs disadvantage

The advantages:

  • proposed loans have, in principle, the interest ratesand handling fees are free,
  • interest income is tax-free, excluding social security contributions,
  • Savings is paid, without any risk.

The cons:

  • The loan amount depends on the interests “acquired” during the savings phase and thus the cumulative savings. In sum, plus interest income, the greater the loan is therefore
  • Capital is blocked throughout the savings period. If you “break” your CEL before the end of this phase, you lose your right to the premium and loan.

The transactions concerned

The home savings loan used to finance:

  • the purchase or construction of a residencenew or old,
  • The purchase or construction of a second home

The accommodation must be the principal residence of the borrower or any of its parents is the principal residence of the tenant. In the case of a second home, the borrower must use personal or family basis. This can also be occasional hire and of limited duration.

See Also: Home Loan and Investment Bank


Warning: it is forbidden to combine the funding of a primary and secondary residence with a loan savings plans. It was not until the first loan is expired for the second.

Savings housing may also Europe:

  • buying a car or a parking space, close to the main residence, property of the purchaser;
  • buying a building plot, if there is simultaneous to finance the construction costs; the value of the land is considered only to the cost of construction;
  • buying REITs;
  • purchase units timeshare or holiday residence;
  • The purchase or construction of a local commercial or professional use since it also includes the main residence of the beneficiary. A decree of the State Council will set the rules for the application of this measure.

Assignment of borrowing rights

The disposal of borrowing rights is for the holder of a CEL, to use the interest acquired by another person from another account to increase its own rights to loan. In this case the transferee also benefits from the savings premium in respect of the loans transferred rights. It is possible for you to get ready for rights of your spouse, family, or someone in your family: parents, children, brother, sister, uncle, aunt, niece or nephew. You can increase your borrowing capacity, without being able to exceed the ceilings.

Good to know: you can not have rights derived from an open housing savings plan by another person.

Distinctive CEL

  • Any person, including a minor, can open a CEL on condition of not having already opened another, other.
  • The rate of ELP savings compensation is set at 0.75%.
  • The ceiling of the state premium is set at € 1,144 and depends on the year of account opening.
  • ELP, you must pay 300 € to its opening and at least 75 € / year during the savings phase. The maximum amount of deposit is 15 300 €.
  • The rate of home loan ELP is 2.25%.
  • The loan obtained through a CEL is set based on the amount of interest income and the duration of the subscribed loan.
  • The duration of a CEL varies between 2 and 15 years. The maximum amount of a loan through a CEL amounted to € 23,000.

Tax provisions

For CEL, interest and premium is tax exempt but remain subject to social contributions. They are fixed to 12.1% from 1 January 2009.

See Also: Home Loans and Grants

Integrated marketing communications (IMC)

Integrated marketing communications (IMC)Now, after we have analyzed the main means of marketing communications, we turn to the problem of the optimal combination of these means in order to increase the effectiveness of marketing activities in general. It is important to take into account the effect of the main factors that determine the right choice and optimal combination.

Separate means QMS, as noted above, with varying efficiency to meet the challenges by diverse communication tasks.

The use of various means of communication mixture depends on the specific market situation, the characteristics of the firm and its marketing objectives.

From this perspective, the formation of the structure of the QMS is a complex creative process that requires quite a large amount of background information, and often – known compromises.

We put aside the consideration of complex, synthetic means QMS (branding, sponsorship, exhibition activities, MKMP) – firstly, the funds can be considered as a set of methods, measures and tools, plant and equipment of the QMS, and secondly, in practice it is virtually impossible to use Only one communication cell mixture. Only their combination can bring sufficient efficiency and communication across the marketing policy, to achieve the so-called synergy. In many cases, the separate use of the QMS is simply impossible (for example, carrying out promotional campaigns ineffective without prior advertising, corporate identity elements – an integral part of advertising, PR-actions, sponsoring.

In general, the key to the correct solution of the problem of building an effective marketing communications complex lies in a systematic, comprehensive perception of the whole market of the company. A clear understanding of what advertising (and other communications) – one of the elements of marketing, Only the system marketing approach, awareness of the priority needs of the consumer will form a truly effective set of marketing communications.

Fundamentally important step in solving the problem in question has become by the American marketer D. Schulz concept of integrated marketing communications (IMC).

According to the American Association of Advertising Agencies Integrated Marketing Communications – is the concept of marketing communications planning, emanating from the need to assess the strategic importance of their individual areas (advertising, sales promotion, public relations, and others.) And the search for the optimal combination of software clarity, consistency and maximize the impact of communication programs through the consistent integration of all individual complaints.

See Also: Integrated Communication

As you can see, the concept of Integrated Marketing Communications involves solving two interrelated issues:

  1. creation of a system of communication messages using various means of QMS, which would not contradict each other, which would coordinate with each other to form a single favorable image of the communicator;
  2. the main purpose of the Integrated marketing communications is to maximize the effectiveness of marketing communications by searching the optimal combination of basic and synthetic means QMS, as well as some techniques and tools for each of these funds.

Three major questions (and three main principles) Integrated Marketing Communications strategy, according to John. L. Rossiter and Percy are as follows:

  1. Integration of choice: how best to combine the means of advertising and sales promotion for the purposes of communication?
  2. Integration of positioning: how each of the types of advertising communications and associated with the promotion of advertising appeal may be agreed with the positioning of the brand in terms of synergies?
  3. Integration of the schedule: at what points of marketing channels reach PC buyers and may increase the speed of decision-making in favor of our brand?

Thus, we can conclude that the problem of formation of the integrated marketing communications go far beyond the QMS, directly affecting the other elements of the marketing mix.

All the many factors that determine the optimal structure of marketing communications can be grouped into the following main groups:

  1. Goals and objectives, and strategies used by it.
  2. Type of product or market.
  3. State consumer audience.
  4. Stage of the life cycle of the advertised goods.
  5. Traditions found in the communication policy of the company and its major competitors.

See Also: Integrated Marketing Management

Let us consider each of these groups of factors in more detail.

In most of the company QMS structure depends on the definition of its senior management objectives relating to sales volume and its dynamics; enter new markets; formation or change the existing image of the company; positioning or not positioning manufactured goods, and so on. d. To achieve these goals, developing a set of long-term, large-scale events, taking the form of a unified marketing strategy firm. Or that marketing strategy can assume different roles QMS

Here is one of many possible examples. Thus, the strategy of pushing the product requires greater involvement of the sales program salesmen (the rate on personal selling), promotion of trade intermediaries (sales promotion: discounts, credits, bonus-pushers, and so on. P.) And his sales staff. Thus, the manufacturer of “pushing” product reseller, who – retail, the latter – the consumer, Strategy to attract consumers to the main direction of communication relationship of the manufacturer with the end user, The structure of the QMS will now dominate advertising in the media, working to a mass audience; sales promotion tools that motivate consumers; means of public relations.

The main types of clientelistic market are: the market of individual consumers, the market for industrial consumers, market resellers, market state and municipal authorities, the market of foreign consumers. Using a variety of different means of QMS efficiency at each of these types of markets, Studies have shown that in the market of individual consumers (consumer goods) the importance of the communications mix elements decreases in the following order: advertising (the highest level), sales promotion, personal selling, pub-face relations.

Ranking on the same principle in the market of industrial consumers (industrial goods) as follows:

Personal selling (the highest level), sales promotion, advertising, public relations.

The main types of state of the target consumer audience, arranged in order of increasing its willingness to purchase certain goods (preference for brands) are combined so-called “pyramid advertising.”

In many respects similar to the effect of the previous factor dependence of the level of efficiency of advertising media on the stage of product life cycle. As you know, since its product development goes through the following stages: product development, market launch, growth, maturity, withdrawal from the market.

It is obvious that at the stages of product development and launch to market a priority communication policy of the manufacturer will be to build product awareness. From this perspective, more effective methods of public relations, advertising and sales promotion. At the stage of growth is somewhat reduced role of sales promotion. At the stage of maturity, when sales of goods reached its maximum volume, more appropriate to use reminder advertising. By reducing the volume of sales of goods, which means that the offensive phases of decline and withdrawal from the market, the focus is on methods of sales promotion. This is mainly to provide price discounts.

An example of the impact on the structure of the QMS traditions prevailing in the communication activities of the company could build on a firm Avon. As you know, the majority of products sold by the company selling its personal sales agents – “Miss Avon” The main competitor Avon in the US market – the company Revlon – sell its products through resellers and proprietary network of specialized shops. Important role in shaping its communications belongs to advertising in the media (especially in women’s magazines and catalogs), and the outer screen advertising.

The process of introducing the concept of Integrated Marketing Communications into the practices of firms is constrained by the following factors:

  • lack of understanding of the value of Integrated marketing communications;
  • contradictions between the various functional units communicator services;
  • Paucity of advertising and other agencies that is able to develop effective Integrated marketing communications due to lack of appropriate staff competence, pursuing their mercantile interests.

See Also: Marketing Communications Manager

At the same time, according to research in the early 90s. More than 60% of executives of American companies considered the most important factor shaping the Integrated Marketing Communications marketing strategy.

Despite the difficulties that stand in the way of introducing the concept of Integrated marketing communications into the practices of firms, it should be noted that it is becoming more widely accepted.

Having considered the place of advertising in the marketing of the company, and in particular, in a complex of marketing communications, we will analyze in more detail features of development of advertising appeals and challenges the organization of promotional activities on your device.

See Also: Integrated Marketing Management