Tag: Principles of Marketing

A marketing channel consists of the people, organizations, and activities necessary to transfer the ownership of goods from the point of production to the point of consumption. It is the way products get to the end-user, the consumer; and is also known as a distribution channel. A marketing channel is a useful tool for management, and is crucial to creating an effective and well-planned marketing strategy.

Another less known form of the marketing channel is the Dual Distribution channel. This channel is a less traditional form that allows the manufacturer or wholesaler to reach the end-user by using more than one distribution channel. The producer can simultaneously reach the consumer through a direct market, such as a website, or sell to another company or retailer that will reach the consumer through another channel, i.e., a store. An example of this type of channel would be franchising.

Marketing channels are the ways that goods and services are made available for use by the consumers. All goods go through channels of distribution, and marketing depends on the way goods are distributed. The route that the product takes on its way from production to the consumer is important because a marketer must decide which route or channel is best for his particular product.

Stern & El-Ansary define marketing channels as; “Sets of independent organisations involved in the process of making a product or service available for use or consumption.”

Roles of marketing channel in marketing strategies

• Links producers to buyers.
• Influences the firm’s pricing strategy.
• Affecting product strategy through branding, policies, willingness to stock.
• Customizes profits, install, maintain, offer credit, etc.

Function:

• Promotion: Persuasive communication is disseminated through the channels to the customers. The channels also often help in the design of these communication messages.
• Information: The marketing channels perform the task of collecting and disseminating of marketing information about customers, competitors as well as potential customers and other market forces.
• Negotiation: The channel members are the ones who negotiate with other channel members and customers to facilitate the transfer of ownership.
• Risk taking: The channel members assume the risk for carrying out the channel work.
• Physical possession: The channel members also take the responsibility of storage of goods during the successive stages to the final consumers.
• Financing: The marketing channels work towards the acquisition and allocation of funds required to finance inventories at different levels of the marketing channels.
• Ordering: This function is with regards to the communication of channel members regarding the intention to purchase.
• Title: The channel members facilitate actual transfer of ownership from one organisation or person to the other.
• Payment: The channel members also assume responsibility for the buyers honouring their payments to the sellers through banks and other financial instruments.

Reasons:

• Many organisations lack the resources (financial as well as other resources), to carry out direct marketing and reach out to their many customers without the help of any intermediary. For this purpose, marketing channels are used to take the products from the manufacturing organisations to the final consumers.
• For many smaller products, direct marketing may not be feasible considering that exclusive retail outlets for small products may not work, and having to stock other products might end up in having just another grocery or food outlet which would not serve the purpose. Setting up exclusive retail stores for marketing of small products like chocolates would not be a feasible idea.
• Given the lower return on investments in the retail business, organisations would be better off investing their money in their main business rather than taking up retailing or other channel functions.

As such, the use of intermediaries is mainly to make the goods available and accessible to target markets. Intermediaries, because of their specialisation, experience, and scale of operations, are able to achieve more than what the organisation can in terms of reaching to the target markets.

A value network is a set of connections between organizations and/or individuals interacting with each other to benefit the entire group. A value network allows members to buy and sell products as well as share information. These networks can be visualized with a simple mapping tool showing nodes (members) and connectors (relationships).

A network which creates partnership and value in purchase, production and selling of products is referred to as value network. Value network looks at the whole supply chain system players as partners rather than customers. The purpose of value network is to increase productivity, save cost and increase revenue. Companies are willing to take the procurement process on online for accuracy and speed. Companies exactly know each partner’s role in influencing or disrupting normal operations.

Companies have developed distribution channel and network through which it supplies final product to customers. This distribution channel and network are referred to as the marketing channel. Companies invest time and money in a well functioning marketing channel. The marketing channels are an integral part of marketing and promotional activity of the company.

Value configuration

Fjeldstad and Stabell declare a value network as one of three ways by which an organisation generates value. The others are the value shop and value chain.

Their value networks consist of these components:

• Customers
• A service that enables interaction among them
• An organization to provide the service.
• Contracts that enable access to the service

Tangible value

All exchanges of goods, services or revenue, including all transactions involving contracts, invoices, return receipt of orders, request for proposals, confirmations and payment are considered to be tangible value. Products or services that generate revenue or are expected as part of a service are also included in the tangible value flow of goods, services, and revenue. In government agencies these would be mandated activities. In civil society organizations these would be formal commitments to provide resources or services.

Intangible value

Two primary subcategories are included in intangible value: knowledge and benefits. Intangible knowledge exchanges include strategic information, planning knowledge, process knowledge, technical know-how, collaborative design and policy development; which support the product and service tangible value network. Intangible benefits are also considered favors that can be offered from one person to another. Examples include offering political or emotional support to someone. Another example of intangible value is when a research organization asks someone to volunteer their time and expertise to a project in exchange for the intangible benefit of prestige by affiliation.

All biological organisms, including humans, function in a self-organizing mode internally and externally. That is, the elements in our bodies down to individual cells and DNA molecules work together in order to sustain us. However, there is no central “boss” to control this dynamic activity. Our relationships with other individuals also progress through the same circular free flowing process as we search for outcomes that are best for our well-being. Under the right conditions these social exchanges can be extraordinarily altruistic. Conversely, they can also be quite self-centered and even violent. It all depends on the context of the immediate environment and the people involved.

Chatbot marketing is a way to promote products and services using a chatbot a computer application that carries conversations with users by a predetermined scenario or with the help of AI. Brands create this virtual assistant with a chatbot builder, and connect it with messaging apps like Facebook Messenger, WhatsApp, Snapchat, Telegram, etc., or add to their website.

Functions:

• Enabling making orders. If you run an eCommerce store, selling clothes, food, accessories, etc., a chatbot is a lifesaver since it allows taking orders directly in the chat. In case a user is yet not ready to make a purchase, a chatbot can at least tighten the search before the customer contacts a real person. For an organic food store, it would be helpful to find out which vegetables person needs and only then address them to the sales rep.
• Delivering customer support. A chatbot is a great assistant for answering FAQs. Besides, working 24/7, the chatbot helps solve the problem of different time zones. For a financial consultation agency, located in the US with the better part of its customer base in India, a chatbot would help to avoid hiring customer support on a double-shift basis.
• Scheduling meetings. A chatbot may be extremely helpful for one-person brands in any industry hair salons, fitness trainers, DJ services. You can connect it to Google Calendar, and your virtual assistant will take care of appointments while you give a haircut, move your body, or spin vinyl.
• Tracking orders. “It said my package would come in three days, but I never received it.” chatbots liberate you from that hassle that always appears with selling goods. A sophisticated chatbot allows tracking packages, while the simpler one can inform a person about the shipping and delivery automatically. Wouldn’t it be great to ask for a review a couple of weeks later and offer another product?
• Sharing news and updates. When people start communication with your brand, you can suggest that you will be providing them with the latest news: new collections of clothes, fashion shows, etc. A chatbot can help you stay in touch with your audience, keeping people engaged.

Benefits:

• Help to segment traffic. Chatbots diversify your audience by leading the conversation in different directions. For example, a person showing interest in pricing is likely to be a warm lead, so the chatbot may suggest making an order right in the chat. In case people need more information, the chatbot should give all the necessary details about your product or service.
• Save time and money. A chatbot allows your business to serve more clients with fewer resources and efforts. Unlike human beings, the chatbot needs no salary and works 24/7, meaning that creating a chatbot is a one-time investment.
• Provide a quick response. An instant replay enables users to solve their problems fast and results in a positive user experience for your clients. If performed correctly, the chatbot will improve your brand image and grow the feeling of trust associated with your company.
• Fits any business. You can design a chatbot to cover various processes, regardless of whether you own a small family business or a vast enterprise. It is a universal marketing channel, and SendPulse enables creating chatbots for Facebook Messenger and Telegram.
• Speeds up the paying process. You can utilize a chatbot for completing orders without making users move to a website. Making orders and paying right in the chat takes less time and effort from your customers to buy from you. For that, you need to connect PayPal or other money transfer services to your chatbot. How beneficial for eCommerce stores.
• Boosts engagement. The conversation is held in messaging apps like Messenger, WhatsApp, WeChat, etc., with an enormous audience around 5 billion users, according to MessengerPeople. This means that you will have a chance to communicate with a highly targeted audience on a global scale.
• Gives data for analysis. All data collected with the help of your chatbot gives you insights on your audience’s needs and preferences. With this data, you can adapt your chatbot marketing strategy as well as overall marketing to achieve better financial and communication results.
• Help in lead nurturing. With chatbot marketing, you can smoothly and rapidly move prospects down the sales funnel. If you sell shoes, you can show different models, colors, characteristics anything to warm leads and help them decide that your services worth their money.

Live streaming for marketers is no longer a novelty live video is changing the way brands interact with their audiences. A live video strategy engages viewers in immediate and authentic ways that other social media formats cannot.

Scope:

Rise of Smartphones: Secondly, we all know more people with a smartphone than people without, right? With smartphones so common these days, people can watch live streams whether they’re commuting to work, on their lunch break, waiting for an appointment, or even just on the sofa at home.

Huge Audience: Firstly, with all the different live streaming ideas, brands have an opportunity to reach out to people that haven’t yet come across their name. Rather than hitting a set list of people with email marketing, live streaming can attract people you didn’t even know could be interested.

New Opportunities: Thirdly, as we’re going to see later, there are great ways to interact with an audience regardless of your niche. Don’t assume that live streaming isn’t an option for your industry or audience; you might be surprised.

Advantage:

Instant Playback

In the early days of the Internet, if a webmaster wanted to add videos to his website, he had to post it as a link. Web site visitors then had to download the file completely before playing it back. This all changed with streaming video. Content is served in a way that allows files to play almost immediately after the file begins to download. Special streaming media servers also allow viewers to jump forward and backward through a video file.

Piracy Protection

Allowing your Web site visitors to download video files especially copyrighted material makes it much easier for your content to be pirated. Your downloaded video files could be shared with others through file-sharing networks and other methods. Streaming video technology is harder to copy and prevents users from saving a copy to their computer if you don’t want them to. While it’s not perfect, it may give you better peace of mind about distributing your content online.

Disadvantages:

Bandwidth Use

Streaming videos require sufficient bandwidth to play, especially at higher quality. For example, Netflix’s streaming service requires a Internet speed of at least 5 Mbps for HD quality, 7 Mbps for “Super HD” quality, and 12 Mbps for 3D streaming. While these speeds are generally available with most cable/DSL connections, those with slower connections may experience issues with playback and/or poor quality, since some services will reduce video quality in order to ensure uninterrupted playback.

Online Only

While the advantage of giving your users instant playback and yourself protection from content pirates might be attractive, these can also work against you as streaming video works only when there is an available Internet connection. If the viewer’s Internet connection is cut during playback or they need to watch your content offline, they will be out of luck. In these cases consider offering the user an option to both stream and download the video file, and using copy protection to prevent piracy.

Multi-level marketing (MLM), also called network marketing or pyramid selling, is a controversial marketing strategy for the sale of products or services where the revenue of the MLM company is derived from a non-salaried workforce selling the company’s products or services, while the earnings of the participants are derived from a pyramid-shaped or binary compensation commission system. An MLM strategy may be an illegal pyramid scheme.

Network marketing is a business model that depends on person-to-person sales by independent representatives, often working from home. A network marketing business may require you to build a network of business partners or salespeople to assist with lead generation and closing sales.

There are many reputable network marketing operations, but some have been denounced as pyramid schemes. The latter may focus less on sales to consumers than on recruitment of salespeople who may be required to pay upfront for expensive starter kits.

In multi-level marketing, the compensation plan usually pays out to participants from two potential revenue streams. The first is based on a sales commission from directly selling the product or service; the second is paid out from commissions based upon the wholesale purchases made by other sellers whom the participant has recruited to also sell product. In the organizational hierarchy of MLM companies, recruited participants (as well as those whom the recruit recruits) are referred to as one’s downline distributors.

MLM salespeople are, therefore, expected to sell products directly to end-user retail consumers by means of relationship referrals and word of mouth marketing, but more importantly they are incentivized to recruit others to join the company’s distribution chain as fellow salespeople so that these can become downline distributors. According to a report that studied the business models of 350 MLM companies in the United States, published on the Federal Trade Commission’s website, at least 99% of people who join MLM companies lose money. Nonetheless, MLM companies function because downline participants are encouraged to hold onto the belief that they can achieve large returns, while the statistical improbability of this is de-emphasized. MLM companies have been made illegal or otherwise strictly regulated in some jurisdictions as merely variations of the traditional pyramid scheme.

Advantages and Disadvantages of Network Marketing

There is some stigma attached to the networking marketing business, especially those with multiple tiers, which can be characterized as pyramid schemes that is, the salespeople in the top tier can make impressive amounts of money on commissions from the tiers below them. The people on the lower tiers will earn much less. The company makes money by selling expensive starter kits to new recruits.

The appeal of network marketing is that an individual with a lot of energy and good sales skills can create a profitable business with a modest investment.

Advantages of Network Marketing

• Due to a reliable and robust distribution network that engages customers directly, companies do not need to rely on advertising to market their goods.
• There are absolutely no limits on the size of the network marketing structure. This happens because companies can tie-up with innumerable people to become distributors. Further, distributors can further c0-ordinate with other sub-distributors to expand the company’s sales.
• The structure of distributors also reduces the profit margins of retailers that companies consider as an expense. These margins get passed on to distributors and the companies do not have to bear their burden.
• Finally, this structure allows distributors to earn an unlimited income from their dealings with the company. They can earn an income from their own profits as well as commissions.
• Another advantage is that companies do not need to spend a lot of money on storage and distribution. This is because distributors end up bearing these expenses themselves.

Disadvantages of Network Marketing

• In this form of business, it is basically the distributors who facilitate delivery of goods to final customers. Manufacturers have a limited role in this regard. As a result, they may find it difficult to control distribution and sales.
• Since manufacturers depend on distributors to determine consumer demand, it can be difficult to predict production targets. They may end up under or over-stocking their products.

Marketing analytics is the practice of managing and studying metrics data in order to determine the ROI of marketing efforts like calls-to-action (CTAs), blog posts, channel performance, and thought leadership pieces, and to identify opportunities for improvement. By tracking and reporting on business performance data, diagnostic metrics, and leading indicator metrics, marketers will be able to provide answers to the analytics questions that are most vital to their stakeholders.

Regardless of business size, marketing analytics can provide invaluable data that can help drive growth. Enterprise marketers at first may find the process too complicated, while small and mid-sized business (SMB) marketers assume a company of their size won’t benefit from implementing metrics, but neither perception is true. As long as marketing analytics is carefully curated and properly implemented, the data collected can help a business of any size grow.

With proper marketing metrics and analytics in place, marketers can better understand big-picture marketing trends, determine which programs worked and why, monitor trends over time, thoroughly understand the ROI of each program, and forecast future results. With 78% of B2B marketing executives currently measuring the impact of their marketing programs on revenue, it’s clear that more businesses are getting on board with marketing analytics, even if they were a bit hesitant before.

Importance of Marketing Analytics

Marketing analytics, Internet (or Web) marketing analytics in particular, allow you to monitor campaigns and their respective outcomes, enabling you to spend each dollar as effectively as possible.

The importance of marketing analyics is obvious: if something costs more than it returns, it’s not a good long-term business strategy. In a 2008 study, the Lenskold Group found that “companies making improvements in their measurement and ROI capabilities were more likely to report outgrowing competitors and a higher level of effectiveness and efficiency in their marketing.” Simply put: Knowledge is power.

In search marketing in particular, one of the most powerful marketing performance metrics comes in the form of keywords. Keywords tell you exactly what is on the mind of your current and potential customers. In fact, the most valuable long-term benefit of engaging in paid and natural search marketing isn’t incremental traffic to your website, it’s the keyword data contained within each click which can be utliized to inform and optimize other business processes.

• Customer Surveys: By examining keyword frequency data you can infer the relative priorities of competing interests.
• Product Design: Keywords can reveal exactly what features or solutions your customers are looking for.
• Customer Support: Understand where customers are struggling the most and how support resources should be deployed.
• Industry Trends: By monitoring the relative change in keyword frequencies you can identify and predict trends in customer behavior.

Online Marketing Tips:

Set up some Paid Search Marketing Campaigns: Group keywords in relevant groups and write appropriate ad text to help improve your Quality Score, which will lower your bid and improve ad position.

Start with Keyword Research: A stagnant keyword list is dangerous as it neglects trends and information on new products or developments.

Analyze the Results: Displaying your keywords in ad text prove to the searcher and to Google that your ad is relevant to their search.

Repeat Ad Nauseum: Negative keywords are great because they prevent unnecessary clicks and spend, ensuring your advertisement displays only for applicable searches.

Implement Natural Search: Google estimates that 80% of searchers click on an organic result over a paid advertisement. Incorporate your best performing keywords into your website and continue to generate relevant content.

The Credit Guarantee Scheme for Micro and Small Enterprises (CGS) was launched by the Government of India (GoI) to make available collateral-free credit to the micro and small enterprise sector. Both the existing and the new enterprises are eligible to be covered under the scheme.

The Ministry of Micro, Small and Medium Enterprises, GoI and Small Industries Development Bank of India (SIDBI), have established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement the Credit Guarantee Scheme for Micro and Small Enterprises.

Eligibility/Applicability

New as well as existing Micro & Small Enterprises. Guarantee coverage ranges from 85% (For Micro Enterprise up to Rs 5 lakh) to 75% (For others). 50% coverage is for Retail Activity

Nature of Assistance

The credit facilities which are eligible to be covered both for term loans and/or working capital are collateral free. Loan up to a limit of Rs. 200 lakh is available for individual MSE on payment of guarantee fee to bank by the MSE.

Scheme Benefits & Highlights

• Fund and non-fund based (Letters of Credit, Bank Guarantee etc.) credit facilities up to Rs 200 lakh per eligible borrower are covered under the guarantee scheme provided they are extended on the project viability without collateral security or third party guarantee.
• The guarantee cover available under the scheme is to the extent of 50%/ 75% / 80% & 85% of the sanctioned amount of the credit facility. The extent of guarantee cover is 85% for micro enterprises for credit up to Rs 5 lakh. The extent of guarantee cover is 50% of the sanctioned amount of the credit facility for credit from Rs 10 lakh to Rs 100 lakh per MSE borrower for retail trade activity.
• The extent of guarantee cover is 80%(i) Micro and Small Enterprises operated and/or owned by women; and (ii) all credits/loans in the North East Region (NER) for credit facilities upto Rs 50 lakh. In case of default, Trust settles the claim up to 75% of the amount in default of the credit facility extended by the lending institution for credit facilities upto Rs 200 lakh.

Startup India is an initiative of the Government of India. The campaign was first announced by Indian Prime Minister, Narendra Modi during his speech in 15 August 2015.

The action plan of this initiative is focussing on three areas:

• Simplification and Handholding.
• Funding Support and Incentives.
• Industry-Academia Partnership and Incubation.

Startup Ecosystem facilitated through various government departments & programs

• 4000+ Startups have benefitted in the last year through various programs of the Central Govt.
• 960 crore of funding has been enabled to Startups through various schemes
• 828 Cr sanctioned funds for infrastructure.

Tax Exemptions

• IT exemptions for 3 years
• Capital gains exemption to people investing such capital gains in the Govt. recognized Fund of Funds
• Tax exemption on investments above Fair Market Value.

Legal Support in Patent Filing

• Fast track of Startup Patent applications
• Panel of facilitators to assist in filing applications, govt. bears facilitation costs: 423 facilitators for patent & design, 596 for trademark applications
• 80% rebate in filing of patents: 377 startups benefitted.

Credit Guarantee Scheme for Start-Ups

• Corpus of ₹ 2,000 Cr across 3 years
• Collateral Free, Fund & Non-Fund Based Credit Support
• Loans of up to 5 Cr. per Startup to be covered
• Status: EFC Memo circulated on 22 March 2017 to 6 Dept’s
• Impact: Credit guarantee to benefit 7,500+ Startups in 3 years

Government’s role

Entrepreneurship is made above posts like organized and policy pillar, opportunity of capital and entrepreneurial civilization. In an emerging society such as India, the government should regulate entrepreneurship and encourage commercialization of bright plans by imitating the startup environment in the expanded states.

The Ministry of Human Resource Development and the Department of Science and Technology have agreed to partner in an initiative to set up over 75 such startup support hubs in the National Institutes of Technology (NITs), the Indian Institutes of Information Technology (IIITs), the Indian Institutes of Science Education and Research (IISERs) and National Institutes of Pharmaceutical Education and Research (NIPERs).

The Department for Promotion of Industry and Internal Trade (DPIIT) is mandated to coordinate implementation of Startup India initiative with other Government Departments. Apart from DPIIT, the initiatives under Startup India are driven primarily by five Government Departments viz. Department of Science and Technology (DST), Department of Bio-technology (DBT), Ministry of Human Resource Development (MHRD), Ministry of Labour and Employment, Ministry of Corporate Affairs (MCA) and NITI Aayog. Government of India has made fast paced efforts towards making the vision of Startup India initiative a reality. Substantial progress has been made under the Startup India initiative, which has stirred entrepreneurial spirit across the country.

The Reserve Bank of India said it will take steps to help improve the ‘ease of doing business’ in the country and contribute to an ecosystem that is conducive for the growth of start-up businesses.

Proactive action from state and central government is spurring growth and fostering the entrepreneurial culture in the country. The government initiatives and policies are creating a favourable environment for startups, enabling expansion of infrastructure, co-working spaces, incubators, accelerators and in certain cases access to funding and market.

M-SIPS

In order to promote large scale manufacturing in the country, M-SIPS was announced by the Government in July, 2012 to offset disability and attract investments in Electronics System Design and Manufacturing (ESDM) Industries. The scheme provides incentive for investments on capital expenditure- 20% for investments in Special Economic Zones (SEZs) and 25% in non-SEZs.

The Scheme was revised vide notification dated 03-08-2015 which was further amended vide notification dated 30-01-2017. The Scheme was closed to receive new application on 31 December, 2018.

The Scheme provides:

• Capital Subsidy: 20% for investments in Special Economic Zones (SEZs) and 25% in non-SEZs.
• Incentives for both new units and expansion units.
• Incentives for a period of 5 years from the date of approval of application.
• Incentives for 44 categories/verticals across the value chain (raw materials including assembly, testing, packaging and accessories, chips, components).
• Minimum investment threshold for each product category/ vertical (from Rs 1 crore for manufacturing of accessories to Rs 5000 crores for memory semiconductor wafer fabrication unit.
• Unit to be in Industrial Area notified by Central/State Govt.

Incentives:

• The incentive under the scheme is in the form of subsidy for capital expenditure. The subsidy is 20% for investments in Special Economic Zones (SEZs) and 25% in non-SEZs.
• It also provides for reimbursements of CVD/ excise for capital equipment for the non-SEZ units.
• For some of the high capital investment projects like fabs, it provides for reimbursement of Central Taxes and Duties.
• The incentives are provided on reimbursement basis (means first investment has to be made by the unit to claim the subsidy).
• Units all across the manufacturing value chain are covered under the scheme. For each of the product category, an investment threshold is prescribed which an applicant has to incur for getting eligible for incentives. The investment threshold varies from Rs 1 Crore to Rs 5000 Crores depending upon the type of project.
• The incentives are available for a period of 5 years from the date of approval.
• The term of the scheme has been extended upto 27-07-2020.

Modification notified on January 31st, 2017

As per the amendment made after the Cabinet meeting chaired by Prime Minister Narendra Modi on January 17, 2017, certain changes have been made. Firstly, a revised time-period and incentive coverage is laid. As per the amendment, incentives will be given to applications received till 31st December 2018 or till total incentive commitment reaches Rs 10000 crore; whichever is earlier. This means that the total incentives or subsidy for capital investment is limited to Rs 10000 crore and it has to be provided by end March 2018. If the incentives provided crosses Rs 10000 crore before 2018 March 31st, a review of the scheme is to be taken by the CEO of NITI Ayog to decide on further continuation of the scheme. The incentives are limited to five years from date of approval. After receiving the incentives, the unit should undertake production for a period of at least 3 years. An appraisal Committee chaired by Secretary of Ministry of Electronics and Information Technology will approve projects under M-SIPS. A separate Committee headed by Cabinet Secretary and comprising of CEO, NITI Aayog, Secretary Expenditure and Secretary, MeitY (Ministry of Electronics and Information Technology) will be set up in respect of mega projects, envisaging more than Rs. 6850 crore (or USD 1 Billion) investments.

Self-Employment & Talent Utilization (SETU)

SETU will be a Techno-Financial, Incubation and Facilitation Programme to support all aspects of start up businesses, and other self-employment activities, particularly in technology-driven areas. It aims to create around 100,000 jobs through start-ups.

Scheme Benefits & Highlights

An amount of INR 1,000 crore is being set up initially in NITI Aayog for SETU for setting up of incubation centres and enhance skill development to facilitate the startup ecosystem in the country while improving the ease of doing business.

This scheme aims at increasing the number of startups by incubation and extending other services for reducing the rate of unemployment in the country.

Advantages of Self Employment and Talent Utilization; SETU Scheme

1. Working from Home

Self Employment is one of the means by which work from home is increasing. Also, if you are self-employed you will have the benefit of balance work and personal life in a very flexible way. You can take care of children and work on your project at the same time.

2. Own Boss

Most of the people don’t like to work under someone’s supervision. This also leads to unemployment. This becomes one of the reasons for a person to opt for self-employment.

3. Less Expenditure

Salary comprises a major part of any organization’s expenditure. In case of Self Employment, there is no need to pay a salary to anyone. Hence, working for yourself means you can manage your own salary. Moreover, it helps to reduce expenses like travel to work, life insurance, etc.

4. Reduction in Unemployment

There are various reasons because of which many individuals sit idle and become part of the unemployed workforce. One of the major reasons was the lack of finance to start a new business.

Through SETU, finance is easily available for young entrepreneurs. It also helps to eradicate unemployment and poverty on a large scale.

5. Work-life Balance

Self-employment provides a better work-life balance, as one can manage one’s own schedule and workload more flexible.

6. Work at any place and time

Being self-employed gives you the power of choosing your own workspace. You don’t always have to stay at home. When you want some fresh air, you can work from a favourite cafe or any other favourable location.

7. No need to wear Uniforms

Though uniforms provide a sense of discipline in any organization, it seems to be a burden for many people. Through this program, people have started working from home. so, there is no need to wear uniforms. Hence, there is no burden of it.

Disadvantages of Self Employment and Talent Utilization – SETU Scheme

1. Increase in Risk

It is your responsibility to make sure you always have work to do. This means you may sometimes be without work and income. Though under this scheme, the individuals get a loan at a cheaper rate. But during the recession period, that little interest can be a big burden.

2. Lack of Employee Benefits

Most of the individuals in this current era want to enjoy monetary as well as non-monetary benefits. But under this scheme, there is least or no benefits as received under employment contracts.

3. Start from the Scratch

Establishing business and building a client base can be a tiring and frustrating process. You need determination to succeed and perseverance.

4. Lack of finance in the rural area

Nobody can deny that most of the unemployed youth belong to rural India. This program aims at providing funds, but the sad part is that its reach is still limited to the urban areas. Most of the rural areas are deprived of funds to start a new business.

5. Continuous Running Costs

One can go for several months without earning a profit, and one always has to pay running costs such as rent, insurance, and internet access. Hence, it program may lead to an increase in burden on the individuals in the initial phase of the business. In extreme cases, it also leads to an increase in the NPA of the government.

The Indian Government has introduced over 50 startup schemes to help boost the start-up mission in India. Multiplier Grant Scheme was brought into effect to promote industries by collaborating with state of the art Academic and Government R & D institutes, who are engaged in the activity of developing products/packages. In this article, we will discuss the various aspects of Multiplier Grants Scheme (MGS).

Objectives of the Multiplier Grants Scheme

• To establish links between the industry and the institutes and further nurture and strengthen them.
• To promote industry-oriented Research and Development (R&D) at Institutes.
• To encourage the development of indigenious products and further accelerate their development.
• To bridge the gap between R&D/Proof of concept and commercialisation/globalisation.

Process Under the Multiplier Grants Scheme

• Idea Generation and Submission of the Project Proposal
• For collaborative research to happen, the idea for the same should originate from the industry or the industry consortium.
• Academic institutions or the R&D bodies that intend to undertake the industry-specific research will have to submit the project proposal under the Multiplier Grants Scheme to the Department of Electronics and Information Technology jointly with the industry/industry consortium.

Multiplier Grants Scheme

The Indian Government has introduced over 50 startup schemes to help boost the start-up mission in India. Multiplier Grant Scheme was brought into effect to promote industries by collaborating with state of the art Academic and Government R & D  institutes, who are engaged in the activity of developing products/packages. In this article, we will discuss the various aspects of Multiplier Grants Scheme (MGS).

Process of Initiation

The idea for collaborative research must be submitted jointly by the Industry and R&D institutes as a project proposal to the Department of Electronics & Information Technology (DEIT) under MGS scheme. The proposal is generated for innovation in modules or services in the field of E&IT. The proposals should be able to predict the framework for commercialization.

To find out the R&D capabilities of institutions taking up collaborative research under MGS, it is vital to look into the following:

• Level of professional courses in ICTE(B.Tech/M.Tech/PhD) being conducted by them.
• Prior Research Work/projects undertaken.
• of papers published.
• Collaboration with industry, if any.
• The institution should be in existence for a minimum period of 5 years.

The result of the proposed idea must be feasible and practical. All the proposals should contain data on the market survey of the modules or services anticipated to be established. The industry should have the manpower for absorption of technology and infrastructure for production in-house. The proposal must have detailed concrete plans to be implemented.

Release of Grants

The Government grants, for the individual industry, would be limited to a maximum of Rs. 2.0 Crores per project and the duration of each project could considerably be less than 2 years. It would be Rs. 4.0 Crores and 3 years for industry consortium. The contribution of industry and grant-in-aid from DeitY would be provided to academic/R&D institution(s) alone. The formal agreement for sharing of IPRs/know-how and royalty/lump sum between the institute(s) and industry must be signed prior to the release of the first installment of Grant-in-aid. The institution(s) /industry would submit the periodic report to DeitY for a minimum period of 5 years on the status of IPRs created.

Proposal Implementation

Proposals will be invited based on the disposal of funds, for maximum of three times in a year. A Working Group fixed by the Department shall inspect and verify the respective proposals and suggest the Department for suitable financial support. The WG might invite extra Domain Experts, considering the proposals made.  A Project Review & Steering Group (PRSG) shall periodically manoeuvre and analyse the technical and financial progress of the project, favouring release of Grants

The grants under the proposed scheme and the application to submit the proposal would be based on the Terms & Conditions placed.  The details of the scheme, including current status, would be made available on the Department website.