08-02-2013, 04:40 PM
HOLISTIC MARKETING
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INTRODUCTION
THE KNOWLEDGE MANAGEMENT SYSTEM (KMS)
The KMS is the on-going, persistent interaction among agents within a system that produces,maintains, and enhances the system's knowledge base. This definition is meant to apply to any intelligent, adaptive system composed of interacting agents. An agent is a purposive, self-directed object. Knowledge base will be defined in the next section.
In saying that a system produces knowledge we are saying that the system
(a) gathers information and
(b) compares conceptual formulations describing and evaluating its experience,
with its goals, objectives, expectations or past formulations of descriptions, or evaluations.
Further, this comparison is conducted with reference to validation criteria. Through use of such criteria, intelligent systems distinguish competing descriptions and evaluations in terms of closeness to the truth, closeness to the legitimate, and closeness to the beautiful.
In saying that a system maintains knowledge we are saying that a system continues to evaluate its knowledge base against new information by subjecting the knowledge base to continuous testing against its validation criteria. We are also saying that to maintain its knowledge, a more complex system must ensure both the continued dissemination of its currently validated knowledge base, and continued socialization of intelligent agents in the use and content of its knowledge base.
Finally, in saying that a system enhances its knowledge base, we are saying that a system adds new propositions and new models to its knowledge base, and also simplifies and increases the explanatory and predictive power of its older propositions and models. That is, one of the
functions of the KMS is to provide for the growth of knowledge.
DIMENSIONS
Different framework for distinguishing between different 'types of' knowledge exist. One proposed framework for categorizing the dimensions of knowledge distinguishes between tacit and explicit knowledge. Tacit knowledge represents internalized knowledge that an individual may not be consciously aware of, such as how he or she accomplishes particular tasks. At the opposite end of the spectrum, explicit knowledge represents knowledge that the individual holds consciously in mental focus, in a form that can easily be communicated to others. Similarly, Hayes and Walsham (2003) describe content and relational perspectives of knowledge and knowledge management as two fundamentally different epistemological perspectives.
FINANCIAL ENGINEERING
Financial engineering is a multidisciplinary field involving financial theory, the methods of engineering, the tools of mathematics and the practice of programming. It has also been defined as the application of technical methods, especially from mathematical finance and computational finance, in the practice of finance.
Financial engineering draws on tools from applied mathematics, computer science, statistics and economic theory. In broadest definition, anyone who uses technical tools in finance could be called a financial engineer. However, most practitioners restrict the term to someone educated in the full range of tools of modern finance and whose work is informed by financial theory. It is sometimes restricted even further, to cover only those originating new financial products and strategies
CENTRAL PROBLEMS OF FINANCIAL ENGINEERING
There are many problems that may be classified as financial engineering problems. Perhaps the most obvious such problems are: securities pricing, risk management and portfolio optimization.
1. Securities Pricing
We can typically identify two classes of securities: primitive securities and derivative securities. Examples of primitive securities are stocks and bonds whereas options, futures and swaps are examples of derivative securities. It is probably fair to say that financial economics is more concerned with pricing primitive securities, usually using equilibrium arguments (e.g. supply = demand) to do so. Financial engineering is typically more concerned with pricing derivative securities and uses arbitrage arguments to do so. This distinction is not hard, however, and sometimes it is necessary to use equilibrium arguments when pricing derivative securities. Moreover, some models such as the Capital Asset Pricing Model (CAPM), are equilibrium-based models that are of fundamental importance to both financial economists and financial
Engineers.
2. Risk Management
Risk management is concerned with understanding the risks that are inherent to your portfolio of securities. For example, you might be interested in determining P(WT /W0 _ .8), i.e., the probability that you will have lost more than 20% of your wealth by time T. If this probability is unacceptably high then you need to adjust your portfolio to reduce this probability. There are a number of interesting and challenging questions that are related to risk management.
INTEGRATED MARKETING COMMUNICATIONS
Integrated Marketing Communications (IMC) is an approach to brand communications where the different modes work together to create a seamless experience for the customer and are presented with a similar tone and style that reinforces the brand’s core message. Its goal is to make all aspects of marketing communication such as advertising, sales promotion, public relations direct marketing, online communications and social media work together as a unified force, rather than permitting each to work in isolation, which maximizes their cost effectiveness.
What is IMC?
Integrated marketing communications (IMC) is an approach to brand communications where the different modes work together to create a seamless experience for the customer and are presented with a similar tone and style that reinforces the brand’s core message. Its goal is to make all aspects of marketing communication such as advertising, sales promotion, public relations direct marketing, online communications and social media work together as a unified force, rather than permitting each to work in isolation, which maximizes their cost effectiveness.
IMC is becoming more significant in marketing practice because of the reduced cost effectiveness of mass media and media fragmentation. As consumers spend more time online and on mobile devices all exposures of the brand need to tie together so they are more likely to be remembered.
Increasingly the strategies of brands cannot be understood by looking solely at their advertising. Instead they can be understood by seeing how all aspects of their communications ecosystem work together and in particular how communications are personalized for each customer and react in real time, as in a conversation. Brand strategies and their tactics can be viewed on the Integrated Brands site.