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Meaning And Features Of Installations

Installations are high priced capital or industrial products. They are costly, durable and are the main equipment of business users. In other word, the big, costly and long lasting machines necessary for business uses are called installations. Computer, planes for Airline Company, bus and truck for transport company, machine for sugar company, or diesel engine for railway service, upset printing machine for press etc. are the examples of installations. The main feature of installation is that it directly affects operational level. When five new computers are added, an improvement comes in the operation of business office. But addition of five computers in the office of airline company does not improve its operation. Instead of five computers, if five jets are added, it improves operation of the airways. So, planes become installation in airways, but no computers. Installation depends on the nature and size of business. The recommendation of department chief and approval of top level management of the business firm is required to take decision for buying costly and big installations.

Marketing of installation is a challenging task of management. To be able to sell even only one installation becomes important. Generally, no help of middlemen is necessary; producers directly contact with users and sell the product. Per unit price becomes high of such installations. Installation goods are produced according to the specifications given by customers. Pre-sale and post-sale services are essential for installation goods. High-level skilled manpower is necessary in selling installations. Sales engineer is used in selling such goods. Personal selling is given priority for promotion; sometimes advertisement is also used.

Features Of Installations

1. High Unit Price
Per unit price of installations is very high.

2. Life Span
Life span or durability of installations is long, they last very long.

3. Purchase Quantity
Installations are purchased in small quantity.

4. Purchase Frequency
Installations are purchased infrequently, or they are purchased after long intervals.

5. Repair And Maintenance
Installations need time-to-time repair and maintenance.

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