Topic 1

The necessities in learning the skills in production and marketing process that utilize technological innovations to develop occupations

Necessity in training the skill to develop occupation

In order to catch up with changes in the market, the necessities and importance to develop occupational skills, which are the knowledge and capability in production and marketing processes, are highlighted below.


1. Economic aspect: since business competitions often bring along high level of marketing competitions, trading association such as ASEAN Free Trade Area and European Economic Area can be seen. Therefore, occupational development consists of product development in order to compete with and be accepted by foreign markets.


2. Social aspect: a country with good economy is more likely to have a good social condition such as no crimes.


3. Educational aspect: wealthy families are able to pay for their children’s education and these children will be capable of taking up careers which will positively affect economics and society in the future.

Necessity in production process improvement

A dynamic change in the state of society is the cause of diversity in consumer’s need in terms of quality and quantity, so occupational development takes a vital role in coping with such a change. This involves techniques and methodologies in improving production and marketing processes by applying knowledge, innovations, and technologies.


Production Process involves the management of capital, labor, land or place to generate products or merchandizes that are continuously developed, in order to meet the market’s need. Each element of the production process can be illustrated in the figure below.

1. Capital refers to factors that relate to money, material, equipment, raw material, tool, and machine. One must take into consideration what kind of capital should be involved, to what extent such capitals are needed, the possibility to reduce the quantity of them or utilize cheaper substitutes, or focus on using local capitals since those from some other places may incur higher cost of production such as transportation fee and labor cost. In case of the investment loan with high rates of interest, one might consider how to reduce such rates which affect the investment.

2. Labor means the labor of man, animal, and machine used in production. The learner have to study and analyze the use of such labors be worth to money and time to invested or not, whether such types of labor are suitable for the characteristics of work or the size of the area or not; for example, it is better to use workforces in a small production area than large machines. Moreover, one might consider the quality of the labor used and whether the morale encouragement exists or not.

3. Place refers to properties or places such as department stores and shops that are the places for businesses. Agriculturists might consider whether the utilization of land is worthwhile or not, to what extent the land should be used, whether the land is suitable for planting or animal rising, and whether such agricultural land is nourished by; for example, growing peanuts and then plough them up or not.

For service occupations such as food merchandising, beauty salon, shoemaker and traditional massage which rely on locations, they should consider the urbanized place that is convenient to travel to, as well as a car park.

4. Management is an administration of capitals, labors, and lands or places to produce worthwhile outputs with the most benefit, so the factor becomes a vital part in running a business. The management system that is orderly and carefully thought, analyzed, and planned based on facts and situation at the specific time will create competitiveness over those who ignore it and stays within the same method which results in the lack of continuous improvement and makes the business remain unchanged or falls behind. In order to carry on the career and gain income for family, one might consider saving for his family as insurance for the living and education of the descendants. In addition, applications of innovation and technology in production are also a crucial part in taking up a career in order to generate the product that is able to meet the market need, in terms of both quality and quantity.

Necessity in improving the marketing process

Necessity in improving the marketing process involves an administration of marketing aspects, starting from studying customer’s need, determining target, arranging a marketing plan, promoting sales, setting a selling price, selling a product, and delivering a product to customer. The producer must study and analyze strengths and weaknesses of each step of the marketing process and apply that information in occupational development.

Marketing seems to be a difficult part for those who have just taken up a job, as well as those who have already worked. Learning and trying to understand marketing methodologies, one will be able to improve his own marketing process. The marketing process is shown in the figure below.

1. Product means outputs / products / services such as agricultural and processed products, or services such as food merchandizing, beauty salon and traditional massage. The entrepreneur must at all time take into consideration the customer’s need whether such demand tends to increase or decrease. If the demand towards the product decreases, the entrepreneur will have to study and analyze product characteristics such as appearance, aesthetic, excitement, and utility and adjust these factors based on the needs of group of targeted customers. The service provider will have to place an important on the service aspect such as service manner, responsibility, and interpersonal relation.


2. Price means the product pricing which relates to the cost of production such as tool and equipment cost, interest, rental fee, labor cost, public relation cost, transportation fee and gasoline cost. Exporting product will incur higher cost than selling domestically. The seller is, however, recommended to set the selling price according to the product quality and is comparable to the competitor. In case there are not many competitors in the market, the seller should fairly set the selling price against the consumer.

Therefore, the entrepreneur should study and analyze whether the price of production factor decreases or increases and how, is it practical to find a cheaper material to substitute an expensive one to reduce cost, or is it possible to reduce loan interest, rental fee, transportation fee, or public relation activity which will lower the cost of production. All of which will affect the price setting of the product. If the selling price is set lower than that of the competitor and results in the good sales volume, the total profitability will be better in this way.


3. Distribution Channel is the process to safely distribute the products to the consumer and there are various ways to do so such as distributing via a middleman and retailing. The entrepreneur will have to consider his own knowledge and capability in selecting a distribution channel which may not be a single but multiple channels as appropriate; for example, a fruit seller who previously utilizes a middleman as the only distribution channel may also consider a retailer to increase channels of distribution.


4. Promotion is any technique or method that let the customer knows and demands for the product. Promotion may include certain methods such as sweepstakes, discounts and buy 1 get 1 promotion. A promotional campaign may be announced by certain methods such as distributing leaflet, announcing via newspaper, radio, and television.

Apart from these promotional campaigns, the after sales service is also a crucial part since the customer may not only purchase the product one time. A good after sales service will bring back the customer for repurchasing or even recommend the product to other customers. In conclusion, the entrepreneur will have to study and analyze both advantage and disadvantage of the current promotions and consider whether there should be any improvement or not.

Further developing career and applying intellect

Nowadays developing the career is an important part for the producer. Although a large number of manufacturers producing similar products, which create choices of consuming, will benefit consumers, this negatively affects the manufacturers due to competitions. The manufacturer, therefore, has to be innovative and creative in further developing the product to make it distinctive and attractive in the view of consumers.

Intellect means knowledge, capability, smartness, skill and technique that are initiated from fundamental knowledge which has passed through the processes of succession, selection, improvement, development, and creation, utilizing long accumulated experiences.

Developing a career by applying intellects is a process to link intellectual knowhow and align it with the career. It is, therefore, necessary to study and analyze career’s strengths and weaknesses. The strengths should be analyzed to find rooms to further strengthen them while the weaknesses should be carefully considered to improve them; for example, the retrospective trend becomes popular nowadays and this can be applied to develop occupations. A coffeemaker may apply a retrospective style of coffee making as a gimmick while conserving the style.

Skills in using innovation/technology in occupational development

  • Innovation : means thinking, methods, or new inventions that have never been used before. It also includes the development and modification of existing things.


  • Technology : refers to the use of knowledge, tool, idea, principle, technique, procedure, as well as other methods developed to help in working or solving problems. Some examples of technology include tool, machine, or even other intangible belongings.

To determine whether to accept or reject innovation / technology, one may have to consider the efficiencies of such innovation / technology, which consist of 4 elements:

1. Working capability

2. Cost saving

3. Speed of work performing

4. Harmless to environmental


  • Working Capability : to what extent the innovation / technology is able to achieve its purpose. In this regards, an indicator is required to determine the acceptable standard compared to the previous working capability of such innovation / technology, under a condition that there must be an improvement after the implementation. The indicator might be determined as a percentage; for example, the new threshing machine is able to separate more rice by 20% which is acceptable.


  • Cost Saving : the cost saving element is a comparison between the newly replaced innovation / technology and the old one, in terms of the price that will be needed to pay for such innovation / technology and the cost that will be reduced from it.


  • Speed of Work Performed : the factor relates to an evaluation of the time consumed in working. This will be compared between the new and the old innovation / technology.


  • Harmless to Environmental : the entrepreneur must always realize that the new innovation / technology will be environmentally friendly and creates no harm against neighborhoods.


  • Evaluation of the Work Performed by Innovation / technology : To evaluate the work performed by innovation / technology according to the 4 elements and to decide whether to accept or reject the use of innovation / technology, the learner will need to determine the key performance indicator and criteria for such indicator according to the example below.