CUSTOMER CENTER

Healthcare Marketing asked:


Many OB/GYNs are facing the same challenges, which include lower reimbursement rates, increased competition, and the feeling like the practice is running you – instead of the other way around.

OB/GYNs are facing a changing environment… making it more difficult to attract and keep patients, earn high revenues, develop referrals, and ultimately enjoy a quality of life that was once expected and easily attained by physicians.

We know that an effective and strategic marketing solution can eliminate these obstacles to personal fulfillment, and open the door to new opportunities, growth and satisfaction.

The market is shifting. And due to insurance costs and concerns about liablilty, some doctors are getting our of obstetrics entirely and focusing just on gynecology.

Others are exploring new revenue streams such as cosmetic gynecology. Some are combining disciplines and offering internal medicine, dermatology and OB/GYN under one roof. We ahve also noticed that some OB/GYNs are wanting to focus on attracting certain types of patients and cases that bring either personal fulfillment, higher revenues, or both. Whatever your particular situation is, or how near or far you may feel from your goals of having a more managable, fulfilling practice… there are solutions and methods to get you to where you want to be.

And male OB/GYNs are in need of special marketing that addresses the growing trend towards female-to-female doctor-patient relationships.

The bottom line is this: What you knew about the business of being an OB/GYN has changed and continues to evolve. If you want your practice to thrive and grow in the coming years, contact us for a free consultation. You can ask all the questions you want, and we may even give you a few more that you hadn’t yet thought about.

For more information, please visit our website, www.healthcaremarketingpartners.com

Or send us an email by clicking here.

Stephen Milford asked:


What is customer service? Have you ever stopped to really think about this question? We have trained literally thousands of people and hundreds of organisations in customer service. No matter who the person or what the organisation, the answer to this question is always generic. They will say: “Customer service is about giving customers what they want” or perhaps “it’s about satisfying customers” some times they will say that it is about “making customers happy.”

While at first glance these answers may sound correct, nothing could be further from the truth. Say for example that you ran a restaurant. If a customer were to enter your restaurant and ask for some office supplies would you be able to give the customer what they want? Would you be able to satisfy a customer who was looking for some jewellery if you worked in a hardware store? No, it would be impossible. The best that you could do would be to politely tell the customer where they can go and get Jewry. Obviously, customer service is not about giving customers what they want, or even satisfying customers.

The same is true for the way we give customer service. When we ask the question: what is the most important thing for good customer service, almost everyone we ask will answer: smile. While this may be good in some cases it is not appropriate in all cases. Just imagine if a distressed mother came up to you and told you that she had lost her 2 year old child in your store. Imagine how she would respond if you were to smile at her? Or imagine if a customer told you that he/she slipped while climbing the stairs or escalator in your store and as they explained their excruciating injuries you smiled back at them.

The truth is that customer service is not about practicalities, it’s about principles. The practicalities may change but the principles stay the same. Staff are not meant to smile all the time, to give customers everything they want, or to satisfy all their needs. Staff are meant to promote the organisation and its values. If you want to increase the impact of your customer service teach staff to represent your organisation and its unique traits.

When we teach customer service training modules we first focus on what the organisation values, what it’s all about and what does it want customers to see. Once we have done this, we move on to how to serve in light of these values. This is a very easy way of getting staff to change the way they serve, it produces better results and is a lot more fun to teach.

Here is something you can do to help your staff engage in effective customer service. Take a black/white board and draw a very basic house. Ask staff to take a piece of chalk or the white board marker and to take turns to turn this basic house into your organisation/company. They may add pictures or words to the basic drawing. Some will add words like: quality, professionalism, friendliness, service, money, speed, or simplicity while others may draw things like customers and staff.

Now ask staff this simple question: in light of this picture, what does a good customer service representative do? The participants will now find it easy to see what customer service is really about in your organisation. They may say for example, in light of us being a friendly company we should smile. Or perhaps they will highlight the organisation’s professionalism and explain that it’s professional to stand up straight and to dress appropriately.

Instead of teaching staff practicalities teach them principles and the practicalities will follow naturally.

Assassin Marketing asked:


Online marketing is no doubt the most effective way to reach people. Its capability to earn millions is unquestioned.

Perhaps, this is one of the most momentous discoveries of mankind. The internet has brought about a lot of changes in the world. It allowed us reach the unreachable; it permitted us to communicate with the people around the globe without spending much money.

These are also the reason why people nowadays are investing in online marketing for their businesses…because beyond a doubt, online marketing will work for them.

We do have a lot of options to choose from when it comes to advertising. In fact, we have the television, radios, print media and all. However, online marketing still belongs at the top of the list for many reasons.

First, people prefer online marketing because it reaches the whole world. Your supposedly very small business may become very large almost overnight because of the magic of using online marketing because everyone in this world can literally see what you offer.

Second, you reach the world and get millions without having to pay millions in return. The cost of online marketing compared to other forms of media is very efficient and cost effective. Let’s say you use print media. If you are going to make a flyer and advertise it over the world, how much would it cost you? If you were to pay for TV advertisement, you would definitely have to pay for every single second that your business is aired.

Third, online marketing creates a two-way communication process. We do not simply promote what we have. Hence, we get to know what our visitors or what our customers think through the ”Comments” box on our web pages. By doing so, we get to know what they want and we are able to improve our products and services.

Next, it is also very important that we build relationship with our customers. Yes, we may have benefited from them but we should always find ways to keep them coming back to our place of business or at least our website. With online marketing, we are able to do this because we can become interactive with them, thus, making our customers feel that they are valued.

Fifth, in business, we always have to budget our resources. Unlike in other forms of media, we save a lot of money with online marketing because we will no longer need to keep sending letters, flyers or postcards every time we want to contact our customers or offer a promotion. In fact, the current trend is to only mail your customer information if they need additional resources or information about your business. For advertisements in newspapers and magazines, you have to pay for every inch of space, and even every color used in the design your ad. With online marketing, it is always cost-effective.

The sixth reason why people have shifted to online marketing is its flexibility. For example, let’s say there has been a change in the benefits or features of your product or service, or even a change in your prices. Well, you’ll have to hire someone to redesign your ad, reprint it and send it out again…and that cost more money. But with online marketing, you can easily update your site and make the changes without removing money from your wallet. Does it sound great? Yes, it does.

Well, are you getting the picture on why there is a craze with online marketing? Here’s more.

Another reason a business should prefer online marketing is because you have a lot of media choices when promoting your business. You can opt to show videos, photo presentations, audio, blogs or even social media. There is nothing really hard about this type of strategy. It will definitely save you more time and of course, resources.

Moreover, you can monitor what is going on with your business. Through the use of tracking, you have the chance to see the traffic generated by your site. With this feature of online marketing, you get to know what else you can do to tweak and improve your site because you see what keywords prospects are choosing to find you and incorporate more of those into your website.

Online marketing is also an extremely effective type of advertising because you can design your website the way you want it. You have the power to add features in it, to create a web design that would attract visitors and make them stop on your web page and take a look at what you have. The best thing about it is that, you can do the changes anytime you want without worrying about your expenses. By controlling the design, more and more people will be attracted to your site and you will be able to create an amazing impression on them.

Lastly, people go crazy about online marketing is because it is beneficial not just for businesses but for the consumers as well. Why? Simply because it makes everything much more convenient. The consumers need not go out of their house anymore and search around the city to look for what they want. With just a click, they can have it. And another thing is that the communication between the buyer and consumer is immediate. Response is very fast and that is why transactions are almost immediate.

So there we have it. These ten reasons explain why online marketing has become the number one source of advertising today. You need not have a second thought anymore. All you have to do is close your eyes and dream of how money can be made when you invest your money in online marketing.

Mario Joyner asked:


Whenever one invests in real estate the most important thing that they have to look for are the finances. Any real estate property be it apartment or other requires huge amounts of money and hence the need of apartment financing. The choice of a particular financing option largely affects the investment outcomes and hence one must tread cautiously in the matter of apartment financing. There are many financing options that one can go for in apartment financing such as banks and private lenders. There are also some prerequisites that one can consider before going in for apartment financing. The traditional methods of apartment financing do not allow much flexibility but with the growth of private lenders there is much flexibility which one can consider in apartment financing.

Apartment Financing Options

Before considering the different financing options one must make sure how long one is going to hold the property and whether the investment is long term or short term because this has important implications in the choice of finance one can get. When one is considering owning the apartment for a short period then one can surely go in for the adjustable rate mortgage or the ARM for short. The ARM apartment financing option offers an interest rate that changes with the index. The initial interest rate in the ARM is more competitive than other apartment financing options. Interest rate fluctuations in the future impact the finances and hence the ARM is important in this regard. Also the maximum interest rate also works as protection for those who hold the mortgage. For those wanting to remain long in the business there is the fixed rate mortgage apartment financing. The rate of interest for the borrowers in this apartment financing remains the same for the whole period of the mortgage and hence it offers the borrowers cost effective apartment finance.

When one goes for the fixed interest rate apartment financing when the interest rates are low all the advantage is for the borrowers since they qualify for the same interest rate until all the loan is repaid. The opposite happens when the interest rates are higher in the market. First time investors must also look for the value of the apartment because it affects the type of finance they will receive. Generally higher the value of the apartment the best interest rates will be got from direct lenders or investment companies. However when the value of the property is smaller one can consider the financing options from ones local banks.

Apartment financing from smaller banks or direct lenders is another important option that one can consider in apartment financing because they offer flexible apartment loans as compared with other reputed banks and lenders. One can have finances like non-recourse as well as partial-recourse loans from the small banks and the direct lenders who are always on the look out for borrowers. In the event of non-repayment of the amount the traditional lenders can claim the property and recover their loan while in the conventional loan the lender cannot claim the apartment for which finance is given but they can claim the property that has been mortgaged as the security for their finances.

Find out more at Learn Apartment Financing

James Copper asked:


Does your online marketing skill make up for in enthusiasm what it lacks in knowledge and expertise? If this is the case, you’re not giving your business every possible advantage. While it’s true that in order to be success at your networking business you need to have passion for your product, you also need to know how to make the public aware of it and want to be a part of it. Online marketing courses are one of the most effective ways to help make this happen for you.

What’s So Important About Online Marketing Courses?

You’re probably remembering your days back in school and all the reading, tests and studying you had to do and how much you hated it. Does the prospect of taking more courses appeal to you any more now than it did then? Absolutely, because you know the importance of what you’ll be learning in these online marketing courses and how they can help gain you a successful online business, a lifelong income and, possibly, fame. What more can you possibly ask for?

The importance of taking online marketing courses is that you can get help and guidance from those that know what they’re talking about in areas where you may be lacking. If you’re just starting your business, there are going to be plenty of areas where you’ll need help. I know when I first started; I needed lots of help and guidance. There were not near the opportunities in online marketing courses available a few years back as there are today. You now have the opportunity to take online marketing courses that will teach you everything you need to know to run a successful online business from the ground up.

What Will Online Marketing Courses Cost?

A major concern for many individuals just starting their online business is keeping costs down as much as possible. This is the case with any business ventures. The less expenses you have, the more profit you’ll make when your business does get off the ground and running strong. However, some expenses are unavoidable in business and the expense you’ll incur for gaining the knowledge to start your business and make it successful will be invaluable to you down the road.

You’ll be happy to hear that many online marketing courses are free on the web. It’s just a matter of finding the right ones. Others, however, may be listed for a fee that’s very affordable. When choosing your online marketing courses, you’ll have your choice of individual courses, programs offering certificates in certain areas of study or complete course packages. If you online need help in a couple of topic such as SEO, email marketing or website hosting, you can easily get by with the specific individuals. If you feel you need all the help you can get, enrolling in complete online marketing courses may be the answer. Whatever area you feel you need the most help and guidance, you’re sure to find online marketing courses to meet that need. The glorious internet has it all.

Carolyn Craven asked:


According to a well documented study, sixty-eight percent of customers who leave your company for one of your competitors do so because they believe you are indifferent to their needs and opinions.

 

It is a common organizational pitfall to become complacent about customers’ needs and wants, especially during positive economic times. Although you may be familiar with the statistic that attracting a new customer costs five to six times as much as retaining an existing one, it’s easy to make the mistake of letting customer feedback fall to the wayside when you have two or three new customers lined up for every one that you lose.

 

But what happens when that reserve of new customers suddenly dries up? Although there were some classic warning signs, many businesses were caught off-guard by the present economic recession. Businesses across all industries are being adversely affected by a shrinking GDP (which decreased at an annual rate of 6.3% in Q4 2008) and rising unemployment (which increased to 8.5% in March 2009). Americans are tightening their spending belts and businesses are clamoring for fewer customers who all have fewer dollars to spend.

 

With demand for both consumer and B2B goods and services slipping, it is more important than ever to satisfy and retain the customers you do have. While attracting new customers will always remain a goal to strive for, few companies have the luxury in these difficult economic times to spend many of their diminishing marketing dollars on that objective. It is much more efficient to concentrate on retaining, up-selling, and driving repeat business from current customers.

 

According to a recent survey from Accenture (2008 Customer Satisfaction Survey), “how well companies understood and met the distinct preferences and expectations of the customers they serve” was the number one reason that customers stayed with their current product or service provider rather than seeking a competitive alternative. It may surprise you, given the current economic climate, but customer experience ranked even higher than price when determining when and if to leave a provider.

 

Given that a positive customer experience with your products, services, and customer service employees is essential to retaining customers and therefore vital to the health and longevity of your business, right now is one of the most critical times in our economic history to listen and respond to feedback from your customers.

 

Gathering customer feedback must not be viewed as a dispensable expenditure, even in the face of sharp budget cuts. According to a recent report by the Aberdeen Group, 55% of companies surveyed have made zero budgetary cuts in the area of customer feedback initiatives, and 19% have actually increased spending in this area. Informed business leaders realize that an investment in customer feedback and retention is an investment in the long term survival and growth of their companies.

 

Online customer surveys have evolved as one of the most cost-effective, efficient, and accurate means of gathering customer feedback data. Online surveys allow marketing professionals to measure satisfaction levels from a large number of customers at once, without the incremental time and cost of using paper or telephone surveys. Products like Checkbox Survey are managed from a standard web browser, can be implemented relatively quickly without costly IT services, and can be deployed on a large or small scale depending on a company’s needs. By utilizing online surveys, organizations can easily tap into existing customer email databases and incorporate customer surveys into their current customer email campaigns.

 

Because online surveys from vendors like Checkbox can be designed and deployed quickly and updated at any time by multiple users (within set permissions), companies are able to easily adjust their survey initiatives to react to shifting market and economic conditions. Survey results and reports are available in real time, allowing for opportune responses and reactions.

 

Customer retention rates won’t soar overnight, but small incremental changes that are implemented thoughtfully can have a significant impact in your customers’ perception of how you value them and their business. Start by surveying your customers today to create a baseline of your current customer satisfaction levels. Then, consider integrating feedback surveys into your everyday business process. This not only softens the resource requirements of collecting feedback, but also allows your business to check its customer satisfaction pulse at any point in time. Common customer satisfaction surveys include evaluations that are emailed automatically following a purchase transaction or customer service experience.

 

However your business chooses to monitor and respond to customer feedback, it is most critical that customer satisfaction remains a top priority. The economic tide will turn again, but the businesses that will survive and thrive for years to come are the ones that continue to value the opinions and needs of their current customers, regardless of how many new customers may be lined up to take their place.

 

For more information about customer satisfaction and survey software options, visit Checkbox Survey Solutions at http://www.checkbox.com or contact a Checkbox Product Expert at 1-866-430-8274 (Int’l +1-617-715-9605).

Syed Ali asked:


A Customer Relationship Management (CRM) solution provides your business with a formalized means for gathering, organizing and storing customer contact information. There is a wide variety of software solutions, such as Microsoft’s Dynamics Suite, on the market serving small, mid-range and enterprise sized businesses and the solution can be tailored to meet your own business working practices.

If you are a company that has as one of its’ primary objectives the delivery of a first class customer service, then a Microsoft Dynamics CRM solution is a powerful tool to ensure that all stakeholders within your business are in possession of prospect and customer information when it matters, and especially at the point of customer contact.

Too often sales opportunities are missed because information is not readily available when it is needed within your business; for instance, a pre-sales enquiry cannot be dealt with on a timely basis because the representative who has been handling the initial relationship is not available and the prospect is about to make the decision to buy. What do you normally do in those circumstances? Advise something along the lines of “We’ll get back to you with the information you need as soon as possible.” Would it not be far better if a staff member can pick up the thread of the relationship and provide an appropriate response to your potential customer there and then?

Once a business launches a sales or marketing campaign, getting the best out of the results coming in is problematic at best and any of us that believe we have not lost sales opportunities that have fallen down the cracks in our business’ organization is either naïve, dishonest or is already operating an effective CRM solution. The obvious benefits from a Microsoft Dynamics CRM solution are to prevent loss of sales opportunities, improve customer relationships, improve sales revenues and minimize costs.

Microsoft Dynamics Software provides a customer relationship software solution that empowers management and staff with the ability to make decisions based on the most up-to-date information available on customer contact and activity. Time is better used in revenue generation activities instead of getting bogged down with finding out what is happening with a prospect or customer, instead the information is there, it is a matter of looking after the prospect or customer at that point.

Businesses benefit immensely from the savings in time and expense of valuable man hours, while effectiveness is greatly improved in dealing with prospect and customer sales and support.

Maintaining a good record of contact information with a customer allows your representatives to acquire a detailed understanding of what a customer is looking for and perhaps more importantly, what a customer may want next. This is sometimes referred to as a “holistic” approach, in that gaining an understanding of a customers needs in a wider context allows a business to place itself more directly in their shoes.

Such an understanding provides customer facing staff and departments with the ability to “second guess” what a customer wants before they know themselves or, at least, the effect is that a prospect or customer comes away from the encounter with your business with a very positive perception of how you operate.

A Microsoft Dynamics CRM solution improves business efficiency by reducing non-productive administrative time and improving your business’ understanding of a customers needs, this is turn increases revenues and enhances your business image in the eyes of your clients.

John Barth asked:


The demand for custom labels in Chicago is continuing to grow with all the food processing and confectionery business centralized in the central US for easy transportation around the country. Chicago is also a hot bed for manufacturers, technology, health care, distribution and many other custom label consumers like cosmetic labels in Illinois.

Custom food labels and confectionery in Chicago have a high demand for quality, and for applicators that can affix the labels to the product without smashing the contents within like bread, snack products, and cookies. Many times these labels have custom colors for branding with a logo and an area for the food business or confectionery to print a date code or ingredients that will be variable text on each label. These can be accommodated in a thermal transfer or direct thermal label, depending on how long the product will be on the shelf in the supermarket or deli. These can also be made for scales where the variable weight and price will be printed onto the labels.

Manufacturers use custom labels for a number of reasons. The most common reason is to brand the product they are making. These are usually 4 color process labels with a UV coating that will prevent the label from fading over time. Manufactures also use custom labels to label parts and shelves in the tool cribs they use to maintain the manufacturing operation. These custom labels can also be used in the shipping process when the product is shipped into distribution. Many distributors require special barcodes to be placed on all products that are shipped to their centers. These manufacturers also use labels to mark racks in the finished goods area of the operation.

Another manufacturing application is custom UL labels. If the manufacturer is making an electronic consumer product then a UL label is required adding more custom requirements to this business sector. This also applies to the technology sector.

The technology sector in Chicago uses custom labels on circuit boards, computers for asset tracking, and special custom tamper evident labels that can show if a product has been tampered with. The circuit board labels are usually very small and some need to be produced for clean room environments. These labels require a strict and clean environment to make and seal the rolls of labels so they are air tight.

Within the health care industry in Chicago there are many sub groups and custom label applications from labeling test tubs to labeling patients wristbands to match the medications that are assigned to that particular patient. The health care industry also has their own distribution setups where custom labels are used to organize files, shelves and shipments.

The distribution industry includes transportation and consumes many labels but not all of these labels are custom. Many of these distributors use stock 4×6 labels to label shipments, but if they want to brand these with a custom logo, these custom labels can be made right here in Chicago. Rack labels, product labels, and shipping labels are very common in this business sector.

There are many other businesses in the Chicago area that need custom product labels including cosmetic labels in Illinois and all over the country. So, if you are a business in Chicago and need custom labels, you must realize the demand for custom labels is high. The capacity to meet that demand is even higher. Custom food labels, UL labels, Clean Room labels, tamper evident labels, custom 4 color labels and even cosmetic labels in Illinois and across the country is a competitive area for all of these industries.

Steve Bush asked:


The Working Capital Journal is one of several commercial financing resources which should be reviewed regularly by small business owners to assist in keeping up with the imposing difficulties posed by rapid changes in the business finance funding climate. As noted below, there have been some surprising actions taken by lenders as a direct result of recent financial uncertainties. The increasingly complex and confusing environment for working capital finance is likely to produce several unexpected challenges for commercial borrowers.

The working capital finance industry has primarily been operating on a regional and local basis for many years. In response to cost-cutting that has permeated many industries, there has been a consolidation that has resulted in fewer effective commercial lenders throughout the United States. Most business owners have been understandably confused about what this might mean for the future of their commercial financing efforts, especially because this has happened in a relatively short period of time.

Of course, for some time there have been ongoing complex problems for commercial borrowers to avoid when seeking commercial loans. But what has produced a new set of business finance funding problems is that we appear to be entering a period which will be characterized by even more uncertainties in the economy. With little advance notice by lenders, previous standards and rules for working capital finance and commercial financing are likely to increasingly change.

With the current realization that substantial changes are likely in the near future for commercial finance funding throughout the United States, business owners should make an extended effort to understand what is happening and what to do about it. At the forefront of these efforts should be a review of what actions commercial lenders have already taken in recent months. The Working Capital Journal is one prominent example of a free public resource that will facilitate a better understanding of the responses by business lenders to recent economic circumstances.

By publicizing actions taken by commercial lenders, this will contribute to these two goals, both of which are likely to be helpful to typical business owners: (1) To assist in eliminating or reducing questionable lending practices by highlighting controversial lending tactics. (2) To help business owners prepare for commercial finance funding changes. Sources that currently include The Working Capital Journal are actively encouraging business owners to describe and report their financing experiences so that they can be shared with a broader audience to assist in this effort. Some of the most significant commercial financing changes reported so far by commercial borrowers involve working capital loans, commercial construction financing and credit card financing. A notable situation of concern is that predatory lending practices by credit card issuers have been reported by many business owners. Because they have been excluded from obtaining any new business financing by many banks, some specific businesses such as restaurants are having an especially difficult time recently.

One of the few recent bright spots in business finance funding, as noted in The Working Capital Journal, has been the continuing ability of business owners to obtain working capital quickly by business cash advance programs. For most businesses accepting credit cards, this commercial financing approach should be actively considered. Business cash advances are literally saving the day for many small business owners because most banks appear to be doing a terrible job of providing commercial loans and other working capital finance help in the midst of recent financial and economic uncertainties. For example, as noted above, restaurants are virtually unable to currently obtain commercial finance funding from most banks. Fortunately, restaurants accepting credit cards are in a good position to obtain needed cash from credit card receivables financing and merchant cash advances.

lamara qoqiauri asked:


Finance, Credit, Investments – Economical Categories. Modern Interpretation

 

Scientific works in the theories of finances and credit, according to the specification of the research object, are characterized to be many-sided and many-leveled.

The definition of totality of the economical relations formed in the process of formation, distribution and usage of finances, as money sources is widely spread. For example, in “the general theory of finances” there are two definitions of finances:

1)            “…Finances reflect economical relations, formation of the funds of money sources, in the process of distribution and redistribution of national receipts according to the distribution and usage”. This definition is given relatively to the conditions of Capitalism, when cash-commodity relations gain universal character;

2)            “Finances represent the formation of centralized ad decentralized money sources, economical relations relatively with the distribution and usage, which serve for fulfillment of the state functions and obligations and also provision of the conditions of the widened further production”. This definition is brought without showing the environment of its action. We share partly such explanation of finances and think expedient to make some specification.

First, finances overcome the bounds of distribution and redistribution service of the national income, though it is a basic foundation of finances. Also, formation and usage of the depreciation fund which is the part of financial domain, belongs not to the distribution and redistribution of the national income (of newly formed value during a year), but to the distribution of already developed value.

This latest first appears to be a part of value of main industrial funds, later it is moved to the cost price of a ready product (that is to the value too) and after its realization, and it is set the depression fund. Its source is taken into account before hand as a depression kind in the consistence of the ready products cost price.

Second, main goal of finances is much wider then “fulfillment of the state functions and obligations and provision of conditions for the widened further production”. Finances exist on the state level and also on the manufactures and branches’ level too, and in such conditions, when the most part of the manufactures are not state.

V. M. Rodionova has a different position about this subject: “real formation of the financial resources begins on the stage of distribution, when the value is realized and concrete economical forms of the realized value are separated from the consistence of the profit”. V. M. Rodionova makes an accent of finances, as distributing relations, when D. S. Moliakov underlines industrial foundation of finances. Though both of them give quite substantiate discussion of finances, as a system of formation, distribution and usage of the funds of money sources, that comes out of the following definition of the finances: “financial cash relations, which forms in the process of distribution and redistribution of the partial value of the national wealth and total social product, is related with the subjects of the economy and formation and usage of the state cash incomes and savings in the widened further production, in the material stimulation of the workers for satisfaction of the society social and other requests”.

In the manuals of the political economy we meet with the following definitions of finances:

“Finances of the socialistic state represent economical (cash) relations, with the help of which, in the way of planned distribution of the incomes and savings the funds of money sources of the state and socialistic manufactures are formed for guaranteeing the growth of the production, rising the material and cultural level of the people and for satisfying other general society requests”.

“The system of creation and usage of necessary funds of cash resources for guarantying socialistic widened further production represent exactly the finances of the socialistic society. And the totality of economical relations arisen between state, manufactures and organizations, branches, regions and separate citizen according to the movement of cash funds make financial relations”.

As we’ve seen, definitions of finances made by financiers and political economists do not differ greatly.

In every discussed position there are:

1)      expression of essence and phenomenon in the definition of finances;

2)      the definition of finances, as the system of the creation and usage of funds of cash sources on the level of phenomenon.

3)      Distribution of finances as social product and the value of national income, definition of the distributions planned character, main goals of the economy and economical relations, for servicing of which it is used.

If refuse the preposition “socialistic” in the definition of finances, we may say, that it still keeps actuality. We meet with such traditional definitions of finances, without an adjective “socialistic”, in the modern economical literature. We may give such an elucidation: “finances represent cash resources of production and usage, also cash relations appeared in the process of distributing values of formed economical product and national wealth for formation and further production of the cash incomes and savings of the economical subjects and state, rewarding of the workers and satisfaction of the social requests”.  in this elucidation of finances like D. S. Moliakov and V. M. Rodionov’s definitions, following the traditional inheritance, we meet with the widening of the financial foundation. They concern “distribution and redistribution of the value of created economical product, also the partial distribution of the value of national wealth”. This latest is very actual, relatively to the process of privatization and the transition to privacy and is periodically used in practice in different countries, for example, Great Britain and France.

“Finances – are cash sources, financial resources, their creation and movement, distribution and redistribution, usage, also economical relations, which are conditioned by intercalculations between the economical subjects, movement of cash sources, money circulation and usage”.

“Finances are the system of economical relations, which are connected with firm creation, distribution and usage of financial resources”.We meet with absolutely innovational definitions of finances in Z. Body and R. Merton’s basis manuals. “Finance – it is the science about how the people lead spending `the deficit cash resources and incomes in the definite period of time. The financial decisions are characterized by the expenses and incomes which are 1) separated in time, and 2) as a rule, it is impossible to take them into account beforehand neither by those who get decisions nor any other person”. “Financial theory consists of numbers of the conceptions… which learns systematically the subjects of distribution of the cash resources relatively to the time factor; it also considers quantitative models, with the help of which the estimation, putting into practice and realization of the alternative variants of every financial decisions take place”.

These basic conceptions and quantitative models are used at every level of getting financial decisions, but in the latest definition of finances, we meet with the following doctrine of the financial foundation: main function of the finances is in the satisfaction of the people’s requests; the subjects of economical activities of any kind (firms, also state organs of every level) are directed towards fulfilling this basic function.

For the goals of our monograph, it is important to compare well-known definitions about finances, credit and investment, to decide how and how much it is possible to integrate the finances, investments and credit into the one total part.

Some researcher thing that credit is the consisting part of finances, if it is discussed from the position of essence and category. The other, more numerous group proves, that an economical category of credit exists parallel to the economical category of finances, by which it underlines impossibility of the credit’s existence in the consistence of finances.

N. K. Kuchukova underlined the independence of the category of credit and notes that it is only its “characteristic feature the turned movement of the value, which is not related with transmission of the loan opportunities together with the owners’ rights”.

N. D. Barkovski replies that functioning of money created an economical basis for apportioning finances and credit as an independent category and gave rise to the credit and financial relations. He noticed the Gnoseological roots of science in money and credit, as the science about finances has business with the research of such economical relations, which lean upon cash flow and credit.

Let’s discuss the most spread definitions of credit. in the modern publications credit appeared to be “luckier”, then finances. For example, we meet with the following definition of credit in the finance-economical dictionary: “credit is the loan in the form of cash and commodity with the conditions of returning, usually, by paying percent. Credit represents a form of movement of the loan capital and expresses economical relations between the creditor and borrower”.

This is the traditional definition of credit. In the earlier dictionary of the economy we read: “credit is the system of economical relations, which is formed while the transmission of cash and material means into the temporal usage, as a rule under the conditions of returning and paying percent”.

In the manual of the political economy published under reduction of V. A. Medvedev the following definition is given: “credit, as an economical category, expresses the created relations between the society, labour collective and workers during formation and usage of the loan funds, under the terms of paying present and returning, during transmission of sources for the temporal usage and accumulation”.Credit is discussed in the following way in the earlier education-methodological manuals of political economy: “credit is the system of money relations, which is created in the process of using and mobilization of temporarily free cash means of the state budget, unions, manufactures, organizations and population. Credit has an objective character. It is used for providing widened further production of the state and other needs. Credit differs from finances by the returning character, while financing of manufactures and organizations by the state is fulfilled without this condition”.

We meet with the following definition if “the course of economy”: “credit is an economical category, which represents relations, while the separate industrial organizations or persons transmit money means to each-other for temporal usage under the conditions of returning. Creation of credit is conditioned by a historical process of fulfilling the economical and money relations, the form of which is the money relation”.

Following scientists give slightly different definitions of credit:

“Credit – is a loan in the form of money or commodity, which is given to the borrower by a creditor under the conditions of returning and paying the percentage rate by the borrower”.

Credit is giving the temporally free money sources or commodity as a debt for the defined terms by the price of fixed percentage. Thus, a credit is the loan in the form of money or commodity. In the process of this loan’s movement, a definite relations are formed between a creditor (the loan is given by a juridical of physical person, who gives certain cash as a debt) and the debtor.

Combining every definition named above, we come to an idea, that credit is giving money capital of commodity as a debt, for certain terms and material provision under the price of firm percentage rate. It expresses definite economical relations between the participants of the process of capital formation. Necessity of the credit relations is conditioned, from one side, by gathering solid quantity of temporarily free money sources, and from the second side, existence of requests of them.

Though, at the same time we must distinguish two resembling concepts: loan and credit. Loan is characterized by:

·         Here, the discussion may touch upon transmission of money and also things form one side (loaner) to another (borrower): a)under the owning of the borrower and, at the same time, b) under the conditions of returning same amount or same quantity and quality of the things;

·         The loaning of money may bear no interest;

·         Any person may take part in it.

With the difference with loan, credit, which is somehow a private occasion of the loan, represents:

·         One side (loaner) gives to the second one (borrower) only money, and _ for temporal usage;

·         It may not bear no interest (if the assignment doesn’t foresee something);

·         In it creditor is not any person, but a credit organization (at the first place, banks).

So, a credit is the bank credit. To our mind, it is not correct to use “credit” and “loan” as the synonyms.

Banking crediting is the union of relations between bank (as a creditor) and its borrower. These relations touch upon:

a)      Giving a certain amount of money to the borrower for definite purpose (though, we meet with the so-called free credits, aims and objects of crediting are not appointed in the assignment);

b)      Its opportune returning;

c)      Getting percentage rate from the borrower for using the sources under his/her disposal.

The essential foundation of the credit essence and its important element is existence of trust between the two sides (in Latin “credo”, from which comes the word “credit”, means “trust”).

From the position of circulation of money forms (in the abstraction, historical process of formation economical relations and social budget and banking systems expressed by them) comparing different definitions of finances and credit, the paradox conclusion appears: credit is the private occasion of finances. And truly, from the position of movement of the money forms, finances represent the process of formation and usage of the funds of cash means. Very often such movements are fulfilled without returning, but sometimes, it is possible to give loans from the budget for the investment projects of other needs. Also, when a manufacture or corporations use their cash funds and we mean the finances of industrial subject, such usage may be realized as inside the manufacture or corporation (there is no subject about returning or not returning of the usage), so gratis under conditions of returning. This latest is called commercial form because of transmitting the sources to others, but even in this occasion, it is the element of financial system of the manufacture and corporation.

From the point of cash means movement, main character of credit is the process of formation and usage of the funds of cash means under the conditions of returning and, as a rule, taking the value-percentage. If gating the credit value doesn’t take place (even in the exceptional occasions), according to the movement form, credit becomes a private occasion of finances, as from the net financial funds (consequently from the state budget) the loans which bear no interests may be used. If gating credit value takes place, by the appearance form, credit is discussed to be financial modification.

From the historical point of view, finances (especially in the sort of the state budget) and credit (beginning with usury, later commercial and banking) were developing differently for considering credit to be the part of finances. Though, from the genetic-historical point of view, previous loaners, before giving loan, needed gathering the permanent capital not returning, that is the net financial foundation. The banks analogously needed concentration of the important own capital for influxing the consumers’ means and for getting higher percentage rate under the conditions of returning. Herewith, exactly on the financial basis, in the sort of financial fund (which later partially becomes loan fund) part of the bank capital appears to be the reservation (insurance) part of the fund, which by nature is financial and not loan. So notwithstanding the essential distinctions between finances and credit form the genetic-historical point of view, credit appears to be formed from finances and represent their modification.

From the essential position of expressing economical relations of finances and credit, we meet with cardinal distinctions between these two categories. Which mostly expressed by the distinction of the movement forms notwithstanding they are returnable or not. Finances express relations in the aspects of distribution and redistribution of social product and part of the national wealth. Credit expresses distribution of the appropriate value only in the section of percentage given for loan, while according to the loan itself, a only a temporal distribution of money sources takes place.

Herewith, there is a lot of common between the finances and credit as from the essential point of view, so according to the form of movement. At the same time, there is a significant distinction between finances and credit as in the essence, so in the form too. According to this, there must be a kind of generally economical category, which will consider finances and credit as a total unity, and in the bounds of this category itself, the separation of the specific essence of the finances and credit would take place.

Funding of the cash means is common to the researched economical categories. It takes place in any separate system of finances and credit, which have been touched upon during the analyses of defining finances and credit. Word combination “funding of the cash sources (fund formation)” reflects and defines exactly essence and form of economical category of more general character, those of finances and credit categories. Though in the in economical texts and practice, it is very uncomfortable to use a termini, which consists of three words. Also, “unloading” with an information hardens greatly its influxing into the circulation even in the conditions of its strict substantiation and thoroughness.

In the discussing context we consider:

1)      wide and narrow understanding of economical category of the finances;

2)      discussing finances in narrow understanding under general traditional meaning;

3)      discussing finances, as funding of the cash means, in wide understanding, which concerns finances – in narrow meaning and credit – in complete meaning.

Termini “funding” and its equivalent “fund formation” are used by us as the purposeful structuring of cash means, which is based on two poles – accumulation of money sources (gathering) and its usage for definite purpose in the way of financing and crediting.

We have established a new termini – “finance-investment sphere” (FIS). Analyses about interrelation of finances and credit made by us give us an opportunity of proving, that in the given termini, the word “financial” is used with the meaning of funding cash sources, its purposeful structuring. In this process we consider at the same time financial, credit and investments’ economical categories.

Let’s sum up middle results of discussing new concept – “finance-investment sphere” and discuss its investment consisting parts.

The concept “investments” was brought into the native economical science from the West. In the Soviet economical science they for a long time used in the place “investments” the termini “capital placement”, which expressed the usage of the industrial factors in the sphere of real industrial activities during realization of capital projects. From one glance, this termini in its concept is identical to the “investments”, consequently it is possible to use them as synonyms. Though the termini “investments” and “investing” have the advantage towards the termini “capital placement” from linguistic and philological points of view, because they are expressed with one word. This is not only economical and comfortable in the process of working with the termini “investment” itself, but also it gives an opportunity of termini formation. More concretely: “investment process”, “investment domain”, “finance-investment sphere” – all these termini are much more acceptable.

Changing native economical termini with foreign ones is purposeful, if it really matters (by keeping parallel usage of the native termini for the inheritance). Though we must not change native economical termini into foreign ones all together, when by ordinal traditional language easy to explain private and narrow concrete processes and elements get their own termini. The “movement” of these termini is approved in the narrow professional bounds, but their “spitting out” into the economical science may turn economical language into the tangled slang.

Let’s discuss termini – “investment” and “capital placement’s” usage in the economical literature.

Investments are placement of funds into the main and circulation capital for the purpose of getting profit. “Investments in material assets – are the placements of funds into the mobile and real estate (land, buildings, furniture and so on). Investments in financial assets are the placements of funds into the securities bank accounts and other financial instruments”.

We don’t meet with the termini “investments” in the earlier economical dictionary, but we meet the combined termini “investment policy” – the union of the industrial decisions, which guarantee main directions of the capital investments, the activities of their concentration in the determinant suburbs, on which the reaching of planned rates of development of the society production is depended, balancing and effectiveness, getting more and more production and profit of the national income for every lost Ruble”. For today, in the most actual definitions, the capital investments are bounded only by financial means, when not only financial, but also the investment of natural, material-technical and informational resources takes place. Labour resources take an actual place in the investment process. They themselves fulfill this or that investment process.

A positive side of the discussed definitions is that they connect investment policy and capital placements (investments):

-          economical development according to the key directions to the concentration;

-          providing high rates of economical growth;

-          raising an economical effectiveness, which is expressed:

a)      by growing the throw off of the production and national income for every lost Ruble;

b)      by fulfilling the branch structure of the investments;

c)      by improving their technological structure;

d)     by optimization of their further production structure.

Compared with such definition of the investments (capital placement) the definition of investments in the dictionary attaching the “Economics” seems to be unimproved: “investments  – the expenses of gathering production and industrial means and increasing material reserve”. In this definition current expenses (production expenses) are mixed with the investment (capital) expense. Also, not the investment expenses but (though the investments are followed by the appropriate expenses) exactly advancing. It differs from the expenses by that the means (means) are put by returning the advanced values, also, under the conditions of growth, to which the concept-advanced capital is corresponding. the advancing may be realized in the money, natural-material and informational forms.

Except the termini “investments”, there are two more termini related with the investment. They are shown below.

 “Human capital investment” – any activity provided for rising the workers labour productivity (in the way of growing their qualification and developing their abilities); at the expenses of improving the workers’ education, health and raising the mobility of the working forces”. It is very useful to use the mentioned termini, though it needs one correction: the human capital investments do not concern only workers, but also the servants, representatives of every kind of labour.

“Investment commodity, capital goods – a capital.”

In the official manuals of political economy of the reformation time the capital investments are discussed as “expenses for creating new main funds and widening, reconstruction and renewing the active ones”. In this definition the investments (capital placements) during separation of the forms (types) of further production of the main funds are bounded only by main funds (without increases of the circulation funds and insurance reserves): a) creating new ones; b) widening; c) reconstruction; d) renewing. Also, the concept of the industrial gathering appears, at the expenses of widening of basic, circulation funds and also insurance reserves takes place”.

You’ll meet below the definitions of investments from “the course of economy”: the investments are called “placements of fund into the basic capital (basic means of production), reserves, also other economical objects and processes, which request long-termed influxing of material and cash means. “According to the division of capital into physical and money forms, the investments too must be divided into material and cash investments”.

They apportion investment commodity, to which belong industrial and nonindustrial building objects, vehicles purposed for changing or widened technical park and the furniture, increasing reserves and others.

“They call the total investments of production an investment product, which is directed towards keeping and increasing the basic capital (basic means) and reserve. Total investments consist of two parts. One of them is called the depreciation; it represents important investment resources for compensation of renewal till the level of before industrial usage, wearing out and repairing of the basic means. Second consisting part of the total investments is represented by net investments – capital investments for the purpose of increasing basic means”. Depreciation is not a compensation resource of wearing the basic funds out, but it is the purposeful financial source of such resources.

Human capital investment is “a specific kind of investments, mostly in education and health protection”.

“Real investments are the investments in the economical branches and also, they are kinds of economical activities, which provide influxing the increases of real capital, that is increasing material values of the industrial means”. We can agree with such definition with one specification that material and nonmaterial values too belong to the real capital (wealth), consequently science-researching experimental-construction results, various information, education of he workers and others. Such service as organization of the excitable games, also the service of redistribution social wealth from one private person to another (except charity).

“Financial investments represent placement of funds into the shares, obligations, promissory notes, other securities and instruments. Such investments, of course, do not give increases of the real material capital, but they help getting profit, consequently at the expenses of changing the course of the securities in the time of speculation, or distinguishing the course in different places of sell and purchasing”. We share wholly such definition, hence it follows that financial investments (if it is not followed by real investments as a result) do not increase real material wealth and real nonmaterial wealth. According to this context, the expression below is very important: “we must distinguish financial investments, which represent placement of the funds in the ways of selling and purchasing the securities for the purpose of getting profit and financial investments, which become cash and real, moved to real physical capital.”

In the “economical course” quoted before long and short-termed investments are separated. Recognizing the existence of the bounds between them, the authors ascribe short-termed investments to “one month or more” investments. If we get such conditioned criteria, that we can call the investments which overcome the terms of some months, long-termed ones, which is very doubtful and we don’t agree with it. A long-termed character of the fund placement is a significant feature of the investments (short-term doesn’t combine with the concept of investments). Principally, it would be better to point out quick compensative, middle termed compensative and long-termed compensative investments:

-          less then 6 months – quick compensative;

-          from 6 months up to the year and a half – middle termed compensative;

-          more then the year and a half – long termed compensative.

We stopped at the definition of the investments in the capital work “economical course” for the special purpose, as, in it the author tried to discuss the concept of investments systemically and quite completely, herewith the book is published just now.

We’ll return to the discussion the definition economical category of “investments” in different publications in the following chapter. The definitions given here are quite enough for having a notion of the level of lighting up the given category in the economical literature.

What conclusions may be made according the definition of the mentioned economical category in the published works, except the made notions and specifications?

There is quite deeply, concretely and thoroughly defined the concept of “investments”, different definitions in the economical literature; but mostly in every works about the investments discussed by us until now, there is not opened the essence of investments as an economical category. In every monograph, even if it has a title investment, as an economical category, there is given only the definition, concept of investments. But, as the Academician Vasil Chantladze explains, “a concept is a discussion, which proves something about the distinguishing feature of the researched object. A concept out of much essential characteristic features represents only one, and essential in it is only – definition”.

But the categories are much wider; it is “a key, the most fundamental concept of every science”. Economical categories theoretically represent real, objectively existed productive relations. A category is the defining of occasions of existed characters, connections, relations of the objective world. Generally, any educational process is fulfilled by the categories, which give opportunities for dividing the processes and occasions semantically, for expressing the definitions of a subject and realize their specific peculiarities and economical relations of a material world.

Our goal is exactly to substantiate investments – as an economical category and also, as a financial category in the narrow understanding.

Here we apply for another manual thesis made by the academician Vasil Chantladze: “every financial relation is an economical one and every financial category is and economical one, but not every economical relation and economical category is financial relation and financial category”.

In the process of defining the investments, it is important to take in mind the sides of resources, expenses and incomes, because investment, from one side, is the result of the manufacture’s activity, and, from another one, – a part of income, which, in this case, is not used for usage.

Another occasion: it is advisable to discuss investments in two aspects: as a category of reserve and flow, which will reflect exactly the connection between “placement of funds” and “investments”.

As we’ve mentioned above, not long ago, in the well-known Soviet literature the concepts of “the placement of funds” and “investments” were accepted to be the synonyms and concerned to be investment of sources for further production of the main funds and formation of the turnover funds. We meet with such understanding of the concept of “investment” (here, they separate three types of the investment expenses: investments in the basic capital of investments, investments in the house building and investments in the reserves) in the modern economical publications and it is mostly used on the macro level during a statistical analyze of economical processes. In this concrete occasion investment is the category of reserve.

According to the aspect of flow the investments may be discussed in the process of analyzing industrial activity, when it is necessary to learn the variety of the economical relations related with the investments’ further production and formation, sources, objects and subjects, that is on the micro level.

Main distinguishing criteria of different methods of approach towards the concept of “investment” the aspect of prolonging of measuring this showing. Is it possible or not to measure the investment showing separate from the term factor (the norm of gathering, the volume of capital property, the reserves of production and so on). If it is possible, then it is the category of reserve, and if it is not, then it is measured in the section of time and belongs to the category of flow.

Thus, investment, as an economical category, is quite consuming concept. It concerns the elements defining the regularities of function and regulation of the investment domain, privately:

First, resources and values put into the industrial activity. Here, investments may be realized in the following ways:

1.      mobile and real estates (buildings, constructions, furniture and other material values);

2.      cash sources, purposeful bank accounts, credits, shares and other long-termed securities;

3.      owners rights according to the author’s rights, licenses, Now-How, experience and other intellectual values;

4.      the rights for using land and other natural resources, also other owners rights.

Notwithstanding any forms, investments are results of capital gathering. Leading investments – regularity of gathering defines its volume and dynamics and, generally, whole investment activity.

Second, the incomes ruling volume and dynamics of the resource investment. Herewith, we must underline the circumstance, that the process of getting profit, the regularity of its creation, isn’t a constant of the concept “investment”. The factors of production (also the conditions of exploitation of capital values) and selling (market conjuncture), also the process of capital gathering is the leading and important condition only for the investment formation. Though, we underline again, that the process of getting and distributing the income is a significant component of the investment activity.

The transformation of investments makes the basis for the investment activity, which concern the following circles: resources – investment (expense) – capital property – income. The practice of realization such circles of the investments transformation is exactly the investment activity (investing). The investment activity, except the investments itself, concern motivation and stimulation of the capital gathering, relations of capital gathering and ruling, also, totality of the defined level of profitability on the capital and the goals of capital growth.

According to the mentioned above, in the definitions of the investment as economical category sometimes the needed exactness and clearness is not felt, some categories of the wealth are represented tightly enough. For example, real prosperity is bounded only by material estimation. This leads us to the unvalued investment resources in the era of transformation industrial society into the investment one; also to the recognition of yet uninvolved valuable scientific researches in the production, securities turned into speculation objects, and unreal property in the consistence of one and the same parts; to there equalization. On the basis of the made analyses, we can cite a wide definition of the investments together with the leading categories.

Investment resources – are values, invested into this or that project in this or that kind for the purpose of getting profit beginning with material ones, finished with cash.

Kinds of the prosperity are equal to the kinds of the investment resources and is divided into real and cash, consequently into financial resources.

Real investment resources concern all kinds:

-          natural resources;

-          labour resources;

-          material resources, the usage of which is possible in the economical development (buildings, constructions, vehicles and furniture, transport and communication means and so on;

-          investment resources (in the widest understanding, that is from scientific-research and experimental-construction works, till the education potential of the society and till all kinds of gathering useful information, written about every possible, that is typing and electronic bearer).

Cash, consequently financial resources concern every cash means for usage in this way in definite conditions or directed in the sort of investments.

Cash means (resources) turn into the financial resources in the case of structuring of funds of purposeful destination foreseen for investments of this or that kind.

After defining investment resources we can make wide definition of the investments as economical category.

Investments – are the placements of real, financial and intellectual resources into the projects, the fulfillment of which leads us to getting the increases from real wealth, in the material and informational forms. It is followed by a cash (financial) prosperity or its increases (at the expenses of the distribution of the cash means).

As an economical category, investments express economical relations, which are created in the ways of using and formation of the investment resources between the participants of the investment process for the purpose of improving and widening of the enterprise.