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Pricing Decisions

Price is the only element of the marketing mix that generates revenue and it is also the most important determinant of the profitability of the business by way of sales volume. It is the competition that contributes the maximum to the importance of pricing. customers compare the prices of various products to decide a particular brand to purchase. Factors Influence Pricing: There can be two sets of factors influencing the pricing decisions of any enterprise. These factors can be economic, psychological, quantitative or qualitative in nature. The two sets of factors are Internal Factors: It is related to the firm. It includes Corporate objectives of the firm. Image sought by the firm through pricing. Price elasticity of demand of the product. Costs of manufacturing and marketing. Stage of the product in its life cycle. The intensity of competition. The characteristics of the product. The volume of production and economies of scale. External Factors: It is related to the macro-environme

Market Segmentation

A market is the aggregate of a given product. These consumers vary in their characteritics and buying behaviour. It is thus natural that many different segments occur within a market. Marketers usually divide the heterogenous market for any product into different segements of relatively homogeneous characteritics. The process of fragmenting whole market into sub-markets is known as market segmentation. Benefits of Market Segmentation: Segmentation helps the marketer to distinguish one customer group from another  within a fiven market and therby enables him to decide which segment should form his target market. It enables the marketer to identify the real needs of the target buyers and to develop marketing offers that are most suited to each group. It makes the marketimng effort more focused, more efficient and economic by concentrating on segments that are most profitable and will be the customers of the market offer. It benefits the customer and they can buy specialised products that

Foreign Direct Investment

Foreign Direct Investment (FDI) is the investment by a nation in another nation in manufacturing or business either by purchasing a corporation or extending its business abroad. Usually, it is through securities and shares. According to the Financial Times, "Standard definitions of control use the internationally agreed 10% threshold of voting shares, but this is a grey area as often a smaller block of shares will give control in widely held companies. Moreover, control of technology, management, even crucial inputs can confer de facto control." According to the WTO, "FDI occurs when an investor based in one company (the home country) acquires an asset in another country (the host country) with the intent to manage that asset. initial control was a main criterion for the foreign inward investment, but that constituted control was not man-made specific. Thus, this moderation was done. The current definition of FDI as endorsed by the IMF (1993) and OECD (1996) has shifted

Managing Technological Change

According to Everett M Rogers, "Technology is designed for instrumental action that reduces the uncertainty in the cause-effect relationships involved in achieving the desired outcome." Technology change rates are at a rapid pace. With the emergence of advanced technologies, such as machine learning, predictive analytics, artificial intelligence, big data and so on, business leaders face major obstacles in enacting such technologies. Managing technological] changes is not easy and the size of the organization increases this issue also multiplies. Innovators have to deal with a dozen concerns, from dealing with employee issues to generating actual revenue. While in each organization there will always be early adopters and laggards, trying to take everyone into consideration lead to making an overall effective strategy. Impact of Technology on Business: Technology has a wide range of possible impacts on management in the context of business which are as follows: Reduced Operati

Factors Affecting Pricing Decision in International Market

 The three primary factors that determine pricing decision in international marketing are: Cost of the product or service. CompetitionÄ€ for the product or service in the foreign market. Demand for the product in the overseas market. Also, some other specific factors mentioned below, are to be considered in pricing for product and services in international marketing. Exchange rate changes in relations to the target market. International transportation cost-keepingÄ€ in view the mode of transport used. The International channel of distribution costs in respect of the product concerned. Nature of international market regarding trade practices and marketing environment, both at micro and macro levels. Government trade policies and price regulations including anti-dumping legislation. Varying inflation rates and interest rates in different countries. Global marketing requirements which may warrant charging the same price in all overseas markets. These factors should be kept in view while for

Adminsitrative Theory

 Henry Fayol of France developed this theory. This approach focuses on principles that can be used by managers to coordinate the internal activities of organizations like planning, organizing, directing and controlling. It explained the process of managing an organization from the top managerial perspective. Henry Fayol has given fourteen principles of management which are as follows: 1. Division of Work: Henry Fayol has stressed the specialization of jobs. He recommended that work of all kinds must be divided and subdivided and allotted to various persons according to their expertise in a particular area. Subdivision of work makes it simpler and results in efficiency, which also leads to specialization. 2. Authority and Responsibility: Authority and responsibility are co-existing, without them, there is irresponsible behavior. If authority is given to a person, he should also be made responsible. In the same way, if anyone is made responsible for any job, he should have concerned auth

Entrepreneurship Developement

Entrepreneurship development is the process of enhancing the knowledge and skills of entrepreneurs with the help of various classroom and training programs. The aim of entrepreneurship development (ED) is to increase the number of entrepreneurs in the country. It helps in economic development by increasing capital formation and employment. It also promotes balanced regional growth in the country. Theories of Entrepreneurship development: 1. Economic Theory: The theory defines the relationship between economic growth and entrepreneurial development. It postulates that only when there are economic incentives, the entrepreneur gets motivated to take the project. Hence, there should be favorable economic conditions. Various economic incentives take the form of concessional tax policies, industrial policies, easy access to sources of finance and raw materials, along with the availability of infrastructure access to information about technology and market conditions and technology. 2. Sociol

Branding: Objectives and Advantages

Branding name can recognize the product. Once the name has been recognized, it may run smoothly among the people. The firm wants to create awareness and recognition through branding strategies. The question arises what is a ‘brand’? A brand is a name, term, sign, symbol or design or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of others. The part of the brand which can be vocalized (the utterable) is known as the brand name. That part of the band that is given legal protection for exclusive use by the seller is known as the trademark. A trademark may, thus, include any word, name, symbol or design. A trademark registered fo a service is known as a service mark.  Objectives of Branding: The aim of branding a product or service is the same everywhere in the world. The three major objectives of branding are as follows: Create identification and brand awareness. Guarantee a certain level of quality

Why do We Celebrate Engineer's Day on September 15th ?

Engineer’s day is celebrated in India on September 15 th of the every year to commemorate the birthday of the legendary civil engineer Sir Mokshagundam Visvesvaraya (popularly known as Sir MV )   Sir M Visvesvaraya was internationally recognized for his genius in harnessing rain water resources in India. He designed automatic weir water flood gates , was first installed in 1903 at the Khadakwasla Reservoir, Pune. He also designed flood protection system for Hyderabad, giving him celebrity status in India. He was responsible for the construction of  Krishna Raja Sagara  dam in Mysore as a chief engineer. He served as a dewan of Mysore State. He turn-around of the Bhadravati Iron and Steel Works, setting up of the Mysore Sandalwood Oil Factory and the founding of the Bank of Mysore. To remember his remarkable contributions, we celebrate engineers days on his birthday (September 15 th )

Management: Introduction, Elements, Characteristics and Significance

 Management is the art of managing people and resources at the organization. It gives various theories, tools and techniques to manage and increase the productivity of the organization. According to P Drucker, "Management is a multipurpose organ that manages a business and manager manages workers and work." According to Heinz Weihrich and Harold Koontz, "Management is the process of designing and maintaining an environment in which individuals working together in groups, efficiently accomplish selected aims." Thus, it is the process of efficiently achieving organizational objectives by efficiently using restricted means and resources. Elements of Management: Management aims at achieving a predefined goal, thus it focuses on effectiveness. Management deals with physical and human resources. Management is a process that is regular and continuous. The principle of management is applicable to all forms of organization, thus it is universal. Management deals with a group