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Personal Selling

 Personal selling consists of individual and personal communication in contrast to mass advertising communication. According to Cundiff and Still , "Personal selling is basically a method of communication. It involves not only individual but also social behavior each of the person in face-to-face contrast salesman and prospect influence the other." It is face-to-face interaction with one or more prospective buyers for the purpose of making presentations, answering doubts and taking purchase orders. Qualities of Personal Selling: Personal selling is the most effective tool at later stages of the buying process in building up brand preference, conviction and buying decision. Personal selling or salesmanship has four main qualities: Personal Interaction: Personal selling creates an immediate and interactive episode between two or more persons. Each party can observe the other's reaction. Cultivation: Personal selling also permits all kinds of relationships to spring up, r

Theories and Approaches of Management

Scientific Management (Taylor's Theory): This theory synthesized and evaluates the workflows of an organization. It aims at enhancing labor productivity and economic efficiency. Thus, it applies science, processes and standards in management. Administrative Theory (Fayol's Theory): Henry Fayol propounded the theory and gave 14 principles for general management and administration . It is also known as administrative theory. It gives a broader concept of the process of management. Bureaucracy (Max Weber): This theory aims at providing a systematic framework of an ideal organization, which strives at achieving economic effectiveness and efficiency. It also structures a company of institutions in a hierarchical form with defined levels of management. Hawthrone Experiments: These were a series of experiments that were conducted in the 1920s. It discovered that laborers are extremely responsive to any form of additional attention given to them by their managers. This theory propo

Organisational Development

Organisational Development (OD) is the act, process or result of furthering, advancing or promoting the growth of an organization. Development is the act, mechanism, consequence or state of development, which in turn means advancing, promoting growth, developing the possibility of improving or improving something. The OD strategy to change treats the organization as a system. it is a logically linked group of elements, principles and ideals. Conversely, it is a grouping or arrangement that interacts or communicates in such a way that a whole is formed. Thus, it views the organization as a whole and forms a relationship between the internal dynamics of the organization with the environment. It deals with interpersonal communication and self-acceptance of developing new abilities and skills. According to Edgar Schein, "An organization is the planned coordination of the activities of a number of people for the achievement of some common explicit purpose or goals through the division

Operation Management

 It involves planning, organizing and directing processes in order to attain higher profitability. Operations management was previously known as production management where the entire focus was on manufacturing. However, today operations management is a multidisciplinary area that works with finance and marketing. It ensures that the labor, material and other inputs are used efficiently. It is based on various disciplines and draws principles from general management. Principles of Operations Management: Dr Richard J Schonberger has developed 16 principles of which are as follows: Visibility Management: Promoting organizational achievement and let the external market learn about productivity, improvement in competency. Fix Cause: Paying attention to the root causes which hamper and obstruct the performance and affect cost. Total Quality Control (TQC): Using only best processes, procedures, materials and other inputs. Pull System: Improving the workflow and cutting down any wastage

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