Personal Selling: Personal selling involves persuading an existing of a potential customer through oral communication, to purchase the goods and service offering of the company. It aims to develop a rapport with the customer and because of that, enjoys a high success rate. Different mode' of personal selling include face to face conversations, tale marketing, chatting on the internet. However, personal context through face to meetings are more successful in increasing business and building a repose with the customer, when compared to the other ways.
Personal Selling is suitable under following conditions:
(i) When the company has insufficient funds to conduct an adequate advertising programmer.
(ii) When the market is geographically concentrated, that is several customers are located very close to each other in one particular region.
(iii) When major purchases are made by a few large customers or a few companies.
(iv) When the personality of a sales person is necessary to establish repo.
(v) When the product is made for customers purpose that is it has to be designed in such a manner as to satisfy the needs of the particular customer only.
Steps in Personal Selling:
(i) Locating the prospective customer
(ii) Creating the sales presentation or conducting the sales interview.
(iii) Handling objection
(iv) more... | Marketing Environment | ||||||
| Micro Environment | Macro Environment | |||||
| (i) Company | (i) Demographic Forces | |||||
| (ii) Suppliers | (ii) Economic Forces | |||||
| (iii) Marketing Channels | (iii) Natural Forces | |||||
| (iv) Intermediaries | (iv) Technological Forces | |||||
| (v) Customers | (v) Political forces | |||||
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New Product and Development
Introduction
When a company finds itself in a situation where it may be advised to develop a new product, when the sales of the existing product is declining over the past few years. The fixed costs involved in developing a new product for a market are very high and failure in operating this service successfully can result in losses for the company. New product development is not an easy job. It is an extremely difficult and time consuming process. The role of marketing research in new product development is not as simple and straightforward as it may happen.
Scope of Product Planning and Development
· Design
· Label of the Product
· Service of the Product
· Repairing Services
· Change in the Product mix
· Nature of the Product
· Cost Planning
· Cost Management
· Price of the Product
· Color of the Product
· Name of the Product
· Quality and Quantity
The following steps would help a company to successfully develop a new product;
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Consumer Behavior
According to Walter and Paul: Consumer behavior is the process whereby individuals decide whether, what, when, where, how and from whom to purchase goods and services".
According to Kurtz and Boone: Consume behavior consists of the acts of individuals in obtaining and using goods and services, including the decision processes that precede and determine these acts. It is the decision making process and physical activity that individuals engage in while evaluating, acquiring and using goods and services. It is the study of how individuals make decision to spend their available resources on consumption related items. It is an attempt to understand and predict human behavior in the buying role. As a discipline or as a field of study it is comparatively new and also multidisciplinary in nature. It has drawn heavily from different disciplines like Economics Psychology, Sociology etc. Different goods and services have varying magnitudes of search, experience and credence (SEC) qualities. The search qualities of a good or a service can be estimated before the purchase, while the experience qualities can be evaluated only after purchase and consumption Paraguayan, Zenithal and Berry in their article "A Conceptual Model of Service Quality and its Implications for Future Research", outlined ten dimensions of service quality and categorized them under the search, experience and credence qualities as shown on.
Dimensions of SEC qualities
Channel of Distribution
According to Slant-on: "A channel of distribution for a product is the root taken by the title to the goods as they move from the producer to the ultimate consumer or industrial user".
According to McCarthy: "Any sequence of institutions from the Producer to Consumer, including one or any number of middlemen, is called a Channel of Distribution.
Channels of distribution are one of the most powerful and important marketing mix elements. They play a major role in making a finished product available and accessible to the ultimate consumers and industrial buyers. Once the product is ready for the market the producer has to find some way to reach the product from the point of production to the point of consumption. A marketing channel is the path that is treated in the direct or indirect transfer of title to a product as it moves from producer to consumer. It consists of a network of institutions or series of intermediaries that are used to reach a market.
Channels Function:
(i) Transfer of title to the goods involved.
(ii) Physical movement of goods from point of production to point of Consumption.
(iii) Storage of Goods.
(iv) Providing Product information. Customer Service etc.
Distribution of Consumer Goods:
(i) Producer \[\to\] Consumer
(ii) Producer \[\to\] Retailer \[\to\] Consumer
(iii) Producer \[\to\] Wholesaler \[\to\] Retailer \[\to\] Consumer
(iv) Producer \[\to\] Agent \[\to\] Retailer \[\to\] Consumer
(v) Producer \[\to\] Agent \[\to\] Wholesaler \[\to\] Retailer \[\to\] Consumer
Classification of Middleman:
Wholesaler
According to American .Marketing Association: "Wholesalers sell to Retailers or other merchants more...
Pricing Decision
Introduction
Appropriate price of a product can be fixed by conducting extensive marketing research and through test marketing technique. The price policies serve as guideline to the marketing manager in price fixation. They provide the broad framework within which the management of a company administrates the prices in order to match market needs. However, there should be consistency in the pricing policies because frequent fluctuation in the pricing policies will adversely affect the long term interest of a company. Again this does not imply that there should be no periodical review of the pricing policies. The ultimate objective of framing a national pricing policy is to generate sale as well as profits, keeping a long term view of pricing policy as follows?
(a) One Price Policy: For the same product same price is charged from all customers throughout the country. There is no discrimination on any ground. Discounts and allowances are governed on equal terms. This policy when adopted enables the company to give confidence to the customers and expand its markets.
(b) Variable Policy: For the same product different price is charged from different customer group. Discount allowances are offered on equal terms. Variable pricing is very common in case of retail trade.
Based on Price Level
(a) Price in line: When Product differentiation through branding is minimum and when the buyers and sellers are well informed a free market economy prevails and force loses its importance. In such a situation the goods are sold at the traveling market price. However competition methods like advertising, sales promotion, packaging etc.
(b) Market Price: Price always goes with quality, durability, reliability, performance and after-sale services .In fact the customers are willing to pay a higher price for a high quality product because of its reliability of service over a longer period of time.
(c) Market Minus: The large retail stores, shopping malls, supermarkets etc. can sell their goods at a low price because the facilities secured by them can be shared with customers. The facilities more...
Marketing Research
Introduction
Market research is the process of systematic gathering, recording, and analyzing of data about customers, competitors, and the market. Market research can help create a business plan, launch a new product or service fine tune existing products and services, expand into new market etc. It can be used to determine which portion of the population will purchase the products services, based on variables like age, gender, location an income level.
According to Philip Kotler: "Marketing research is systemic problems analysis model building, aid, fact finding for the purpose of improved decision making and control in the marketing of goods and services.
Nature of marketing research
(i) Research on Product
(ii) Research on Services
(iii) Research of new markets
(iv) Research of Sales Method
(v) Research of Sales Policies
(vi) Research on Consumer Behavior
(vii) Research on Product Pricing
(viii) Research of Advertising
(ix) Research of New Product.
(x) Research on Product Life Cycle.
Market research may be used in the following ways
(i) Market and their potentialities: A study of the market, its location and its potentialities.
(ii) Consumers: Information concerning who they are, where they live and their buying habits, motives and preferences.
(iii) Dealers: An investigation of present dealers and their business methods with a view more...
Modern Marketing
Definition
According to "Philip Kotler: "Marketing is a social and management process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.
According to American Marketing Association; "Marketing is the performance of business" activities which direct the flow of goods and services from producer to consumer.
Marketing can be described as "Getting the right goods, at the right time, at the right place, with the right communication, to the right people at the right price.
Modes of Modern Marketing
(i) Mobile banking
(ii) Display advertising
(iii) E-mail marketing
(iv) Interactive marketing
(v) CRM (Customer Relationship Management)
(vi) Web advertising
(vii) Web Marketing
(viii) E- Marketing
(ix) Online Marketing
(x) Brand Management
Online Marketing: Online marketing is the new way of performing the task of marketing, made feasible by the advent of new technology, namely the internet. On-line marketing is a form of direct marketing and entails the use of internet technologies to reach out to customers. Personal computers televisions, cellular phones or personal digital assistants can be used to go online.
Relationship Marketing: Relationship marketing is a form of marketing developed from direct response marketing campaigns conducted in 1960. more...
National Income
National Income
· National income is the flow of with in goods and services produced in an economy in a particular period-a year National Income is denned as money measures of the net aggregates of all commodities and services accruing to the inhabitants of a community during a specific period.
· The concept of National income has been interpreted in three ways ?
(a) National product
(b) National Dividend
(c) National expenditure
(a) National product: It consists of all the goods and services produced by the community and exchanged for money during a year. It does not include goods and service which are not paid for such as hobbies, housewives services, charitable work etc.
(b) National Dividend: It consists of all the incomes in cash and kind, accruing to the factors of production in the course of generating the national product. It represents the total of income flow which will exactly equal the value of the nation product turned out by the community during the year.
(c) National Expenditure: This represents the total spending or outlay of the community on the goods and services produced during a given year.
· Since income is the source of expenditure, national expenditure constitutes the disposal of national income which is evidently equal to it in value.
· Modern economists consider national income as a flow in three forms income, output and expenditure. When goods are produced by the firms factors of production comprising households are paid income, these income receipts are spent by the house hold sector on consumption and their savings are mobilized by the producers for investment spending.
Taxation in India
Taxes in India are levied by the three?tier government Central government, the State government and the Local government. The authority to levy a tax is derived from the Constitution of India which allocates the power to levy various taxes between the center and the state.
An important restriction on this power is Article 265 of the Constitution which states that "No tax shall be levied or collected except by the authority of law". Therefore each tax levied or collected has to be backed by an accompanying law, passed either by the parliament or the state legislature
Indian tax Structure:
Direct Taxation:
Personal Income Tax: Personal income tax is levied on the income of Individuals, Hindu families, unregistered firms and other associations of people. Like all other countries, India has a progressive income tax.
The main characteristics of the personal income tax in India are?
(i) It is levied on net income earned annually
(ii) Agricultural incomes are not taxable
(iii) Income of religious and charitable trusts are exempted
(iv) For calculating income tax a slab system is followed. Progressive taxation is introduced by taxing the successive slabs or slices of income at rising rates.
(v) The income tax in India has the feature of built in flexibility. It is elastic the sense that with the growth of income the tax revenue automatically increases.
Capital Gains Tax:
It is a tax on the gains from the sale, exchange or transfer of capital assets. It was introduced in 1947 and established in 1950.
· The capital gains tax are taxed more... Current Affairs CategoriesArchive
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