Category: Marketing

Oligopoly is a market structure in which a few sellers supply all or most of the total market output. Now, let us examine why does oligopolistic tendency arise in the market? There are various reasons for the emergence of oligopoly. 1. Huge Capital Investment: Industries like cement, steel, chemicals, petroleum, aircrafts, ship building, etc., are highly capital intensive and require huge capital investment as well as recurring expenses. ADVERTISEMENTS: The cost and time that new firm will have to face make the entry unviable and unattractive.Consequently, only a few big firms continue to operate in the market, who also enjoy the economies of large scale. Few big firms produce enough to meet the entire demand at a lower cost than a large number of firms dividing this total output. Further,…

A review of the travel literature reveals that travel motivations can fit well into Maslow’s hierarchy of needs model (1943). The model suggests that lower needs in the order of hierarchy warrant priority attention and satisfaction – Maslow’s idea of prepotency. The hierarchy of needs proposed by Maslow can be represented as under:1. Physiological – hunger, thirst, rest, activity2. Safety – security, release from fear and anxiety ADVERTISEMENTS: 3. Belonging and love – affection, giving and receiving love4. Esteem – self-esteem (the need to exhibit strength, achievement, mastery, competence, and independence) and esteem from others (described by notions such as reputation, prestige, status, and recognition) Image Source: heartofavagabond.com5. Self-actualization – personal self- realization ADVERTISEMENTS: From the above list it is clear that the needs are mainly psychological in nature except…

Before you start exporting, you have to do many things. The first and per­haps the most crucial step are to assess the export potential of your enterprise.You may ask yourself why you need to examine you export potential when you are already familiar with your domestic market. Succeeding in your local market is a necessity but not a sufficient condition for entering foreign markets. You should, therefore, begin with an internal audit of your export potential. ADVERTISEMENTS: What is export potential? It is the company’s ability to take advantage of its business opportunities abroad.Export potential is derived from a set of enterprise characteristics such as domestic marketing performance, resources and products. It is, therefore, measurable at the enterprise level. We shall suggest what internal charac­teristics make up a successful exporter.…

The development of international trade can be adversely affected, if the standards adopted by countries to protect Intellectual Property Rights (IPRs) vary widely from one country to another.Furthermore, the ineffective enforcement of such rights can encourage trade in counterfeit and pirated goods, thereby damaging the legitimate commercial interests of manufacturers who hold or have acquired these Rights.The TRIPS Agreement, negotiated in the Uruguay Round, therefore lays down the minimum standards for the protection of OPRs as well as procedures and remedies for their enforcement. Image Source: blog.consultlane.com ADVERTISEMENTS: It establishes a mechanism for consolation and surveillance at the international level to ensure compliance with these standards by member countries at the national level.The obligations of the World Trade Organisation (WTO) Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs) came…

Important purposes behind group formation Group formation has certain objectives. The purpose behind group formation may be task achievement, problem-solving, proximity or other socio-psychological requirements. Group formation is based on activities, interactions and sentiments. 1. Task accomplishment: The basic purpose of group formation is the achievement of certain objectives through task performance. ADVERTISEMENTS: Individuals come closer in order to understand the tasks and decide on the procedures of performance. In any organization, task accomplishment is the reason for which different groups such as an engineering group; marketing group, foreman’s group and personnel group are formed for achievement of the organizations’ goals. Image Source: iysigirl.com When an organization faces some procedural difficulties, concerned groups discuss them and evolve new techniques of production, marketing and other functions. 2. Problem Solving: When people…

Important marketing and technical requirements for good packaging of a product are listed below: Marketing and Technical Requirements 1. Physical protection: i. Resistance against damages (shock, puncture, drop, crush)ii. Dimensions Image Source: jlt.com 2. Quality protection: i. Required shelf lifeii. Fitness packaging material for productiii. Barriers against light, oxygen, microbes, water, moistureiv. Protection of flavour, colour, etc. 3. Product promotion: i. Quality image ADVERTISEMENTS: ii. Display value, visibilityiii. Brand name promotioniv. Quality of decoration, printing, varnishing 4. Product information: i. Production recognition ADVERTISEMENTS: ii. Readability of textiii. Instructions for use, warnings, CE-markingiv. Information on weight, contents, keeps ability (legal)v. Name of manufacturer, seller, importer, origin. 5. Efficiency in use: i. Ease to handle, to empty, to open, to dispenseii. Pack stability, firmnessiii. Environmental acceptability, disposabilityiv. Child-proof 6. Convenience in use…

Market Analysis: Before an advertising programme or campaign is launched, the advertiser has to make a thorough study of the market where he is going to sell his product. The market analysis should be made taking into account the following factors: ADVERTISEMENTS: First of all, the advertiser has to search out the market for his products. In other words, he has to find out the buyers to whom products can be sold. As a matter of practice, producers choose local market first.Next, the nature of competition must be studied. Where the competition is intense, the advertisement appeals should be made about quality, warranty and after sales services. In case of lesser competition, aggressive advertisement campaign can be made in order to sell more. Similarly, where there remains a chance of…

Advertising usually constitutes a part of the marketing efforts of an organisation. Advertising is undertaken by organisations in order to attract the attention of people towards products and services.Thus, the basic aim of advertising is to create awareness in the minds of people, about the availability of products and services and influence them to buy the same.The ultimate aim is to enhance the sales of the organisation. Therefore, advertising complements and supplements the company’s selling efforts. The main purposes of advertising are as follows: ADVERTISEMENTS: 1. Communicates information: One of the most important functions of advertising is to convey or communicate the information to others. In the modern day world, where science and technology contributes to new innovations and inventions, every now and then new goods and improvisation of the…

While dividing the size of sales territories, the sales manager has to take into consideration certain factors which influence the size of the sales territories. Following are some of the important factors:Nature of the product: ADVERTISEMENTS: The nature of the product is of utmost importance to ascertain the size of sales territories. There are certain consumer products which have constant demand in the market. These are generally high turnover goods and need little selling efforts. Image Source: executhink.co.zaThus, for such products a large sales territory can be assigned. For luxury, large and durable articles, which need high selling efforts and less turnover, small sales territory can be assigned.Demand for product: ADVERTISEMENTS: While allocating sales territories to the salesmen, the demand for a particular product should be taken into account. If…

Youth power is a recognized force in the world today. The youth are filled with tremendous energy and towering ambitions. They can be utilized as a constructive and as a destructive force by any nation. During the eighties, the youth power made itself prominent in many socialist countries of Europe and in China. Tianamen Square in Beijing, China witnessed a powerful demonstration. ADVERTISEMENTS: Thousands of Chinese youth sacrificed their lives in order to bring democracy in that autocratic State. Wherever there are riots in any country, political forces use the youth power to promote their interest During the riots against Mandal Commission in India, thousands of college students agitated in the streets of the cities. Many of them committed self-immolation. India is a large country with a population of 100…