Category: Marketing

The factors affecting pricing decisions are varied and multiple. Basically, the prices of products and services are determined by the interplay of five factors, viz., demand and supply conditions, production and associated costs, competition, buyer’s bargaining power and the perceived value. We would like to divide them as Internal Factors and External Factors. Internal Factors: 1. Marketing Objectives and Pricing Objectives: Pricing objectives may be as stated earlier – profit objectives (return on sales investment and maximisation of profits), sales objectives (increasing sales volume and increasing market share) and maintenance objectives (price stabilisation and matching the competition). Various pricing objectives have important implications for a firm’s competitive strategy. Pricing objectives must not be in conflict with the marketing objectives of the firm. Image Source: saylordotorg.github.io 2. Marketing Mix Strategy: ADVERTISEMENTS:…

7 Important Segmentation Strategies are described below: 1. Mass Marketing Strategy: When differences in customer needs are small or demographics are not distinctive, a business may decide to use a mass market strategy or ‘undifferentiated marketing’. The firm ignores any segment differences and design a single product-and-marketing programme that will appeal to the largest number of consumers.It means to offer a single product/service/idea across different market segments. It is also known as undifferentiated marketing. Coca Cola, Caterpillar, Sony, Marlboro, Philips, Toyota, McDonald’s, Volvo and Kodak use global marketing strategy. However, these companies do modify their products and communication. The primary purpose of this strategy is to capture sufficient volume to gain economies of scale and a cost advantage. Image Source: lotempiolaw.com ADVERTISEMENTS: If separate products and programmes are designed for…

Value Durability (that a product will continue to maintain its value over time): It may be due to two reasons: Products designed with current fashions in mind and may lose value quite immediately when it goes out of fashion; and the other where goods are manufactured with cheap inputs. Image Source: blackline-house.comIt raises the ethical issue of manipulating customers and thereby exploiting. Safety: ADVERTISEMENTS: Products like tobacco, gutka, pan masala, junk food, or machinery that can injure a person, as well as pesticides, poisons, firearms, and explosives pose safety risks. Caveat emptor does not apply in case of cars, computers, cellphones, or medicines we buy. In case of Chinese goods, the marketer gives no warranty, what to talk of guarantee. Marketers must exercise due care in their production and marketing…

With urban market showing signs of saturation, companies are excited about the potential of rural India.Some major companies that have focused in the rural sector are Philips, Parle, Proctor & Gamble, Colgate-Palmolive, Godrej, Bajaj Auto, TVS, Atlas Cycle HUL, and Dabur. But now every company feels that road to success passes through rural markets. ADVERTISEMENTS: Following reasons indicate the potential of rural markets: 1. Large Population: According to 2011census rural population is 68.84% of total population and it is scattered over a wide range of geographical area. Image Source: i.huffpost.com 2. Rising Rural Prosperity: Average income level has improved due to modern farming practices, contract farming, industrialisation, migration to urban areas and remittance of money by family members settled abroad. The urban-rural disparity ratio has declined greatly. The rich segment…

Indian rural economy is getting stronger and stronger. According to Nielsen’s survey the rural market for FMCG (Rs 65,000 crore), Durables 5,000 crore), and clothing and Footwear (Rs 35,000 Crore) was as large as Rs 1, 05,000 crore in 2008. Certainly the size is much bigger now. According to Nielsen, by 2025, the rural FMCG sales is estimated to reach $ 100 billion from the current $12 billion.Rural India offers sustainable sales and profit for growth. There are more enterprises in rural India than in urban today contributing significantly to the non-farm output. Following factors have contributed to the growth of rural marketing: 1. Employment Opportunities: The income from new employment schemes and rural development efforts of the government and the corporate sector efforts has increased the purchasing power of…

Cooperative organizations are those organizations, which are different from the rest, as they are formed not for the purpose of making profit but to provide its members goods and services at reasonable rates. This form of organization primarily protects and safeguards the economic interests of its members. Image Source: financialfreedomcreator.comThus, cooperatives are voluntary associations, formed with a service motive; the primary source of income being the members’ shares, they get dividend on trading surplus, if any. The organization functions as a separate legal entity in a democratic way and is governed by the state regulation. ADVERTISEMENTS: There are different types of cooperatives like consumers’ cooperatives, producers’ cooperatives, marketing cooperatives, housing cooperatives, credit cooperatives, farming cooperatives, etc. The structure of a cooperative organization ensures:i. All members have an equal say (one…

Legal provisions regarding Falsification of Accounts under section 477A of Indian Penal Code, 1860.Falsification of Accounts: Image Source: img846.imageshack.us“Whoever, being a clerk, officer or servant, or employed or acting in the capacity of a clerk, officer or servant, wilfully and with intent to defraud, destroys, alters, mutilates or falsifies any book, electronic record, paper, writing, valuable security or account which belongs to or is in the possession of his employer, or has been received by him for or on behalf of his employer or willfully and with intent to defraud, makes or abets the making of any false entry in, or omits or alters or abets the omission or alteration of any material particular from or in, any such book, electronic record, paper, writing, valuable security or account, shall be…

The co-operative movement was started in India largely with a view to providing agriculturists funds for agricultural operations at low rates of interest and protect them from the clutches of money lenders. Image Source: yourarticlelibrary.comThey meet all types of credit viz., short term, medium term and long term credit requirements. Co-operative Agricultural Credit Structure: ADVERTISEMENTS: Short term and Medium term credit (three tiers):1. State Co-operative Bank (SCB).2. District Central Co-operative Bank (DCCB). ADVERTISEMENTS: 3. Primary Agricultural Credit Societies (PACS). Primary Agricultural Co-operative Societies (PACS): Functions: i. To provide short term and medium term credit.ii. To supply agricultural inputs like fertilizers and seeds. ADVERTISEMENTS: iii. To provide marketing facilities for the sale of agricultural produce.iv. To associate itself with economic and social welfare programmes of the village.Sources of Funds: Share capital,…

India’s renewable energy installed capacity has grown at annual rate of 23% rising from about 3.9 GW in 2002-03 to about 24 GW in January 2012. The need for developing renewable and non-conventional energy was recognised in India, as in all industrialized countries, in the early 1970’s just after the first oil or energy crisis. Image Source: eco.on.caThe oil crisis was the sudden increase in oil prices by the petroleum-exporting countries of the Middle East which led to world-wide inflation. This caused a panic situation since petroleum had to be purchased at any price to keep the wheels of transport and industries moving. Concern over disruption has continued to be a major focus of energy policy in the industrialized countries. ADVERTISEMENTS: The energy crisis along with the realisation that petroleum…

Important limitations which are suffered by the marketing research are as follows: 1. Time Consuming: Marketing research is time consuming. It requires too much of time to reach the final conclusions. There may be a considerable time gap between the inception and completion of the research. image source: cdn2.hubspot.net ADVERTISEMENTS: There may be impatience among marketing executives about the conclusions of the research study. The results of such studies may be known after long periods. The preparation and implementation of research programmes takes too much time. So market research does not give quick conclusions. 2. Lack in Appreciating Rupee Value: In many cases it may be impossible to translate the value received from marketing research into rupees. The managements want to see the immediate results of such studies.They want to…