It is here that the marketing management team has to lend a helping hand to tide over the crisis by rescheduling payments and giving time to meet the obligations of sellers and resellers. Attractive New Year’s gifts or calendars bearing the name of the company can be distributed to the public for institutional advertising or special art paintings can be run in magazines under the company name. No product is perfect but the success of a company depends on how fast it is with complaints redressal. They vary from direct selling (direct channel) to final user, to using one, two, three or more intermediaries. Commonly used channels of distribution are: (a) Represents a two level distribution channel. Sales forecasting is essential if more accurate sales budgets, production and purchasing schedules are to be set. Selling plays an important part in realising the ultimate aim of earring profit. xi. Sales promotion is the catchall for various promo-tools that are not formally classifiable as adver­tising, personal selling, or publicity. Markup or gross margin represents the difference between what the shopkeeper has paid to the wholesaler for getting the product and the price at which he has sold the product to the consumer. past sales, fluctuations sales and promotional expenditures, economics of order size, etc. For eg. Determination of market characteristics. Basically the problem is one of the communications. Now business firms employ service providers to gather data, analyse and interpret facts. Assume that company has a sales of Rs. Timely market information is vital for product enhancement and sales growth. It can be observed from the above discussion that goods are sold either: The direct channel is very effective and profitable for goods which have a high profit margin, e.g., office machinery such as photocopying machines, accounting machines, computers, etc. Product Life Cycle (PLC) will differ across products and categories, sometimes it may last only a few weeks or months while in some other cases, some years. Most often companies pay less attention to an important function of market- after-sales service. Advertising builds up reputation for the company goods and services. v. Advertising makes a product stand against its competitor products. It goes on to prove that even large corporates are fallible and it is in their long term interest to admit and provide product replacement and support. Timely marketing management information is vital for the companies to decide on when to sell, at what price to sell, the number of competitors and their offerings. Advertising enhances potential buyer’s responses to the company and its offerings. The package and label cast the first impression on the buyer. A standard conveys a uniformity of the products. The act of providing credit and money when needed for distributors, the costs of getting merchandise into the hands of the final user is known as finance function in marketing management. (iii) When market competition initiates a price change. First stage in any product development is market research which is done to assess the potential demand and growth expectations in the market. Every product or service should serve a consumer need and if it doesn’t, the launch is likely to end in failure. When the products are sold on a self-service basis such as in super-bazars (markets) and discount houses, it is only the package that attracts public attention, describes product’s features, gives the consumer confidence and makes a favourable overall impression. Advertising may be classed into two principal types: Institutional advertising is designed to promote an idea or the name of a company in the eyes of the public. Legislative measures of government may also cause risks. All these activities or jobs are not performed by every firm. xii. Some of the techniques used by persons engaged in market research for collecting the data are as follows: The data is collected from the information published by the company or outside sources, e.g., government agencies, trade associations, etc. (a) Sales analysis, i.e. A package is a complex part of the product. This may involve quantity (weight or size) or it may involve quality (colour, shape, appearance, material, taste, sweetness etc.) Packaging is the Art, Science and Technology of preparing goods or products for transport and sale. The term packaging means to cover the final product for shipment from the factory to the wholesalers, retailers or the consumers. Nationally advertised prices and government restricted prices of different products. Whether the company has a monopoly or it is in a competitive position. Market research safeguards the interests of the company against unforeseen changes in the market. An industrial enterprise, if, develops products for direct market application without having any idea in advance of consumer acceptance of that product, takes quite a risk (if the product is unaccepted). Standardisation means establishment of certain standards or specifications for products based on intrinsic physical qualities of any commodity. Transportation is the physical means by which goods are moved from the places where they are produced to those places where they are needed for consumption. Marketing information makes a seller know when to sell, at what price to sell, who are the competitors, etc. Market research explores new markets and helps developing new products. It contributes to broad geographic system of distribution; to the volume sales, an essential corollary of mass production; and to the pricing of many products within the economic means of the average man. Report a Violation, Risks Associated with Sales and Marketing Functions, Top 8 Essential Functions of a Wholesaler | Business Management, Market Segmentation: 7 Bases for Market Segmentation | Marketing Management. Price lining is a policy of keeping merchandise in fairly well defined price range, e.g., selling shoes at Rs. (v) Lumber can be shipped in palletized load instead of being piled in a truck. This does not mean that every product was marked up 45% of sales; actually some product had more than this, and others less than this but the overall average markup reached 45%. Going through a middleman say a wholesaler usually results in larger orders. programmes, and. Transportation 4. i. From Producer to Consumer via. The first step in the process is to identify a media planner and device appropriate mix of platforms to announce the launch of the product. Changes in fashion or inventions also cause risks. ix. In other words markup is the reward or profit to the shopkeeper for rendering a service in bringing the merchandise to the customer. Nature of sales. Distributing gifts, pencils, calendars, shopping bags, etc., bearing the name of company and its products. Risk bearing in marketing refers to the financial risk interest in the ownership of goods held for an anticipated demand including the possible losses due to a fall in prices and the losses from spoilage, depreciation, obsolescence, fire and floods or any other loss that may occur with the passage of time. (a) holds the public attention for a long time; (iii) Put the idea into symbols of some kind, words, pictures, shapes, music, etc. Studies of advertisement effectiveness. Running a business without advertising is just like winking at a beautiful girl in the dark-you know what you are doing but she does not know it. Functions of Sales Promotion Department (or Manager): v. Helping the dealer in demonstrations, door to door canvassing, etc. Liaison with the advertising agency. Good customer relations are basically the result of their past transactions with the company. (c) Ratios, such as stock-turn (the relationship between sales and stocks), profit per rupee invested (earnings/capital) etc. It creates place, utility. ii. b. Between them and the final user stand a number of marketing intermediaries performing a variety of functions and bearing a variety of names. Image Guidelines 5. Such interviews give best results with greater reliability. Advertising is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor. A dynamic pricing policy demands that the seller must be aware of the aggregate sales volume in each area so that his overall total sales will average out to the markup necessary to provide desirable overall profits. Forecasting is essentially the art of anticipating what buyers are likely to do under a given set of conditions. It may be recalled that in times of mild recession and change in trade cycles, wholesalers, distributors and retailers face cash flow problems and fail to meet their day-to-day obligations.

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