Business Terms

What Is a Partnership?

noreply@blogger.com (Md. Imran Hossain) — Mon, 06 Feb 2023 15:53:00 +0000

What Is a Partnership?

Partnership is a business relationship between two or more individuals who agree to work together towards a common goal, share profits and losses, and make decisions jointly. Partnerships can be formed between individuals, organizations, or companies, and they are commonly used in small businesses where the owners have a close working relationship.

In a partnership, partners are responsible for the day-to-day operations of the business as well as for making important decisions about its future. The partners also share in the profits and losses of the business, so it is important for all partners to have a clear understanding of their roles and responsibilities.

One of the key benefits of a partnership is the ability to pool resources, including capital, skills, and expertise, to achieve a common goal. Partnerships also provide a way for small business owners to share the risks and responsibilities of operating a business, making it easier to manage the business and ensure its success.

However, partnerships also come with challenges, including disagreements between partners, differing opinions on how the business should be run, and the risk of personal liability for business debts. It is important for partners to have a clear understanding of each other's expectations, to communicate openly and honestly, and to have a plan in place for resolving disputes.

In conclusion, partnerships can be a valuable business relationship for small businesses, but it is important for partners to understand the benefits and challenges involved. With careful planning and open communication, partnerships can be a successful and fulfilling way to run a business.

Partnership agreements :

Partnership agreements are legal contracts between partners in a partnership that outline the terms and conditions of their relationship. These agreements define the responsibilities, rights, and obligations of each partner, as well as the distribution of profits and losses. A well-drafted partnership agreement can help prevent misunderstandings, minimize disputes, and ensure the success of the partnership.

A partnership agreement typically includes several key elements, such as the names of the partners, the purpose of the partnership, the allocation of profits and losses, the management structure, the admission of new partners, the procedures for dissolving the partnership, and the handling of disputes. The agreement should also outline the financial contributions of each partner and the terms for withdrawing or transferring interests.

One of the most important considerations in a partnership agreement is the allocation of profits and losses. Partners may agree to share profits and losses equally, or they may choose to allocate them differently based on factors such as the amount of capital contributed or the hours worked. The agreement should also outline the procedures for calculating and distributing profits and losses.

The management structure of a partnership is another important element of a partnership agreement. The partners may choose to manage the partnership jointly, with each partner having an equal say in decision-making, or they may designate one or more partners as the managing partners, with greater control over the operations of the business.

In a partnership agreement, partners should also agree on the procedures for admitting new partners. This may involve setting requirements for new partners, such as the amount of capital they must contribute, or specifying the process for obtaining the consent of existing partners.

Dissolving a partnership can be a complex process, and a partnership agreement should include clear provisions for dissolving the partnership and distributing its assets. The agreement should also specify the procedures for resolving disputes between partners, such as mediation or arbitration.

In conclusion, a partnership agreement is a crucial document for any partnership, as it outlines the terms and conditions of the relationship between partners. A well-drafted partnership agreement can help ensure the success of the partnership by preventing misunderstandings, minimizing disputes, and setting clear expectations for the partners. When entering into a partnership, it is important for partners to seek the advice of a lawyer to ensure that their agreement is legally binding and meets their specific needs.

Taxation :

Taxation is the process by which a government levies a tax on citizens and organizations to raise revenue for its operations and programs. The amount of tax imposed on individuals and businesses is determined by the government, and is based on factors such as income, property, and sales. Taxation can be direct, such as income tax, or indirect, such as sales tax. It is an important tool for governments to fund public services, infrastructure, and social programs.

However, excessive taxation can also have negative effects on the economy. It can stifle business growth, reduce consumer spending, and discourage investment. Governments must strike a balance between the need for revenue and the impact of taxation on citizens and businesses.

In order to ensure compliance and fairness, tax systems must be well-designed and efficiently administered. This often involves the use of tax laws, regulations, and enforcement mechanisms to ensure that all taxpayers are paying the correct amount of tax.

In conclusion, taxation is a crucial aspect of modern governance and is essential for the funding of public services and infrastructure. It is important that the process is fair and efficient, and that the burden of tax is distributed equitably among citizens and organizations.

partnership in business :

There are several forms of partnership in business, including:

1.0 General Partnership: In a general partnership, all partners are equally responsible for the management and liabilities of the business. Profits and losses are shared equally among partners.

2.0 Limited Partnership: In a limited partnership, there are both general and limited partners. The limited partners only invest money and do not participate in the management of the business, while the general partners manage the business and are personally liable for its debts.

3.0 Limited Liability Partnership (LLP): An LLP is a hybrid of a general partnership and a corporation. Partners have limited personal liability for the debts and obligations of the business.

4.0 Joint Venture: A joint venture is a temporary partnership between two or more businesses to pursue a specific project or opportunity. Partners in a joint venture share profits and losses.

5.0 Franchise Partnership: In a franchise partnership, a franchisor grants a franchisee the right to use its brand, products, and services in exchange for a fee and ongoing royalties. The franchisee operates the business with some degree of independence, but must follow the franchisor's guidelines and standards.

6.0 Strategic Partnership: A strategic partnership is a long-term alliance between two or more businesses to achieve common goals and leverage each other's strengths. Partners in a strategic partnership may share resources, technology, and expertise.

The choice of partnership form will depend on the goals and needs of the partners, as well as the nature and structure of the business. It is important to seek the advice of a legal or financial professional to determine the best form of partnership for a given situation.

What Are Pageviews?

noreply@blogger.com (Md. Imran Hossain) — Sun, 05 Feb 2023 18:31:00 +0000

What Are Pageviews?

Pageviews refer to the number of times a page on a website is viewed by visitors. This metric is an important indicator of website traffic and engagement, and is often used to measure the success of a website or specific pages.

Pageviews provide a high-level overview of the popularity of a website or specific pages. They can be used to track the growth of a website over time, or to compare the performance of different pages. For example, a website owner can use pageviews to determine which pages are the most popular and which pages may need improvement.

It's important to note that pageviews only measure the number of times a page has been viewed and do not provide information about the duration of the visit or the actions taken by the visitor. This means that a high number of pageviews does not necessarily indicate that visitors are engaged with the content or spending a lot of time on the site.

To increase pageviews, website owners can focus on improving the user experience, creating high-quality and engaging content, and optimizing their website for search engines. This can include improving site speed, using clear and concise titles and descriptions, and making it easy for visitors to navigate the site and find what they are looking for.

In conclusion, pageviews are an important metric for website owners, but they should be used in conjunction with other metrics such as time on site and bounce rate to get a full picture of website performance and visitor engagement. By using this data, website owners can make informed decisions and make improvements that will drive traffic, engagement, and success.

What does strategic management mean?

noreply@blogger.com (Md. Imran Hossain) — Mon, 31 Oct 2022 16:44:00 +0000

In today's competitive world, the process of formulating and implementing long-term plans to achieve specific objectives is called strategic management.

Strategies are policies or procedures adopted to deal with the actions of parties that may affect the implementation of the organization's plans.

Strategy has five characteristics and four levels.

* Features.

1. Long term process

2. Comprehensive plan

3. Art determination

4. The environment

5. Alertness.

* Level

1. Organizational strategy

2. Management strategy

3. Functional property strategy

4. Strategy at the operating stage.

Strategic management basically facilitates important decision-making by helping employees understand and analyze the overall business situation.

Pearce and Robbins to say– “Strategic planning is the process of formulating a long-term integrated plan to achieve the organization's objectives”.

What is logistics?

noreply@blogger.com (Md. Imran Hossain) — Fri, 28 Oct 2022 16:30:00 +0000

What is Logistics?

In today's business planning and implementation logistics is very important. An important element of these is logistics. The term logistics is widely used in the military.

Logistics in planning is the easy availability of human and non-human resources required at right time and right place for achieving organizational goals.

Oxford Dictionary to say - "Logistics means the organizations of supplies and services for any complex operation".

ANNUITY

noreply@blogger.com (Rakibul Islam) — Tue, 02 Aug 2022 12:47:00 +0000

This is a type of insurance policy. Upon retirement, a lump sum is paid into it and the insurance company then provides a regular income.

The term "annuity" refers to an insurance contract issued and distributed by financial institutions with the intention of paying out invested funds in a fixed income stream in the future.

WHAT IS ADMINISTRATION?

noreply@blogger.com (Rakibul Islam) — Tue, 26 Jul 2022 04:00:00 +0000

WHAT IS ADMINISTRATION?

There are two meanings relating to this word in business.

The organization and running of a business.
A business going into administration, meaning that a business has gone bankrupt and its creditors can get in touch to try and claim any money they are owed.

What Is a Manufacturer’s Agent?

noreply@blogger.com (Md. Imran Hossain) — Wed, 25 May 2022 14:49:00 +0000

What Is a Manufacturer’s Agent?

A producer’s agent is an agent who typically operates on an extended contractual foundation, regularly sells in an exceptional territory, offers non-competing however related lines of products, and has described authority concerning fees and terms of sale.

What Is Labor?

noreply@blogger.com (Md. Imran Hossain) — Thu, 12 May 2022 16:31:00 +0000

What Is Labor?

Labor, in this context, refers back to the hard work fees associated with making items to be bought. This exertions is a part of the fee of sales, part of the producing and assembly. The row heading refers to fulfillment fees as properly, for carrier companies.

What Are Ideas Versus Opportunities?

noreply@blogger.com (Md. Imran Hossain) — Wed, 13 Apr 2022 10:54:00 +0000

What Are Ideas Versus Opportunities?

Ideas are the idea of capability enterprise possibilities. Good ideas do not always constitute good opportunities.

For extra on validating your commercial enterprise concept and seeing if you truly have a strong commercial enterprise possibility, test out our article Going Beyond the Napkin: How Do You Know If Your Idea Is Any Good? And our unfastened downloadable Business Idea Validation Checklist.

Brand Equity

noreply@blogger.com (Rakibul Islam) — Wed, 06 Apr 2022 07:28:00 +0000

What Is Brand Equity?

Brand equity refers to a value premium that a company generates from a product with a recognizable name when compared to a generic equivalent. Companies can create brand equity for their products by making them memorable, easily recognizable, and superior in quality and reliability. Mass marketing campaigns also help to create brand equity.

In marketing, brand equity is the level of sway a brand name has in the minds of consumers, and the value of having a brand that is identifiable and well thought of. Organizations establish brand equity by creating positive experiences that entice consumers to continue purchasing from them over competitors who make similar products. This is done by generating awareness through campaigns that speak to target-consumer values, delivering on promises and qualifications when consumers use the product, and loyalty and retention efforts.

By presenting consumers loyalty incentives including factors that may be exchanged for discounts or a free product on their birthday, they may be much more likely to continue to purchase out of your brand in place of moving on to a competitor. Awareness and enjoyment are the two key tenets of logo fairness:

Brand Awareness: Can consumers easily identify your brand? Messaging and imagery surrounding your brand should be cohesive so consumers can always identify it, even for a new product. What kinds of values do consumers associate with the brand? Perhaps they think of sustainability, quality, or family-friendly qualities.
Brand Experience: How have first-hand experiences with your brand gone? This could mean that the product performed the way it was supposed to, that encounters with brand representatives and customer service teams have been accommodating and helpful, and that loyalty programs have been worthwhile.

Importance of Brand Equity?

A key benefit of organizing fine emblem equity is the blessings it can have on ROI. Organizations that leverage the power of branding frequently earn extra cash than the competition, whilst spending much less - whether or not on manufacturing, marketing, or somewhere else. For example, nice brand equity enables manufacturers to charge price rates. When clients trust in the values placed forth through a logo and the excellence of their merchandise, they will pay higher prices to purchase from that brand. Additionally, ought to a company need to add new product offerings, marketing them beneath the identical umbrella emblem will assist the new product take off quicker, as accepted as true with has already been mounted. This is particularly critical as a rising variety of consumers, roughly 80%, now refuse to do commercial enterprise with or purchase from an emblem that they don’t trust, and nearly 90% intend to disengage from a brand that breaches their beliefs.

Marketing researchers have concluded that brands are the crown jewels of a company. Brand equity provides significant value to companies:

Companies can charge a premium for products with lots of positive brands equity (think of designer brands).
Positive brand equity can be transferred to a different product line, which in turn increases sales and revenues for the company.
Positive brand equity increases market share, as the brand is widely known, recognized, and preferred by consumers.

Keller’s Brand Equity Model

Keller's Brand Equity Model (also known as the Customer-Based Brand Equity (CBBE) Model) was first developed by marketing professor, Kevin Lane Keller, in his widely-used textbook, "Strategic Brand Management." [1]

The concept behind the Brand Equity Model is simple: in order to build a strong brand, you must shape how customers think and feel about your product. You have to build the right type of experiences around your brand so that customers have specific, positive thoughts, feelings, beliefs, opinions, and perceptions about it.

When you have strong brand equity, your customers will buy more from you, they'll recommend you to other people, they're more loyal, and you're less likely to lose them to competitors.

The model, depicted as a pyramid in figure 1, below, illustrates the four steps that you need to follow to build strong brand equity.

Figure 1 – Keller's Brand Equity Model

The four steps of the pyramid represent four fundamental questions that your customers will ask – often subconsciously – about your brand.

These four steps also contain six building blocks that must be in place for you to reach the top of the pyramid, and to develop a successful brand.

How to Apply Keller's Brand Equity Model

Let's look at each step of the model in more detail, and discuss how you can use it to strengthen your brand.

Step 1: Brand Identity – Who Are You?

First, your goal is to create "brand salience," or awareness – in other words, you need to make sure that your brand stands out, and that customers recognize it and are aware of it.

You're not just creating brand identity and awareness here; you're also trying to ensure that brand perceptions are "correct" at key stages of the buying process.

Start by getting to know who your customers are. Research your market to gain a thorough understanding of how your customers see your brand and explore whether there are different market segments with different needs and different relationships with your brand.

Then, identify how your customers narrow down their choices and decide between your brand and those of your competitors. Ask yourself:

· What decision-making processes do your customers go through when they choose your product?

· How are they classifying your product or brand?

· How well does your brand stand out from other, similar ones?

You are able to sell your product because it satisfies a particular set of your customers' needs; this is your unique selling proposition or USP. You should already be familiar with these needs, but it's important to communicate to your customers how your brand fulfills these. Do they fully understand these USPs when they're making their buying decisions?

By the end of this step, you should understand whether your clients perceive your brand as you want them to, or whether there are specific perceptual problems that you need to address. Do you need to adjust your product or service, or adjust the way that you communicate your brand messages?

Step 2: Brand Meaning – What Are You?

Identify and communicate what your brand means to your customers, and what it stands for. Do this by considering your brand in terms of "performance" and "imagery":

· Performance defines how well your product meets your customers' needs. According to Keller's model, the performance consists of five categories: primary characteristics and features; product reliability, durability, and serviceability; service effectiveness, efficiency, and empathy; style and design; and price.

· Imagery refers to how well your brand meets your customers' needs on a social and psychological level. Your brand can meet these needs directly, from a customer's own experiences with a product; or indirectly, with targeted marketing, or by word of mouth.

The experiences that your customers have with your brand come as a direct result of your product's performance. Your product must meet, and, ideally, exceed their expectations if you want to build loyalty.

Use the Critical to Quality Tree and Kano Model Analysis models to identify your customers' needs, and then explore how you can translate these needs into a high-quality product.

Next, think carefully about the type of experience that you want your customers to have with your product. Take both performance and imagery into account, and create a "brand personality." Again, identify any gaps between where you are now and where you want to be, and look at how you can bridge these.

A good example of "brand meaning" inaction is that of outdoor clothing and equipment company, Patagonia®, which makes high-quality products from recycled materials.

Patagonia’s brand performance demonstrates its reliability and durability. People know that their products are well designed and stylish and that they won't let them down. Patagonia's brand imagery is enhanced by its commitment to several environmental programs and social causes; and its strong "reduce, reuse, recycle" values, which makes customers feel good about purchasing its products.

You can Download Reference E-books for free from PDF STALL

Reference:

1. https://www.investopedia.com/terms/b/brandequity.asp#:~:text=Brand%20equity%20refers%20to%20a,superior%20in%20quality%20and%20reliability.

2. https://www.marketingevolution.com/marketing-essentials/what-is-brand-equity-marketing-evolution

3. https://corporatefinanceinstitute.com/resources/knowledge/other/brand-equity/

4. https://www.mindtools.com/pages/article/keller-brand-equity-model.htm

Marketing Mix

noreply@blogger.com (Rakibul Islam) — Fri, 01 Apr 2022 10:47:00 +0000

Marketing involves a number of activities. To begin with, an organization may decide on

its target group of customers to be served. Once the target group is decided, the product

is to be placed in the market by providing the appropriate product, price, distribution, and

promotional efforts. These are to be combined or mixed in an appropriate proportion so

as to achieve the marketing goal. Such a mix of product, price, distribution and promotional

efforts is known as a ‘Marketing Mix’.

According to Philip Kotler, “Marketing Mix is the set of controllable variables that the firm

can use to influence the buyer’s response”. The controllable variables in this context refer

to the 4 ‘P’s [product, price, place (distribution), and promotion]. Each firm strives to

build up such a composition of 4‘P’s, which can create the highest level of consumer satisfaction

and at the same time meet its organizational objectives. Thus, this mix is assembled keeping

in mind the needs of target customers, and it varies from one organization to another

depending upon its available resources and marketing objectives. Let us now have a brief

idea about the four components of the marketing mix.

Product: Product refers to the goods and services offered by the organization. A pair of

shoes, a plate of Dahi-vada, a lipstick, all are products. All these are purchased because

they satisfy one or more of our needs. We are paying not for the tangible product but for

the benefit, it will provide. So, in simple words, a product can be described as a bundle of

benefits that a marketeer offers to the consumer for a price. While buying a pair of

shoes, we are actually buying comfort for our feet, while buying lipstick we are actually

paying for beauty because lipstick is likely to make us look good. The product can also take

the form of a service like air travel, telecommunication, etc. Thus, the term product

refers to goods and services offered by the organization for sale.

Price: Price is the amount charged for a product or service. It is the second most important

element in the marketing mix. Fixing the price of the product is a tricky job. Many factors

like demand for a product, the cost involved, consumer’s ability to pay, prices charged by

competitors for similar products, government restrictions, etc. have to be kept in mind

while fixing the price. In fact, pricing is a very crucial decision area as it has an effect on

demand for the product and also on the profitability of the firm.

Place: Goods are produced to be sold to the consumers. They must be made available to

the consumers at a place where they can conveniently make purchases. Woolens are

manufactured on a large scale in Ludhiana and you purchase them at a store from the

nearby market in your town. So, it is necessary that the product is available at shops in

your town. This involves a chain of individuals and institutions like distributors, wholesalers, and retailers who constitute the firm’s distribution network (also called a channel of distribution).

The organization has to decide whether to sell directly to the retailer or through the

distributors/wholesaler etc. It can even plan to sell it directly to consumers. The choice is

guided by a host of factors which you will learn later in this chapter.

Promotion: If the product is manufactured keeping the consumer needs in mind, is rightly

priced, and made available at outlets convenient to them but the consumer is not made

aware of its price, features, availability, etc, its marketing effort may not be successful.

Therefore promotion is an important ingredient of the marketing mix as it refers to a process

of informing, persuading, and influencing a consumer to make the choice of the product to be

bought. Promotion is done through means of personal selling, advertising, publicity, and

sales promotion. It is done mainly with a view to providing information to prospective

consumers about the availability, characteristics, and uses of a product. It arouses potential

consumers’ interest in the product, compares it with competitors’ products, and makes their

choice. The proliferation of print and electronic media has immensely helped the process

of promotion.

CONCEPT OF PRODUCT AND ITS CLASSIFICATION

As stated earlier, product refers to the goods and services offered by the organization for
sale. Here the marketers have to recognize that consumers are not simply interested in the
physical features of a product but a set of tangible and intangible attributes that satisfy their
wants. For example, when a consumer buys a washing machine he is not buying simply a
machine but a gadget that helps him in washing clothes. It also needs to be noted that the
term product refers to anything that can be offered to a market for attention, acquisition,
or use. Thus, the term product is defined as “anything that can be offered to a market to
satisfy a want”. It normally includes physical objects and services. In a broader sense,
however, it not only includes physical objects and services but also the supporting services
like brand name, packaging accessories, installation, after-sales service, etc. Look at the
definitions by Stanton and McCarthy as given in the box.

PRODUCT CLASSIFICATION

Product can be broadly classified on the basis of (1) use, (2) durability, and (3) tangibility.

Let us have a brief idea about the various categories and their exact nature under each

head, noting at the same time that in marketing the terms ‘product’ and ‘goods’ are often

used interchangeably.

1. Based on use, the product can be classified as:

(a) Consumer Goods; and

(b) Industrial Goods.

(a) Consumer goods: Goods meant for personal consumption by the households or

ultimate consumers are called consumer goods. This includes items like toiletries,

groceries, clothes, etc. Based on consumers’ buying behavior the consumer goods

can be further classified as :

(i) Convenience Goods;

(ii) Shopping Goods; and

(iii) Speciality Goods.

(i) Convenience Goods: Do you remember, the last time when did you buy a

packet of butter or a soft drink or a grocery item? Perhaps you don’t remember,

or you will say last week or yesterday. The reason is, that these goods belong to the

category of convenience goods which are bought frequently without much

planning or shopping effort and are also consumed quickly. Buying decisions in

case of these goods do not involve much pre-planning. Such goods are usually

sold at convenient retail outlets.

(ii) Shopping Goods: These are goods that are purchased less frequently and are

used very slowly like clothes, shoes, and household appliances. In the case of these goods,

consumers make the choice of a product considering its suitability, price, style, quality, and products of competitors and substitutes if any. In other words, consumers

usually spend a considerable amount of time and effort to finalize their purchase

decision as they lack complete information prior to their shopping trip. It may be

noted that shopping for goods involves much more expenses than convenience goods.

(iii) Speciality Goods: Because of some special characteristics of certain categories

of goods people generally put special efforts to buy them. They are ready to buy

these goods at the prices at which they are offered and also put in extra time to

locate the seller to make the purchase. The nearest car dealer may be ten kilometers

away but the buyer will go there to inspect and purchase it. In fact, prior to

making a trip to buy the product he/she will collect complete information about

the various brands. Examples of specialty goods are cameras, TV sets, new

automobiles, etc.

(b) Industrial Goods: Goods meant for consumption or use as inputs in the production of

other products or provision of some service are termed as ‘industrial goods’. These

are meant for non-personal and commercial use and include (i) raw materials,

(ii) machinery, (iii) components, and (iv) operating supplies (such as lubricants,

stationery, etc). The buyers of industrial goods are supposed to be knowledgeable,

cost-conscious, and rational in their purchase and therefore, the marketeers follow

different pricing, distribution, and promotional strategies for their sales.

It may be noted that the same product may be classified as consumer goods as well as

industrial goods depending upon its end-use. Take for example the case of coconut

oil. When it is used as hair oil or cooking oil, it is treated as consumer goods and when

used for manufacturing a bath soap it is termed as industrial goods. However, the way

these products are marketed to these two groups is very different because purchase

by the industrial buyers is usually large in quantity and bought either directly from the

manufacturer or the local distributor.

2. Based on Durability, the products can be classified as :

(a) Durable Goods; and

(b) Non-durable Goods.

(a) Durable Goods: Durable goods are products that are used for a long period

i.e., for months or years together. Examples of such goods are refrigerators, cars,

washing machines, etc. Such goods generally require more personal selling efforts

and have high-profit margins. In the case of these goods, the seller’s reputation and presale

and after-sale service are important determinants of the purchase decision.

(b) Non-durable Goods: Non-durable goods are products that are normally

consumed in one go or last for a few uses. Examples of such products are soap,

salt, pickles, sauce, etc. These items are consumed quickly and we purchase

these goods more often. Such items are generally made available by the producer

through a large number of convenient retail outlets. Profit margins on such items

are usually kept low and heavy advertising is done to attract people to their

trial and use.

3. Based on tangibility, the products can be classified as:

(a) Tangible Goods; and

(b) Intangible Goods.

(a) Tangible Goods: Most goods, whether these are consumer goods or industrial

goods and whether these are durable or non-durable, fall in this category as they

have a physical form, that can be touched and seen. Thus, all items like groceries,

cars, raw materials, machinery, etc. fall in the category of tangible goods.

(b) Intangible Goods: Intangible goods refer to services provided to individual

consumers or to organizational buyers (industrial, commercial, institutional,

government, etc.). Services are essentially intangible activities that provide want

or need satisfaction. Medical treatment, postal, banking and insurance services, etc.

PRICING AND FACTORS AFFECTING PRICING DECISIONS

As stated earlier price is the consideration in terms of money paid by consumers for the

bundle of benefits he/she derives by using the product/ service. In simple terms, it is the

exchange value of goods and services in terms of money. Pricing (determination of price to

be charged) is another important element of the marketing mix and it plays a crucial role in the

success of a product in the market. If the price fixed is high, it is likely to have an adverse

effect on the sales volume. If, on the other hand, it is too low, it will adversely affect the

profitability. Hence, it has to be fixed after taking various aspects into consideration. The

factors usually taken into account while determining the price of a product can be broadly

described as follows:

(a) Cost: No business can survive unless it covers its cost of production and distribution.

In a large number of products, the retail prices are determined by adding a reasonable

profit margin to the cost. The higher the cost, the higher is likely to be the price, the lower the cost

lower the price.

(b) Demand: Demand also affects the price in a big way. When there is a limited supply of

a product and the demand is high, people buy even if high prices are charged by the

producer. But how high the price would be is dependent upon prospective buyers’

capacity and willingness to pay and their preference for the product. In this context,

price elasticity, i.e. responsiveness of demand to changes in price should also be kept

in view.

determinant of price. A marketeer would not like to charge a price higher than the

competitor for fear of losing customers. Also, he may avoid charging a price lower

than the competitor. Because it may result in a price war which we have recently seen in

the case of soft drinks, washing powder, mobile phones,s, etc.

(d) Marketing Objectives: A firm may have different marketing objectives such as

maximization of profit, maximization of sales, bigger market share, survival in the market, and so on. The prices have to be determined accordingly. For example, if the objective

is to maximize sales or have a bigger market share, a low price will be fixed. Recently

one brand of washing powder slashed its prices to half, to grab a bigger share of the

market.

(e) Government Regulation: Prices of some essential products are regulated by the

government under the Essential Commodities Act. For example, prior to the liberalization

of the economy, cement and steel prices were decided by the government. Hence, it

is essential that the existing statutory limits, if any, are also kept in view while determining

the prices of products by the producers.

METHODS OF PRICE FIXATION

Methods of fixing the price can be broadly divided into the following categories.

1. Cost-based pricing

2. Competition based pricing

3. Demand-based pricing

4. Objective-based pricing

1. Cost-Based Pricing

Under this method, the price of the product is fixed by adding the amount of desired profit

margin to the cost of the product. If a particular soap costs the marketeer Rs. 8 and he

desires a profit of 25%, the price of the soap is fixed at Rs 8 + (8x25/100) =Rs. 10.

While calculating the price in this way, all costs (variable as well as fixed) incurred in

manufacturing the product is taken into consideration.

2. Competition Based Pricing

In the case of products where the market is highly competitive and there is negligible difference

in the quality of competing brands, the price is usually fixed closer to the price of the competing

brands. It is called ‘young rate pricing’ and is a very convenient method because the

marketeers do not have to worry much about demand and cost and effect the change

as per the changes by the industry leaders.

3. Demand-Based Pricing

At times, prices are determined by the demand for the product. Under this method,

without paying much attention to cost and competitors' prices, the marketeers try to

ascertain the demand for the product. If the demand is high they decide to take advantage

and fix a high price. If the demand is low, they fix low prices for their product. At times

they resort to differential prices and charge different prices to different groups of

customers depending upon their perceived values and capacity to pay. Take the case

of cinema halls where the rates of tickets differ for the different sets of rows in the hall.

4. Objective-Based Pricing

This method is applicable to the introduction of new (innovative) products. If at the

introductory stage of the products, the organization wishes to penetrate the market

i.e., to capture large parts of the market and discourage prospective competitors

to enter the fray, it fixes a low price. Alternatively, the organization may decide to

skim the market i.e., to earn a high profit by taking advantage of a group of customers

who give more importance to their status or distinction and are willing to pay even a

higher price for it. In such a situation they fix quite high prices at the introductory stage

of their product and market it to only those customers who can afford it.

CHANNELS OF DISTRIBUTION

You are aware that while a manufacturer of a product is located in one place, its consumers

are located in innumerable places spread all over the country or the world. The manufacturer has to ensure the availability of his goods to the consumers at convenient points for their

purchase. He may do so directly or, as stated earlier, through a chain of middlemen like

distributors, wholesalers, and retailers. The path or route adopted by him for the purpose

is known as a channel of distribution. A channel of distribution thus refers to the pathway

used by the manufacturer for the transfer of the ownership of goods and its physical transfer to

the consumers and the user/buyers (industrial buyers).

Stanton has also defined it as “A distribution channel consists of the set of people and firms

involved in the transfer of title to a product as the product moves from producer to the ultimate

consumer or business user”. Basically, it refers to the vital links connecting the manufacturers

and producers and the ultimate consumers/users. It includes both the producer and the

end-user and also the middlemen/agents engaged in the process of transfer of title of

goods.

Primarily a channel of distribution performs the following functions:

(a) It helps in establishing regular contact with the customers and provides them the

necessary information relating to the goods.

(b) It provides the facility for inspection of goods by the consumers at convenient points

to make their choice.

(d) It helps in financing by giving credit facilities.

(e) It assists the provision of after-sales services, if necessary.

(f) It assumes all risks connected with carrying out the distribution function.

PROMOTION

Promotion refers to the process of informing and persuading consumers to buy certain

product. By using this process, the marketeers convey persuasive messages and information

to its potential customers. The main objective of promotion is to seek buyers’ attention

towards the product with a view to:

– arouse his interest in the product;

– inform him about its availability; and

– inform him as to how is it different from others.

It is thus persuasive communication and also serves as a reminder. A firm uses different

tools for its promotional activities which are as follows :

– Advertising

– Publicity

– Personal selling

– Sales promotion

These are also termed as four elements of a promotion mix. Let us have a brief idea

about these promotion tools.

1. Advertising: Advertising is the most commonly used tool for informing the present

and prospective consumers about the product, its quality, features, availability, etc. It

is a paid form of non-personal communication through different media about a product,

idea, service, or organization by an identified sponsor. It can be done through print

media like newspapers, magazines, billboards, electronic media like radio, television,

etc. It is a very flexible and comparatively low-cost tool for promotion.

2. Publicity: This is a non-paid process of generating a wide range of communication to

contribute a favorable attitude towards the product and the organization. You may

have seen articles in newspapers about an organization, its products, and its policies. The

other tools of publicity are press conferences, publications, and news in the electronic

media, etc. It is published or broadcasted without charging any money from the firm.

Marketers often spend a lot of time and effort in getting news items placed in the

media for the creation of a favorable image of the company and its products.

3. Personal selling: You must have come across representatives of different companies

knocking at your door and persuading you to buy their product. It is a direct presentation

of the product to the consumers or prospective buyers. It refers to the use of

salespersons to persuade the buyers to act favorably and buy the product. It is the most

effective promotional tool in the case of industrial goods.

4. Sales promotion: This refers to short-term and temporary incentives to purchase or

induce trials of new goods. The tool includes contests, games, gifts, trade shows,

discounts, etc. Sales promotional activities are often carried out at retail levels

External Source:

1. http://www.uop.edu.pk/ocontents/marketing%20mix.pdf

What Is Goodwill?

noreply@blogger.com (Md. Imran Hossain) — Tue, 29 Mar 2022 12:18:00 +0000

What Is Goodwill?

Goodwill is when a company purchases some other corporation for greater than the value of its property—that's quite common—the difference is recorded as an asset named “goodwill.”

This isn't a popular time period for the fee of a logo, for example, but a very unique accounting time period.

For example, if one business buys every other commercial enterprise for $1 million then it desires to show the $1 million spent as an asset. If there are best $500 thousand in actual assets, the accounting end result must be $500,000 in real assets bought and any other $500,000 in “goodwill.”

What Is a Features, Advantages, and Benefits Analysis (FAB)?

noreply@blogger.com (Md. Imran Hossain) — Sat, 26 Mar 2022 13:36:00 +0000

What Is a Features, Advantages, and Benefits Analysis (FAB)?

A FAB evaluation explores the functions, blessings, and benefits of a services or products providing.

Marketing plans need to understand these concepts so that it will expand powerful advertising and marketing programs. People regularly confuse functions and blessings; for instance, in an vehicle, air bags are a the function that produce the gain of extra protection. Advantages fall in between, functions become advantages that provide advantages to the give up user.

What Are Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)?

noreply@blogger.com (Md. Imran Hossain) — Sat, 26 Mar 2022 13:19:00 +0000

What Are Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)?

Earnings earlier than hobby, taxes, depreciation and amortization (or EBITDA) is same to the gross margin (the difference between total income revenue and overall direct fee of income) minus overall running fees (tax-deductible expenses incurred in engaging in ordinary business operations, which include wages and salaries, lease, and so forth), plus any depreciation (The loss of price of property over time) and amortization.

This is much like earnings before interest and taxes (EBIT). The difference between the two is that EBIT subtracts all charges, together with depreciation, as an price, and EBITDA subtracts all prices except depreciation and amortization.

What Is Debt and Equity?

noreply@blogger.com (Md. Imran Hossain) — Sat, 26 Mar 2022 12:42:00 +0000

What Is Debt and Equity?

Debt and fairness is the sum of liabilities and capital. This have to usually be equal to general property.

The debt-to-equity (D/E) ratio is used to assess a corporation's economic leverage and is calculated through dividing a employer’s general liabilities via its shareholder fairness. The D/E ratio is an vital metric utilized in company finance. It is a degree of the diploma to which a organization is financing its operations thru debt versus entirely owned budget. More specially, it displays the capacity of shareholder equity to cowl all wonderful debts in the occasion of a enterprise downturn. The debt-to-fairness ratio is a particular type of gearing ratio.

What Is a Doing Business As (DBA)?

noreply@blogger.com (Md. Imran Hossain) — Sat, 26 Mar 2022 04:55:00 +0000

What Is a Doing Business As (DBA)?

DBA stands for “doing business as,” that's a company name, additionally commonly called a “fictitious enterprise call.”

When a sole proprietor operates an enterprise the usage of any name except his or her own given name, then the DBA or fictitious enterprise call registration establishes the legal possession to satisfy banks, neighborhood government, and customers.

So whilst you start the Acme Restaurant unless you are named Acme, you need your DBA to open a financial institution account in that call, pay employees, and do enterprise.

You can usually gain this registration through the county authorities, and the cost isn't any greater than a small registration fee plus a required newspaper ad, for a completion of much less than $100 in most states.

What Is a C Corporation (C Corp)?

noreply@blogger.com (Md. Imran Hossain) — Thu, 24 Mar 2022 11:49:00 +0000

What Is a C Corporation (C Corp)?

The C employer is the classic criminal entity of the tremendous majority of a hit corporations within the United States.

Most lawyers would agree that the C agency is the shape that offers the high-quality protecting from private liability for proprietors, and presents the satisfactory non-tax advantages. This is a separate criminal entity, extraordinary from its owners, which will pay its own taxes.

Most attorneys would also probably agree that for a company that has targets of raising important funding capital and finally going public, the C organisation is the usual criminal entity.

What Is Capital Input?

noreply@blogger.com (Md. Imran Hossain) — Thu, 24 Mar 2022 11:24:00 +0000

What Is Capital Input?

Capital input also can be referred to as funding, or new funding. It is new cash being invested within the enterprise, no longer as loans or compensation of loans, but as cash invested in possession.

This is likewise cash at hazard. It will grow in cost if the business flourishes, and decline in value if the commercial enterprise declines. This is closely associated with the idea of paid-in capital, at the balance sheet desk. Paid-in capital is the amount of cash honestly invested within the enterprise as money, assessments written by way of traders. Paid-in capital increases best while there's new investment. It is different from retained profits.

What is Cash Flow?

noreply@blogger.com (Md. Imran Hossain) — Wed, 23 Mar 2022 16:56:00 +0000

What is Cash Flow?

Cash is the lifeblood of every enterprise and running out of it is the number one motive that small companies fail. Even if you are making masses of sales in case you don’t have enough coins in the financial institution your commercial enterprise won’t be able to pay its payments and live open.

That’s why it’s so important for groups to recognize the basics of cash glide and Cash Flow forecasting. Here’s everything we’ll cover in this guide to get you on top of things on the whole thing concerning cash float:

1. A coins flow definitions.

2. Calculating Cash flow.

3. The distinction among cash and profits.

4. How to analyze your coins flow statement.

A. Positive cash drift

B. Negative cash drift

c. Cash burn fee and runway

5. Why cash drift forecasting is vital

Cash Flow Definition

Cash waft measures how a great deal cash is stepping into and out of your business in the course of a selected time frame.

Businesses deliver in money through sales, returns on investments, and from loans and investments—that’s cash flowing into the commercial enterprise.

And businesses spend money on substances and services, in addition to utilities, taxes, loan bills, and other bills—that’s coins flowing out.

Cash glide is measured by means of comparing how a great deal cash flows into a enterprise during a certain time frame in comparison to how much cash flows out of that enterprise for the duration of that equal duration. Usually, cash float is measured over the route of a month or a quarter.

What’s the difference among Cash and Profit?

Believe it or no longer, it’s possible on your business to be profitable however nevertheless run out of coins. That might not be intuitive at the beginning, however it’s due to the fact cash and income are very different things. Here’s why.

Profits can encompass sales that you’ve made but haven’t been paid for yet.

Cash, on the other hand, is the quantity of money you genuinely have for your financial institution account. It represents the liquidity of your commercial enterprise and essentially, if you could’t use it right now to pay your payments, it’s now not cash.

For instance, in case you’re making a whole lot of sales however you bill your customers and they pay you “net 30,” or inside 30 days of receiving the bill, you may have lots of sales on paper but not plenty of coins for your financial institution account due to the fact your clients haven’t paid you but. Those sales will best display up to your profits declaration.

How to analyze a cash glide assertion

When studying your historical coins go with the flow statement you’re searching at the amount of actual cash you've got on hand at the beginning of the month, as compared to your cash on the give up of the month. You also can have a look at your coins glide over exclusive time frames – quarterly, for instance – however a terrific rule of thumb is to take a look at your coins float on a everyday foundation to better understand any modifications in the fitness of your business.

What Is Cannibalization (in Marketing)?

noreply@blogger.com (Md. Imran Hossain) — Wed, 23 Mar 2022 10:20:00 +0000

What Is Cannibalization (in Marketing)?

Cannibalization is the unwanted tradeoff where sales of a new service or product lower sales from existing products or services and decrease or detract from the full revenue.

Market Cannibalization Explained

Market cannibalism is likewise referred to as company cannibalism. When a company manufactures a new product or introduces a new provider, the goal is to draw a few in their present clients and a large variety of recent clients.

Unfortunately, things don’t constantly go as deliberate. Sometimes, the discharge of the new product into the market attracts a massive proportion of its contemporary client base. Failing to increase the company’s marketplace base consequences in company cannibalism.

The new watch turns into successful amongst consumers, and the organization sees a tremendous boom in its income extent. However, it does not take long before the proprietors realize that sales of their authentic watches have taken a sharp fall. The reason? Their preliminary clients have stopped shopping the older watch as they opt for the new belt-fob kind.

Importance of Market Cannibalization

In a few times, the brand new product does not only harm a business enterprise’s income volume and revenue. The worst-case scenario is that the original product gets phased out of the marketplace absolutely.

However, sometimes a commercial enterprise intentionally cannibalizes its present product with a new one. Why would a corporation introduce a brand new product line knowing very well that it’s going to jeopardize the prevailing one? – As a method for developing and expanding its operations.

Assume that ABC, the watch-making company, has been generating luxury watches for a while.

However, for some motive, the watches don’t appeal to the intended target audience. Instead of producing a totally new product, the organization comes to a decision to tweak its current lux watch. The enhancements are supposed to attract the same clients inside the marketplace.

In this example, ABC deliberately launches a brand new line of watches as it aims to maintain its modern-day clients, as well as attract new ones.

You Can Download Marketing & Related E-Books From Below:

1. The Psychology of Money

2. Crying in h Mart full version

What Is Compound Average Growth Rate (CAGR)?

noreply@blogger.com (Md. Imran Hossain) — Wed, 23 Mar 2022 10:01:00 +0000

What Is Compound Average Growth Rate (CAGR)?

Compound annual increase fee (CAGR) is the charge of go back that would be required for an investment to develop from its starting stability to its finishing

balance in case you reinvest income each yr.

The fashionable method for compound average growth rate is:

1. The compounded annual boom charge (CAGR) is one of the maximum accurate approaches to calculate and decide returns for something which can upward thrust or fall in value over the years.

2. Investors can compare the CAGR of two alternatives to evaluate how well one inventory achieved towards other shares in a peer organization or a market index.

3. The CAGR does not mirror funding hazard.

What is Brand?

noreply@blogger.com (Rakibul Islam) — Tue, 22 Mar 2022 08:59:00 +0000

What is Brand?

The brand is a complex phenomenon. Generally, A brand is a name, term, design, symbol, or any other feature that distinguishes one seller's good or service from those of other sellers.

On the Other ways, The term brand refers to a business and marketing concept that helps people identify a particular company, product, or individual. Brands are intangible, which means you can't actually touch or see them.

According to the American Marketing Association, “A name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other sellers. The legal term for a brand is a trademark. A brand may identify one item, a family of items, or all items of that seller. If used for the firm as a whole, the preferred term is a trading name.”

External Sources:

1. https://heidicohen.com/30-branding-definitions/

2. https://en.wikipedia.org/wiki/Brand

What Is an Agent?

noreply@blogger.com (Md. Imran Hossain) — Mon, 21 Mar 2022 14:19:00 +0000

What Is an Agent?

An agent is a enterprise entity that negotiates, purchases, and/or sells, however does not take title to the products.

An agent can be defined as any third-party character or organization (the “agent”) who has been legally authorized to represent a corporation (the “principal”) and input into criminal agreements on its behalf. In the US, organization law regulates the felony relationship among a enterprise and the dealers it authorizes to act on its behalf, and establishes liability for acts finished by the corporation.

The way we behavior commercial enterprise might look very one-of-a-kind without the felony framework that lets in sellers to represent groups. Corporations are themselves criminal entities and have no inherent capacity to symbolize themselves—hence, every person who acts as an worker of a commercial enterprise to finish a negotiation or settle a transaction is performing as an agent.

In widespread, the connection between the agent and the primary has three critical traits:

1. The main and agent consent to the relationship of corporation among them and enter into the relationship thru a written, verbal, or even an implicit organization agreement.

2. The agent is given the authority to take actions that effect the Important’s felony position, which includes stepping into contracts that result in the foremost obtaining new rights and obligations, as though they themselves had signed the agreement.

3. The primary sporting activities a few manage over the actions of the agent to ensure that they act effectively and with integrity on the principal’s behalf.

What Is Advertising Opportunity?

noreply@blogger.com (Md. Imran Hossain) — Mon, 21 Mar 2022 13:52:00 +0000

What Is Advertising Opportunity?

A service or product might also generate extra revenue thru advertising if there is gain from developing extra awareness, communicating differentiating attributes, hidden features or advantages. Optimizing the opportunity might also involve leveraging strong emotional shopping for motives and ability benefits.

What Is an Acid Test?

noreply@blogger.com (Rakibul Islam) — Mon, 21 Mar 2022 10:55:00 +0000

An acid check is a business’s quick-term belongings minus accounts receivable and inventory, divided by way of quick-time period liabilities.

The acid-test, or quick ratio, compares a company's most short-term assets to its most short-term liabilities to see if a company has enough cash to pay its immediate liabilities, such as short-term debt.
The acid-test ratio disregards current assets that are difficult to liquidate quickly such as inventory.
The acid-test ratio may not give a reliable picture of a firm's financial condition if the company has accounts receivable that take longer than usual to collect or current liabilities that are due but have no immediate payment needed.

This is a check of a corporation’s capacity to meet its instantaneous cash necessities. It is one of the more common commercial enterprise ratios utilized by economic analysts.

Eternal Source:

1. Investopedia

Business Terms

What Is a Partnership?

What Is a Partnership?

Partnership agreements :

What Are Pageviews?

What does strategic management mean?

Pearce and Robbins to say– “Strategic planning is the process of formulating a long-term integrated plan to achieve the organization's objectives”.

What is logistics?

What is Logistics?

ANNUITY

WHAT IS ADMINISTRATION?

What Is a Manufacturer’s Agent?

What Is a Manufacturer’s Agent?

What Is Labor?

What Is Labor?

What Are Ideas Versus Opportunities?

What Are Ideas Versus Opportunities?

Brand Equity

Importance of Brand Equity?

Keller’s Brand Equity Model

Figure 1 – Keller's Brand Equity Model

How to Apply Keller's Brand Equity Model

Step 1: Brand Identity – Who Are You?

Step 2: Brand Meaning – What Are You?

Marketing Mix

What Is Goodwill?

What Is Goodwill?

What Is a Features, Advantages, and Benefits Analysis (FAB)?

What Are Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)?

What Are Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)?

What Is Debt and Equity?

What Is Debt and Equity?

What Is a Doing Business As (DBA)?

What Is a Doing Business As (DBA)?

What Is a Business?What Is a C Corporation (C Corp)?

What Is a C Corporation (C Corp)?

What Is a C Corporation (C Corp)?

What Is Capital Input?

What Is Capital Input?

What is Cash Flow?

What is Cash Flow?

Cash Flow Definition

What’s the difference among Cash and Profit?

Profits can encompass sales that you’ve made but haven’t been paid for yet.

How to analyze a cash glide assertion

What Is Cannibalization (in Marketing)?

What Is Cannibalization (in Marketing)?

Market Cannibalization Explained

Importance of Market Cannibalization

What Is Compound Average Growth Rate (CAGR)?

What Is Compound Average Growth Rate (CAGR)?

The fashionable method for compound average growth rate is:

What is Brand?

What is Brand?

What Is an Agent?

What Is an Agent?

An agent is a enterprise entity that negotiates, purchases, and/or sells, however does not take title to the products.

In widespread, the connection between the agent and the primary has three critical traits:

What Is Advertising Opportunity?

What Is Advertising Opportunity?

What Is an Acid Test?

An acid check is a business’s quick-term belongings minus accounts receivable and inventory, divided by way of quick-time period liabilities.

What Is a Business?
What Is a C Corporation (C Corp)?