MARKETING MIX

The marketing mix is a business tool used in marketing and by marketers . The marketing mix is
often crucial when determining a product or brand's offer, and is often associated with the four
P's: price, product, promotion, and place. In service marketing, however, the four Ps are expanded
to the seven P's
[2]
or eight P'sto address the different nature of services.
Category Definition
Product A product is seen as an item that satisfies what a consumer demands. It is a
tangible good or an intangible service.Tangible products are those that have an
independent physical existence. Typical examples of mass-produced, tangible
objects are the motor car and the disposable razor. A less obvious but ubiquitous
mass-produced service is a computer operating system.
Every product is subject to a life-cycle including a growth phase followed by a
maturity phase and finally an eventual period of decline as sales fall. Marketers
must do careful research on how long the life cycle of the product they are
marketing is likely to be and focus their attention on different challenges that arise
as the product moves.
The marketer must also consider the product mix. Marketers can expand the
current product mix by increasing a certain product line's depth or by increasing
the number of product lines. Marketers should consider how to position the
product, how to exploit the brand, how to exploit the company's resources and how
to configure the product mix so that each product complements the other. The
marketer must also consider product development strategies.
[3]

Price The amount a customer pays for the product. The price is very important as it
determines the company's profit and hence, survival. Adjusting the price has a
profound impact on the marketing strategy, and depending on the price
elasticity of the product, often it will affect the demand and sales as well. The
marketer should set a price that complements the other elements of the marketing
mix.
[3]

When setting a price, the marketer must be aware of the customer perceived
value for the product. Three basic pricing strategies are: market skimmingpricing,
market penetration pricing and neutral pricing. The 'reference value' (where the
consumer refers to the prices of competing products) and the 'differential value'
(the consumer's view of this product's attributes versus the attributes of other
products) must be taken into account.
[3]

Promoti
on
All of the methods of communication that a marketer may use to provide
information to different parties about the product. Promotion comprises elements
such as: advertising, public relations, sales organisation and sales promotion.
[3]

Advertising covers any communication that is paid for, from cinema commercials,
radio and Internet advertisements through print media and billboards. Public
relations is where the communication is not directly paid for and includes press
releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and
events. Word-of-mouth is any apparently informal communication about the
product by ordinary individuals, satisfied customers or people specifically engaged
to create word of mouth momentum. Sales staff often plays an important role in
word of mouth and public relations (see 'product' above).
[3]

Distribut Refers to providing the product at a place which is convenient for consumers to
ion
(Place)
access. Various strategies such as intensive distribution, selective distribution,
exclusive distribution and franchising can be used by the marketer to complement
the other aspects of the marketing mix.

BATCH PRODUCTION
Batch production is a technique used in manufacturing, in which the object in question is
created stage by stage over a series of workstations, and different batches of products are made.
With job production (one-off production) and flow production (continuous production) it is one of
the three main production methods.
[1]

Batch production is most common in bakeries and in the manufacture of sports shoes,
pharmaceutical ingredients (APIs), purifying water, inks, paints and adhesives. In the
manufacture of inks and paints, a technique called a colour-run is used. A colour-run is where
one manufactures the lightest colour first, such as light yellow followed by the next increasingly
darker colour such as orange, then red and so on until reaching black and then starts over
again.

FLOW PRODUCTION
As a business grows the scale of its operations, it often needs to change its method of production
to allow greater production capacity.
A small business might use job or batch production to provide a personalised or distinctive
product. However, if the product is intended for much larger, mass markets, then alternative
methods of production may be required in order for the product to be produced efficiently. A
key production method in these circumstances is flow production.
Flow production involves a continuous movement of items through the production process.
This means that when one task is finished the next task must start immediately. Therefore, the
time taken on each task must be the same.
Flow production (often known as mass production) involves the use of production lines such as
in a car manufacturer where doors, engines, bonnets and wheels are added to a chassis as it
moves along the assembly line. It is appropriate when firms are looking to produce a high
volume of similar items. Some of the big brand names that have consistently high demand are
most suitable for this type of production.
JOB PRODUCTION
Job production, sometimes called jobbing or one-off production, involves producing custom
work, such as a one-off product for a specific customer or a small batch of work in quantities
usually less than those of mass-market products. Withbatch production and flow production it
is one of the three main production methods.
[1][2]

Job production can be classical craft production by small firms (making railings for a specific
house, building/repairing a computer for a specific customer, making flower arrangements for a
specific wedding etc.), but large firms use job production, too, and the products of job production
are often interchangeable, such as machined parts made by a job shop.

COLLECTIVE BARGAINING
Collective bargaining is a process of negotiations between employers and a group of employees
aimed at reaching agreements to regulate working conditions. The interests of the employees are
commonly presented by representatives of atrade union to which the employees belong.
The collective agreements reached by these negotiations usually set out wage scales, working
hours, training, health and safety, overtime, grievance mechanisms, and rights to participate in
workplace or company affairs.
[1]

The union may negotiate with a single employer (who is typically representing a company's
shareholders) or may negotiate with a group of businesses, depending on the country, to reach
an industry wide agreement. A collective agreement functions as alabor contract between an
employer and one or contract between an employer and one or more unions. Collective
bargaining consists of the process of negotiation between representatives of a union and
employers (generally represented by management, in some countries such as Austria, Sweden
and the Netherlands by an employers' organization) in respect of the terms and conditions of
employment of employees, such as wages, hours of work, working conditions, grievance-
procedures, and about the rights and responsibilities of trade unions. The parties often refer to
the result of the negotiation as a collective bargaining agreement (CBA) or as a collective
employment agreement (CEA).

PRODUCTION VS PRODUCTIVITY
Productivity is the rate at which goods are produced. Production is defined as the act of
manufacturing goods for their use or sale.
Productivity is the ratio of output to input in production. It is a measure of the efficiency of
production. It is related to the utilization or the use of resources to produce goods. It increases
the output. It is the increase of output from each unit in the production process. If inputs
remain the same and the production of output increases, then there is a rise in the level of
productivity. If the output rises in a greater proportion than the increase in the input, there is
still a proportionate rise in the level of productivity. However, if the output rises at a lower rate
than the input, then there will be a fall in the productivity, even though there is an increase in
production on the whole. Higher productivity results in a lower cost per unit of output resulting
in higher levels of profit for a company. Thus, it refers to efficient utilization of resources. High
productivity increase the economic well-being. It increases the income and the standard of living
of the people. It brings in money for the company.
Productivity has the following advantages:
It emphasizes the efficient utilization of all the factors of production which are scarce
universally.
It attempts to eliminate wastage.
It facilitates the comparison of the performance of a company to its competitors or related
firms, in terms of aggregate results and of major components of performance.
It enables the management to control the performance of the company by identifying the
comparative benefits rising out of the use of different inputs.
According to Wikipedia, production is the act of creating output, goods or services which have
values and contributes to the utility of individuals. This may include factors of production other
than labor. The factors of production are the inputs to the production process. The finished
goods are the output. The input determines the quality of the output product. Input is the
starting point and output is the end point of the production process, and such an input-output
relationship is called as the production function.
There are three basic factors of production: land, labor and capital. All three are required in
combination at a time to produce a commodity. In economics, production means creation or an
addition of utility. Factors of production are any commodities or services used to produce goods
or services. These factors are specifically referred to as primary factors. Energy and material are
referred to as secondary factors. The primary factors facilitate production but neither become
part of the product nor become significantly transformed by the production process. Human
capital and entrepreneurship are also considered as factors of production. The factors affecting
the production are as follows:
Land represents all natural resources, such as timber and gold, used in the production of
goods.
Labor is all of the work that laborers and workers perform at all levels of an organization.
The entrepreneur also takes on all of the risks and rewards of the business.
The capital is all of the tools and machinery used to produce goods or services.
Comparison between Productivity and Production:
Productivity Production
Definition It is defined as the rate at
which goods are produced.
It is defined as the act of
manufacturing goods for
their use or sale.
Use It is the utilization of
resources to form goods.
It is the actual process of
conversion.
Work done It is the amount of work one
gets for a certain spending
cost.
It is the amount of work
done or manufactured that
is the output.
Measurement It is the measure of
efficiency.
It is the measure of
produced goods.
Importance of Productivity: Productivity increases output. High productivity results in lower
cost per unit of output resulting in higher levels of profit for a business. For example, a factory
worker can produce 10 items in an hour and he subsequently produces 20 units in the same
hour after some training. His productivity has doubled and the business will benefit from a fall
in unit cost as more units are being produces at the same costs of production.
Higher profits for the firm will mean more funds available for its expansion, new business
ventures and community support. It may also wish to pass on the benefits of lower costs to
consumers in the form of lower prices.

SALES VS MARKETING
Marketing and sales are both activities aimed at increasing revenue. They are so closely
intertwined that people often dont realize the difference between the two. Indeed, in small
organizations, the same people typically perform both sales and marketing tasks. Nevertheless,
marketing is different from sales and as the organization grows, the roles and responsibilities
become more specialized.


Marketing Sales
Approach Broader range of activities to sell
product/service, client relationship
etc.; determine future needs and has
a strategy in place to meet those
needs for the long term relationship.
makes customer demand match the
products the company currently
offers.
Focus Overall picture to promote, distribute,
price products/services; fulfill
customer's wants and needs through
products and/or services the
company can offer.
fulfill sales volume objectives
Process Analysis of market, distribution
channels, competitive products and
services; Pricing strategies; Sales
tracking and market share analysis;
Budget
Usually one to one
Scope Market research; Advertising; Sales;
Public relations; Customer service
and satisfaction .
Once a product has been created for
a customer need, persuade the
customer to purchase the product
to fulfill her needs
Horizon Longer term Short term
Strategy pull push
Priority Marketing shows how to reach to the
Customers and build long lasting
relationship
Selling is the ultimate result of
marketing.
Identity Marketing targets the construction of
a brand identity so that it becomes
easily associated with need
fulfillment.
Sales is the strategy of meeting
needs in an opportunistic,
individual method, driven by human
interaction. There's no premise of
brand identity, longevity or
continuity. It's simply the ability to
meet a need at the right time.

GROWTH SHARE MATRIX OR BCG MATRIX
The growthshare matrix (aka the product portfolio, BCG-matrix, Boston matrix, Boston
Consulting Group analysis, portfolio diagram) is a chart that was created by Bruce D. Henderson
for the Boston Consulting Group in 1970 to help corporations to analyze their business units,
that is, their product lines. This helps the company allocate resources and is used as an
analytical tool in brand marketing, product management, strategic management, and portfolio
analysis.[2] Analysis of market performance by firms using its principles has recently called its
usefulness into question.
To use the chart, analysts plot a scatter graph to rank the business units (or products) on the
basis of their relativemarket shares and growth rates.
Cash cows is where company has high market share in a slow-growing industry. These units
typically generate cash in excess of the amount of cash needed to maintain the business.
They are regarded as staid and boring, in a "mature" market, and every corporation would be
thrilled to own as many as possible. They are to be "milked" continuously with as little
investment as possible, since such investment would be wasted in an industry with low
growth.
Dogs, more charitably called pets, are units with low market share in a mature, slow-growing
industry. These units typically "break even", generating barely enough cash to maintain the
business's market share. Though owning a break-even unit provides the social benefit of
providing jobs and possible synergies that assist other business units, from an accounting
point of view such a unit is worthless, not generating cash for the company. They depress a
profitable company's return on assets ratio, used by many investors to judge how well a
company is being managed.Dogs, it is thought, should be sold off.
Question marks (also known as problem children) are business operating in a high market
growth, but having a low market share. They are a starting point for most businesses.
Question marks have a potential to gain market share and become stars, and eventually cash
cows when market growth slows. If question marks do not succeed in becoming a market
leader, then after perhaps years of cash consumption, they will degenerate into dogs when
market growth declines. Question marks must be analyzed carefully in order to determine
whether they are worth the investment required to grow market share.
Stars are units with a high market share in a fast-growing industry. They are
graduated question marks with a market or niche leading trajectory, for example: amongst
market share front-runners in a high-growth sector, and/or having a monopolistic or
increasingly dominant USP with burgeoning/fortuitous propositiondrive(s) from: novelty
(e.g. Last.FM upon CBS Interactive's due diligence), fashion/promotion (e.g. newly
prestigious celebrity branded fragrances), customer loyalty (e.g. greenfield or military/gang
enforcement backed, and/or innovative, grey-market/illicit retail of addictive drugs, for
instance the British East India Company's, late-1700s opium-based Qianlong Emperor
embargo-busting, Canton
System), goodwill (e.g. monopsonies)
and/or gearing (e.g. oligopolies, for
instance Portland cement
producers near boomtowns),
[citation needed]
etc. The
hope is that stars become next cash cows.
Stars require high funding to fight competitions
and maintain a growth rate. When industry
growth slows, if they remain a niche leader or
are amongst market leaders its have been able
to maintain their category leadership stars
become cash cows, else they become dogs due
to low relative market share.
As a particular industry matures and its growth
slows, all business units become either cash cows or dogs. The natural cycle for most
business units is that they start as question marks, then turn into stars. Eventually the
market stops growing thus the business unit becomes a cash cow. At the end of the cycle the
cash cow turns into a dog.




Difference Between Personnel Management And Human Resource Management
Human resource management is the new version of personnel management. There is no any
watertight difference between human resource management and personnel management.
However, there are some differences in the following matters.
1. Personnel management is a traditional approach of managing people in the organization.
Human resource management is a modern approach of managing people and their strengths
in the organization.
2. Personnel management focuses on personnel administration, employee welfare and labor
relation. Human resource management focuses on acquisition, development, motivation and
maintenance of human resources in the organization.
3. Personnel management assumes people as a input for achieving desired output. Human
resource management assumes people as an important and valuable resource for achieving
desired output.
4. Under personnel management, personnel function is undertaken for employee's
satisfaction. Under human resource management, administrative function is undertaken for
goal achievement.
5. Under personnel management, job design is done on the basis of division of labor. Under
human resource management, job design function is done on the basis of group work/team
work.
6. Under personnel management, employees are provided with less training and
development opportunities. Under human resource management, employees are provided
with more training and development opportunities.
7. In personnel management, decisions are made by the top management as per the rules
and regulation of the organization. In human resource management, decisions are made
collectively after considering employee's participation, authority, decentralization,
competitive environment etc.
8. Personnel management focuses on increased production and satisfied employees. Human
resource management focuses on effectiveness, culture, productivity and employee's
participation.
9. Personnel management is concerned with personnel manager. Human resource
management is concerned with all level of managers from top to bottom.
10. Personnel management is a routine function. Human resource management is a
strategic function.

MANAGEMENT BY OBJECTIVES (MBO)
Management by objectives (MBO), also known as management by results (MBR), is a process of
defining objectives within an organization so that management and employees agree to the
objectives and understand what they need to do in the organization in order to achieve them.
The term "management by objectives" was first popularized by Peter Drucker in his 1954 book
The Practice of Management.[1]

The essence of MBO is participative goal setting, choosing course of actions and decision
making. An important part of the MBO is the measurement and the comparison of the
employees actual performance with the standards set. Ideally, when employees themselves have
been involved with the goal setting and choosing the course of action to be followed by them,
they are more likely to fulfill their responsibilities.

According to George S. Odiorne, the system of management by objectives can be described as a
process whereby the superior and subordinate jointly identify its common goals, define each
individual's major areas of responsibility in terms of the results expected of him, and use these
measures as guides for operating the unit and assessing the contribution of each of its members.

Advantages
Behind the principle of Management by Objectives (MBO) is for employees to have a clear
understanding of the roles and responsibilities expected of them. Then they can understand how
their activities relate to the achievement of the organization's goal. Also places importance on
fulfilling the personal goals of each employee.
Some of the important features and advantages of MBO are:
1. Motivation Involving employees in the whole process of goal setting and increasing
employee empowerment. This increases employee job satisfaction and commitment.
2. Better communication and coordination Frequent reviews and interactions between
superiors and subordinates helps to maintain harmonious relationships within the
organization and also to solve many problems.
3. Clarity of goals
4. Subordinates tend to have a higher commitment to objectives they set for themselves than
those imposed on them by another person.
5. Managers can ensure that objectives of the subordinates are linked to the organization's
objectives.
6. Common goal for whole organization means it is a directive principle of management.
Limitations
There are several limitations to the assumptive base underlying the impact of managing by
objectives including:
1. It over-emphasizes the setting of goals over the working of a plan as a driver of outcomes.
2. It under-emphasizes the importance of the environment or context in which the goals are
set. That context includes everything from the availability and quality of resources, to
relative buy-in by leadership and stake-holders. As an example of the influence of
management buy-in as a contextual influencer, in a 1991 comprehensive review of thirty
years of research on the impact of Management by Objectives, Robert Rodgers and John
Hunter concluded that companies whose CEOs demonstrated high commitment to MBO
showed, on average, a 56% gain in productivity. Companies with CEOs who showed low
commitment only saw a 6% gain in productivity.

LEVELS OF MANAGEMENT
The term Levels of Management refers to a line of demarcation between various managerial
positions in an organization. The number of levels in management increases when the size of the
business and work force increases and vice versa. The level of management determines a chain
of command, the amount of authority & status enjoyed by any managerial position. The levels of
management can be classified in three broad categories:
1. Top level / Administrative level
2. Middle level / Executory
3. Low level / Supervisory / Operative / First-line managers
Managers at all these levels perform different functions. The role of managers at all the three
levels is discussed below:


1. Top Level of Management
It consists of board of directors, chief executive or managing director. The top
management is the ultimate source of authority and it manages goals and policies for an
enterprise. It devotes more time on planning and coordinating functions.
The role of the top management can be summarized as follows -
a. Top management lays down the objectives and broad policies of the enterprise.
b. It issues necessary instructions for preparation of department budgets, procedures,
schedules etc.
c. It prepares strategic plans & policies for the enterprise.
d. It appoints the executive for middle level i.e. departmental managers.
e. It controls & coordinates the activities of all the departments.
f. It is also responsible for maintaining a contact with the outside world.
g. It provides guidance and direction.
h. The top management is also responsible towards the shareholders for the
performance of the enterprise.

2. Middle Level of Management
The branch managers and departmental managers constitute middle level. They are
responsible to the top management for the functioning of their department. They devote
more time to organizational and directional functions. In small organization, there is only
one layer of middle level of management but in big enterprises, there may be senior and
junior middle level management. Their role can be emphasized as -
a. They execute the plans of the organization in accordance with the policies and
directives of the top management.
b. They make plans for the sub-units of the organization.
c. They participate in employment & training of lower level management.
d. They interpret and explain policies from top level management to lower level.
e. They are responsible for coordinating the activities within the division or
department.
f. It also sends important reports and other important data to top level management.
g. They evaluate performance of junior managers.
h. They are also responsible for inspiring lower level managers towards better
performance.

3. Lower Level of Management
Lower level is also known as supervisory / operative level of management. It consists of
supervisors, foreman, section officers, superintendent etc. According to R.C. Davis,
Supervisory management refers to those executives whose work has to be largely with
personal oversight and direction of operative employees. In other words, they are
concerned with direction and controlling function of management. Their activities include
-
a. Assigning of jobs and tasks to various workers.
b. They guide and instruct workers for day to day activities.
c. They are responsible for the quality as well as quantity of production.
d. They are also entrusted with the responsibility of maintaining good relation in the
organization.
e. They communicate workers problems, suggestions, and recommendatory appeals
etc to the higher level and higher level goals and objectives to the workers.
f. They help to solve the grievances of the workers.
g. They supervise & guide the sub-ordinates.
h. They are responsible for providing training to the workers.
i. They arrange necessary materials, machines, tools etc for getting the things done.
j. They prepare periodical reports about the performance of the workers.
k. They ensure discipline in the enterprise.
l. They motivate workers.
m. They are the image builders of the enterprise because they are in direct contact
with the workers.

SALES FORECASTING
Sales forecasting is a crucial topic of management, during which many managers believe that
they are the masters, however the sales forecast is absolutely delicate area of work where the
people seldom get bounced and suffer heavy discrepancy in the figures targeted and the actual
ones, thus the experts have a dispute on the topic to call the Sales Forecast a science or an art.
The short answer is that it is a bit of both.

Sales Forecast What's that??
Every company has its own method to forecast sales through the team of forecast professionals.
Business experts agree that sales forecasting should be a joint effort. Generally the best people
to perform such activities are those most closely involved with the company's sales activities.
Involvement includes not only direct relationships with customers, but also an awareness of
market conditions, and key staff members from production, inventory management and
marketing creates teamwork and improves sales projections. Sales forecasting uses past figures
to predict short-term or long-term performance, which is difficult task, because various factors
can affect future sales. But there are several standard methods that can produce consistently
accurate sales forecasts from year to year. Without sales forecasts, it's very difficult to drive the
company towards profits. Sales forecast needs to be performed, reviewed and compared with
actual performance results on a regular basis. It is a routine tune-up that keeps the gears of
your business running smoothly so your company can achieve a higher performance record.
Although comfort level may vary, sales forecasts should be conducted monthly during the first
year, and quarterly after that. The more often you forecast, the better your chances of weeding
out extreme variations in year-to-year sales.

Need and Importance for Sales Forecast
Note that the Sales Forecast is not necessarily the same as a sales target or a sales budget.
A sales target (or goal) is set for the sales team as a way of defining and encouraging sales effort,
thus sales targets are often set higher than estimated sales to stretch the efforts of the sales
force and this sales forecast is a more conservative estimate of the expected volume of sales.
Sales budgets need to take into account the risks involved in sales forecasting. They are,
therefore, generally set lower than the sales forecast. Sales forecasting is a self-assessment tool
for a company. One has to keep track of company to know how healthy it is. Sales forecast
reports and analyze the health of business. It can make the difference between just surviving
and being highly successful in business. It is a phenomenal part of a company's annual budget.

IMPORTANCE OF EMPLOYEE TRAINING

Training is essential to the achievements of a business. Perhaps its most positive benefit is
better employees. A company develop the potential of an employee, and part of the way a
company encourages improvement is through training. Often, good training is just as important
as a good benefits package for an employee.
For employers, training allows them to locate a wider range of people with the kind of outlook
that matches the company mission statement. The right kind of perspective is a hard thing to
cultivate, whereas workplace specific proficiencies are easier to nature. The other advantage
employers should remember about training is it offers them an improved retention
rate. Employees are more loyal to companies that value their growth and want to cultivate it,
and thusly provide a better performance and decrease the rollover rate at any company, no
matter how small or large. If an employee thinks a company values him or her, that sentiment
will go into whatever the employee is designing, selling, manufacturing, etc.
However, the kind of training an employee receives is very important. Allowing an employee to
simply pass through a sort of substandard 101 training course does not ensure
improvement. Every single part of the management at a company must completely sustain the
training. Otherwise, there is no point in wasting even a shoddy effort at training. Cheap
training will result in cheap work:quality employees require quality training programs, which
means spending a bit more money. Excellent training programs emphasize a correlation
between personal development and official evaluations, allowing an employee to discern that
career growth and success means evolving their expertise with training.
Improving employee skills is not only about improving skills related to their specific field, but
also improving skills related to the interpersonal and communication. These abilities are
constantly developing and perhaps more important than field related abilities. A person can be
average in their field skills, but an excellent communicator with fantastic people skills is an
asset to a company. These kinds of employees tend to fit better with a company. Other skills
that should be emphasized besides those related to industry and interpersonal include how
management time effectively, how to deal with disputes, and how to build a strong team.
How do you begin to create a business training program appropriate to your company? Detailed
analysis and your current employees are a good place to start asking what works and what does
not. Ask them what kinds of things would help them improve because the right kinds of
questions provide a company with a great return. Employees will improve job performance
dramatically and the company too.