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MARKETING MIX

The marketing mix is a business tool used inmarketing 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, andplace. 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 themotor car and the disposablerazor.A less obvious but ubiquitous

mass-produced service is acomputer operating system.

Every product is subject to alife-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 theproduct 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 theprice

elasticity of the product, often it will affect thedemand 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 thecustomer perceived

value for the product. Three basic pricing strategies are:market skimmingpricing,

marketpenetration 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 andsales 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 engagedto 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

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ion

(Place)

access. Variousstrategies such as intensive distribution, selective distribution,

exclusive distribution andfranchising 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.Withjob production (one-off production) andflow 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 usejob 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 isflow 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 calledjobbingor 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 andflow production it

is one of the three main production methods.[1][2]

Job production can be classicalcraft 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 ofteninterchangeable,such asmachined parts made by ajob shop.

COLLECTIVE BARGAINING

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Collective bargainingis 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]

Theunion 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 ofnegotiation between representatives of a union and

employers (generally represented by management, in some countries such as Austria, Sweden

and the Netherlands by anemployers' 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 ofproductivity. 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 scarceuniversally.

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 thecomparative 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 otherthan 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.

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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 ofgoods.

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 ProductionDefinition 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

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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 throughproducts 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 productto 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 ofbrand 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 ascatter graph to rank the business units (or products) on the

basis of their relativemarket shares and growth rates.

Cash cowsis where company has high market share in a slow-growing industry. These unitstypically 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

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investment as possible, since such investment would be wasted in an industry with low

growth.

Dogs, more charitably calledpets, are units with low market share in a mature, slow-growingindustry. 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'sreturn on assets ratio, used by many investors to judge how well acompany is being managed.Dogs, it is thought, should be sold off.

Question marks (also known as problem children) are business operating in a high marketgrowth, 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.

Starsare units with a high market share in a fast-growing industry. They aregraduated question marks with a market or niche leading trajectory, for example: amongstmarket share front-runners in a high-growth sector, and/or having amonopolistic or

increasingly dominantUSP with burgeoning/fortuitouspropositiondrive(s) from: novelty

(e.g.Last.FM upon CBS Interactive's due diligence), fashion/promotion (e.g. newly

prestigiouscelebrity branded fragrances),customer loyalty (e.g.greenfield ormilitary/gang

enforcement backed, and/or innovative,grey-market/illicit retail of addictive drugs, for

instance theBritish East India Company's, late-1700s opium-based Qianlong Emperor

embargo-busting, Canton

System),goodwill (e.g.monopsonies)

and/orgearing (e.g.oligopolies, for

instancePortland cementproducers nearboomtowns),[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 cowsor 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

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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 laborrelation. 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. Underhuman 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.

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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 increasingemployee empowerment. This increases employee job satisfaction and commitment.

2. Better communication and coordination Frequent reviews and interactions betweensuperiors and subordinates helps to maintain harmonious relationships within the

organization and also to solve many problems.

3. Clarity of goals4. 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'sobjectives.

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 ofmanagement can be classified in three broad categories:

1. Top level / Administrative level2. Middle level / Executory

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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 moreloyal 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 thatcareer 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 abusiness training program appropriate to your company? Detailed

analysis and your current employees are a good place to start asking what works and what doesnot. 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.

http://www.cio.com/article/29836/10_Ways_to_Develop_Truly_Loyal_Employeeshttp://www.nysdra.org/whatisdr/whatisdr.aspxhttp://www.dalecarnegie.co.uk/http://www.dalecarnegie.co.uk/http://www.nysdra.org/whatisdr/whatisdr.aspxhttp://www.cio.com/article/29836/10_Ways_to_Develop_Truly_Loyal_Employees