Ob is an applied behavioral science that is built on contribution from a number of behavioral disciplines. The predominant areas are:-
a) Psychology:- The science that sets to explain and sometimes change the behavior of human being. The contribution includes study of topics like Motivation, personality, Emotions, Job Satisfaction etc.
b) Sociology:- The study people in relation to them human beings. The contribution includes study of topics like Group dynamics, work team, communication, power etc.
c) Anthropology:- The study of societies to learn about human being and their activities. The contribution includes study of topics like organizational culture, organizational environment, cross-cultural analysis etc.
d) Political science:- The study of individual and groups within a political environment. The contribution includes the study of topics like conflict, Intra-organizational politics, power etc.

One of the most important and broad based challenges currently facing organizations is adapting to people who are different. The term to describe this challenge is work force diversity. While globalization focuses on differences between people from different countries work force diversity addresses differences among people within given countries.

Work force means that organizations are becoming more heterogeneous in terms of gender, which varies from the so-called norm. It includes women, south Indians, Bengalines, Punjabis, physically disabled, elderly etc.

Work forces diversity has important implications for management practice. Managers have to shift their philosophy from treating everyone alike to recognizing differences and responding to those differences in ways that ensure employee retention and greater productivity while at the sometimes, not (page no 7) discriminating. This shift includes, for instead, providing diversity training and revamping benefits programs to accommodate the different employees. Work force diversity if positively managed, can increase creativity and innovation in organizations as well as improve decision making by providing different perspectives on problems. When work diversity is not managed properly, there is potential for higher turnover, more difficult communication and more interpersonal conflicts.

Public relations (PR)
Public relations is define as a variety of programmed designed to improve, maintain or protect a company or product image.
PR department perform the following five activities-
1) Press Relation:- The aim of pres relations is to place newsworthy information into the news media to attract the attention to a person product or service.
2) Corporate communication:- This activity covers internal and external communications and promotes understanding of the organization.
3) Product publicity:- Product publicity involves various efforts to publicize products.
4) Lobbying:- lobbying involves dealing with legislators and government officials to promote or defeat legislation and regulation.
5) Counseling:- Counseling involves advising management about public issues and company position and image.
The appeal of public relations is based on its three different qualities-
1) High creditability:- News stories and features seem more authentic and credible to readers then ads to.
2) Off guard:- PR can reach many prospects who might avoid sales people and advertisements. The message gets to the buyer as news rather then as sales directed communication.
3) Dramatization:-PR has, like advertising, a potential for dramatizing a company or product.

Marketing PR can contribute to the following tasks:-
a) Assist in the launch of new product
b) Assist in repositioning a mature product
c) Build up interest in product category
d) Influence specific target groups
e) Defend products have encountered public problem
f) Build the corporate image on its products.

Frequency (F) The number of times within a specified time period then an average person or household is exposed to the message.
Impact (I) The qualitative value of an exposure through a given medium.
Reach is more important when launching new products or flanker brands, or going after an undefined target market. Frequency is more important where there are strong competitors, high consumer resistance or a frequent purchase cycle.
Choosing among major media types:- Media planners make their choice among telephone, newspapers, television, mail , radio and outdoors by considering several variables, the most important being:-
Target Audience media habits:- For ex. Ratio and television are the most effective media for reaching teenagers.
Product:- Women’s dresses are best shown in color magazines and Polaroid cameras are best demonstrated on television. Media types have different potentials for demonstration, explanations and believability.
Message:- A message announcing a major sale will require radio or newspapers. A message containing a great deal of technical or mailing.

Selecting specific media vehicle :-

The media planner relies of media measurement service that provide estimates of audience size, composition and media cost. Audience size has several possible measures –
Circulation:- The number of physical units of exposed to the vehicle.
Audience:- the number of people with the target characteristics who are exposed to the vehicle.

Effective ad-exposed audience:- The number of people with the target’s characteristics who actually saw the ad.
The cost per thousand criteria:- Media planners circulate the most per thousand persons reached by a vehicle. In a full page ad in business today costs rs. 84,000 and business today’s estimated readership is three million people, the cost of reaching one thousand persons ties approx rs. 28/-. The same advertisement in business week may cost rs. 3000/- but reach only 7,75,000 person-at a cost of per thousand of rs. 39/-. The media planner would rank each magnize/newspaper by cost per thousand and favor those publications with the lowest per thousand for reaching target consumers.

The first step in developing an advertising program is to get the advertising objectives. These objectives must flow from prior decisions on the target market, market positioning and marketing mix. The marketing positioning and marketing mix strategies define the job that advertising must do in the total marketing program.
Advertising objectives can be classified as to whether their aim is to inform, persuade or remind.
Informative advertising figures heavily in the pioneering stage of a product category, where the objective is to build primary demand.
Persuasive advertising has moved into the category of comparison advertising, which seeks to establish the superiority if one brand through specific comparison with one or more other brands in the product class.
Reminder advertising is highly important in the nature stage of the product to keep the consumer thinking about the product. A related from of advertising is reinforcement advertising which seeks to assure current purchasers that they have made a right choice.

Deciding on the Advertising Budget (Money)

Four common methods are used to set a promotion budget:-
a) Affordable method:- Many companies set the promotion budget at what they think the company.
b) Percentage of sales method:- Many companies set their promotion expenditure at a specified percentage of sales or of the sales price .
c) Competitive party method:- Some companies set their advertising budget to achieve share of voice party with their competitors. The marketing manager believes that by spending the same percentage of his sales on advertising as his competitor, he will maintain his market share.
d) Objective and task method:- The objective and task method calls upon marketers to develop their promotion budgets by defining their specific objectives, determining the objectives and estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget.
Some specific factors that are considered when setting the advertising budget are:-
Stage in the product life cycle:- New product typically receive large advertising budgets to build awareness and to gain consumer trail. Established brands usually are supported with lower budgets as a ratio to sales.
Market share and consumer base:- High market share brands usually require less advertising expenditure as a percentage of sales to maintain their share. To build share by increasing market size or market share requires larger advertising expenditure.
Competition and cluster:- In a market with a large number of competitors and high advertising spending a brand must advertise more heavily to be heard above the noise in the market.
Advertising frequency:- The number of repetitions needed to put across the brand’s message to consumers also determine the advertising budget.
Product substitutability:- Brands in a commodity class require heavy advertising to establish differential image.
Deciding on the message:
Ideally, the message should gain attention hold interest, arouse desire and direct action (AIDA model). Formulating the message will require solving problems like:- what to say, how to say it logically, how to say symbolically and who should say it.

Message Content:- The communicators has to figure out what to say to the target audience to produce the desired response. This process is variously called appeal, theme, idea or unique selling proposition. There types of appeals can be distinguished-
1) Rational appeal- appeal to the audience’s self interest. They show that the product will produced the claimed behalf. Ex. Would be message demonstrating a product’s quality, economy, value or performance.2) Emotional appeal attempts to stir up some negative or positive emotions that will motivate purchase. Communicators have worked with fear, guilty and shame appeals in getting people to do things they should or stop doing things they should not. Communicators also use positive emotional appeals such as humour, love, pride and joy.(3) Moral appeals are proper. They are often used to exhort people to support social causes such as cleaner environment equal right for woman and aid to the disadvantaged.
Message Structure:- A message effectiveness depands on its structure as well as its contents. Order of presentation raises the question of whether a communicator should present the strongest argument first or last. The strongest message first has the advantage of establishing attention and interest. This is important in newspapers and other media where the audience does not attend to the whole message.
Message Format:- The communicator must develop a strong format for the message. In a print ad, the communicator has to decide on the headline, copy, illustration and color. If the message has to be carried over the ratio, the communicator has to carefully choose words, voice quality and vocalization.
Message source:- Messages delivered by attractive sources achieve higher attention and recall. Advertisers of the use celebrities as spokespeople. Pharmaceutical companies want doctors to testify about their products, benefits, because doctors have high credibility.

Gross Working Capital Concept
According to this concept, working capital means gross working capital which is the total of all the current assets of a business.
Gross Working Capital= Total Current Assets
Definitions favoring this concept are-
“Working Capital means total of Current Assets.”- Mead, Mallott and Field
Persons acknowledge the total of current ass5ets as working capital gives the following arguments in their favors:
(1) Just as fixed assets are considered as the symbol of fixed capital, current assets must also be considered as symbol of working capital.
(2) Any acquisition of fund increases the working capital. This statement proves true according to this concept whereas it does not hold true according to the second concept.
(3) Most of the managers plan their business operations according to the current assets concept because these are the assets used in day-to-day business operations.
(4) Utility of current assets remains the same whether financed from long term loans or short term loans. Hence, the total amount of current assets must be treated as working capital.

Whole sellers differ from retailers in a number of ways. first , wholes sellers pay less attention to promotion , atmosphere and location, because they are dealing with business customers rather than final consumes, second, wholesale transactions are usually cover a larger trade area than retailers. Third, the government deals with wholesalers and retailers differently in regard to legal regulations and taxes.

Major Wholesaler Type :- The major types of wholesalers
1) merchant wholesalers
2) Brokers and Agents and
3) Manufacturers’ Agents.

1) merchant wholesalers :- They are independently owned businesses that take title to the merchandise they handle. In different trades they are called jobbers, distributors, or mill supply houses.
2) Brokers and Agents:- They differ from merchant wholesalers in two ways. They do not take title to goods, and they perform only few functions. Their main function is to facilitate buying and selling, and for their they earn a commission.
3) Manufacturer’s Agents :- manufacturer’s agents represent two or more manufacturers of complimentary lines. They enter into a formal written agreement with each manufacture covering price policy, territories, order-handling procedures, delivery service and warranties and commission rates. They use there wide contacts to sell the manufacturer’s products, manufacturer’s agents are used to sell such lines as apparel, electrical afford to maintain their own sales-force and by large manufactures who want to use agents territories.

Wholesaler Marketing Decisions

Product Assortment and service decisions :- The wholesaler’s product is their assortment wholesalers are under great pressure to carry a full line and maintain sufficient stork for immediate delivery.
Place Decision:- Wholesalers typically located in low rent, low tax area and put little money into their physical settings and offices.

Hereditary:- Hereditary refers to those factors that were determined by conception. Physical stature, facial alteration, gender temperament, energy level and biological rhythms are characteristics that are either completely or substantially influenced by parents. Evidence demonstrates that traits such as shyness, fear and distress are most likely caused by inherited genetic characteristics.

If personality characteristics were completely dictated by heredity, they would be fixed at birth and no amount of experience would alter them. If one is relaxed and easygoing as a child, for ex. that would be the result of one’s genes, and it would not be possible to change those characteristics. But personality characteristics are not completely dictated by heredity.

Environment:- Among the factors that exact pressures on our personality formation are the cultures in which we are area raised; our earlier conditioning the norms among our family, friends and social groups and other influences that we experience. These environmental factors play a substantial role in shaping our personalities. Cultural establishes the norms attributes and values that are passed along from generations to the and create consistencies of time ideology that is only moderate intensely fostered in one culture may only have emphasis in another. It can be concluded that both heredity and environment are the primary determinations of personality.

Situations:- The third factor, the situation influences the effects of heredity and environment on personality. An individual’s personality, although generally stable and consistent does change in different situations. The different demands of different situations call forth different aspects of one’s personality. So we shouldn’t look at personality patterns in isolation.

Determinations of personality that are more input than in others in shaping the personality of a manager include:-
1. Locus of control:- The degree to which people believe they masters of their own fate. Individuals who believe that they control what happens to them make more successful manager than those who believe that what happens to them is controlled by outside forces such as luck or chance.
2. Introvert and Extrovert:- Extrovert i.e. individuals who are gregarious and social are more successful as managers than Introverts i.e. individuals who are shy, quite and retiring.

Retailers can be various types:-
a) Store retailer
b) Non store retailers

a)Store retailer:- Store retailers includes:-
a) Specialty store:- A specialty store carries a narrow product line with a deep assortment within that line examples of specialty retailers are apparel stores, sporting goods stores.
b) Department store:- A department store carries several products lines, typically clothing, home furniture and household goods.
c)Super market:-A supermarket is a relatively large, low cost, low margin high volume self service operation designed to serve the consumer’s total need for food and household-maintains product.
d) Convenience store:- Convenience stores are relatively small stores that are located near residential areas; are open long house and seven days limited line of high turnover convenience products.

B) Non store retailing includes:-
a) Direct Selling:- It involves oral presentation in a conversation with one or more prospective purchases for the purpose of making sales.
b) Automatic vending:- Automatic vending through coined operated machines has been a major port would war-II growth area. Automatic vending has been applied to a considerable variety of merchandise including impulse goods with high convenience value (soft drinks, candy). Vending machines offer customers the advantages of twenty four hour selling, self service and unhanding merchandise.

Retail marketing decisions:-
a) Target market decision::- A retailer’s most important decision concerns the target. Should the store focus on upscale, mid- scale or downscale shoppers? Do the target shoppers want variety, assortment depth or convenience?
b) Product assortment and service decision:- Retailers have to decide on three major product variable that help position their store to their target market, namely product assortment, service mix and store atmosphere.
The retailers product assortment must match the shopping expectations of the target market. The retailer has to decide on product assortment breadth and depth. Retailers must also decide on the service mix to offer customers. The old “mom and pop” grocery stores offered home delivery, credit, services that today’s supermarket have corpulently eliminated.
The store’s atmosphere is a third element in its product arsenal. Every store has a physical layout that makes it hard or easy to move around. Every store has a “look”; one store is dirty, another is charming, a third is palatial, a fourth is somber. T store must embody a planned atmosphere that suits the target market and draws them towards purchase.

Price decision:- The retailer’s price are key positioning far for and must be decided in relation to the target market, the product and service assortment mix and competition. All retailers would like to charge high mark ups and achieve high volumes; but usually the two do not go together .most retailers fall into the high markup highs volume group (mass merchandisers and discount stores)
Promotion Decision:- the retailer must use promotion today that support and reinforce its image positioning. Fine stores will place full page tasteful ads in magazines and train their safes people to greet customers. Discounter will use less trained people to and use tow cost promotional tools to generate traffic.

Place Decisions :- retailers are ;accustomed to saying that the key to success in retailing is “location”. For example customers primarily choose the bank that is nearest to them Department – store chains, oil companies and last food franchisers exercise great case in selecting location.

Product characteristics:- Perishable products require more direct marketing because of the dangers associated with delays and repeated handling. Bulky products require channels that minimize the shipping distance. Custom-built machinery and specialized business forms are sold directly by company sales representatives because middlemen lack the requisite knowledge. Products requiring installation and/or maintenance services are usually sold and maintained by the company or exclusively branches dealers.
Competitive characteristics:- Channel design is influenced by the competitor’s channels. The produces may want to compete in or near the same outlets carrying the competitor’s products. In some other industries, producers may want to avoid the channels used by competitors.

C) Identifying the major channel alternatives-

After a company has defined its target market and desired positioning it should identify its channel by three elements:-
1) The type of business intermediaries
2) The number of intermediaries and
3) Terms and responsibilities of each channel participants.

1) Types of intermediaries:-
The firm has following channel alternatives-
Company Sales force:- Expend the company’s direct sales force. Assign to contact all prospects in the area. Or develop separate sales force for different products.
Manufacture’s Agency:- Hire agencies in different regions sell the equipment.
Industrial Distributors:- Find distributors in the different regions who will buy and carry device. Give them exclusive distribution adequate margins and promotional support.
2) The number of intermediaries:-
Company has to decide on the number of middlemen to use at each channel level. Three strategies are available.
Intensive Distribution:- Producers of convenience goods etc. typically seek intensive distribution that is stocking their product in numerous outlets. These goods must have place utility.
Exclusive Distribution:- Some producers limit the number of intermediaries handling their products. Through exclusive distribution the manufacturer hopes to obtain more aggressive and knowledgeable selling and more control over intermediaries polices on prices, promotion, credit and various activities.
3) Terms and responsibilities of channel members:- The producer must determine the conditions and responsibilities of the participating channel members. The main elements in the trade relation mix are price policies, conditions of sale, territorial rights and specific service to be performed by each party.

4) Evaluating the major channel alternatives:-
Each channel alternative needs to be evaluated against economic, control and adaptive criteria.
Economic criteria:- Each channel alternative will produce a different level of sales and cost. Company sales representatives concentrate entirely on the company’s products; they are better trained to sell the company’s products, they are more aggressive because their future depends on the company’s success on the other hand, sales agency could comically sell more than a company sales force. The sales agency has more number of sales representatives and secondly, sales agency has better knowledge of the geographical area in which he is operating
Control criteria:- Channel evolution has to include control issues. Using a sales agency poses a control problem. A sale
agency is an independent business firm seeking to maximize its profits. The agents may concentrate on the customers who buy the most, not necessarily of the manufactures goods. Further, the agent might not master the technical details of the company’s product or handle its promotion materials effectively.
Adaptive Criteria:- Each channel involves some duration of commitment and loss of flexibility. A manufactures seeking a sales agency might have to offer a five year contact. During this period, other means of selling such as direct mail might become more effective, but the manufactures is not free to drop the sales agency. A channel required a long commitment needs to be greatly superior on economic or control grounds to be considered.

Importance of marketing intermediaries:-
many producers lack the financial resources to carry out direct marketing. Ex. Maruti udyog sells its cars through more than 600 dealer outlets; even maruti udyog would be hard pressed to raise the cash to buy out its dealers.
a) Direct marketing would require many producers to become middlemen for the complimentary products of other Producers in order to achieve mass distribution economies. Ex.maruti udyog will have to become middlemen for auto ancillary companies if it establish its own distribution network.
b) producers who can afford to establish there own channels can offer earbn a grater return by increasing their investment in their main business. If a company earns a 20 percent rate of return on manufacturing and foresees only a 10 percent return on retailing. It will not want to undertake its own retailing.
c) Marketing intermediaries through their own contacts, experience, specialization and scale of operations, offer the firm more than it can usually achieve on its own.

Marketing channel functions

a) information:- the collection and dissemination of persuasive
communications about potential and current .
customers, competitors and other actors and forces in
the marketing environment.
b) promotion:- the development and dissemination of persuasive
communication about the offer designed to attract
customers.
c) negotiation:- the attempt to reach find agreement on price and other
terms so that transfer of ownership or possession can be
affected
Ordering:- the backward communication of intentions to buy the marketing
channel members to the manufacturers.
financing:- the acquisition and allocation of funds required to finance
Inventories at different levels of the marketing channel.
Risk taking:- the assumptions if risks connected with carrying out the
channel work..
physical possession:- the successive storage and movement of the physical
products from raw materials to final customers.
Payment:- buyers paying their bills through banks and other financial
Institutions to the sellers.
Title:- the actual transfer of ownership from one organization or person to
Another.