Advertising
Advertising is defined as any paid from on non-personal presentation and promotion of ideas, goods or services by an identified sponsor.
Advertising could be through various media: magazine and newspaper space, radio and television; outdoor displays, direct mail, novelties, catalogs, directories and circulars. And advertising has many purposes, long term buildup of the organizations cooperate image. Long-term build up of a particular brand announcement of a special sale, advocacy of a particular cause and information dissemination about a sale/service of automobile, property etc.
In developing an advertising programmer, marketing managers must always start identifying the target market and buyer motives. The five major decisions in developing an advertising program, known as five Ms-
a) What are advertising objectives?
b) How much can be spent?
c) What media should be used
d) what message should be spent
e) How should the result be evaluated
Setting the advertising objectives:-
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. Read the rest of this entry »
Management of Working Capital
Working capital management is an important aspect of financial management. In business, money is required for fixed assets and working capital. Fixed assets include land and building, Plant and machinery, furniture and fitting etc. Fixed assets are acquired to be retained in the business for a long period and yield returns over the life of such assets. Working capital, on the other hand, is required for the efficient and effective use of fixed assets. The main objective of working capital management is to determine the optimum amount of working capital required.
Definition of Working Capital
There are two concepts of working capital:
1. Gross Working Capital Concept
2. Net Working Capital Concept
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 SALING
Wholesaling includes all activities involved in selling goods or services to those who buy for resale or business use.
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
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