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Consequences of Group Cohesiveness

Consequences of Group Cohesiveness More participation, more conformity, high productivity, more success, more influence, more communication and more personal satisfaction are some of the consequences of group cohesiveness. These positive outcomes of group cohesiveness are explained in more detail below. More Participation: Because group cohesiveness involves close interpersonal relationship, the members consider the group as … Read more

Types of Groups (Formal and Informal)

Types of Groups From an organizational point of view, there are basically two types of groups. These are formal groups and informal groups. Formal Groups A group is formal when it is purposely designed to accomplish an organizational objective or task. It is created via formal authority for some defined purpose. A formal group can … Read more

Types of Communication in Organization

Types of Communication in Organization Communication is a very important part of any organization. It takes place among business entities, within markets, various groups of employees, buyers and sellers, service providers and clients, salesperson and prospective buyers, and within the organization and with the press. Communication can be Internal, External, Upward, Downward, Formal, Informal, Lateral, … Read more

Management by Objectives (MBO)

Management by Objectives (MBO) The ideas behind management by objectives (MBO) were advocated and popularized by Peter Drucker, who stressed that business performance requires that each job be directed towards the objective of the whole business. Even though it is comparatively a new area, a lot of attention has been paid to it, notably by … Read more

How To Analyze Your Competitor (Competitor Analysis)

Competitor Analysis Competition refers to rivalry among various firms operating in a particular market that satisfy the same customer needs. The industry structure affects long run profitability. Therefore, competitors should be understood and monitored. Their actions can spoil an otherwise attractive industry, their weaknesses can be a target for exploitation and their response to a … Read more

Factors Influencing Pricing Decisions

Factors Influencing Pricing Decisions Price-quality Relationship Customers use price as an indicator of quality particularly for products where objective measurement of quality is not possible, such as drinks and perfumes. Price strongly influences quality perceptions of such products. If a product is priced higher, the instinctive judgement of the customer is that the quality of … Read more

Porter’s Five Forces Model of Competitive Industry Structure

Porter’s Five Forces Model of Competitive Industry Structure An industry is a group of firms that market product which are close substitutes of each other. Some industries are more profitable than others. But this difference cannot be totally explained by fact that one industry provides better customer satisfaction than others. There are other determinants of … Read more

Different Types of Markets

What is a Market – Definition and Different Types of Markets An exchange takes place in a market. A market comprises a group of buyers and sellers, who can interact with each other to buy and sell goods and services. They can interact with each other with or without physical contact. The transaction can be … Read more

External Factors Affecting Business Environment

External Factors Affecting Business Environment Economic Forces The economic environment can have a major impact on businesses by affecting patterns of demand and supply. Companies need to keep a track of relevant economic indicators and monitor them over time. Income Income indicates a customer’s ability to spend on the products sold by the marketer. The … Read more

Types of Distribution Channels

Types of Distribution Channels Industrial channels tend to be shorter than consumer channels because of small number of ultimate customers, the greater geographical concentration of industrial customers, and greater complexity of the product which require close manufacturer-customer liaison. Consumer channels are normally longer because a large number of geographically dispersed customers have to be reached. … Read more

Primary Responsibilities of a Salesperson

Sales Responsibilities The primary responsibility of a salesperson is to increase sales. For order getters this will involve identification of customers, presentation, demonstration, handling objections and closing the sale. In order to generate sales, six enabling functions should be carried out. Prospecting Prospecting is searching for and calling upon potential customers. Most sales person rely … Read more

Understanding Marketing and Core Concepts of Marketing

What is Marketing Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its shareholders.  It is also the process of finding, creating and retaining profitable customers. The aim of marketing is to know and … Read more

4P’s of Marketing Mix

Marketing Mix The marketing mix is a particular combination of the product, its price, the methods to promote it, and the ways to make the product available to the customer. Based on its understanding of customers, a company develops its marketing mix of product, price, place, and promotion. The elements of the marketing mix are … Read more

Major Sales Promotion Techniques

Major Sales Promotion Techniques Companies use various sales promotion techniques to promote their products. The intention is to increase sales, make a large customer base, encourage trial, encourage repeat purchases to stimulate consumers’ purchase. The types of sales promotion techniques used by the company depend upon the sales promotion objectives set by the company. Consumer … Read more