Managing markets Essay

 

 

Introduction

Area of product planning, product line decision making and arriving at proper product strategy is an extremely exciting and interesting field. It is challenging and, if not done properly, can result in losses to the organization. On studying the external environment for the UK electronic market, the product life cycle concept is an extremely important one which, at times, is neglected by even well known companies. Family brand name for all products or give each product its own distinctive brand. Each choice has its advantages and disadvantages and there are enough cases of success and failure to justify your choice. Sometimes even the most difficult sounding brand names succeed.

The importance of the selling effort and the functions of the sales manager have been understood. Basically, the sales manager has to get the targeted sales, i.e., sales as decided by the marketing manager or the top level of the organization. He has to do this through the sales force at his disposal. He must therefore select very carefully. Once you have recruited somebody, it is not necessary that he would have the proper ability. Adequate training must therefore be provided so that he understands more about your company, your products and your policies as well as philosophy. Thereafter, the question of motivation becomes important. We have appreciated how financial incentives can be provided to the salesman. Finally, some extent of controlling the sales personnel is essential.

Dixon’s re-branded as Currys must try to find the best combination or optimum marketing mix for its particular situation at a particular time. The decisions, however, are not easily made. In many instances it is difficult to obtain information upon which to base a decision.. Furthermore, costs change, competition changes, and consumer tastes change, which make it necessary to vary the mix from time to time.

 

 

EXTERNAL ENVIRONMENT FOR THE UK ELECTRONICS SECTOR

Elements of marketing mix are arrived upon and implemented in the broad framework of a marketing plan

A typical marketing plan has the following components:

• Description of the current marketing situation, i.e., ‘where we are’ or situation analysis,

• Identification of problems and opportunities in the situation,

• Definition of objectives of the marketing plan, i.e., ‘where we want to be’,

• Designing the marketing strategy,

• Developing the marketing programme,

• Estimating the necessary appropriations, i.e. Budgeting, forecasting sales and estimating cost and profit contribution.

Marketing planning, like any other planning process is an iterative process and has to be done on a continuing basis. In other words, what is needed is constant monitoring, redefinition, adaptation, and re-evaluation of objectives and strategy, its implementation and control in an effort to obtain maximum payoff from ever-changing market situation.

The points will basically relate to the market, product, competition, distribution and macro-environment. Each one of these is analyzed to give a more detailed understanding of the type of data that will be generated.

Market Situation: data on the target market served like the size and growth of the market, and customer needs, perceptions and buying behavior trends.

Product Situation: data on sales, prices, contribution margins and net profits for each major product.

Competitive Situation: data on major competitors in respect of their size, goals, market share, product quality, marketing strategies and other relevant characteristics those are likely to help in understanding and predicting their behavior.

Distribution Situation: data on the number and value of the units sold in each distribution channel together with the changes that are taking place in the power and importance of each channel and also the changes in the trade relations mix like prices trade terms, etc. required to motivate channel members.

Macro-environment Situation: data on changing trends in respect of political/legal, technological, demographic, economic and socio-cultural factors having a bearing on company’s products.

Identification of Problems and Opportunities

Here the marketer has to identify the strengths and weaknesses as well as the opportunities and threat which exist in the environment in relation to the company’s products. The data required to be collected in respect of the current marketing situation should help in identifying major strengths, weaknesses, opportunities and threats.

Defining Objectives

The resulting data generated should help the marketer in defining the main issues that will need to be addressed to in the plan.

The identification of these issues will in turn help in arriving at the decisions about the objectives. These objectives will guide the subsequent search for strategies and action programmes.

These objectives may be in terms of (a) financial objectives (long-run rate of return on investment; profits and cash-flow during the current year) and (b) Marketing objectives (sales revenue, sales volume, market share, average realized price; consumer awareness, distribution coverage, etc.) to achieve the financial objectives.

 

Designing the Marketing Strategy

Marketing strategy means the game plan’ that the marketer will use in attaining the objectives of the business. In other words, it represents the broad marketing thrusts that will be used. The three objectives are:

Increasing the average price of all units
Increasing the overall sales volume
Selling more of the higher price units.
Again each of the three objectives in turn could be achieved in a number of ways.

Take for instance the second objective, viz., the overall sales volume. This objective can be achieved by:

Increase in market growth
Increase in market share.
Increased market growth can in turn be brought about in a number of like
Convincing people to consume more of the company’s product
By convincing people to replace the old models by company’s new model.
By going down the path of each objective, the marketer can identify the major strategy options facing the company’s product. And the formulation of marketing strategy calls for making basic choices among these strategy options.

Developing the Marketing Programme

After designing the ‘game plan’ or the broad marketing results, the marketer will try to develop or elaborate each element of the marketing strategy. The questions like the following will need to be answered in developing each element.

• What will be done?

• When will it be done?

• Who will do it?

• How much will it cost?

Marketing strategy is composed of a set of sub-strategies concerned with competition, market positioning or market niche and target markets, pricing, promotion and distribution. How these sub-strategies are related defines the structure of the strategy. Marketing strategy is the basic approach that the business unit will use to achieve its objectives and it consists of broad decisions on target markets, market positioning and mix, and marketing expenditure levels.

 

A marketer has a number of options available to him when he is developing a suitable marketing strategy.

The drawing up of a tentative marketing mix is part of any new product development programme. First let us take the element of promotion. It is a key consideration when the want is likely to be latent or passive for the majority of the members of the target market. In general terms, the motivation to buy is based preferably on some core advantage and the benefits that might be stressed in the advertising copy or sales appeal.

Today, a number of well established companies are trying to diversify into both existing as well as new areas. New companies are also being started in new and existing fields.

Take price as a strategic element in new product development. Price can be important not just in terms of cost to the consumer but as contributing to the image of the product. Pricing needs to be considered in relation to both the buying inducement and rest of the offering or mix. Although the introductory price is of immediate interest in the context of new product development, management needs to plan an overall pricing strategy that might be adopted as the market grows.

Finally, about role of distribution strategy in new product development. If distribution, i.e., availability in the target market cannot be assured, all else fails. The role which distribution channels are expected to play must be investigated at the earliest stage possible.

INTERNAL AUDIT – COMET

The focus in the case of products is on the shape of the sales curve. The assumption is that sales are lo during the introductory stage, rapidly rising during the growth stage, reach the peak during the maturity stage and start declining during the final stage.

Different products will take different spans of time to pass through the cycle of introduction, growth maturity and decline. Many classes of product like light n, seem to remain indefinitely at the maturity stage, while some products quickly come and go. Further, just as countries can be at different stages in economic growth, a product can also be at the introductory stage in one country, and in maturity stage in another.

Role of Advertising in the Marketing Mix

There are only a few firms which directly compete with each other in the same target market. Such a situation is referred as oligopolistic situation. Many firms prefer to increase their share by increasing demand through advertising rather than by reducing prices. The reason is that building up an image through advertising can be more difficult to match than a price cut. The assumption behind this preferred approach, of course, is that the firm can achieve a competitive edge in advertising and that it does not possess such a large cost advantage over competition so as to make price cutting an attractive pre-empting strategy.

Role of Price in the Marketing Mix

Price can be the major element in the marketing mix. Generally however, pricing decisions have to be carefully coordinated with decisions on product, promotion and distribution. The framework for such coordination is the target market strategy, since the chosen target market gives overall direction in determining the marketing mix.

The objective of a marketer is to combine the various elements of the marketing mix viz., Product, Promotion and Distribution in such a way that he will achieve the necessary volume of sales at a cost that will permit him to make a desired profit. The way these elements are  to be combined will basically depend on the target market to be served. The needs and wants of the target consumers have to be studied and interpreted and then a unique blend of various elements of the marketing mix has to be designed to reach a specific group of consumers, The planning of the marketing mix, however, is a part of the overall marketing planning. The elements of a marketing plan are current marketing situation analysis. Problems and opportunities analysis, objectives, marketing, strategy and programme. Marketing budgets and sales volume, cost/profit estimate. The marketing decisions form the basis of the overall marketing strategy.

The other decision areas of marketing relate to target markets, market positioning and marketing expenditure levels. The interdependence of these decision areas defines the structure of the marketing strategy and determines whether or not they form an effective plan of action.

Nevertheless, decisions are made with respect to the marketing changes. New products are developed and modifications are made in existing products. Packages are redesigned from time to time. Price and channel policies are established. Decisions are made with respect to the allocation of marketing budget over different elements of the promotional sectors like

advertising, personal selling and sales promotion.

Self-image is one aspect of personality that may relate to buyer behavior. Some marketers use this approach to endow their product with brand-image that corresponds to self-image of the consumer. In fact, the assumption that buyers seek a match between self-image and brand image is implicit when advertising appeals to certain types of personality.

Some other important personality variables that may be used in psychographic segmentation are: impulsiveness, sociability, achievement orientation, masculinity, self-confidence, conservativeness, alertness to change, thriftiness, and sentimentalism.

Molecular Modelling Of Long Term Approach

 

Segmentation in Industrial Markets

The bases for segmentation will differ between industrial and consumer markets. However, they have much in common i.e., industrial markets can be segmented with many of the same variables used in consumer market segmentation.

Segmenting markets on the basis of end-use application is essentially benefit segmentation; a demographic basis is geographical location; while a behavioral basis is the way the company buys. As knowledge of industrial customer’s advances, segmentation can take account of the buying criteria, technical, economic. etc., as applied to the selection of suppliers.

Further, to ask some consumer(s) about their ideal points or preferences with regard to the purchase of a particular product may create semantic problems about the meaning of ideal point. The meaning can vary from ‘prefer just now’ to ‘always prefer’.

Market is defined to mean the market for a particular product which in effect means the functions served by that product. Products catering to the same function are in competition and consequently are in the same market,. The two concepts are related to each other in the sense that the concept of a market as a set and a segment as a subset is the basis on which the process of segmentation is carried out. In defining a segment, however, we think less in terms of functions and more in terms of benefits sought and by whom. The output of a segmentation analysis is therefore:

A profile of customer target group focusing on those details that will best help develop product, promotional, pricing and distribution strategies:

The set of benefits sought so as to build our offering to match the configuration of benefits sought and then select benefits in offering that will constitute a critical advantage to act as the buying inducement.

Sales Department with some marketing function: As the firm expanded its operations it found that merely selling what the factory produced was not enough to sustain the growth momentum. A firm aspiring for growth and leadership must match its production to customer needs. Hence the need for some marketing research and new product development. At this stage, the selling department began to take on some semblance of a marketing department,

and apart from marketing research and new product development, it also undertook some promotional and advertising activity.

Separate marketing department: This is the stage when the need for the complete range of marketing functions is felt and a full-fledged marketing department is established. The sales activity still continues to dominate but as compared to other activities, its importance is reduced. Sales and marketing may continue to be organized as two separate departments. Integrated marketing department: This is the stage where the sales and marketing are integrated and organized into a single department. The department is headed by a marketing director with the sales manager reporting to him. The other activities such as marketing research, promotion and advertising, marketing information, customer service and new product development are also organized in this department under the marketing director.  Such an organization obviously needs to be flexible to accommodate customers’ changing tastes and habits and accordingly modify its products or develop new products.

CHANGES IN CONSUMER BEHAVIOUR OF CUSTOMERS BUYING THE GOODS

Statement of objective and Goals of the firm: The objectives may pertain to desired market share; desired sales profit levels, desired position in the industry and/or market, desired customer image. Depending upon the stated objectives, a suitable organization d have to be designed which would facilitate achievement of the objectives. For a firm which strives to have the largest market share would need a different type of organization than one whose objective is to have the highest quality products.

Generally speaking, firms with highly diversified range of products need separate marketing organizations to effectively market each of them

Areas of Operation

The number of markets that a firm caters to and the location of these markets is another factor which influences the decision regarding the type of marketing organization that a firm should adopt. If there are many markets which are located at great distance from one another, a firm may have no choice but to have separate marketing organizations for different geographical markets. The greater the difference in individual markets in terms f customer tastes and habits, the greater is the need for a separate, flexible, autonomous marketing organization at the local market level.

Product Management Organization

The functional organization works well when there is a single product. But when there are

multiple products and/or the products are very different from one another, the functional

marketing organization is no longer effective. The functional specialists cannot possibly

coordinate all aspects of the marketing mix of each of the diverse products, with the result

that some products are neglected and eventually become money losers.

In today’s competitive world, a manager’s power is based on information or the access to the information he has. This is especially true in case of product manager who is a man placed in a conceptual and informational hub of the organization. To maintain competitive position and profit of his products, with his performance starkly exposed to higher management, he must strive to be the best informed man about any aspect substantially affecting their future. He must arrange and nurture a number of information interfaces.

Firstly, given the increased complexity of the marketing mix and diversity of products and brand, the product manager offers a way of coping with, these complex marketing inputs in a balanced way. It ensures that all products and brands get proper attention and no product is allowed to languish. Secondly, it introduces flexibility into the system as the product manager can react quickly to a changed market condition since he has the overall responsibility for managing the product’s profitability and does not have to waste time over long consultations. Quick reaction and timely action sometimes prove to be the winning factors in a fast changing market situation.

SCOPE OF MARKETING RESEARCH

Marketing is concerned with identifying and fulfilling customer needs and wants. Thus, MR should precede marketing. The unfulfilled wants should first be identified and translated into technically and economically feasible product ideas, which then should be marketed to the customers. But mere identification of customer wants is not enough. Marketing requires continuous effort to improve the existing product, increase sales and beat the competition. . Besides this information, it is also important for you to know the process by which a prospective customer arrives at a decision to buy your product..

Marketing research helps in discovering what types of distribution channels and retail outlets are most profitable for the product. On the basis of comparative information for different channels and different types of outlets one can choose the combination most suitable for the product.

Most companies provide advertising support for their products. In some cases the amount spent on advertising may be small, while in others it may run into millions. Research also provides information on the size and type of audiences for different advertising media channels.  Advertising research is also useful in determining customer perceptions about the image of specific branches and companies.

Marketing Research as a tool for decision-making is gaining wide acceptance. Marketing decisions involve variables which are often external to the firm, dynamic in nature, uncontrollable by the firm and interact with each other in a complex manner. Because of their dynamic and uncontrollable nature the uncertainty associated with them is very high, which in turn leads to the situation that in most marketing decisions the associated risk factor is also very high. The marketing manager is always on the lookout for ways and means to reduce this risk. One way that the risk can be reduced is through the use of MR which by providing information reduces uncertainty and converts the unknown risk factor into a known calculated risk.

IMPORTANCE OF CONSUMER BEHAVIOUR FOR MARKETERS

Consumer behavior is helpful in understanding the purchase behavior and preferences of different consumers. As consumers, we differ in terms of our sex, age, education, occupation, income, family set-up, religion, nationality and social status. Because of these different background factors we have different needs and we only buy those products and services which we think will satisfy our needs. In marketing terminology, specific types or group of consumers buying different products represent different market segments.

 

A MODEL OF CONSUMER BEHAVIOUR

A consumer’s decision to purchase a particular product or service is the result of complex interplay of a number of variables. The starting point for the decision process is provided by the company’s marketing stimuli in the shape of product, promotion, price and distribution strategy.

The marketing stimuli are received by the potential consumer along with the other stimuli already existing in the environment. These stimuli may be social, economic, cultural, technological and political in nature. At the point of receiving the marketing stimuli, the consumer already has a certain mental, emotional and psychological frame of mind developed over the years by his cultural, religious, social, family and psychological background. However, most of these factors (or buyer characteristics) exert their influence at the sub-conscious level so that the consumer is not really aware of their existence or working.

When a stimulus is received, the consumer goes through an elaborate process of decision-making in terms of receiving, retaining, interpreting and evaluating the stimuli according to his own framework. Depending on the nature of product being purchased, this process may work at the sub-conscious level or it may be overt, the time taken to make the decision may vary from a few seconds to a few days or months. The buyer characteristics and buyer decision-making process in conjunction with marketing stimuli lead to a decision to either buy the product or not to buy. The income which a person earns is an extremely important influence on his consumption behavior.

Consumer behavior is the study of why, how, what, when, where, and how often do consumers buy and consume different products and services.

Knowledge of consumer behavior is helpful to the marketer in understanding the needs of his different consumer segments and developing appropriate marketing strategies for each. It is also useful for the marketer in developing an understanding of how consumers respond to the various marketing stimuli, which he provides in terms of the product, price, promotion and place. If the marketer can correctly identify those stimuli that evoke a positive response in the consumer he can very easily design effective marketing strategies using these stimuli.

The study of consumer behavior also provides an insight into how consumers arrive at the purchase decision and the variable which influences their decision once the influencing variables have been identified; the marketer can manipulate them so as to induce in his consumers a positive purchase decision.

PROCESS OF DECISION-MAKING

The most basic and important requirement for the marketer is to understand how consumers make choices.

Differentiation: When the consumer perceives that the various alternatives which are available are very different from one another in terms of their features and benefits offered, he is likely to spend more time in gathering information about and evaluating these different features. On the other hand, in case of products which are not very different from one another either in terms of their features or benefits offered, the consumer is bound to perceive them as being almost the same and buy the first available product/brand which satisfies his minimum expectation. He will not like to spend much time in evaluating the various alternatives.

The marketer must know who are his customers and how do they arrive at the decision to purchase or not purchase a product, so that he can design an effective marketing strategy. Thus, marketers are particularly interested in the consumer decision-making process.

A decision refers to the selection of a particular alternative out of the several available alternatives. The process by which consumers arrive at a decision can be explained with the help of input, process and output. Input refers to the marketing and non-marketing stimuli received from the socio-cultural environment, the decision process variables are influenced by the individual customer’s own psychological characteristics which affect his need recognition, pre-purchase information search and evaluation of alternatives. The output of the model comprises the actual purchase and its post purchase behavior. The marketer’s task is to study the buyer’s behavior at each stage and understand what influences are operating.

DIVERSIFICATION

As soon as a manufacturer offers more than one product, it is described as product diversification. Generally, diversification is categorized into two types:

1) Related Diversification and

2) Unrelated Diversification.

Where the new products introduced in the product mix are similar to the existing product, diversification is described as ‘related’. When a company accepts new products which are very different from the existing products, the diversification is said to be ‘unrelated’.

Related Diversification

Related diversification is the commonest form of diversification, inexpensive and easier.

Unrelated Diversification

When the new products offered or introduced are quite different from the existing ones, the company is said to have adopted the strategy of unrelated diversification.

Backward Integration is a term applied where a company diversifies and manufactures products which it previously purchased, that is, industrial products. For example, a company may start manufacturing what it uses as raw materials for its final products. Previously this raw material was purchased from outside. Now the company has decided to be independent of outsiders and so indulges in backward integration.

Every product or service must offer certain benefit or benefits to the prospective or likely customer either to satisfy some need or solve his problems. Different types of products require different marketing strategies. Personal selling is an important input in marketing of industrial products, whereas promotion and distribution are of critical importance in case of consumer products. Related Diversification involves going in for similar products. These products generally require the use of the same production, selling and distribution facilities. However, for continued growth of an organization, it may be necessary to undertake unrelated diversification.

DETERMINANTS OF PRICING

There are some goods which are purchased mainly for their ‘snob appeal’. When prices of such goods rise, their snob appeal increases and they are purchased in larger quantities. On the other hand, as the price of such goods falls, their snob appeal and, therefore, their demand falls. In the speculative market, a rise in prices is frequently followed by larger purchases and a fall in prices by smaller purchases.

CONSUMER PSYCHOLOGY AND PRICING

Sensitivity to price change will vary from consumer to consumer. In a particular situation, the behavior of one individual may not be the same as that of the other from the point of view of the consumer, prices are quantitative and precise whereas product quality, product image, customer service, promotion and similar factors are qualitative and ambiguous.

Price constitutes a barrier to demand when it is too low just as much as when it is too high. Above a particular price, the article is regarded as too expensive and, below another price, as constituting a risk of not giving adequate value. If the price is too low, consumers will tend to think that a product is of inferior quality.

Pricing is an important element of the marketing mix. Pricing is affected not only by the cost of manufacturing the product, but also by (i) the company’s objectives in relation to market share and sales; (ii) the nature and intensity of competition; (iii) stage of the product life-cycle at which the product is currently positioned; (iv) nature of product whether as consumer or industrial product and if the former whether it is a luxury or necessity.

OUTLINE MARKETING STRATEGY FOR THE ELECTRONICS RETAILER

Mutually satisfying exchange being the ultimate goal of marketing, the role of promotion, therefore, is to encourage such an exchange through linking communications with the product adoption process of the buyer. Motivating the adoption of the promoted product as well as effecting the desired change in the consumer behavior is the goals of the promotion function. The attainment of these goals presupposes that product purchase process be understood by the marketers before marketing communications are designed.

Communication deals with sharing of information. This is a key function of marketing. The marketing techniques used to communicate with existing and potential customers are called promotion. The four major promotion methods available to a marketer are:

Advertising, personal selling, sales promotion and publicity. Packaging, public relation and other elements of the marketing mix supplement the promotion efforts of the marketer in their own way.

Advertising

Advertising constitutes one of the four components of a firm’s promotion mix which in turn forms an integral element of the firm’s marketing mix. In order to implement the marketing concept and to achieve the objective of integration among different elements of marketing mix, it is necessary that the advertising function be systematically planned.

MEASURING ADVERTISING EFFECTIVENESS

Advertising is an impersonal mass selling and communication method. It makes use of various types of media to reach the target public in a short-time. Being persuasive in nature, advertising broadly aims at gaining exposure, creating awareness, changing attitudes of target customers in favor of sponsor’s products and services, and also at effecting sales and improving corporate image. Besides, it can also act as a good offensive/defensive tool in managing competition.

Management of effective advertising requires that the process e initiated by setting of measurable and realistic goals. Matching with a firm’s advertising needs’ advertising budget be determined, message formulated, copy developed, and media selected and scheduled. Identification and knowledge of the economic, demographic, cultural and psychological characteristics of the target customers should trigger the process of advertising planning. This should be followed by selection of appropriate appeals, proper illustrations and unique copy themes in the language which the audience understands and should be transmitted to them through such media vehicles which have a meaningful reach and desired credibility.

PLANNING SALES PROMOTION

With growing competition at the marketplace and the need to realize full benefits of this unique method of promotion it is required that the perfunctory approach used in its management is stopped forthwith and the sales promotion function is managed professionally. Systematic planning of this function should initiate the managerial process.

Effectiveness of Sales promotions is usually measured in references to sales achieved, cost effectiveness, redemption rate of coupons and trading stamps, turnover of special packs or special liquidators, number of entries received to the contest, etc. To do a good job special focus must be laid on measuring the incremental sales arising out of sales promotions

The thumb rule is that not more than 40 per cent of the sales budget should be spent in the first six months of the budget year. The underlying logic is that since a sales forecast is based on assumption, sales efforts should be spent in conjunction with the culmination of reality as assumed.

The dynamic nature of the market, therefore, requires that the managers must feel the pulse of the market particularly with regard to customer behavior, competitor’s plans and reactions as well as the way the market environment unfolds itself. In case the market reality is markedly different from the forecasted one a thorough probe and necessary modification may be required in the deployment of sales inputs, budget and even in the profit plan.

In a nutshell, sales forecasting should be treated as a dynamic activity particularly in relation to the sales budget and profit plan of the firm, if forecasting is not practised as a dynamic activity then there may be little to regulate the continued use of sales budget and erosion of profitability. It is important, therefore, to use simple yet comprehensive sales information formats to monitor the market and conduct sales analysis at a regular periodicity.

Evaluating the sales potential obtaining in the market place and preparing a sales forecast is an important function of the sales and marketing managers. While different approaches and methods can be used for preparing the sales forecast, a combined approach using together the quantitative and executive judgment methods help in putting realism into the sales forecast. The finalized sales forecast will be of greater utility if it is related to the sales budget and profit plan of the firm. Close monitoring of actual sales against the sales forecast and a thorough probe in case of substantial deviation can forewarn the unregulated expending of the sales budget.

IMPORTANCE OF CHANNELS OF DISTRIBUTION

Channel decision refers to the managerial decisions on the selection of best routes or paths for moving goods from the producer to the consumer. Channels of distribution are concerned not only with the physical movement of goods but also with their promotion, selling and marketing control.

The term channels of distribution are used to refer to the various intermediaries who help in moving the product from the producer to the consumer. There are a variety of middlemen and merchants who act as intermediaries between the producers and consumers.

Channels of distribution are the most powerful element among marketing mix elements. Many products which were intrinsically sound died in their infancy because they never found the right road to the market. On the other hand, by developing a sound distribution network and launching aggressive advertisement campaigns, a company can carve out a niche for itself.

Distribution is the all-important link between a manufacturer and his customer. The concern is for designing a distribution strategy to facilitate the smooth physical flow of products from the manufacturer to the place from where the customers can buy them.

Channels of distribution refer to the alternative paths through which the goods can be routed. Direct selling and indirect selling through intermediaries such as wholesalers and retailers are the two alternative channels of distribution to choose from. The final choice will depend on the type of product which is dealt with, number and location of customers and their buying habits and the costs involved. The manufacturer should also consider the specific advantages of each type of intermediary before making the decision.

To ensure quick, smooth and shortest possible route for the physical movement of goods, the manufacturer has also to decide the location of manufacturing facilities, warehouses, and the type of transportation to be used. Proper inventory management is also important so that there are always goods when there is the demand for them.

We have realized that we are on a very important aspect of managing the human resource. People are difficult to handle and yet, if correct environment is provided they will be able to manage and motivate themselves. It is therefore essential to provide a proper system for motivation rather than have a detailed controlling procedure.

 

 

 

 

 

 

 

 

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