Tag: Characteristics

  • Departmental Stores: Meaning, Definition, Features, and Characteristics

    Departmental Stores: Meaning, Definition, Features, and Characteristics

    What does mean Departmental Stores? A departmental store is a large retail trading organization. It has several departments, which are classified and organized accordingly. Departments make as per different types of goods to sell. A departmental store may be described as a large retail organization having the number of departments in the same building under centralized control. Each department deals in a particular type of trade and is a complete unit in it. So, what is the topic we are going to discuss; Departmental Stores: Meaning, Definition, Features, and Characteristics.

    Here are explain What is Departmental Stores? with Meaning, Definition, Features, and their Characteristics

    All departments are run under the same ownership, management, and control. Each department is an independent unit as far as a sale of any specific product and its varieties are concerned. The main aim of every departmental store is to provide and fulfill all requirements of their customers in one place along with comforts and facilities which a small scale retailer cannot provide. Here all goods which are available under one roof sell on a cash basis.

    For example, individual departments establish for selling packed food goods, groceries, garments, stationery, cutlery, cosmetics, medicines, computes, sports, furniture, etc., so that consumers can purchase all basic household requirements under one roof. It provides them maximum shopping convenience and therefore, also called ‘Universal Providers‘ or ‘One spot shopping’. The concept of a departmental store first originated in France.

    Definition of Departmental Stores:

    Some of the important definitions of a departmental store are enumerated as under:

    E.V. Cundiff and K.R. Still,

    “A departmental store is a large retailing business unit which handles a wide variety of shopping and specialty goods and is organized into the separate department for purposes of promotion, service, and control.”

    Clark defines it as,

    “That type of retail institution which handles a wide variety of merchandise under one roof with the merchandise grouped into well-defined departments which are centrally controlled.” Thus, a departmental store is an organization of several retail stores carried on in one building and under United controlled management.

    In the words of Killough,

    “A departmental store is a retailing institution that deals in many lines of merchandise, including women’s wear and house furnishing, each line being separated or departmentalized from the other.”

    From the above-mentioned definitions, it is clear that a departmental store offers the widest possible range of goods and services in one place. It aims at providing convenience in shopping and can be turned like a “universal provider”. Also, the basic objective of a departmental store is to provide a large variety of merchandise ‘from a pin to an airplane’ in one place. It also aims at providing quality goods and services to the customers and acts as a universal supplier.

    Origin:

    The departmental stores originated in the European countries during the 19th century. The first departmental store known as BON MARCHE was established in France in the year 1852. Two more departmental stores viz; the LOUVRE and the PRINTEMPS were established in 1855 and 1856 respectively. Gradually the departmental stores started getting immense popularity. In England, departmental stores came into existence in 1840 and the U.S.A. in the middle of the nineteenth century.

    Features of Departmental Stores:

    Following are the main features or characteristics of a Departmental Stores:

    1] The store is located in the center of a city:

    The departmental store usually locates in the central area of a large city. Location and premises are the two most important aspects of it. Also, they generally situate at that place where a maximum number of people come for shopping.

    2] Offers a wide variety of goods:

    A departmental store not only offers a wide variety of goods and but also provides a huge range of designs, colors, and styles that suit the individual demands of consumers.

    3] Shopping under one roof:

    The main idea behind a departmental store is to supply all basic requirements under one roof. It acts as a supplier of a large variety of quality goods and services. Thus, the departmental store provides maximum shopping convenience to its customers.

    4] They Offer quality goods and services:

    The motto of every departmental store is to provide high-quality goods and render professional services to its customers. It always keeps a huge stock of fresh goods which highlight the latest fashions and trends followed by different manufacturers.

    5] They have single management:

    Various sections of the departmental store operate independently. However, they all are under the direct control of single management. Buying, supervision, accounting, advertising, and external communications are handled directly by the central management of a departmental store.

    6] Always attracts customers:

    Departmental stores have attractive interior decoration and window displays. Also, they spend heavily on sales promotion. This is done through advertising, discounts, special seasonal offers, gift schemes, festival offers, etc.

    7] Fulfill the needs of most families:

    The departmental store mainly satisfies the needs of the rich and a higher middle-class group of society. More attention gives quality, choice, convenience, and service rendered to the customer.

    8] Renders good customer service:

    Departmental stores offer efficient customer services such as inspection of goods, actual demonstration of goods, convenient packages, provision for refreshment, reading rooms, home delivery, parking facility, etc.

    9] Operates by appointing experts:

    The departmental store conducts its business on a very large scale and generates good profit revenues. It can easily afford to appoint experts for purchasing, advertising, recruitment, supervision, etc., and keeps operating smoothly.

    10] Sells goods only on a cash basis:

    A departmental store sells goods only on a cash basis. Generally, credit facilities do not offer to customers to avoid the risk of bad debts.

    11] They have a high operational cost:

    Departmental stores have to incur high expenses by way of rent, advertising, provisions of conveniences and facilities to its customers. Thus, the costs of operation are high.

    12] Departmental Store diffuses the risk of loss:

    The losses made by one department of a departmental store can compensate by profits earned by other departments.

    Characteristics of Departmental Stores:

    The following Characteristics below are:

    • They deal with a different variety of products; say from needle to a car which can purchase in one place.
    • Various departments are operating under one roof and each department specializes in a particular type of trade.
    • All departments operate under centralized control and management.
    • Their operational expenses are very high.
    • They undertake extensive advertising to attract more customers.
    • They usually situated in the most crowded place and at an important place in the city.
    • A large amount of finance needs to start a departmental store.
    • These best suite for customers.
    • The departmental store offers excellent services to its customers viz.; credit facilities, free home delivery and replacement of disapproved goods, etc.

    A department store is a retail establishment offering a wide range of consumer goods in different product categories known as “departments”. In modern major cities, the department store made a dramatic appearance in the middle of the 19th century, and permanently reshaped shopping habits, and the definition of service and luxury.

    Today, departments often include the following: clothing, furniture, home appliances, toys, cosmetics, houseware, gardening, toiletries, sporting goods, do it yourself, paint, and hardware. Additionally, other lines of products such as food, books, jewelry, electronics, stationery, photographic equipment, baby products, and products for pets sometimes include. Also, Customers generally check out near the front of the store, although some stores include sales counters within each department. Some stores are one of many within a larger retail chain, while others are independent retailers.

    Departmental Stores Meaning Definition Features and Characteristics
    Departmental Stores: Meaning, Definition, Features, and Characteristics. Image credit from #Pixabay.

    Departmental Stores in India:

    The departmental stores have not become much popular in India. There are only a few important departmental stores in the country even today. ‘White Hair in Bombay and ‘Military Departmental Store’ are examples of such departmental stores in India. The various disadvantages of departmental stores have been responsible for their less popular in India. As well as, they are best suited for the advanced countries where there is no dearth of capital and rich persons.

    Departmental stores require a large amount of initial capital investment for their establishment and there is a dearth of capital in India. Moreover, many qualified and efficient persons required for the establishment and running of departmental stores are not available in India. The prices charged by departmental stores are also comparatively higher. Also, the number of rich persons who can afford to go to such departmental stores is very low in India. Hence, departmental stores have not become very popular in India.

  • What do you understand by Entrepreneurial Marketing?

    What do you understand by Entrepreneurial Marketing?

    Entrepreneurial marketing is less about a single marketing strategy and more about a marketing spirit that differentiates itself from traditional marketing practices. Entrepreneurial Marketing is a combination of two discrete management areas. Existing as distinct disciplines, entrepreneurship and marketing have emerged to capture the several facets of marketing that are often not explained by existing traditional marketing theories and concepts. It eschews many of the fundamental principles of marketing because they are typically designed for large, well-established firms. Entrepreneurial marketing utilizes a toolkit of new and unorthodox marketing practices to help emerging firms gain a foothold in crowded markets. So, what is the question going to discuss; What do you understand by Entrepreneurial Marketing? with Characteristics.

    Here are explain; What is Entrepreneurial Marketing? with Characteristics.

    Definitions of both marketing and entrepreneurship differ considerably and we cannot expect that one single definition of entrepreneurial marketing will cover everything. A contemporary definition that meets the present scope in which entrepreneurial marketing defines as; “The proactive identification and exploitation of opportunities for acquiring and retaining profitable customers through innovative approaches to risk management, resource leveraging and value creation.”

    Recently, entrepreneurial marketing has gained popularity in marketing and entrepreneurship topics. The success of business activities pursuing non-traditional marketing approaches can attribute to entrepreneurial marketing practices. Despite a large number of marketing models and concepts, there are remarkable successes that distract from them and label them as “entrepreneurs”. In many countries, there has been a need for economic development which has increased the need for entrepreneurship in society.

    SMEs;

    Small and medium-sized enterprise areas (SMEs) become more important when large companies follow economies on the scale of reducing and reducing employees. Recently, entrepreneurship and marketing had existed in the form of two independent, intellectual domains. In the last few years, due to the increasing number of entrepreneurial research, many conclusions have been taken to improve marketing knowledge. Normally, the purpose of marketing is to always understand processes and practices within large companies.

    However, in the context of entrepreneurial behavior and growth in small-medium enterprises around the world; there has been significant importance in the marketing aspects of small and medium-sized enterprises and entrepreneurship. Entrepreneurial behavior has traditionally been rooted in small to medium-sized enterprises; but, entrepreneurial marketing also has a definite impact on large companies. Today, many companies work in a very disturbing environment where the risks increase and decrease forecast and project deficits.

    In this climate of sudden change, organizational limitations have become very unclear. In such a business environment, business managers must forget traditional management policies and change them with new thinking and new behavior that will not only involve changes but also make necessary changes in the market. Entrepreneurship can be a good vehicle and entrepreneurial marketing behavior can be of equal importance for many big companies and SMEs.

    Characteristics of Entrepreneurial Marketing:

    To overcome their problems, entrepreneurial firms need to have a very proactive appr­oach to marketing; which reflect by the following Characteristics of Entrepreneurial Marketing below are:

    • Proactive Orientation: Entrepreneurial firms are continually searching for new ways to achieve competitive advantage through changes in established methods in marketing or production.
    • Innovativeness: Innovative firms have the ability to maintain a flow of new ideas that can translate into new products or services.
    • Focus on the Customer: An entrepreneurial firm focuse on the need for creative approaches to acquire, retain, and develop customers. Paying attention to the consumer equips the entrepreneurial firm with a knowledge base of customer’s requirements.
    • Utilizing an Opportunity: The recognition and pursuit of opportunity is a core dimension of entrepreneurial marketing. Entrepreneurship has been termed as the process of discovery, evaluation, and exploitation of opportunities. Entrepreneurial opportunities are situations in which new goods, services, raw materials, and organizing methods can introduce through the formation of new means, ends, or means-ends relationships.
    • Risk Management: Entrepreneurship associate with calculate risk-taking. This implies an effort to identify the risk factors and subsequent attempt to control or mitigate those risk factors. Entrepreneurial marketing has an important role in managing risk in the entrepreneurial firm.
    • Value Creation: Innovative value creation is an important facet of entrepreneurial marketing, as value creation is a prerequisite for transactions and relationships.

    Better understand by A Case Study of Entrepreneurial Marketing in Dell Computers.

    In 1984, a college student named Michael Dell decided to found a computer company. Today it is one of the largest and best-known computer companies in the world. 4 keys Below are some of the steps that Dell took in its earliest stages to get noticed in the computer market.

    • Offer something new: In the early 80s, computers were bought and sold primarily through retail stores. Dell took the then-radical step of selling directly to consumers, cutting out the retail middleman. This made it easy for business customers to place large orders and to customize each computer they purchased.
    • Define their customers: Dell realized early that there was a hole in the market for customized business computers. Their first products were marketed to large and midsized companies looking to purchase many computers at once. It was only in the late 90s that they began to focus on personal computers for students and families.
    • Go to where the customers are: Dell marketed at electronics trade shows, in trade magazines, and in other avenues that corporate technology officers would follow. Advertising messages highlighted the ways that Dell computers were optimized for business customers.
    • Offer exceptional services: Dell offered 24-hour technical support to all of its customers. This was a valuable service to customers who were only beginning to integrate computers into their businesses.

    SME Marketing and Entrepreneurial Marketing:

    The roots of entrepreneurship marketing consider being somewhat based within the SME (Small to Medium Enterprises) sector. Indeed, there is a strong argument among marketing gurus that entrepreneurial marketing is actually about SME marketing. There is also an inclination of ideas within the generic marketing management literature; which suggests that entrepreneurial marketing is somewhat like “textbook” marketing; but with just a few flares or just standard marketing, it’s just doing something different in all aspects. It appears more in the execution and implementation of creative promotion strategies.

    Some people argue that this approach might, aside from what the marketers should do; on the other hand, it can ignore complex subtleties that reduce the entrepreneurial approach to the development of the market. Although being the entrepreneur, this is not necessary because they argue that not all small medium-sized enterprises are entrepreneurs; but entrepreneurship will require to grow and expand these firms, and the benefits of the small firm in marketing such as Growth can achieve.

    Part 01;

    In small companies, decisions generate from the entrepreneurs; and they are capable of working on opportunities and implementing strategies faster than big companies. The stability of innovation in large companies is due to theoretical; and traditional marketing practices where the focus on the needs of the customers, clearly expressed. Here, the concept of customer value must introduce to further develop the argument. Entrepreneurial marketing, like marketing in general, can see in terms of value creation processes.

    The ultimate objective of marketing is to create something that buyers can use to produce their customer value, market offer. In all fixed markets, different levels of approximate customer value, or customer value differences between sellers have been established; Price balance is the expectations of the customers, and if these expectations are met, then it will repeat purchase so that vendors will be able to maintain market position. A traditional market strategy is a market leader and a key player and to establishes the level of expected customer value, which will help the firm exploit with profit.

    Part 02;

    Another way of expressing this is that the key firm should set rules of play among vendors and buyers. One of the main strategies in maintaining a competitive advantage is to make the market as stable as possible and to take advantage of economies of scale in its production. The argument here revolves around the notion that size affects the firms in the direction of marketing decisions. In this era of dramatic social and technological change, an approach for firms to establish; and maintain long-term customer relationships facilitate by entrepreneurship, resources, processes, and artists (entrepreneur, coordinating firm, as well as four-pillar structure) Through entrepreneurial marketing and network).

    Marketing is a challenging process for any organization. In a survey of entrepreneurs around the world, it stood found that finance; and marketing for problem areas lead to entrepreneurs It is true that a model that works for a firm can not work for any other firm. Many marketing gurus engage in a continuous argument within the literature that is fit between the nature of marketing and the theory and practice. There is a growing and focused literature that SMEs conduct a different type of marketing for a large firm. For example, large companies are likely to follow the marketing procedures (for example outsourcing marketing efforts, etc.).

    Part 03;

    Small firms often organize their marketing campaigns at home. The main reason behind in-house marketing is capital and cash constraints. Some ideas suggest that such marketing activity reflects marketing in its pure form “It is marketing but as we know it”. SME marketing does not conform to traditional marketing features of textbook principles.

    However, they are not the only ones in this idea, nowadays it is increasingly being seen that the eclipsed and marketed by entrepreneurs are very different from traditional concepts presented in textbooks and other theories. There are two ‘fundamental prerequisites’ which will showcase the marketing approach made by SMEs; the platform of small enterprises and the prevailing industry standards run in the medium enterprise (SME) life cycle. However, these things should keep against the backdrop of the personal characteristics of the owner/manager/entrepreneur; because the reasoning of the small firm is the argument of the owner, and the two can not separate from each other to reduce the conceptual formation.

    Part 04;

    The first of these life cycle stages – suggests that because of the small and medium-sized firm being mature they have the attitude of marketing. Second: Consistent with industry norms – Industry center on norms, in which small and medium-sized (SME) firm is present. Small firms are generally consistent with those criteria which firms establish within the industry; which relate to firms because a small firm will not have enough resources or even challenge industrial rules in the matter of fact Will not inspire. It is historically clear that industrial conferences can challenge by people outside the industry; and, rapidly it is a small firm with extraordinary market sensing and policies that can challenge such a challenge.

    For example, customers give little interest in the industries but they exist very interested in meeting their needs. The entrepreneur and industry personality in which an entrepreneur-oriented firm operates is likely to exhibit market development orientation and both are related to the overall organizational culture. The firm’s “personality” links to the personality of the entrepreneur.

    Part 05;

    Overall, it strongly argues that based on different dimensions marketing exists done in small companies in small to medium-sized enterprises (SMEs). The way small and large companies are different from the marketing decision-making approach. In larger organizations, the decision-making order exists done within the ordered framework and in a highly structured manner. Decision-making in large companies often has a clear hierarchy. Often the process is based on sound principles and accepted practices. In small companies, the decision-making process is different and arises through the entrepreneur or the owner; and it is his personality and style that shapes the nature of the decision.

    Finally, it is important to say that, entrepreneurial marketing should consider as a supplement to the current general marketing principles. The area is not revolutionary in this sense that the current marketing approach considers obsolete! But the entrepreneurial firms, large and medium to mid-sized enterprises, show a large part of the economy. Marketing practices of such firms should consider within marketing boundaries; There is so much to contribute to the development of modern marketing theory in this kind of research.

    What do you understand by Entrepreneurial Marketing with Characteristics
    What do you understand by Entrepreneurial Marketing? with Characteristics. Discuss company Marketing.

    What about Entrepreneurial marketing Employee? Mean’s Who is that the Employee on Entrepreneurial marketing.

    Entrepreneurial marketing defines by the types of companies that use it. The easiest way to identify an entrepreneurial marketing effort is to look at the company doing the marketing. Startups and emerging companies use entrepreneurial marketing to help establish themselves in emerging industries. It is important to distinguish these businesses from small businesses. While they do start small, their goal is to grow rapidly and to become major players in their industry as quickly as possible.

    This is drastically different from a restaurant or machine shop that may be content to stay small forever. Growth is the primary goal of entrepreneurship, and marketing is the primary means of growth. The marketing strategies used by emerging businesses are not unique to them though. Many major companies use some of the same strategies. Nike and Burger King have both used viral marketing to great effect. Major businesses use these strategies out of opportunity while entrepreneurs use them out of necessity.

  • Important Characteristics of Management is the art of Working through People

    Important Characteristics of Management is the art of Working through People

    Do you thought are these true? Management is the art of Working through People. Management defines by According to Harold Koontz, “Management is the art of getting things done through and with people in formally organized groups.” As well as management also defines by According to Henri Fayol, “To manage is to forecast and to plan, to organize, to command, to coordinate and to control.” So, what we discussing is – Important Characteristics of Management is the art of Working through People.

    It is here that, Important Characteristics of Management:

    Some of the most important characteristics of management are as follows:

    These are:

    • As Art and Science.
    • As a Profession.
    • As System of Authority.
    • As Dynamic Function.
    • As Process – with Social and Integrative.
    • As Universal in Character.
    • As of Factor of Production.
    • In Goal-Oriented.
    • As in Group Activity.
    • As in Group Effort.
    • As in Pre-determined Objectives.
    • As Discipline.
    • As Levels, and.
    • Also, as Distinct Activity.

    Now, Explain each one;

    #An Art as well as a Science:

    Management is a science because it has developed certain principles which are of universal application. But the results of management depend upon the personal skill of managers and in this sense management is an art. The art of the manager is essential to make the best use of management science. Management is both a science and an art.

    It has elements of art and has characteristics of science. It is considered to be science as it has developed certain principles, laws, generalizations which are more or less universal in nature and are applicable wherever the efforts of a group are to be coordinated. It is regarded as art because managing requires certain skills which are the personal possession of the managers.

    Thus, management is both science and art. It should, however, be noted that the science of management is not as exact as the physical science. It is still in the evolutionary stage, may be called as an inexact science or social science.

    #A Profession:

    In the present days, management is recognized as a profession. It has a systematic and specialized body of knowledge consisting of principles, a technique, and laws and can be taught as a separate discipline or subject. Management is now recognized as a profession as it possesses all the attributes of the profession.

    It has a specialized body of knowledge, principles, and techniques and that can be taught and transferred. It follows a scientific approach, involves special skills and tools and adheres to a code of ethics. This has also divorced ownership from management. Now with the advent of large-scale business, the management is entrusted in the hands of professional managers.

    #A System of Authority:

    Since management is a process of directing men to perform a task, authority to accomplish the work from others is implied in the very concept of management. Authority is the power to get the work done from others and to compel them to work in a certain manner. Management cannot perform in the absence of authority. Decision-making and organizing functions cannot be performed unless management is considered as a system of authority which implies a hierarchy of command and control.

    Since management is a process of directing men, to perform a task, authority to accomplish the work from others is implied in the very concept of management. In every enterprise, there are built-up levels of authority to decide, direct and control the business operations. Authority is considered to be the basis of performance of managerial functions. Authority pre-supposes a right to give orders and power to get them executed.

    In a very real sense, management is a rule-making and rule-enforcing body, and within itself, it is bound together by a web of relationship between superiors and subordinates. In the real sense, management is a rule-making and rule-enforcing body. There is a chain of authority and responsibility among people working at different levels of the organization. There cannot be effective management without well-defined lines of command or superior-subordinate relationships at the various levels of decision-making.

    #A Dynamic Function:

    Management is a dynamic function and it has to be performed continuously. It is constantly engaged in the molding of the enterprise in an ever-changing business environment. It is concerned not only with the molding of the enterprise but also the alteration of the environment itself so as to ensure the success of the enterprise. In a real sense, it is a never-ending function.

    #A Process:

    As process management involves those techniques by which the managers coordinate the activities of other people. Stanley Vance has stated five basic ingredients in the management process:

    • The decision on the course of action.
    • Obtaining the necessary physical means.
    • Enlisting others to assist in the performance of the requisite task.
    • Seeing that the job is properly accomplished, and.
    • Apportioning the product of the joint venture.

    In studying management as a process, various managerial activities are taken as a basis for defining management. Management is the planning, organizing, staffing, directing and controlling the activities of people working in a group in order to achieve the objectives of the group.

    #A Social Process:

    Management consists of getting things done through others. This involves dealing with people. The efforts of human beings have to be directed, coordinated and regulated by management in order to achieve the desired results. Management is a social process because management functions are basically concerned with relations among the people. It is called a social process since the efforts of human beings have to be directed, coordinated and regulated by management.

    Moreover, management has a social obligation to make optimum utilization of scarce resources for the benefit of the community at large. The human factor is inseparable from management. According to Brech “It is the pervasiveness of this human element that gives management its special character as a social process.” It is in this sense that management is regarded as a social process.

    Management has a social obligation to make optimum use of scarce resources for the benefit of the community as a whole.

    In the words of Brech,

    “Management is a social process entailing responsibility for the effective and economic planning and the regulation of the operation of an enterprise, in fulfillment of a given purpose or task.”

    #An Integrative Process:

    The essence of management is the integration of human and other resources in such a manner that it leads to effective performance. All these resources are made available to those who manage. Managers apply knowledge, experience, and principles for getting the results. In other words, it seeks to harmonize individual goals with organizational goals.

    #The Universal in Character:

    Management is applicable to all types of organizations. Wherever there is human activity, there is management. The basic principles of management are of universal application and can be applied in all organizations whether they are business, social, religious, cultural, sports, educational, politics or military.

    As Socrates has put it,

    “Over whatever a man may preside, he will be a good president if he knows what he needs and is able to provide it whether he has the direction of a chorus, a family, a city or an army.”

    In the words of Henry Fayol.

    “Be it a case of commerce, politics religion, war…. in every concern there is management function to be performed.”

    Perhaps there is the no more important area of human activity than managing which is of universal application. Fayol was the man who contributed fourteen principles of management which apply more or less in every situation.

    He observed,

    “Be it a case of Commerce, Politics, Religion, and War in every concern there is a management function to be performed.”

    Thus, management is universal in character.

    #A Factor of Production:

    Management is not an end in itself but a means to achieve the group objectives. Just as land, labor, and capital are factors of production and are essential for the production of goods and services, management is a factor of production that is required to coordinate the other factors of production for the accomplishment of pre-determined goals.

    #Goal-Oriented:

    Management aims to achieve economic and social objectives. It exists to achieve some definite goals or objectives. Group efforts in management are always directed toward the achievement of some pre-determined goals. It is concerned with the establishment and accomplishment of these objectives.

    To quote Theo Haimann,

    “Effective management is always management by objectives.”

    Haynes and Massie are of the opinion that without objectives management would be difficult, if not impossible.

    #Group Activity:

    Management is an essential part of a group activity. As no individual can satisfy all his desires himself, he unites with his fellow-beings and works in an organized group to achieve what he cannot achieve individually. Wherever there is an organized group of people working towards a common goal, some type of management becomes essential. Management makes the people realize the objective of the group and directs their efforts towards the achievement of these objectives. Massie has rightly called management as “The cooperative group”.

    #Group Effort:

    Management always refers to group efforts and does not apply to an individual. Apply calls it “efforts of other people,” Massie says it “co-operative group.” Management is used in reference to the efforts of the group because the goals and objectives of an enterprise can be easily and effectively attained by a group rather than an individual.

    #Pre-determined Objectives:

    Group efforts in management are always directed toward the achievement of some pre-determined objectives. These objectives are the final goals of an enterprise towards which all management activities have to be oriented.

    According to Theo Haimann:

    “Effective management is always management by objectives.”

    In the words of Terry,

    “Effective management is extremely difficult to attain without definite objectives.”

    Hynes and Massie state,

    “Management must be set objectives. Without objectives, management would be difficult, if not possible.”

    #Discipline:

    Management today has its organized body of knowledge, principles, and techniques. It is taught in colleges and universities like other disciplines such as Economics, Sociology, Psychology, Political science, etc. Thus, the term management is also used to describe as a field of learning. Management is fast developing as a discipline and its scope and status are bound to increase in the times to come.

    #Needed at all levels:

    An important feature of management is that it applies to all levels of an organization. The lowest level supervisor has also to perform the function of decision-making just like the top-level executives. The only difference is of the nature of the task and scope of authority.

    #Distinct Activity:

    A manager is expected to be a generalist and not a specialist. Thus, the entity of the management is quite distinct from its various functional activities.

    “Management is a separate and distinct entity. It is quite different from the various functional activities and the techniques and procedures which are generally considered as belonging to the field of management.”

    The chief function of the manager is not “to do” but to get things done through others. For performing his functions effectively a manager requires knowledge, skill, and practice. It is necessary to make a distinction between managerial skill and skill required for specialized jobs. Specialized knowledge and technical skill are essential for the successful solution of any problem but basically, such knowledge is not considered necessary for efficient management.

    Important Characteristics of Management is the art of Working through People
    Important Characteristics of Management is the art of Working through People. Image credit from #Pixabay.

  • Meaning, Definition, Types, and Advantages of Eurobonds

    Meaning, Definition, Types, and Advantages of Eurobonds

    A Eurobond is an international bond that denominates in a currency not native to the country where it issues. Also, call external bonds; “External bonds which, strictly, are neither Eurobonds nor foreign bonds would also include: foreign currency-denominated domestic bonds…” This article explains the Euro bonds or Eurobonds with their topics Meaning, Definition, Characteristics, Types, and Advantages. Money may raise internationally by bond issues and by bank loans. This does in domestic as well as international markets.

    The Concept of Eurobonds or Euro bonds explains in Meaning, Definition, Types, Characteristics, and Advantages.

    It can categorize according to the currency in which it issues. London is one of the centers of the Eurobond market, with Luxembourg being the primary listing center for these instruments. The difference is that in international markets the money may come in a currency that is different from that normally used by the borrower. A foreign bond a bond issue in a particular country by a foreign borrower. Eurobonds bonds underwrite and sell in more than one country.

    Meaning and Definition of Eurobonds:

    A foreign bond may define as an international bond sold by a foreign borrower but denominated in the currency of the country in which it is placed. It underwrites and sells by a national underwriting syndicate in the lending country. Thus, a US company might float a bond issue in the London capital market, underwritten by a British syndicate and denominated in sterling.

    The bond issue would sell to investors in the UK capital market, where it would quote and traded. Foreign bonds issued outside the USA call Yankee bonds, while foreign bonds issued in Japan are called Samurai bonds. Canadian entities are the major floaters of foreign bonds in the USA.

    Euro bonds may define as an international bond underwritten by an international syndicate and sold in countries other than the country of the currency in which the issue denominates. In the Eurobond market, the investor holds a claim directly on the borrower rather than on a financial institution.

    Eurobonds are generally issued by corporations and governments needing secure, long-term funds and are sold through a geographically diverse group of banks to investors around the world. Eurobonds are similar to domestic bonds in that they may issue with fixed or floating interest rates.

    An Issue of Eurobonds:

    The issue of Eurobonds is normally undertaken by a consortium of international banks. A record of the transaction called a “Tombstone” is subsequently published in the financial press. Those banks whose names appear at the top of the tombstone have agreed to subscribe to the issue. At a second level, a much larger underwriting syndicate mentioned.

    The banks in the managing syndicate will have made arrangements with a worldwide group of underwriters, mainly banks and security dealers. After arranging the participation of several underwriters, the managing syndicate will have made a firm offer to the borrower, which obtains the funds from the loan immediately. At a third level, the underwriting group usually arranges for the sale of the issue through an even larger selling group of banks, brokers, and dealers.

    Types of Eurobonds:

    There are three types of Eurobonds, of which two are international bonds. A domestic bond is a bond issue in a country by a resident of that country.

    There are several different types of Eurobonds.

    • Straight Bond: Bond is one having a specified interest coupon and a specified maturity date. Straight bonds may issue with a floating rate of interest. Such bonds may have their interest rate fixed at six-month intervals of a stated margin over the LIBOR for deposits in the currency of the bond. So, in the case of a Eurodollar bond, the interest rate may base upon LIBOR for Eurodollar deposits.
    • Convertible Eurobond: The Eurobond is a bond having a specified interest coupon and maturity date. But, it includes an option for the hold to convert its bonds into an equity share of the company at a conversion price set at the time of issue.
    • Medium-term Eurobond: Medium-term Euro notes are shorter-term Eurobonds with maturities ranging from three to eight years. Their issuing procedure is less formal than for large bonds. Interest rates on Euro notes can fix or variable. Medium-term Euro-notes are similar to medium-term roll-over Eurodollar credits. The difference is that in the Eurodollar market lenders hold a claim on a bank and not directly on the borrower.

    Characteristics of Euro bonds or Features of Eurobonds:

    The following characteristics of euro bonds below are;

    • Straight bonds: the fixed interest rate at periodic intervals, usually annually.
    • Floating-rate notes (FRNs): rollover pricing payment usually six months interest stated in terms of a spread over some reference rate.
    • Zero-coupon bonds: discount securities, sold either at a fraction of face value and redeemed at face value, or sold at face value and redeemed at a premium.
    • Convertible bonds: can exchange for some other type of asset: stock, gold, oil, other bonds.
    • Mortgage-backed Eurobonds: backed by a pool of mortgages, or other bonds Institutions which would otherwise exclude from Eurobond market can get access.
    • Dual-currency bonds: purchased in one currency, coupon or principal paid in a second currency.

    The following Eurobonds features are:

    • The issuing technique takes the form of a placing rather than formal issuing, this avoids national regulations on new issues.
    • Eurobonds place simultaneously in many countries through syndicates of underwriting banks. Which sells them to their investment clientele throughout the world.
    • Unlike foreign bonds, Eurobonds sale in countries other than that of the currency of denomination; thus dollar-denominated Eurobonds sale outside the U.S.A.
    • The interest on Eurobonds is not subject to withholding tax.

    Advantages of Eurobonds:

    The Eurobonds market possesses several advantages for borrowers and investors.

    The advantages of Eurobonds to borrowers are:

    • The size and depth of the market are such that it can absorb large and frequent issues.
    • The Eurobond market has freedom and flexibility not found in domestic markets.
    • The cost of the issue of Eurobonds, around 2.5 percent of the face value of the issue.
    • Maturities in the Eurobond market are suited to long-term funding requirements.
    • A key feature of the Eurobond market is the development of a sound institutional framework for underwriting, distribution, and the placing of securities.

    The advantages of Eurobonds to investors are:

    • Euro bonds are issued in such a form that interest can pay free of income or withholding taxes of the borrowing countries. Also, the bonds issued in bearer form and are held outside the country of the investor, enabling the investor to evade domestic income tax.
    • Issuers of Eurobonds have a good reputation for creditworthiness.
    • A special advantage to borrowers as well as lenders provides by convertible Eurobonds. Holders of convertible debentures give an option to exchange their bonds at a fixed price.
    • The Eurobond market is active both as a primary and as a secondary market.

    Bonds denominated in a particular currency that usually issues simultaneously in the capital markets of several nations. They differ from foreign bonds in that most nations do not have pre-offering registration or disclosure requirements for Eurobond issues. An Example of a Eurobond a bond issue by a Russian corporation in the European market that pays interest and principal in U.S. dollars.

    Meaning Definition Types and Advantages of Eurobonds
    Meaning, Definition, Characteristics, Types, and Advantages of Eurobonds. Image Credit from Online.

  • Marketing Management Meaning, Characteristics, and Objectives

    Marketing Management Meaning, Characteristics, and Objectives

    Meaning: Marketing management facilitates The activities and functions which are involved in the distribution of goods and services. Marketing Management Meaning, Characteristics, and Objectives. Their sales plan to a greater extent rest upon the requirements and motives of the consumers in the market. This objective, the organization has to pay heed to the right pricing, effective advertising and sales promotion, distribution and stimulating the consumers through the best services.

    You are one of a Seller or Buyer in Market, So let’s know Marketing Management of Meaning, Characteristics, and Objectives. With Meaning and Definition.

    What is Marketing Management? Marketing management signifies an important functional area of the business manager responsible for the flow of goods and services from the producers to the consumers. It is accountable for planning, organizing, directing, coordinating, motivating and controlling the marketing activities. The types of Product in Marketing Management! In effect, it is the demand management under customer-oriented marketing philosophy.

    Meaning of Marketing Management:

    Marketing management is the management of the crucial and creative task of delivering consumer satisfaction and thereby earning profits through consumer demand. It is the performance of managerial functions of planning, execution, coordination, and control in relation to the marketing functions of marketing research, product planning and development, pricing, advertising, selling and distribution with a view to satisfying the needs of the consumer, business and society. The above expressions bring home very clearly the very substance of marketing management as a matter of planning, implementing and controlling the marketing programmes.

    Marketing management is the marketing concept in action. It includes all activities which are necessary to determine and satisfy the needs of consumers. To be very simple, marketing management sets marketing objectives, develops marketing plans, organizes marketing functions, puts marketing plans and strategies in action and monitors the marketing programmes in the final analysis. Effective marketing management requires the ability and skill of the highest order.

    It warrants close appreciation of the consumer and an understanding of forces of change which are at work in the environment and which have the deep-rooted impact on consumer buying habits and motives. It calls for fertile imagination and creative skill in planning to meet the changing conditions of the marketplace; it also requires skills of coordinating and controlling the wide-spread and complex activities of a dynamic organization. The prime purpose of marketing management is to know the consumer so well that the firm is able to offer him or her products and services to which the consumer remains loyal and the new consumers keep on coming at increasing level.

    Definition of Marketing Management:

    According to Philip Kotler, “Marketing management is the analysis, planning, implementation and control of programmes designed to bring about desired exchanges with target markets for the purpose of achieving organizational objectives. It relies heavily on designing the organizations offering in terms of the target markets needs and desires and using effective pricing, communication, and distribution to inform, motivate and service the market.”

    Marketing management is concerned with the chalking out of a definite programme, after careful analysis and forecasting of the market situations and the ultimate execution of these plans to achieve the objectives of the organization. Marketing management is “The art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value” by Kotler and Keller.

    Features or Characteristics of Marketing Management:

    Some of the main points characteristics of marketing management are as follows:

    Customer-Orientation:

    All business activities should be directed to create and satisfy the customer. Emphasis on the needs and wants of consumers keeps the business on the right track. All marketing decisions should be made on the basis of their impact on the customer. The consumer becomes the guise of business. Also, learn Explaining Product Development in Production Management.

    Marketing Research:

    Under the marketing concept; knowledge and understanding of customer’s needs want and desires is very vital. Therefore, a regular and systematic marketing research programme is required to keep abreast of the market. In addition, innovation and creativity are necessary to match the products of requirements of customers.

    Marketing research is “the process or set of processes that link the producers, customers, and end users to the marketer through information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. Marketing research specifies the information required to address these issues, designs the method for collecting information, manages and implements the data collection process, analyzes the results, and communicates the findings and their implications.” by Wikipedia.

    Up-to-date and adequate knowledge must be available to answer the following questions:

    • What business are we really in?
    • Who are our customers?
    • What do the customers want?
    • How should we distribute our products?
    • How can we communicate most effectively with our customers?’
    Marketing Planning:

    The marketing concept calls for a goal-oriented approach to marketing. The overall objectives of the firm should be the earning of profits through the satisfaction of customers. “A marketing plan may be part of an overall business plan. Solid marketing strategy is the foundation of a well-written marketing plan. While a marketing plan contains a list of actions, without a sound strategic foundation, it is of little use to a business” by Wikipedia. On the basis of this goal, the objectives and policies of marketing and other departments should be defined precisely. Marketing planning helps to inject the philosophy of consumer-orientation into the total business systems and serves as a guide to the organization’s efforts.

    Integrated Marketing:

    Once the organizational and departmental goals are formulated, it becomes necessary to harmonize the organizational goals with the goals of the individuals working in the organization. The activities and operation of various organizational units should be properly coordinated to achieve the defined objectives. The marketing department should develop the marketing mix which is most appropriate for accomplishing the desired goals through the satisfaction of customers.

    Customer Satisfaction:

    “Customer satisfaction is a term frequently used in marketing. It is a measure of how products and services supplied by a company meet or surpass customer expectation” by Wikipedia. The aim should be to maximize profit over the long run through the satisfaction of customers wants.

    Aim or Objectives of Marketing Management:

    In the light of this statement, we can highlight the aim’s of marketing management as follows:

    • Creation of Demand: The marketing management’s first objective is to create demand through various means. A conscious attempt is made to find out the preferences and tastes of the consumers. Goods and services are produced to satisfy the needs of the customers. Demand is also created by informing the customers about the utility of various goods and services.
    • Customer Satisfaction: The marketing manager must study the demands of customers before offering them any goods or services. Selling the goods or services is not that important as the satisfaction of the customers’ needs. Modern marketing is customer- oriented. It begins and ends with the customer.
    • Market Share: Every business aims at increasing its market share, i.e., the ratio of its sales to the total sales in the economy. For instance, both Pepsi and Coke compete with each other to increase their market share. For this, they have adopted innovative advertising, innovative packaging, sales promotion activities, etc.
    • Generation of Profits: The marketing department is the only department which generates revenue for the business. Sufficient profits must be earned as a result of the sale of want-satisfying products. If the firm is not earning profits, it will not be able to survive in the market. Moreover, profits are also needed for the growth and diversification of the firm.
    • Creation of Goodwill and Public Image: To build up the public image of a firm over a period is another objective of marketing. The marketing department provides quality products to customers at reasonable prices and thus creates its impact on the customers.
    • Creating Customers: A business firm is established to sell a product or service to customers. Therefore, the customer is the foundation of a business. It is the customer who provides revenue to business and determines what an enterprise will sell. Creating customers means exploring and identifying the needs and requirements of customers. If a firm is to go and stay in business, it must create new customers. It should analyze and understand their wants.
    • Satisfying Customers Needs: Creating customer is not enough. Business should develop and distribute products and services which meet the requirements of customers to their satisfaction. If customers are not satisfied, the business will not be able to generate revenues to meet its costs and to earn a reasonable return on its capital. Satisfying customers does not simply mean matching products with customers’ needs. It also requires the regular supply of goods and services of reasonable quality at fair prices.

    The marketing manager attempts to raise the goodwill of the business by initiating image-building activities such a sales promotion, publicity and advertisement, high quality, reasonable price, convenient distribution outlets, etc. The objectives of marketing management have been obtained from the overall objectives of the business. The overall aim of the business is to create, develop and serve society with other things. Marketing management can contribute to the achievement of these objectives by developing and distributing those objectives and services that meet the needs of the customers and benefit the business enterprise.

    Summary: Marketing Management Meaning, Characteristics, and Objectives.

    What is Marketing Management? Explains.

    1. Meaning of Marketing Management.

    2. Definition of Marketing Management.

    3. Features or Characteristics of Marketing Management, and:

    • Customer-Orientation.
    • Marketing Research.
    • Marketing Planning.
    • Integrated Marketing, and.
    • Customer Satisfaction.

    4. Objectives of Marketing Management:

    • Creation of Demand.
    • Customer Satisfaction.
    • Market Share.
    • Generation of Profits.
    • Creation of Goodwill and Public Image.
    • Creating Customers, and.
    • Satisfying Customers Needs.

    Marketing Management Meaning Characteristics and Objectives

  • The Project is explained in Features, Characteristics, and Objectives

    The Project is explained in Features, Characteristics, and Objectives

    A Project is an activity to make something unique. Of course, many office buildings are Built-in many respects, but each individual feature is unique in its own way. The Project is explained in Features, Characteristics, and Objectives. One person or organization involved in projects need to understand how to solve the complexity of problems through project management. In this article, we will define the word “project”, describe the key features of a project, and explain the way to separate a project from an activity.

    The Project has explained in some points Nature, Features, Characteristics, and Objectives.

    What is a Project? Meaning, Definition, and Nature.

    The project is a great opportunity for organizations and individuals to achieve their business and non-business objectives more efficiently through implementing change. Projects differ from other types of work (e.g. process, task, procedure). Meanwhile, in the broadest sense, a project is defined as a specific, finite activity that produces an observable and measurable result under certain preset requirements. Projects help us make desired changes in an organized manner and with reduced probability of failure.

    It is an attempt to implement the desired change in an environment in a controlled way. “A Project is a temporary, unique and progressive attempt or endeavor made to produce some kind of a tangible or intangible result (a unique product, service, benefit, competitive advantage, etc.). It usually includes a series of interrelated tasks that are planned for execution over a fixed period of time and within certain requirements and limitations such as cost, quality, performance, others.” By using projects we can plan and do our activities, For Example: build a garage, run a marketing campaign, develop a website, organize a party, go on vacation, graduate a university with honors, or whatever else we may wish to do.

    According to the PMBOK (Project Management Body of Knowledge), A project is defined as a “temporary endeavor with a beginning and an end and it must be used to create a unique product, service or result”. Further, it is progressively elaborated. What this definition of a project means is that projects are those activities that cannot go on indefinitely and must have a defined purpose. A project is an activity to meet the creation of a unique product or service and thus activities that are undertaken to accomplish routine activities cannot be considered projects.

    A project is defined as “A non-routine, non-repetitive one-off undertaking normally with—discrete time, financial and technical performance goals.” The definition is descriptive and, because of the endless variety of projects, most of the definitions are of this nature.

    A project can consider being any series of activities and tasks that:

    • Have a specific objective to be completed within certain specifications.
    • Have defined start and end dates.
    • Have funding limits (if applicable), and.
    • Consume resources (i.e. money, time, equipment).

    The Project is explained, Definition of a Project:

    The project starts from scratch with a definite mission, generates activities involving a variety of human and non-human resources, all directed towards the fulfillment of the mission and stops once the mission is fulfilled.

    According to the Project Management Institute, USA, “a project is a one-set, time-limited, goal-directed, major undertaking requiring the commitment of varied skills and resources”.

    It also describes a project as “a combination of human and non-human resources pooled together in a temporary organization to achieve a specific purpose”. The purpose and the set of activities which can achieve that purpose distinguish one project from another.

    “A project consists of a combination of organizational resources pulled together to create something that did not previously exist and that will provide a performance capability in the design and execution of organizational strategies.”
    “A project is a temporary process undertaken to create one or a few units of a unique output or product or service whose attributes are progressively delineated in the course of the project’s execution.”

    The Project is explained – Second point, Characteristics or Features of a Project:

    The characteristics or features of a project are as follows:

    • Objectives: A project has a fixed set of objectives. Once the objectives have been achieved, the project ceases to exist.
    • Life-cycle: A project has a life cycle reflected by growth, maturity, and decay. It has naturally a learning component.
    • Uniqueness: No two projects are exactly similar even if Die plants are exactly identical or are merely duplicated. The location, the infrastructure, the agencies, and the people make each project unique.
    • Change: A project sees many changes throughout its life while some of these changes may not have any major impact; they can be some changes which will change the entire character of course of the project.
    • Life Span: A project cannot continue endlessly. It has to come to an end. What represents the end would normally be spelled out in the set of objectives.
    • Single entity: A project is one entity and is normally entrusted to one responsibility center while the participants in the project are many.
    • Team-work: A project calls for team-work. The team again is constituted of members belonging to different disciplines, organizations, and even countries.
    • Made to order: A project is always made to the order of its customer. The customer stipulates various requirements and puts constraints within which the project must execute.
    • Unity in diversity: A project is a complex set of thousands of varieties. The varieties are in terms of technology, equipment, and materials, machinery and people, work culture and ethics. But they remain inter-related and unless this is so, they either do not belong to the project. Or will never allow the project to be completed.
    • Successive principle: What is going to happen during the life cycle of a project is not fully known at any stage. The details get finalized successively with the passage of time. More is known about a project when it enters the construction phase than what was known to say, during the detailed engineering phase.
    • Risk and uncertainty: Every project has risk and uncertainty associated with it. The degree of risk and uncertainty will depend on how a project has passed through its various life-cycle phases. An ill-defined project will have the extremely high degree of risk and uncertainly Risk and uncertainty are not part and parcel of only R and H projects there simply cannot be a project without any risk and uncertainty.
    • High level of sub-contracting: A high percentage of the work in a project is done through contractors. The more the complexity of the project, the more will be the extent of contracting. Normally around 80% of the work in a project is done through sub-contractors.

    Key of Characteristics:

    As follows from the given definition, any project can be characterized by these characteristics:

    Temporary:

    This key characteristic means that every project has a finite start and a finite end. The start is the time when the project is initiated and its concept is developed. The temporary nature of a project indicates that a project has a definite beginning and a definite end.

    The beginning is marked by the start of the project and the end is reached when the project’s objectives have been achieved or when the project is terminated for some other reason. ‘Temporary’ is also one of the characteristics distinguishing a project from normal operations. The end is reached when all objectives of the project have been met (or unmet if it’s obvious that the project cannot be completed – then it’s terminated).

    Unique Deliverable’s:

    Any project aims to produce some deliverable(s) which can be a product, service, or some another result. Every project is unique and different. This is another aspect that differentiates a project from normal operations. Deliverables should address a problem or need analyzing before project start. Repetitive elements may be present in project deliverables and activities, but there is always something different about those elements or the way in which they are combined.

    Once again, a building construction project can serve as a conceptual example. A specific structure may be designed by people who have designed other buildings, constructed by people who have built other buildings, and made from the same materials as other buildings. Yet, an individual building project brings those elements together in a unique way; A particular building of a specific design for an exact purpose using selected materials all combine to create a unique construction project.

    Progressive Elaboration:

    With the progress of a project, continuous investigation and improvement become available, and all this allows producing more accurate and comprehensive plans. This key characteristic means that the successive iterations of planning processes result in developing more effective solutions to progress and develop projects.

    Creating Output:

    Every project creates some type of product, service, or end result. These outputs are called deliverables and they are the reason projects exist and take place. Project output can be both tangible and intangible. An example of tangible project output is the building resulting from a construction project. Examples of intangible projects include new services or events.

    The Project is explained – and the Last Point, Objectives of a Project:

    The “Project” is a means to achieve a “goal”. By the completion of projects, the creative part (of the projected asset) comes to an end and, thereupon, the project-created tangible thing is used to achieve the goal. So, primarily, there is a goal aimed at by the project owner and, in order to achieve that goal, he initiates the “project”. Accordingly, before we deal with the project objectives, we would like to go through the possible objectives of the project owner.

    First Objectives, A popular expression runs:

    “Project grows out of needs or opportunities.” The project, in general, is undertaken when the need or opportunity is identified, a proposal is crystallized in form of a project, the proposal is then transformed into necessary activities to build-up the project, e.g. setting up a plant. Along with further analyses and appraisal of the project technical, financial etc. a firm decision is made about launching a project.

    At this point, the project objectives are set which becomes the ultimate philosophy for the project team. Any project decision is based upon the full evaluation of its impact upon the project objectives.

    The project, when finalized, has the following objectives:

    • It has a time-bound programme to start, execute, commission and delivery of the project;
    • It has cost-bound activities in terms of money spent or resources consumed so that total cost is within the total estimated project cost as agreed and authorized by the project owner and
    • It shall conform to the technical specifications set at the point of deciding upon the project. In others words, the delivery (of the project) shall have to be of the agreed quality.

    Second Objectives, Without Money-Making Mission:

    • There are situations where projects need to be implemented with social objectives. Primarily, these are undertaken by the government—non-industrial projects aimed towards the social benefits as, public health, irrigation, education etc. The government, being the owner of these projects, provides funds for such projects.
    • Projects are also undertaken on account of emergency and/or need of national importance e.g. defense and security. Even though such projects can be highly complex and costly phenomena as constructing an aircraft landing facility at high altitude—such projects are non-industrial and funded by the government.
    • There are projects within an industrial organization with the social objective, being necessary as per local legal regulations, e.g. Instituting facilities for health-care, education, sports etc. within a township built-up by a very large industrial organization. Influence of ‘politics’ also plays an important role in location, timing, and size of such projects.
    • There are instances where industrial organizations are aspiring to achieve and/or maintain a leading position in the trade/industry. In such a situation, the organization decides to spend some of its resources on Research and Development activities including research in finding out new products, new processes, development of existing products etc. to avail the cost benefit.

    The management of such an organization decides to go ahead for the Research and Development projects with a plan to install facilities to search for the probable product and/or process. Installation of such project includes the establishment of a laboratory with sophisticated equipment, the appointment of professionals and the supply of necessary consumables.

    In all such cases mentioned in (a) to (d) above the project is confined to budgeted costs and, obviously, no revenue/income is involved. There is a scope of deliberation on expenses involved, considering the resources available in the organization. There may be the limitation and/or deferment of the expenses under this type of project as per the decision of the management.

    The Project is explained in Features Characteristics and Objectives
    Image credit from #Pixabay.

  • How to discuss the Characteristics of a Project?

    How to discuss the Characteristics of a Project?

    The project has been defined by Project Management Institute (USA) as “Any undertak­ing with a defined objective by which completion is identified. In practice, most projects depend on finite or limited resources by which objectives are to be accomplished.” —Project Management Body of Knowledge (PMBOK). How to discuss the Characteristics of a Project? A project is typically for a customer. The project is temporary in nature. It typically has a defined start and a defined end-point.

    The project will have a unique set of requirements that need to be delivered within the boundaries of this project. A project is defined as “A non-routine, non-repetitive one-off undertaking normally with discrete time, financial and technical performance goals.” The definition is descriptive and, because of the endless variety of projects, most of the definitions are of this nature.

    The Department of Project Management in the Business, How to discuss the Characteristics of a Project?

    Characteristics of a Project:

    Following Project characteristics include below:

    • The project has an owner, who, in the private sector, can be an individual or a company etc., in the public sector, a government undertaking or a joint sector organization, represent­ing a partnership between public and private sector.
    • The project has a set objective to achieve within a distinct time, cost and technical performance.
    • The project is planned, managed and controlled by an assigned team the project team planted within the owner’s organization to achieve the objectives as per specifications.
    • The project, in general, is an outcome in response to environments economies and opportunities. As an example, we find that considering the changing pattern of modern living the domestic appliances small e.g. grinders, mixers etc., and large, e.g. refrigerators, washing machines etc. are on ever-increasing demand. This generates responses to avail opportunity to produce such appliances.
    • The project is an undertaking involving future activities for completion of the project within estimates and, «s such, involves complex budgeting procedure with a mission.
    • Implementation of the project involves a coordination of works/supervisions by project team/manager.
    • The project involves activities to be carried out in the future. As such, it has some inherent risk and, in reality, the process of implementation may necessitate certain changes in the plan subject to limitations and concurrence of the project owner.
    • The project involves high-skilled forecasting with the sound basis for such forecasting.
    • Projects have a start and an end a characteristic of a life cycle. The organization of project changes as it passes through this cycle the activities starting from—conception stage, mounting up to the peak during implementation and, then, back to zero level on completion and delivery of the project.

    Some attributes that characterize projects

    Importance of a project:

    The most crucial attribute of a project is that it must be important enough in the eyes of senior management to justify setting up a special organizational unit outside the routine structure of the organization. If the rest of the organization senses, or even suspects, that it is not really that important, the project is generally doomed to fail. The symptoms of lack of importance are numerous and subtle: no mention of it by top management, assigning the project to someone of low stature or rank, adding the project to the responsibilities of someone who is already too overworked, failing to monitor its progress, failing to see to its resource needs, and so on.

    Performance of a project:

    A project is usually a one-time activity with a well-defi ned set of desired end results. (We discuss poorly defi ned, or “quasi-” projects a bit later.) It can be divided into subtasks that must be accomplished in order to achieve the project goals. The project is complex enough that the subtasks require careful coordination and control in terms of timing, precedence, cost, and performance. Often, the project itself must be coordinated with other projects being carried out by the same parent organization.

    Life Cycle with a Finite Due Date of a project:

    Like organic entities, projects have life cycles. From a slow beginning they progress to a buildup of size, then peak, begin a decline, and finally must be terminated by some due date. (Also like organic entities, they often resist termination.) Some projects end by being phased into the normal, ongoing operations of the parent organization. The life cycle is discussed, where an important exception to the usual description of the growth curve is mentioned. There are several different ways in which to view project life cycles. These will be discussed in more detail later.

    Interdependencies of a project:

    Projects often interact with other projects being carried out simultaneously by their parent organization. Typically, these interactions take the form of competition for scarce resources between projects, and much of Chapter 9 is devoted to dealing with these issues. While such interproject interactions are common, projects always interact with the parent organization’s standard, ongoing operations.

    Although the functional departments of an organization (marketing, fi nance, manufacturing, and the like) interact with one another in regular, patterned ways, the patterns of interaction between projects and these departments tend to be changeable. Marketing may be involved at the beginning and end of a project, but not in the middle. Manufacturing may have major involvement throughout. Finance is often involved at the beginning and accounting (the controller) at the end, as well as at periodic reporting times. The PM must keep all these interactions clear and maintain the appropriate interrelationships with all external groups.

    The uniqueness of a project:

    Though the desired end results may have been achieved elsewhere, they are at least unique to this organization. Moreover, every project has some elements that are unique. No two construction or R & D projects are precisely alike. Though it is clear that construction projects are usually more routine than R & D projects, some degree of customization is a characteristic of projects.

    In addition to the presence of risk, as noted earlier, this characteristic means that projects, by their nature, cannot be completely reduced to routine. The PM’s importance is emphasized because, as a devotee of management by exception, the PM will find there are a great many exceptions to manage by.

    Resources of a project:

    Projects have limited budgets, both for personal as well as other resources. Often the budget is implied rather than detailed, particularly concerning personnel, but it is strictly limited. The attempt to obtain additional resources (or any resources) leads to the next attribute—conflict.

    Conflict of a project:

    More than most managers, the PM lives in a world characterized by conflict. Projects compete with functional departments for resources and personnel. More serious, with the growing proliferation of projects, is the project-versus-project conflict for resources within multi-project organizations. The members of the project team are in almost constant conflict for the project’s resources and for leadership roles in solving project problems.

    The PM must be an expert in conflict resolution, but we will see later that there are helpful types of conflict. The PM must recognize the difference. The four parties-at-interest or “stakeholders” (client, parent organization, project team, and the public) in any project even define success and failure in different ways. The client wants changes, and the parent organization wants profi ts, which may be reduced if those changes are made. Individuals working on projects are often responsible for two bosses at the same time; these bosses may have different priorities and objectives. Project management is no place for the timid.

    Nonprojects and Quasi-Projects of a project:

    If the characteristics listed above define a project, it is appropriate to ask if there are non-projects. There are. The use of a manufacturing line to produce a flow of standard products is a non-project. The production of weekly employment reports, the preparation of school lunches, the delivery of mail, the flight of Delta-1288 from Dallas to Dulles, checking your e-mail, all are non-projects. While one might argue that each of these activities is, to some degree, unique, it is not their uniqueness that characterizes them.

    They are all routine. They are tasks that are performed over and over again. This is not true of projects. Each project is a one-time event. Even the construction of a section of interstate highway is a project. No two miles are alike and constructing them demands constant adaptation to the differences in terrain and substructure of the earth on which the roadbed is to be laid. Projects cannot be managed adequately by the managerial routines used for routine work.

    In addition to projects and non-projects, there are also quasi-projects: “Bill, would you look into this?” “Judy, we need to finish this by Friday’s meeting.” “Can you find out about this before we meet with the customer?” Most people would consider that they have just been assigned a project, depending on who “we” and “you’’ is supposed to include. Yet there may be no specific task identified, no specific budget given, and no specific deadline defined. Are they still project, and if so, can project management methods be used to manage them? Certainly!

    The performance, schedule, and budget have been implied rather than carefully delineated by the words “this,” “meet,” and “we” (meaning “you”) or “you” (which may mean a group or team). In such cases, it is best to try to quickly nail down the performance, schedule, and budget as precisely as possible, but without antagonizing the manager who assigned the project. You may need to ask for additional help or other resources if the work is needed soon—is it needed soon? How accurate/thorough/detailed does it need to be? And other such questions.

    One common quasi-project in the information systems area is where the project includes the discovery of the scope or requirements of the task itself (and possibly also the budget and deadline). How can you plan a project when you don’t know the performance requirements? In this case, the project is, in fact, determining the performance requirements (and possibly the budget and deadline also).

    If the entire set of work (including the discovery) has been assigned to you as a project, then the best approach is to set this determination as the first “milestone” in the project, at which point the resources, budget, deadline, capabilities, personnel, and any other matters will be reviewed to determine if they are sufficient to the new project requirements. Alternatively, the customer may be willing to pay for the project on a “cost-plus” basis and call a halt to the effort when the benefits no longer justify the cost.

    Characteristics of Project in Project Management

    Following are some of the important characteristics of the project.

    • The project is temporary with certain starting & ending date.
    • The opportunities and teams of the project are also for the temporary duration.
    • Projects are ended when the goals are accomplished or when the goals are not achieved.
    • Often projects continue for many years but still, their duration is finite.
    • Multiple resources are involved in the projects along with the close coordination.
    • Interdependent activities are involved in the project.
    • A unique product, service or result is developed at the end of the project. There is also some extent of customization in the project.
    • Complex activities are included the projects which need repetitive acts and are not simple.
    • There is also some sort of connection in the activities of the project. Some sequence or order is also required in the activities. The output of certain activity becomes the input of another activity.
    • There is the element of conflict in the project management. For resources & personnel, the management should compete with the functional departments.
    • Permanent conflict is associated with resources of the project and leadership roles which are important in solving the problems of the project.
    • Clients desire changes in every project and the parent organization desires to maximize its profits.
    • There is the possibility of two bosses in the project at the single time, each with different objectives and priorities.

    How to discuss the Characteristics of a Project
    Image Credit from #Pixabay.

  • A Good Advertisement Copy: Characteristics and Elements

    A Good Advertisement Copy: Characteristics and Elements

    Meaning: An “ad copy” is the medium through which an advertiser expresses his views as a message to readers. This article explains about A Good Advertisement Copy with discussion by Characteristics and Elements. It refers to all the reading cases of an advertisement, whether it is short or long, and includes the title, sub-title, text or body, an advertiser’s name or initials. An ad copy is sometimes known as “advertising message”. Also, learn A Good Advertisement Copy.

    Understand and Learn, A Good Advertisement Copy: Characteristics and Elements.

    Ad copy can be anything from a simple text to art form made of aesthetics or to a celebrity playing in the background or appearing in admirable music or ad in the background. A product or brand advertisement is done through many mediums. There are newspapers and magazines in which there are many pages of advertising.

    The advertisement in this form is known as the print media. Advertising can do through visual and audio media, which are usually television channels and radio channels. Regardless of how the advertisement is done, the jingles in the advertisements displayed or displayed in the words, serve as a continuous reminder for the brand and its products in our memory.

    An ad copy helps people targeted to an organization to communicate a specific message. Advertising copy plays an important role in taking marketing efforts for customers. Making an ad copy for print media and electronic media differs on different aspects. While print media ads have a positive effect on the position and appearance of the position, the electronic media is focused on catching people’s hearts within a few seconds of the allotted time.

    The Concept of the study Explains – A Good Advertisement Copy: Characteristics of a Good Advertisement Copy, and Elements of a Good Advertisement Copy.

    Characteristics of a Good Advertisement Copy:

    This article throws light on the few main characteristics of a good copy of the advertisement.

    The following characteristics are:

    • Attention Value.
    • Suggestive Value
    • Memorizing Value.
    • Conviction Value.
    • Sentimental Value.
    • Educational Value, and.
    • Instinctive Appeal Value.

    Now Explanation Each:

    Attention Value:

    The copy of an advertisement should so draft as to easily draw the attention of the prospects. This is the first requisite on which depends on the effectiveness of the ad­vertisement. Attraction can bring about by pictures, by the use of display types, borders, price quotations, reply coupons, etc. Which one or which of them will be most suitable depends on the individual condition of the product and the market.

    Suggestive Value:

    The suggestion as to the use and quality of the product makes a copy of the advertisement a good one. The re­peated use of a suggestion, a command or a slogan can do the trick. Coca-Cola, Pepsi are examples.

    Memorizing Value:

    The copy of the advertisement should so draft as to make it suitable to stick to the memory of the in­dividual reader. Repetition of the advertisement is an effective way of creating memorizing value. In any copy of advertise­ment of a branded product, the advertiser must stress the brand name repeatedly. (Vim, Coca-Cola, etc.).

    Conviction Value:

    Convincing arguments add value to a copy of the advertisement. To create the conviction value, the advertiser will have to avoid both extremes it should neither be a plain notice to the prospects announcing the availability of a certain product nor should it use flowery and high-flown language to advertise a product, without giving any tangible and appealing reasons why the customer should prefer the product to the rival products in the market.

    Sentimental Value:

    Sentiments play a very important role in any matter. In advertising, it must not overlook that the sentiments of those for whom the advertisement is primarily meant rouse or at least not injured or adversely affected.

    Educational Value:

    A copy of the advertisement, though is commercial, we must not forget that the advertise­ment should contain information that has some educational value. An advertisement not only retains an existing market but creates the market for the future. The copy of the advertisement should be informative and must contain in it the ingredients that will help people to change their habits in such as to be conducive to create additional demand.

    Instinctive Appeal Value:

    Certain instincts are ingrained in human beings. The copy of the advertisement should so draft as to encourage those instincts that are relevant for the product advertised. Advertising is essentially the motivation of the po­tential consumer and to activate the motivation, an appeal is of very great significance.

    Generally speaking, a good of advertis­ing should direct to:

    1. Self-preservation instinct,
    2. Hoarding instinct,
    3. The instinct for self-display,
    4. Parental in­stinct and,
    5. Something for nothing instinct (vague desire’ to get something without paying for it).

    Based on these basic instinctive appeals, the follow­ing themes may lay down for a copy of good advertisement: pride, beauty, health, economy, comfort, fear, parental affec­tion, patriotism, achievement, emulation, and imitation.

    The Elements of a Good Advertising Copy:

    The make-up or parts of the copy of the good advertisement or advertising can view from two aspects – elements below are:

    1. Advertising theme, and.
    2. Advertising layout.

    Now, explain each one;

    Advertising Theme:

    A theme represents a particular viewpoint or a central idea with which the message is conveyed to the consuming public. The theme involves a rational appeal based on human emotions, desires or sentiments. Such well-thought-out and specific appeals became effective in arousing desire and in initiating action on the part of consumers.

    Elements of Good Advertisement Copy – The following are the common themes used in advertising:

    The theme of beauty:

    The sales appeal for cosmetics, perfumeries, and toilet products are usually based upon the theme of beauty. Accordingly, the message of the advertisement contains expressions like “For romantic or charming appearance, use product A”, “Product B ensures alluring or exquisite complexion”, or “Care your hair with product C for the glossy glimpse and luxuriant growth.”

    The theme of pride:

    The sales message in the case of pieces of jewelry, radios, costly clothes, motor cars, and others is laid upon the theme of pride since the acquisition of such products deems as proud possessions on the part of buyers. For example, “Prestige car means A”, “Radio B adds decency to any home”, “Discerning people prefer fabric C”, or “X’s Jewellery adorns fashionable ladies.”

    The theme of health:

    Food products and drugs are advertising through reliance upon the theme of health. To take some examples, “Product A supplies boundless energy and vigor”, “Health brings happiness—and the key to health help by product B”, “Product C keeps you free from disease”, or “Eminent physicians prescribe D for cold and cough.”

    The theme of comfort:

    Products which aid in giving comfort to the people at work or home are advertising through the theme of comfort. Elec­trical fans, air-conditioning plants, refrigerators, and the likes belong to the group of products meant for providing comfort.

    The theme of the economy:

    This is a common appeal use in many cases for making bargaining purchase, for saving money or for protecting costly things from decay and destruction.

    The theme of fear:

    The theme of fear utilizes by insurance companies and safety-vault operators in expanding the demand for their services. Possible dangers and their consequences are presenting in the copy of advertising for initiating action on the part of their customers.

    The theme of emulation:

    The desire for imitation strongly implants in human nature. By giving illustrations and factual information as to what some distinguished persons do, the message of the advertisement may call for imitation on the part of others. To take one case, “The succ­essful men all over the globe use Blade A.”

    The theme of distinction:

    The desire for individual recognition, distinct social status, and superior community standing is inherent in human beings. As an outward mark of that distinction, selected products of very expensive nature are acquiring by a class of people who may be high-borns or aristocrats.

    The theme of affection:

    Baby foods, toys, and other playthings are advertising based on this theme. By directing appeal towards parental love, the copy of advertising becomes effective in securing action on the part of buyers.

    The theme of patriotism:

    The appeal for products of national origin is sometimes based upon national sentiments. For the prosperity of a nation and its citizens, the theme of patriotism makes out a case for using national products in preference to goods of foreign origin.

    Advertising Layout:

    The layout is the logical arrangement of compo­nents of an advertisement in the copy and deals with the systematic presentation of the message. The pattern of layout varies according to the medium to use.

    For newspapers and magazines, the presentation of the message is visible in written words and pictures; in radio, the presentation is audible in spoken words and sound effects; and in television, both audio and visual presentations are practicable. In all cases, balance and symmetry are of prime importance in presenting the message within the allotted space or time.

    Visual layout in any publication can divide into the following three parts:

    Headlines:

    Headlines are using in bold letters for drawing atten­tion of the consuming public. The size and length of the headline must be appropriate to the general format and page size of the publication; it must also be in keeping with the theme of advertising and with the entire makeup of the copy.

    Usually, short headlines are giving stressing some facts, suggestions, prepositions or convictions. In magazines and trade journals, color printing adopts for headlines to make than more promi­nent and conspicuous.

    Illustrations:

    Illustrations are giving by way of pictures, symbols or photographs for drawing attention, creating interest as well as for arousing desire. Significant illustrations may be worth a thousand words in securing public reception for the product.

    But limits of decency must not exceed in presenting pictures or photographs which should always be in good taste. Obscene and objectionable pictures do more harm than good to the cause of advertisement.

    Texts:

    Texts provide the heart of the message of advertisements, and they are to weave around an advertising theme. For an individual copy, one theme is desirable; a multiplicity of themes creates confusion and weakens the strength of appeal. For presenting the text, different practices are following in the business world.

    In some cases, the text prefaces by a statement of the problem to the reader and follow by a solution thereof. In other cases, reading materials are presenting analytically with pertinent facts and data. Furthermore, the text may present by the use of a typeface in one copy or of hard lettering in another copy.

    A Good Advertisement Copy Characteristics and Elements - ilearnlot
    A Good Advertisement Copy: Characteristics and Elements #Pixabay,

  • A Good Advertisement Copy: Features, Types, and Benefits

    A Good Advertisement Copy: Features, Types, and Benefits

    The advertisement copy refers to the written contents of the advertisement including its text and headline. This article explains about A Good Advertisement Copy with discussion by Features, Types, and Benefits. It can refer to as the heart of advertising and should draft with utmost care; otherwise, all the money invested in carrying out the advertisement campaign will go to waste.

    Explanation and Learn, A Good Advertisement Copy: Features, Types, and Benefits.

    In the words of William J. Stanton “The copy in an advertisement is defined as the written or spoken material in it, including the headline, coupons and advertiser’s name, and address as well as the main body of the message”. Simply stated advertisement copy means the total structure relating to the message which the advertiser wants to convey by using any medium of advertisement.

    The advertisement copy should prepare in such a manner as to leave ever­lasting impression on the reader. The job of drafting the copy should entrust to an expert. The reader should not only read but understand and believe the contents given in the advertisement copy.

    It should properly work and cover every detail about the product. Various considerations or essentials of a properly drafted advertisement copy are as under.

    The Concept of the study Explains – A Good Advertisement Copy: Features of a Good Advertisement Copy, Types of a Good Advertisement Copy, and Benefits of a Good Advertisement Copy.

    The Features or Characteristics of a Good Advertisement Copy:

    These also know as salient features or characteristics of a good advertisement copy.

    It Should Be Simple:

    The first important ingredient of an advertisement copy is that it should write in simple language. It should be capable of proper understanding. They should not use ornamental and tough words rather short, simple and properly understandable words.

    It Should Be Capable Of Holding The Reader’s Attention:

    An advertisement copy should be capable of holding the attention of the reader. It should present in such a manner which attracts the consumer immediately.

    The following methods may undertake to hold the attention of the reader:

    • Headlines should properly word and attractive. It should be short and easy for the reader to remember.
    • Use of pictures and sketches should be in direct relation to the product to advertise. A good sketch and drawing will be greatly helpful in explaining the product.
    • An attractive border may insert around the advertisement copy to distinguish it from other advertisements. Underlining the keywords and leaving blank space at the bottom of the copy is also helpful in drawing the reader’s attention.
    • Quoting the price of the product in the advertisement copy is also helpful in holding the attention of a reader. This would be more helpful if the price of the commodity is low.
    • The insertion of reply coupons in the advertisement copy is also helpful in attracting the people.
    It Must Be Suggestive:

    The advertisement copy should be capable of suggesting the reader about the utility and use of the product. Effective slogans can use to give suggestions to people. For example, in case of camp Cola, it is written in the advertisement copy that “life is full of camp cola times”, similarly in case of State Bank of India, it is advertised, “protect your future with State Bank of India”. All these slogans have suggestive value. Suggestions may also give with the help of certain pictures in the advertisement copy.

    It Should Have Conviction Value:

    The advertisement copy shall be able to have an everlasting impression on the reader if the suggestions are backed by convincing arguments. The reader should not have any doubt on the quality of the product. He should fully convince and satisfied. Exaggeration in explaining the qualities’ of a product must check. An appeal about the outstanding features of the product must make. It should state in simple language so that the reader could understand easily.

    In the case of Chelpark fountain pen ink, it is written that it cleans your pen while writing, contains clean x for better pen protection. Similarly in case of Forhan’s toothpaste, “it is ideal for the gums” and “protects your teeth” some organizations assure “money-back guarantee” to convince the people about the quality of the products.

    It Should Educate The People:

    The advertisement copy should tell the people about the use and operation of a product. It should also impart new uses of a product with which the people are not familiar. An advertisement copy containing information about the use, sources from where the product can obtain, price and services available along with the product is greatly helpful in enhancing the demand and enlarging the sales.

    For example, in the case of Hawkin’s pressure cooker, a booklet is also given to the buyer containing methods of preparing various vegetables, soups, and puddings, etc. with the help of the cooker. Similarly, in case of a refrigerator, a booklet containing various directions about proper use and preservation of the refrigerator are giving.

    It Should Have Memorising Value:

    The advertisement copy should prepare in such a manner that a reader gets the everlasting impression about the product. It can successfully create by repeating the advertisement time and again. Repetition projects the permanent image of the product on the reader’s mind. Trademarks and brand names can use successfully for achieving this end. Dalda, Thums-up, Bournvita, and Surf have successfully achieved memorizing value. The names of these products are very common among people.

    It Should Be True:

    An advertisement copy should be truthful. It should not misrepresent and conceal the facts about the product. Rather it should lay down the limitations in the product. For example, a cloth merchant should specify the fading of color and shrinkage of yarn, if it is so. If these limitations are not brought to light, the buyer eventually comes to know about them after using the product. This will shatter the confidence of the buyer in the product and the very aim of the advertisement defeat.

    Types of a Good Advertisement Copy:

    As told earlier, the method or style of presentation is to do with how the message presents. It speaks of the different types of advertising copies to arrest, inform, impress and impel the reader; certain elements are to be present in a copy such as attention, suggestion, meaning, conviction, sentiment, education, and instinct.

    Good Advertisement Copy is classifying in several ways in their types. However, the most practical one is to classify into six types as:

    • Institutional.
    • Reason why?
    • Human interest.
    • Educational.
    • Suggestive and.
    • Expository.

    Now, explain each one;

    Institutional Copy:

    Institutional Copy neither sells nor the products neither the service but the name of the business house. The aim is to build the sound edifice of a reputation for the selling house. It seeks to build goodwill through its philosophy, objectives, and policies towards public so that the prospects remember it.

    Reason Why Copy:

    Reason Why Copy offers reasons as to why the customer expects to buy a product or service of the advertiser. It appeals straight to the intellect or the judgment of an individual than emotion or impulses. It attempts to prove the product superiority using evidence in the forms of performance test, records, testimonials, guarantees and the like.

    Human Interest Copy:

    Human Interest Copy appeals to the emotional and the senses than intellect and the judgment, sympathy, affection, love, fear, humor, curiosity and other emotional appeals are used to the sense of sight, touch, taste, smell, and hearing.

    It tells about the product about the people instead of conforming to the facts about the products. It takes several forms of which four are very significant namely, “fear”, “humorous”, “story” and “predicament” copy.

    Suggestive Copy:

    Suggestive Copy tries to suggest or pinpoint or convey the message of the advertiser directly or indirectly to the readers. Much is left to the reader to infer the ad message. Like a poem, suggestive language is freely used where the hidden meaning is to pick by the readers. Such a copy can be “direct” or “indirect” suggestive copy. The first tells directly about the products or services of the company while the latter does indirectly.

    Expository Copy:

    Expository Copy is the open copy that exposes, unlike suggestive copy. It is so open that the facts are given in a very simple and clear way so that there is no need for interpretation. The information given is so clear and concise that hardly it takes the reader’s brain. It makes possible effortless grasp and acts.

    Advertisement Copy is the soul of an advertisement. An advertisement copy is all the written or spoken matter in an advertisement expressed in words or sentences and figures designed to convey the desired message to the target consumers.

    In print media, an advertisement copy is made-up of head-line, sub-headlines, the body of the copy, illustration logo-type, slogan, and the brand name. Strictly speaking, the written content of an ad copy is the product of the collective efforts of copy-writers, artists and the layout-men.

    As well as, Copywriter and artist must collaborate to provide an advertisement though copywriting precedes or succeeds the artwork and the layout.

    The Benefits of A Good Advertisement Copy:

    Whether a copy is effective or ineffective is a matter of personal judgment. It is very difficult to judge as its evaluation is purely subjective and perceptive. However, a good or effective copy is one that succeeds in reaching the target consumers to create favorable benefits towards the product and the producers, impelling an action on the part of the consumer to buy.

    A good advertisement copy has the following Benefits:

    It is brief:

    Brevity is the soul of wit. Most readers are interested in shorter advertisements. Being brief is not dropping words or chopping sentences. It is the meticulous work of eliminating and substituting the words without jeopardizing the meaning. This cuts to the core, it is to the point to cover all.

    It is clear:

    A clear copy is one which is easily and quickly read and grasped by the readers. It is unambiguous and self- explaining. It is one that clicks fast. Clarity gives clue to interpretation. How a copy is interpreted is dependent on factors like local traditions habits, customs, and nationality. Clarity adjusts to these points.

    It is apt:

    A copy is apt that matches the needs and counts of the prospects. Writing an apt copy is the art of putting in the words that create a strong desire to possess the product where the product features or the qualities satisfy the consumers’ desire to possess. The Copywriter is to place himself in the position of a customer to make it apt. He is to use the most suitable USP.

    It is personal:

    A personal copy is specific where generality dismisses to do away with ambiguity. A personalized copy centers on the prospect. It presents something of interest to the prospect. It’s an individualized appeal copy. It is written from “prospect” to “product” rather than “product” to “prospect”. The copy has “your attitude”.

    It is honest:

    Credibility or believability of an advertisement message is decided by the extent of honesty. An ad to be good must be truthful. Misleading and miss-presented facts made in the copy only damage the reputation of selling the house. One of the surest ways of winning the hearts of the consumers is, to be honest. “Honesty”, here, implies “commercial honesty” and not the “judicial”.

    It is conforming:

    Every ad copy is to conform to standards, rules, and regulations acceptable to the advertising media and the laws of the land. Anywhere in the world, no copy is acceptable to any media that offends the morality, declines decency and ravages religious susceptibilities of people.

    That is why; we have not come across ads on cigarettes and alcohols on radio and television. No advertiser can violate the provisions of the Act of Names and Emblems, Drugs Acts of 1940, 50, and 54.

    A Good Advertisement Copy Features Types and Benefits - ilearnlot
    A Good Advertisement Copy: Features, Types, and Benefits #Pixabay.

  • Financial Services: Meaning, Features, and Scope

    Financial Services: Meaning, Features, and Scope

    Financial services can be defined as the products and services offered by institutions. The Concept of Financial Services is Explain – their Meaning, Definition, Functions, Characteristics or Features, and Scope. Like banks of various kinds for the facilitation of various financial transactions and other related activities in the world of finance like loans, insurance, credit cards, investment opportunities, and money management as well as providing information on the stock market and other issues like market trends.

    Explain and Learn, Financial Services: Meaning, Characteristics or Features, and Scope.

    Meaning of Financial Services is the economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including credit unions, banks, credit card companies, insurance companies, accountancy companies, consumer-finance companies, stock brokerages, investment funds, individual managers and some government-sponsored enterprises.

    Their companies are present in all economically developed geographic locations and tend to cluster in local, national, regional and international financial centers such as London, New York City, and Tokyo.

    Definition of Financial Services:

    Services and products provided to consumers; and businesses by financial institutions such as banks, insurance companies, brokerage firms, consumer finance companies, and investment companies all of which comprise the financial services industry.

    Facilities such as savings accounts, checking accounts, confirming, leasing, and money transfer, provided generally by banks, credit unions, and finance companies. Financial Services may simply define as services offered by financial and banking institutions like the loan, insurance, etc.

    The financial services concerns with the design and delivery of financial instruments and advisory services to individuals and businesses within the area of banking and related institutions, personal financial planning, investment, real assets, and insurance, etc.

    Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are banks, credit card companies, insurance companies, consumer finance companies, stock brokerages, investment funds, and some government-sponsored enterprises.

    Functions of Financial Services: 

    The following functions of financial services below are;

    • Facilitating transactions (exchange of goods and services) in the economy.
    • Mobilizing savings (for which the outlets would otherwise be much more limited).
    • Allocating capital funds (notably to finance productive investment).
    • Monitoring managers (so that the funds allocated will spend as envisaged).
    • Transforming risk (reducing it through aggregation and enabling it to carry by those more willing to bear it).

    Characteristics and Features of Financial Services:

    The following Characteristics and Features of Financial Services below are;

    1] Customer-Specific: 

    They are usually customer focused. The firms providing these services, study the needs of their customers in detail before deciding their financial strategy, giving due regard to costs, liquidity and maturity considerations. Financial services firms continuously remain in touch with their customers, so that they can design products that can cater to the specific needs of their customers.

    The providers of financial services constantly carry out market surveys so they can offer new products much ahead of need and impending legislation. Newer technologies are being used to introduce innovative, customer-friendly products and services which indicate that the concentration of the providers of financial services is on generating firm/customer-specific services.

    2] Intangibility: 

    In a highly competitive global environment, brand image is very crucial. Unless the financial institutions providing financial products; and services have a good image, enjoying the confidence of their clients, they may not be successful. Thus institutions have to focus on the quality and innovativeness of their services to build up their credibility.

    3] Concomitant: 

    Production of financial services and the supply of these services have to be concomitant. Both these functions i.e. production of new and innovative services and supplying of these services are to perform simultaneously.

    4] The tendency to Perish: 

    Unlike any other service, they do tend to perish and hence cannot be stored. They have to supply as required by the customers. Hence financial institutions have to ensure proper synchronization of demand and supply.

    5] People-Based Services: 

    Marketing of financial services has to be people-intensive and hence it’s subjected to the variability of performance or quality of service. The personnel in their organizations need to select based on their suitability and trained properly so that they can perform their activities efficiently and effectively.

    6] Market Dynamics: 

    The market dynamics depends to a great extent, on socioeconomic changes such as disposable income, the standard of living and educational changes related to the various classes of customers.

    Therefore, they have to constantly redefine and refine taking into consideration the market dynamics.

    The institutions providing their services, while evolving new services could be proactive in visualizing in advance what the market wants, or being reactive to the needs and wants of their customers.

    The Scope of Financial Services: 

    The following scope of Financial services, and cover a wide range of activities. They can broadly classify into two, namely:

    1] Traditional Activities: 

    Traditionally, the financial intermediaries have been rendering a wide range of services encompassing both capital and money market activities. They can group under two heads, viz.

    • Fund based activities and
    • Non-fund based activities.
    A. Fund based activities:

    The traditional services which come under fund based activities are the following:

    • Underwriting or investment in shares, debentures, bonds, etc. of new issues (primary market activities).
    • Dealing with secondary market activities.
    • Participating in money market instruments like commercial papers, certificates of deposits, treasury bills, discounting of bills, etc.
    • Involving in equipment leasing, hire purchase, venture capital, seed capital, etc.
    • Dealing in foreign exchange market activities. Non-fund based activities
    B. Non-fund based activities: 

    Financial intermediaries provide services-based on non-fund activities also. This can calls “fee-based” activity. Today customers, whether individual or corporate, not satisfy mere provisions of finance. They expect more from their companies. Hence a wide variety of services, are being provided under this head.

    They include:
    • Managing the capital issue i.e. management of pre-issue and post-issue activities relating to the capital issued by the SEBI guidelines and thus enabling the promoters to market their issue.
    • Making arrangements for the placement of capital and debt instruments with investment institutions.
    • The arrangement of funds from financial institutions for the client’s project cost or his working capital requirements.
    • Assisting in the process of getting all Government and other clearances.

    2] Modern Activities: 

    Besides the above traditional services, the financial intermediaries render innumerable services in recent times. Most of them are like the non-fund based activities. Because of the importance, these activities have been in brief under the head “New-financial-products-and-services”. However, some of the modern services provided by them are given in brief hereunder.

    1. Rendering project advisory services right from the preparation of the project report until the raising of funds for starting the project with necessary Government approvals.
    2. Planning for M&A and assisting with their smooth carry out.
    3. Guiding corporate customers in capital restructuring.
    4. Acting as trustees to the debenture holders.
    5. Recommending suitable changes in the management structure and management style to achieve better results.
    6. Structuring the financial collaborations/joint ventures by identifying suitable joint venture partners and preparing joint venture agreements.
    7. Rehabilitating and restructuring sick companies through an appropriate scheme of reconstruction and facilitating the implementation of the scheme.
    More things…
    1. Hedging of risks due to exchange rate risk, interest rate risk, economic risk, and political risk by using swaps and other derivative products.
    2. Managing in-portfolio of large Public Sector Corporations.
    3. Undertaking risk management services like insurance services, buy-back options, etc.
    4. Advising the clients on the questions of selecting the best source of funds taking into consideration the quantum of funds required, their cost, lending period, etc.
    5. Guiding the clients in the minimization of the cost of debt and the determination of the optimum debt-equity mix.
    6. Promoting credit rating agencies for rating companies that want to go public by the issue of the debt instrument.
    7. Undertaking services relating to the capital market, such as 1) Clearing services, 2) Registration and transfers, 3) Safe custody of securities, 4) Collection of income on securities.

    Financial Services Meaning Features and Scope
    Financial Services Meaning Features and Scope, Image credit from ilearnlot.com.