Tag: Difference

The term “difference” can have various definitions depending on the context in which it used. Here are some common definitions across different fields:

  1. General Definition:
    • The quality or condition of being unlike or dissimilar. This refers to a distinguishing characteristic or the way in which two or more things are not the same.
      • Example: “The main distinction between the two proposals is their cost.”
  2. Mathematics:
    • The result of subtracting one number from another. In this context, it is the amount by which one quantity is greater or smaller than another.
      • Example: “The distinction between 8 and 3 is 5.”
  3. Logic and Philosophy:
    • A property by which two concepts or objects are distinguished. It refers to a characteristic that sets two entities apart.
      • Example: “The distinction between humans and other animals is the capacity for abstract thought.”
  4. Sociology and Anthropology:
    • The various ways in which people or groups are distinct from one another, often considering aspects such as culture, ethnicity, gender, etc.
      • Example: “Understanding cultural distinctions is crucial in global business.”
  5. Set Theory (Mathematics):
    • Given two sets AA and BB, the difference (or set distinction) A−BA – B is the set of elements that are in AA but not in BB.
      • Example: “If A={1,2,3}A = \{1, 2, 3\} and B={2,3,4}B = \{2, 3, 4\}, then A−B={1}A – B = \{1\}.”
  6. Statistics:
    • The difference between two values, such as the mean difference between two groups in an experiment.
      • Example: “The distinction in average scores between the control and experimental groups was significant.”

Each definition highlights a specific aspect of how the term “difference” can applied in various fields of study or everyday language.

 

  • Centralized and Decentralized Purchasing: Meaning, Advantages, Disadvantages, and Difference

    Centralized and Decentralized Purchasing: Meaning, Advantages, Disadvantages, and Difference

    Learn the Concept of Centralized and Decentralized Purchasing; Organization of the purchase function will vary according to particular conditions and ideas. Purchases may centralized or decentralized. This article explains centralized and decentralized purchasing and their point in pdf or ppt – meaning, advantages, disadvantages, and difference. In centralized purchasing, there is a separate purchasing department entrusted with the task of making all purchases of all types of materials. The head of this department usually designates as Purchase Manager or Chief Buyer. Also, in decentralized purchasing, each branch or department makes its purchases.

    Here explains the Centralized and Decentralized Purchasing and their topics – Meaning, Advantages, Disadvantages, and Difference.

    If the branches of plants are located in different places, it may not be possible to centralize all purchases. What is the difference between centralized and decentralized purchasing? or What are the difference between centralised and decentralised purchasing? or What is the centralised and decentralised purchasing and supply chain functioning? In such cases, decentralized purchasing can better meet the situation by making purchases in the local market by plant or branch managers.

    Centralized Purchase refers to purchasing all the requirements under the central point of the organization. Likewise, Decentralized Purchase refers to the purchasing of requirements of each production center in an organization.

    Meaning of Centralized and Decentralized Purchasing:

    Centralization and Decentralization are the two types of structures, that can find in the organization, government, management, and even in purchasing. Centralization of authority means the power of planning and decision making are exclusively in the hands of top management. It alludes to the concentration of all the powers at the apex level. On the other hand, Decentralization refers to the dissemination of powers by the top management to the middle or low-level management. It is the delegation of authority, at all levels of management.

    What is Centralized purchasing?

    Under centralized purchasing purchases are made at one central point for the whole organization and material is issued to respective departments or jobs as and when needed. Also, Centralized purchasing is suitable in cases where the organization runs one plant. It will bring about economies of purchasing and buying in small lots will avoid.

    It ensures consistent buying policies in the future and purchasing powers are concentrated in the hands of one person, the in-charge of the purchasing department. This type of purchasing is very helpful in the quick implementation of decisions regarding purchasing. It also ensures bulk buying which ensures favorable prices. The staff requirements under this type are limited and specialists in buying may appoint.

    Centralized purchasing is further helpful to the vendors since their selling costs are reduced as they can easily coordinate and supply goods to a single buyer instead of a large number of buyers. The most important benefit which can draw from centralized buying is that it keeps the inventories in control and checks the wasteful investment in materials and equipment etc. thereby ensuring the overall economy in purchasing.

    What is Decentralized purchasing?

    Decentralized purchasing is just the reverse of centralized purchasing. This is suitable for organizations running more than one plant. Under this type, each plant has its purchasing agents. In other words, every department makes its purchases. This also calls localized purchasing. Also, Decentralized purchasing is quite flexible and can quickly adjust following the requirements of a particular plant.

    More attention can pay by the departmental head to buying problems as he will be carrying the limited number of activities in his department and he can hold responsible for the purchase of goods and the overall performance of the plant. The serious drawback which emerges from this type is the lack of uniformity in purchasing procedure in the organization.

    At the same time, uniformity in prices cannot ensure and every departmental head may not possess the caliber of an expert buyer. This method also poses the problems of coordination among various departments of the organization and usually leads to unplanned buying. In comparison to centralized buying, this method involves a lesser economy in purchasing.

    Advantages and Disadvantages of Centralized and Decentralized Purchasing:

    The following advantages and disadvantages of centralized and decentralized purchasing below are – PDF;

    Advantages of Centralised Purchasing:

    A centralized purchasing system generally prefers because of the following advantages of it;

    • Specialized and expert purchasing staff can concentrate on one department.
    • Better layout of storage space.
    • Utilization of high technical skills.
    • A firm policy can initiate which may result in favorable terms of purchase, e.g., higher trade discount, easy terms of payment, etc.
    • Standardization of quality of raw material facilitates.
    • Minimum finance required.
    • Better supervision of materials usage, and.
    • Also, better control over purchasing is possible because reckless buying by various individuals avoid. Keeping all records of purchase transactions in one place also helps in control.
    Disadvantages of Centralised Purchasing:

    A centralized purchasing system generally refuses because of the following disadvantages of it;

    • The high cost of internal transport.
    • The creation and maintenance of a special purchasing department lead to higher administration costs which small concerns may not be in a position to afford.
    • Non-availability of materials for production in time.
    • Greater risk of obsolescence, and.
    • Centralized purchasing is not suitable for plants or branches located at different places that are far apart.
    Advantages of Decentralized Purchasing:

    A Decentralized purchasing system generally prefers because of the following advantages of it;

    • Materials can purchase by each department locally as and when required.
    • Timely availability of materials.
    • Materials are purchasing in the right quantity of the right quality for each department easily.
    • No heavy investment requires initially.
    • Less cost of internal transport.
    • Lower chance of obsolescence.
    • Purchase orders can place quickly, and.
    • The replacement of defective materials takes little time.
    Disadvantages of Decentralized Purchasing:

    A Decentralized purchasing system generally refuses because of the following disadvantages of it;

    • Organization losses the benefit of a bulk purchase.
    • Poor layout of space.
    • More finance requires.
    • Duplicate purchase of materials.
    • Specialized knowledge may be lacking in purchasing staff.
    • There is a chance of over and under-purchasing of materials.
    • Fewer chances of effective control of materials.
    • Less technical skill obtains.
    • More clerical work, and.
    • Lack of proper co-operation and co-ordination among various departments.
    Centralized and Decentralized Purchasing Meaning Advantages Disadvantages and Difference
    Centralized and Decentralized Purchasing: Meaning, Advantages, Disadvantages, and Difference.

    Differences Between Centralized and Decentralized Purchasing:

    Learn and understand the points given below are noteworthy. So far as the difference between centralized and decentralized purchasing concerns;

    • Control on buying exercise effectively, Effective control is not possible.
    • The economy in large scale purchase is possible, Large scale benefits are not available.
    • Skills of the purchasing officer are high, Purchasing skill is available from the purchaser or purchasing officer.
    • Purchasing specialization obtains, Purchasing specialization not obtains.
    • Uniformity in the purchase follows, There is a lot of difference in the purchase.
    • Standard materials are purchased, Quality of the material is questionable.
    • There is a misunderstanding between the production center and purchase department, There is no such misunderstanding since the concerned department purchases the materials.

    The comparative advantage and disadvantages of the two systems are as below:

    Meaning:

    Centralized is the retention of powers and authority concerning planning and decisions, with the top management, knows as Centralization. However, decentralized is the dissemination of authority, responsibility, and accountability to the various management levels know as Decentralization.

    Terms of Purchase:

    Centralized is Due to the large scale order, better terms of purchase may be available, but Decentralized in Less favorable terms may be available.

    Nature:

    Centralized is usually involves two people; a manager and his subordinate. But decentralized involves the entire organization; from the top management to individual departments.

    Advantage:

    Centralized is proper coordination and Leadership, but Decentralized is sharing of burden and responsibility.

    Control:

    Centralized is controlling by the manager or the delegator controls it. But decentralized control rests with the respective departments or classes.

    Need:

    Centralized need all organizations to need delegation to get things done, Delegating authority is essential to assign responsibility. But decentralized is an optional mode of working, Organizations can also work in a centralized manner.

    Responsibility:

    Centralized Responsibility is the delegator can delegate authority but the responsibility remains with him, the delegator is accountable for the task. However, decentralized is the head of the departments responsible for the activities performed under him, Therefore, responsibility is fixed at the department-level.

    Involves:

    Centralized is involves in Systematic and consistent reservation of authority. Similarly, decentralized involves Systematic dispersal of authority.

  • Difference between Traditional and Modern Concept in Business

    Difference between Traditional and Modern Concept in Business

    Difference between Traditional and Modern Concept of Business: Business is concerned with producing and distributing goods and services to make a profit. These are two Concepts: The traditional concept of business and the Modern concept of business. A regular process of exchange of goods and services that involves risk and also uncertainty. Business is an economic activity aimed at meeting needs through the supply of goods and services to customers and their satisfaction.

    What is the Difference between Traditional and Modern Concepts in Business?

    They are two types:

    1] Traditional Concept:

    The traditional concept states that the business aims to make a profit through the production and marketing of products. Also, Products can be of various types. Furthermore, The traditional concept states that the objective of the business is to earn profit through the production and marketing of products. For example, the main objective of the business of material goods, services, ideas, information, etc. is to get maximum profit according to the traditional concept.

    Meaning of Traditional Concept:

    Business is the production and distribution of products for personal gain. The profit-oriented concept stands also known as the traditional concept of business. Any human activity directed towards the acquisition of wealth or earning profit through the production or exchange of goods was treated to be a business.

    2] Modern concept:

    Consumer satisfaction is the focal point of the modern concept of business. The modern concept states that a business earns profit through customer satisfaction. Business without consumers is not business. Also, It develops long-term relations with customers. The business should earn profit with social responsibility. It should care about the welfare of society and consumers. it must work within the law. Furthermore, Profits can exist made by maintaining social accountability. It attempts to incorporate every aspect of human civilization. It sees modern business as a socio-economic institution that is always responsible to society.

    Meaning of Modern Concept:

    The business organization should determine the needs of the customers and also deliver them the desired products. The business organization began to think that businesses should earn profits through the service and also the satisfaction of the customers. Do you like to play online casino games?

    Traditional and Modern Concept – Table:

    Difference between Traditional and Modern Concept in Business
    Difference between Traditional and Modern Concept in Business.
  • Difference Between an Intrapreneur and Entrepreneur

    Difference Between an Intrapreneur and Entrepreneur

    Intrapreneur and Entrepreneur: An entrepreneur takes the substantial risk of being the owner and operator of a business with expectations of financial profit and other rewards that the business may generate. The essential distinction between an Intrapreneur and Entrepreneur [In Hindi]; Intrapreneurs share similar characteristics as entrepreneurs, for example, conviction, enthusiasm, and understanding. Unexpectedly, an intrapreneur is an individual utilized by an association for compensation. Which depends on the monetary accomplishment of the unit he is liable for.

    Learn, Understanding, What is the Difference Between an Intrapreneur and Entrepreneur?

    As the intrapreneur keeps on communicating his thoughts overwhelmingly. It will uncover the hole between the way of thinking of the association and the representative. On the off chance that the association upholds him in seeking after his thoughts, he succeeds. If not, he is probably going to leave the association and set up his own business.

    Entrepreneurship includes advancement, the capacity to face the challenge, and inventiveness. An entrepreneur will have the option to take a gander at things in novel manners. He will have the ability to face the determined challenge and to acknowledge disappointment as a learning point. An intrapreneur thinks like an entrepreneur paying special mind to circumstances, which benefit the association.

    Intrapreneurship is a novel method of causing associations more productive where innovative representatives to engage entrepreneurial contemplations. It is in light of a legitimate concern for an association to support intrapreneurs. Intrapreneurship is a critical technique for organizations to rethink themselves and improve execution.

    In an ongoing report.

    Scientists contrasted the components related to entrepreneurial and intrapreneurial movement. The investigation found that among the 32,000 subjects who partake in it, five percent occupied with the underlying phases of a business fire up, either all alone or inside an association.

    The examination additionally found that human resources, for example, training and experience are interfacing more with entrepreneurship than with intrapreneurship. Another perception was that intrapreneurial new companies were slanted to focus more on business-to-business items while entrepreneurial new businesses were slanted towards buyer deals.

    Another significant factor that prompted the decision among entrepreneurship and intrapreneurship was age. The investigation found that individuals who dispatched their own organizations were in their 30s and 40s. Individuals from more established and more youthful age bunches were hazarding loath or felt they have no chances, which makes them the ideal candidates if an association is watching out for workers with groundbreaking thoughts that can seek after.

    Entrepreneurship requests to individuals who have common qualities that discover new businesses exciting their advantage. Intrapreneurs have all the earmarks of being the individuals who by and large might not want to get trapped in new companies however are enticed to do as such for reasons unknown. Supervisors would do well to take representatives who don’t seem entrepreneurial however can end up being acceptable intrapreneurial decisions.

    The distinction in Definition of Entrepreneur and Intrapreneur:

    As both entrepreneur and intrapreneur share comparable characteristics like conviction, inventiveness, energy, and knowledge, the two uses reciprocally. In any case, the two are unique, as an entrepreneur is an individual who takes a lot of danger to possess and work the business, expecting to acquire returns and rewards, from that business. He is the main individual who imagines new chances, items, strategies, and business lines and arranges all the exercises to make them genuine.

    Actually, an intrapreneur is a worker of the association who is pay compensation as indicated by the achievement of the specialty unit, for which he/she is employing or capable.

    The essential contrast between an entrepreneur and intrapreneur is that the previous alludes to an individual who goes into business with a novel thought or idea, the last speak to a representative who advances development inside the restrictions of the association. In this article passage, we are furnishing you with some other significant purposes of qualification between the two.

    Definition of Entrepreneur:

    An entrepreneur is a person who imagines beginning another endeavor, take a wide range of dangers, not exclusively to place the item or administration into the real world yet additionally to make it an incredibly demanding one. He is somebody who:

    • Starts and enhances another idea,
    • Perceives and uses the chance,
    • Organizes and facilitates assets, for example, man, material, machine, and capital,
    • Take reasonable activities,
    • Faces dangers and vulnerabilities,
    • Sets up a new business,
    • Enhances the item or administration,
    • Takes choices to make the item or administration a productive one,
    • Is answerable for the benefits or misfortunes of the organization.

    Entrepreneurs are consistently the market chief paying little mind to the number of contenders since they carry a moderately new idea to the market and present change.

    Definition of Intrapreneur:

    An intrapreneur is only an entrepreneur inside the limits of the association. An intrapreneur is a representative of a huge association, who has the authority of starting imagination and advancement in the organization’s items, administrations, and activities, upgrading the cycles, work processes, and frameworks to change them into a fruitful endeavor of the undertaking.

    The intrapreneurs have confidence in change and don’t fear disappointment, they find groundbreaking thoughts, search for such open doors that can profit the entire association faces challenges, elevates development to improve the exhibition and benefit, assets are giving by the association. The occupation of an intrapreneur is very testing; henceforth they are acknowledging and awards by the association appropriately.

    From the most recent couple of years, it has become a pattern that enormous companies select intrapreneurs inside the association, to bring operational greatness and increase the upper hand.

    Primary key contrasts among Entrepreneur and Intrapreneur:

    An entrepreneur faces a significant challenge in being the proprietor and administrator of a business with desires for the budgetary benefit and different prizes that the business may create. In actuality, an intrapreneur an individual utilizes an association for compensation. Which depends on the monetary achievement of the unit he is liable for.

    Intrapreneurs share similar qualities as entrepreneurs, for example, conviction, enthusiasm, and understanding. As the intrapreneur keeps on communicating his thoughts energetically. It will uncover the hole between the way of thinking of the association and the worker. If the association underpins him in seeking after his thoughts, he succeeds. If not, he is probably going to leave the association and set up his own business.

    Central matters;

    The significant distinctive focuses among entrepreneur and intrapreneur, give in the accompanying focuses:

    • An entrepreneur characterizes as an individual who builds up another business with a creative thought or idea. A worker of the association who is approving to attempt developments in item, administration, measure, framework, and so on knows as Intrapreneur.
    • The entrepreneur is instinctive, though an intrapreneur is remedial.
    • An entrepreneur utilizes his assets, for example, man, machine, cash, and so on while on account of an intrapreneur the assets are promptly accessible, as they are giving to him by the organization.
    • An entrepreneur raises capital himself. Alternately, an intrapreneur doesn’t have to raise finances himself; rather it gives by the organization.
    • An entrepreneur works in a recently-settled organization. Then again, an intrapreneur is a piece of a current association.
    • An entrepreneur is his chief, so he is free to make choices. Rather than intrapreneur, who works for the association, he can’t make free choices.
    • This is one of the notable highlights of an entrepreneur; he is fit for bearing the dangers and vulnerabilities of the business. Dissimilar to intrapreneur, in which the organization bears all the dangers.
    • The entrepreneur endeavors to enter the market effectively and make a spot thusly. As opposed to Intrapreneur, who works for association-wide change to bring development, innovativeness, and profitability.

    What is the Difference Between an Intrapreneur and Entrepreneur
    What is the Difference Between an Intrapreneur and Entrepreneur?

  • Difference Between Recruitment and Selection

    Difference Between Recruitment and Selection

    The primary difference between Recruitment and Selection; Recruitment is the process of identifying whether the organization needs to appoint someone whose post the applications have come in the organization. Following selection, the procedures involved in selecting applicants from a suitable candidate to fill a position. Training involves procedures to ensure that the job holders have the right skills, knowledge, and attitude necessary to help the organization achieve its objectives. Hiring individuals to fill special positions within a business can be done internally by recruitment within the firm, or by hiring outsiders.

    What is the difference between Recruitment and Selection? Explaining!

    We know that recruitment and selection are part of the same phases of employment. One of the important roles of HRM is to select the appropriate staff and appoint the right professionals or staff to meet the recruitment needs and provide training to the best employees and ensure that these selected candidates can deliver better performance. So that we can deal with the issues of and follow the rules of various systems. Recruitment is a fundamental job of human resource management. Fundamentally, recruitment is the process of attracting, assessing, and hiring employees for companies. Once the HRM requirements are understood, the next stage of HRM is to employ workers.

    Each one is complete the other but there are a few points difference between them:

    • Recruitment is the first part of the employment phase. Which is looking and collecting more than one applicant, the second part of the employment phase is selection. Which starts to look for applicants and evaluate them.
    • The goal of Recruitment is to create differentiation and creative applicants to give the organization more options. The main goal for selection is to choose the best one to fill the position.
    • Since recruitment searching for more employees to apply for a position. It considers as a positive process, and the negative process will be in selection since it reducing the applicants to one for each position.
    • The source of human resources is the most important part of recruitment, but in the selection, the most important part is choosing the person via interviews or through tests.
    • There no contract between the applicant and organization in the recruitment process, but there is a signing of a contract between an applicant and an organization.

    Different by Meaning:

    Recruitment (hiring) is a core function of human resource management. It is the first step of an appointment. Recruitment refers to the overall process of attracting, shortlisting, selecting, and appointing suitable candidates for jobs within an organization. Recruitment can also refer to processes involved in choosing individuals for unpaid positions. Such as voluntary roles or unpaid trainee roles.

    Managers, human resource generalists, and recruitment specialists may task with carrying out recruitment. But, in some cases, public-sector employment agencies, commercial recruitment agencies, or specialist search consultancies are used to undertake parts of the process. Internet-based technologies to support all aspects of recruitment have become widespread.

    Selection means the action or fact of carefully choosing someone or something as being the best or most suitable. A process in which environmental or genetic influences determine. Which types of organisms thrive better than others, regarded as a factor in evolution.

    Difference Between Recruitment and Selection
    Difference Between Recruitment and Selection

    Different by Definitions:

    The following definitions below are;

    Recruitment as,

    “The process of finding and hiring the best-qualified candidate for a job opening, in a timely and cost-effective manner. The recruitment process includes analyzing the requirements of a job, attracting employees to that job. The screening and selecting applicants, hiring, and integrating the new employee to the organization.”

    Selection as

    “A consumer’s choice of a product or service. As well as, the available products or services that a company offers a consumer. A business with a wide array of available choices is considered to have a wide selection.”

    Difference Between Recruitment and Selection - Table
    Difference Between Recruitment and Selection – Table

    Note: You can be read this article in Hindi; Difference Between Recruitment and Selection.

  • Microeconomics and macroeconomics in what kind of difference between?

    Microeconomics and macroeconomics in what kind of difference between?

    Macroeconomics and microeconomics, and their wide array of underlying concepts have been the subject of a lot of writings. The field of study is vast; so here is a summary of what each covers. The primary difference between Microeconomics and Macroeconomics; Microeconomics is generally the study of individuals and business decisions, while macroeconomics looks at higher up country and government decisions.

    The difference between Microeconomics and Macroeconomics by Definition, and Explanation!

    When we study economics as a whole, we must consider the decisions of individual economic actors. For example, to understand what determines total consumption spending, we must think about a family decision as to how much to spend today and how much to save for the future.

    Since aggregate variables are simply the sum of the variables describing many individual decisions, macroeconomics is inevitably founded in microeconomics. The difference between microeconomics and macroeconomics is artificial since aggregates are deriving from the sums of individual figures.

    Yet the difference justifies because what is true for an individual in isolation may not be true for the economy as a whole. For example, an individual may become richer by saving than spending.

    What does mean Microeconomics?

    Microeconomics is the study of decisions that people and businesses make regarding the allocation of resources and prices of goods and services. This means also taking into account taxes and regulations created by governments. Microeconomics focuses on supply and demand and other forces that determine the price levels seen in the economy.

    For example, microeconomics would look at how a specific company could maximize its production and capacity, so that it could lower prices and better compete in its industry. Find out more about microeconomics in How does government policy impact microeconomics?  Microeconomics’ rules flow from a set of compatible laws and theorems, rather than beginning with empirical study.

    What does mean Macroeconomics?

    Macroeconomics, on the other hand, is the field of economics that studies the behavior of the economy as a whole, not just of specific companies, but entire industries and economies. It looks at economy-wide phenomena, such as Gross Domestic Product (GDP), and how it affects by changes in unemployment, national income, rate of growth, and price levels.

    For example, macroeconomics would look at how an increase/decrease in net exports would affect a nation’s capital account or how GDP would affect the unemployment rate.

    John Maynard Keynes is often credited with founding macroeconomics when he initiated the use of monetary aggregates to study broad phenomena. Some economists reject his theory and many of those who use it disagree on how to interpret it.

    Introduction to Micro and Macro:

    While these two studies of economics appear to be different, they are interdependent and complement one another since there are many overlapping issues between the two fields. For example, increased inflation (macro effect) would cause the price of raw materials to increase for companies and in turn affect the end product’s price charged to the public.

    Microeconomics takes what refers to as a bottom-up approach to analyzing the economy while macroeconomics takes a top-down approach. In other words, microeconomics tries to understand human choices and resource allocation, while macroeconomics tries to answer such questions as “What should the rate of inflation be?” or “What stimulates economic growth?”

    Regardless, both micro and macro-economics provide fundamental tools for any finance professional and should study together to fully understand how companies operate and earn revenues, and thus, how an entire economy manages and sustain.

    Definition of Microeconomics and Macroeconomics:

    Microeconomics is a Greek word which means small,

    “Microeconomics is the study of specific individual units; particular firms, particular households, individual prices, wages, individual industries particular commodities. The microeconomic theory or price theory thus is the study of individual parts of the economy.”

    It is an economic theory in a microscope. For instance, in the microeconomic analysis, we study the demand of an individual consumer for a good and from there we go to derive the market demand for a good. Similarly, in microeconomic theory, we study the behavior of individual firms the fixation of price output.

    The term macro derives from the Greek word “UAKPO” which means large. Macroeconomics, the other half of economics, is the study of the behavior of the economy as a whole.

    In other words:

    “Macroeconomics deals with total or big aggregates such as national income, output and employment, total consumption, aggregate saving, and aggregate investment and the general level of prices.”

    Explanation of the difference between Microeconomics and Macroeconomics:

    The following difference below are;

    Adam Smith is usually considering the founder of microeconomics, the branch of economics. Which today concerns, the behavior of individual entities as markets, firms, and households. In The Wealth of Nations, Smith considered how individual prices are set, studied the determination of prices of land, labor, and capital. And, inquired into the strengths and weaknesses of the market mechanism.

    Most important, he identified the remarkable efficiency properties of markets and saw that economic benefit comes from the self-interested actions of individuals. All these are still important issues today. And, while the study of microeconomics has surely advanced greatly since Smith’s day, he is still cited by politicians and economists alike.

    The other major branch of our subject is macroeconomics, which is concerning with the overall performance of the economy. Macroeconomics did not even exist in its modern form until 1935 when John Maynard Keynes published his revolutionary book General Theory of Employment, Interest, and Money. At the time, England and the United States were still stuck in the Great Depression of the 1930s, and over one-quarter of the American labor force was unemployed.

    Extra knowledge;

    In his new theory, Keynes developed an analysis of what causes unemployment and economic downturns. How investment and consumption are determining? How central banks manage money and interest rates? and, Why some nations thrive while others stagnate? Keynes also argues that the government had an important role in smoothing out the ups and downs of business cycles.

    Although macroeconomics has progressed far since his first insights. The issues addressed by Keynes still define the study of macroeconomics today. The two branches – microeconomics and macroeconomics – covers to form modern economics. At one time the boundary between the two areas was quite distinct; more recently, the two sub-disciplines have merged as economists have to apply the tools of microeconomics to such topics as unemployment and inflation.

    Microeconomics and macroeconomics in what kind of difference between
    Microeconomics and macroeconomics in what kind of difference between?

    Differences between them:

    The main differences between Microeconomics and Macroeconomics are as under:

    Under Microeconomics:

    • It is the study of individual economic units of an economy.
    • It deals with Individual Income, Individual prices, Individual output, etc.
    • Its central problem is price determination and allocation of resources.
    • Its main tools are the demand and supply of a particular commodity/factor.
    • It helps to solve the central problem of ‘what, how and for whom’ to produce. In the economy
    • It discusses how the equilibrium of a consumer, a producer, or an Industry attains.

    Under Macroeconomics:

    • It is the study of the economy as a whole and its aggregates.
    • It deals with aggregates like national income, general price level, national output, etc.
    • Its central problem is the determination of the level of income and employment.
    • Its main tools are aggregate demand and aggregate supply of the economy as a whole.
    • It helps to solve the central problem of the full employment of resources in the economy.
    • It concerns the determination of the equilibrium level of income and employment of the economy.

    Note: You’ll study the Difference between Microeconomics and Macroeconomics in Hindi.

  • Difference between Positive and Normative Economics

    Difference between Positive and Normative Economics

    Positive and Normative Economics: Economics is often divided into two major aspects – positive and normative. Positive economics explains how the world works. The primary difference between Positive and Normative Economics; con­cerns with what is, rather than with what ought to be. Normative economics is concerning what ought to be rather than what is. It proposes solutions to society’s economic problems. That there is unemployment in India is a problem of positive economics. What measures can adopt to solve the problem is a problem of normative economics. Normative economics also knows as welfare Eco­nomics.

    How to Explain the difference between Positive and Normative Economics?

    The distinction between positive economics and normative economics may seem simple, but it is not always easy to differentiate between the two. Positive economics is objective and fact-based, while normative economics is subjective and value-based. Positive economic statements must be able to test and prove or disprove. Normative economic statements are opinion based, so they cannot prove or disprove. Many widely-accepted statements that people hold as fact are value-based.

    For example, the statement, “government should provide basic healthcare to all citizens” is a normative economic statement. There is no way to prove whether the government “should” provide healthcare; this statement is based on opinions about the role of government in individuals’ lives, the importance of healthcare, and who should pay for it.

    The statement, “government-provided healthcare increases public expenditures” is a positive economic statement, as it can prove or disprove by examining healthcare spending data in countries like Canada and Britain, where the government provides healthcare.

    Disagreements over public policies typically revolve around normative economic statements, and the disagreements persist because neither side can prove that it is correct or that its opponent is incorrect. A clear understanding of the difference between positive and normative economics should lead to better policy-making if policies are made based on facts (positive economics), not opinions (normative economics). Nonetheless, numerous policies on issues ranging from international trade to welfare are at least partially based on normative economics.

    Positive Science or Normative Science!

    Positive science implies that science which establishes the relationship between cause and Ef­fect. In other words, it scientifically analyses a problem and examines the causes of a problem. For example, if prices have gone up, why have they gone up.

    In short, problems are examining based on facts. On the other hand, normative science relates to normative aspects of a problem i.e., what ought to be. Under normative science, conclusions and results are not based on facts, rather they are based on different considerations like social, cultural, political, religious, and son are is subjective, an expression of opinions.

    In short, positive science concerns with “how and why” and normative science with ‘what ought to be’. The distinction between the two can explain with the help of an example of an increase in the rate of interest. Under positive science it would look into why the interest rate has gone up and how can it reduce whereas under normative science it would see as to whether this increase is good or bad. Three statements about positive and normative science each are given below:

    Positive Science:

    The following topic below are;

    • The main cause of price-rise in India is the increase in the money supply.
    • It bases on a set of collected facts.
    • Prices and inequalities of income level in an economy.
    • Production of food grains in India has increased mainly because of an increase in irrigation facilities and the consumption of chemical fertilizers.
    • The rate of population growth has been very high partly because of the high birth rate and partly because of the decline in the death rate.
    • Studies with what is or how the economic problem originally solves.
    • It can verify with the original data.
    • It aims to provide an original description of economic activity.
    Normative Science:

    The following topic below are;

    • Inflation is better than deflation.
    • It bases on the opinion of the individual.
    • The government should generate more employment opportunities.
    • More production of luxury goods is not good for a poor country like India.
    • Inequalities in the distribution of wealth and incomes should reduce.
    • Studies with what ought or how the economic problem should solve.
    • It cannot verify with the original data.
    • It aims to determine the principles.

    Difference between Positive and Normative Economics
    Difference between Positive and Normative Economics

    Positive and Normative Economic Statements:

    The following Statements topic below are;

    Positive statements: Positive statements are objective statements that can test, amend, or reject by referring to the available evidence. Positive economics deals with objective explanations and the testing and rejection of theories. For example; A fall in incomes will lead to a rise in demand for own-label supermarket foods. And, If the government raises the tax on beer, this will lead to a fall in profits of the brewers.

    Normative Statements: A value judgment is a subjective statement of opinion rather than a fact that can be tested by looking at the available evidence. Normative statements are subjective statements – i.e. they carry value judgments. For example; Pollution is the most serious economic problem. Unemployment is more harmful than inflation, and. The government is right to introduce a ban on smoking in public places.

  • Need and Benefits of Competitive Intelligence with Objectives and difference

    Need and Benefits of Competitive Intelligence with Objectives and difference

    What does Competitive Intelligence (CI) mean? Benefits of Competitive Intelligence; Competitive intelligence (CI) is the action of defining, gathering, analyzing, and distributing intelligence about products, customers, competitors, and any aspect of the environment needed to support executives and managers in strategic decision making for an organization. Need and Benefits of Competitive Intelligence with Objectives and difference. The growing competition in the business industry has made it necessary for any company to stay in competition or have a competitive advantage over its competitors, adequate and relevant information about the competitors need to receive or know at the right time in other to make a good strategic business decision.

    Know and Understand the Explanation of Competitive Intelligence.

    Definition by business Jargon’s: In business parlance, competitive intelligence can understand as the process of identifying, gathering, evaluating and disseminating, information concerning competitor’s strengths and weaknesses, products, and customers, which a firm requires for strategic decision making. In other words, it is a legal and ethical practice that helps in improving the firm’s competitive ability and capacity.

    Discussion of the topic “Competitive Intelligence” first Meaning of Competitive Intelligence, Definition, Why need be Competitive Intelligence? then Benefits. We can also discuss the Objectives with the Difference between Competitive Intelligence and Market Intelligence.

    Competitive intelligence or otherwise called as early signal analysis encompasses information relating to competitor’s plans, products, next moves, and actions. Such intelligence influences the organization’s plans and strategies. Add to that, it helps in prior ascertainment of opportunities and threats in the marketplace, before they are apparent.

    Competitive intelligence [Hindi] defines as a systematic process that transforms random bits and pieces of data into strategic knowledge. This information comprises about competitors, customers, technological, environmental, product, and market in. others to make a good strategic decision.

    Competitive intelligence is described as those activities a company undertake in determining; and, understanding its industry as well as identifying and understanding the competitors, also determine and understand their weaknesses and strength and anticipate their next moves.

    This definition of competitive intelligence tends to identify/determine, understand, and anticipate industry and competitors. Furthermore, competitive intelligence is a process of monitoring the competitive environment, to provide actionable intelligence that will enhance a company’s competitive advantage over its competitors.

    Why need be Competitive Intelligence?

    In today’s changing business environment, organizations need to implement competitive intelligence because:

    Business activity is increasing rapidly:

    If customers expect businesses to deliver goods as quickly as possible as well as communicate with them with a faster means of communication. To meet these requirements organizations need efficient management and CI.

    Needed Business Information overload:

    Organizations are privileged to collect a lot of information, but organizations do not have the idea of which information is relevant. Competitive intelligence will assist in analyzing the collected information, filter it, learn what is relevant, and use it to benefit various business decisions and strategies.

    Global competition Increase by new competitors:

    Companies are now moving across their original borders into another country. For example, financial firms like HSBC can be found in several countries in which they constitute a threat and complete with the home companies.

    The existing competitor is becoming more aggressive:

    Competitive intelligence will help organizations forecast competitor’s actions and allow organizations to be proactive because all companies want to acquire more market share and customers.

    Political changes affect anybody quickly and forcefully:

    Deregulation of business such as retail, insurance, and aviation industry create more threat to organizations in other sectors because their sector can also be deregulated; but implementing CI the organizations will keep informed about the proposed political change that might affect the business.

    Technology is going to change by Rapidly:

    As organizations can all observe that technology is changing rapidly to the extent that something new happens in the computer industry like breakthroughs which tend to create new opportunities.

    For example, the iPhone held the highest market share as well as the highest customers but when the Samsung Android and Redmi came into the picture and video, iPhone’s market share and customer base starts to decline. However, if organizations implement competitive intelligence, it will keep track of technological changes in the industry and other industry that is important to an organizations survival.

    Important Benefits of Competitive Intelligence:

    A formal Benefits of competitive intelligence program can do the following;

    Change in the marketplace:

    Companies that observe the marketplace tend not to caught unawares, but companies that fail to observe the market place tend to pay a high price for their mistake.

    The action of competitors:

    Competitive intelligence activity will create an opportunity to understand what competitors are trying to do in other to outsmart their competitors.

    Discover new or potential competitors from Business:

    Competitive intelligence activity will provide an insight into the new segment or market a competitor is entering.

    Learn from the success and failure of other Competitors:

    Competitive intelligence activity will investigate if the customer is happy with competitors and use their findings as a yardstick for development.

    Know how to Increase the range and quality of acquisition target?

    Competitive intelligence activity will create insight on target company for acquisition because not all company that posses as a threat are worth acquiring. After all, some companies create deception.

    Know about new technology, products, and processes that affect business:

    Competitive intelligence activity tends to reveal if the project being embarked upon by their company is worth investing in or needs additional resources or the project needs to be shut down because some projects don’t worth any extra expense or resource.

    Know about political, legislative, or regulatory changes that can affect business:

    The competitive intelligence activity will help analyze the impact of a law or regulation proposed by the government because this government law affects everybody and forces all to change.

    Startup new business:

    Competitive intelligence activity will help organizations decide if they should enter a new business by observing the success and failure of the market competitor.

    Look at own business practice with an open mind:

    Competitive intelligence activity will expose organizations to new ideas and concepts because their method of business might be stale and outmoded. Also, it will help organizations to be externally focused.

    CI management tool is Help for implements:

    Competitive intelligence activity will provide organizations with relevant information that will assist organizations in re-engineering as well as enhancing customer satisfaction.

    Need and Benefits of Competitive Intelligence with Objectives and difference
    Need and Benefits of Competitive Intelligence with Objectives and difference, #Pixabay.

    Objectives of Competitive Intelligence:

    The following objectives below are;

    • To provide an advanced warning of risks and opportunities, such as mergers, takeovers, alliances, new products, and services.
    • To make sure that strategic planning decisions rely on relevant and up-to-date competitive intelligence.
    • Competitive Intelligence intends to make the firm more competitive concerning the environment in which the firm operates, i.e. competitors, customers, distributors, and other stakeholders.
    • To ensure that an organization can adapt and respond to the changing business environment.
    • To provide a periodic and systematic audit of the firm’s competitiveness; which provides an unbiased evaluation of the firm’s actual position, concerning the environment.

    Difference between Competitive Intelligence and Market Intelligence:

    These differences from infinite research; Often, we come across several terms in business that sound more or less the same; but they turn out to be completely different. Before getting into the differences, let us cut to the chase and get to the basic point of similarity between competitive intelligence and market intelligence. Both these types of intelligence help companies to gain a better foothold in the market and require a considerable amount of accurate research to succeed.

    So, what is the key difference between the two? Here goes – Competitive intelligence is the strategic study used by companies to understand their industry and track the moves of their rivals. On the other hand, market intelligence is a broader concept; which includes the research conducted by a company on the external market it wishes to enter, its competitors, and customers. By differences, you’ll understand the Benefits of Competitive Intelligence.

    What does Competitive Intelligence (CI) mean Introduction Meaning and Definition
    What does Competitive Intelligence (CI) mean? Introduction, Meaning, and Definition with PPT. #Pixabay.

    What meant by Competitive intelligence?

    DescriptionCompetitive intelligence is the action of defining, gathering, analyzing, and distributing intelligence about products, customers, competitors, and any aspect of the environment needed to support executives and managers in strategic decision making for an organization.

    What meant by Market intelligence?

    Description Market intelligence is the information relevant to a company’s markets, gathered and analyzed specifically for accurate; and, confident decision-making in determining strategy in areas such as market opportunity, market penetration strategy, and market development.

    But that’s not all; there are other factors as well that differentiates the two, curious to know what they are?

    The focus of the Data Collected:

    As discussed, market intelligence gives a larger picture to companies about the market and customers. This means that it is more client-focused, which helps companies to understand their customers and the general consumer behavior better. Competitive intelligence is more business-focused as it comprises data about a company’s competitors and their business strategies.

    Digging Deeper into the Data:

    Customers are in the spotlight in case of market intelligence; therefore, the data gathered in this type of business intelligence involves economic; and, social statistics of people such as demographics, population, consumption, and demand. On the other hand, competitive intelligence helps companies identify competitor’s strategies, their strengths, and weaknesses; the chunk of the market share they own; how their tactics are impacting your business, etc.

    The Game Plan:

    While the ultimate aim of both these strategies is to reduce business risk and up the game in the business; the data focus of both these techniques is very different. Therefore, their application in a formal business plan of a company also differs. Market intelligence employee by businesses to improve their existing product offerings and develop new and innovative products; which will ultimately result in improved customer loyalty.

    Competitive intelligence use by companies to plan specific strategies to overcome the competition from various competitors in the market. Each competitor will have different business strategies and tactics and with the help of competitor intelligence, companies can plan different counter-tactics for each of them.

    References:

    • Need and Benefits of Competitive Intelligence – www.mbaknol.com/modern-management-concepts/competitive-intelligence-ci/
    • Definition and Objectives of Competitive Intelligence – businessjargons.com/competitive-intelligence.html
    • Difference between Competitive Intelligence and Market Intelligence – www.infinitiresearch.com/thoughts/competitive-intelligence-vs-market-intelligence
  • Public and Private Finance: Differences and Similarities

    Public and Private Finance: Differences and Similarities

    What does Public and Private Finance mean? Public and Private Finance: Differences, Similarities, and Dissimilarities; what their meaning? Public finance is the finance sector that deals with the allocation of resources to meet the set budgets for government entities. Private Finance can classify into two categories the public or personal finance and business finance. Personal finance deals with the process of optimizing finances by individuals such as people, families, and single consumers.

    The Concept of Public and Private Finance; explain into Differences, Similarities, and Dissimilarities.

    Public finance has several branches; public revenue, public expenditure, public debt, budget policy, and fiscal policy. This branch of economics is responsible for the scrutiny of the meaning and effects of financial policies implemented by the government. This sector examines the effects and results of the application of taxation and the expenditures of all economic agents and the overall economy. Richard Musgrave, a renowned Economics professor, terms Public Finance as a complex of problems that are centered around the income and expenditure processes of the government.

    Personal Finance deals with the process of optimizing finances by individuals such as people, families, and single consumers. A great example is an individual financing his/her car by the mortgage. Personal finance involves financial planning at the lowest individual level. It includes savings accounts, insurance policies, consumer loans, stock market investments, retirement plans, and credit cards.

    Business Finance involves the process of optimizing finances by business organizations. It involves asset acquisition and proper allocation of funds in a way that maximizes the achievement of set goals. Businesses can require finances on either of the three levels; short, medium, or long term.

    Differences between Public and Private Finance:

    The following differences are explained into two sections; A) Basic, and B) Advanced.

    A. Basic differences part one are;

    About the differences between private and public finance.

    • The pattern and volume of expenditure of an individual are influenced by his total resources income and wealth but in the case of government, expenditure determines income. Moreover, government expenditures de­termine people’s income. If the government spends money on road construc­tion, some employment is automatically generated.
    • Private individuals or firms are mainly concerned with private con­sumption or profits. The government aims at promoting the welfare of society rather than that of the individual. The individual (or a firm) is mainly concerned with his (its) present gains and prospects, not with that of the distant future. The government has to serve society generation after generation.
    • Private firms derive income by selling goods and they pay to factors of production according to the quantity or quality purchased. The services of governments are usually made available to individuals quite irrespective of the cost and often at rates that do not cover full costs.
    • A public authority can vary the amount of its income and expenditure within limits, of course, but more easily than an individual. An individual cannot easily double his income or halve his expenses even if he would be better off that way. But this is not so difficult in the case of Governments.
    A. Basic differences part two are;

    About the differences between private and public finance.

    • A public authority usually does not discount the future at as high a rate as an individual. The reason is obvious. The life of a man is counted in years and his foresight is limned. A-State is supposed to live forever. Hence, future satisfactions do not appear so small against present utilities to a State as they do to an individual. He always prefers a bird in hand to two in the bush even though the two in the bush may be fairly certain tomorrow.
    • A wise man is he who, after meeting his needs, saves something to lay by. Not so with a State. A State should not ordinarily try to hoard but should repay to the people in services all that it receives in taxes. A heavily surplus budget is for this reason as bad as, and perhaps even worse than, a heavily deficit one. The deficit budget may propose to incur the deficit for the promotion of mass welfare, while the surplus budget is only an extra burden on the tax-payer.
    • There is no fixed period over which an individual balances his budget. State budgets are -generally made for one year. But the income and expenditure of an individual are continuous and cover the whole period of his life.
    • Individual finance is kept a secret, whereas State finance is made public. The budget is published and every citizen is welcome to scrutinize it and comment on it. An individual will not let anybody have a peep into his financial position.
    B. Advanced differences;

    The following differences below are;

    Borrowing:

    The government can borrow from itself, it can simply go back to the people to ask for loans in whichever financial asset e.g. bonds when shortages arise. However, an individual can’t borrow from itself.

    Objective:

    The public sector’s main objective is to create social benefits in the economy. The private industry seeks to maximize personal or profit benefits.

    Currency ownership:

    The government is in charge of all aspects related to currency. This involves the creation, distribution, and monitoring. No one in the private sector allows to create currency, this is illegal and most countries classify it as a capital offense.

    Present or future Income:

    The public sector is more involved with future planning and making long-term decisions. The government makes decisions that will bear fruits in the long-term even ten years. These investments could include the building of schools, hospitals, and infrastructure. The private industry makes financial decisions on projects with a shorter return waiting time.

    Income and Expenditure Adjustment:

    The government adjusts the income according to the expenditure budget. The private sector including individuals and private businesses adjust their expenditure according to the income or future estimates. The government first creates an outline for the expenditure then devices means of acquiring the monetary budget needed. Private finance involves cutting your coat according to your cloth.

    Coercion to getting Revenue:

    The government can use force to get revenue from individuals. This could involve the use of force to get taxes. The private sector, however, doesn’t have this authority.

    Surplus Budget Concept:

    Excess income or surplus budgets is a great virtue in the private sector, this is however not the case in public finance. The government is expected to only raise what is needed for a fiscal year. Of what use would it be to have surplus budgets? It would be much easier to offer tax reliefs to the tax-payers to offset the surplus.

    Ability to Make Huge and Deliberate Changes:

    The public finance sector can make huge decisions on income amount without any consequences. For example, it can effectively and deliberately increase or decrease the income amount instantly. Businesses and individuals can’t make these decisions and implement them immediately.

    Similarities between Public and Private Finance:

    While the individual is concerned with the utilization of labor and capital at his disposal, to satisfy some of his wants, the state is concerned with the utilization of the labor and capital and other resources to satisfy social wants. It will observe that both private and public finance have broadly, the same objective, namely the satisfaction of human wants.

    However, while private finance em­phasizes individual interests public finance attempts to promote so­cial welfare. From this, it may though that public finance is only an extension of private finance and that the rules and regulations which apply to private finance will also apply to public fi­nance.

    The following similarities below are;

    Borrowing:

    Borrowing is a common element both in private and public fi­nance. Just as an individual borrows from different sources when current incomes are insufficient to meet the current expenditure, the public authority also resorts to borrowing, when its revenue fall short of aggregate expenditure.

    Problems of Adjustment of Income and Expenditure:

    Both public and private finance always face the problem of the adjust­ment of income and expenditure. Hence the problem of choice is common in both types of finance. Both kinds of finance have income and expenditure. Both try to balance their income and expenditure.

    Rationality:

    Private and public finance are based on rational behavior. The resources at the disposal of private individuals and public authority are limited. Therefore in both cases, maximum care is taken to en­sure better utilization of scarce resources. A rational individual tries to maximize personal benefits from his expenditure. Likewise, a rational government seeks to maximize social benefits from public expenditure.

    The scarcity of Resources:

    Both have limited resources at their disposal. Both public and private individuals are required to match their income and expenditures in such a way that both make the optimum use of scarce resources.

    Loans are Repayable:

    Both private and public loans are required to repay. An individual borrows money from various sources to meet personal requirements. But that too cannot unlimited. He has to repay his loans. Like individuals, the government cannot live beyond its means. It can temporarily postpone repayment of loans, but it is obligatory to repay the loans. Thus, public finance may regard as an extension of private finance. This, however, is not true.

    Public and Private Finance Differences Similarities and Dissimilarities
    Public and Private Finance: Differences, Similarities, and Dissimilarities, #Pixabay.

    Dissimilarities between Public and Private Finance:

    One can notice fundamental dissimilarities between public and private finance.

    The important differences are:

    Public Budget is not Necessarily Balanced:

    An individual tries to maintain a balanced budget and maintenance of a surplus budget is a virtue. Instead of a balanced or surplus budget, it is desirable to have a deficit budget of a government to increase the country’s productive power. In other words, a surplus budget may not stimulate economic activities. On the contrary, a deficit budget often makes to finance economic development.

    The scope of Study:

    Public finance studies the complex problems that center around the revenue – expenditure process of government. Private finance, on the other hand, confines to the study of those aspects of the economy that arise in the course of operation of private households in the sphere of financial transactions and activities. Hence in terms of scope of study private finance has a limited sphere of operation.

    Compulsory Character:

    There are certain items of expenditure that the state can neither avoid nor postpone. Irrespective of the availability of resources, this type of expenditure should in­cur.

    According to Prof. Findlay Sierras,

    “Another characteristic of public expenditure is its compulsory char­acter.”

    The expenditure on defense, civil administrations, etc. is compulsory. Likewise, the state can compel people to pur­chase and consume a particular variety of cloth, wheat, or other com­modities at a price fixed by the state.

    Nature of Resources:

    There is a difference between private and public authorities as re­gards the nature of resources. While the individual has only limited resources at his disposal, the public authorities can even draw upon the entire wealth of the community, by raising a force, if necessary.

    Tax payment is a personal responsibility of the taxpayer. Nobody can refuse to pay taxes if it is imposing on him. Besides tax rev­enue, the public authorities can borrow funds from the general public and if needed, from outside the country.

    The government can even resort to deficit financing, as and when the financial situation worsens. As compared to this, individuals and business houses have only a limited source of resources.

    Coercive Authority of the Government:

    An individual cannot raise coercive methods to raise his income. But the government can use force to collect the necessary revenue. Since the public authority possesses coercive power, it can raise the rate of taxes, add new taxes to the existing system, and force taxpayers to pay taxes promptly. Moreover, during the financial crisis, the government can intro­duce, the compulsory deposit of funds, using the coercive authority of the state.

  • What is the difference between Marketing and Selling?

    What is the difference between Marketing and Selling?

    Marketing and Selling are both activities aimed at increasing revenue. They are so closely entwining that people often don’t realize the difference between the two. This is particularly true in the case of small businesses, which often equate marketing with selling deliberately due to organizational and resource limitations. These two are the most misconstrued then again there exists a best line of distinction between Marketing and Selling the concept, that lies in their meaning, process, activities, management, outlook, and comparable different factors. So, what is the question we are going to discuss; What is the difference between Marketing and Selling?

    Here are explained; Differences between Marketing and Selling with their Definition and Concept.

    Marketing is an ancient art and is present everywhere. Good marketing has become an increasingly vital ingredient for success. It is a comprehensive term, which includes a lot of research in selling, advertising, and distributing goods. Marketing is a series of different steps and processes which help in getting the products to the consumer from the producer.

    Definition of Marketing:

    Marketing: Basically, it is a management process through which products and services move from concept to the customer. It includes the identification of a product, determining demand, deciding on its price, and selecting distribution channels.

    The UK-based Chartered Institute of Marketing (CIM) defines the term as follows:

    “Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably.”

    Below is the American Marketing Association’s definition:

    “Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.”

    Selling: Selling is first and foremost a transaction between the seller and the prospective buyer or buyers where the money stands exchanged for goods or services. So the best way to define selling is to focus on the sales skills that are necessary to make that transaction happen. Defining selling as the art of closing the deal encapsulates selling’s essence.

    In the language of Philip Kotler:

    “The selling concept holds that consumers if left alone, will ordinarily not buy enough of the organization’s product. The organiza­tion must, therefore, undertake an aggressive selling and promotion effort.”

    Concept:

    The following concept below are;

    Marketing Concept:

    The advertising and marketing thought is an enterprise idea, which states that the company’s success lies in turning into greater fantastic than the rivals, in producing, delivering, and speaking increased purchaser cost to the goal market. It depends on 4 elements, i.e. the goal market, built-in marketing, purchaser needs, and profitability. The idea starts with a unique market, stresses patron needs, coordinates things to do that have an impact on customers, and reaps earnings with the aid of pleasurable customers.

    The concept holds that an association can acquire its objective of income maximization, in the lengthy run, by figuring out and working on the wishes of the present day and potential buyers. As well, the central thought of advertising and marketing thought is to fulfill the desires of the customer, and the use of the product. Hence, all the choices stood taken by using the association preserve in thought the delight of consumers.

    Selling Concept:

    The promoting thinking holds that if corporations and buyers are left isolated, then the shoppers are no longer going to purchase enough merchandise manufactured with the aid of the company.

    The idea can observe belligerently, in the case of items that are now not sought, i.e. the items which the patron doesn’t suppose of purchasing, and additionally when the company is running at extra than a hundred percent capacity, the association goals at promoting what they produce, however now not what the market demands. Hence, the purchaser wishes to set off to purchase the products, thru aggressive promoting and promotional methods such as advertising, private selling, and income promotion.

    The essence of promoting the notion is to promote what the employer produces, through convincing, coaxing, luring, or persuading buyers, as a substitute for what stands preferred by the customer. Also, the thought focuses on producing earnings with the aid of maximizing sales.

    Gift Packaging is a form of branding and knowing how to make your product stand out amongst all the others on the shelves can be hard. Gift Packaging is also more effective in the product market for marketing and selling. This is the purpose of packaging. Packaging, when done correctly and creatively, is ultimately what sells your product. Gifts packing idea Click here on Giftcart; Giftcart is an online store where you can find the best Amazon products related to different niches.

    Difference between Marketing and Selling:

    The following basic differences of key-point below are:

    In the Marketing differences:
    • The marketing concept applies to developed economies; where supply is more as compared to demand- amidst intensely competitive conditions. As such, the selling of goods is the biggest problem.
    • Under the marketing concept, there is a long-run perspective; concerned with winning consumers permanently and capturing the largest “market share” by providing maximum consumer satisfaction.
    • Marketing is a wider concept. It includes selling plus a large number of functions viz. marketing research, pricing, promotions, packaging, and a host of other functions.
    • Marketing is consumer-oriented. It emphasizes consumers and the maximization of their satisfaction.
    • Marketing starts with marketing research; next, do a production based on marketing research outcomes, and finally, do the selling.
    • The Basic objective of marketing is profit maximization through maximizing consumer satisfaction.
    • Marketing follows an integrated approach to organizational structuring. All departments of business enterprises are restructuring with a marketing orientation.
    • There is great emphasis on after-sales service, under the marketing concept; to win customers permanently and ensure the long-term prosperity of the business enterprise.
    • Marketing is a philosophy of organization and management. Selling is a natural outcome of such a philosophy.
    • Under the marketing concept, demand creates appropriate marketing strategies.
    In the Selling differences:
    • Selling is production Oriente. It emphasizes production and its efficiency.
    • The selling concept is appli­cable to under-developed economies; where supply is less as compared to demand. As such selling goods is no problem.
    • In the under-selling concept, there is a short-term perspective; concerned with making sales and earning profits.
    • Selling is a narrower concept. It is a part of the marketing concept; so far “selling” is concerned. It includes limited marketing functions that are imperative for selling.
    • “Selling” starts with the production; and ends with the selling of goods to the consuming public.
    • The Basic objective of selling is profit maximization through sales maximization.
    • There is the independent status of production, marketing, and other business enterprise departments.
    • There is usually no attention to after-sales service, under the selling concept.
    • Selling follows a routine process of physical distribution of goods.
    • An Under-selling concept demand is presumed to be in existence.
    What is the Difference between Marketing and Selling
    What is the difference between Marketing and Selling?

    The 5 differences between “Marketing” and “Selling” clear the main Concept:

    There are a good many people who use the words “marketing” and “selling” interchangeably. There is a difference between the two terms so much so that their real meaning and content make them altogether quite distinct words.

    The 5 basic differences can outline as under:

    Scope:

    “Marketing” involves the design of products acceptable to customers and the transfer of ownership between the sellers and buyers. However, “Selling” simply involves obtaining orders from customers and supplying them with the products. It stands more concerned about the sale of goods already produced.

    Philosophy:

    Marketing has philosophical and strategic implications. It directs toward the long-term objectives of growth and stability. On the other hand, selling is a mere tactical routine activity with a short-term perspective, under which customers take for granted as one homogeneous unit.

    Occurrence:

    Marketing begins much before the production of goods and services. It continues even after the sale because “after-sale services” may be necessary for satisfying the wants of customers.

    However, selling comes after the product has been completed and it comes around with the delivery of the product to the customer. In other words, marketing begins before the manufacturing cycle, whereas selling comes at the end of this cycle.

    Semantics:

    Marketing, as a word, has a wider connotation which includes selling in its fold. Selling is a part of marketing that covers many other activities like marketing research, product planning and development, pricing, promotion, distribution, and the like. Thus, marketing means selling but selling does not mean marketing.

    Emphasis:

    In the case of marketing, the focus is on satisfying the wants of customers while selling emphasizes the need of the seller to convert products into cash. Also, Marketing is customer-oriented and seeks to earn profits through customer satisfaction. On the contrary, selling is product-oriented and seeks to increase sales volume.

  • What is the difference between Wholesaler and Retailer?

    What is the difference between Wholesaler and Retailer?

    Who they are Wholesaler and Retailer? Top 20 Differences – first, know their meaning; Wholesaler – A wholesaler is a company that buys products from manufacturers and sells them at low prices to retailers or other wholesalers. A wholesaler, in the words of S.E. Thomas, “Is a trader who purchases goods in large quantities from manufacturers and sells to retailers in small quantities”. And, Retailer – A retailer is a company that buys products from a manufacturer or wholesaler and sells them to end-users or customers. The primary difference between Wholesaler and Retailer; A person or business that sells goods to the public in relatively small quantities for use or consumption rather than for resale. So, what is the question we are going to discuss; What is the Difference between Wholesalers and Retailers?… Read in Hindi!

    Here explains the Difference between wholesaler and retailer.

    The following question is answering below;

    Definition:

    All consumer goods and products start at the manufacturer. The manufacturer most often designs and produces the product. The manufacturer then sells the finished product to a wholesaler because wholesalers often have relationships with retailers and distribution chains that manufacturers don’t have. The wholesaler, in turn, sells the product to a retailer that can market and sell the product to an end customer.

    The term “Wholesaler” applies only to a merchant middleman engaged in selling the goods in bulk quantities. Wholesaling includes all marketing transactions in which purchases are intended for resale or are used in marketing other products. Thus, we can say that a wholesaler is a person who buys goods from the producer in bulk quantities and forwards them in small quantities to retailers.

    Retailers are experts in marketing, sales, merchandise inventory, and knowing their customers. They purchase the goods from the manufacturers at cost and market them to consumers at retail prices. The retail price can be anywhere from 10 percent to 50 percent higher than the manufacturing cost. You can think of this as a marketing and advertising fee. Retailers spend millions of dollars on marketing campaigns to help sell the products they carry. These advertising budgets come from the markup on the goods.

    Concept:

    One of the main differences between wholesale and retail is the price of the goods. The wholesale price is always lower than the retail price. This is mainly because the retailer has to include many other costs while selling the goods. The retailer has to add costs like the salaries of employees, rents of shops, sales tax, and advertising of the goods that he buys from a wholesaler. A wholesaler does not worry much about all of these aspects which prompts him to sell goods at a lower price. The wholesaler has direct links with the manufacturer and buys products or goods directly from him.

    On the other hand, a retailer has no direct contact with the manufacturer. In choosing the quality, the retailer has an upper hand. A retailer can choose the products with quality and discard the damaged ones as they only buy small amounts. On the contrary, the wholesaler will not have a say in the quality as he has to buy in bulk from the manufacturer.

    This means that the retailer has the freedom to choose the products whereas the wholesaler does not have the freedom to choose the products. It can also be seen that retailers have to spend more on maintaining the retail space as they have to attract consumers. On the other hand, a wholesaler need not worry about the space as it is only the retailer who buys from him.

    What is the Difference between Wholesaler and Retailer
    What is the Difference between the wholesaler and the retailer?

    Top 20 Difference between Wholesaler and Retailer part one:

    The following 10 Differences below are;

    • They are connecting links between the manufacturers and retailers, and They are connecting links between the wholesalers and the customers.
    • They purchase goods in large quantities from manufacturers. And, they purchase goods in small quantities from the wholesalers.
    • They deal with a limited number of products, and They deal with a variety of products for meeting the varied needs of consumers.
    • They need more capital to start their business, and they can start the business with limited capital.
    • The display of goods and decoration of the premises is not necessary for them. And, they lay more emphasis on window display and proper decoration of business premises to attract the customers.
    • Their business operations extend to different cities and places, and They usually localized at a particular place, area, or city.
    • They do not directly deal with the customers, and they have a direct link with the customers.
    • They do not extend free home delivery and after-sales services. And, they provide free home delivery and after-sales services to consumers.
    • Provide more credit facilities to retailers and they provide lesser credit facilities to the consumers and usually sell goods on a cash basis.
    • Wholesalers buy from the manufactures and sell goods to retailers. And, Retailers buy from the wholesalers and sell goods to the consumers.

    Top 20 Difference between Wholesaler and Retailer part two:

    The following 10 Differences below are;

    • Wholesalers usually sell on credit to the retailers, and Retailers usually sell for cash.
    • They specialize in a particular product, and They deal with different kinds of goods.
    • They buy in bulk quantities from the manufacturers and sell in small quantities to the retailers, and they buy in small quantities from the wholesalers and sell in smaller quantities to the ultimate consumers.
    • Wholesalers always deliver goods at the doorstep of the retailers, and Retailers usually sell at their shops. And, they provide door delivery only at the request of the consumers.
    • They may not possess expert know­ledge regarding selling techniques. And, they must possess expert knowledge in the art of selling.
    • They enjoy the economies of bulk buying, freights and price, etc. and they do not avail such economies.
    • Their services can be dispensed with or can be eliminated from the chain of distribution, and they are an integral component of the distribution chain and cannot be eliminated.
    • A wholesaler need not provide shopping comforts like luxurious, interiors, provision of air-conditioning, trolleys, etc. And, a retailer usually provides shopping comforts mainly to attract customers.
    • As the wholesaler specializes in a particular product, he has to necessarily convince the retailers about product quality. Only then the latter will place an order. And, as the retailer deals in a variety of goods, he need not influence buyers. He can let the buyer choose any brand of the product he likes.
    • As per the custom of their trade, wholesaler allows the retailer trade discount each time the retailers buy. And, the retailers normally do not allow any discount to their customers. Some of them may offer a cash discount to bulk buyers. Sometimes, they may offer seasonal discounts.