Tag: Introduction

  • Rural Marketing: Meaning, Areas, Features, and Importance

    Rural Marketing: Meaning, Areas, Features, and Importance

    Introduction to Rural Marketing Research: It has involved extraordinary requests both for the marketing scholastics and specialists whether there is a requirement for creating separate techniques for rural markets. Rural marketing research also defines as their Introduction, Meaning, Definition, Areas, Characteristics or Attributes or Highlights or Features, Need or Significance or Importance. How to position Global Marketing in rural marketing? Rural marketing is a gathering of the create item, sensible cost, suitable setting, and right mindfulness.

    Here is the article to explain, Rural Marketing Research – Introduction, Meaning, Definition, Areas, Characteristics or Attributes or Highlights or Features, Need or Significance or Importance.

    Meaning of Rural Marketing: The marketing decides states that the correct item, at the correct cost, at the opportune spot, at the perfect time, through the correct medium should arrive at the correct client. Also, Marketing might depict as the way toward characterizing, envisioning, and knowing client needs and dealing with all the assets of the association to fulfill them.

    The fulfillment of client’s needs and needs gives the presence to the association. The purchaser’s conduct contains the demonstrations, procedures, and social connections appeared by people, gatherings, and associations with items and administrations. Information and comprehension of the thought processes of purchaser conduct help an association in looking for better and progressively powerful approaches to fulfill the customers.

    It assists with choosing suitable deals and publicizing procedures to design marketing programs in an increasingly proficient way. The rural market of India began indicating its potential from the 1960s, their research; and, the ’70s and ’80s demonstrated its consistent turn of events, research paper. During the ’90s, there was a consistent development of the buying intensity of rural India; and there are clear signs that the 21st century is going to see its full blooming.

    Definition of Rural Marketing:

    The investigation of Rural marketing contains every one of the tasks, research paper pdf file, and the offices leading them, associated with the development of ranch created food, crude materials, and their subordinates, like materials, from the homesteads to the last buyers, and the impacts of such procedure on makers, go-betweens, and purchasers.

    According to G.N. Murthy;

    “Rural marketing is the study of all the activity, agency and policy involved in the procurement of farm inputs by the farmers and the movement of rural products from farmers to consumers.”

    According to National Commission on Agriculture are;

    “Rural Marketing is a process which starts with a decision to produce a saleable farm commodity and it involves all the aspects of market structure or system, both functional & institutional, based on technical and economic considerations and includes pre and post-harvest operations, assembling, grading, storage, transportation, and distribution.”

    So we reason that rural marketing in basic words is the arranging and execution of the marketing capacities for rural areas, you may download their research paper ppt and pdf file.

    Areas of Rural Marketing:

    How to run a Rural Marketing campaign? To run a rural marketing effort, you can do the trading of labor and products in three distinct manners and they are-Rural to Rural, Urban to Rural, and Rural to Urban. In this way, to run a Rural Marketing Campaign, you can decide on these three distinct ways. Allow us to talk about Rural Marketing research areas three in detail;

    Rural to Rural:

    This sort of rural marketing comes to set up when rural makers make items for rural buyers or locals. In this sort of marketing, various kinds of items utilize are trucks, cows, ceramics, and so on

    Metropolitan (Urban) to Rural:

    In this sort of rural marketing, items produce in urban communities or metropolitan units make available to the rural market base. Various items that come in this class are buyer durables, FMCG, manures, and so on Rural marketing utilize for augmenting the compass and changes of these items to a rural section of target crowds.

    Rural to Urban:

    Such rural marketing is utilized when items that are developed or fabricated are offered to the metropolitan market. Various items contained in this class are crops, handicraft things, horticultural items, and so on This sort of marketing is likewise very valuable in boosting the monetary standards of the rural populace by assisting them with getting worth and market for their products, and advocating their abilities.

    Rural Marketing Wrap Up;

    Albeit (Although) rural areas have a ton of possibilities to come up as the new modern center, countless difficulties accompany it also. Yet, with an appropriate rural marketing methodology, a portion of these issues can be managed. Winning the rural market is vital in augmenting the devoted client base, leads, deals, and benefits.

    This will likewise help organizations in having a network among rural and metropolitan areas. Also, This network is the most basic factor of comprehensive development which will guarantee a feasible presence to the organizations. How significant do you consider rural marketing procedures for your business? Offer your perspectives about the meaning of rural marketing efforts with us in the remarks.

    Characteristics or attributes or highlights or features of Rural Marketing:

    To zero in on the rural market and to create successful methodologies for tapping the market capability of the Rural Market, the organizations should know the features of the rural marketing research, which are depicted as follows:

    Huge, Diverse, and Scattered Market:

    The rural market in India is enormous and dispersed into a few districts. It comprises roughly 78 crores of rural shoppers who live in 6.50 lakh towns spread more than 35 lakh square kilometer territory. It is dissipated and far-reaching over 6.40 lakh towns, dissimilar to the metropolitan market kept to a handful of metros, cosmopolitan urban areas, and towns. Covering, a huge and generally dissipated topographical market, described by less populace per settlement, raises the stock and transportation cost and in this way influences the suitability of the course plan tasks of the circulation framework in rural areas.

    Significant Income of Rural Consumers is from Agriculture:

    Rural success attaches to agrarian flourishing. A significant piece of the pay of rural individuals comes from farming. In case of harvest disappointment, the pay of rural masses is straightforwardly influenced. In any case, the new past has seen a slow decrease in the sole reliance on agribusiness, as different areas have begun assuming a huge part in the rural economy.

    Low Standard of Living:

    The rural populace is utilized in limited scope rural and related occupations. This instability factor on account of rural pay makes the rural buyers very aware of their buy conduct as they are not certain about their future income. Most of the rural populace lives underneath the destitution line and has a low proficiency rate, low per capita pay, social backwardness, and so forth

    Added to this the customs, strict pressing factors, social qualities, and profound established notions are the obstructing factors for upward friendly versatility. Also, The flourishing to put something aside for future exigencies causes rural individuals to spend less to improve their standard of living in any event when they have decent pay.

    Conventional Outlook:

    Towns grow gradually and have a conventional standpoint. Change is a consistent cycle yet most rural individuals acknowledge changes slowly. They for the most part oppose change. This is step by step changing because of proficiency particularly in the adolescent who has started to change the standpoint in the towns.

    Foundation Facilities:

    The lacking foundation is the absolute most significant factor that recognizes metropolitan and rural business sectors. Also, The framework offices like solidified streets, stockrooms, correspondence frameworks, and monetary offices are insufficient in rural areas. Advancement and actual dissemination along these lines become extremely troublesome in the rural areas on account of deficient infrastructural offices; which has expanded the extent of rural marketing.

    Market Growth:

    The rural market is developing consistently throughout the long term. Demand for customary items, like bikes, rural data sources, FMCG Products, and so forth has additionally developed throughout the long term. The development has not been just quantitative yet also subjective.

    This was the aftereffect of new work openings and new types of the revenue made accessible through rural advancement programs; which have brought about green and white unrests and upheaval in rising assumptions for rural masses. Also, Demand for items like bikes, agrarian sources of info, ranch items, and so forth, has additionally developed throughout the long term. This outcome in the expanding the capability of rural areas.

    Different Socio-Economic Background:

    Because of the scattering of geological areas and lopsided land ripeness, rural individuals have a different financial foundation; which eventually influences the rural market. Residents have a place with various religions, societies, and gatherings of people. Socio-social foundation impacts shopper ability to acknowledge developments and new items in various areas.

    The varieties in conduct because of buyer climate geological, occupation, demographical and social, impact the way of life and make through and through various arrangements of requirements in various areas. This makes the need to portion the rural market to take into account it viably and productivity.

    Education around there:

    The education rate is low in rural areas when contrasted with metropolitan areas; and, prompts the issue of correspondence for advancement purposes. With low proficiency rates, the print medium gets wasteful; and, to a degree immaterial in rural areas since its span is poor. The reliance is more on electronic media – film, radio, and TV however the rural proficiency level has improved in the rural past.

    Rural individuals have begun to go to metropolitan areas for advanced education. Indeed, even the public authority has presented different plans for rural schooling. Mindfulness has expanded and the ranchers are very much educated about their general surroundings. They are likewise instructing themselves on the innovation around them and yearning for a superior way of life.

    Buying Capacity:

    The buying force of individuals in rural areas is reliant upon a few immediate; and, roundabout components identified with the rural economy. Marketing rural excess and rural–metropolitan terms of exchange are the primary wellsprings of buying power for rural buyers. Generally, Indian horticulture is subject to precipitation.

    Subsequently, the rural demand for buyer products is by implication impact by precipitation. This outcome is the insufficient buying force of the rural customers. Yet, presently day’s buying influence of the rural individuals is expanding; because the public authority spends immense measures of cash on the water system, flood control, framework advancement, hostile to destitution plans, endowments, and so on

    Thusly, advertisers are keen on building up the market in rural areas. Media has arrived in rural areas; so it turns out to be simple for advertisers to sell items in rural areas. Advertisers have understood the capability of rural business sectors and in this manner are expanding their activities in Rural India.

    Need or Significance or Importance of Rural Marketing:

    Numerous organizations having great assembling offices and marketing aptitude are zeroing in on rural business sectors; as there are freedoms to showcase customer labor and products in rural areas; and, likewise market agrarian items in metropolitan business sectors.

    Developing Rural Market:

    Aside from rural contributions, there is a developing business sector for customer merchandise in rural areas. As indicated by NCAER, the rural buyers address more than 50% of India’s “burning-through classes”; and, structure the objective gathering for customer labor and products.

    Extreme Competition in Major Urban Markets:

    Concentrated rivalry in the metropolitan market has expanded expenses yet not a high piece of the pie and benefits. Numerous organizations have taken a lead in setting up their items in rural business sectors. Model – HUL, Colgate, Marico, Nirma, LG Electronics.

    To Change the Attitude of the Farmers with the goal that they will Treat Agriculture as a Business:

    Generally, ranchers have regarded agribusiness as a method of living and they delivered barely enough amounts to meet their family necessities. Numerous reformist ranchers have expanded the yields of harvests by following present-day horticultural practices. Indeed, even little ranchers will urge to build creation. At the point when agribusiness is very much evolved; the pay of ranchers will go up because of a highly attractive excess. This gives great demand to modern and shopper merchandise.

    Rural Marketing Creates Employment Opportunities:

    Broadening of farming, advancement of town-level ventures, and marketing of present-day labor and products give business openings.

    Models:

    • The Government is wanting to set up a chain of expert establishments in rural areas on a public-private association premise to deliver gifted laborers for the car business. The Ministry of Rural Development has likewise preferred the proposition and has offered to expand monetary and other help. The foundations might be like the current Industrial Training Institutes.
    • Due to the high wearing down rate and the developing expense of HR, numerous BPO organizations are moving to the hinterland looking for less expensive and steadfast ability pools. Indeed, even programming firms are setting up focuses in more modest towns. In rural areas, compensations will be up to 50 percent lower than in urban communities, and land around multiple times more affordable, bringing about cost intensity.
    • As insurance agencies go increasingly more rural looking for business, there will be open doors in the rural area. The individuals who understand rural India will be in demand.
    Rural Tourism:

    Incorporates a scope of exercises, administrations, and conveniences given by rural individuals to vacationers. The expansive areas covered are social and ranch the travel industry, nature occasions, and visiting in rural areas. Town way of life and conventional neighborliness are different attractions for sightseers. Numerous metropolitan individuals would select rural the travel industry since it gives a chance to return to roots (towns) and be away from the pressing factor of metropolitan life. The rural travel industry creates business openings and expansions in pay for townspeople. Additionally, rural occasions empower the youthful metropolitan populace to encounter rural life.

    Models:
    • Winners in Maharashtra have started wine the travel industry. Having wine in the travel industry is to have guests stay in the winery; see the grape plantation and get a vibe of the wine-production measure. This will likewise permit savoring the beverage.
    • Rajasthan has been introduced as an objective with fortifications, castles, sandstones, works of art, ceramics, town specialties, and local area diversion.
    • Kushti (Wrestling) Carnival in Kundal (Sangli District, Maharashtra) pulls in near two lakh individuals.
    • Jallikattu (restraining of the bull) led during the gather celebration of Pongal has become a piece of the travel industry bundle of Tamil Nadu.
    • Purushwadi, a town arranged 180 km. from Mumbai has become a place of interest because of the endeavors of “Grass Routes” an association that is advancing town the travel industry. Begun in 2006, more than 60 families invite visitors to remain with them and experience town life and visiting slope sanctuaries, traveling, chipping away at ranches, washing in the stream, and so on
    More than 70 Percent of the Country’s Population Live in Rural Areas:

    With an exceptionally enormous shopper base, rural business sectors have huge potential, and organizations predict the rural business sectors as the business sectors of tomorrow. The working-class section is metropolitan India, which is now all around adjusted. Nonetheless, the rural business sectors are ineffectively adjusted about banking, protection, essential medical services, schooling, and lodging. Additionally, the entrance of four-wheelers, coolers, Color TV, and so on, is low in rural areas and there are enormous freedoms for inventive advertisers.

    Brand Loyalty:

    Because of low pay, most of the rural customers are cost cognizant. Be that as it may, they will keep on belittling a brand whenever they are happy with the item. Model – Parle Biscuits keep on being famous over neighborhood brands.

    Unfamiliar Competition:

    Unfamiliar organizations who are entering the Indian market, regularly, center around metropolitan shoppers. Consequently, there is less rivalry in rural business sectors.

    Improvement of Regional TV Network:

    Has empowered the advertisers to pass on the messages about items and administrations to the rural populace.

    Models:

    • In the class of rolls, Britannia dispatched the Tiger brand considering kids. The rolls focused on youngsters with the slogan ‘Tiger Khao, Kuch ban ke dikha o’.
    • The more youthful town age has significant openness to different media over the prior age, and, they like to copy their metropolitan partners. Kids assume a significant part in affecting buy choices in rural areas.

    Importance of Exploring Niche Marketing for Rural Markets!

    Specialties structure a little however beneficial base of portions to which items and brands and the ‘blast’ made by the customer blast; advertisers are investigating approaches to benefit from ‘specialty’ on the lookout.

    “Bird” cleanser of Hindustan Lever and “Colgate Total” from Colgate Palmolive mirror the importance of specialty systems in the Indian setting. Specialty methodologies could be inventively figured by consolidating a few marketing blend components; which may speak to the rural market in India.

    In a nation like India where the client blast has been entered the rural market; specialty marketing could be an out-and-out various and interesting activity. Given the social variety across the length and expansiveness of the country; specialty marketing could offer a gigantic measure of potential in the rural market.

    More Things:

    Practically all items and administrations could be reformulated with a marketing blend in which the importance given to the components could change following the segment and psychographic profiles of rural customers.

    A branded espresso may require inside and out an alternate promoting topic. It might utilize the invigorating part of caffeine to situate itself. Enfield has exhibited how promoting could be utilized to seek after a specialty; so additionally Coca Cola with film VIP Amir Khan.

    The previous passed on the toughness of a bike to withstand rural and conditions. Up-market items which have cut a specialty for themselves in metropolitan areas may go through the adjustment to be situated in the rural business sectors. Soda pops, quick food sources, and kitchen applications; and, so on may get an ‘unmistakable flavor’ to get a ‘rural specialty’.

    Rural Marketing Research Introduction Meaning Definition Areas Characteristics Attributes Highlights Features Need Significance Importance Image
    Rural Marketing Research – Introduction, Meaning, Definition, Areas, Characteristics or Attributes or Highlights or Features, Need or Significance or Importance; Image from Pixabay.
  • Cryptocurrency IRA: Meaning, Definition, Dig deeper, Difference

    Cryptocurrency IRA: Meaning, Definition, Dig deeper, Difference

    Dig deeper into crypto, Bitcoin, or Cryptocurrency IRA; A cryptocurrency is just an advanced form of cash that utilizes digital money for security. It’s a digital resource intend to utilize as a mechanism of trade between two parties. Introduction to crypto, Bitcoin, or Cryptocurrency IRA: Meaning, Definition, Benefits, Dig deeper, Difference; The vital element of a crypto-currency is that it is natural; and, it doesn’t give by any national bank or authority, keeping it resistant to government interference and additional control. Commonly cryptocurrency is put away inside a digital wallet got by a private key. Bitcoin, made in 2009, was the initially decentralized cryptocurrency.

    Here is the article to explain, Difference between Traditional or Advanced Cryptocurrency or Bitcoin IRA, with crypto Meaning, Definition, Benefits, and Dig deeper into.

    What is the crypto, Bitcoin, or Cryptocurrency IRA? Meaning and Definition; Bitcoin is a sort of cryptocurrency IRA, some of the time calls digital cash or virtual money. It is the most advanced and digitized form of money used in a variety of traditional investment strategies. So a bitcoin IRA is a sort of retirement account that includes bitcoin inside its portfolio.

    Bitcoin IRA’s main focus is to put your resources such as money or gold, or silver into investment and earn a profit in exchange.

    Difference between traditional and advanced cryptocurrency IRA or bitcoin IRA:

    Also, Traditional individual retirement accounts (IRAs) are a great method to give future financial security. Even it is a good way to invest, but it needs new and enhanced technology that clients most need, including Bitcoin and other cryptocurrency forms of money.

    Since Bitcoin is an advanced and tangible resource, cryptocurrency IRAs require specific services; more protection against the insurance of sensitive information, and profound skill in digital currency trading. Look into the following benefits anyone can get by cryptocurrency IRA:

    Tax-free growth:

    The most demanding and required form of holding bitcoin currency is to hold it as taxable investments. As such, purchasing and selling resources are dependent upon capital gains charges. By focusing on some traditional tax-diversification or resource allocation, you can reduce the duty implications of purchasing and selling trades.

    That is why that self-directed IRAs enable retirement savers to put resources into digital forms of money in a tax-free account. They do so by matching self-directed IRAs with a cryptocurrency wallet that works as an uncommon record for virtual financial standards. Also, This helps to decrease any extra charges or duties, or taxes.

    Easy and simpler process:

    Also, Purchasing and trading Bitcoin IRA improves the process by a reasonable amount. When resources purchase and exchange in an IRA; your IRA doesn’t pay charges on the amount in the years it trades crypto. Also, This is a huge benefit. All profit produced by resources the record develops on a tax-free growth; and, you pay fee charges on that services offered in a retirement account, dependent upon the sort of IRA platform you have. It makes the process easy and simpler. Just pay for what you have received and let your resources turn into a huge profit.

    Diversification:

    Also, Putting resources into cryptocurrency IRA could add expansion to your portfolio. The online cryptocurrency IRA offers the services to put resources into a wide collection of assets, including land or property, private entities, promissory notes, valuable metals, crypto money, etc.

    Introduction to Crypto Bitcoin or Cryptocurrency IRA Meaning Definition Benefits Dig deeper Difference Image
    Crypto, Bitcoin, or Cryptocurrency IRA: Meaning, Definition, Benefits, Dig deeper, Difference; Image from Pixabay.
  • Economic reforms: Meaning, Definition, Need, and Achievements

    Economic reforms: Meaning, Definition, Need, and Achievements

    Economic reforms in India – Introduction; The performance of the Indian economy within the last decade has been remarkable. Business environment easy – This can partly attribute to the continued economic reforms. Since 1991, the govt of India has introduced diverse economic reforms to tug the country out of the depression and to accelerate the speed of growth. Also, The reforms have embraced almost all aspects of the country’s economy.

    Economic reforms: Introduction, Meaning, Definition, Importance, Need, and Achievements

    Policies concerning industrial licensing, trade and foreign investment have undergone major changes. Also, significant macroeconomic adjustments have taken place. Economic institutions too have undergone a significant change; the banking sector and capital markets, in particular, have been major targets of the change. And finally, structural adjustments covering areas like subsidies, the price Mechanism, and the public sector have also taken place. Collectively, these reforms aim at the modernization of the country’s industrial system, removal of unproductive controls, strengthening of private investment, including foreign investment, and integration of India’s economy with the global economy.

    In one word, it can be said that the all-around opening up of the country’s economy has been the essence of the reforms. All these economic reforms knowing as the new Economic Policy. Accordingly, New Economic Policy refers to all those different economic reforms introduced since July 1991 or policy measures and changes that aim at increasing productivity and efficiency by creating an environment of competition in the economy.

    Meaning and Definition of economic reforms:

    Economic reforms or new policy refers to varied policy measures and changes introduced since 1991. The common objective of all these measures is to improve the productivity and efficiency of the economy by creating a more competitive environment therein.

    The reforms are often classified into two broad categories:

    Changes in the sphere of industrial licensing policy and foreign trade as well as foreign investment policies belong to the first category. Also, Reforms touching the macroeconomy and economic institutions plus structural adjustments covering areas like subsidies, price environment, and public sector, belong to the second category. All these initiatives collectively mention because of the New Economic Policies (NEP).

    Importance and Need for Economic Reforms or New Economic Policy:

    About five decades back (1st April 1951) India had commenced its journey to economic development on the path of a socialistic pattern of society and mixed economy. So far India has completed 9 five-year plans. There is no denying the fact that in these five decades Indian economy has achieved many successes but the number of failures is by no means small. During the period of planning the public sector was given utmost importance. Also, The private sector was largely kept under government control. Trade and industry were subjected to many restrictions. Bureaucracy and red-tapism were the normal features of the economy. The cumulative effect of all this was that at the end of June 1991, the country landed in an unprecedented economic crisis.

    Stores of unfamiliar trade were only adequate to pay for fourteen day’s imports. New loans were not available. Enormous sums were being removed from the records of non-private Indians (NRIs). The faith of the international community in the Indian economy was shaken. Industrial progress was in reverse gear and prices were skyrocketing. To haul the economy out of monetary emergency and to put it on the way to quick and consistent financial development; it was generally fundamental to address monetary disequilibrium, check expansion, the right unfriendly equilibrium of installments, and recharge trade saves. To achieve all these objectives, the introduction of economic reforms or an appropriate economic policy was considered inevitable.

    The importance and need for economic reforms or the New Economic Policy were felt predominantly in light of the accompanying reasons.

    Increase in Fiscal Deficit:

    Before 1991, the monetary shortfall of the public authority had been mounting quite a long time after year because of the constant expansion in its non-advancement use. Also, Financial A shortage implies the contrast between absolute consumption and all-out receipts with fewer credits. It is equal to add up to borrowings by the public authority. In 1981-82, it was 5.4 percent of total national output (GDP). In 1990-91, it rose to 8.4 percent of GDP.

    To meet the monetary shortfall, the public authority obliges to raise advances and pay interest consequently. Consequently, because of the persevering ascent in the financial shortage, there was a relating ascend in open obligation and interest installment risk. In 1980-81, interest installment on open obligation added up to 10 percent of complete government consumption. In 1991, the measure of interest risk rose further to 36.4 percent of complete government use. There was not kidding anxiety that the public authority was quick-setting out toward an obligation trap.

    Increase in Adverse Balance of Payments:

    The equilibrium of an installment is the distinction between absolute fares and all-out imports of a nation. Exactly when outright imports outperform full-scale tolls, the harmony of portions gets threatening. Also, The public authority conceded assorted sorts of motivating forces and concessions to the exporters under the fare advancement program, yet the fare didn’t ascend to the ideal degree. It was fundamentally because in the global market our fares couldn’t contend in cost and quality.

    This was the immediate consequence of the arrangement of assurance so generously sought after by the public authority and for such a long time. As against the moderate development of fares, there was a quick expansion in imports. Subsequently, the equilibrium of installments shortfall expanded without question. The shortage of the equilibrium of installments had been rising consistently since 1980-81. For example, in 1980-81, the equilibrium of installments on the current record was unfavorable to the tune of Rupees 2,214 crore and it rose in 1990-91 to Rupees 17,367 crore. To meet this insufficiency a tremendous proportion of new credits should obtain.

    Gulf Crisis:

    Under the Iraq war in1990-91, costs of petroleum shot up. India used to get a colossal measure of settlements from Gulf nations in unfamiliar trade all that halted completely. Inlet emergency consequently further complimented as of now an antagonistic equilibrium of installments position. This has expanded the equilibrium of installments shortfall definitely.

    Fall in Foreign Exchange Reserves:

    In 1990-91 India’s new exchange saves tumble to a specific level that the identical was adequately not to cover for an import tab for even 10 days. Unfamiliar trade saves that were Rupees 8,151 crore in 1986-87 declined pointedly to Rupees 6,252 crore in 1989-90. The circumstance developed so intense that the Chandrashekhar government needed to contract the nation’s gold to release its unfamiliar obligation overhauling commitment.

    Ascend in expenses:

    In India, costs continued rising high. The normal yearly pace of expansion expanded from 6.7 percent to 16.7 percent. The fundamental explanation behind expansion or a yearly pace of expansion in costs was a quick expansion in the stockpile of cash. This, thusly, was because of the over top hotel to the shortage of financing by the public authority. Shortage financing infers getting from the Reserve Bank of India by the public authority to meet its shortfall. Bank offered this development by printing new money notes. The expense of creation takes an upward bounce because of the high pace of expansion. It unfairly impacts local and new interest in our things.

    Lackluster appearing of Public Sector Undertakings (PSU):

    In 1951 there were just 5 undertakings in the public region in India anyway in 2001 their number rose to 232. Two or three thousand crores of public resources were added to that. In the underlying 15 years, their working was very agreeable yet from that point the majority of these endured misfortunes. As a result of their terrible showing. Public area endeavors deteriorated into a risk.

    Because of the above convincing elements, it got inescapable for the public authority to embrace the New Economic Policy. It was even more important to increment mechanical yield and pull in unfamiliar capital.

    Some Basic and Advanced Achievements of Economic Reforms:

    The second economic reforms were reported in July 1991; there was an inclination that the public authority was slackening a portion of the controls. The troubles and postponements related to the previous arrangement of controls were currently expected to evaporate. Fourth biggest economy (US dollar 3 trillion GDP) as far as Purchasing Power Parity after the USA, China, and Japan. The basics of the Indian economy have got solid and stable.

    The large scale economic pointers are at present the best throughout the entire existence of autonomous India with high development, solid unfamiliar trade holds, and unfamiliar venture and powerful increment the basics of the Indian economy have gotten solid and stable. The full-scale economic markers are at present the best in the historical backdrop of autonomous India with high development, sound unfamiliar trade saves, and unfamiliar speculation and hearty expansion in fares, and low swelling and financing costs.

    Likewise, a portion of the significant achievements of economic reforms can summarize as follows:

    First achievements
    • The growth pace of the economy regarding GDP development got and arrived at a pinnacle pace of 8.4 percent in 2002-03. A novel element of the progress of the Indian economy is that it has become the second-quickest developing economy of the world in the year 2003 – 04. In the monetary year 2004 – 05, the GDP development has arrived at the midpoint of 6.9% (assessed). India has recorded one of the most noteworthy development rates during the 1990s. The objective of the tenth five-year Plan (2002-07) is an 8% development rate.
    • India’s administration area developed by 9.4% in 2004-05. Unfamiliar direct speculations have expanded from under 0.05 percent of GDP to more than 0.4 over a penny of GDP in 2002-03.
    • The unfamiliar trade holds have arrived at a record level of US dollar 138.84 billion in June 2005. Also, The agreeable circumstance of forex holds has encouraged further unwinding of unfamiliar trade limitations and a continuous move towards more prominent capital record convertibility. As per the IMF (2003 report), India’s Forex Policies by worldwide prescribe procedures.
    Second achievements
    • The unfamiliar trade save has expanded quickly. In 1990-91, the unfamiliar trade saves were sufficient to back imports for 2.5 months. In 2002-03, they are sufficient to back imports for 11 months. Unfamiliar Exchange Reserves (US dollar 138.84 billion) presently far surpass Foreign Debt (US dollar 113 billion as of September 2004).
    • The short-term obligation is under 4 percent of the stores. In March 1991 Forex Reserves including gold remained at dollar 5.8 billion as against the outer obligation of dollar 83 billion. The outer obligation to GDP proportion has improved altogether from 38.7% in 1992 to 17.8% at end of March 2004. This is one of the least among creating economies. The outer obligation in December 2004 was 120.9 billion US dollars. Of these drawn-out NRI, stores are dollar27 billion, business borrowings dollar24 billion, multilateral obligation dollar 31 billion, and respective obligation dollar 18 billion.
    Third achievements:
    • The pace of modern development likewise began ascending from 1993-94 onwards. It arrived at a pinnacle pace of 6.7 percent in 2002-03.
    • The average pace of expansion has been decreased extensively, from almost 13.6 percent in 1991-92 to around 3.4 percent in 2002-03.
    • The Government has chosen to (1) cease getting help from different nations aside from the accompanying nine: Japan, UK, Germany, USA, EU, France, Italy, Canada, and the Russian Federation and (2) to make pre-installment of all respective obligation owed to all the countries aside from the ones referenced previously. Since July 2003, India has become a net leaser to IMF, in the wake of having been a borrower before.
    • The Government has discounted obligations of US$ 30 million due from seven intensely obliged nations as a component of the “India Development Initiative” reported in February 2003. Also, The loan cost keeps on being decreased and is around 6%. This is the most minimal over the most recent thirty years and it is animating utilization and speculation.
    Forth achievements
    • Thanks to the presentation of screen-based exchanging and electronic conveyance, the financial exchange has been genuinely changed. Their joined impact has been to lessen the exchange costs in India’s securities exchange drastically.
    • India is turning into a creation base and a fare center point for assorted merchandise, from horticultural items to vehicle segments to top of the line administrations. Indian firms are presently essential for worldwide creation chains — bringing in sub-gatherings, enhancing them, and re-sending out them.
    • Taking the favorable position of its pool of top-notch logical ability, global enterprises have set up enormous R&D focuses in India. Every one of these qualities has brought about the more noteworthy joining of the Indian economy with the world economy. The exchange has ascended from 21 percent to 33 percent of India’s GDP in 10 years.
    Economic reforms Introduction Meaning Definition Importance Need and Achievements Image
    Economic reforms: Introduction, Meaning, Definition, Importance, Need, and Achievements; Image from Pixabay.
  • Trial Balance: Meaning, Objectives, Advantages, and Limitations

    Trial Balance: Meaning, Objectives, Advantages, and Limitations

    Understand the concept of Trial Balance [In Hindi]. Learn about its meaning, definition, objectives, advantages, methods, and limitations. It is a listing of all the accounts and their respective balances. It is a statement of debit balance and credit balance extracted from ledger accounts on a particular date. This article explains Trial Balance with the topic of Introduction, Meaning, Definition, Objectives, Advantages, Methods, and Limitations. It is a two-column schedule listing the titles and balances of all the accounts in the order in which they appear in the ledger. The debit balances lists in the left-hand column and the credit balances in the right-hand column. In the case of General Ledger, the totals of the two columns should agree.

    Here is the article explaining Trial Balance with the topic of Introduction, Meaning, Definition, Objectives, Advantages, Methods, and Limitations in accounting.

    We, now, know the fundamental principle of the double-entry system of accounting where for every debit, there must be a corresponding credit. Therefore, for every debit or a series of debits given to one or several accounts, there is a corresponding credit or a series of credits of an equal amount given to some other account or accounts and vice-versa. Hence, according to this principle, the total of debit amounts must equal the credit amounts of the ledger at any date. If the various accounts in the ledger are balanced, then the total of all debit balances must be equal to the total of all credit balances.

    If the same is not true then the books of accounts are arithmetically inaccurate. It is, therefore, at the end of the financial year or at any other time, the balances of all the ledger account extract and record in a statement known as Trial Balance and finally totaled up to see whether the total of debit balances is equal to the total of credit balances.

    Meaning of Trial Balance:

    They may thus define as a statement of debit and credit totals or balances extracted from the various accounts in the ledger books to test the arithmetical accuracy of the books. The agreement of the Trial Balance reveals that both the aspects of each transaction have been recorded and that the books are arithmetically accurate. If both sides of Trial Balance do not agree with each other, it shows that there are some errors, which must detect and rectify if the correct final accounts are to prepare.

    Thus, Trial Balance forms a connecting link between the ledger accounts and the final accounts. It is a statement of debit and credit balances taken out from all ledger accounts including cash books. The golden rules that “Accounting equation remains balanced all the time” and “For every business transaction there is an equal debit and credit” shall always prevail in the whole accounting theory. Therefore, the total of all debit balances must be equal to the total of all credit balances. To verify this, a schedule known as they prepare.

    Balances of debits and credits are to extract from all ledger accounts, including cash books, and shown in this schedule. This schedule prepares to assure the management of the arithmetical accuracy of books of accounts. This schedule facilitates the preparation of final accounts. Generally, it prepares at the end of each accounting year; however, it can prepare at the end of each month, quarter, or the end of any chosen period.

    Definition of Trial Balance:

    It is a list of debit and credit balances of all the ledger accounts extracted on a given date. Following are the main definitions of the trial balance;

    Accounting in the first definition is as,

    “Trail balance is the list of debit and credit balances, taken out from the ledger, it also includes the balances of cash and bank taken from the cash book.”

    Accounting in the second definition is as,

    “The statement prepared with the help of ledger balances at the end of the financial year (or at any other date) to find out whether debt total agrees with credit total is called a trial balance.”

    When one account debit, another account credit with an equal amount. Therefore, it is quite evident that the total of debit balances of the ledger accounts of given transactions will be equal to the total of the credit balances. It must state here that the total of the debit balance column must be equal to the total of the credit balance column. This is so because under the double-entry system, for each item of debit there is a corresponding credit, and secondly all the transactions recorded in the books of original entry transfer to the ledger.

    Objectives of Trial Balance:

    The following are the main objectives of preparing the trial balance:

    1] To check the arithmetical accuracy of books of accounts:

    According to the principle of the double-entry system of book-keeping, every business transaction has two aspects, debit and credit. They base on the double-entry principle of debit equals credit or credit equals debt. As a result, the debit and credit columns of they must always be equal. If they do, it assumes that the recordings of financial transactions are accurate.

    Conversely, if they do not, it assumes that they are not arithmetically accurate. Therefore, one important purpose of preparing trial balance is to provide a check on the arithmetical accuracy of the recordings of the financial transactions. So, the agreement of the trial balance is proof of the arithmetical accuracy of the books of accounts. However, it is not conclusive evidence of their accuracy as there may be certain errors. Which they may not be able to disclose.

    2] Helpful in preparing final accounts:

    They record the balances of all the ledger accounts at one place which helps in the preparation of final accounts, i.e. Trading and Profit and Loss Account and Balance Sheet [Hindi]. But, unless they agree, the final accounts cannot prepare. Final accounts prepare to show profit and loss and the financial position of the business at the end of an accounting period.

    These accounts prepare by using the debit and credit of all ledger accounts. Therefore, since the trial balance is a statement of the debit and credit balances of the ledger accounts, it provides the basis for the preparation of the final accounts. So, if the trial balance does not agree, errors locate and necessary corrections are made at the earliest. So, that there may not be unnecessary delay in the preparation of the final accounts.

    3] To serve as an aid to the management:

    By comparing the trial balances of different years changes in figures of certain important items such as purchases, sales, debtors, etc. ascertain and their analysis make for taking managerial decisions. So, it serves as an aid to the management.

    4] To Summarize the financial transactions:

    A business performs several numbers of financial transactions during a certain period. The transactions themselves can not portray any picture of the financial affairs of the business. For that purpose, a summary of the transactions has to draw. They prepare to intend to summarize all the financial transactions of the business.

    5] To Help to detect accounting errors:

    Since the trial balance indicates if there is any error committed in the journal and the ledger. It helps the accountant to locate the error because the starting point of locating errors is trial balance itself. It has been pointed out in an earlier paragraph that if they not agree, the accountant must locate such errors.

    The accountant must give equal emphasis or weight-age to both small and wide differences found in a Trial Balance. Because there may be several errors that have practically compensated the effect of one another producing a small difference.

    Advantages of Trial Balance:

    The important advantages of a trial balance are;

    • To help of summarizes all the financial transactions of the business. Also, presents to the businessman a consolidated list of all ledger balances.
    • It is the shortest method of verifying the arithmetical accuracy of entries made in the ledger.
    • If the total of the debit side/column is equal to the total of the credit side/column, the trial balance says to agree. Otherwise, it implies that some errors have been committed in the preparation of accounts.
    • It helps in the preparation of the final accounts i.e., Trading a/c. Profit and loss a/c and Balance Sheet.
    • To help in locating or detecting errors in accounting balances. As well as, helps the accountant to locate the error. Because, the starting point of locating errors is trial balance itself.
    • They serve as a summary of all the ledger accounts and provides a complete summary report of each account in the ledger.

    Methods of Trial Balance:

    A trial balance can prepare by the following three methods;

    1] Total method:

    In this method, the debit and credit totals of each account are shown in the two amount columns (one for the debit total and the other for the credit total). Under these methods, the trial balance prepares by taking up the total of debits and credit of all ledger accounts.

    2] Balance Method:

    In this method, the difference of each amount extracts. If the debit side of an account is bigger in amount than the credit side. Also, the difference is put in the debit column of the Trial Balance and if the credit side is bigger. The difference writes in the credit column of the Trial Balance. Under these methods, only the balances of all the ledger accounts take up to prepare the trial balance.

    3] Compound Method:

    The compound method is the combination of both the methods, total method, and balance method. Thus, the compound method also knows as a total cum balance method.

    Limitations of Trial Balance:

    The following are the main limitations of the Trial Balance;

    • They can prepare only in those concerns where the double-entry system of accounting adopts.
    • Though trial balance gives arithmetic accuracy of the books of accounts but there are certain errors. Which not discloses by the trial balance. That is why it says that trial balance is not conclusive proof of the accuracy of the books of accounts.
    • If the trial balance does not prepare correctly then the final accounts prepared will not reflect the true and fair view of the state of affairs of the business. Whatever conclusions and decisions are made by the various groups of persons will not be correct and will mislead such persons.
    • When the accountant makes an excess debit; or, excess credit entry although the same being neutralized by excess credit; or, excess debit respectively in the same or another account, such error recognizes as an error of compensation.
    • When if the wrong amount writes at the initial stage then also the error can not disclose through the totals of trial balance are agreed upon.
  • Minimum Wages: Definition, Arguments, and Objectives

    Minimum Wages: Definition, Arguments, and Objectives

    Minimum wages can stand set by statute, the decision of a competent authority, a wage board, a wage council, or by industrial or labor courts or tribunals. Minimum wages can also exist set by giving the force of law to provisions of collective agreements. It commonly accepts that workers should give at least minimum wages to enable them to lead a minimum standard of living. Then a question arises – What is a minimum wage? It is, however, difficult to define “minimum wage’’. However, it may define as a wage that is just sufficient for the worker to keep his body and soul together.

    Introduction to Minimum Wages: Meaning, Definition, Arguments, and Objectives.

    First, do you know “What does mean the Wages?” Now learn, that the Minimum wage has stood defined as the minimum amount of remuneration; that an employer requires to pay wage earners for the work performed during a given period; which cannot reduce by collective agreement or an individual contract. The purpose of minimum wages is to protect workers against unduly low pay. They help ensure a just and equitable share of the fruits of progress to all; and, a minimum living wage for all who stand employed and in need of such protection.

    Definition of Minimum Wages:

    They can also be one element of a policy to overcome poverty and reduce inequality, including those between men and women. Minimum wage systems should define and design in a way to supplement and reinforce other social and employment policies, including collective bargaining; which uses to set terms of employment and working conditions.

    The committee on fair wages defines the minimum wage as an irreducible (minimum) amount considered necessary for the sustenance of the worker and his family; and, the preservation of his efficiency at work. The Fair Wages Committee considered that “a minimum wage must provide not merely for the bare subsistence of life but the preservation of efficiency of the worker. For this purpose, the minimum wage must also provide for some measure of education, medical requirements and amenities”.

    As well as:

    Such a minimum wage may fix by an agreement between the employer and the workers but it is generally determined by legislation. The workers generally demand that the minimum wage should base on the standard of living but the employers argue; that it should base on the productivity of labor and the capacity of the industry to pay.

    Minimum wages defines as,

    “The minimum amount of remuneration that an employer requires to pay wage earners for the work performed during a given period; which cannot reduce by collective agreement or an individual contract.”

    But it should note that while fixing the minimum wage, the worker’s family should also take into account. The wage should sufficient not only to maintain himself but also his family in a reasonable standard of living. Then a question arises – What is the size of the worker’s family? It now generally accepts that a worker’s family consists of five-person – the worker and his wife and three children.

    Minimum Wages Definition Arguments and Objectives Image
    Minimum Wages: Definition, Arguments, and Objectives; Image credit by thedailybeast.

    The minimum wage must fix in such a way that it is sufficient to provide a reasonable standard of living to the worker and his family. Thus, while fixing the minimum wage, three principles should take into account – the living wage, the fair wage, and the capacity of the industry to pay. While fixing the minimum wage, the capacity of the industry should take into account. If a particular industry is not able to pay the minimum wages to its workers; then it has no right to exist in the business.

    Background:

    A minimum wage was introduced by the Labour government on 1 April 1999 at a rate of £3.60 per hour for workers over 21 years of age, and £3 per hour for 18–21-year-olds; this was raised by 10p per hour in 2000. At the time, the Low Pay Unit estimated that 2 million people (8.3 percent of the workforce) would gain from this, the main beneficiaries being women, especially in social care (e.g. child care) and cleaning jobs. Other areas where there is traditionally low pay, and which would benefit, were young people (200 000); hospitality (295 000); and retail (300 000).

    Arguments for introducing a Minimum wage and also Against:

    The following are;

    For introducing:
    Arguments for introducing a Minimum wage
    Arguments for introducing a Minimum wage.
    For Against:
    Arguments against introducing a Minimum wage
    Arguments against introducing a Minimum wage.

    Objectives of Minimum wages:

    The objectives of minimum wages are as follows:

    • To prevent the sweating of workers in organizing or unorganized industries.
    • Prevent the exploitation of workers and enable them to obtain wages according to their productive capacity, and.
    • Maintain industrial peace.

    In organized industries where the trade unions are powerful; the employers generally yield to the demands of the workers for fixing a proper wage. But in the unorganized industries where the trade unions are not found, government interference and legislation become essential to ensure that the laborers do not exploit and pay at least the minimum wage.

  • What is Persuasion? Introduction, Meaning, and Steps

    What is Persuasion? Introduction, Meaning, and Steps

    Introduction to Persuasion is an important objective of communication. This article about Persuasion explains with their topics – Introduction, Meaning, Definition, and Steps. It may define as an effort “to influence the attitudes, feelings, or beliefs of others, or to influence actions based on those attitudes, feelings, or beliefs”. Buyers have often to persuade to buy a particular article available with the seller in place of the one they wanted to buy.

    Persuasion: Introduction, Meaning, Definition, Steps, and Elements.

    In the office or the factory, the lazy, the incompetent and the disgruntled workers have to persuade to do their work. It is better to use them than compulsion. But even persuasion seeks to change beliefs and attitudes, which people do not like at all. So to be successful, they have to be indirect and suggestive.

    The buyers and the workers should so manipulate that they change their mind without getting conscious of the change, or if they are conscious, they believe that the change is to their advantage. After introduction, it conforms – Persuasion is an art, which has to learn with great care.

    Meaning of Persuasion:

    Meaning – Persuasion needs conviction on your part. You should genuinely convince that the alternative course of action suggest by you is in the interest of the organization as well as in the receiver’s interest. You must not try to persuade others from a purely selfish motive. Do not impose yourself on the receiver of your communication. Give indirect hints and subtle suggestions.

    Bring yourself to the level of the other person. Try to look at the issue from his point of view and mold your arguments accordingly. They refer to various deliberate methods that people use to change other people’s attitudes and thoughts. This is a technique that is widely used in speech-making and advertising as a means of convincing the listener of the correctness or desirability of the ideas or goods involved. In our everyday lives, we’ve all known people that are very good at convincing others to do things for them. This is persuasion in action.

    Definition of Persuasion:

    There are many definitions of persuasion. Some emphasized the internal motive of the audience more than using logic.

    Birembeck and Howell said,

    “Persuasion is the conscious attempt to modify thought and action by manipulating the motives of men towards predetermined ends.”

    Fotheringham affirmed,

    “Persuasion is that body of effects in receivers that have been caused by persuader’s message.”

    Scheidel began nearer to the type of persuasion we are familiar to, he defined as:

    “The activity in which the speaker and the listener are conjoined and in which the speaker consciously attempts to influence the behavior of the listener by transmitting audible and visible symbolic.”

    Central to this definition is the notions of conscious internet, message transmission, and behavioral change. They also include sender and receiver which make the components of definition resembling the components of communication.

    Persuasion, from this point of view, depends upon two main aspects:

    • Communication.
    • Intending planning of persuader to affect the audience.

    Depending on previous clarification, we can define as:

    “The intended use of communication to form a desired response from receivers to their social environment.”

    Steps of Persuasion:

    The art of persuasion consists of four important steps:

    Analyzing the situation:

    This is the preparatory step. The communicator analyses the situation to find out why they need for persuasion has arisen and what will be the advantages and disadvantages of the new course of action being suggested. He also studies the psychology of the man to persuade to plan a suitable strategy.

    Preparing the receiver:

    It is but natural that people resent being persuaded to change their views or behavior. The receiver has to prepare for it. This can do by putting him in a pleasant frame of mind. He may compliment on some of his outstanding qualities and achievements. An appeal may make to his adaptability and open-mindedness.

    Delivering the message:

    The third step is to deliver the message. The message should deliver stage by stage, with the help of forceful arguments, beginning with those parts of the message, which are easier to accept and delaying the unpleasant parts as much as possible.

    Prompting action:

    If the first steps have been taking carefully, the receiver of the message will easily persuade to adopt a different course of action (or hold a different view).

    What is Persuasion Introduction Meaning and Steps
    What is Persuasion? Introduction, Meaning, and Steps #Pixabay

    Elements of Persuasion:

    We can underline four elements of persuasion:

    Credibility:
    • Credibility is built on trust and expertise, and it must earn.
    • People will believe you have the expertise and are worthy of their trust if you exercise sound judgment and demonstrate a history of success.
    Understand Your Audience:
    • Identify the decision-makers and centers of influence.
    • Determine their likely receptivity and personal agendas.
    Ensure your argument is concrete:

    What is perfectly sensible to you may elude others — especially those who are already opposed to your ideas and prepared to resist.

    You can improve your chances of persuading them when your case:

    • Is logical and consistent with facts and experience.
    • Strikes an emotional cord.
    • Favorably addresses the interests of the parties you hope to persuade.
    • Neutralizes competing alternatives.
    • Recognizes and deals with the politics of the situation.
    • Comes with endorsements from objective and authoritative third parties.
    Successful Communication Skills:
    • Don’t mistakenly think that logic and rationality will win out and persuade people to your side.
    • You may inadvertently trigger confirmation bias, a situation in which people become further entrenched in their ideas.
    • Effective communication appeals to people’s emotions, tapping into universal human values and desires.
    • Appeal to both hearts and minds if you want to build and sustain a commitment to your strategic plans.
  • Single Costing: Meaning, Characteristics, and Objectives

    Single Costing: Meaning, Characteristics, and Objectives

    The single Costing method of the ascertainment of the cost of production is suitable for those industries in which manufacturing is continuous and units of output are identical. You will be able to understand the Single Costing based on the points given to them; introduction, the meaning of single costing, the definition of single costing, characteristics of single costing, and objectives of single costing. One operation costing method of costing by units of production and adopts where production is uniform and a continuous affair, units of output are identical and the cost units are physical and natural.

    This article explains the topic of Single Costing: Introduction, Meaning, Definition, Characteristics, and Objectives.

    The cost per single determines by dividing the total cost during a given period by the number of units produced during that period. This method of costing generally adopt where an undertaking engages in producing only one type of product or two or more products of the same kind but of varying grades or quality. The industries where this method of costing uses are the dairy industry, beverages, collieries, sugar mills, cement works, brick-works, paper mills, etc.

    Meaning of Single Costing:

    Single or Unit or Output costing is the method of costing in which cost is ascertained per unit of a single product in continuous manufacturing activity. Every Single or per unit, the cost calculates by dividing total production cost by several units produced.

    This method knows as “Single costing” as industries adopting this method manufacture, in most cases, a single variety of products. This method also knows as “Unit costing”, as not only the cost of the total output but also the cost per unit of output ascertains under this method. Under this method cost units are identical. This method also calls “Output costing”, as the cost ascertains for the total output of a product.

    Definition of Single Costing:

    The following definitions below are;

    According to J.R. Batliboi,

    “Single or output cost system is used in businesses where a standard product is turned out and it is desired to find out the cost of a basic unit of production.”

    The Institute of Cost and Management Accountants, London,

    “output costing is the basic costing method applicable where goods or services result from a series of continuous or repetitive operations or processes to which costs are charged before being averaged over the units produced during the period.”

    From the above definitions, it is clear that this costing is a method of costing under. Which there is the costing of a single product, which produces by continuous manufacturing activity. Though under this method of costing a single variety of product manufacturers. It may vary concerning size, grade, color, etc. The example of industries that make use of this method of costing is; brick, sugar, cloth, coal, cement, fisheries, food canning, quarries, plantation industries, etc.

    Thus single costing adopts for cost ascertainment in those manufacturing organizations. Which is engaging in producing only one type of product or two or more products of the same kind but of varying grades or qualities? This method uses in industries like mines, quarries, oil drilling; breweries, cement works, brick-works, .sugar mills, steel manufacture and aluminum products, etc.

    In all those industries where single costing uses, there is a standard or natural unit of cost. For example, a tonne of coal in collieries, one thousand bricks in brick-works, a quintal of sugar in the sugar industry, a tonne of cement in the cement industry, etc. In this costing, the cost of production usually ascertains by preparing a cost sheet or a cost statement.

    Single Costing Meaning Characteristics and Objectives
    Single Costing: Meaning, Characteristics, and Objectives, #Pixabay.

    Characteristic or Features of Industries Which Use Single Costing:

    The following are the characteristics or features of the industries where the single costing method uses:

    • The cost per unit of output, determined under a single. Costing enables the management to make a real comparison between different periods and between different firms within the same industry, as the unit of output is a common factor between different periods and between different firms within the same industry.
    • Equality of cost is an important feature of this method. That is, under this method, identical cost units will have identical costs.
    • Production is on a large scale and is continuous.
    • The units of production are identical and homogeneous.
    • One cost is the method of costing adopt in concerns where there is a production of a product. Or, a few grades of the same product differing only in size, shape or quality by the continuous process of manufacture. The units of production or output are identical and the costs of units are physical and natural.
    • The cost units are physical and natural and capable of being expressed in a convenient unit of measurement.
    • This method is the simplest method of all the methods of cost; in the sense that the cost collection and the cost ascertainment are quite simple.
    • In most cases, the unit of measure is also the cost unit, viz., one unit (in the case of T.V., radio, camera), 1,000 units (in the case of bricks), one gross (in the case of pencils, slates, bolts, and nuts), one liter (in the case of paints), one tonne (in the case of coal, cement, and steel), one bale (in the case of cotton), etc.

    Objectives of Single Costing:

    Single costing is a very simple method of costing. Its principal objectives are as follows;

    • To ascertain the per-unit cost of production by dividing the total cost of production by the number of units produced.
    • To estimate per unit cost of production for the future and facilitate production planning.
    • Help in the preparation of tenders and fixation of selling prices.
    • To facilitate a comparison of the cost of production of two accounting periods.
    • To control the cost of the product through the comparative study of the costs of any two periods. Or, the comparison of the actual costs with the Pre-determined standard cost.
    • The analyze the expenditure by nature, classify them into the element of cost and know. The extent to which each element of cost contributes to the total cost.
    • To ascertain the profit or loss of production.
  • Personal Selling; Introduction, Meaning, Definition, and Theory

    Personal Selling; Introduction, Meaning, Definition, and Theory

    Personal Selling defines as a hand-to-hand exchange of goods and money or Face-to-face selling in which a seller attempts to persuade a buyer to make a purchase. In the competitive marketplace, the product must be communicated across to the customers. Traditionally, advertising is a tool for communication. However, as the competition has increased, the process of communication has also become more and more complex.

    Here are explain Personal Selling; Introduction, Meaning, Definition, and Theory.

    Personal selling is one of the forms of promotion or marketing communications used by organizations to communicate with the marketplace and drive purchases of their products. Along with advertising, public relations, and sales promotion – personal selling makes up the promotions mix or marketing communications mix of a company. What is the importance and process of Decision-Making?

    #Meaning:

    Meaning of Personal selling; Personal selling or salesmanship are synonymous terms; with the only difference being that the former term is of recent origin, while the latter term has been traditionally in usage, in the commercial world. Since a salesman, in persuading a prospect to buy a certain product, follows a personal approach; salesmanship, in the present-day times is often popularly called personal selling.

    It is the most traditional method, devised by manufacturers, for the promotion of the sales of their products. Before the development of the advertising technique, it used to be the only method used by manufacturers for the promotion of sales. It is, in fact, the forerunner of advertising and other sales promotion devices.

    #Definition:

    Personal selling can define as; direct person-to-person communication between sellers and potential customers, to persuade potential customers to purchase products.

    According to Philips and Duncan,

    “Salesmanship is the art of presenting an offering so that the prospect appreciates the need for it and a mutually satisfactory sale follows.”

    They often occur face-to-face, however, they can also take place through telephone conversations, online video conferencing, or online text communication. Also, Personal selling is an effective way to promote and sell high-priced and/or complex products.

    This is because the person-to-person approach allows for a detailed explanation of products and any individual questions or concerns the customer has can be immediately addressed.

    Personal selling Introduction Meaning Definition and Theory
    Personal selling; Introduction, Meaning, Definition, and Theory. Russia cotton Candy Hands #Pixabay.

    #Introduction, How to Sale?

    Introduction to Personal selling; The marketers of today cannot rely on only advertising the marketing communication mix comprises 5 modes of communication as explained herein;

    • Advertising: Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.
    • Sales promotion: A variety of short-term incentives to encourage the trial or purchase of a product or service.
    • Public relations and publicity: A variety of programs designed to promote or protect a company’s image or its products.
    • Personal selling: Face-to-face interaction with one or more prospective purchasers to make presentations, answer questions, and procure orders.
    • Direct marketing: Use of mail, telephone, fax, e-mail or internet to communicate directly with or solicit & a direct response from specific customers and prospects.

    The present article deals with personal selling as one of the modes for selling. The topic falls within the scope of both marketing communication and sales management. It is the most effective tool, especially in the later stages of the buying process. It is very useful in building buyer preference, convictions, and action.

    Distinctive qualities:

    Personal selling has three distinctive qualities;

    1. Personal confrontations: They involve an immediate and interactive relationship between two or more persons each party can observe the other’s reactions at close hand.
    2. Cultivation: It permits all kinds of relationships to spring up, ranging from matter-of-fact selling relationships to deep personal friendships. Also, Sales representatives usually have the customer’s best interests at heart.
    3. Response: It makes the buyer feel under some obligation for having listened to the sales talk.

    Theory of Personal selling:

    Personal selling is more of an art. Often effective salespersons have an instinct. Yet, it is realizing that proper training can enhance the skills of good salesmen. In present times, it is becoming more and more customer-oriented because no more do are have a buyer’s market.

    Theory of Personal selling - List
    Theory of Personal selling – List

    Three major aspects of personal selling are;

    1. Professionalism.
    2. Negotiations, and.
    3. Relationship marketing.

    Now, explain each;

    Professionalism:

    The belief that good sales are born is giving way to a professional approach to sales activity. As well as, the sales managers realize the importance of training the sales force and spend huge sums of money each year for the same. We find the market flooded with training aids comprising books, video and audio cassettes, CDs, and many more.

    Also, The aim of sharpening the skills of a salesman is to make him more and more effective. All sales training approaches try to convert a salesperson from a passive order taker into an order setter. An order taker is passive and stands dominated by the situation. In order Getter molds the situation in his favor and takes charge to achieve his objectives. What is the IT Professionalism in Information Technology Essay? Also, The modern professional approach to salesmanship stands customer-oriented.

    The act of selling stands projected as aimed at solving the problems of the customers. Such an approach is satisfying the customers more thereby making sales activity more and more effective. Furthermore, the sales personnel are trained to understand the situation and they formulate their reaction because no single approach works in all situations.

    Negotiation:

    Negotiation skills are one of the most important skills of a salesman. Likewise, The two parties need to reach an agreement on price and other terms of sales. A good salesman wins the order without making deep .concessions that will hurt his profitability.

    Also, he must not unduly extract the customer because such an approach will be detrimental in the long run. This process of exchange by way of negotiation is more of an art. Learned by a salesman over time. The professional approach to negotiation identifies the zone of agreement between the seller’s surplus and the buyer’s surplus.

    Such an understanding helps in reaching the agreement point where both parties feel satisfied. Negotiation involves communication that is Focused and planning. Also, A good salesman understands his customer well and then formulates a negotiation strategy.

    Relationship marketing:

    As the salesman becomes close to the customers, the Transactional nature of the selling approach gives way to the relationship approach. Furthermore, the Transactional approach is deal to deal approach centered on short-term gains. Also, The relationship approach is long-term and establishes a relationship between the buyer and the seller.

    Both understand each other and support each other. Sales managers have to realize that it is far easier to get sales from an old customer as compared to getting the same from a new customer. So, it is important to retain existing customers. As well as, Personal selling is the most effective method of building relationships.

    No other means can establish relationships as effectively as personal selling does. So modern salesmen work with a long-term perspective, establishing close customer associations. Such a practice is most evident in banking, airlines, insurance, and investment industries.

  • Production System Introduction Meaning Definition and Elements

    Production System Introduction Meaning Definition and Elements

    What does mean Production System? Introduction; A system is a logical arrangement of components designed to achieve particular objectives according to a plan. A system may have many components and variation in one component is likely to affect the other components of the system e.g. change in the rate of production will affect inventory, overtime hours, etc. A production system is a computer program typically used to provide some form of artificial intelligence. Which consists primarily of a set of rules about behavior but it also includes the mechanism necessary to follow those rules as the system responds to states of the world.

    Here are explain Production System; Introduction, Meaning, Definition, and Elements.

    The production system is the framework within which the production activities of an organization are carrying out. At one end of the system are inputs and at the other end output. Input and output are linking by certain processes or operations or activities imparting value to the inputs. These processes, operations, or activities may call production systems. Also, The nature of the production system may differ from company to company or from plant to plant in the same firm.

    Meaning of Production System:

    The production system is an industrial system that supports manufacturing and logistics. They also involve flows of raw materials, equipment, and event information, as there’s usually paperwork involved. Also, The limits on a production system include its capacity and the quality of the finished product. You may need to know What is the Production Management?

    Meaning of Production:

    Production can explain as an act of either manufacturing or mining or growing of goods (commodities) generally in bulk for trade. Production is a method employing for making or providing essential goods and services for consumers.

    It is a process that puts intangible inputs like ideas, creativity, research, knowledge, wisdom, etc. in use or action. Also, It is a way that transforms (convert) tangible inputs like raw materials, semi-finished goods, and unassembled goods into finished goods or commodities.

    Meaning of System:

    The system is an arrangement or assembly of inter-dependent processes (activities) that are based on some logic and function. Also, It operates as a whole and is designing (build) intending to achieve (fulfill) some objective or do some work. Huge systems are often a collection (assembly) of smaller sub-systems.

    Definition of Production System:

    They may define as,

    “The methods, procedure or arrangement which includes all functions required to accumulate (gather) the inputs, process or reprocess the inputs, and deliver the marketable output (goods).”

    According to Webster,

    “System is a regularly interacting inter-dependent group of items forming a unified whole.”

    The production system utilizes materials, funds, infrastructure, and labor to produce the required output in the form of goods. Also, Do you know what is the History of Production Management?

    Production System Introduction Meaning Definition and Elements
    Production System; Introduction, Meaning, Definition, and Elements. Asia Pottery circle clay #Pixabay.

    Elements of Production System:

    The following elements are below;

    • Inputs: Inputs are the physical and human resources utilized in the production process. Also, They consist of raw materials, parts, capital equipment, human efforts, etc.
    • Conversion Process: It refers to a series of operations that are performing on materials and parts. Operations may be either manual or mechanical or chemical. Also, Operations convert inputs into output. The conversion process also includes supporting activities, which help the process of conversion. The supporting activities include; production planning and control, purchase of raw materials, receipt, storage and issue of materials, an inspection of parts and work-in-progress, testing of products, quality control, warehousing of finished products, etc.
    • Outputs: Outputs are the products or completed parts resulting from the conversion process. The output generates revenue.
    • Storage: Storage takes place after the receipt of inputs, between one operation and the other, and after the output.
    • Transportation: Inputs are transporting from one operation to another in the production process.
    • Information: It provides system control through measurement, comparison, feedback, and corrective action.

    Hence, we can say that the production system is a union or combination of its three main components viz., Inputs, Conversion Process, and Output. In short, everything which is done to produce goods and services or to achieve the production objective is called a production system.