KALYAN CITY LIFE

Marketing Research plays a significant role in helping Government to perform some of its crucial regulatory functions. It provides an up-to-date market-related data to the government and helps it to monitor, plan, coordinate and regulate the entire economy of its area of jurisdiction. The government studies information provided by MR and uses it to understand the market forces, formulating policies, fixing critical priorities, allocating resources, providing social welfare benefits, regulating a market, stabilising an economy, so on.

Importance of marketing research to government is as follows:

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Principle of Division of Work

In context of this article, let's revise the meaning of following words:

1. Division of something (e.g. an object, a process, work, etc.) means to divide, chop or break it up into smaller parts to facilitate a better understanding, easier handling and operation, and focused observation on a fixed set of goals. It is a way to separate things apart based on some established criteria like quality, quantity, nature of work, so on. It untangles, simplifies, and narrows down various complexities that were involved prior separation. It helps to ease and enhance the efficiency of managing a giant complex task through smaller chunks that are easy to handle.
2. Work is any assigned job, task, duty, goal or an objective one is supposed to accomplish (achieve) before the deadline (on-time) and as expected at the expense of one's mental and physical labour to earn the desired reward (usually monetary but not always) in return.

With this understanding, let's grasp the meaning of division of work:

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Principles of Good Layout

The twelve features, qualities, or principles of good layout are as follows:

Image Credits © Manoj Patil.

Assumptions of Law of Demand

Law of Demand can operate and remain valid only if certain things like income, population size, climate, consumer's tastes and expectations, etc., are assumed to remain constant or equal. In other words, there is a need for an assumption or a consideration that these things do not change at all under any circumstances.

The six basic assumptions of law of demand are as follows:

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Twelve demerits, disadvantages or limitations of planning in management.

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1. Time Consuming

Planning involves the collection of data, analysis of data, forecasting, etc. All this consumes a lot of precious time. Therefore, planning is a time-consuming activity.

2. Costly

Planning is the work of experts. They get paid very high salaries to make good plans. Companies spend an enormous amount of money in collecting and analysing data. Therefore, planning is a costly affair.

Proportional Reserve System

First let's understand the meaning of three words, namely:

1. Proportion means a part, percentage or share of something regarded as a collective whole.
2. Reserve implies something valuable stocked up systematically or stored carefully often on a large scale at a secured location.
3. A System comprises a set of detailed procedures, routines, and methods that are supposed to be followed to perform certain activities.

In Proportional Reserve System (PRS), certain proportion or percentage of the reserves has to maintained in the form of precious metals like Gold. The remaining part of the reserves is to be kept in specific assets such as Government Securities and Commercial Bills. Such a balance is maintained to give backing (support) to the total volume of currency notes issued by the apex central bank of a nation like FED in the USA, RBI in India, etc.^[1]

For example, the Federal Reserve Act (1913) prescribed the Federal Reserve System (FED) of the USA to back currency notes issued by 40% Gold and remaining 60% by Government Securities.^[2]

RBI Issue Currency Notes in India

Reserve Bank of India (RBI) has a sole right to issue currency notes in India. This right is guaranteed only to a particular entity (a person or organization) and nobody else. It is an unshared authority, an exclusive privilege, or a monopoly to do something without open competition. It is usually granted by a sovereign authority (e.g. parliament) to execute significant tasks.

The Section 22(1) of Reserve Bank of India Act, 1934 (amended 7^th January 2013) empowers RBI with a sole right to issue banknotes of all allowed denominations for their circulation in India.^[1]

Currently, the bank notes issued in India range from a higher denomination of ₨.1000 to the lowest denomination of ₨.5.

Determinants of Demand

The following image depicts determinants of demand with their relations.

The factors affecting demand are:

1. Price,
2. Income,
3. Tastes,
4. Price of Related Goods,
5. Consumers' Expectations,
6. Number of Buyers,
7. Climatic Condition,
8. Level of Economic Activity, and
9. Miscellaneous Factors.

Importance of Quality Control

Briefly listed below is the significance or importance of quality control.

Image credits © Prof. Mudit Katyani.

Steps to improve product quality

Quality is not a result of some random process. It does not happen on it own. It is an outcome of some appropriately controlled procedure or steps. Managers have a great responsibility to produce good quality products. They must establish a quality framework in the entire organisation. They must take following steps to improve product quality.

Image credits © Prof. Mudit Katyani.

How to make delegation effective?

The delegation can be made effective by:

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1. Delegation helps Superior focus on Challenging Jobs

Under delegation, a superior (boss) delegates his less important duties, routine tasks and monotonous work to his subordinate (junior). He can then use some of his available free time to focus on other significant matters, important assignments and challenging jobs that are in pending. It saves his precious time and makes him more productive and efficient towards his job commitment. This overall benefits the performance of the organisation.

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Extension and Contraction of Demand

Assuming other factors (or determinants) remain constant (don't change), the change seen in the demand due to a change in the price is called Extension and Contraction of Demand.

The concept of extension and contraction of demand in economics can be studied and best understood with the help of the following graph.

Image credits © Gaurav Akrani.

Sources of working capital

Following are various sources of working capital or short-term finance:

Image credits © Prof. Mudit Katyani.

Factors affecting working capital requirements

14 factors affecting working capital requirements of a business:

Image credits © Prof. Mudit Katyani.

1. Nature of business,
2. Size of business,
3. Time and complexities of manufacturing process,
4. Manufacturing cost,
5. Growth and Expansion,
6. Terms of purchase and sales,
7. Conditions of supply,
8. Market conditions,
9. Business cycle,
10. Operating cycle,
11. Rate of Turnover,
12. Cash requirements,
13. Seasonal variations, and
14. Other factors.

Importance of working capital

Every company needs working capital to meet its short-term expenses. It keeps the business moving. Without it, the business will stop, and the company will become sick.

Explained below is the importance of working capital.

Image credits © Prof. Mudit Katyani.

Concepts of Marketing

The six concepts of marketing are depicted and listed below.

Image credits © Prof. Mudit Katyani.

These include:

1. The concept of Exchange,
2. The concept of Production,
3. The concept of Product,
4. The concept of Sales,
5. The concept of Marketing, and
6. The concept of Societal.

Difference between listening and hearing

Listening is often confused with hearing. Many people use these two words incorrectly in their speeches and writings without giving a second thought to clarify what they truly mean. I hope my comprehensive endeavor in this regards will shed light on this confusion.

Following image briefly depicts the difference between listening and hearing.

Image credits © Gaurav Akrani.

Meaning of human relations

The meaning of human relations is depicted and explained below:

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Essentials of Human Relations

We, human beings, the most intelligent social specie on planet Earth, are mutually interdependent for our sustenance and flourishing. Since many centuries, we have successfully managed to explore, adapt and thrive together in different places in remarkable new ways with endless possibilities. The success of our civilization is not only based on our aspect of intelligence else it also has something to do with our internal emotional side ‐ the so-called 'Soft Side'. Though we are smart and capable enough to think right, react appropriately and orient swiftly surprisingly, we are not always driven by our intellect. Often our emotions drive us more than our logic, and that's what make us special. So, it would be correct to call ourselves, 'Emotional Intelligent Social Beings.'

Image credits © Gaurav Akrani.