Business Studies 2007 CBSE [ Delhi ] Set III

Any verbal or gestural communication having no documentary proof is known as informal communication.  It is neither authentic nor written. This communication is based upon the friendly relations between employees. The acceptance of this communication is generally made by gestures. This is also known as ‘Grapevine’ communication

According to Philip Kolter Marketing has been defined as "A social process by which individual groups obtain what they need and want through creating offering and freely exchanging products and services of values with others."

Product-mix involves the activities relating to the product, service or idea which are  to be offered. It is the marketing strategy in which product components are discussed and decided. The product has many dimensions. Marketing of the product requires that every dimension of the product should be given due consideration.

The political environment has immediate and great impact on business transactions. Thus, businessman must scan this environment very carefully so as to incorporate changing factors of political environment smoothly without disturbing the working of the organisation.

Here the Initiative Principle is being overlooked.

Initiative Principle: The successful management provides an opportunity to its employees to suggest their new ideas, experiences and more convenient methods of work. The employee, who has been working on the specific job since long discovers new, better, alternative approach and technique of work. It will be more useful, if it is communicated to management

Profession refers to a well defined body of knowledge with service motive along with some ethical codes of conduct according to the concerned association.

Similarly management is a well defined body of knowledge; backed by specialized educational training. Like all other Professions management has certain ethics which all managers should follow.

The three elements of Directing are :

1. Supervision :Letting subordinates know, what to do and seeing that they do it to the best of their ability.

2. Motivation : Something that motivates a person into action and makes him perform continuously and enthusiastically.

3. Leadership : It is an indispensable activity, which every manager has to perform for directing the people, working under him. Leadership is the ability of the manager to induce subordinates to work with confidence and zeal.

Monetary incentives : Monetary incentives motivates employees and increase their productivity. Financial incentives include wages and salaries, bonus, insurance, medical allowance, house rent allowance, dearness allowance, pension and other benefits.

Non-Monetary incentives : These incentives are the Non-monetary in nature. These are paid to all the workers equally. It satisfies their emotional and psychological needs.

For selling gold jewellery I would choose Television as a source of advertising because of following reasons:

(i)   Effective method - T.V. is an effective advertising media because it has the benefits of audio-visual appeal.

(ii)  Wide coverage – Television, these days has wide coverage. It covers not only the place within the country but also foreign countries. Telecasting can be viewed even at the distant place. It has mass appeal.

(iii)  No loss of message – Telecast message reaches the viewers intact. There is no possibility of loss  and distortion of the message in  transit.   

Merits of choosing magazines as a medium for advertising are given as under:

• Wide Circulation : Advertised messages reach mass population in different parts of the country and even the foreign countries.
• Repetitive Value : Advertisements can be repeated and thus prove to be effective in popularising new brand or item.
• Timeless and Flexibilities : Advertised messages can be changed as per the change of events and situations