Detailed Solutions : A-16/C-17/T-20
INDUSTRIAL MANAGEMENT : JUNE 2003
Q 1. (a)
– C – The founder of
Scientific Management is F.W. Taylor.
(b)
– A - A Matrix
organisation is a combination of Project and functional
organisation.
(c) – D
– Theory X assumes that a typical person dislikes work.
(d) – B
- Grapevine is an informal communication system.
(e)
– A – One of the
authorities under the Industrial Disputes Act, 1947 for
investigation and settlement of
industrial disputes is Courts of
Inquiry.
(f)
– D – The acronym LTPD
is
(g)
– A – Direct Cost is
Direct Material cost and Labour cost.
(h)
– D – Diversification
is guiding activities into different lines of business.
PART I
Q2(a) Management
“Management is the
accomplishment of results through the efforts of other people”
–
“Management
is the art of getting things done through and with people in formally organized
groups”
– HAROLD
KOONTZ.
Q2(b)
Division of Work (or Labour):This is a famous principle of Economics,
invented by the traditional economist, Adam Smith. Fayol had advocated Division of work to take
advantage of specialization which results in increased human efficiency. The structure of organisation should so
divide and group the activities of the enterprise so that they contribute most
effectively and efficiently to enterprise objectives. Division of work means
dividing the work on the principle that different workers (and different
places) are best fitted for different jobs (or things) depending upon
influences arising from geography, natural conditions, personal aptitude and
skills. Division of work leads to specialization. Concept of division of work can be applied to
all kinds of work – managerial and technical.
Advantages of
Division of Labour
Since
the same worker does the same work repeatedly:-
(i)
he gains proficiency and skill on the job and becomes an expert.
(ii) rate of production increases.
(iii)
product quality improves.
(iv)
he is in a position to suggest changes in products, processing or methods of
doing that work.
Disadvantages of Division of Labour
(i)
Division of labour gives rise to loss of craftsmanship, workers become Machine
– minders and no more.
(ii)
With the passage of time, the same job becomes dull and monotonous.
(iii)
Workers do not remain all-rounders and one cannot work in place of another if
he is absent.
Q2(c)
(i) Dummy Activity: Every project consists of a number of job operations
or tasks which are called activities. An
activity is an element of a project and
it may be a process, a material handling or material procurement cycle. A dummy
activity does not consume time. When two
activities start at the same instant of time, the head events are joined by a
dotted arrow and this is known as dummy activity. A dummy activity may be non-critical or
critical. It becomes a critical activity
when its Earliest Start Time (EST) is same as its Latest Finishing Time (LFT).
(ii) Critical Path:It is that sequence
of activities which decide the total project duration. Critical Path is formed by critical
activities. A critical path consumes
maximum resources. It is the longest
path and consumes maximum time. A
critical path has Zero float. The
expected completion dates cannot be met, if even one critical activity is
delayed. A dummy activity joining two
critical activities is also called a critical activity. A critical path reveals those activities
which must be manipulated by some means or the other, if the scheduled
completion dates are to be met.
Q3(a) Delegation:There is a limit to what
an individual can perform single-handed.
After a point, other persons working in the organisation have to be
associated for performing the task or decision-making. This is known as delegation of
authority. Delegation of authority means
granting of authority to subordinates to operate within prescribed limits. The
principle of parity of authority and responsibility states that in delegating,
managers must match the responsibility of subordinate with the grant of
commensurate authority. Assignment of duties or tasks without adequate
authority will render a subordinate ineffective. Authority without matching responsibility
will make him irresponsible. If
authority exceeds responsibility, the extra authority may be used arbitrarily,
capriciously or without adequate consideration of the effect on others. If
responsibility exceeds authority, we would in effect holding persons
accountable for things they cannot control/change. An ideal delegation is one which ensures a
proper balance between responsibility & authority. Authority and responsibility are co-extensive
terms, i.e, the two go together. Thus,
in the process of delegation of authority, this parity between authority and
responsibility must be taken care of. No
subordinate could be held responsible for showing those results for which no
authority was granted to him. Thus,
there has to be an equitable balance between authority and responsibility.
Q3(b)
Organisation Structure: Organisation structure is the systematic
arrangement of the people working for the organisation in order to achieve
predecided goals. Organisation structure
is concerned with the establishment of positions (persons) and the
relationships between positions. The
structure provides an appropriate frame work for authority and responsibility
relationships between various positions. In designing the organisation
structure, there are two main considerations :-
- Differentiation
and
- Integration
Differentiation
means differences in cognitive and emotional orientation among managers in
different departments and the differences in the formal structure of these
departments. Integration refers to the quality of the state of collaboration
that is required to achieve unity of effort.
Various departments are integral part of the whole system. Design structure of one department may be
different from that of the other, because each department is interacting with
the environment in a different way. The
overall objective of organisational designing should be integration of
activities and authority roles and relationships existing in different
departments.
Steps involved in Organisation Design
The steps involved are:-
(i)
Understand and formulate the
objectives and goals of the organisation
and
the nature of business to be carried out.
(ii) Determine the
functions necessary to achieve the objectives of the organisation.
(iii) Related functions – eg, Inventory
Control, Production Control and Quality Control can be grouped together.
(iv) Examine
all the functions and outline the various positions to be filled to take up
those functions.
(v) Prepare
job descriptions, duties and responsibilities of each position.
(vi) Fill up all the positions by recruiting
suitable persons either from outside or from within, by upgrading the existing
personnel after giving them extensive appropriate training.
Q4(a) Communication:An organisation
structure provides channels for the flow of information on which the decisions
of the organisation will be based. As
such, an organisation can be described as the network of communication
channels.
Downward
communication moves downward in an organisation. The formal communication between a superior
and subordinate where the superior sends instructions or directions to his
subordinates is downward communication.
This downward communication from the superior to the subordinate must be
:
- Complete
in all respects
- Issued
in a clear language
- Timely
- Rational
- Capable
of implementation
- In
writing
- Explained
clearly as to its purpose
- Brief
and to the point
Upward
Communication moves from subordinate to
the superior in the form of feedback. It
takes the forms of :-
-
Reports by Subordinates to their Superiors
-
Grievances and Problems
-
Suggestions and Ideas.
-
Clarifications sought by subordinates.
Q4(b) Hygiene Factors:Maslow’s Need
Hierarchy Theory on Motivation has been modified by Fredrick Herzberg and his
associates. Their research purports to
find a two-factor theory of motivation.
In one group of needs are such things as policy and administration,
supervision, working conditions, interpersonal relations, salary, status, job
security and personal life. These were
found by Herzberg and his associates to be only dissatisfiers and not
motivators. In other words, if they
exist in a work environment in high quantity and quality, they yield no
dissatisfaction. Their existence does
not motivate in the sense of yielding satisfaction, but their lack of existence
would, however, result in dissatisfaction.
These were referred to as ‘hygiene Factors’.
Q4(c) The three important traits required for a
coach of a cricket team are:-
(i) Decisiveness - The
coach is constantly taking various decisions with regard to type of coaching
required, time for resting of players, type of bowling to be done at different
types of pitches, the batting line up for various matches, etc. Therefore, the coach has to be capable of
guiding the captain in taking the right decisions, especially at critical
moments of the match.
(ii)Maturity
– Only a person who has a reasonable
maturity level will be able to guide and coach the team players. The team will have players belonging to
different religions, regions and temperaments.
Only a matured coach with the right attitude will be able to tackle,
motivate and guide such diverse players into action.
(iii)Popularity
- The Coach has to be endearing to all the members of the
team. This is possible only if he is
popular. A popular coach will be able to
get things done through the players more easily and effectively.
Q5(a) Man-Power Planning:Man-power Planning
is the planning done in relation to the man-power resources(or the human
assets) of the enterprise. It might be defined as the process, which is
undertaken for matching or balancing, the manpower demands of an enterprise –
both in the short-run and the long run – with the supplies of manpower. The
objective is to provide the right man at the right job, at the right time –
through the formulation and
implementation of the suitable personnel programmes and policies. Importance of
Man Power Planning in Human Resources Management are as below:-
-
Matching jobs with personnel
-
Avoiding shortage/surplus of staff
-
Commenting on the current manpower
position
-
Forecasting future manpower needs
-
Control over wage/salary costs
-
Optimum utilisation of manpower
-
Formulation & Implementation of
operational plans
-
Integration with entire managerial
process
Q5(b) Psychological Tests:Psychological
Tests are conducted with a view to ascertaining the mental suitability of the
candidate for performing a particular job in a social situation. Some of the popular psychological tests are:-
(i)
Intelligence Tests –
These are conducted for having an idea of the intelligence of a person with
reference to an examination of mental traits like mental alertness, power of
reasoning, power of memory, originality, Initiative etc.
(ii)
Interest Tests
– These tests are designed and given to candidates to understand their areas of
interest.
(iii)
Aptitude Tests –
Aptitude means natural ability to acquire knowledge or skills. The purpose of these tests is to find out the
potential of individuals for development on the jobs of their interest.
(iv)
Personality Tests
– These tests are conducted to assess the Self Confidence, Temperament,
Dominance, Courtesy, Emotional Maturity, Value System, Team spirit etc. of the
individual.
Q5(c) Methods of ‘On – the Job Training’ for
Managers:
(i) Experience
– Under this method a person who is to act and perform as a manager, is placed
on some appropriate managerial position and is expected to develop as a manager
– through learning from the experience.
(ii) Coaching -
Under this method a new manager is taught the art of managing by a
senior experienced manager, known as coach.
(iii)
Understudy
– Under this method, a junior manager works under the instructions and guidance
of some Senior manager, with the intention that after the period of training,
the junior manager will take over the position of the senior manager. During the period of training the junior
manager is called as an ‘Understudy’.
(iv) Position
Rotation – It is that method of managerial development,
whereby one manager is rotated among several managerial positions at the
horizontal level – in different departments, at regular intervals of time.
(v) Special
Projects –A Special project might be assigned to a manager,
which is a piece of task outside the scope of his normal functions. This helps
him to learn new things.
(vi)
Placement On Committees
– When a manager is placed on a Committee as a special member of that
Committee, he not only develops
conversational powers but also comes to learn – interacting with
others. It develops his human relations
skill.
(Vii) Selective
(Viii) Case Study Method
- Here a manager is provided
with a case from a real-life organisational situation, pertaining to a specific
managerial area.
(ix) Brain-Storming
- Here a problem is posed before a
group of trainee-Managers, and ideas are invited from them for a solution to
the problem.
(x) Multiple Management
- Under this method, there are two
Boards of Directors - a Senior Board and a Junior Board. The Junior Board is
the a training ground for getting eligibility to placement on senior Board. The
members of the Junior Board acquire sufficient experience of handling
organisational issues before assuming the responsible roles as members of the
Senior Board.
Q6(i) Planning & Controlling Planning:Planning
can be defined as deciding in advance about the objectives to be pursued by the
enterprise, the selection of best alternative course of action to reach those
objectives and a specification of activities-technical, financial, personnel,
etc, required for the implementation of the pre-selected courses of action.
Planning is goal oriented. It has a reference to future. It is the primary
function of Management. It involves choice and it is an intellectual exercise.
It is all-pervasive. It is both long-range and short range. It is continuous.
It is actionable. It is flexible. It is an integrated system. Policies,
Procedures, Rules and Methods are aids to planning. Planning helps management
to face future with greater strength and confidence. It helps to focus
attention on objectives. It leads to operational life of the enterprise along
the most efficient lines. It enables the exercise of control and provides
various parameters for control. It guides decision-making process. Planning
provides a sense of direction to action. It helps creativity and innovation.
Planning facilitates coordination and cooperation.
Controlling
Controlling
is defined as that managerial function which seeks to ensure an absolute
conformity of actual performance by organizational personnel with the planned
standards, to facilitate the most effective and efficient attainment of the
enterprise objectives. Controlling is
the ‘Central-tendency point’ in the performance of managerial functions. It
makes a bridge between standards of performance and their realistic attainment.
It is a pervasive managerial exercise. Controlling implies a follow-up action
to other managerial functions. It is based on information feed-back. It is a
continuous managerial exercise. The steps involved in controlling are:-
·
Determination of standards of
performance.
·
Measurement of actual performance.
·
Comparison of actual performance with
standards.
·
Analyzing the causes of deviation.
·
Undertaking suitable remedial action
to correct the deviation.
The
primary objective of controlling is to bring the actual operational performance
of the enterprise on the right track as per standards of control. Controlling
infuses confidence into the operational life of the enterprises. It improves
managerial decision-making. It helps in attaining maximum production at minimum
cost. It is a moral check on employees. It judges managerial competence. It
aids delegation and decentralization of authority.
Q6(ii) Difference
Between Classical Theory &Neo-Classical Theory of
Organisation.:The classical theory has its origin
in the writings of
The
classical theory considers organization structure as impersonal and mechanical,
whereas Neo-classical theory considers organization as a social system.
The
focus of classical theory is on work and economic needs of workers, where-as
Neo-classical theory focuses on small groups and on emotional and human
qualities of employees.
The
Emphasis of classical theory is on order and rationality, whereas, the emphasis
of Neo-classical theory is on personal security and social needs of workers.
According
to classical theory, organizational behaviour is a product of rules and
regulations, whereas Neo-classical proponents view organizational behaviour as
a product of feelings and sentiments and attitudes.
Classical
theory propagates authoritarian practices, elaborate rules and regulations to
obtain results, whereas, Neo-classical theories propagate democratic practices
and encourage involvement of employees in decision-making. They recognise the
importance of human dignity and values.
Classical
theory results in dissatisfaction and work alienations among workers, whereas,
Neo-classical theory results in happy and satisfied employees trying to
increase production.
Q6(iii) Performance
Appraisal: Performance appraisal is a systematic and impartial
assessment of an employee’s performance on the assigned job, with a view to
discovering how well or worse is the job being performed by him/her and also
unearthing his/her potential for further development. Performance Appraisal is
concerned with measuring differences among individuals as far as their job-performances
are concerned. The methods used in performance appraisal of employees are
Ranking method, Paired Comparison Technique, Graphic Rating Scale, Forced
Distribution Method, Critical Incident method, Checklist Method, Forced
choice-Description Method, Field-Review Method & Confidential Report
Method.
Performance
Appraisal helps in operational decision making in personnel management,
provides clues to management for effecting improvements in selection procedures
and placement of employees, helps in advising and directing the personnel
department to design and implement suitable training programmes for the
betterment of employee performance. It guides employee development and
encourages healthy competition among employees. It seeks to discover the potential
for growth in employees. It attracts good employees to the organization. During
the process of performance appraisal, the management gets an idea of the
difficulties faced by employees. It seeks to evaluate employee performance in a
systematic manner.
Q6(iv)
Management Skills:The
skills required of a successful manager,
whether he is working in a industry, business organization, an
educational institute or a hospital etc. can be classified as follows: -
(a) Technical Skills.
(b) Conceptual Skills.
(c) Human Relations Skills.
Technical
skill refers to the proficiency in handling methods, processes and techniques
of a particular kind of industrial/business operation. It is essential for a
manager to know which technical skill should be employed in a particular work.
Technical skill is essential for lower level management.
Conceptual
skill is the ability to see the organization as a whole, to recognize
inter-relationships among different functions of the business and external
forces, and to guide effectively the organizational efforts. It is critical in
top executive positions. It is easier to learn technical skill than the
conceptual skill. Conceptual skills are decision-making skills (ability of the
person to take timely and accurate decisions) and organizational skills(they
help fix different people at different jobs).
Human
Relations skill refers to the ability to work effectively with others and build
cooperative work groups to achieve organizational goals. Communicating skills
(ability to pass on information to
others effectively) and motivating skills (inspiring people to do what you want
them to do) are the two Human Relations skills.
The
Need for skills at different levels of Management is given in the following
diagram:-
PART II
Q7(a) Industrial Relations: Industrial
Relations(IR) is that aspect of management which deals with the manpower of the
enterprises whether machine operators, skilled workers or managers. It is also
defined as the relations between employers and employees in the industry.
Cordial
and peaceful Industrial Relations between the employees and employer are highly
essential for increasing productivity and the economic growth of the country.
Through good industrial relations only, the enterprise can move towards the
welfare of the employees and the management of the concern. Industrial
relationship is the composite result of attitudes and approaches of the
employees and management towards each other with regard to planning, supervision,
direction and coordination of the activities of an organisation with a minimum
of human effort and friction with an animating spirit of cooperation and with
proper regard for the genuine well being of all members of the organisation.
Causes of Poor Industrial Relations
vis-a-vis conditions for good IR are: -
(i) Inadequate fixation of wages and wage
structure – There is a need for payment of fair wages and adequate wage
structure, as well as, establishment of satisfactory working conditions.
(ii) Dispute
on sharing the gains of productivity – There is a need for adoption of a policy
which ensures to the workers an equitable share of the gains of increased
productivity.
(iii) An
intolerant attitude of contempt on the part of management towards the workers –
There is a need for recognition by the employer that the workers are a part of
the team working towards common objectives of the organisation.
Q7(b) Compensation: An employer is not
liable to pay compensation to an employee under the following circumstances/occasions:
-
(i) When the injury disables a workman for
less than 3 days.
(ii) When
injury is caused by an accident which occurred while the workman was under the
influence of alcohol or drugs.
(iii) The
injury is caused due to willful disobedience of the rules by the workman, or.
(iv) The injury
is caused owing to the willful removal of any safety guard by the workman.
Q8(a)
Line Balancing: Line
balancing means balancing the line between the product lines or assembly lines.
It aims at grouping facilities and workers in an efficient pattern in order to obtain optimum or most
promising balance of the capability and flow of the production or assembly
processes. Tasks are grouped so that their total time is preferably equal to or
a little lesser than the time available at each work stations, thus reducing
the idle time.
Each
work station should have the same operating time and the various operations
should be sequenced properly. There should be perfect balance between output
rates of the parts and the sub assemblies. However, it is not, always possible
that the parts reach in a steady stream immediately before sub-assembly. This
may be because of the limitation as regards materials, men and equipments or it
may be economical to manufacture and supply parts in batches. The flow control
section has to cope with such situations and thus, carry big inventories and
arrange facilities for storage.
Line
balancing problems can be solved through heuristics approach, linear
programming, dynamic programming and by using computer method.
Q8(b)
Inventory Procurement Cost &
Inventory Carrying Cost:Inventory is a detailed list of those
movable items which are necessary to manufacture a product and to maintain the
equipment and machinery in good working order. Inventory control is concerned with achieving an optimum balance
between two competing objectives: -
·
To minimize investment in inventory.
·
To maximize service levels to the
firm’s customers and its own operating departments.
·
A problem which always remains is
that how much material may be ordered at a time. This is known as Economic
Order Quantity (EOQ). EOQ depends upon two costs: -
(i) Inventory
procurement costs which consists of expenditure connected with
* Receiving quotations
* Processing Purchase Requisitions
* Following up and Expediting Purchase
order
* Receiving
materials and then inspecting them
* Processing seller’s Invoices
Procurement
costs decrease as the order quantity increases.
(ii)Carrying Costs,
which vary with quantity ordered, consists of
* Interest on capital investment
* Cost of storage facilities
* Cost
involving deterioration & obsolescence, and
* Cost of insurance, property tax, etc.
Carrying
costs are almost directly proportional to the order size or lot size or order
quantity.
Q8(c)
Economic Order Quantity and Total
Cost:
The sum of Inventory procurement cost
and inventory carrying cost is total cost.
Minimum
Total
Cost
Carrying Cost A
Procurement Cost
B
EOQ
Order
Quantity
In
the above figure, the procurement cost and inventory carrying cost have been
plotted with respect to quantity in lot. Total cost is calculated by adding the
procurement cost and carrying cost. Total cost is minimum at the point A and
thus B represents the Economic Order Quantity(EOQ).
Q9(a)
Production & Productivity: Production
is any process or procedure developed to transform a set of input elements like
men, materials, capital, information and energy into a specified set of output
element like finished products and services in proper quantity & quality,
thus achieving objectives of an enterprise. The essence of production is the
creation of goods and services. There are four recognized factors of
production, which are :-
* Nature (Land & other material
resources)
* Labour (Human efforts)
* Capital (Factory building, machinery,
tools, etc)
*
Productivity
may be defined as the ratio between output and input. Output means the amount
produced or the number of items produced while inputs means various resources
employed, eg., land & Building, equipment and machinery, materials, labour,
etc. Productivity can be increased if more products can be obtained from the
same amount of inputs viz available resources. The factors which affect productivity
in manufacturing and services are: -
* Product or system Design.
* Machinery & Equipment.
* The skill & effectiveness of the
worker
* Production Volume.
Q9(b) Improving
Productivity: The essence of production is creation of goods,
may be by the transformation of raw
materials or by assembling so many small parts.
The four factors of production
are land, labour, capital &
·
By reducing scrap of materials
·
Changing the design of the component
or component layout
·
By using the correct process of
production
·
By using properly trained workers for
production.
·
By suitable materials handling,
storage facilities and proper packaging.
·
Improvement in work methods after
doing proper work study.
·
Use of improved tools, simple
attachments, other devices.
·
Improving machine set-up timings.
·
Proper maintenance of machinery to
avoid sudden breakdowns.
·
A suitable plant layout which can
accommodate more machinery in the same space.
·
Proper orientation, construction and
inside conditions of a building.
·
Linking wages more closely to output
will increase productivity.
·
Develop and utilize more standard
terms in service industries.
·
Redesign the content of jobs to make
them more interesting and challenging.
·
Improve communication to encourage
everyone to work towards the same desired objectives.
Q10(a) Trial Balance: After posting all journal
entries into the ledger, a statement
called trial balance is prepared to check the accuracy of
postings into the
ledger. The Trial
Balance checks the arithmetical accuracy of the entries. It is
simply a list of the accounts and their balances at any
given date. It is used to
test the equality of balances because at any time the
debits and credits should
be equal in value.
Besides checking the accuracy of postings into the ledger,
the trial balance provides the material for formulating
financial statements such
as Profit & Loss Account and Balance Sheet.
A
Trial Balance discloses the following types of errors:-
i) An item posted twice.
ii) A mistake in posting.
iii) A mistake in addition.
iv) An item left from being posted.
v) Money values wrongly recorded (Rs. 160/- in
place of Rs. 1600/-).
A Trial Balance, however, will not
disclose errors of compensation, errors of omission and errors of principle.
Q10(b)
Fixed Cost & Variable Cost: Cost may be defined as the amount of
expenditure incurred on, or attributable to a given thing. Fixed costs are
those costs which tend to remain constant irrespective of the volume of output
or sales. Examples of fixed costs: -
* Staff salaries.
* Administration Expenses.
* Rent & establishment charges
* Depreciation, etc.
Variable
costs on the other hand, tend to vary directly with the volume of output.
Examples of variable cost are: -
* Direct production labour cost
* Direct Materials cost
* Direct Expenses
Q10(c) Break Even Analysis: Break even
Analysis implies that at some point in the
operations,
total revenue equal total cost. Break even analysis is concerned with finding
the point at which revenues and costs agree exactly – hence the term ‘Break
even point’. The following figure portrays the Break Even Chart.
Break
even point is the volume of output at which neither a profit is made nor a loss
is incurred. The break even analysis can be carried out algebraically or
graphically (as given in the above diagram).
Break
even Analysis helps solving the following types of problems:-
(a) What
volume of sales will be necessary to cover
- a
reasonable return of capital employed
- preference
and ordinary dividends, and
- reserves
(b) To
compute costs and revenues for all
possible volumes of output to fix budgeted sales
(c) To find the price of an article to give
the desires profit
(d) To determine the variable cost per unit
(e) To compare
a number of business enterprises by arranging their earnings in order of
magnitude.
The
Break Even Point (BEP) can be calculated by using the f ollowing relation :-
F
BEP
= -----
1-V/P
Where
F is fixed cost
V is variable cost per unit or total variable
cost and P is the selling price of each
unit
Q11(a) Selling Vs Marketing
Concept: The selling concept is a management
orientation
that assumes that consumers will normally not buy enough of the company’s
product unless they are approached with a substantial selling and promotional
effort. The marketing concept is a
management orientation that holds that the key task of the organisation is to
determine the needs, wants and values of a target market and to adopt the
organisation to deliver the desired satisfaction more effectively and
efficiently than its competitors.
* Selling
focuses on the needs of the seller whereas marketing focuses on the needs of
the buyer.
* Selling is
preoccupied with the seller’s need to convert his goods into cash, whereas
marketing lays emphasis on satisfying the needs of the customer by means of the
product.
* Marketing
is another name for selling with the inference that it is a long-haired method.
* Marketing is a more expensive way of
selling.
Q11(b) Four ‘P’s of Marketing: Marketing
may be defined as a human activity
directed at satisfying needs and
wants through exchange processes. A
market
is
a group of existing and potential buyers or users of a product or service. A vital element in every marketing strategy
is the marketing mix. This concept was first
propounded by Professor Neil Boden of
* Product
* Price
* Promotion
* Physical Distribution
The
following figure illustrates the market mix, further sub divided as :-
PROMOTION - Advertising -
Personal Selling -
Sales Promotion -
Publicity, etc
The
marketing mix is the central part of an organisation’s marketing tactics. Once the market situation (customers,
competitions, suppliers, middlemen, etc.) have been identified and evaluated
and when the decision has been made to penetrate or develop a particular
market, then the role of marketing mix is crucial.
* Marketing Mix is the combination of
competitive efforts exerted by a firm to accomplish some sales or profit goal.
* The firm normally has at its disposal
several competitive elements that it can manipulate.
* The element of time is a vital factor
in assessing the particular mix to be offered to the market.
* By using the marketing mix as a
tactical tool of an organisation’s marketing plans, it is possible to adopt
speedily and profitably to changes in market environment.
* Thus, the development of the mix to
meet conditions at a particular point or period on time is essentially a
contingency approach to marketing management.
