Buying and Merchandising ICDC PIs

Terms in this set (236)

a. Define the term service orientation.
Listening to and understanding the customer is the focus.
Customer satisfaction is high priority.
b. Explain the relationship between communication and service.
Clear communications from sales personnel will ensure customer buys the product that best suits his needs.
If there is a problem, then clear communication is imperative so that the employee can act precisely and quickly to clear up the problem for the customer.
Clear communication is again necessary in record keeping so that the data can be used to influence future business decisions.
Clear communications to receive feedback from customers and employees on satisfaction levels.
c. Identify ways in which employees in business and marketing can demonstrate a service orientation.
Greets the person promptly and courteously.
Pays attention to the person.
Asks questions to determine the person's needs.
Listens carefully and empathizes with the person's concerns.
Offers relevant information.
Summarizes to check for understanding.
Acts or agrees on a clear course of action.
Tries to do better than expected.
Asks questions to check for satisfaction.
Follows through.
Thanks the individual.
Takes surveys to determine people's needs.
Is courteous to citizens, clients, patients, etc.
Does not "pass the buck."
d. Demonstrate procedures for reinforcing a service orientation through communication.
Use customer surveys to pinpoint areas for improvement.
Use employee surveys to pinpoint areas for improvement.
Develop a follow up procedure to determine levels of customer satisfaction after the sale.
Use signage for employees and customers reinforcing customer services.
a. Discuss the purpose of adapting communication to a client's cultural or social community.
To avoid offending clients with your lack of sensitivity to there needs.
To better assist clients to make the right purchase for their needs.
b. Explain the importance of context in communication.
Context is the surrounding story or thought process of a communicated idea. It is what helps get the point across. The wrong context can completely skew the meaning.
c. Discuss reasons for adapting communication to the cultural or social differences among clients.
Our market is very global and therefore impacts many different cultures socially and geographically.
The success of all companies depends on their abilities to understand cultural differences and work with them to keep all customers happy and well informed to make the best buying decisions.
It is impossible to achieve customer satisfaction without clearly communicating product features and benefits.
Clients could be offended by your lack of understanding of their culture's typical use of a product.
d. Explain skills associated with adapting communication (e.g., empathy, risk taking, problem solving, etc.).
1 patient, flexible, and empathetic are key personality traits when dealing with communication barriers.
e. Describe ways to adapt communication to the cultural or social environment of clients.
1. Language and symbols
2. Material culture (understand the way a country makes products and you will understand how they value the products)
3. Aesthetics (what a culture considers valuable or beautiful)
4. Social and business etiquette (what is acceptable in a culture)
5. Religious beliefs, Holidays, attitudes, values, space and time
f. Demonstrate how to adapt communication to the cultural or social differences among clients.
Stereotypes are oversimplified views of a group of people.
Cultural bias is the belief that a person's own culture or ethnic group is the best.
Prejudice is hostility toward a group of people.
Discrimination is the unfair treatment of individuals based on prejudice.
. Explain the nature of customer inquiries.
1 Inquiries can be sincere or hidden
(Sometimes price is the hidden problem and the customer will complain about color)

b. Identify the types of customer inquiries.
1 merchandise (defective, wrong size or color, damaged, improper labeling, not meeting customer needs, customer purchased the wrong product)
2 store personnel (high pressure sales, rudeness, providing insufficient product information, being inaccurate)
3 business (unhappy with the number and types of services offered, unhappy with business policies)

c. Discuss the importance of possessing knowledge of the company (e.g., policies, history, capabilities, etc.).
1 You must understand how to apply company policies to each situation in order to remain fair.
2 You must know the company capabilities in order to handle the customer inquiry rapidly and satisfactorily

d. Discuss the importance of possessing adequate product knowledge.
1 Product knowledge is a necessity in order to respond to the customer situation in the best manner.
2 Product knowledge is needed to understand the customer's problem with a product
3 Understanding of the product makes it easier to understand the company policy in respect to the product

e. Describe guidelines for handling customer inquiries.
Listen to determine reason for complaint (shows a concerned attitude)
Restate the complaint (show your understanding of the problem)
Investigate the problem (determine how to handle)
Explain the store policy (desire to maintain fairness by following store policy)
Take action (quick action makes the customer feel important)

f. Demonstrate use of proper procedure for solving a customer inquiry in a marketing situation.
There are a few major areas in which technology now is able to help provide key advantages to businesses in engendering customer loyalty by improving customer service:
Websites. Providing areas on your website where customers can answer their own questions or seek answers from others.
E-mail. Using e-mail as a way to improve customer service and more quickly respond to certain needs or help requests.
Communications. Unifying communications so that you know that the customer who left a voice mail also sent an e-mail with the same request a few days ago.
Software. Better managing customer relationships with more sophisticated data-gathering tools, such as customer relationship management software.
Giving Customers What They Want, When They Want It

The goal of your business in terms of its customer interactions is the generate loyalty. There's no better way to do that than to offer quality products and services and to be responsive to your customers. But as new technologies have come to market to make it easier for businesses to provide customer service, they may also be increasing the number of channels through which you interact with customers and the complexity of those interactions. Accenture, the technology consulting firm, suggests that businesses that want to use technology to raise the quality of their customer service focus on the following:

Data management and analytics. Using data collected from customer to analyze their preferences.
Insight-driven marketing. Gaining insights into your business from customer data so you can more effectively target marketing.
Marketing automation. Streamlining and automating business processes to improve efficiency and keep costs low.
Self-service optimization. Finding ways for customers to interact with your business when they want.
Workforce effectiveness. Encouraging your staff to embrace new ways improving customer treatment by providing tools and training to deliver better service.
The market forces of supply and demand are the most fundamental elements in economics. They help determine the cost of goods, and they're crucial in helping businesses formulate long term strategies. Sometimes artificial elements can interfere with the law of supply and demand, and when this happens, disruptions in the economic balance are possible.

Supply
Supply is defined as the availability of a product or service. Some things are very rare, while others are abundant. For example, gold is generally considered a rare commodity, while iron is much more common. In many markets, the amount of supply will constantly shift based on the decisions that businesses make, competitive forces, and changes in public opinion.

Demand
Demand is a measure of the public's desire to purchase a product or service. If something is very popular, or very necessary, it will generally be in high demand. Sometimes this can change in the blink of an eye. Another product may come on the market that replaces the previous item, or something may happen that causes people to change their opinion of a product. Businesses are constantly adjusting their strategies to increase the demand for products.

Ceilings
Sometimes governments or companies may place artificially low ceilings on price for various reasons. When this happens, demand will exceed supply, and eventually a product shortage will develop. A good example would be the Nintendo Wii video game system. When it was released, demand was huge, but Nintendo wanted the game system to be in a price-range that the average family could afford, so they didn't raise the price. A shortage developed immediately, and more than a year after its release, it was still very difficult to find one.
Distributive function: for whom to produce, where to produce. Goods and resources are limited, but needs and wants are unlimited; so price will determine affordability and those with the buying power will have the limited
Allocative function: what, when, for whom to produce.
Signalling function: Prices signal the demand and supply situations .Shortages are reflected in high prices, and surpluses are reflected in lower prices.
Equilibrating function: prices facilitate matching of demand and supply therefore clearing the market.
Rationing function: Again a question of limited resources vs. unlimited wants.
Transmission function: Prices transmit information to various actors in the market thus enabling them to make informed decision on what and when to buy and sell.
Provision of incentive: prices act as incentives/disincentives to consumers and producers.
Enhancing marketing efficiency and performance: correct price signals will oil the marketing machine. However wrong signals on price will hinder smooth functioning of the market thus resulting in poor performance.
Determining decision making with respect to the following aspects:
Production system: what to produce, by whom, and where to produce.
Industrial location
Product market areas and market boundaries (ISOTIMS and the Law of market Areas).
Arbitrage and patterns of trade (Spatial trade patterns)
Temporal arbitrage (STORAGE) transportation and processing. However facilitating functions are composed of standardization, financing, risk bearing and market intelligence.

As the supply of oil diminishes, but demand remains strong, this pushes up the price.
As the price of oil rises it starts to change behaviour.
Consumers look for more fuel efficient engines. People keener to buy cars which have a better fuel efficiency.
People may start cycling rather than driving.
Firms have incentives to develop cars which don't run on petrol. (hydrogen powered cars, solar cars e.t.c)
The higher price of petrol may create incentives to look for more oil reserves in previously untapped areas (e.g. Antarctic where it is expensive to extract oil). Therefore, in response to the higher price, supply may increase over time.
Agility
Develop greater agility. SAP, the business management software company explains how companies can become agile, adaptive organizations in a white paper, Responding Quickly To Changing Markets. SAP suggests that agile organizations have four characteristics: visibility, speed, flexibility and scalability. Visibility enables the organization to anticipate change. Speed is essential to develop and deliver innovative products and services, and strengthen market position. Flexibility means the organization can make rapid adjustments in response to changes in market demand. Scalability makes it possible to align people, resources and capacity with a changing environment.

Analyze
Modify the strategy based on insight into the marketplace. Set up a process to monitor changes in the market and identify trends that might impact the organization. Analysts' reports and forecasts provide a useful starting point. Combine research information with company data to build a more specific picture. Ask the sales and customer service teams to report any significant changes in customer requirements. Arrange review meetings with major customers to discuss their changing needs and challenges.

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Lead
Demonstrate strong leadership. Harvard Business Publishing states that strong leadership is essential to market adaptation. Business leaders need the right tools and tactics so that they can align the business with current corporate strategy, adapt quickly to changing market conditions and motivate their people.

People
Create a more flexible workforce. Market change may require people with different skills or more people with the same skills. To bypass the standard recruitment, training and induction process, organizations can use a variety of temporary solutions. Hiring contractors for fixed terms or using a resourcing service on a more flexible basis can provide high-caliber staff to meet short- or medium-term needs. Technology marketing agency Wilson Miller describes the benefits of a managed resourcing service where the resourcing company select, train and support specialists who work on the client's team for the duration of a project.

Technology
Utilize cloud computing to scale information technology resources. Market change may require a significant increase in computing resources to deal with increased demand. To avoid the time lag associated with internal investment, an organization can utilize cloud computing -- renting additional capacity on massive servers based in data centers run by external service providers. This provides immediate access to essential resources and reduces time to market for new business opportunities.

Partners
Build a network of trusted partners. If an organization cannot meet changing market demand from its own resources, it can work with partners who offer suitable products, technology or manufacturing capacity. Identify each partner's strengths and set up contingency plans to identify the fastest route to market through collaboration.
1. The degree of competition a firm faces is important. If a firm has monopoly power then it has little competition, therefore demand will be more inelastic. This enables the firm to increase profits by increasing the price. However govt regulation may prevent monopolies abusing their power e.g. the OFT can stop firms colluding (to increase price)Regulators like OFGEM can limit the prices of Gas and Electricity firm

2. If the market is very competitive then profit will be low. This is because consumers would only buy from the cheapest firms. Also important is the idea of contestability. Market contestability is how easy it is for new firms to enter the market. If entry is easy then firms will always face threat of competition, even if it is just "hit and run competition" This will reduce profits.

3. The strength of demand is very important. For example demand will be high if the product is fashionable, e.g. mobile phone companies have been very profitable. However in recent months profits for mobile phone companies have fallen because the high profit encouraged over supply. Products which have falling demand like Spam (tinned meat) will lead to low profit for the company

4. The State of the economy. If there is economic growth then there will be increased demand for most products especially luxury products with a high YED. For example manufacturers of luxury sports cars will benefit from economic growth but will suffer in times of recession.

5. A successful advertising campaign can increase demand and make the product more inelastic, however the increased revenue will need to cover the costs of the advertising. Sometimes the best methods are word of mouth. For example it was not necessary for YouTube to do much advertising.

6. Substitutes, if there are many substitutes or substitutes are expensive then demand for the product will be higher. Similarly complementary goods will be important for the profits of a company.

7. The other aspect of profitability is the degree of costs. An increase in costs will decrease profits, this could include labour costs, raw material costs and cost of rent. For example a devaluation of the exchange rate would increase cost of imports therefore companies who imported raw materials would face an increase in costs. Alternatively if the firm is able to increase productivity by improving technology then profits should increase. If a firm imports raw materials the exchange rate will be important. An depreciation making imports more expensive. However depreciation of the exchange rate is good for exporters who will become more competitive.

8. A firm with high fixed costs will need to produce a lot to benefit from economies of scale and produce on the minimum efficient scale, otherwise average costs will be too high. For example in the steel industry we have seen a lot of rationalisation where medium sized firms have lost their competitiveness and had to merger with others.

9. If a firm is not dynamically efficient then over time costs will increase. For example state monopolies often had little incentive to cut costs, e.g. get rid of surplus labour. Therefore before privatisation they made little profit, however with the workings of the market they became more efficient.

10. If the firm can price discriminate it will be more efficient. This involves charging different prices for the same good, so the firm can charge higher prices to those with inelastic demand. This is important for airline firms.
Financing Risk
Businesses can face a variety of financial risks. Some of these risks include the ability to get loans from the bank, which depends on credit history, or funding from other sources, such as joint venture capitalists and private equities; foreign currency exchange rates for business involved in international markets and, most importantly, the financial risk of making enough money to keep the proverbial lights on. Additionally, established businesses that trade publicly incur a lot of additional financial risk by putting themselves at the mercy of the stock market, as the value of their company can move wildly from day to day. Liquidity also is a financial risk. A company may be insolvent, though it has enough money to cover its debts and operations if it cannot transform its assets into cash.

Technology Risk
Technology risk exists in businesses that develop new products or otherwise rely on technology for their central operations. New products often require new, unproven technologies, and in order to be a first mover in this field, businesses must take on this risk. Similarly, if your business relies on certain technologies, there is the risk that the technology particular to you will become outdated. Many outside investors will take on companies with financial risk, but it is hard to attract outside investors if your company is exposed to significant technological risk.

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Management Risk
A good management team can make money with a bad product, where a poor management team can lose money with a good product. Having the right people in charge of a company makes all the difference. This is part of the reason why larger companies invest so much money in human resources. Many successful investors, such as Warren Buffet, look at the management team almost exclusively when considering various investments.

Government Risk
Businesses incur government risk in one of two ways. First, if the business has operations in a foreign country, it runs the risk of political instability where the government could kick them out of its country and take the business's assets or more. Secondly, domestic companies face the risk of varying regulatory environments. For example, the Gulf of Mexico drilling moratorium is a governmental risk that has recently affected oil companies involved in that area.
The gross domestic product (GDP) is one the primary indicators used to gauge the health of a country's economy. It represents the total dollar value of all goods and services produced over a specific time period - you can think of it as the size of the economy. Usually, GDP is expressed as a comparison to the previous quarter or year. For example, if the year-to-year GDP is up 3%, this is thought to mean that the economy has grown by 3% over the last year.

Measuring GDP is complicated (which is why we leave it to the economists), but at its most basic, the calculation can be done in one of two ways: either by adding up what everyone earned in a year (income approach), or by adding up what everyone spent (expenditure method). Logically, both measures should arrive at roughly the same total.

The income approach, which is sometimes referred to as GDP(I), is calculated by adding up total compensation to employees, gross profits for incorporated and non incorporated firms, and taxes less any subsidies. The expenditure method is the more common approach and is calculated by adding total consumption, investment, government spending and net exports.

As one can imagine, economic production and growth, what GDP represents, has a large impact on nearly everyone within that economy. For example, when the economy is healthy, you will typically see low unemployment and wage increases as businesses demand labor to meet the growing economy. A significant change in GDP, whether up or down, usually has a significant effect on the stock market. It's not hard to understand why: a bad economy usually means lower profits for companies, which in turn means lower stock prices. Investors really worry about negative GDP growth, which is one of the factors economists use to determine whether an economy is i
1. Differentials in Inflation
As a general rule, a country with a consistently lower inflation rate exhibits a rising currency value, as its purchasing power increases relative to other currencies. During the last half of the twentieth century, the countries with low inflation included Japan, Germany and Switzerland, while the U.S. and Canada achieved low inflation only later. Those countries with higher inflation typically see depreciation in their currency in relation to the currencies of their trading partners. This is also usually accompanied by higher interest rates. (To learn more, see Cost-Push Inflation Versus Demand-Pull Inflation.)

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2. Differentials in Interest Rates
Interest rates, inflation and exchange rates are all highly correlated. By manipulating interest rates, central banks exert influence over both inflation and exchange rates, and changing interest rates impact inflation and currency values. Higher interest rates offer lenders in an economy a higher return relative to other countries. Therefore, higher interest rates attract foreign capital and cause the exchange rate to rise. The impact of higher interest rates is mitigated, however, if inflation in the country is much higher than in others, or if additional factors serve to drive the currency down. The opposite relationship exists for decreasing interest rates - that is, lower interest rates tend to decrease exchange rates. (For further reading, see What Is Fiscal Policy?)

3. Current-Account Deficits
The current account is the balance of trade between a country and its trading partners, reflecting all payments between countries for goods, services, interest and dividends. A deficit in the current account shows the country is spending more on foreign trade than it is earning, and that it is borrowing capital from foreign sources to make up the deficit. In other words, the country requires more foreign currency than it receives through sales of exports, and it supplies more of its own currency than foreigners demand for its products. The excess demand for foreign currency lowers the country's exchange rate until domestic goods and services are cheap enough for foreigners, and foreign assets are too expensive to generate sales for domestic interests. (For more, see Understanding The Current Account In The Balance Of Payments.)

4. Public Debt
Countries will engage in large-scale deficit financing to pay for public sector projects and governmental funding. While such activity stimulates the domestic economy, nations with large public deficits and debts are less attractive to foreign investors. The reason? A large debt encourages inflation, and if inflation is high, the debt will be serviced and ultimately paid off with cheaper real dollars in the future.

In the worst case scenario, a government may print money to pay part of a large debt, but increasing the money supply inevitably causes inflation. Moreover, if a government is not able to service its deficit through domestic means (selling domestic bonds, increasing the money supply), then it must increase the supply of securities for sale to foreigners, thereby lowering their prices. Finally, a large debt may prove worrisome to foreigners if they believe the country risks defaulting on its obligations. Foreigners will be less willing to own securities denominated in that currency if the risk of default is great. For this reason, the country's debt rating (as determined by Moody's or Standard & Poor's, for example) is a crucial determinant of its exchange rate.

5. Terms of Trade
A ratio comparing export prices to import prices, the terms of trade is related to current accounts and the balance of payments. If the price of a country's exports rises by a greater rate than that of its imports, its terms of trade have favorably improved. Increasing terms of trade shows greater demand for the country's exports. This, in turn, results in rising revenues from exports, which provides increased demand for the country's currency (and an increase in the currency's value). If the price of exports rises by a smaller rate than that of its imports, the currency's value will decrease in relation to its trading partners.

6. Political Stability and Economic Performance
Foreign investors inevitably seek out stable countries with strong economic performance in which to invest their capital. A country with such positive attributes will draw investment funds away from other countries perceived to have more political and economic risk. Political turmoil, for example, can cause a loss of confidence in a currency and a movement of capital to the currencies of more stable countries.

Conclusion
The exchange rate of the currency in which a portfolio holds the bulk of its investments determines that portfolio's real return. A declining exchange rate obviously decreases the purchasing power of income and capital gains derived from any returns. Moreover, the exchange rate influences other income factors such as interest rates, inflation and even capital gains from domestic securities. While exchange rates are determined by numerous complex factors that often leave even the most experienced economists flummoxed, investors should still have some understanding of how currency values and exchange rates play an important role in the rate of return on their investments.
Attitude - The capacity to stay optimistic and positive. The #1 quality for career success is "Championship Thinking."
Enthusiastic - The possession of intense and eager interest in a subject or cause. It is an energy that often inspires others.
Ethical - The quality of having and living by a code of sound moral principles.
Goal Focused - The ability to have clarity on the objectives that you strive for in your personal and professional life.
Listener - The capacity to suspend your own agenda and deliberately and empathically allow others to be heard.
Networked - A well developed circle of influence of interconnected positive relationships.
Persistent - The ability to endure in the face of adversity. It is a patient and relenting effort to achieve despite difficulties.
Self-Aware - The understanding and knowledge of who you are including your skills, values, interests, behaviors and character.
Self-Confident - The firm belief in your abilities. Seek professional help if this is an area of weakness - it will be worth it.
Self-Discipline - The ability to control and restrain impulses. Energy then can be focused and channeled toward your ambitions.
It is impossible to limit the list to just 10, and so here are 25 more that represent my second tier: Adaptive, Analytical Mind, Articulate, Balanced, Collaborative, Committed, Courageous, Creative, Decisive, Detail-Oriented, Emotionally Competent, Friendly, Hard Working, Humorous, Intelligent, Organized, prepared, Productive, Relationship Oriented, Responsible, Sincere, Self-Sacrificing, Trustworthy, Visionary, Wise
Listen, Then Speak Out
Believe it or not, just listening to an employee's issue is the first and most important step in resolving conflict. You should simply listen to all parties involved to completely understand the nature of conflict, and then start troubleshooting solutions.
Gather the Group
As a leader, you'll need to arrange a meeting with all involved parties to discuss the issue. Give everyone a chance to speak; this is a good opportunity to hear all sides and gain a full understanding of the conflict. Having a group meeting may also expedite a resolution that will satisfy everyone.
Be Impartial
Don't take sides! In a leadership position, you shouldn't display any sort of opinion that favors one person over another. If you are partial towards one person, try to access the situation from all sides to come up with a fair and reasonable solution.
Do Not Postpone Conflict Resolution
Address the conflict immediately. Otherwise, the situation could escalate and could affect employee performance. Just make sure not to address the situation too quickly or without careful consideration, as your decision will directly affect the demeanor and performance of your staff.
Promote Teamwork
Encouragement and motivation are powerful. Remind your staff of successful projects that required teamwork to complete. This is one of the most effective conflict resolution techniques and will really make the employees think about the importance of working in a team.
Broadcast Praise
As stated above, the power of encouragement and motivation can be multiplied when it is spread to recognize those who are modeling the teamwork and cooperation that is desired within any conflict. Try to give suitable models in these instances because behavior modeling can be risky if there are elements in the model that are undesireable.
Achievement Orientation refers to one's disposition regarding the cultivation and/or demonstration of ability. Most studies identify four distinct achievement profiles: learning oriented, work-avoidance oriented, performance and learning oriented, and performance and work-avoidance oriented. A learning-oriented individual is primarily concerned with improving his or her ability, and is generally inclined to apply great effort to do so. In contrast, a work-avoidant learner values that achievement that can be obtained with minimal effort, and does not consider achievement gained through hard work to be indicative of a person's intellectual worth. A performance- and learning-oriented person is more concerned with being positively evaluated than an individual who is learning-oriented. A performance-avoidance-oriented individual is concerned with cultivating an appearance of effortless achievement.[1][2] A student's achievement orientation directly influences performance in the classroom. Learning-oriented students tend to appreciate most strongly the correlation between effort and success, and thus apply the greatest effort. There is evidence that as early as the first grade, students who attribute success to effort have higher literacy achievement scores.[3] Performance-oriented students are more likely to employ superficial learning strategies and to seek help less frequently, and therefore such an orientation can hinder success. These students are also the most likely to engage in procrastination.[4] An individual's achievement orientation has a significant impact on his or her cultivation of new skills, and thus has important implications for educators
Employees who do not believe in working hard depend on nasty politics to make their position secure at the workplace.
Employees play politics simply to come in the limelight and gain undue attention and appreciation from the seniors.
Politics refers to irrational behavior of the individuals at the workplace to obtain advantages which are beyond their control.
No body has ever gained anything out of politics; instead it leads to a negative ambience at the workplace.
Effects of politics on organization and employees:
Decrease in overall productivity
Politics lowers the output of an individual and eventually affects the productivity of the organization.
Common observation says that individuals who play politics at the workplace pay less attention to their work.
They are more interested in leg pulling and back biting. They spend most of their times criticizing their fellow workers.
As a result of politics at the workplace, employees fail to achieve targets within the stipulated time frame. Work gets delayed in such an organization.
Affects Concentration
Individuals find it difficult to concentrate on their work. They are more interested in spoiling the other person's image in front of the superiors.
An individual involved in politics is bound to make more mistakes as his focus is somewhere else.
Spoils the Ambience
Politics leads to a negative environment at the workplace.
It spoils the relationships amongst individuals. An individual playing politics at the organization is disliked by all.
Changes the Attitude of employees
Politics changes the attitude of the employees.
Even the serious employees lose interest in work and attend office just for the sake of it.
Internal politics do not allow employees to give their hundred percent at work.
No matter how much hard work an employee puts in, it goes unnoticed in a politically driven organization.
Demotivated employees
A non performer can be the apple of his boss's eye simply due to politics, thus demotivating the performers.
Discussions are essential at the workplace to extract the best out of employees. Evaluating the pros and cons of an idea always helps in the long run. Employees playing politics always look for an opportunity to tarnish the image of the fellow workers.
Employees feel demotivated when they are not rewarded suitably or someone who has not worked hard gets the benefits due to mere politics.
Increases Stress
It is rightly said that problems evaporate if discussed. Individuals find it difficult to confide in any of their fellow workers due to the fear of secrets getting leaked.
Politics increases the stress level of the employees. Individuals are not machines who can work continuously for 8-9 hours without talking to others. It is important to have friends at the workplace who help you when needed.
Individuals fail to trust each other.
Wrong Information
Employees indulged in politics manipulate information and it is never passed on in its desired form.
Superiors get a wrong picture of what is actually happening in the organization.
A wrong person walks away with the credit in an organization where employees are indulged in politics.
1. Look at the header of your pay check stub. This will show your place of employment and its address, as well as information regarding the company that processes your place of employment's payroll. If something goes wrong with the deposit of your check, it is likely caused by the payroll company. Normally, the check number will also be listed prominently. This is extremely important for your own personal records and when balancing your checkbook.

2. Check your earnings. Perhaps the most important figure on your stub is the amount of the check. This is called the "net" pay, because it is the amount you receive after taxes and other deductions are made. The "gross" pay is the amount you actually earned from your employer before the aforementioned deductions.

3. Examine the federal taxes withheld. The first of these deductions are for taxes from the federal government, often abbreviated to "Fed Tax," "FT" or "FWT." The first column will be the federal taxes withheld for that particular pay period. The column next to it-usually labeled as "year" or "year to date" will be the amount of federal taxes withheld over the course of the entire financial year. These figures are appropriated based on the W-4 form you filled out when you were hired.

4. Note all other government withholdings. State and local taxes are listed similarly and are labeled as "St Tax," "ST" or "SWT." These taxes are appropriated based on the municipality, county and state where you live. Again, both the amount withheld on that particular paycheck and the amount withheld over the fiscal year will be shown.

5. See what your Social Security and Medicare withholdings are. The last of the standard government deductions listed on your paycheck is for Social Security and Medicare. Social Security taxes are usually labeled as "FICA," "SS," "SSWT" or "OASDI." Medicare, on the other hand, is labeled as "MWT" or "Med." These taxes actually accumulate over the course of your entire employment history and will be reciprocated once you become eligible to receive Social Security and/or Medicare benefits.

6. Track your benefits. If you receive health or life insurance from your employer, this may also appear on your paycheck stub. If you have a retirement plan with your company, such as a 401k, this will likely be shown on your paycheck stub as well.
Rules of accounting that should be followed in preparation of all accounts and financial statements. The four fundamental concepts are
(1) Accruals concept: revenue and expenses are recorded when they occur and not when the cash is received or paid out;
(2) Consistency concept: once an accounting method has been chosen, that method should be used unless there is a sound reason to do otherwise;
(3) Going concern: the business entity for which accounts are being prepared is in good condition and will continue to be in business in the foreseeable future;
(4) Prudence concept (also conservation concept): revenue and profits are included in the balance sheet only when they are realized (or there is reasonable 'certainty' of realizing them) but liabilities are included when there is reasonable 'possibility' of incurring them.
Other concepts include
(5) Accounting equation: total assets equal total liabilities plus owners' equity;
(6) Accounting period: financial records pertaining only to a specific period are to be considered in preparing accounts for that period;
(7) Cost basis: asset value recorded in the account books should be the actual cost paid, and not the asset's current market value;
(8) Entity: accounting records reflect the financial activities of a specific business or organization, not of its owners or employees;
(9) Full disclosure: financial statements and their notes should contain all relevant data;
(10) Lower of cost or market value: inventory is valued either at cost or the market value (whichever is lower);
(11) Maintenance of capital: profit can be realized only after capital of the firm has been restored to its original level, or is maintained at a predetermined level;
(12) Matching: transactions affecting both revenues and expenses should be recognized in the same accounting period;
(13) Materiality: minor events may be ignored, but the major ones should be fully disclosed;
(14) Money measurement: the accounting process records only activities that can be expressed in monetary terms (with some exceptions);
(15) Objectivity: financial statements should be based only on verifiable evidence, including an audit trail;
(16) Realization: any change in the market value of an asset or liability is not recognized as a profit or loss until the asset is sold or the liability is paid off;
(17) Unit of measurement: financial data should be recorded with a common unit of measure (dollar, pound sterling, yen, etc.).
Also called accounting conventions, accounting postulates, or accounting principles.
Reduce Startup Costs: Proper orientation can help the employee get up to speed much more quickly, thereby reducing the costs associated with learning the job.

Reduce Anxiety: Any employee, when put into a new, strange situation, will experience anxiety that can impede his or her ability to learn to do the job. Proper orientation helps to reduce anxiety that results from entering into an unknown situation.

Reduce Employee Turnover: Employee turnover increases as employees feel they are not valued, or are put in positions where they can't possibly do their jobs. Orientation shows that the organization values the employee, and helps provide the tools necessary for succeeding in the job.

Save Time for the Manager: The better the initial orientation, the less likely supervisors and co-workers will have to spend time teaching the employee.

Develop Realistic Job Expectations: It is important that employees learn as soon as possible what is expected of them, and what to expect from others, in addition to learning about the values and attitudes of the organization.

Well thought-out orientations celebrate the arrival of the new hire, integrate her into the team, and provide a comfortable forum for answering questions that extends beyond the first day.

Orientation Best Practices
Like the hiring process, the orientation process is one that should begin well before the new hire arrives for his first day. Here are several issues to keep in mind as you prepare to officially welcome your new employee.

Own the Process: Typically, new hire orientations are managed by junior level human resources staff, but these are not the people who should be responsible for assimilating a new employee. Orientations should be designed and run by you, the new hire's manager, because who better understands exactly what needs to be done to get this person up to speed? HR can have a standard one or two hour session to sign paperwork and go over corporate policies and benefits, but beyond that, your department should be running the show.

Involve High-Level Execs: Encourage the CEO or general manager to stop by your new employee's office, send a personal e-mail, or make a phone call welcoming the employee to the organization.

Plan a Special Outing: Take the team out to lunch on the new hire's first day, organize a dinner with other new employees and their spouses, or engage in a team building activity with current employees.

Make an Announcement: Place a welcome note and picture on the company Intranet, and if anyone reads the local paper or company e-newsletter, put a notice in to let everyone know about your new team member.

Get Creative with Their Office Space: Have your administrative assistant create a banner signed by the team, or hang a team picture on the wall.

Gift Them Little Extras: Send the new hire's spouse and kids first day welcome gifts, corporate products or cards to make them feel they are part of the team and to build support for the new company.

Set Up a Series of Peer-to-Peer Training Sessions: In addition to any official job training your new hire may need to complete, organize a series of meetings with team members who excel in particular areas. Encourage your new hire to seek out these team members to answer questions about their job duties.

Put a Standing Check-in On the Calendar: Ensuring that you meet with your new report at least once a week during the duration of her first three months of employment will positively direct her activities and catch potential issues early.
6 marketing functions:
-product/service management
develops new products, changing existing products to extend their life, phasing out products that are no longer popular, deciding which products to carry to attract the target customer, helps businesses determine their image and what type of image they want
-Marketing information management
businesses need information to make good marketing decisions. This function gathers info from customers through surveys, questionnaires, and observations. after info is gathered it is transformed into more understandable marketing information, distributed to company decision makers
-Pricing
affects how well a product will sell and how much profit business will make. Business need to set a price customers will pay, must decide whether they need to change products because of the market. Businesses often look at their competitors to determine if they should lower prices or raise the price because of an increase in demand
-Channel Management (place)
gets products from producers to customers so they are available when and where customers want to buy. (Fireworks provided at New Year's Eve and July 4th). Determines which channel members are responsible and best suited for shipping, promoting, and selling the product to customers
-Promotion
creates an increase demand for products, promotion uses magazine ads, direct mail coupons, etc. Helps to create an image or impression to a business to attract a different or expanded target market or get a certain message across
-Selling
involves contact with customers. Customers must be satisfied with sales experiences, al businesses have something to sell. Everyone benefits from selling, businesses, customers, and society
All functions must work together
There are many models of consumer buying behaviour, but the steps below are fairly common to most of them.


The customer identifies a need This is often initiated by PR coverage, including word of mouth. The customer may have seen a friend or celebrity using a product or service, or awareness may have been sparked off by advertising.

Looking for information At this stage the customer wants to know more and is actively seeking information. Advertising and PR are still important but product demonstrations, packaging and product displays play a role. This is the time to deploy your sales personnel, and customers find videos and brochures are useful. Word of mouth is still very important.

Checking out alternative products and suppliers The customer is now trying to choose between products, or firm up on the purchase decision. This is a place for promoting product guarantees and warranties, and maximising packaging and product displays. Sales personnel can greatly influence the customer at this stage and sales promotion offers become of interest. Independent sources of information are still of interest, including product test reviews.

Purchase decision This is the time to 'tip the balance'. Sales promotion offers come into their own, and if appropriate, sales force incentives need to ensure that your sales personnel are incentivised to close the deal.

Using the product Expensive purchases can lead to what is known as cognitive dissonance - a fear that the customer has not made the right decision. Your job is to reassure the customer by offering good customer care, simple instruction manuals and loyalty schemes. They should still be exposed to testimonial advertising to reassure them that they have made the right decision.
Introduction Stage - This stage of the cycle could be the most expensive for a company launching a new product. The size of the market for the product is small, which means sales are low, although they will be increasing. On the other hand, the cost of things like research and development, consumer testing, and the marketing needed to launch the product can be very high, especially if it's a competitive sector.

Growth Stage - The growth stage is typically characterized by a strong growth in sales and profits, and because the company can start to benefit from economies of scale in production, the profit margins, as well as the overall amount of profit, will increase. This makes it possible for businesses to invest more money in the promotional activity to maximize the potential of this growth stage.

Maturity Stage - During the maturity stage, the product is established and the aim for the manufacturer is now to maintain the market share they have built up. This is probably the most competitive time for most products and businesses need to invest wisely in any marketing they undertake. They also need to consider any product modifications or improvements to the production process which might give them a competitive advantage.

Decline Stage - Eventually, the market for a product will start to shrink, and this is what's known as the decline stage. This shrinkage could be due to the market becoming saturated (i.e. all the customers who will buy the product have already purchased it), or because the consumers are switching to a different type of product. While this decline may be inevitable, it may still be possible for companies to make some profit by switching to less-expensive production methods and cheaper markets.
group of laws and organizations designed to ensure the rights of consumers as well as fair trade competition and the free flow of truthful information in the marketplace. The laws are designed to prevent businesses that engage in fraud or specified unfair practices from gaining an advantage over competitors; they may also provide additional protection for the weak and those unable to take care of themselves. Consumer protection laws are a form of government regulation, which aim to protect the rights of consumers. For example, a government may require businesses to disclose detailed information about products—particularly in areas where safety or public health is an issue, such as food. Consumer protection is linked to the idea of consumer rights, and to the formation of consumer organizations, which help consumers make better choices in the marketplace and get help with consumer complaints.

Other organizations that promote consumer protection include government organizations and self-regulating business organizations such as consumer protection agencies and organizations, the Federal Trade Commission, ombudsmen, Better Business Bureaus, etc.

A consumer is defined as someone who acquires goods or services for direct use or ownership rather than for resale or use in production and manufacturing.[1]

Consumer interests can also be protected by promoting competition in the markets which directly and indirectly serve consumers, consistent with economic efficiency, but this topic is treated in competition law.

Consumer protection can also be asserted via non-government organizations and individuals as consumer activism.
-Personal Selling: Involved personal contact between company rep and those who make purchase decisions (e.g. consumers, manager or company buyer). Selling occurs face-to-face or via telephone and also now online via video conferencing or text chat.
-Direct Marketing: Involves sending mail direct to the customer, Direct mail can be cheaper than traditional advertising; you can tailor your message, add more information and better target your market. Typically Direct mail advertising should be; personal, creative, informal and selectively directed (not sent to everyone in a database).
-Advertising: Non personal, mostly paid promotions often using mass media to deliver the message. The variations of advertising include; TV, Newspaper, Magazine, Internet and Outdoor advertising (E.g. billboard, posters, buses, etc.)
-Public Relations: This type of promotion uses third-party sources and particularly the news media, to offer a favorable mention of the marketer's company or product without direct payment to the publisher of the information.
-Sponsorship: Supporting an event, activity or organization by providing money or other resources that is of value to the sponsored event. This is usually in return for advertising space at the event or as apart of the publicity for the event. (E.g. TV/ Radio, Sports, Arts, Events, Charity/Causes.)
-Sales Promotion: Involves the use of special short-term techniques, often in the form of incentives, to encourage customers to respond or undertake some activity. (E.g. Sales flyers/ price discounts, Coupons, Samples/giveaways, special events and point of sale)
-Digital Communications: Any promotion made for web, cell phone or digital device (E.g. tablets, game systems etc.) These include; Online advertising, mobile communications, advergaming, social media, consumer-generated content and viral strategies.
There are five main aspects of a promotional mix.[1] These are:
Advertising - Presentation and promotion of ideas, goods, or services by an identified sponsor. Examples: Print ads, radio, television, billboard, direct mail, brochures and catalogs, signs, in-store displays, posters, motion pictures, Web pages, banner ads, and emails.
Personal selling - A process of helping and persuading one or more prospects to purchase a good or service or to act on any idea through the use of an oral presentation. Examples: Sales presentations, sales meetings, sales training and incentive programs for intermediary salespeople, samples, and telemarketing. Can be face-to-face selling or via telephone.
Sales Promotion - Media and non-media marketing communication are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability. Examples: Coupons, sweepstakes, contests, product samples, rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins, and exhibitions.
Public relations - Paid intimate stimulation of supply for a product, service, or business unit by planting significant news about it or a favorable presentation of it in the media. Examples: Newspaper and magazine articles/reports, TVs and radio presentations, charitable contributions, speeches, issue advertising, and seminars.
Direct Marketing is a channel-agnostic form of advertising that allows businesses and nonprofits to communicate straight to the customer, with advertising techniques such as mobile messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution, promotional letters, and outdoor advertising.
1. Prospect for Leads
You can't prospect effectively without knowing all about your product(s). If you don't understand the product, how could you know who will want to buy it?
2. Set an Appointment
It's time to use those leads you collected in stage 1. Many salespeople prefer to cold call over the phone, but you can also call in person, send email or even mail out sales letters.
3. Qualify the Prospect
The qualification stage usually takes place at the appointment itself, although you can also qualify briefly during your initial contact. The idea is to confirm that your prospect is both able and potentially willing to buy your product.
4. Make Your Presentation
The presentation is the core of every sales cycle, and it's probably where you'll invest the most preparation time. Keep in mind that you're not just selling your product... you are also selling yourself! You represent your company, so appearance counts.
5. Address the Prospect's Objections
Here's where you get to deal with your prospect's concerns. The one you'll hear most often? "I have to think about it."
6. Close the Sale
Once you've made your presentation and answered your prospect's questions and objections, it's time to ask for the sale. This is the second-most neglected stage of the sales cycle... which is especially sad given that it's probably the most critical one.
7. Ask for Referrals
This is hands down the most commonly neglected step. Too many salespeople are so relieved to get a sale that they grab their things and race out the door the second they get the chance, for fear the prospect will change their mind!
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