4. Management

Management plays a vital role in any business or organized activity.

Managers deal with decision making. This people devote much time to developing long-term plans for their organizations. They make decision whether to produce new products and how to sell them, to purchase some assets or to begin foreign activity. They must have economic background to be analyze a business information to make decision. They usually possess human relation skills and the ability to work with people, to create a working environment where all their colleagues can contribute their best skills.

The fours basic functions of management are: Planning, Organizing, directing and controlling. The importance of each of them depends of situations.

Planning. Preparation of the plan is always considered as the initial phase of management. It means that someone has to decide: what, how, when and who should be executed

Organizing. Is the process of putting the plan into action.

Directing is guiding and motivating the employees to work efficiently to achieve the goals and objectives of the organization.

Controlling is evaluating how well the company’s objectives are being met.

Kind of manager: administrator and manager ( work in public or nonprofit organization, like hospital administrators), line manager have responsibility for work activities that are directly connected with the production, staff manager to support the work of line personnel. General managers are responsible for multiple functional areas of activity. Functional managers have various areas of specialization (marketing, operations, finance, human resources).

5. Marketing

Marketing is a complex area of business which includes buying, selling, market research, transportation, storage, and advertising.

Department of a marketing must have in every company. This science help to promotion a good or service from producer to the end users. In 1960 a famous marketer Jn. Makcarty propose 4’P classification .

There are four principal controllable factors – the four P’s : product, Price, Place and promotion.

Price is the amount a customer pays for the product.

Product – is a tangible object or an intangible services that is produced. Intangible products are services based like the tourism industry, hotel industry.

Place includes location of production and distribution. The place to see your product could be in dealers’ showroom or directly from the factory or from catalogs, direct-mail coupons, even telemarketing with telephone sales people or through computer shopping services.

Promotion is process of communication with consumer. includes all forms of marketing communication (advertising, direct mail, image, PR – sponsors deals, conferences, seminars). More three ’P have been added to the marketing mix – People, process, physical evidence

6. Pricing

Pricing is the process of determining what company will receive in exchange for its product. Pricing factors are manufacturing costs, market place, competitions, quality of product. Price is one of the elements marketing mix. Price is the amount a customer pays for the product. The needs of consumer can be transformed into demand only if the consumer has the capacity to buy the product.

Pricing is very important in the process of creating and promotion a new good or service.

Some following is a general sequence of steps that might be followed for developing the pricing of a new product:

• Develop marketing strategy – perform marketing analysis, segmentation, positioning;

• Make marketing mix decisions - define the product, distribution, and promotional tactics;

• Estimate the demand curve – understand how quantity demanded varies with price;

• Calculate cost – include fixed and variable costs associated with the product

• Understand environmental factor – competitor and so on.

• Set pricing objectives – profit maximization, revenue maximization or price stabilization

• Determine pricing.

Principles of pricing:

• The principle of scientific substantiation of prices

• The principle target direction of prices

• The principle of continuous pricing process

• The principle of communication with the general pricing policies of the enterprise and market conditions.