Pricing

All products and all services have prices. The price depends on different things such as credit terms, delivery, guarantees, quality and other forms of service, which price can produce the biggest profit during a long period of time. it’s hardly possible to determine such a price. The price may be too high to produce a large volume or too low co cover costs. No other area of marketing operations has been a subject to bad practice. Many business pursue unsound price policies for long periods of time and are not aware about it.

Prices can be determined in different ways. For example, the prices on meat, cotton and other agricultural products can be decided in a large central market where forces of supply and demand exist. This is pure price competition. The prices on industrial products (iron, steel, etc.) are usually decided by large companies. As a rule the amount and price of goods sold to the large number of buyers are controlled by a few competing sellers. Prices also can be set by the government, usually for different public services – railroads, electricity, manufactured gas, bus services, etc.

If demand increases, price rise, profits expand and new investment is attracted. But other factors may be involved as well. Prices are related to each other in different ways. Ultimately, everything is related by price, since the consumer can buy and must pay for everything out of a particular, limited amount of money.

Marketing

Marketing involves analyzing and understanding customer demand in order to enable the company to provide the most appropriate products and services.

A company’s approach to achieving its marketing objectives is called marketing strategy.

The various factors a company must take into consideration when developing its marketing objectives are referred to as marketing mix. The marketing mix is often summarized as the so-called four P’s: product, price, place, promotion: what to sell, to whom, to where and with what support.

Product can be defined as goods or service that you are marketing and includes its design, quality and reliability.

Price refers to how much money a company charges for its product. The marketing view of pricing involves considering the value of a product, the value of sales required.

Place refers to distribution, that is, how and where the product is made available to customers.

Promotion means presenting the product to the customer. Promotion involves considering the packing and presentation of the product, its image, the product name, advertising.

Organizational Structure

The structure of organizations varies greatly according to the nature of the business. There are several factors which influence this structure:

• the number of employees and location;

• the economic sector;

• the type of market in which they operate;

• the type of customer;

• the degree of management control required;

• the complexity of the business activities.

The company is run by a Board of Directors; each Director is in charge of department. However, the Chairman of the Board is in overall control and may not be the head of any one department. The Manager Director (sometimes called the Chief Executive, or President) is the Head of the company, who has overall responsibility for the running of the business.

Most companies have Finance, Sales, Marketing, Production, Research and Development (R&D) and Personal Departments. These are the most common departments, but some companies have others as well.

Most departments have a Manager, who is in charge of its day-to-day running, and who reports to the Director; the Director is responsible for strategic planning and for making decisions. Various personal in each department report to the Manager.

People at the head of an organization are often called top executives or senior managers.