Controlling marketing activities : What is annual plan control? Why is it needed in an organisation?

Correct Answer: Profitability control is a mechanism of monitoring the sales made, profits earned and expenditure incurred by a company The relative profit earning capacity of a firm?s products and consumer groups can be determined via profitability control Sometimes surpisingly, it may be found out by companies how a small proportion of their products and even customers actually account for a significant percentage of the company?s profits This can be achieved through profitability control At times when the companies earn surplus profits, then such profits may even be ploughed back or reinvested This also forms part of profitability control

Correct Answer: In direct marketing, there is a direct interaction of the customers with the seller without any intermediaries Here, the role of the intermediaries is nil The medium used is more direct using telephone, mail, internet where the seller can directly reach out to the consumer Examples of such marketing include telemarketing, email, voicemail marketing, door-to-door selling etc This kind of marketing is more time saving as the problem of distance which may otherwise exist between the buyer and seller is eliminated and is also cost effective as it minimizes commuting costs

Correct Answer: Public relations includes promotional activities that work to create a strong public image of the company Public relations activities include helping the public to understand the company and its products Public relations if done right can reach a large audience without the expensive cost of traditional advertising and marketing

Correct Answer: We can say that sales promotion is a cost effective technique by which an organisation can achieve its sales volume or the marketing objectives by providing value added product and not just an ordinary product to the end user or even the intermediaries It is short term by nature and is suitable enough for generating sales within a short span of time Sales promotion techniques are being increasingly used by retailing organisations some of which include advertising, providing discounts and allowances or a 'buy one get one free offer' etc

Correct Answer: aDirect interaction with customers: The retailer acts as the final link between the organisation and its customer The retailer knows his customer better than anyone He even suggests the customer what to purchase and allows him credit facilities to encourage frequent buying behaviour in the customer bSmall purchases: The customer purchases goods in small lots from the retail stores So there are frequent visits to the retail store by the customer cInstrument of marketing communication: via which information about the product is disseminated to the needy customers

Correct Answer: Internal marketing is the process of motivating and empowering the employees of a company to work as a team for the overall well-being of the customers and thereby the company itself This is actually the core to succes of a company A harmonised effort within the company is an utmost necessity to provide customers with services at a desired level If a firm doesn't deliver the service it promises in its marketing campaign, it will fail for sure And it only can keep that promise when all of its employees at all levels realise what actually it is going to deliver

Correct Answer: An up - selling is getting the customer to spend more money, buy a more expensive model of the same type of product, or add features or warranties that relate to the product viewed or purchased A cross - sell is to get the customer to spend more money by adding more products from other categories than the product being viewed or purchased

Correct Answer: It is an investment strategy that involves the buying of money market instruments or currencies in anticipation of a price rise or a future increase in demand Buying forward allows an investor to take advantage of future and potential profits by buying now at alower price, and selling when prices rise

Correct Answer: It refers to the possibility for an investor to experience losses due to factors that affect the overall performance of the financial markets Market risk cannot be eliminated through diversification, though it can be hedged against The sources of market risk include natural disasters, recessions, political turmoil, changes in interest rates and terrorist attacks

Correct Answer: It refers to a forecast regarding the future trend of a particular company, economic segment, Commodity or stock market exchange Market outlooks are based upon past performance, prevailing economic factors, consumer demand and opinionIt is also called market forecast