When we hear the terms 'forecasting' and 'prediction', that one thing that strikes our mind is the future. In business, estimation of the demand of the product in future is called forecasting. It is not similar to prediction. Prediction is simply the guess of the manager. Forecast relies upon the scientific analysis of past data. But, prediction is dependent upon subjective considerations. The job of the manager becomes quite easier when he has an accurate forecast. It is a well-known fact … [Read more...]

We use the point elasticity method when the changes in price and quantity demanded is very small. Hence, it is easy to calculate the elasticity at a point. And because changes are quite little, one can take the original price and quantity, as a base. But, what to do when the change is substantial? One can neither take the initial price nor the final price as a base. In such a case we use the arc elasticity method, wherein we use an average of both initial and final price. What is … [Read more...]

Inbound Marketing is a form of marketing. In this, the customer sees ads when they search for a particular product that the company offers. Paid search advertising is one classic example of inbound marketing. Outbound Marketing, is another form of marketing. Here, the marketer finds out customers, starts interaction and conveys information in the form of messages to people irrespective of their interest. The basic difference between inbound and outbound marketing is that in the case of the … [Read more...]

In a firm that undertakes manufacturing activity, the inflow and outflow of material occur at frequent intervals. As production can take place only when there is sufficient material. In this way, the need for material emerges every now and then. With the help of purchase requisition, permission to purchase the material is sought by various departments. Further, the placement of an order for buying the material takes place on the approval of purchase requisition. It is the purchasing … [Read more...]

In segmentation, the entire market of consumers is broken down into a number of groups. These groups are segments that comprise consumers with similar characteristics. Of all these segments the company chooses one segment to focus on, to offer their products. This is the process of targeting. We all know that, when all the consumers of the product are taken together, it makes up the market for that product. But this is also true all the consumers are not the same. Therefore, the consumers may … [Read more...]

Supply implies the quantity of a commodity, which suppliers are ready to offer for sale at a definite price over a period of time. In other words, supply is what the supplier is able and willing to offer for sale to the customers. In contrast, quantity supplied implies the amount of a particular commodity that the firm is willing and able to make available for sale at the given price at the given period of time. The seller of the product represents the supply side of the commodity. This may … [Read more...]

Notice and circulars are used as a form of written communication, to give or exchange information with the staff. Notices are commonly found on a notice board, specially meant to bring attention to the people who pass by. On the other hand, Circulars are the tool of internal communication that is used to convey the message to various addressees within the organization. It is brief and formal. The notice covers the information which we want to be noticed (paid attention to) by a maximum number … [Read more...]

APC and MPC are two concepts in economics, which sound similar. However, while average propensity to consume (APC) can be described as the fraction of aggregate consumption to aggregate income, marginal propensity to consume (MPC) is the fraction of change in the consumption expenses, to income. What is Propensity to Consume? Propensity is the inclination towards something that drives your behavior in a definite manner. So propensity to consume is the drive to consume corresponding to income. … [Read more...]

Collection of data is the first step in the field of research and once the collection process is complete the next step is to look for ways to condense and arrange the data, to study their characteristics. This process is known as the presentation of data. Data in its original form which the researcher first collects from research is termed ungrouped data. In simple words, ungrouped data or raw data is a mere list of numbers that does not convey anything. This is because no summarization or … [Read more...]