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Significance of Information in Marketing

By HWA | Publish On: September 7, 2011 | Posted In:

Significance of Information in Marketing Markets and the companies operating in markets are linked by information. Increase in the amount of information available to the companies can lead to the complex decision making environment. Lack of proper information at the company’s end will make the process of decision making a mere guess work. Though guess work is a cheaper way of decision making, it comes with a great price. One wrong decision can lead to major mistake and even the closure of the company in some cases. Thus, marketing managers need to take more calculated decisions in a dynamic environment.…

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Target Market Selection Assignment Help

By HWA | Publish On: | Posted In:

Target Market Selection The marketer develops a complete profile of the various segments found in the market, one or more is selected for a concerned marketing effort. This is known as market targeting. How to select potential target markets For effective targeting of market segments, segments must conform to the following criteria. Identification: Markets segments should be of such a nature that it is easily identifiable. Segmentation variables based on geographic or demographic information is easily identifiable, where psychographic information like lifestyle, activities and opinion is not that easy to identify. Potential market must be worthwhile to marketers and therefore be…

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Job Costing in Accounting

By HWA | Publish On: September 6, 2011 | Posted In:

Job Costing: From Accounting experts @ HwA A Job Cost System (job costing) accumulates costs incurred according to the individual jobs. Companies generally use job cost systems when they can identify separate products or when they produce goods to meet a customer’s particular needs. Job Costing assigns costs to a specific unit or to a small batch of products that passes through production as a distinct identifiable job. Each job is a separate cost object. Different jobs can vary considerably in materials, labor and manufacturing overhead costs, so job costing accumulates these costs separately for each individual job. Who uses…

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Activity Based Costing in Managerial Accounting

By HWA | Publish On: | Posted In:

Activity Based Costing Management Accounting Activity-based costing is a particular type of cost accounting methodology. Cost accounting in turn, is a subset of management accounting. Management accounting has an internal focus, as it is intended for use by management in decision making. The internal focus of management accounting contrasts with that of financial accounting applies generally accepted accounting principles to create statements intended for third parties outside the organization. Management accounting techniques, in contrast, use information from different disciplines including accounting and from multiple sources to assist management with internal problem solving. Here, we can understand that management accounting techniques…

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Market Segmentation: An important marketing strategy tool

By HWA | Publish On: | Posted In:

Market Segmentation in Marketing The starting point of segmentation is mass marketing. In mass marketing, the seller engages in mass production, mass distribution and mass promotion of one product for all the buyers. Henry Ford epitomized this strategy when he offered the Model-T Ford in one color, black. Coca-Cola also practiced mass marketing when it sold only one kind of Coke in a 6.5 ounce bottle. The argument for mass marketing is that it creates the largest potential market, which leads to the lowest costs, which in turn can lead to lower prices or higher margins. However, many critics point…

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Debt Equity Ratio: How much Debt is to be Borrowed

By HWA | Publish On: September 5, 2011 | Posted In:

How Much Debt should be Borrowed If a person wants to buy a car that costs $10000. He decides to make and down payment of 60% or $6000 and asks a bank to finance the remaining 40%. The bank is quite willing to enter into the deal, since it holds a car valued at $10000 as collateral for its $4000. This is a basic example of how a company would think in terms of raising finance through equity and debt. If the owners of the company provide all the finance and don’t rely on debt, then we can say the…

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Risk-free Investment Model

By HWA | Publish On: | Posted In:

Risk-free Investment  Suppose there is no risk or a problem that needs to be faced. By claiming that there is no risk, one can assume that if an amount is invested in order to receive a stream of benefits in the future, all those future benefits are certain to arrive. This is problematic because the purpose of the analysis is basically to enable us to distinguish among projects. If the world were to entail no risk, this must mean that all the future cash flows would be known with certainty. Then so far, no investment opportunity could be any better…

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