Marketing, Finance, and Human Resources Guide

Posted on Oct 5, 2024 in Economy

Marketing

What are the Functions of Marketing?

Listening to the market to detect unmet needs, in order to create products that consumers want.

What are the Functions of Operating Marketing?

Manages operational marketing decisions, implementing the marketing program mix and concrete decisions on product, price, distribution, and communication.

What is Price?

Price is the monetary value assigned to a good or service. Conceptually, it’s defined as the value assigned to a product or service in terms of money and other parameters such as effort, attention, or time.

Factors to Consider When Setting a Price

  • Cost of manufacture
  • Product quality
  • Price competition
  • Brand image
  • Company profit goals
  • Place of sale
  • Demand and its fluctuations
  • Geographical area and product’s added value or differentiation

What is a Pricing Strategy?

It is a long-term market pricing basis. It sets the starting price for a product and the proposed direction for price movements throughout the product life cycle.

Types of Pricing Strategies

Skim-Pricing Strategy

Setting a relatively high initial price for a new product. The price is set at the highest level possible that interested consumers will pay.

Purposes:

  • Provide healthy profit margins
  • Connote high quality
  • Restrict demand to manageable production levels
  • Provide flexibility to the company

Favorable Conditions:

  • When the product offers genuine benefits that buyers are willing to pay for.
  • When the number of potential customers willing to buy at the initial price is high enough to generate profit.
  • When the product is protected from competition by barriers to entry (e.g., a patent).
  • When demand is fairly inelastic (typically early in the product lifecycle).

Customers often interpret a high price as an indicator of high quality.

Penetration Pricing Strategy

Setting a low starting price to quickly penetrate the market, attract a large number of consumers, and achieve high market share. High sales volume reduces production costs, allowing for further price reductions.

Prestige Pricing Strategy

Setting high prices to attract status-conscious consumers. Examples: Rolls Royce cars, Chanel perfume, Cartier jewelry, Lalique glass, and Swiss watches.

Competition-Oriented Pricing Strategies

  • Equated with competitors’ prices: Used when many similar products are on the market. The company has little control over price.
  • Differentiate with higher prices: Conveys an image of quality and exclusivity.
  • Differentiate with lower prices: Stimulates demand from price-sensitive segments.
  • Maintain price versus competition: Avoids unexpected consumer reactions to price changes.

Pricing Strategies for Product Portfolios

  • Product line pricing: Establishes price differences between products in a line.
  • Optional or complementary product pricing: Prices complements to enhance the main product’s attractiveness.
  • Captive product pricing: Sets high prices for essential add-ons (e.g., printer ink).
  • Product package pricing: Offers a combination of products at a discounted price.

Pricing Strategies by Geographic Area

Establishes agreements with buyers about shipping costs based on location.

  • Pricing factory: Buyer pays all shipping costs.
  • Pricing freight absorption: Seller absorbs part of the shipping cost.
  • Pricing consistent delivery: All buyers pay the same price, regardless of location.
  • Pricing delivery areas: Uniform delivered price within geographic areas.
  • Pricing with postage assumption: Seller assumes all or part of the shipping cost.
  • Pricing from a base point: All customers pay shipping from a designated city.

What are Convenience Products?

Generally have a low price.

Strategies to Promote New Markets

  • Include a complementary product
  • Apply discounts
  • Demonstrate the product in major stores

Role of Sales Representatives

Grow new sales.

Human Resources

Recruitment

Is Internal Recruitment Superior?

  1. Cheaper
  2. Faster
  3. Higher rate of validity and safety
  4. Motivates employees
  5. Leverages investment in staff training
  6. Develops healthy competition

Sources of External Recruitment

  • Candidate files
  • Posters or advertisements
  • Contacts with unions and associations
  • Contact with universities
  • Contact with other companies
  • Recruitment agencies

Internal Recruitment Sources

Filling vacancies by relocating employees. This can involve transfers, promotions, and staff development programs.

Structure of a Position Profile

Profile loading, position identification, job title, company, purpose of office, hierarchical dependence, subordination, contract type, requirements, and functions.

Types of Interviews

  • Direct or directed interview: Closed questionnaire, identical for all candidates.
  • Free or non-directed interview: Open-ended and improvised questions.
  • Mixed pattern interview: Combines fixed and improvised questions.
  • Tension or hard interview: Tests ability to work under pressure.
  • Technical interview: Assesses specific job-related knowledge and skills.

Stages of an Interview

  1. Greetings and welcome: Arrive a few minutes early.
  2. Informal conversation: Casual questions to ease tension.
  3. Behaviors: Listen carefully, think before responding.
  4. End of interview: Discuss next steps.
  5. Farewell: Do not rush the ending.

Finance

What is the Flat Tax?

The difference between the total tax and legal deductions, applying a percentage discount based on category.

What is a Settlement?

The formal agreement between an employee and employer that concludes the employment relationship and outlines final payments.

Requirements for a Valid Settlement

Must be ratified and signed before an authorized official, who verifies identities and informs parties of their rights. The employee may reserve the right to collect omitted benefits.

Information Required in a Settlement

  • Worker’s and employer’s names
  • Identification numbers
  • Marital status and profession
  • Addresses of both parties
  • Employment dates
  • Ratification date
  • Reason for termination
  • Amounts of payments
  • Reserved rights, if any

Compensation Calculation for Settlement in Case of Equity

Calculated based on the average of the last three monthly salaries.

Vacation Compensation Eligibility

At least 30 days of work.

Costing System for Break-Even Analysis

Performed under the variable focus, requiring knowledge of fixed and variable costs.

What is Break-Even?

The point where gains equal losses, indicating when a company starts making a profit (sales equal costs).

Applications of Break-Even Analysis

Applicable to products, investments, and company operations.

Usefulness of Break-Even Analysis

Determines minimum profits, providing a basis for pricing and margin establishment.

What is a Bond?

A long-term debt instrument issued by a company or government, promising future payment with interest.

What is a Stock (Share)?

A portion of a corporation’s capital stock, representing ownership and granting economic and political rights to the shareholder.