Definition: Compensation is the reward an employee receives in return for their valuable efforts while performing various jobs in the organization. Compensation management deals with every type of reward and its allocation in the most desirable way. These compensations are managed effectively to achieve equity, transparency and consistency across the organization. It is an … [Read more...] about Compensation Management
Direct Marketing
Definition: Direct Marketing is a personalized form of marketing that establishes direct interaction with the potential customer. In this, the marketer’s target the correct type of audience for promoting their products. Its goal is to get a response from the target customer. One must note that it does not necessarily have physical interaction. A company can opt for online … [Read more...] about Direct Marketing
Segmentation
Definition: Segmentation implies a process of fragmenting the diversified market containing similar attributes or needs. It is the first stage of the STP decision process (Segmentation, Targeting and Positioning). It is a tool to achieve stability in a highly competitive market in the long run. Classification of market segments depends on certain variables. These variables … [Read more...] about Segmentation
Circular Flow Model
Definition: The Circular Flow model represents the continuous flow of money among the sectors of the economy. The process of exchange results in economic activities like production, consumption, investment and expenditure. It plays a significant role at the time of calculating national income. The sectors include: Domestic or Household Corporate or Firms Government … [Read more...] about Circular Flow Model
Management Report
Definition: The management report is a means of communicating essential information from high to low levels of management. It consists of facts and significant data presented through written, oral and visual tools (Graphs, Charts and Pie-Charts). It provides an insight about the departmental progress through financial and non-financial data of a specified period. Timely … [Read more...] about Management Report
Financial Statement Analysis
Definition: Financial Statement Analysis is an analysis that assesses the financial wellbeing of the firm, its strengths and areas of concern. It determines relations among various items in the statements. It aims to scrutinize, interpret, compare and depict useful relationships among financial statements (Balance Sheet/ Income Statement) within and across the … [Read more...] about Financial Statement Analysis
Staggered Board
Definition: Staggered Board or classified Board is a board which consist of different classes of the directors for different terms or time period, as the election is conducted at a different point so that all the director’s term will not expire at the same time. In general, there are three classes of directors whose tenure and responsibilities are decided by the company. The … [Read more...] about Staggered Board
Differential Pricing
Definition: Differential pricing, also known as dual pricing is a two-price system or segmented price system in which the seller charges different prices for the same product for different buyers. With respect to demand and supply in the market, this system sets us a free market system. The basic concept of this system is that it is a fluctuating price system, i.e., some … [Read more...] about Differential Pricing
Marketing Research
Definition: Marketing research is a system of identifying and analyzing the information related to the techniques and problems of marketing. It is a study of the market such as consumer, buyer and seller’s behaviour about the prices, their purchasing power, brand loyalty and many other marketing activities. It helps the marketers in determining the contribution of various … [Read more...] about Marketing Research
Departmental Accounting
Definition: Departmental accounting is an accounting system used by organizations to manage the accounts of their various departments in separate books, i.e., for every department separate trial balance and profit and loss account is prepared, and at the end of the year balances of each department gets transferred to general profit and loss account, prepared to find out the … [Read more...] about Departmental Accounting