Definition: Balanced Funds also called as Hybrid Funds, invest in both the equities and the fixed income instruments. In other words, the funds that offer the investors an opportunity to buy a single mutual fund that yields the growth and income at the same time is called as the balanced funds. The proportion of funds to be invested in equity and debt is predefined in the … [Read more...] about Balanced Funds
Mutual Funds
Definition: The Mutual Funds are the professionally managed investment companies that pools the resources of several investors who shares the common financial goal. The funds so collected is reinvested by the fund manager into different types of securities ranging from shares to debentures to money market instruments depending upon the objective as stated in the mutual fund … [Read more...] about Mutual Funds
Packaging
Definition: The Packaging refers to all those activities related to designing, evaluating and producing the container for a product. Simply, the box-like container, wherein the product is stored to protect it from any physical damage and at the same time attracting the customer through its appeal is called as packaging. The product might have three layers of packaging, such … [Read more...] about Packaging
Product Mix
Definition: The Product Mix also called as Product Assortment, refers to the complete range of products that is offered for sale by the company. In other words, the number of product lines that a company has for its customers is called as product mix. The Product Line refers to the list of all the related products manufactured or marketed by a single firm. The number of … [Read more...] about Product Mix
Bases of Market Segmentation
Definition: The Market Segmentation means dividing the entire consumer market into the subgroups, such that the customers in each group share the common set of needs and wants and have more or less similar or related characteristics. Bases of Market Segmentation The firms can segment the market on the following bases: Geographical Segmentation: Here, the segmentation … [Read more...] about Bases of Market Segmentation
Market Segmentation
Definition: The Market Segmentation means, breaking down the entire consumer market into the subdivision of customers who share the similar set of needs and wants and have more or less related characteristics. The purpose of the market segmentation is to categorize the heterogeneous market into the groups that are homogeneous in nature so that firms can focus completely on a … [Read more...] about Market Segmentation
Market Survey
Definition: Market Survey is another most widely used sales forecasting method which is used to gather information related to the market that cannot be collected from the company’s internal records or the external published sources of data. The market survey method is typically employed in the situations where the primary data or first-hand data is required to forecast the … [Read more...] about Market Survey
Analytical and Statistical Methods
Definition: There are several Analytical and Statistical methods of sales forecasting, that a firm can employ on the basis of its forecasting needs. These methods are listed below: Simple Projection Method: Under this method, the firm forecast the current year’s sales by simply adding up the expected growth rate to the last year’s sales. This growth rate can be determined … [Read more...] about Analytical and Statistical Methods
Market Test
Definition: The Market Test is an experiment conducted before the commercialization (launch) of a new product to find out the facts about the product such as Is the product the right one? Is the product reasonably priced? etc. On the basis of such findings, the firm may either accept or drop the product idea. The Test Marketing is one of the methods used under the Market … [Read more...] about Market Test
Substitution Method
Definition: In Substitution Method or a Replacement Method, the management first works on the sales forecast of the existing product, using any methods of forecasting and then uses this data to forecast the sales of a new product that will be launched as a substitute for the old product. Simply, the method used to forecast the sales of a new product on the basis of the sales … [Read more...] about Substitution Method