What is meant with market value?

"Market value" means the usual selling price at the place where the property to which the term is applied shall be at the time of assessment; being the price which could be obtained at a private sale or an auction sale, if it is determined by the assessor that the price from the auction sale represents an arm's length transaction. The price obtained at a forced sale shall not be considered.

Market value is based on the concept of an open and competitive market in which transactions are free of duress or forced liquidation. Valuation approaches differ according to the field of application, goals and methodologies used.

To estimate market value, a valuer must first determine highest and best use, or most probable use. Market Value is estimated through application of valuation methods and procedures that reflect the nature of property and the circum-stances under which given property would most likely trade in the (open) market. The most common methods used to estimate market value include the cost approach, sales comparison approach, and the income capitalization approach, including discounted cash flowanalysis.
What is meant with market value?

What are emerging markets?

The term emerging markets was coined in 1981 by Antoine van Agtmael, the then director of the Capital Markets Department of the International Finance Corporation (IFC), the private sector development arm of the World Bank Group.

An emerging market, by definition, is a country that attempts to transform its economy by improving its operation to the levels of the world's more advanced nations.

In other words, emerging markets are financial markets of developing countries. They allow economies to become more competitive and more open to international investors. They have implemented liberal economic policies and practices such as adopting international financial standards abroad-based discriminatory controls for nondomiciled investors.

They are economies that present high risk but also potentially high rates of growth; they have low per capita Gross Domestic Product. Emerging markets are the result of the financial support programs of international institutions with the primary goal of creating stronger economies.
What are emerging markets?

Brand equity

It is a concept born in the 1980s, has aroused intense interest among marketing managers and business strategies from a wide variety of industries.

Brand equity is a set of brand assets and liabilities linked to a brand, its name and symbol that add to or subtract from the value provided by a product or service to a firm and/or to that firm’s customers.

For assets or liabilities to underlie brand equity they just be linked to the name and/or symbol of the brand.

Brand equity describes the way that the differential attributes of a brand give increased value to a firm’s balance sheet. It has been argued that brand equity can be nurtured over time.

If a consumer has high degree do association with the brand it leads to high level of brand equity. Highly trusted brands like Samsung, LG, Tata, enjoy high degree of brand association.
Brand equity

What is retail advertising?

Advertising is ‘paid, non-personal communication through various media by business forms, nonprofit organizations, and individuals who are in some way identified in the advertising message and who hope to inform or persuade members of a particular audience includes communication of products, service, institutional and ideas’.

Retail advertising is the mechanism by which the store reaches out to communicate, inform and influence people in their own environment.

Unlike general advertising retail advertising does not undertake regular advertising activities. It may be done occasionally to meet certain specific requirements. It mostly aims to increase sales.

The advertising message is prepared from time to time to advertise a specific product. Retail advertising’s function is primary to inform potential buyers of the availability and price of a retailer’s offering with the objective of developing consumer preferences for a particular retailer.

Retailers most commonly use the following advertising medial internet, newspaper, radio, television and printed circulars. An interesting dimension of retail advertising is that it is a way a store presents what a consumer can expect at the store.
What is retail advertising?

What is stealth marketing?

Stealth marketing is the practice of promoting goods or services without disclosing the relationship between the person doing the promoting and the business that offers the good or service.

Stealth marketing is a guerrilla marketing tactic that is similar to buzz marketing: however, a key difference is that with stealth marketing consumers are completely unaware that they being marketed to.

For example bloggers often write about new products, but they don’t always tell whether they’re getting paid to blog about the product.

Another example, when Sony Ericson Mobile Communication Company wanted to promote a new camera-cell phone, they created the ‘fake tourist’ campaign, Young attractive couples posed as tourist in popular vacation spots around United States.

They asked passerby to snap their photo with phone. The chance encounter became a moment to generate interest and buzz about the product.

Stealth marketing and advertising takes many forms. It can be actresses placed in strategic locations with conspicuously branded shopping bags openly discussing a new brand that’s the next big thing. It can be company boxes placed around the locations with a ‘delivery man’ commenting on how busy he’s been delivering this brand lately.

Today, stealth marketing is quite common online – not just on blogs, but also on sites that allow customers to post reviews and social media sites like Facebook and Twitter.
What is stealth marketing?

Counter-purchase

Counter-purchase is probably the most common form of counter-trade. Counter-purchase differs from barter in its use of financial payments in both the sale and purchase of the countertraded goods.

A counter-purchase involves an exporter who secures a sales order undertaking to purchase in return certain goods and services from the importing country.

There are two parallel but separate contracts, one for the principal order which is paid for in normal cash or credit terms, and another for the counter-purchase.

The counter-purchase may vary in value between 10 to 100% of the original export order. The import bought need not be related in any way to the goods/services exported.

Penalties, which are usually in the range of 10-15 per cent but may be higher, are enforced for failure to carry bout the counter-purchase, even when the main reason for it’s the bad quality or limited choice of goods on offer.

Nevertheless, the western partner may deliberately choose to pay the penalty rather than buy the goods.
Counter-purchase

Cooperative advertising

The main sources of newspaper ad revenues are local retailers, classified ads and cooperative advertising.

Cooperative advertising is a situation in which a manufacturer offers retailers an advertising program for the latter to run. There is a financial agreement between the manufacturing and retailing echelon of a supply chain.

There are three types of cooperative advertising:
*Vertical: describe as a financial agreement, where a manufacturer offers to share a certain percentage of his retailers advertising expenditures. For example Royal Cruise pays for a downstream retailer’s ads, such as a travel agent’s ads.

*Horizontal: Local dealers in a geographical area pool money, as in automobiles or fast food chains.

*Ingredient producer cooperative: when the producer of an ingredient, such as NutraSweet pays part of an ad run by the user product, such as Diet Coke.

The intent of cooperative advertising is often to stimulate short-term sales. One reason manufacturers use cooperative advertising is the impracticality of listing all their dealers in national advertising. Also cooperative advertising encourages retailer to devote more effort to the manufacturer’s lines.
Cooperative advertising

Long term forecasting

Forecasting time horizon can be defined on three categories: short-term, medium-term and long-term.

Long-term forecasts involve purely strategic decision for a time period of about 5-10 years, so the forecasting processes need to cater to these requirements. For example, an organization may be interested in projecting the future technology trends in their business and use it as the basis for developing new products, production technology, and human and other resources.

Confidence in statistical forecasting is dependent upon the time frames for forecasting and the nature of the information being forecast.

Short-term forecast are generally are accurate in policy analysis than are long-term forecasts. Different disciplines permit greater long-range forecasting than others.

Limitation for long-term forecasting horizon – in most cases the available time series forecasting methods are unreliable over a long time span.
Long term forecasting

Internal marketing

To foster teamwork among all departments, the company carries out internal marketing as well as external marketing.

Internal marketing, the application of marketing management to the corporate organization, was first suggested in the late 1970s. Since then it has been adopted widely in management and marketing.

Internal marketing is the task   of successfully hiring, training, and motivating able employees who want to serve the customers well.

It is the philosophy of treating employees as customers-indeed, and is the strategy of shaping job-products to fit human needs.

Internal marketing must precede external marketing. It makes no sense to promise excellent service before the company’s staff is ready to provide excellent service.

The internal marketing concept was first proposed in the mid 1970s as a way of achieving consistent service quality – a major problem in the service area.

Internal marketing requires:
*The acceptance of marketing techniques and philosophy
*Customer orientation/market orientation
*A participative approach to management
*A strategic approach to human resource management
*The coordination of all management activity to achieve customer or market orientation
Internal marketing

Integrated marketing

Marketing has always meant and will continue to mean, responding to customers to increase sales. When all the company’s departments work together to serve the customer’s inters, the result is integrated marketing.

Generally, integrated marketing coordinates different marketing strategies, such as public relations, advertising, social media, and more, rather than each strategy working independently of each other.

Unfortunately not all company employees are trained and motivated to work for the customer.
Integrated marketing

Integrated marketing means two things. First the various marketing functions – sales force, advertising, product management, marketing research and so on must be coordinated among themselves.

Second, marketing must be well coordinated with other company department. Marketing does not work when it is merely a department: it work only when all employees appreciate the impact they have in customer satisfaction.

The basic idea of integrated marketing is to achieve an effective overall communication not only with consumers but also other key stakeholders by integrating all communication activities through a common message. In other word, the goal of inveterate marketing is to achieve synergy and consistency in the message relayed to all groups.
Integrated marketing 

Distribution strategy

Distribution channels are the means by which goods are distributed from the manufacturer to the end user. The American Management Association calls the channels of distribution ‘organization network of agencies and institutions which in combination perform all the activities required to link producers with users to accomplish the marketing task’.

Some companies own their own means of distribution some only deal directly with the most important customers but many companies rely on other companies to perform distribution services for them.

There are many strategic options for the structure of a marketing channel.  A good distribution strategy is essential for success because once a firm selects a channel and makes commitment to it, distribution often becomes highly inflexible due to long-term contracts, sizeable investments and commitments among channel members.

Huggies diaper for intensive distribution channels

The key objective in building an effective distribution strategy is to build a supply chain to the markets. In international marketing, distribution channels are diverse and may vary from one country to another country and even within countries, there may be different modes and systems required to reach the products to the final consumers.

There are three basic structural options for distribution in terms of the amount of market coverage and level of exclusively between vendor and retailer:
*Exclusive distributions – Work with a single intermediary for product that requires special resources or positioning. Examples: BMW car, Rolex watch

*Selective distribution – Work closely with selected intermediaries who meet certain criteria: typically used for shopping goods and some specialty goods. Example: Clothing, Hewlett Packard printers

*Intensive distribution – achieve mass-market selling, goods must be available everywhere. Example: Pepsi-Cola, Frito-Lay, Huggies diaper
Distribution strategy 

Product poisoning

How customers perceive the relative value of a product in comparison by using important product differentiation criteria is referred to as the product position.

Product positioning shall be defined as the decisions and activities intended to create and maintain a certain concept of the firm’s product relative to competitive brands in customers’ minds.

The ultimate aim of positioning is to secure sales figures or in more precise terms, the right product positioning helps consumers to make their purchase decision in favor of a certain product.

When marketers introduce a product, they try to position it so that it appears to have the characteristics that the target market most desires.

The simplest way to understand product positioning is by using a grid called a perceptual map that illustrate the relative position of competing products as perceived by customers.
Product poisoning

Marketing information system

Marketing information is useful only of it can help a marketing manager to make a decision. In order to be useful, information should be of high quality, relevant timely and complete.

What is a marketing information system? A marketing information system can be  defined as a set of procedures and methods for the regular planning, collection, analyses and presentation of information for use in making marketing decision. It is a structure of people, equipment, and procedures used to gather, analyze, and distribute information needed by an organization.

The information is part of on-going data-gathering process involving initial data collection as well as routine and systematic data collection procedures. This requirement distinguishes marketing information system database activities from ad-hoc, one time project-oriented data gathering characteristic of traditional forms or market research.

Philip Kotler has identified three types of marketing information:
*Marketing intelligence: information comes from the environment
*Internal marketing information: information flows within the firm
*Marketing communications: information flows from the firm outward to the environment
Marketing information system

Marketing planning

Marketing is about providing goods and services for which there is a known customer demand, rather than selling wheat the company likes to produce.

It is an exchange relationship: a process providing mutual benefit to both parties in the transaction.

It is a managerial process involving analysis, planning, implementation and control. Excellent marketing planning is a core requirement for marketers.

The purpose of marketing planning and its principle focus are the identification and creating of competitive advantage.

Marketing planning is the planned application of marketing resources to achieve marketing objective.  It is a systematic process involving the assessment of resources and the marketing opportunities and threats.

It will require a so-called approach with plans such as production, finance and personnel linking with a marketing plan.

The marketing planning process enables information, aims and ideas to be developed into a document that can be easily understood, evaluated and implemented.

Marketing represents a holistic, competitive orientation for business. Marketing planning clearly involves the matching of an organization’s resources with environment, opportunities and constraints in its efforts to achieve long –term ‘strategic’ competitive advantage.
Marketing planning