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Marketing strategies and practice m.com. semester – iii question bank

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  M.COM. SEMESTER – III BUSINESS STUDIES (MANAGEMENT)  MARKETING STRATEGIES AND PRACTICE Q.4. Define Marketing Opportunity Analysis. Describe its process in brief. ANS: Market Opportunity Analysis is a tool used by a firm to identify the attractiveness of a business opportunity in terms of its feasibility and viability. This is conducted before undertaking the new product of service Marketing Strategies and practices to estimate profit and revenue it can generate in a particular market. The most important factor which is determined during the market analysis of a product is its Forecasted Demand. Market Opportunity Analysis helps in answering the following question: ·        Which is the most profitable segment? ·        What is the rate of growth of opportunity? ·        What is the density and intensity of competition? ·        What is the gap which is not filled by competitors’ product? Market Analysis if carried out properly leads to creation of marketing intelligence which will help us in formulating right marketing strategies for right market segment at right time. It helps in determine how to provide a better product to the market than being currently offered. This will make customers prefer the firm’s product over competitors’. Process of Market Opportunity Analysis: The process of analysis of market opportunity comprises of the following steps: 1. Scanning and Analysis Macro Environmental Forces: The external environmental factors like economic condition, policies and trends, political environment, legal system, social and environmental pattern and technological trends are studied with a view to determine their possible impact on the business and its market. 2. Describe the Industry: The analysis of industrial environment is done to find its current trend and anticipating its future. Michael Porter Five Forces Model is a popular tool used to determine an industry’s long term attractiveness. The five forces which are examined in this model are: i. Rivalry among Existing Competitors: The firms in the same industry producing products which are close substitute of each other. Factors like investment intensity required to start and sustain the firm, difference in product characteristics, cost of switching from one brand to another etc. are the factors to be studied under this force. ii. Threat of New Entrants: New entrants intensify the competition more. The greater this threat is the less attractive is the industry. The threat increases when it is easy to attain economies of scale, less capital requirement at outset, easy to gain distribution etc. iii. Bargaining Power of Suppliers: the supplier to a firm may have increased bargaining power if the cost of switching the suppliers is high for the firm or substitute are either less in number or are Introduction to Marketing Strategies expensive. If the firm can undertake backward integration the bargaining power supplier become less. iv. Bargaining Power of Buyers: Factors like price, product quality, added services help. Other factors which may influence the bargaining power of buyers are number of buyers, switching cost for buyers, product’s performance and its importance for buyers etc. v. Threat of Substitute Products: Substitute are the alternative of product types (not the alternative of a brand) that can perform similar function. The more similar is the performance of substitute to the main product, higher is the threat to the firm. Substitute products are generally put barrier to the product by limiting its price. Michael Porter Five Forces Model Source: www.business-to-you.com 3. Detailed Analysis of Competitors: The firm has to do a detailed analysis of the competitors in the industry, howsoever big or small, for gaining market intelligence to take right strategic decisions. Some of the factors to be studies are product description, strength and weaknesses (relative), market share, strategies related to pricing, promotion and placing etc. 4. Creating Profile of Target Market: The firm need to understand and record the essentials features of target consumers and market. The answering the following questions may help the firm to draw a profile sketch of target market: ·        Who are the potential customers? ·        What is their need? Or what are they looking for? ·        When do they need? ·        Which distribution channel can help reaching them? ·        What are the factors influencing their buying decisions? ·        What are the trends? 5. Set Sales Projections: Information collected using different techniques is deployed for forecasting sale of the product. The data also help in anticipating most optimistic and pessimistic scenarios for future. Taking all facts and analysis into account, the most realistic sale projection is recorded for evaluation purpose. If you want exam most important question bank pdf then you have to pay per subject 100/- rupees only .  Contact 8652719712 / 8779537141  Telegram Group Mumbai Univeersity :- https://t.me/mumbaiuniversityidol Suraj Patel Education :- https://t.me/surajpateleducation F.Y.J.C EXAM :- https://t.me/FYJCexam S.Y.J.C EXAM :- https://t.me/SYJCexam F.Y EXAM :- https://t.me/fyexam S.Y EXAM :- https://t.me/syexam T.Y EXAM :- https://t.me/tyexam M.Com Part 1 EXAM :- https://t.me/McomPart1Exam M.Com Part 2 EXAM :- https://t.me/McomPart2Exam M.A EXAM :- https://t.me/mastudentsexam  YouTube Channel  https://www .youtube.com/channel/UCv8JIY58xfWHUIXVu9wxNHw marketing strategies and practice m.com. semester – iii question paper marketing strategies and practice m.com. semester – iii question bank m.com sem 3 marketing strategies and practices question paper marketing strategies and practice m.com. semester – iii question bank current year M com semester iii marketing strategies and practice question bank with answers M com semester iii marketing strategies and practice question bank pdf M com semester iii marketing strategies and practice question bank m com 3rd sem solved question papers marketing strategies and practices question paper m.com 3rd sem question papers with answers marketing strategies and practices m.com sem 3 question paper m.com question papers with answers pdf mumbai university Marketing strategies and practice m com semester iii question bank with answers Marketing strategies and practice m com semester iii question bank pdf marketing strategy questions and answers pdf marketing strategies and practices question paper m.com 3rd sem question papers with answers m com 4th sem solved question papers M com sem 3 marketing strategies and practices question paper 2020 M com sem 3 marketing strategies and practices question paper 2019 M com sem 3 marketing strategies and practices question … Read more

marketing strategies and practice m.com. semester – iii question bank

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M.COM. SEMESTER – III BUSINESS STUDIES (MANAGEMENT) MARKETING STRATEGIES AND PRACTICE Q.2. State different types of Marketing Strategies ANS: The Marketers use the different combination of marketing mix (4Ps to 7Ps) to get advantage over the competitors in the market. The position of the firm in the market plays a major role in deciding the strategies. Following the strategies based on different positions in the market. 1. Market Leader Strategies: This is adopted when the firm enjoys maximum share of market. Here the firm focuses on expanding the market size, defending its share and increasing the relative market share. It can be achieved by identifying new segments for sale of product, introducing differentiation (of price and product) to stand apart from the competition and introducing scheme to infuse more sale in the existing market segments. Leaders have to beware of challenger’s strategies and continuously work on their weak areas. 2. Market Challenger Strategies: The challengers work on identifying the areas where the leader may be weaker like change of technology, dissatisfied customers etc. ·        The challengers can adopt frontal attack strategy by adopting the same features of goods and making choice for consumer difficult ·        The challengers may take up flank attack if frontal is not possible or otherwise too. Here challenger attack where ever the market leader is weak or is caught off-guarded. ·        The encirclement attack can be taken up by adopting both frontal and flank attack at the same time ·        The challengers can take less offensive course by capturing the segments or markets which have not been taken up by leaders and gradually increasing overall market share ·        Guerrilla Strategy can be adopted by constantly engaging the leader in price war or surprising the firm with very unique features of the product to compete. Introduction to Marketing Strategies Examples of Market leaders and challengers. Marketing leaders are the one who have highest relative market share and work on defending its share and expanding it. Challengers are usually second or third in terms of relative market share, but constantly attack the leader for increasing their share or occupying markets where leaders have weaker presence 3. Market Follower Strategies: These firms do not challenge or compete with the leaders. They, in turn, follow the success strategies of leaders and learn from them. The time tested marketing mix strategies are adopted leading to reduced risks. Example of Market Follower. Dell has been following the marketing strategies of Sony Vaio 4. Niche Market Strategies: It is adopted by small firms which would like to have full control on small segment. This strategy is more cost efficient as product differentiation will be created specially to cater to a small market with predictable demand.   

Advanced cost accounting question with answers pdf m.com part 2 sem 3

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M.COM. SEMESTER – III (CBCS) ADVANCED COST ACCOUNTING Most Important Question Bank for Current Exam  Q.2. The product of a company passes through 3 distinct process. The following information is obtained from the accounts forthe month ending January 31, 2008. ANS: If you want exam most important question bank pdf then you have to pay per subject 100/- rupees only .  Contact 8652719712 / 8779537141  Telegram Group Mumbai Univeersity :- https://t.me/mumbaiuniversityidol Suraj Patel Education :- https://t.me/surajpateleducation F.Y.J.C EXAM :- https://t.me/FYJCexam S.Y.J.C EXAM :- https://t.me/SYJCexam F.Y EXAM :- https://t.me/fyexam S.Y EXAM :- https://t.me/syexam T.Y EXAM :- https://t.me/tyexam M.Com Part 1 EXAM :- https://t.me/McomPart1Exam M.Com Part 2 EXAM :- https://t.me/McomPart2Exam M.A EXAM :- https://t.me/mastudentsexam  YouTube Channel  https://www.youtube.com/channel/UCv8JIY58xfWHUIXVu9wxNHw

Rural marketing M.com semester – iii (cbcs) most important questions

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  M.COM SEMESTER – III (CBCS) RURAL MARKETING  Most Important Question Bank for Current Exam Module – I Q.2. Explain the evolution of Rural Marketing. ANS: Part I (Before 1960): Rural marketing referred to selling of rural products in rural and urban areas and agricultural inputs in rural markets. It was treated as synonymous to „agricultural marketing’. 4 Agricultural produces like food grains and industrial inputs like cotton, oil seeds, sugarcane etc. occupied the central place of discussion during this period. The supply-chain activities of firms supplying agricultural inputs and of artisans in rural Rural Marketing areas received secondary attention. The local marketing of products like bamboo baskets, ropes, window and door frames, small agricultural tools like ploughs by sellers like black smiths, carpenters, cobblers, and pot makers were emphasised in general. This was totally an unorganized market where all banias and mahajans (local business people) dominated this market. Part II (1960 to 1990): In this era, green revolution resulted from scientific farming and transferred many of the poor villages into prosperous business centers. As a result, the demand for agricultural inputs went up especially in terms of wheats and paddies. Better irrigation facilities, soil testing, use of high yield variety seeds, fertilizers, pesticides and deployment of machinery like powder tillers, harvesters, threshers etc. changed the rural scenario. In this context, marketing of agricultural inputs took the importance. Two separate areas of activities had emerged- during this period „marketing of agricultural inputs’ and the conventional “Agricultural Marketing”. During this period, the marketing of rural products received considerable attention in the general marketing frame work. The formation of agencies like Khadi and Village Industries Commission, Girijan Cooperative Societies APCO Fabrics, IFFCO, KRIBHCO, etc., and also the special attention government had paid to promote these products were responsible for this upsurge. Village industries flourished and products like handicrafts, handloom textiles, soaps, safety matches, crackers etc. hit the urban market on a large scale from rural areas. Part III (After Mid 1990s): The products which were not given attention so far during the two earlier phases were that of marketing of household consumables and durables to the rural markets due to obvious reasons. The economic conditions of the country were as such that the rural people were not in a position to buy these kinds of products. Secondly, our market was in a close shape and we never allowed companies (foreign) to operate in Indian market. But we lifted the … and opened up economy, consequently companies started flourishing in India. The small villages/hamlets were widely scattered making reach difficult and expensive consequently. Rural markets were seen an adjunct to urban market and conveniently ignored. However, since 1990s, India’s industrial sector had gained in strength and maturity. Its contribution to GNP increased substantially. A new service sector had emerged signifying the metamorphosis of agricultural society into industrial society. Meanwhile, due to the development programmes of the central and state governments, service organizations and socially responsible business groups like Mafatlal, Tatas, Birlas, Goenkas and others, the rural area witnessed an all round socio-economic progress. The economic reforms further accelerated the process by introducing competition in the markets. Steadily, the rural market has grown for household consumables and durables. Rural marketing represented the emergent distinct activity of attracting and serving rural markets to fulfil Rural Marketing the needs and wants of persons, households and occupations of rural people. As a result of the above analysis, we are in a position to define rural marketing “Rural marketing can be seen as a function which manages all those activities involved in assessing, stimulating and converting the purchasing power 6 into an effective demand for specific products and services, and moving them to the people in rural area to create satisfaction and a standard of living for them and thereby achieves the goals of the organization”. If you want exam most important question bank pdf then you have to pay per subject 100/- rupees only .  Contact 8652719712 / 8779537141  Telegram Group Mumbai Univeersity :- https://t.me/mumbaiuniversityidol Suraj Patel Education :- https://t.me/surajpateleducation F.Y.J.C EXAM :- https://t.me/FYJCexam S.Y.J.C EXAM :- https://t.me/SYJCexam F.Y EXAM :- https://t.me/fyexam S.Y EXAM :- https://t.me/syexam T.Y EXAM :- https://t.me/tyexam M.Com Part 1 EXAM :- https://t.me/McomPart1Exam M.Com Part 2 EXAM :- https://t.me/McomPart2Exam M.A EXAM :- https://t.me/mastudentsexam  YouTube Channel  https://www.youtube.com/channel/UCv8JIY58xfWHUIXVu9wxNHw  

M.com 2nd sem Economics importance question papers with answers mumbai university

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  M.Com SEMESTER – II MACROECONOMIC   1.   Q.3. Explain the concept of National Income Deflator. ANS: When we divide nominal national income by real national income, we obtain the national income deflator. The real national income can be calculated by dividing nominal national income by the national income deflator. The national income deflator for various years given is given in Table 1.5. You may notice from Table 1.5 that when we divide the nominal national income by the real income, we can obtain national income deflator. However, to find out the real national income one needs the price index of the relevant years. Once, we have the current year price index number, we can find out the national income of the current year by dividing the nominal national income of the current year by the current year price index and multiply the quotient by hundred. Alternatively, the national income deflator can be found by dividing the current year price index by the base year price index. Since the base year price index is always hundred, the national income deflator can be simply found by moving the decimal points by two digits to the left. For instance, the wholesale price index in the year 2015-16 divided by 100 would give the national income deflator as 1.2206. You may notice that we have simply shifted the decimal point by two digits to the left. Now when we divide the nominal national income or the national income at current prices by the national income deflator, we can obtain the real national income. For example, Rs.121.62 Trillion divided by 1.2206 will give us Rs.99.63 Trillion which is the real national income for the year 2015-16.     If you want exam most important question bank pdf then you have to pay per subject 100/- rupees only .  Contact 8652719712 / 8779537141  Telegram Group Mumbai Univeersity :- https://t.me/mumbaiuniversityidol Suraj Patel Education :- https://t.me/surajpateleducation F.Y.J.C EXAM :- https://t.me/FYJCexam S.Y.J.C EXAM :- https://t.me/SYJCexam F.Y EXAM :- https://t.me/fyexam S.Y EXAM :- https://t.me/syexam T.Y EXAM :- https://t.me/tyexam M.Com Part 1 EXAM :- https://t.me/McomPart1Exam M.Com Part 2 EXAM :- https://t.me/McomPart2Exam M.A EXAM :- https://t.me/mastudentsexam  YouTube Channel  https://www.youtube.com/channel/UCv8JIY58xfWHUIXVu9wxNHw Best Other MCQ   Webside www.mumbaiuniversityidol.com  All Subject MCQ Link   

Examination Time Table 2023 ( M.com , M.A , M.Sc )

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  University of Mumbai  Institute of Distance & Open Learning (IDOL) Examination Time Table 2023 Yearly Exam M.Com.(Part-I) Yearly https://mum.digitaluniversity.ac/WebFiles/2C00511_SH22.pdf M.Com.(Part-II) Yearly https://mum.digitaluniversity.ac/WebFiles/2C00512_SH22.pdf M.A. Part I Yearly https://mum.digitaluniversity.ac/WebFiles/3A00511%20Winter2022.pdf M.A. Part II Yearly https://mum.digitaluniversity.ac/WebFiles/3A00512%20Winter%202022.pdf M.Sc. Part I https://mum.digitaluniversity.ac/WebFiles/1S01211%20Winter%202022.pdf M.Sc. Part II https://mum.digitaluniversity.ac/WebFiles/1S01212%20Winter%202022.pdf Best Other MCQ Webside  www.mumbaiuniversityidol.com  www.surajpateleducation.com All Subject MCQ Link  Telegram Group  Mumbai Univeersity :-   https://t.me/mumbaiuniversityidol Suraj Patel Education :-   https://t.me/surajpateleducation F.Y.J.C EXAM :-   https://t.me/FYJCexam S.Y.J.C EXAM :- https://t.me/SYJCexam F.Y EXAM :-   https://t.me/fyexam S.Y EXAM :-   https://t.me/syexam T.Y EXAM :-   https://t.me/tyexam M.Com Part 1 EXAM :-   https://t.me/McomPart1Exam M.Com Part 2 EXAM :-  https://t.me/McomPart2Exam M.A EXAM :-   https://t.me/mastudentsexam  YouTube Channel  https://www.youtube.com/channel/UCv8JIY58xfWHUIXVu9wxNHw

Mumbai University Notice of Offline examination for (CBCS) Semester pattern students

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University of Mumbai Institute of Distance & Open Learning Date: -1st December,2022 Notice of Offline examination for (CBCS) Semester pattern students. IDOL, welcomes all the Students in the new academic year 2022-23. The Students who had taken admission in the academic year 2022-23 and the repeater students of semester pattern who had filled the examination forms are hereby informed that the examination will be conducted in CBCS semester pattern. As per the instructions from the examination section of University of Mumbai the examinations for all the programs of IDOL, are going to be conducted through offline Mode. The examinations will be conducted tentatively in the month of February2023, The dates of commencement of the said examinations will be made available online in the month of December -2022. If you want more articles related this article so please click this link  1) https://www.surajpateleducation.com/#google_vignette 2) https://www.surajpateleducation.com/2021/03/mcom-part-1-result-2020-mcom-part-2.html 3) https://www.surajpateleducation.com/2021/04/mumbai-university-mock-test.html 4) https://www.surajpateleducation.com/2021/04/mumbai-university-exam-date-out-fyba.html Credit by : Mumbai University  Best Other MCQ Webside  www.mumbaiuniversityidol.com  www.surajpateleducation.com All Subject MCQ Link  Telegram Group  Mumbai Univeersity :-   https://t.me/mumbaiuniversityidol Suraj Patel Education :-   https://t.me/surajpateleducation F.Y.J.C EXAM :-   https://t.me/FYJCexam S.Y.J.C EXAM :- https://t.me/SYJCexam F.Y EXAM :-   https://t.me/fyexam S.Y EXAM :-   https://t.me/syexam T.Y EXAM :-   https://t.me/tyexam M.Com Part 1 EXAM :-   https://t.me/McomPart1Exam M.Com Part 2 EXAM :-  https://t.me/McomPart2Exam M.A EXAM :-   https://t.me/mastudentsexam  YouTube Channel  https://www.youtube.com/channel/UCv8JIY58xfWHUIXVu9wxNHw

IDOL Admission Notification 2022-23 (July Session)

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 University of Mumbai  Institute of Distance & Open Learning IDOL Admission Notification 2022-23 (July Session) Admission in IDOL for the programs given below will tentatively starts in Fourth week of June-2022  Under Graduate Programs  FY. /SY. & TY. BA, B.Com., B.Sc. (IT) [CBCS Semester Pattern]  FY. & SY.B. Com (Accounts & Finance) & FY. & SY B.Sc. Comp.Sci [CBCS Semester Pattern]  Post Graduate Programs  MA, (History, Sociology, Economics, Political Science, Marathi, Hindi, English), M. A. Education, M. A Geography, M. Com, M.Sc. (Maths, IT& Comp.Sci), *MCA (Master of Computer Application) & *MMS (Master of Management Studies) [CBCS Semester Pattern]  Post Graduate Diploma Programs.  PGDFM (Post Graduate Diploma in Financial Management) [Semester Pattern] •  *Admission to First Year MCA & MMS are on the basis of entrance examination conducted by IDOL, and the dates to fill the entrance examination will declare soon on the website. https://old.mu.ac.in/distance-open-learning/  Date:16th June,2022  If you want more articles related this article so please click this link  1) https://www.surajpateleducation.com/#google_vignette 2) https://www.surajpateleducation.com/2021/03/mcom-part-1-result-2020-mcom-part-2.html 3) https://www.surajpateleducation.com/2021/04/mumbai-university-mock-test.html 4) https://www.surajpateleducation.com/2021/04/mumbai-university-exam-date-out-fyba.html Credit by : Mumbai University  Best Other MCQ Webside  www.mumbaiuniversityidol.com  www.surajpateleducation.com All Subject MCQ Link  Telegram Group  Mumbai Univeersity :-   https://t.me/mumbaiuniversityidol Suraj Patel Education :-   https://t.me/surajpateleducation F.Y.J.C EXAM :-   https://t.me/FYJCexam S.Y.J.C EXAM :- https://t.me/SYJCexam F.Y EXAM :-   https://t.me/fyexam S.Y EXAM :-   https://t.me/syexam T.Y EXAM :-   https://t.me/tyexam M.Com Part 1 EXAM :-   https://t.me/McomPart1Exam M.Com Part 2 EXAM :-  https://t.me/McomPart2Exam M.A EXAM :-   https://t.me/mastudentsexam  YouTube Channel  https://www.youtube.com/channel/UCv8JIY58xfWHUIXVu9wxNHw

Explain in detail the social objectives of the business fybcom sem 1

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 F.Y.B.COM ( SEMESTER – I ) Commerce Paper I (Introduction to Business) Q3. Explain in detail the Social objectives of the Business. Social Objectives Business : Business is a part of a social System. A social system involves people and their Organisations in mutual relationship to each other. Business is an integral part of society.   Following are the social objectives of business 1) Social Objectives towards Customers : The Survival and success of any business organisation depends on its cusumers. One universally accepted social objective of business is to satisfy consumers by providing goods and services as per their needs and expectations. Business activities are essential for meeting the needs of consumers. Business have to supplied quality good at reasonable price to the customer. 2) Social Objectives towards Employees : The Social Objective of a business firm towards its employees is to treat them with respect and provide them with the right compensation and facilities. Business should provide better wages, working conditions, good treatment to the employees. It also provide monetary and non-monetary benefits for satisfaction of the employees. This also ensures industrial peace and harmony. 3) Social Objectives towards shareholders : Shareholders invest their money in the business in the form of shares, debentures bonds etc. The basic objective is that the shareholder should receive a fair, return on their investment. The Objective of thebusiness is to utilise efficiently the money of the shareholder and give them fair return on their investment in the form of dividend a interest. 4) Social Objectives towards Government : A business organisation can’t function smoothly without the support and co-operation of the Government. Hence, it becomes necessary on the part of the organisation to fulfill its social duties towards the government. These include payment of taxes and duties, following the rules and regulations framed by the government from time to time, contributing towards the welfare activities of the government and so on. 5) Social Objectives towards Suppliers : The suppliers can play an important role in the success of an organisation by Supplying the right quality and quantity of material at the right time. Therefore, a business firm needs to have social objectives towards supplier in respect of timely payment of dues. Helping the suppliers in their financial requirements by making advance payments. 6) Social objectives towards Dealers : Dealers assist business firm by promoting and pushing goods and services in the market at the right time at the right place. It is one of the basic social objectives that be produced and supplied. If this basic demand of the society is met, the business may survive in the long run. 7) Social Objectives towards Society : Business organisation gain profit because of the support of the society. Naturally, they are expected to provide financial support for various social, educational and cultural activities. This is also necessary for maintaining cordial relations with the society. Business organizations must also support social welfare programmes.  

Explain the Meaning and scope of Business F.Y.B.COM SEM I Commerce Paper I

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  F.Y.B.COM ( SEMESTER – I ) Commerce Paper I (Introduction to Business)   Q1. Explain the Meaning and scope of Business. Meaning :- According to L.H. Haney, “Business is a human activity directed towards producing or acquiring wealth through buying and selling activities.” SCOPE OF BUSINESS Business has a very wide scope. It includes large number of activities. These activities may be grouped under Two broad categories i.e. Industry and commerce.   I. Industry : The term industry refers to that part of business activity which directly concerns itself with production, processing or fabrication of goods and services. It creates form utility. In industry, raw materials are converted in to finished products, which can be used for consumption. Some industries manufacture consumer goods while others manufacture capital goods. Following are the various types of industriesa) Primary IndustriesThese industries are engaged in the production of primary goods, such as rice, cotton, fish etc. The best examples of this type of industries are Agriculture, fishing etc. b) Genetic Industries : `Genetic industry involves breeding and reproduction of plants and animals for the purpose of sale. Poultry, Plant nurseries, sericulture etc. are examples of genetic industry. The price of products available from such activities is generally less. c) Extractive Industries : Extractive industries extract valuable minerals, ores etc. from the natural elements like soil, water and air. These industries are concerned with the discovery and utilisation of natural resources such as minerals and forests. d) Manufacturing Industries : Manufacturing industries are concerned with the conversion of raw material into finished goods. They create form utility. The products of primary and extractive industries such as cotton, ironore, crude oil, etc. are used as a raw material in these industries. e) Construction Industries : Construction industries are concerned with the construction work like construction of bridges, dams, canals, roads, harbours, building etc. These industries do not operate in factory buildings but at the site allotted.. f) Service Industries : Service industries produce intangible goods i.e. goods which can’t be seen or touches for example transport, insurance, banking etc. These services are essential and useful for the expansion of business. II. Commerce : Commerce involves all those activities which facilitate transfer of ownership and movement of goods from the centers of production to the centers of consumption. In other word it involves all forms of trade and the services that assist trading. Commerce include trade and aids to trade. A) Trade : Trade means buying and selling of goods and services. It involves transfer of ownership of goods from the seller to buyer against money. In other words, trade is an exchange of goods and services for a price which the consumers are ready to pay. Consumers may be an individuals, government and industries who need raw materials. 1. Internal Trade : Internal trade is also known as home trade. It is conducted within the country. It can be at local level, regional level or national level. a) Wholesale trade : It involves buying in large quantities from producers and selling in smaller lots to retailers. The wholesaler is a link between manufacturers and retailers. b) Retail Trade : Retail trade involves buying in smaller lots from the wholesaler’s and Selling in very small quantities to the consumers for personal consumption. The retailer is the last link in the chain of distribution. He established a link between wholesaler and Consumers. 2. External Trade : The trade carried on between the traders of two different countries is called external trade. It is also called as International trade or foreign trade. It includes following trade. a) Export Trade : Export trade involves selling of goods from one country to another. For example, when goods are sold from India to America. b) Import trade : Import trade involves buying of goods from a Seller of another country. For example, a buyer from India purchases goods from a seller of china. c) Entrepot trade : When goods are imported from one country and then reexported to some other country, it is called entrepot. For example an Indian trader may buy goods from Bangladesh and then sell it to Pakistan. B) Aids-To-Trade Aids to trade constitute another component of commerce. Aids to trade include various agencies which are useful for the conduct of trading activities. There are as follows. a) Warehousing : There is a time gap between production and consumption. However, goods which are produced at one time are not consumed at the same time. Hence, it becomes necessary to make arrangement for storage or warehousing. Agricultural commodity like wheat and rice are seasonal in nature but are consumed throughout the year. On the other hand goods such as Umbrellas and woolen cloths are produced throughout the year but are demanded only during particular seasons. Therefore goods need to be stored in warehouses till they are demanded. b) Transport : There is a place gap from the place of production to the place of consumption. Goods are produced in one part of the country and Consumption in other parts of the nation. Transport fills the place gap. It meets out the gap between producer and consumer. It helps the manufacturer to expand their markets from local to regional, regional to national and national to global. c) Communication : Communications facilitates transfer of information. It involves transfer of messages from one person to another and from one place to another. It can be in oral or writing form of information. Oral communication can take place through telephone or personally. Written communication is possible through letter, fax, e-mail etc. It facilitates quick transfer of messages to take important decisions quickly. d) Insurance : Insurance reduces the problem of risks. Business is subject to risks and uncertainties. These are inevitable in the field of business. Risks may be due to fire, theft, accident or any other natural calamity. Insurance companies who act as risk bearer cover risks. Insurance tries to reduce risks by spreading them out over a greater number of … Read more