Tag: Customer Relationship Management

1. Competitors:

The intensity of competition from existing competitors will depend on several factors including:

1. The number of competitors
2. Their relative size
3. Whether their product offering and strategies are similar
4. The existence of high fixed costs
5. The commitment of competitors and
6. The size and nature of exist barriers

2. Potential competitors:

Potential competitors who might have an interest in entering an industry. Whether potential competitors, identified or not, actually do enter, however, depends in large part upon the size and nature of barriers to entry. Thus, an analysis of barriers to entry is important in projecting the likely competitive intensity and profitability levels in the future.

Entry barriers include:

1. Capital investment required.
2. Industries like mining, refinery or automobiles require huge investments and larger gestation periods that increase the risk.

3. Economies of scale:

If scale economies exist in production, advertising, distribution, or other areas, it becomes necessary to obtain a large volume quickly. Such an effort not only increases the investment but it also increase the risk of retaliation from existing competitors. Reliance Fresh opted this strategy for reducing the price of fruits and vegetables in its retail outlets.

4. Distribution channels:

Gaining distribution in some industries can be extremely difficult and costly. Even large established firms that sell products with substantial marketing budgets have trouble obtaining space on the supermarket shelf Competition between Pepsi and Coke limit the customers’ choice on cola as most of the retail outlets have a policy of eliminating one cola product (either Coke or Pepsi brands) from their shelves.

5. Product differentiation:

Established firms may have high levels of customer loyalty caused and maintained by protected product features, a brand name and image, advertising, and customer service. Industries in which product differentiation barriers are particularly high include soft drinks, beer, cosmetics, over-the-counter drugs, and banking.

Unfortunately Transport Department of Govt. of India banned this advertisement by citing the reason such as youth tend to follow the ad, violate traffic rules and risk their life.

6. Substitute products:

Substitute products are represented by those sets of competitors that are identified as competing with less intensity than the primary competitors.

7. Customer power:

When customers have relatively more power than sellers do, they can force prices down or demand more services, thereby affecting profitability. A customer’s power will be greater when its purchase size is a large proportion of the seller’s business, when alternative suppliers are available, and when the customer can integrate backward and make all or part of the product.

8. Supplier power:

When the supplier industry is concentrated and sells to a variety of customers in diverse industries, it will have relative power that can be used to influence prices. Power will also tend to be enhanced when the costs of customers to switch suppliers is high.

Trend analysis is a technique used in technical analysis that attempts to predict future stock price movements based on recently observed trend data. Trend analysis uses historical data, such as price movements and trade volume, to forecast the long-term direction of market sentiment.

Trend analysis tries to predict a trend, such as a bull market run, and ride that trend until data suggests a trend reversal, such as a bull-to-bear market. Trend analysis is helpful because moving with trends, and not against them, will lead to profit for an investor. It is based on the idea that what has happened in the past gives traders an idea of what will happen in the future. There are three main types of trends: short-, intermediate- and long-term.

A trend is a general direction the market is taking during a specified period of time. Trends can be both upward and downward, relating to bullish and bearish markets, respectively. While there is no specified minimum amount of time required for a direction to be considered a trend, the longer the direction is maintained, the more notable the trend.

Trend analysis is the process of looking at current trends in order to predict future ones and is considered a form of comparative analysis. This can include attempting to determine whether a current market trend, such as gains in a particular market sector, is likely to continue, as well as whether a trend in one market area could result in a trend in another. Though a trend analysis may involve a large amount of data, there is no guarantee that the results will be correct.

In order to begin analyzing applicable data, it is necessary to first determine which market segment will be analyzed. For instance, you could focus on a particular industry, such as the automotive or pharmaceuticals sector, as well as a particular type of investment, such as the bond market.

Once the sector has been selected, it is possible to examine its general performance. This can include how the sector was affected by internal and external forces. For example, changes in a similar industry or the creation of a new governmental regulation would qualify as forces impacting the market. Analysts then take this data and attempt to predict the direction the market will take moving forward.

Critics of trend analysis, and technical trading in general, argue that markets are efficient, and already price in all available information. That means that history does not necessarily need to repeat itself and that the past does not predict the future. Adherents of fundamental analysis, for example, analyze the financial condition of companies using financial statements and economic models to predict future prices. For these types of investors, day-to-day stock movements follow a random walk that cannot be interpreted as patterns or trends.

Types of Trend

Uptrend

An uptrend or bull market is when financial markets and assets as with the broader economy-level move upward and keep increasing prices of the stock or the assets or even the size of the economy over the period. It is a booming time where jobs get created, the economy moves into a positive market, sentiments in the markets are favorable, and the investment cycle has started.

Downtrend

Companies shut down their operation or shrank the production due to a slump in sales. A downtrend or bear market is when financial markets and asset prices as with the broader economy-level move downward, and prices of the stock or the assets or even the size of the economy keep decreasing over time. Jobs are lost, asset prices start declining, sentiment in the market is not favorable for further investment, and investors run for the haven of the investment.

Sideways / horizontal Trend

A sideways/horizontal trend means asset prices or share prices as with the broader economy level are not moving in any direction; they are moving sideways, up for some time, then down for some time. The direction of the trend cannot be decided. It is the trend where investors are worried about their investment, and the government is trying to push the economy in an uptrend. Generally, the sideways or horizontal trend is considered risky because when sentiments will be turned against cannot be predicted; hence investors try to keep away in such a situation.

Uses:

Use in Technical Analysis

An investor can create his trend line from the historical stock prices, and he can use this information to predict the future movement of the stock price. The trend can be associated with the given information. Cause and effect relationships must be studied before concluding the trend analysis.

Use in Accounting

Sales and cost information of the organization’s profit and loss statement can be arranged on a horizontal line for multiple periods and examine trends and data inconsistencies. For instance, take the example of a sudden spike in the expenses in a particular quarter followed by a sharp decline in the next period, which is an indicator of expenses booked twice in the first quarter. Thus, the trend analysis in accounting is essential for examining the financial statements for inaccuracies to see whether certain heads should be adjusted before the conclusion is drawn from the financial statements.

Importance of Trend Analysis

• The trend is the best friend of the traders is a well-known quote in the market. Trend analysis tries to find a trend like a bull market run and profit from that trend unless and until data shows a trend reversal can happen, such as a bull to bear market. It is most helpful for the traders because moving with trends and not going against them will make a profit for an investor.
• Trends can be both growing and decreasing, relating to bearish and bullish market
• A trend is nothing but the general direction the market is heading during a specific period. There are no criteria to decide how much time is required to determine the trend; generally, the longer the direction, the more is reliably considered. Based on the experience and some empirical analysis, some indicators are designed, and standard time is kept for such indicators like 14 days moving average, 50 days moving average, and 200 days moving average.
• While no specified minimum amount of time is required for a direction to be considered a trend, the longer the direction is maintained, the more notable the trend.

ROI

Return on investment (ROI) is a financial ratio used to calculate the benefit an investor will receive in relation to their investment cost. It is most commonly measured as net income divided by the original capital cost of the investment. The higher the ratio, the greater the benefit earned.

ROI Formula

There are several versions of the ROI formula. The two most commonly used are shown below:

ROI = Net Income / Cost of Investment

or

ROI = Investment Gain / Investment Base

Benefits of the ROI Formula

There are many benefits to using the return on investment ratio that every analyst should be aware of.

Simple and Easy to Calculate

The return on investment metric is frequently used because it’s so easy to calculate. Only two figures are required the benefit and the cost. Because a “return” can mean different things to different people, the ROI formula is easy to use, as there is not a strict definition of “return”.

Universally Understood

Return on investment is a universally understood concept so it’s almost guaranteed that if you use the metric in conversation, then people will know what you’re talking about.

Limitations of the ROI Formula

While the ratio is often very useful, there are also some limitations to the ROI formula that are important to know.  Below are two key points that are worthy of note.

The ROI Formula Disregards the Factor of Time

A higher ROI number does not always mean a better investment option. For example, two investments have the same ROI of 50%. However, the first investment is completed in three years, while the second investment needs five years to produce the same yield. The same ROI for both investments blurred the bigger picture, but when the factor of time was added, the investor easily sees the better option.

The investor needs to compare two instruments under the same time period and same circumstances.

The ROI Formula is Susceptible to Manipulation

An ROI calculation will differ between two people depending on what ROI formula is used in the calculation. A marketing manager can use the property calculation explained in the example section without accounting for additional costs such as maintenance costs, property taxes, sales fees, stamp duties, and legal costs.

Absolute returns

The absolute return or simply return is a measure of the gain or loss on an investment portfolio expressed as a percentage of invested capital. The adjective “absolute” is used to stress the distinction with the relative return measures often used by long-only stock funds that are not allowed to take part in short selling.

The hedge fund business is defined by absolute returns. Unlike traditional asset managers, who try to track and outperform a benchmark (a reference index such as the Dow Jones and S&P 500), hedge fund managers employ different strategies in order to produce a positive return regardless of the direction and the fluctuations of capital markets. This is one reason why hedge funds are referred to as alternative investment vehicles.

Absolute return managers tend to be characterised by their use of short selling, leverage and high turnover in their portfolios.

The formula for absolute return is:

Absolute returns = 100* (Selling Price – Cost Price)/ (Cost Price)

Advantages

It offers multiple advantages. A few of the noteworthy are enumerated below:

• First, it is straightforward to calculate and understand for all users.
• Second, it is unaffected by period and benchmark comparison and provides returns generated in actual terms.
• Third, it helps in reducing overall volatility as it doesn’t consider intermittent changes.

Disadvantages

• It isn’t easy to compare across other asset classes.
• It is a fault measure when comparing different time frames.
• It doesn’t compare against any benchmark, which results in determining the relative performance. Also, absolute return lacks adjusting returns for inflation, leading to negative returns despite absolute returns showing a positive value.
• These measures don’t allow investors to assess the efficacy of the Fund manager and whether they can generate positive alpha. Also, this measure completely avoids assessing risk-adjusted returns.
• It is not comparable, which makes it an adequate measure of performance.
• It can lead to the selection of those investments where risk is higher as it doesn’t consider risk measures such as Standard Deviation and other performance ratios such as Sharpe Ratio, Treynor Ratio, etc.

Annualized return

The annual return is the return on an investment generated over a year and calculated as a percentage of the initial amount of investment. If the return is positive (negative), it is considered a gain (loss) on the initial investment. The rate of return will vary depending on the level of risk involved.

Annual Return Formula

The return earned over any 12-month period for an investment is given by the following formula:

Annual Return = [(Final value of Investment – Initial value of Investment) / Initial value of Investment] * 100

Advantages:

• It is very easy to calculate and simple to understand like payback period. It considers the total profits or savings over the entire period of economic life of the project.
• This method recognizes the concept of net earnings i.e. earnings after tax and depreciation. This is a vital factor in the appraisal of a investment proposal.
• This method facilitates the comparison of new product project with that of cost reducing project or other projects of competitive nature.
• This method gives a clear picture of the profitability of a project.
• This method alone considers the accounting concept of profit for calculating rate of return. Moreover, the accounting profit can be readily calculated from the accounting records.
• This method satisfies the interest of the owners since they are much interested in return on investment.
• This method is useful to measure current performance of the firm.

Disadvantages:

• The results are different if one calculates ROI and others calculate ARR. It creates problem in making decisions.
• This method ignores time factor. The primary weakness of the average return method of selecting alternative uses of funds is that the time value of funds is ignored.
• A fair rate of return cannot be determined on the basis of ARR. It is the discretion of the management.
• This method does not consider the external factors which are also affecting the profitability of the project.
• It does not take into the consideration of cash inflows which are more important than the accounting profits.
• It ignores the period in which the profits are earned as a 20% rate of return in 10 years may be considered to be better than 18% rate of return for 6 years. This is not proper because longer the term of the project, greater is the risk involved.
• This method cannot be applied in a situation when investment in a project to be made in parts.
• This method does not consider the life period of the various investments. But average earnings are calculated by taking life period of the investment. As a result, average investment or initial investment may remain the same whether investment has a life period of 4 years or 6 years.
• It is not useful to evaluate the projects where investment is made in two or more instalments at different times.

Systematic risk

Systematic risk is caused by the changes in government policy, the act of nature such as natural disaster, changes in the nation’s economy, international economic components, etc. The risk may result in the fall of the value of investments over a period. It is divided into three categories that are explained as under:

• Interest risk: Risk caused by the fluctuation in the rate or interest from time to time and affects interest-bearing securities like bonds and debentures.
• Inflation risk: Alternatively known as purchasing power risk as it adversely affects the purchasing power of an individual. Such risk arises due to a rise in the cost of production, the rise in wages, etc.
• Market risk: The risk influences the prices of a share, i.e. the prices will rise or fall consistently over a period along with other shares of the market.

Unsystematic risk

Unsystematic risk is the risk that is unique to a specific company or industry. It’s also known as nonsystematic risk, specific risk, diversifiable risk, or residual risk. In the context of an investment portfolio, unsystematic risk can be reduced through diversification while systematic risk is the risk that’s inherent in the market.

The risk can be avoided by the organization if necessary actions are taken in this regard. It has been divided into two category business risk and financial risk, explained as under:

• Business risk: Risk inherent to the securities, is the company may or may not perform well. The risk when a company performs below average is known as a business risk. There are some factors that cause business risks like changes in government policies, the rise in competition, change in consumer taste and preferences, development of substitute products, technological changes, etc.
• Financial risk: Alternatively known as leveraged risk. When there is a change in the capital structure of the company, it amounts to a financial risk. The debt–equity ratio is the expression of such risk.

The extended internal rate of return or the more commonly used, XIRR, is the rate which calculates the returns on the total investment made with increments, paid throughout the period under consideration.

XIRR is an annualized form of return. Annualized return indicates what investment would return over a time period if the annual return is compounded.

XIRR comes to an investor’s aid when investments are made into mutual funds at randomly spaced intervals. Moreover, redemptions are also processed at irregular time intervals. The time periods will differ for each cash flow. Each particular investment will offer a different rate of return at a given date of measurement.

XIRR= Weighted average CAGR of all instalments

IV= Investment Value (IV)

FV= Final Value (FV)

N= Investment intervals (n)

We understand it can be complicated to manually calculate XIRR for any investment. What’s more important is understanding its significance and need, especially when you are investing in mutual funds via SIP.

Therefore, XIRR can be used to calculate an investor’s mutual fund returns when investments and redemptions are spread over a period of time.

For example, Mr. A decided to invest Rs 50,000 in a thematic fund with the pharma sector as the theme on the news of the coronavirus pandemic. Mr. A redeems the invested amount on the news of economic recovery to look for better returns. Mr. A invests that Rs 50,000 in the consumer durables sector on the news of vaccine efficacy. On the release of auto sales data, Mr. A invested another Rs 50,000 in the auto sector with a short-term view to reap benefits of festive sales rally. Now, the investment and redemption time periods for each investment will be unevenly spaced. XIRR can be used to calculate the overall return on the invested corpus.

An investor may choose different options such as SIP, SWP, and lumpsum for different mutual funds. XIRR can be applied to such investment strategies.

XIRR, IRR, and CAGR can be quite confusing at times. CAGR and XIRR are both used to calculate returns on investment. XIRR can be referred to as an aggregate of multiple CAGRs. When there are multiple investments made in a fund, XIRR can be used to calculate the overall return.

There is a fine line of difference between CAGR and XIRR. CAGR is used to assess the performance of a mutual fund on a standalone basis. XIRR is computed to assess the performance of your investment in the mutual fund.

Let’s assume that one invests Rs 2000 per month for a year in a fund, which increases to Rs 48,000 in 4 years. How to calculate the overall return on this investment made over 12 months? If using CAGR, you will have to measure the CAGR for 48 months on the first installment, for 47 months on the second installment, for 46 months on the third installment, and so on. Instead of doing that, one can use the XIRR function of excel that takes into account all these CAGRs to give the overall CAGR.

XIRR and IRR functions of excel differ on the basis that the IRR function assumes that each period between a series of cash flows is of the same length. Rate of return on monthly, quarterly, or annual cash flows is generally measured using IRR. XIRR on the other hand offers to assign dates to the cash flows and doesn’t require each cash flow to be made after the same interval.

To summarise, if cash flows are made at regular intervals, IRR is preferred and if cash flows are not made at regular intervals then XIRR is preferred to measure the overall return.

Savings

Saving is setting aside some money for future expenses or needs. It is the first and foremost step towards leading a financially disciplined life. The savings fund comes as a boon during rainy days. A savings account or bank fixed deposits are some of the popular savings options in India. It is similar to holding cash. Our parents and grandparents have strongly believed in saving money for their children’s future to give them a comfortable life. That’s what kept them going and never touched their savings until and unless it was extremely necessary. While now most of us love to spend the money we earn and follow the ‘YOLO’ trend. Yes, You Only Live Once (YOLO). However, living without any financial hiccups should be the goal.

Objectives of Saving

• A rainy day fund for emergencies
• A down payment for a car or a home
• Putting money aside for a trip, new appliances, or a car
• Short-term educational expenses
• Utilizing alternatives for Tax-Free Savings Accounts

The pros and cons of saving

There are plenty of reasons you should save your hard-earned money. For one, it’s usually your safest bet, and it’s the best way to avoid losing any cash along the way. It’s also easy to do, and you can access the funds quickly when you need them.

All in all, saving comes with these benefits:

• Savings accounts tell you upfront how much interest you’ll earn on your balance.
• The Federal Deposit Insurance Corporation guarantees bank accounts up to Rs. 5,00,000, so while the returns are lower, you’re not going to lose any money when using a savings account.
• Bank products are generally very liquid, meaning you can get your money as soon as you need it, though you may incur a penalty if you want to access a CD before its maturity date.
• There are minimal fees. Maintenance fees or Regulation D violation fees (when more than six transactions are made out of a savings account in a month) are the only way a savings account at an FDIC-insured bank can lose value.
• Saving is generally straightforward and easy to do. There usually isn’t any upfront cost or learning curve.

Despite its perks, saving does have some drawbacks, including:

• Returns are low, meaning you could earn more by investing (but there’s no guarantee you will.)
• Because returns are low, you may lose purchasing power over time, as inflation eats away at your money.

Investing

Investing money is the process of using your money to buy assets that value over time and provide high returns in exchange for taking on more risk. Investments are typically volatile and illiquid. You earn returns by selling your assets for a profit or realising your capital gains.

Objectives of Investment

• Paying for your children’s higher education
• Building wealth for the future
• Saving for retirement

The pros and cons of investing

Saving is definitely safer than investing, though it will likely not result in the most wealth accumulated over the long run.

Here are just a few of the benefits that investing your cash comes with:

• Investing products such as stocks can have much higher returns than savings accounts and CDs. Over time, the Standard & Poor’s 500 stock index (S&P 500), has returned about 10 percent annually, though the return can fluctuate greatly in any given year.
• Investing products are generally very liquid. Stocks, bonds and ETFs can easily be converted into cash on almost any weekday.
• If you own a broadly diversified collection of stocks, then you’re likely to easily beat inflation over long periods of time and increase your purchasing power. Currently, the target inflation rate that the Federal Reserve uses is 2 percent, but it’s been much higher over the past year. If your return is below the inflation rate, you’re losing purchasing power over time.

While there’s the potential for higher returns, investing has quite a few drawbacks, including:

• Returns are not guaranteed, and there’s a good chance you will lose money at least in the short term as the value of your assets fluctuates.
• Depending on when you sell and the health of the overall economy, you may not get back what you initially invested.
• You’ll want to let your money stay in an investment account for at least five years, so that you can hopefully ride out any short-term downdrafts. In general, you’ll want to hold your investments as long as possible and that means not accessing them.
• Because investing can be complex, you’ll probably need some expert help doing it unless you have the time and skillset to teach yourself how.
• Fees can be higher in brokerage accounts. You may have to pay to trade a stock or fund, though many brokers offer free trades these days. And you may need to pay an expert to manage your money.

Investing your money can be a fantastic way of building a better financial position for yourself and your family. It’s not possible to predict what the markets will do in the future, but these investing tips may help improve your investment success over the long term.

Leverage the power of compound interest

Over time, as your investments earn interest, if you reinvest those earnings, you earn interest on your interest. This is the core idea of compound interest. Without any extra effort on your part, compounding interest and time work together to potentially increase your investment returns.

If you start saving early, you take advantage of the effects of compounding interest on your investments over a long period of time. This has the potential to increase your total returns.

Embrace an Investing Strategy

It’s important to know what kind of investor you are and adhere to the principles of your investing strategies.

Use Rupee-cost averaging

Sticking to the discipline of Rupee-cost averaging can help you avoid making emotional decisions based on market turbulence. With Rupee-cost averaging, you invest a certain amount of money at regular intervals, regardless of what the market is doing. By always investing the same Rupee amount every month or other chosen period, you naturally buy fewer shares when the market is high and more shares when the market is low.

Asset Allocation

Your asset allocation, how you divide your portfolio among different asset categories, will be the biggest determinant of your investment returns. Many investors fail because they put little thought or effort into their asset allocation strategy.

If you place your money into overvalued asset categories you will experience poor long term returns. It’s important to overweight asset categories that are bargain priced and underweight or avoid asset categories that are expensive.

Know the risksInvesting your money can be a rewarding experience because of the risk involved in the process. Generally speaking, the greater the risk, the greater the reward. However, an acceptable risk for one person may not be an acceptable risk for the next. While investing your money may sound daunting, you don’t have to manage your portfolio yourself as long as you understand the risks behind investing your money, you can hire a portfolio manager to do the legwork for you. Are you comfortable losing money if the stock market performs poorly or does any sort of investment loss make you nervous? These are the types of questions to think about and discuss with an advisor to help gauge your tolerance for risk.

Investors with more time to recoup market losses may be more comfortable taking risks. However, as you near retirement or if you’re already retired, you may want to adjust your risk tolerance to make sure your investments are consistent with your goals.

Know your financial limitations: There is a very real risk to investing more than you can afford. If you want to make the most of your investments, your money shouldn’t be keeping you up at night. Instead, it is far better to invest an amount each month which is appropriate to your financial situation.

Keep Expenses Low

Most investors don’t realize how much difference high expenses make to their portfolio. Take a look at the what happens to your returns with a 1% higher expense ratio;

Review and rebalance your portfolio regularly

Over time, investments within your portfolio will grow at different paces. As a result, your diversification and asset allocation can become unbalanced. Add in any changes to your income, risk tolerance or family situation and your investments may no longer reflect your goals. An annual review of your portfolio with your advisor will give you an opportunity to fine-tune and rebalance your portfolio to help you stay on track toward meeting your financial goals.

Capital Markets are one of the most sought-after platforms for stepping into the world of trading and investments. Everyday millions of investors and traders trade in these markets. All the trades in the markets are processed through an entity known as stock exchange.

There are many stock exchanges in India which carry out millions and billions of trades every day. National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) are the two most prominent and largest exchanges in India. BSE is also the oldest stock exchange in India and dates its origin to late 1800s. There are various regional exchanges in India as well.

Stock exchanges play a prominent role in the consolidation of the national economy and also help in the development of industrial sector especially. India is a developing economy, and in such countries, these exchanges play a cardinal role. They help in mobilizing the savings and ensure safety at the same time. These mobilization helps in promoting the level of capital formation.

(i) Ready Market:

Stock exchange is a convenient meeting place for buyers and sellers of second-hand securities. Investors who have a preference for liquidity (i.e. cash) can sell their securities; and those who wish to invest in securities can buy the same. Since stock exchange ensures liquidity of investment; people are induced to buy securities.

(ii) Safe Market:

Stock exchange is, perhaps, the safest market for having transactions in securities. A stock exchange functions according to a recognised code of conduct and is subject to strict statutory regulations. Since the establishment of SEBI (Securities and Exchange Board of India) in the year 1988, dealings in securities at stock exchanges have become further safer.

In the absence of stock exchange, investing public might be deceived or cheated by shrewd unscrupulous brokers.

(iii) Evaluation of Securities:

Stock exchange determines prices of various securities (in terms of their real worth) through the interplay of demand and supply forces. Prices at which transactions in securities take place are recorded and published, in the form of market quotations.

Securities for which published quotations are readily available; become reliable securities for obtaining loans etc. against these.

(iv) Agency of Capital Formation:

Stock exchange is an agency of capital formation. It draws the savings of the man in the street into productive investment channels. Since stock exchange provides a safe and convenient market for liquidity and investment purposes; people are induced to save and invest in securities.

Through stock exchange, savings of people which otherwise would have gone into destructive channels, are routed into productive channels.

(v) Qualitative Industrial and Commercial Development:

Stock exchange aids in the process of ensuring qualitative industrial and commercial development of the economy. This is so, because, through stock exchange people keep shifting their investment from inefficient companies (which do not pay good dividends) to efficient companies (which promise high returns on investment). This shifting process of investment is specially important for a country where savings are scarce.

(vi) Acting as a Barometer of the Company:

(Barometer is something that shows the changes that are happening in an economic, social or political situation). Stock exchange is sensitive to economic, political and social conditions of the economy; as such conditions affect the prices of securities.

In fact, price trends at stock exchange reflect the economic climate of the country. “Stock exchanges are not merely the chief theatres of business transactions; they are also barometers which indicate the general conditions of the atmosphere of business in a country.” Alfred Marshall

(vii) Control Over Company Managements:

Stock exchange very directly exercises control over the managements of companies, whose securities are listed with it. In fact, those companies whose securities are listed with a stock exchange have to abide by the rules and regulations of the stock exchange.

(viii) Storehouse of Business Information:

Companies, whose securities are listed with the stock exchange, are required to furnish financial statements, annual reports and other reports to the stock exchange. Many stock exchanges publish directories which provide data on the corporate sector. Such information is highly helpful to the government in economic planning. It is equally useful to managements of many business enterprises.

Branding skills

Competitive analysis

To do this well, brand managers look at all the messaging and historical data from a company, their main competitors and other companies in their niche.

The idea is to map the landscape around the client, Marom said.

This is a lot less work in an emerging space (like NFT marketplaces) than in a huge, historic space (like department stores). But it still takes more analytical skills than might meet the eye.

The best brand marketers analyze audience data and communications from two main types of competitors:

Direct competitors, whose products are similar to yours. Think Calm vs. Headspace, Rosenberg said.

Indirect competitors, whose (very different) product solves the same problem yours does for your target audience. An example from Rosenberg: Headspace vs. CBD companies.

This is the most analytical part of brand marketing  mapping a market, and spotting holes and it takes a pro to do it well.

What happens if your brand marketer isn’t up to speed on competitive analysis or marketing analytics tools? You could end up looking and sounding like everyone else.

Sometimes, brands do this on purpose “but, in my opinion, [it’s] lazy at best… and usually much worse,” Rosenberg said.

Another downside of shoddy competitive analysis, according to Sullivan: “miscommunications with consumers that make it harder for brands to earn trust and build relationships.”

Imagine highlighting a strength just because it seems people really want it, even though your brand doesn’t have it. That’s a recipe for disappointed customers.

Brand positioning

If competitive analysis is understanding the globe, your brand position is a pinpoint on that globe.

Brand positioning is made up of three key components, Rosenberg said:

• Audience, or who your brand is uniquely speaking to
• Value props, or what you’re uniquely offering to them
• Voice and persona, or how you’re communicating that

Brand strategy

A brand marketer with a strong skillset in brand strategy builds out overarching guidelines that ensure your company’s short, medium and long-term plans support your brand position.

Brand management

Brand strategy takes holistic thinking, but brand marketers are detail-level thinkers, too. They’re skilled at brand management, which involves implementing brand guidelines at a more department-by-department and case-by-case level.

Internal communication

To do their jobs well, brand marketers must be able to sync with key stakeholders and team members across the company on vision, goals, creative hunches, origin stories and individual personalities.

Ideally, when they talk to senior leaders, they “bring them through the brand journey that the customer is going on to help them understand where and why these could be pain points for a customer,” Sullivan said

Marketing skills

Understand their customers

Customers are at the core of marketing. You cannot sell anything to anyone unless they want it. If marketing is about satisfying customer needs, then first you must understand those needs. This means being able to identify customers’ problems, sometimes before they do, and find a way of addressing those needs and problems through the products and services that you provide.

Know their market

Marketers also need to know what is happening in the market. This means knowing what other companies are offering, what suppliers are doing, and what complementary products exist. They must become subject matter experts on their market.

One way to understand the market is to use a strategic analysis technique like Porter’s Five Forces or the 7 Ps of Marketing. This provides a structural way of examining the market, ensuring that you have considered every aspect of the situation.

Think creatively to identify new approaches

Marketing may be increasingly data-driven, but that does not mean that there is no place for creativity. Marketers are good creative thinkers, able to use their skills in generating ideas to find new ways to reach out to customers and create customer experiences that are more memorable (for the right reasons).

Communicate effectively in writing and orally

Good marketers are very effective communicators, in writing, in face-to-face meetings, and in presentations. They are able to get their point across simply and succinctly, often in a new way that will grab their audience’s attention.

Networking skills

Networking skills are competencies that help you in building personal and professional social contacts. It is an essential skill for many industries, including sales, business development, retail, banking and others. Networking allows you to meet new people, exchange ideas and find new job opportunities. You build strong connections with your colleagues, friends, family members, clients, customers, professors or personal acquaintances when your network. Connecting with such people can prove beneficial for your career.

Here are a few reasons why networking is essential:

Opens new job opportunities: Networking is an excellent way to advance your career because you contact a professional who may have information about a job that a recruiter is yet to share on different job boards.

Builds self-confidence: The more you interact with people, the more you can build your self-confidence and social skills.

Enhances communication skills: Networking gives you a chance to communicate your ideas to others and explain your potential to them. This can improve your verbal communication skills.

Helps in finding mentors: Whether you are an entry-level or experienced professional, you may require guidance in your career. Networking facilitates the opportunity to find and connect with people who have vast experience in your field and could become your mentor.

Improves elevator pitch: When you meet new people, you give a brief description of who you are, your strengths and your background. This brief introduction is your elevator’s pitch that can help you form a lasting connection with a professional.

7 Networking Skills

There are different skills required for networking with people. Some of these are:

Communication

Communication is the exchange of ideas from one person to another. It helps you use the right tone so that you receive a response from the other person. When networking with people, this skill helps you effectively communicate and deliver the intended message. You may require written communication skills to build and maintain relationships on social media networks and professional networking websites.

Active listening

Active listening is the ability to focus on what the speaker is saying and responding thoughtfully to their message. It is an important skill to grow your network because you show them respect and understand their message by listening to others. Active listening skills involve smiling, making eye contact and using other non-verbal cues to showcase that you are listening to the speaker.

Public speaking skills

At networking events, you may interact with a large group of people to build connections. This requires excellent public speaking skills. Public speaking skills help improve the way you articulate, helping the other person understand what you are trying to say.

Social skills

Social skills are the skills that require you to interact with others in a personal and professional environment. These include words and gestures, visual cues, body language and appearance. Reaching out to people you are meeting for the first time or meeting with colleagues outside of office hours can help you build and manage long-term relationships.

Empathy

Empathy is the ability to understand another person’s emotions and state of mind. It is an important skill for networking because people prefer sharing their emotions and experience with empathetic people. Asking questions related to the situation and approaching a situation based on the viewpoint of others can help you network better with people.

Positivity

Often, people prefer to interact with individuals who showcase a positive demeanour and are friendly. A positive attitude and perspective toward everything can help you develop a strong rapport and make you likeable and memorable. As people naturally gravitate to positive people, building positive relationships in the workplace and outside becomes easier.

Emailing skills

Even after the advent of social media, email remains a preferred choice for most businesses to exchange professional messages. But certain email rules are essential to ensure recipients read and act upon your email. Keep emails short, precise and succinct to develop a long-lasting business relationship. Also, perform a little research into the recipient and tailor the message based on their interest to make a positive impression.

Organization skills are soft skills that help you manage expectations, stay on top of tasks, and deliver results in a timely fashion.

Communication

Another important organizational skill to consider is communication. Your communication skills are based on how well you share and receive information in the workplace. If you are an organized communicator, you will be able to give other members of your team the information they need in an effective and timely manner. Organized communicators prioritize efficiency in the workplace by responding to requests quickly, giving instructions accurately and relaying information reliably.

Time management

Managing your time well is crucial to being organized. Time management involves allowing yourself enough time to finish tasks, not spending too much time on any one project and balancing the time you spend at home and work. Managing your time is important because it helps you conserve your energy and stay calm in a fast-paced environment. Deciding when and how to use your time is a fundamental element of workplace organization.

Setting goals

Organization in the workplace also involves setting achievable goals. Organized employees can set personal and professional goals that inspire them to work hard and perform well. Being an organized professional should involve setting daily and weekly goals that structure your efforts and keep you focused on your employer’s objectives. Achieving goals regularly is a sign of a well-organized employee who uses their resources well.

Working under pressure

Organization is particularly important in high-pressure situations. In fast-paced environments and workplaces that enforce strict deadlines, being organized is critical to an employee staying calm and focused. If you can effectively schedule your time, manage your energy and use your resources, working well under pressure can make you a valuable asset in your workplace.

Delegation

In many cases, being organized means knowing your limits. If an employee’s responsibilities become more than they can handle, they may need to assign one or more of their tasks to a coworker. An important part of delegation is knowing which team member is the most qualified to finish a particular task or project. If you can list and organize your tasks and decide which to delegate, you may be able to improve the productivity of your entire team.

Self-motivation

An important element of organization is the ability to take initiative. Organized employees are well-aware of the tasks they need to complete and can work on assignments without supervision or assistance. If you can earn a reputation for being organized and self-sufficient in your workplace, you will likely be given even more opportunities to use your skills and develop professionally.

Analytical thinking

Analytical thinking involves the ability to read and interpret information to come to reasonable conclusions. Being organized at work often involves organizing your thought process. Being able to think about a problem logically and determine the source of the issue will help you overcome setbacks quickly and avoid delays.

Decision-making

Organized employees are skilled decision-makers. Making well-thought-out decisions involves collecting all the necessary information, considering the consequences and thinking ahead to predict outcomes. If you are skilled in organization, you will likely have the communication skills, logical mindset and goal-oriented attitude necessary for making effective decisions.

Attention to detail

This organizational skill relates to how mindful and thorough you are in your work. Organized employees recognize that taking the time to do a job well the first time will save them from extra effort later on. Being organized means having the time and energy to make sure every aspect of a task is properly handled and that each step of a project is completed correctly.

Strategic planning

Being organized involves making the most of your time and energy. A crucial part of this is planning out how you plan to use your resources. This often involves keeping a detailed calendar, using a focus timer and scheduling meetings days or weeks in advance. Thinking ahead and planning accordingly can help organized employees to stay on top of their workload and to avoid missing deadlines.