Presentation Transcript Chapter Nine: Apply break-even analysis, distinguishing between accounting break-even, cash break-even and financial break-even.
The promotional campaign Resources invested in variety development and seed production will be wasted if farmers are Budgeting ch09 persuaded to use the improved varieties.
All promotional activities involve sending messages to the distributors and consumers in order to inform them about a company's products and help them to make their decision to buy a particular variety or brand of seed.
It is important to monitor how effective this Budgeting ch09 is by ensuring feedback from both the dealers and the consumers. Such communication can be divided into two distinct types: Non-controllable methods These are personal recommendations that reflect the consumers' overall perception of the product and service.
They are powerful messages and will influence buying decisions. Therefore, it is important to know what farmers think of a product, especially those leading farmers who are targeted in extension work, as their influence may be considerable.
Controllable methods These are the marketing messages which are carefully designed and directed to achieve the objectives of an organization's promotional campaign. Types of marketing messages which can be used are listed at the top of the next page.
It should also be recognized that educational and literacy standards will not always be high in rural communities. The use of visual material will help to overcome some communication problems.
In all forms of communication, companies should always try to make the subject of seeds interesting and relevant to the consumer.
The communication and promotion process must be carefully thought out and the person responsible must be very clear about the aims and objectives and anticipated effect. A master plan should be created with separate plans for each activity and sales region.
These should all be timed for maximum effect and designed to reinforce each other. When introducing a new variety, expenditure will be higher as awareness must be created. As timing is very important a calendar of key events should be drawn up indicating the involvement of all those working on the campaign.
Individual responsibilities must be clearly defined and activities involving other services, such as extension, well coordinated. It is important that the effort is targeted and a good reporting system set up to allow for adjustments to be made during the season and resources redirected if necessary.
There is, for example, no point in continuing to promote a product if no seed is available. Advertising A company may use an advertising agency in order to benefit from its specialist skills.
The assistance provided by an advertising agency may range from the production of a simple poster to a whole series of events and activities linked to a product campaign. There will usually be one person who acts as a focal point with the advertising agency and who would ideally become familiar with the client's business and market.
The process is similar to that described for commissioning market research. Decide what is to be achieved and why, then create a brief which will form the basis of discussion with the agency. The agency can then respond with ideas and costings which will enable a choice to be made.
Printed or broadcast media can be used for advertising. It is important to select the most appropriate. The published print media This includes newspapers, periodicals, magazines, trade and professional journals. There may be both advantages and disadvantages when advertising in this manner.
Some advantages of the printed media are that: Some disadvantages of the printed media are: As well as placing advertisements, press releases can be given to newspapers or features written that carry the name of the company and its products. The broadcast media This includes television, radio and cinema.
Some advantages of television are: Some disadvantages of television are: An interesting example of the use of television is in Zimbabwe where the Seed Co-op positions advertisements prior to the screening of the weather forecasts, which are of obvious interest to farmers. Linked to this is the Co-op's catch phrase "only buy the seed you know" which gives instant recognition when seen and heard in other situations, such as in printed advertising and on packaging.
Some advantages of radio are: Some disadvantages of radio are: Language problems can be overcome through local broadcasting and there is always the possibility of involving local personalities to add interest and relevance to the area.
Radio is useful for making announcements, such as the availability of seed in the area.Capital Budgeting is a process of long range planning involving investment of funds in long term activities whose benefits are expected over series of years. For example, installing.
Learning Objectives State the essentials of effective budgeting and the components of the master budget. 1 Prepare budgets for sales, production, and direct materials.
2 Prepare budgets for direct labor,manufacturing overhead, and selling and administrative expenses, and a budgeted income statement. 3 Prepare a cash budget and a . Chapter Chapter CHAPTER 9 Budgetary Planning Managerial Accounting, Fourth Edition. Chapter Study Objectives 1.
Indicate the benefits of budgeting. 2. State the essentials of effective budgeting. 3. Identify the budgets that comprise the master budget.
O'Reilly Resources. Last update; MS_Project__MM_MissingCD_files: Loading commit data Ch01 Financial ashio-midori.com Organization and Management. Organization. Effective management of the Army’s limited resources of men, money, and materiel remains the primary objective in considering changes in the organization of the Army’s staff and major commands.
The civil works function retains its separate identity for budgeting purposes, and the 33, Capital Budgeting Part Four -- Analysis of Decision - This is a part four of a four-part series on capital budgeting calculations and analysis.
This part discusses the decision process for independent and mutually exclusive projects with data for payback period, internal rate of return, and net present v.