Direct Marketing and it's Advantages

Direct Marketing:

[ If you in Party and you like a beautiful Girl, and u directly go near her and say, "I'M RICH PERSON, WILL U MERRY ME?" <--- this is Direct Marketing]
Direct Marketing is use of direct consumer channel to reach and deliver goods and services to customers without using middle marketing. Direct Marketing channel are: Direct email, catalog, telemarketing, website.
[Ex. one day you open your e-mail id and see the one mail from XYZ Bank and they offer you some discount or some special offer. <-- This is Direct Marketing]
[Ex. most of telephone network company do, send message to you about the scheme which offer by them]
[online shopping website: once a time you shopped a book from ABC online website and you registered on that site, they send e-mail to about book, about new book lunch, about some offer. <--- Direct Marketing]

Now a days, Direct Marketers build very strong relationship with their customer, they give wishing card on B'day, even they call and wish you to B'day and give some premium offer on yr B'day.
[ If you using internet regularly then you know about it, on your B'day, how many wishes message you get with offers, even also on mobile phone. <--- Direct Market ]

Direct Marketing is very fast growing way for serving customers.

Advantages:
company send message to their customer very fast.
website available 24 hour 7 days
some chin is slower moving, but due to DM to promote these items interested buyer instand

Time Value of Money

Many time we heard from our grand parent like, in their time they can purchased more things in 1 $ then today.
Money change with respect to the time. In finance view, how much money i'll get?
Means, If you deposit 100 bucks today at 10% interest rate, how much money will you get after 5 years.
If you want to buy a Mercedes Benz, then how much money you going to save then will you able to purchase a brand new Mercedes Benz.
if you deposit same amount every month/year is call ANNUITY.

Role of Financial Managers

Who is Financial manager?
Financial manager is a person who responsible for all Financial of firm/company/organization.
In old times, finance manager maintaining records, preparing reports and raising funds when needed.
now a days, finance manager also responsible for shaping the fortunes of the enterprise, and is involved in the most financial decision. he/she must be looking out, the funds of the enterprise are utilized in the most efficient manner.
He/She must be looking looking out for wealth maximization rather then only for profit maximization.

Main function of Finance Manager are:
1) Fund Rise: In traditional approach, financial manager has limited role, they simply looking for funds raising.
in her/his, day to day activities, FM's duty is to see that the firm have enough fund to meet it's obligations.
2) Fund allocation: FM is considered a vital and an integral part of overall management. FM must be allocation of efficient funds
3) profit Planning:
4)Understanding Capital Market: capital market tie the investors and firms together, that's why FM deal with capital market, FM measure the market risk.

Goal of FM
-Profit maximization as well as wealth maximization
Profit Maximization: Profit Maximization means, give maximum output at given input or use minimum input for  maximum output
In short, Profit Maximization is efficiency of firms.
-Wealth Maximization, means maximize Net Present Value, it's action to rising stakeholders value.
  

what is Finance Management ??? (in short way)

What is Finance management?
-Every Firm create manufacturing capacities for production of goods, (services)  to customer. After sell goods/service they earn profit. for maintain funds and proper use of finance.

Activity in Finance:
1) Economic: In which, whenever exchange information, get money (Value)
2) Non-Economic: In which, whenever exchange information, not get money (Value)

What are the financial Asset?
- Real Assets
Tangible Assets: Those Assets which can touchable, visible - Physical assets ex. building, machinery, office etc.
Intangible Assets: Those Assets which can't touchable, visible Ex. goodwill,  patents and copyright

-Financial Assets
Primary Market: basically new company enter
equity share
perferance share
bonds
long teams loan    
Secondary Market: basically for those company which already exist in market
obligation and borrowing from bank
financial institutions and other sources

Economic Order Quantity (EOQ)

EOQ is one of the very useful technique to maintain Inventory.
EOQ give the answer of 2 question :
1) what is order size?
2) At which level should be order?

First, understand what kind of cost are under inventory management. There are 3 kind of cost occur during maintain inventory, (1) Ordering cost (2) Carrying cost (3) Holding Cost.

The graphical representation.
 Formula of EOQ :
Annual Oder Cost = C x D/Q
Annual Carrying Cost = C" x Q/2

Total Cost = Annual Oder Cost + Annual Carrying
                     C x D/Q + C" x Q/2
(solve equation as take TC =0)
Q = (2DC/C")^(1/2)

In simple way, in graph we can see, the ordering cost is decreasing while we order large size of good but in other side when we order large size of good then carrying cost will be high. so here, EOQ help to finding out at which point, the lover ordering and carrying cost low.
EOQ also tell abut the Reorder Point:

as show in graph, red line show the order and reorder ling, when yr inventory comes in that like or we can say met the red line it's point call ordering point or reordering point. the time between order and receiving  is call lead time.
Formula :
Reordering Point = Lead time x Average usages