Principles of Management and Marketing
Management functions
Management is commonly described as planning, organising, leading and controlling. Planning sets objectives; organising allocates resources and authority; leading motivates and directs; controlling monitors and corrects. Span of control, centralisation and chain of command describe structure. A matrix structure gives dual reporting and improves coordination but risks conflicting priorities.
Motivation and leadership
Maslow's hierarchy, Herzberg's two-factor theory (hygiene factors prevent dissatisfaction; motivators drive satisfaction) and expectancy theory (effort leads to performance leads to valued reward) are frequently tested. Leadership styles range from autocratic through democratic to laissez-faire; contingency views say the best style depends on the situation.
Marketing fundamentals
The marketing mix is product, price, promotion and place. Segmentation divides a market; targeting selects segments; positioning creates a distinct image. The product life cycle runs introduction, growth, maturity, decline, with different pricing and promotion needs at each stage. Pricing approaches include cost-plus, penetration (low entry price), skimming (high launch price) and value-based.
Traps to watch
- Confusing hygiene factors with motivators.
- Assuming one leadership style is universally best.
- Mixing segmentation (dividing) with positioning (image in the customer's mind).
- Treating marketing as selling only - marketing begins before production.
Worked example
A firm launches a novel gadget with few competitors and price-insensitive early adopters. Skimming fits: a high initial price recovers development cost, then lowers over time. In maturity, competition rises and promotion shifts to differentiation and loyalty.