Importance of Marketing

To the Marketers:

1. Financial Success:

Nothing succeeds like success and financial success often depends on marketing ability. Finance, operations, accounting, and other business functions will not really matter if there is not sufficient demand for products and services. There must be a top line for there to be a bottom line. Marketing is a profit centre, other functions are cost centres.

2. Marketing is often the Route to the Top:

Most companies have now created a position of Chief Marketing Officer, similar to Chief Finance Officer or Chief Strategy Officer. Most of the top positions in the company are being fulfilled by people from marketing. There is no management discussion in the annual reports without describing their latest marketing achievements, and the strategies and tactics adopted.

3. Helps Boost Product Sales:

Marketing is a core business discipline. Apart from spreading awareness about the products, marketing actually helps boost sales and the revenue growth. Marketing creates desire among the general public to buy the product through effective strategic marketing plans including integrated marketing communication. The more people hear and see the products, more they would be interested to buy.

4. Builds Company Reputation:

Marketers aim at creating brand equity through brand 'name, images, logo, or caption ('Iodex maliye kam par chaliye') that the customers listen and watch in the advertisements. McDonalds is immediately recognized by its arch design. With an established name it is easier for marketers to expand and to grow. Companies also create reputation through innovation of products, which is possible because of financial resources generated from sales.

5. Marketing is the biggest component of a product offering:

Normally 40-60% of the price charged from a customer comprises of marketing-related costs, like advertising, market research, development, etc. The greatest challenge before the marketer is how to bring it down without sacrificing marketing objectives.

6. To Cope up with the Changing Marketing Environment:

Globalization, the internet, and information transparency have led to an increasingly mobile workforce, ever more fussy customers, and rapidly changing technologies and business models.

Thus, companies are less able to predict - let alone control - the short-term shape of their own markets. Consequently, more and more organizations are choosing to adopt a marketing-led philosophy to enable them to win market share and capture and retain the hearts and minds of current and prospective customers.

Marketing is becoming more important as organizations around the world strive to develop products and services that appeal to their customers and aim to differentiate their offering in the increasingly-crowded global marketplace. Marketing is no longer the sole prerogative of a single 'function'.

To the Consumers:

1. They can buy goods globally:

Marketers through computer and information technology are able to satisfy more customers across the globe than ever before. Marketers do recognize the role of websites and the blogs, online communities, SMS, e-mail etc which facilitate marketing exchanges. Today if someone has to buy a fridge, he can visit the sites for new and old fridges, compare them and can find the best value.

2. Promotes Product Awareness:

Getting the product recognized by the market is the primary objective of marketing, by which customers take advantage of them. Customers never thought of mobile phones, personal computers or laptops. Awareness of them was spread by marketers only. Thus, marketing helps to improve the quality of life.

3. Creating Utilities:

Marketing creates form utility (from timber into desired furniture), place utility (moving product closure to customer), time utility (product being made available when it is needed), information utility (informing of availability of a particular product at a particular place and at a particular price), and possession utility (through transfer of ownership).

To the Society:

1. Protection against Evil Effects of Depression:

It is through marketing that the spending is continued and the depression is kept at bay.

2. Employment:

Marketing offers many exciting, interesting, and challenging careers, like personal selling, advertising, transportation, packaging, marketing research, product development and design, cash and carry stores, retailing, lobbying, event management, etc. Apart from such commercial activities, many non-governmental organizations engaged in cause marketing, advocacy marketing, social marketing etc. also provide great opportunities.

3. Availability of Various Products:

Society would have no choice in the absence of marketing. Today, there are hundreds of new products and tens of variants of every product are available only because of marketing.

Functions of Entrepreneur

According some economists, the functions of an entrepreneur is classified into five broad categories:

1. Risk-bearing function,
2. Organisational function,
3. Innovative function,
4. Managerial function, and
5. Decision making function.

1. Risk-bearing function:

The functions of an entrepreneur as risk bearer is specific in nature. The entrepreneur assumes all possible risks of business which emerges due to the possibility of changes in the tastes of consumers, modern techniques of production and new inventions. Such risks are not insurable and incalculable. In simple terms such risks are known as uncertainty concerning a loss.

The entrepreneur, according to Kinght, "is the economic functionary who undertakes such responsibility of uncertainty which by its very nature cannot be insured nor capitalised nor salaried too."

Richard Cantillon conceived of an entrepreneur as a bearer of non-insurable risk because he described an entrepreneur as a person who buys things at a certain price and sells them at an uncertain price.

Thus, risk bearing or uncertainty bearing still remains the most important function of an entrepreneur which he tries to minimise by his initiative, skill and good judgement. J.B. Say and other have stressed risk taking as the specific function of the entrepreneur.

2. Organisational Function:

Entrepreneur as an organiser and his organising function is described by J.B. Say as a function whereby the entrepreneur brings together various factors of production, ensures continuing management and renders risk-bearing functions as well. His definition associates entrepreneur with the functions of coordination, organisation and supervision. According to him, an entrepreneur is one who combines the land of one, the labour of another and the capital of yet another and thus produces a product. By selling the product in the market, he pays interest on capital, rent on land and wages to labourers and what remains is his/her profit. In this way, he describes an entrepreneur as an organiser who alone determines the lines of business to expand and capital to employ more judiciously. He is the ultimate judge in the conduct of the business.

Marshall also advocated the significance of organisation among the services of special class of business undertakers.

3. Innovative Function:

The basic function an entrepreneur performs is to innovate new products, services, ideas and informations for the enterprise. As an innovator, the entrepreneur foresees the potentially profitable opportunity and tries to exploit it. He is always involved in the process of doing new things. According to Peter Drucker, "Innovation is the means by which the entrepreneur either creates new wealth producing resources or endows existing resources with enhanced potential for creating wealth". Whenever a new idea occurs entrepreneurial efforts are essential to convert the idea into practical application.

J.A. Schumpeter considered economic development as a descrete dynamic change brought by entrepreneurs by instituting new combinations of production, i.e. innovation. According to him innovation may occur in any one of the following five forms.

The introduction of a new product in the market with which the customers are not get familiar with.

Introduction of a new method of production technology which is not yet tested by experience in the branch of manufacture concerned.

The opening of a new market into which the specific product has not previously entered.

The discovery of a new source of supply of raw material, irrespective of whether this source already exists or has first to be created.

The carrying out of the new form of oranisation of any industry by creating of a monopoly position or the breaking up of it.

4. Managerial Function:

Entrepreneur also performs a variety of managerial function like determination of business objectives, formulation of production plans, product analysis and market research, organisation of sales procurring machine and material, recruitment of men and undertaking, of business operations. He also undertakes the basic managerial functions of planning, organising, co-ordinating, staffing, directing, motivating and controlling in the enterprise. He provides a logical and scientific basis to the above functions for the smooth operation of the enterprise thereby avoids chaos in the field of production, marketing, purchasing, recruiting and selection, etc. In large establishments, these managerial functions of the entrepreneur are delegated to the paid managers for more effective and efficient execution.

5. Decision Making Function:

The most vital function an entrepreneur discharges refers to decision making in various fields of the business enterprise. He is the decision maker of all activities of the enterprise. A. H. Cole described an entrepreneur as a decision maker and attributed the following functions to him.

He determines the business objectives suitable for the enterprise.

He develops an organization and creates an atmosphere for maintaining a cordial relationship with subordinates and all employees of the organization.

He decides in securing adequate financial resources for the organisation and maintains good relations with the existing and potential investors and financiers.

He decides in introducing advanced modern technology in the enterprise to cope up with changing scenario of manufacturing process.

He decides the development of a market for his product, develops new product or modify the existing product in accordance with the changing consumer's fashion, taste and preference.

He also decides to maintain good relations with the public authorities as well as with the society at large for improving the firms image before others.

Characteristics of Marketing

Some of the most important characteristics of marketing are as follows:

1. Organization-wide Function:

Marketing is not a function of marketing department alone. Every department and individual contributes sufficiently towards marketing. The production department has to see that products do not falter after sale. The receptionist, the first point of contact, is the image bearer.

The account department must see that the invoice is customer-friendly. Management guru Peter F. Drucker very rightly claimed that marketing "is so basic, it cannot be considered a separate function.... It is the whole business seen from the point of view of its final result, that is, from the customer's point of view."

2. Marketing is a socially pervasive process:

Marketing is a process as it begins with the consumers and ends with the consumers. As a process, first marketing has to scan the business environment of which customers are part and parcel, including SWOT analysis; then it has to formulate marketing strategy and prepare tactical plans; then to implement them; and finally controlling, i.e. monitoring actual performance and to see how effective the market planning was.

It is social, because exchange is possible only between two social units. And it is pervasive because it goes much beyond selling soaps, toothpaste or shampoos.

Whether the organisation is commercial or non-commercial, government or non-government, everyone has to market. A nation has to go in for international marketing to get across the points to citizens of that country.

Today it is not only goods or services that are marketed, but people (during elections by Political Parties), places (like city of Jaipur by Rajasthan Tourism), events (like IPL by BCCI), experiences (Walt Disney World's Magic Kingdom), organisations (Helpage India), properties (Ajmera Greens at Bangalore), information (like vaccination for polio by Delhi Government), ideas (preventing corruption by Anna Hazare, and "Lane Driving is Sane Driving' by Delhi Police), and hopes (like Revlon saying '"In the factory we make cosmetics; in the store we sell hope").

3. Marketing is both a Science and Art:

Marketing is a science as it provides some general principles to guide the managers in their working. Marketing is an art as every situation requires to be tackled differently and in an effective manner.

Neither the science should be over-emphasized nor should art be discounted. The reality is that both of them go together and are both mutually interdependent and complementary.

4. Voluntary Exchange of Values:

Marketing is always about exchange of value to each other without any coercion or force, i.e., voluntary exchange. Selling is only a tip of marketing iceberg. Value assessment is a subjective assessment of benefits.

A customer benefits include what a buyer receives in exchange. Buyer's cost includes price, time, effort, and risk (s)/he undertakes. The marketer must provide equal value through marketing mix.

5. Achievement of Organisational Objectives and Customer Needs:

Marketing is a purposeful activity. It is always to achieve the organisational objectives as well as satisfying customers. Organisational objective for a .commercial organisation may be profit and for a non-commercial organisation it may be different (police wants to bring down crimes, and anti-tobacco campaign wants to eliminate tobacco consumption).

6. Selection of Target Markets:

No marketer can satisfy everyone in the market. A marketer has to select target markets rather than a quixotic attempt to win every market and be all things to all men. Not everyone likes the same diaper, shampoo or car.

Therefore, marketers start with market segmentation, choosing a target groups (s), identifying target group needs and requirements and meeting these needs in a better way than the competitors through suitable marketing mix.

7. Beneficial to all the Stakeholders:

Favouring one of the stakeholders at the cost of others cannot be marketing. Profit maximisation, by hook or crook, may be beneficial to the firm, but customer will lose. Making use of polythene bags may make convenience for the customers, but environment will suffer.

Brief Essay on Marketing

No organization will be able to survive, if it fails to market what it wants to. In India a saying goes like this -' Bolne wale ki basi bhi bik jati hai, na bolne wale ki taja bhi nahi bikati' (those who make marketing efforts are able to find customers even for rotten ones and those who remain silent in their marketing effort are not able to find customers for the fresh ones).

This shows how important marketing is. Gone are the days of sellers market. In these days of buyers market only those marketers will survive who take care of their customers in every possible way.

Marketing has been continuously shifting its focus and goals keeping in view the changing marketing environment. First, marketing appeared as a branch of applied economics and was concerned with the study of channels of distribution. Then, it became a managerial discipline and was concerned with the increase in sales.

Then, it shifted to an applied behavioral science and is concerned with the understanding of buyers and sellers. Thus, it has travelled from commodity approach (me-too products) to institutional approach (manufacturers, wholesalers, retailers, agents) to functional approach (exchanging, promoting, logistics, and pricing) to managerial approach (analysis, planning, organizing and controlling) to social focus.

Different people have given different concepts of marketing. American Marketing Association's definition in 1935 carried the traditional view emphasizing only one-way traffic, i.e., transfer of goods and services from producer to consumer, i.e., 'pushing products and services'. Profit maximisation is the sole objective and consumers are taken for granted.

The managerial perspective is concerned with the 'art of selling', but selling is only the tip of marketing in its totality. The current perspective as given in their 2004 version is concerned with 'knowing and understanding the customer so well that the product or service fits him and sells itself, i.e., engaging in customer service engineering.

It is against profit maximization at the cost of stakeholders consumers, uses marketing as a means for social welfare. In fact consumer is the purpose of marketing. In the new concept of marketing, the orientation has changed from production to marketing, product to customer, and supply to demand, sales to satisfaction and internal to external.

The new concept given by AMA is: "Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders."

Marketing concept and philosophy state that the organization should strive to satisfy its customers' wants and needs while meeting the organization's goals. The best way to meet the organization's goals is also by meeting customer needs and wants.

The marketing concept's emphasis is to understand the customers before designing and producing a product for them. With the customer's wants and needs incorporated into the design and manufacture of the product, sales and profit goals are far more likely to be met.

Interpreted literally, the marketing concept only advocates discovering consumers' wants and needs and satisfying them. Critics assert that consumers may not be aware of all of their wants and needs.

In the 1950s, how many consumers were of need for microwaves to cook food? In the 1960s, how many consumers were aware of having personal computers? The new definition of AMA does not talk of hidden needs.

Supporters of the marketing concept have contended that it does not stifle innovation and that it does recognize that consumers cannot conceive of every product that they may want or need, because need is defined in a very broad sense.

Difference Between Book-keeping and Accounting

Difference between bookkeeping and Accounting

The terms "bookkeeping" and "accounting" do not have the same meaning. Accounting is much wider than bookkeeping. The difference between bookkeeping and accounting arises due to the following reasons:

Bookkeeping

1.    Bookkeeping involves the recording of business transactions in a prescribed manner

2.    No professional knowledge and skill is required for a bookkeeper.

3.    Bookkeeping is an initial stage of accounting therefore, the scope of bookkeeping is limited. It provides the primary information about the business.

4.    Much of the work of a bookkeeper is clerical in nature and the job is mainly preliminary.

5.    It provides the primary information to the business.

6.    Financial statements are not prepared from bookkeeping records.

7.    It does not give the complete picture of the financial condition of the business unit.

8.    It does not provide any information for taking managerial decisions

9.    It has no branches

Accounting

1.    Accounting in addition to recording of business transactions, also includes other matter such as making adjustments, preparation of income statement, balance sheet and interpreting results thereof.

2.    Professional knowledge and skill is prerequisite for an accountant.

3.    The scope of accounting is wider.

4.    The work of accountant is technical in nature. Modern accounting serves as eyes and ears to the management. It has become the foundation on which the whole structure of commerce rests and without which no business can be run at all.

5.    It provides information about the final results of the business

6.    Financial statements are prepared from accounting records.

7.    It gives the complete picture of financial condition of the business unit.

8.    It provides information for taking managerial decisions.

9.    It has several branches, e.g., financial accounting, managerial accounting, cost accounting etc.

All About Pakistan

All About Pakistan

Official Name

Islamic Republic of Pakistan

· Father of the Nation      Quaid-i-Azam Muhammad Ali Jinnah (1876-1948)
· National Poet                  Allama Muhammad Iqbal (1877-1938)
· Head of the State           Asif Ali Zardari, President
· Head of Government     Yousaf Raza gillani, Prime Minister
· Capital                            Islamabad
· Area Total                                          796,095 Sq. km.
Punjab                                                  205,344 Sq. km.
Sindh                                                    140,914 Sq. km.
North West Frontier Province           74,521 Sq. km.
Balochistan                                         347,190 Sq. km.
Federally Administered Tribal Areas 27,220 Sq. km.
Islamabad (Capital)                            906 Sq. km.
· Population                                       149.03 million

· Administrative Setup

Pakistan is divided into four provinces viz., North West Frontier Province (NWFP), Punjab, Sindh and Balochistan. The tribal belt adjoining NWFP is managed by the Federal Government and is named FATA i.e., Federally Administered Tribal Areas. Azad Kashmir and Northern Areas have their own respective political and administrative machinery, yet certain of their subjects are taken care of by the Federal Government through the Ministry of Kashmir Affairs and Northern Areas. Provinces of Pakistan are further divided into Divisions and Districts

Divisions
Districts 

NWFP       7 ,   24
Punjab     8  ,   34
Sindh       5   ,21
Balochistan    6      ,22

While FATA consist of 13 Areas/Agencies and Azad Kashmir and Northern Areas have 7 and 5 Districts respectively.
· Religion                 95% Muslims, 5% others.
· Annual Per capita income      Rs. 28,933 (US $ 492 approximately)
· GDP          5.1%
· Currency        Pak. Rupee.

· Imports
Industrial equipment, chemicals, vehicles, steel, iron ore, petroleum, edible oil, pulses, tea.

· Exports
Cotton, textile goods, rice, leather items carpets, sports goods, handi-crafts, fish and fish prep. and fruit
· Languages
Urdu (National) and English (Official)
· Literacy rate
51.6%
· Government 
Parliamentary form
· Parliament
Parliament consists of two Houses i.e., the Senate (Upper House) and the National Assembly (Lower House).
The Senate is a permanent legislative body and symbolises a process of continuity in the national affairs. It consists of 100 members. The four Provincial Assemblies, Federally Administered Tribal Areas and Federal Capital form its electoral college.
The National Assembly has a total membership of 342 elected through adult suffrage (272 general seats, 60 women seats and 10 non-Muslim seats).

· Pakistan National Flag.
Dark green with a white vertical bar, a white crescent and a five-pointed star in the middle. The Flag symbolises Pakistan's profound commitment to Islam, the Islamic world and the rights of religious miniorities.

· National Anthem
Approved in June, 1954
Verses Composed by: Abdul Asar Hafeez Jullundhri
Tune Composed by: Ahmed G. Chagla
Duration: 80 seconds
· State Emblem
The State Emblem consists of:
1. The crescent and star which are symbols of Islam
2. The shield in the centre shows four major crops
3. Wreath surrounding the shield represents cultural heritage and
4. Scroll contains Quaid's motto: Unity Faith, Discipline

· Pakistan's Official Map
Drawn by Mian Mahmood Alam Suhrawardy (1920-1999)

· National Flower
Jasmine.
· National Tree
Deodar (Cedrus Deodara).
· National Animal
Markhor.
· National Bird
Chakor (Red-legged partridge)
· Flora
Pine, Oak, Poplar, Deodar, Maple, Mulberry
· Fauna
The Pheasant, Leopard, Deer, Ibex, Chinkara, Black buck, Neelgai, Markhor, Marco-Polo sheep, Green turtles, River & Sea fish, Crocodile, Waterfowls
· Popular games
Cricket, Hockey, Football, Squash.
· Tourist's resorts
Murree, Quetta, Hunza, Ziarat, Swat, Kaghan, Chitral and Gilgit
· Archaeological sites
Moenjo Daro, Harappa, Taxila, Kot Diji, Mehr Garh, Takht Bhai.
· Major Cities
Islamabad, Karachi, Lahore, Peshawar, Quetta, Rawalpindi, Hyderabad, Faisalabad, Multan and Sialkot
· Major Crops
Cotton, Wheat, Rice and Sugarcane
· Agricultural Growth Rate
4.15% in 2002-03
· Total cropped area
22.0 million hectares
· Industry
Textiles, Cement, Fertilizer, Steel, Sugar, Electric Goods, Shipbuilding
· Energy
Major sources
Electricity (Hydel, Thermal, Nuclear) Oil, Coal, and Liquid Petroleum Gas
Power Generating Capacity
18,062 MW

· Health
Hospitals
947
Dispensaries
4,800
Basic Health Units (BHUs)
4,820
Maternity & Child Health Centres
1,084
Rural Health Centres (RHCs)
581
Tuberculosis (TB) Centres
357
Hospital Beds
82,844
Doctors (registered)
101,635
Dentists (registered)
5,068
Nurses (registered
44,520
Paramedics
22,714
Lady Health Workers
6,397

· Education
Primary Schools
164,200
Middle Schools
19,100
High Schools
12,900
Arts & Science Colleges
925
Professional Colleges
374
Universities
Public Sector (including one WomenUniversity)
29
Private Sector
10

· Transport & Communication
Total length of roads
251,845 km
Pakistan Railway network
7,791 km
Railway stations
781
Pakistan International Airlines
Covers 33 international and 21 domestic stations with a fleet of 44 planes.
Major Airports
8 (Islamabad, Karachi, Lahore, Quetta, Peshawar, Multan, Faisalabad and Gwadar)

· Seaports
International
2 (Karachi and Bin Qasim.)
Fish Harbours-Cum-Mini Ports
3 (Minora, Gawadar, and Keti Bandar)

· Communications
Post Offices
12,267
Telephone connections
4,589,000
Public Call Offices
1,14,527
Telegraph offices
328
Internet Connections
1.9 million


· Employment
Total Labour force
42.38 million
Employed Labour Force
39.41 million
Agriculture Sector
18.91 million
Manufacturing & Mining sector
4.51 million
Construction
2.25 million
Trade
5.27 million
Transport
1.97 million
Finance, Community & Social Services
5.90 million
Others
5.87 million

· Media
Print Media (In accordance with Central Media List)


Dailies
414
Weeklies
392
Fortnightlies
50
Monthlies
259
Annually
01
Quarterly
03

News Agencies

Official
APP

Private 
PPI, NNI, On Line and Sana.

Electronic Media 

TV Centres
Five TV centres at Islamabad, Lahore, Peshawar, Quetta and Karachi covering 88.58% population and 29 re-broadcasting stations.

Pakistan Television
4 channels (PTV-I, PTV-II (PTV World), PTV-III & PTV-IV)

Registered TV sets
3,604,000

Radio Stations
Public:
Total 25, Home services in 19 languages. External Services cover 81 countries in 15 languages
Private:
Radio stations 3, TV transmitter channels 3

Cable Operators
900

· Banks
Central Bank
State Bank of Pakistan
Other Banks
National Bank of Pakistan
Habib Bank Ltd.
United Bankn Ltd.
Muslim Commercial Bank Ltd.
Allied Bank of Pakistan Ltd.
First Woman Bank
Mehran Bank
The Bank of Punjab
Bank of Khyber
Specialized Banks
Agricultural Development Bank of Pakistan
Federal Bank for Co-operatives
Industrial Development Bank of Pakistan
The Punjab Provincial Co-operative Bank

· Famous MountainPeaks
K-2 (Mt. Godwin Austin)
28,250 ft./8611 m (2nd in World)
Nanga Parbat
26,660 ft./8126 m (8th in World)
Gasherbrum-I
26,470 ft./8068 m (11th in World)

· Famous Mountain Passes
The Khyber Pass
NWFP
The KurramPass
FATA
The TochiPass
FATA
The GomalPass
NWFP
The Bolan Pass
Balochistan
The LowariPass
Chitral (NWFP)
The KhunjrabPass
Northern Areas

· Rivers
The Indus

2,896 km
Jhelum

825 km
Chenab

1,242 km
Ravi

901 km
Sutlej

1,551 km
Beas (tributary of Sutlej)

398 km

· Famous Glaciers
Siachin
75 km
Batura
55 km
Baltoro
65 km

· Deserts
Thar
Sindh
Cholistan
Punjab
Thal
Punjab

· Lakes
Manchar
Sindh
Keenjar
Sindh
Hanna
Balochistan
Saif-ul-Maluk
NWFP
Satpara
Northern Areas
Kachura
Northern Areas

· Major Dams
Mangla Dam
Punjab
Tarbela Dam
NWFP
Warsak Dam
NWFP

Economics System In Pakistan

Economic System of Pakistan

In Pakistan, we have neither of the two extreme systems but oureconomic system is a via media compromise of both the systems of capitalistic and socialistic patterns. It can safely be said that it is amixed economy.

Concept of Mixed Economy

Mixed Economy is an economic system, which combines in itself the elements of socialism as well as of capitalism. It is an economicsystem, which is planned and directed partly by the state and by private enterprise. Under the “Mixed Capitalist System” or “Mixed Enterprise System”, both State and private institutions exerciseeconomic control.

Panacea of the Defects of Capitalism and Socialism

A privately owned capitalist system cannot guarantee full employment and elimination of poverty. It may lead to unequaldistribution of wealth and air and water pollution. It produces trade cycles. i.e. sometimes depression and at other times an inflationary situation. On the other hand, a government owned business system might stifle innovation and invention. It may not be quickly responsive to public desired for products and services and may even limit the freedom of the people. It is so realized that economicdevelopment cannot be achieved at the desired rate of growth without any active government help and guidance. That is why most of the capitalistic and socialistic economics of world have become mixed economics in order to minimize the evils of unadulteratedcapitalism and socialism to accelerate economic growth.

Salient Features of Economic System of Pakistan

1. Co-Existence of the Public and Private Sectors
In the economy both public sector and the private sector function together. In one part are those industries, the responsibility for the development of which is entrusted to the state and they are owned and managed by the state. Other industries are left under the authority and control of the private entrepreneurs. The private sector is free to develop them and start new enterprises in this sector.

2. Role of Price System And Government Directives
So far as the public sector is concerned, economic decisions relating to production, prices and investment are made by the government or authorities appointed by the government. In industries in the private sector, the decisions regarding investment, production, prices, etc, are made by private entrepreneurs with the object of making maximum profit on the basis of the price system.

3. Government Regulation and Control of Private Sector
In a mixed economy, the government adopts necessary measures to regulate and influence the private sector, so that it may function in the interests of the nation rather than exclusively in the interests of the private entrepreneurs.

4. Consumer’s Sovereignty Protected
The consumers are free to buy commodities of their choice and the private entrepreneurs produce commodities according to consumer’s demand or preferences, although the government can control their prices in public interest so that they can be prevented from rising unduly high. Besides, the government can also ration the commodities in short supply so that the limited available quantities can be fairly distributed.

5. Government Protection of Labour
In a mixed economy, Government saves labour from exploitation by the exploitation by the capitalists. Several factory acts have been passed to regulate the working conditions of labour. The government also takes necessary steps to prevent industrial disputes.

6. Reduction of Economic Inequalities
The governments in mixed economics take necessary steps for the reduction of inequalities of income and wealth for promoting social justice and social stability and social welfare, increasing production and for providing equal opportunities for all.

7. Control of Monopoly
A charge against monopolies is that they reduce output and raise prices in order to get maximum profit leading to miss-allocation of productive resources of the community, economic inequalities, and unemployment and hampering of industrial development.

The government tries to control and regulate monopolies in order to remove the above evils and make them function in public interest. Also, when the government considers it necessary in public interest, it takes over monopolies and operates them in public interest.

8. Government Provision of Public Services
The government provides certain indispensable public services without which community life would be unthinkable and which by their nature cannot appropriately be left to private enterprises. Examples are the maintenance of national defence, of internal law and order and the administration of justice etc.