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THE Importance of communication are as

follows:-
I. Interaction with others.
II. Vital for Marketing.
III. Vital for Success in Carrier.
IV. Building Goodwill.
V. Building Good Relation.
VI. Mutual Understanding.
VII. Continues Process.
VIII.Social need.
IX. Communication is Unavoidable.
INTRACTION WITH OTHERS
Communication enables us to interact with others in
matters of day today life. We convey our feelings ,
emotions, ideas, opinions, proposal, demand, etc to
others through communication.
Vital for Marketing:-

Communication enables us to know wants and needs of


others. Through it business organization, sellers,
producers, manufacturer know the wants and needs of
their customers that is vital foe marketing.
Vital for Success in Carrier:-

Effective communication plays a vital role in our


success in career , job and profession.
Building Goodwill:-

Good-will of a firm depends upon its effective


communication. Effective communication builds its
good-will.
Building Good Relation:-

Effective communication builds good relation both in


personal and professional fields of life.
Mutual Understanding:-

Communication facilities mutual understanding


among the human beings. Through the process of
communication, they are able to understand eacg
other’s feelings, ideas, etc
Continues Process:_
Communication is not an event or activity that takes
place at instance of time. It is a continues process that
involves various activities and actions that are inter-
related.
Communication is Unavoidable:-
There is no way other than communication to
understand and contact each other. Not to speak of
spoken and written words, we communicate even
through facial expression, and even silence.
Social need:-
Communication is a social need as it enables us to
satisfy our desires and needs through spoken or
written message. It is through communication that
two or more persons interact and affect each other
and develop understanding.
THE Purpose of communication are as follows:-

I. Information.
II. Advice.
III. Order.
IV. Warning.
V. Education.
Information:-

One of the objectives of communication in enquiring,


supplying or receiving information. Without
information, you remain ignorant to what happens
around you.
Advice:-
Advice is personal opinion about what to do? How to
do? And where to do? It points out a particular cause
of action in a particular situation with a view to
changing the behaviour and opinion of the receiver.
As it involves the personal opinion of the adviser, it is
usually subjective.
Order:-

An order is the directive


issued by the higher
authorities to subordinates
specifying to do or to restrain
from doing some action.
Order is always an internal
and downward
communication as it flows
from higher management to
the subordinate.
Warning:-
Warning is information about the unpleasant
consequences if certain course of action is not given up
or changed. The purpose of warring is to ask the
worker to mend his way and abide by the rules and
regulation. Warring also aims at betterment of the
individual as well as the organization.
Education:-

Education is one of the most important objectives of


communication. Education is not merely for students,
rather the executives and employees of the companies
need education and training.
Principle #6: Markets Are Usually a Good Way to
Organize Economic Activity.
 A market economy is an economy that allocates
resources through the decentralized decisions of many
firms and households as they interact in marketplace
for goods and services where prices and self interest
guide their decisions.
 Households decide which firm to work for and what to
buy with their incomes.
 Firms decide who to hire and what to produce.
 Invisible hand works in the market economy.
Adam Smith

Market economy of invisible hand


Principle #6: Markets Are Usually a Good Way to
Organize Economic Activity.
 Adam Smith made the observation that households
and firms interacting in markets act as if they are
guided by an “invisible hand.”
 Because buyers look at the price, when deciding how
much to buy, and sellers look at the price, when
deciding how much to produce.
 As a result, prices guide buyers and sellers to reach
outcomes that tend to maximize the welfare of
society as a whole.
Principle #6: Markets Are Usually a Good Way to
Organize Economic Activity.
 The collapse of communism in 1980s results in the
market economy.
 In communism, prices are determined by the
bureaucrats or central planning authority.
 How are the bureaucrats come to know how much to
be produced if they haven’t price signals, if they don’t
know about supply and demand.
Principle #7: Governments Can Sometimes
improve market structures.
Improve Market Outcomes.
 Two essential reasons for which we need govt.
intervention.

 Market may fails to allocate resources Efficiently.

 Market may fails to allocate resources in Equitable way.


Principle #7: Governments Can Sometimes
improve market structures.
 First consider the Goal of efficiency:
 Market failure occurs when the market fails to allocate
resources efficiently.
 Market failure in efficiency may be caused by
 an externality, which is the impact of one person or
firm’s actions on the well-being of a bystander
 market power, which is the ability of a single person or
firm to unduly influence market prices.
Principle #7: Governments Can Sometimes
improves market structures. Improve Market
Outcomes.
 Second consider the Goal of Equality:
 Market economy rewards people according to their
ability to produce things that other people are willing
to pay for.

Basketball player v. chess player.

Market system of invisible hand doesn't ensure that


everyone get equitable distribution of wealth.