Standardisation, grading, ISI, AGMARK, Types of standards, Advantages of standardisation, disadvantages of standardisation

1. Standardisation and
grading
Presented by
Dr.M.Muthulakshmi
Assistant Professor of Commerce
A.P.C Mahalaxmi College for women
Thoothukudi

2. Standardisation
Standardisation involves the determination of basic
measure or limits known as standards.
This includes the process of conforming to standard
through controls during the creation of form utility
Standardisation refers to establishing of standards for
different classes of products
It involves setting up of standards or specifications of a
product and maintaining those standards during the
period for which they are effective.
Meaning

3. Standardisation
In the words of duddy and Revzan,
“standardization is the process of
determining of classes or grades of a product
or services that have fixed limits”
Definition

4. Quantity
standard
Standards of
size and
measurement
Quality
standard
Types of standards
Standardisation

5. Elements of standardisation
Standardisation
Grading
Inspection
Labelling
Standardisation

6. Advantages of standardisation
Facilitating marketing
Reducing marketing cost
Helps in future trading
Simplifies financing
Widening of the marketing
Low transport cost
Elimination of risk
Consumer’s satisfaction
Higher prices
Helps consumers
Helps manufacturers
Long period of contact
Standardisation

7. Demerits of standardization and grading
It destroys manufacturing secrets
It prevents progress and adoption of new ideas
It destroys personal skill and ability
It cannot be adopted for all products
It makes a machine out of the workman
Standardisation

8. IndianStandards Institution - ISI
The ISI was set in 1947 by the central
government in New Delhi
Standardisation

9. ISI –Aim and objects
Preparation of standards for the products, commodities,
materials and processes
Promotion of general standard at national and
international level
Certificate of industrial goods
Circulation of information relating to standards and
standardisation
Standardisation

10. Functions of ISI
Formulation of
standards
Issuing certificates
under ISI
Certification
marks act 1952
Standardisation

11. Benefits of ISI

12. AGMARK
AG – stands for
Agriculture
MARK stands
for Grading
In order to
improve the
quality of
Indian
agricultural
produce, the
Agricultural
Produce
(Grading and
Marketing ) Act
was passed in
1937. 15
The act has
authorized the
central
government to
frame rules
relating to
grade and
standards for
agricultural
commodities.
Standardisation

13. Pricing
Pricing means the exchange value of a
product or service in terms of money

14. Marketing variables influence pricing decision
Sales volume
Profit Margins
Rate of
returns on
investment
Trade
margins
Advertising
and sales
promotion
Product image
New product
development

15. Objectives of pricing decisions
Ensuring
Target
return
Market
share
Preventing
Competition
Maximising
the profit
Stabilising
the Price

16. Kinds of Pricing
Odd Pricing
Psychological Pricing
Customary Pricing
Prestige Pricing
Pricing at the prevailing prices
Penetration Pricing
Price lining
Geographical pricing
Monopoly Pricing
Administered Pricing
Expected Pricing
Negotiated pricing
Cost plus pricing
Skimming Pricing
Dual Pricing

17. Thank you