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Class 12 Business Study Chapter 11 Marketing
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Marketing
Chapter: 11
PART – B
VERY SHORT TYPE QUESTIONS ANSWERS (1 MARK EACH)
1. Name the four Ps of marketing mix.
Ans: Product, price, promotion and place or physical distribution.
2. Name the function concerned with informing the customer about the product.
Ans: Promotion function.
3. Give any two examples of Trade mark.
Ans: Limca and Amul.
4. Define the term product.
Ans: According to Philip Kotler, “A product is anything that can be offered to a market for attention, acquisition, or consumption, it includes physical objects, services, personalities, place, organisation’s and ideas.”
5. Give two examples of convenience products.
Ans: Toothpaste and milk.
6. Name the function involved in physical movement of goods from one place to another.
Ans: Choice of channels of distribution.
7. What is the modern concept of marketing ?
Ans: The modern concept recognises that marketing process begins long before the goods go into production and it does not end with sale. The thrust is on consumer needs and finding out ways to satisfy them. Profit earning in this concept is through consumer satisfaction.
8. What is meant by Trade Mark ?
Ans: It refers to a brand name which is registered with the Government under the Trade Marks Act.
9. What are the middle man involved in two level channel ?
Ans: Wholesaler and Retailer.
10. Give two examples of Trade Promoter ?
Ans: Wholesaler and Retailer.
11. Give two examples of shopping products.
Ans: Furniture items and dress materials.
12. Mention one objective of pricing.
Ans: To achieve target rate of return on investment or on net sale.
13. Who gave the four elements of marketing mix ?
Ans: Mc Carthy.
14. What is labelling ?
Ans: Labelling means putting identification marks on the package. T label is an important feature of a product.
15. What is meant by packaging ?
Ans: Packaging is traditionally done to protect the goods from damage transit and to facilitate easy transfer of goods to customers. But now it is also used by the manufacturer to establish his brand image as distinct from those of his rivals.
16. What do you mean by Brand ?
Ans: A brand means a mark made on commodities to indicate its quality and manufacturer. To brand a product means to stamp it with some identifying mark or name.
17. “Goods are not bought but they have to be sold.” Name the marketing philosophy to which this statement is related ?
Ans: Selling Concept.
18. Which concept of marketing suggests that the organisation should earn profit through consumer satisfaction and social Welfare ?
Ans: Societal Marketing Concept.
19. Introducing a scheme of 50% + 40% less by the “KOUTONS” is the example of which sales promotion technique ?
Ans: Rebate or Price off offer.
20. Give two examples of trade mark.
Ans: Titan, Amul.
21. Give two examples of convenience products.
Aas: Toothpaste, milk.
22. Name the products whose utility gets finished in one use.
Ans: Non-durable products or consumable products (eg- newspaper).
B. SHORT TYPE QUESTIONS ANSWERS TYPE-I ( 3 MARKS EACH )
23. Explain any three factors affecting pricing of a product.
Ans: Same as Q.No 28, Page No 385
24. Briefly explain three merits for choosing newspaper as a media of advertising.
Ans: (i) Allows you to reach a huge number of people in a given geographic area.
(ii) You have the flexibility in deciding the ad size and placement within the newspaper.
(iii) Your ad can be as large as necessary communicate as much of a story as you care to tell.
25. Describe briefly any three methods of sales promotion.
Ans: Same as Q.No 29, Page No 190386
26. Explain any three qualities of a good brand name.
Ans: A good brand name should possess the following qualities:
(i) The brand name should be easy to pronounce, spell and remember. It should be short also. For example, Amul, Natraj, HMT etc. are short and simple.
(ii) If possible the brand name should suggest something about the products benefits, uses, purpose, etc. For instance “Ujala suggest brightness.
(iii) The brand name or design should be attractive to the eyes such as Natraj, Dairy Milk.
27. State any three aspects of physical distribution.
Ans: The following are the aspects of physical distribution:
(i) Transportation: Transport provides the physical means which facilities the movement of persons, goods and services from one place to another. It is an important part of commerce as it helps in removing the hindrance of distance. The importance of transport has increased so much that it is difficult to think of any business activity without the help of transport.
(ii) Warehousing: A warehouse may be defined as a place used for the storage of goods for distribution at a later stage. Producers, traders, agents etc. engaged in business have to store their goods in warehouses. Warehouses perform certain marketing services also such as grading, packaging, labelling etc.
(iii) Insurance: A large number of risks are involved in exchange of goods and services. Insurance helps to cover these risks. It facilitates the smooth flow of goods by covering risks in storage and transportation.
28. Explain any three factors affecting pricing of a product.
Ans: Three factors affecting pricing decisions are discussed below:
(i) Demand: The demand for a product or service also influences price. When the demand for a product is more then higher price may be charged. On the other hand lower price may be charged if demand for the product is low.
(ii) Government policy: There may be government regulations and guidelines for fixation of prices, then prices will be fixed as per those guidelines. For e.g. prices of pharmaceutical products are fixed under government regulations.
(iii) Marketing methods used: The methods used for marketing of products also influence price decisions. The channel of distillation, promotional methods, types of packaging etc. have to be take into account while fixing the price of a product.
29. Briefly explain any three methods of sales promotion.
Ans: Following methods are used for sales promotion :
(i) Rebate: It refers to selling product at a special price which is lower than the original price in order to clear the stocks. The rebate is allowed for a limited period or for the disposal of a particular stock.
(ii) Contests: Some companies organise contests for particular sections and offer gifts of its products to the winners. The contest may help in popularising the products among large sections of people.
(iii) Discounts: A discount is a reduction of certain percentage of price from the list price which is allowed to a customer for a limited period. Sometimes higher discounts are offered for higher volume of sales.
30. Explain briefly any three features of advertising.
Ans: Following are the features of advertising:
(i) Paid Form: Advertising is a paid form of publicity. The cost of advertisement is borne by the sponsor.
(ii) Impersonal: There is no contact between the advertiser and the customer. It is a one way communication through some advertising media.
(iii) Identified Sponsors: Advertisement is given by a specific person, firm or a company.
31. Explain briefly any three features of personal selling.
Ans: The three features of personal selling:
(i) Face to face contact: Personal selling involves face to face contact with the customer. The seller and the buyer come close to understand each other’s view point.
(ii) Two-way communication: It involves two way communication.
The seller gives the view point of the product and the buyer has a chance to make queries.
(iii) Oral: Personal selling makes use of spoken words or oral message. It is not in writing.
32. Explain any three advantages of Labelling.
Ans: The main three advantages of labelling are as follows:
(i) Identification of product: Labelling helps in identifying the product. It may easily be distinguished from other products.
(ii) Related to Brand: Labelling relates the product to a particular brand. The brand name of the product is permanently given on the label so it becomes easy to identify the product.
(iii) Grading of product: Label also helps in specifying the grade of the product. The product may be graded on the basis of quality, price, etc, the grade A, B, C may be mentioned on the label of the product.
33. Write any three functions of packaging.
Ans: The three functions of packaging are given below:
(i) It protects the goods during transportation, storage and while in use.
(ii) It is useful in providing an attractive display of goods in the markets.
(ili) Packaging gives individuality to the product and this acts as a device of publicity.
34. Discuss brief any three advantages of branding to the marketer.
Ans: The marketers draw the following benefits from branding:
(i) Publicity: A brand name enables its holder to advertise his product without any difficulty. Once a brand name becomes popular, people remember it for long.
(ii) Protection: A registered brand name and mark is a protection against limitation by the other manufacturers.
(iii) Distinctiveness: A brand name creates a distinctive impression among the customers. For instance, different brands of soap such as ‘Cinthol’, ‘Ok’, ‘Lux’, etc, creates different impressions upon the users, though the article is the same i.e. soap.
35. Differentiate between ‘marketing’ and ‘selling’ on the basis of:
(a) meaning. &
(b) emphasis.
Ans: Distinction between marketing and selling are listed below:
36. Discuss the importance of fairs and exhibitions in promoting sales.
Ans: Fairs and exhibitions may be organised at local, regional, national or international level to introduce new products, demonstrate the products and to explain special features and usefulness of the products. Goods are displayed and demonstrated and their sale is also conducted at a reasonable discount. International Trade Fair in New Delhi at Pragati Maidan, which is held from 14th to 27th November every year, is a well known example of Fairs and Exhibitions as a tool of sales promotion.
37. Differentiate between advertisement and salesmanship.
Ans: Distinction between advertisement and salesmanship are listed below:
38. Explain ‘promotion mix’ as an element of ‘marketing mix’.
Ans: There are four element of marketing mix. Promotion is one of the four element. Promotion deals with informing and persuading the customers about the firm’s product. Promotion mix involves decisions about advertising, personal selling and other promotional techniques. Advertising and personal selling are most commonly used to promote the sale of product of a firm. The use of promotional activities like contests, displays, free distribution of samples etc. is also significant to popularise product in the market.
39. Briefly explain three importance of advertising.
Ans: The importance of advertising are as follows:
(i) Advertising provides employment to persona engaged in writing, designing and issuing advertisements, also those who acts as models.
(iii) Advertising promotes the standard of living of the people by. increasing the variety and quality in consumption as a result of sustained research and development activities by the manufacturers. Advertising educates the people about the various uses of different products and this increases their knowledge. It also helps in finding customers in the international market which is essential for earning foreign exchange.
C. SHORT TYPE QUESTIONS ANSWERS TYPE-11 ( 4 MARKS EACH )
40. Define marketing. Explain its three features.
Ans: The consumer-oriented marketing has given rise to a new philosophy in business known as ‘marketing concept’. The marketing concept emphasises the determination of the requirements of potential customers and supplying products to satisfy their requirements.
The marketing concept considers marketing as an integrated process of identification, assessment and satisfaction of human wants. It regards creation of customer and satisfaction of his wants as the justification of business. Determination of wants of the customers takes precedence over production and other business activities. In other words, production is carried on according to the needs of the customers. Thus, the emphasis in modern business is on selling satisfaction and not merely on selling goods.. The marketing concept is based on the following pillars:
(i) Identification of customers or the target market.
(ii) Understanding the needs and wants of the customers or the target market.
(iii) Developments of products or services for satisfying the needs of the target market.
(iv) Satisfying the needs of target market better than the competitors.
(v) Ensuring profitable sales for the business.
Features of Marketing Concept:
The three features are as following:
(i) Key Area: Marketing is considered as one of the most important functional areas of modern business. Other functions such as production, procurement and financing revolve around marketing.
(ii) Customer Orientation: It emphasises the necessity of consumer orientation of the entire business. Marketing starts with the determination of customers’ wants and continues until the customers’ wants are completely satisfied and they are delighted with the goods and services.
(iii) Integrated Approach: It suggests that marketing is a dynamic business process ― a total integrated process rather than a fragmented assortment of functions.
41. Discuss any four objections to advertising ?
Ans: Advertising is often criticised as a wasteful activity and an unnecessary evil. Its critics offer the following arguments to prove their contention :
(i) Multiplication of Needs: Advertising multiplies the needs of the people by inducing them to buy even those things which are not required by them. Since an advertisement is continuously repeated. it creates a desire in the mind of the people to buy the advertised product.
(ii) Burden on the Buyers: The amount of money spent by at advertiser on his product’s advertisement added to the disteisition cost of the product, Thus, the customer an pay higher price for the product advertised.
(iii) Creation of Confusion: The consumers get confused when they are exposed to excessive advertising of certain products. For instance, different models of TVs of a large number of brands are advertised which makes it difficult for a buyer to make a choice of the right T.V. Similarly, there are so many brands of beauty soaps, detergents, tooth-pastes, etc.
(iv) Creation of Monopoly: Advertising may lead to monopoly of a brand. It is argued that big manufacturers who can afford large sums of money on advertising can create brand monopoly and eliminate the small producers. Advertising may also lead to other malpractices such as sale of inferior and dubious products. Innocent. people act on the advertisements thinking them to be true, but reality is different.
42. Explain any four functions of marketing.
Ans: The four functions of marketing are as follows:
(i) Gathering and analysing information: One of the important function of a marketer is to gather and analyse market information. This is necessary to identify the needs of the customers and take various decisions for the successful marketing of the products and services.
(ii) Market planning: After conducting marketing analysis, the marketer has to plan the steps necessary to achieve marketing objectives. This is called market planning. Suitable plans to increase production and sales, to use promotional tools etc. hame to be developed to accomplish the marketing objectives.
(iii) Product planning and development: It is necessary to design and develop product which meet the specifications of the momers, Products are the foundation of any marketing programme The success of marketing department depends upon the more of the product offered to the customers.
(iv) Branding: It is the process of stamping a product with some identifying name or make or a combination of both. In other words branding means giving a distinct individuality. A brand name consists of words, letters or numbers which may be vocalised.
43. Mention and explain the four Ps’ of marketing mix.
Ans: E. J. Mc Carthy has given four elements of Marketing Mix. These include-product, price, place and promotion. These elements are popularly called the four Ps’ of Marketing Mix.
The four P’s of marketing are discussed below:
(i) Product: It involves planning, developing and producing the right type of products and services to be offered by the firms to the customers. It deals with the product range, durability, branding, colour packaging and other features.
(ii) Price: The marketing manager should determine the price in such a way that the firm is able to sell its products successfully. The price of the product must cover its cost of production and distribution and also a reasonable margin of profit. Pricing also involves establishing policies regarding credit and discount.
(iii) Place Mix: It is concerned with the choice of middlemen and place where the product should be displayed and made available to the customers. It also involves decisions regarding storage transportation. The important channel used f physical des of goods include wholesalers and retailers.
(iv) Promotion: It deals with informing the customers about product and persuading them to purchase the same ashen personal selling, advertising, publicity and sales promo together, these elements constitute the promotion mix of the firm.
44. State any four services of advertising to consumers.
Ans: Four services of advertising to consumers are given below;
(i) Advertising helps the customers to know about the existence of various products and their prices. They can choose from the various products to satisfy their wants.
(ii) Advertising educates the people about new products and their diverse uses.
(iii) Advertising increases the utility of existing products for many people adding to the amount of satisfaction which they are already enjoying.
(iv) Advertising induces the manufacturers to improve the quality of their products through research and development. This ensures supply of better quality products to the customers.
45. Enumerate any four functions of packaging.
Ans: Four functions of packaging are given below:
(i) It protects the goods during transportation, storage and while in use.
(ii) It is useful in providing an attractive display of goods in the markets.
(iii) Packaging gives individuality to the product and this acts as a device of publicity.
(iv) Packaged goods are very easy to handle. Handling instructions can also be mentioned on the package to ensure safe handling of goods, e.g. “GLASS HANDLE WITH CARE.”
46. Describe ‘standardisation’ and ‘grading’ as marketing functions.
Ans: Standardisation and grading: Standardisation means setting quality standards to achieve uniformity in the product. Standardisation provides consistent quality assurance to consumers. Consumers are assured about the quality of product offered by the seller.
Grinding means classifying the product on certain accepted bench marks or bases. The bases of classification can be size, quality etc. Grading is necessary when a company is not following strictly the techniques of standardisation. Through grading, the marketer can get higher price for quality product.
47. Explain the marketing functions of storage and transportation.
Ans: (i) Storage: Goods are generally produced in anticipation of the demand. They have to be stored properly in warehouses to protect them from any damage which may be caused by ants, rats, moisture, theft etc. Storage of goods in warehouses has become an indispensable service these days. Producer, traders etc. have to store their goods in warehouse.
(ii) Transport: Modern organisations produce on a large scale to cater to the requirements of customers scattered throughout the country. This calls for transportation of goods from the place of production to the place of consumption. Transportation provides the physical means which facilitate the movements of persons, goods and services from one place to another.
48. What is meant by a product ? Why is packaging of a product necessary ?
Ans: A product is anything that can be offered to a market for attention, acquisition, use or consumption, it includes physical objects, waving, personalities, place, anisations and ideas. A productes a bundle of utilities (or satisfaction) for the customer Act has many other dimensions besides its physical appear in fact, a product is like an onion with several layers and each of the layers contributes to the total product image.
Packaging is necessary because it acts as a multi-purpose arrangement. It gives protection to goods on its route from manufacturer to consumer. It even protects the goods during its life with the user. Packaged goods are generally more convenient to handle. It also gives individuality to a product. It makes it easier to identify a product by looking at its package. Packaging increases the utility of branding a product. It is also necessary because with the help of packaging we can give information about the benefits and uses of the product.
49. Explain briefly four advantages of advertising to the manufacturers.
Ans: The four advantages of advertising to manufacturers are given below:
(i) Advertising facilitates mass production of goods which enables the manufacturer to achieve lower cost per unit of product. Distribution costs are low when the manufacturer sells the product directly to the customers. Advertising also facilitates distribution of the product through the retailer who are encouraged to deal in the advertised products.
(ii) Advertising can help in expressing the things in different ways such as drawings, colour, sound pictures etc. All these mediums can help in expressing the things in a much better way. This helps in improving the communication with the target audience.
(iii) New product are bought to the notice of people through advertising when people see the product on TV, they become familiar with them. So it creates demand for new products.
(iv) Advertising helps to build goodwill, create brand loyalty and product differentiation.
50. Explain the significance of packaging and labelling in marketing.
Ans: The significance of packaging and labelling in marketing are given below:
Importance of packaging :
(i) It protects the goods during transportation, storage and while in use.
(ii) It facilitates branding and advertising.
(iii) It gives prestige, individuality or identity to the product.
(iv) It is useful in providing an attractive display of goods in the market.
Importance of labelling:
(i) Labelling gives a unique identity to the product. It makes it easier to identify the product with a distinct label.
(ii) It enables the manufacturer to give brief instructions to the traders and consumers as regards handling of the product.
(iii) It can be used to highlight the price of the product. The retailers would not be able to charge higher prices from the customer.
(iv) It acts as a promotional tool by highlighting the special features of the product.
51. Explain the four important elements of marketing.
Ans: See Answer to Question No. 3, page no-423.
52. State any four advantages of personal selling.
Ans: As a tool of promotion, personal selling has the following advantages:
(i) Effective promotional tool: Personal selling is an active tool to increase the sale of a product. The sales person can explain the merits of the product to the customer.
(ii) Flexibility: Personal selling is highly flexible. The espersion can adjust his presentation to suit the specific needs of the concerned customers.
(iii) Minimum wastage: As compared to advertising, the wastage of efforts in personal selling is minimum. It is easier to communicate with the buyer directly.
(iv) Direct feedback: There is direct face to face interaction between the seller and the buyer. The salesperson can receive feedback directly from the customer on a continuous basis. This would help. him in modifying his presentation and taking other steps to sell satisfaction to the buyer.
53. Briefly explain various types of channels of distribution.
Ans: The various types of channel of distribution are as follows ―
(a) Direct channel (zero level).
(b) Indirect channels.
(a) Direct channel: The most simple and the shortest mode of distribution is direct distribution, where in the goods are made directly available by the manufacturers to customers, without involving any intermediary. This is also called zero level channel. A straight and direct relationship is established between the manufacturer and the customer.
(b) Indirect channels: When a manufacturer employs one or more intermediary to move goods from the point of production to the point of consumption, the distribution network is called indirect. This may take any of the following forms ―
(i) Manufacturer-Retailer and Consumer (one level channel): In this form of arrangement one intermediary i.e., retailer is used between the manufacturer and consumers. That is goods pass from the manufacturer to the retailers, who is turn sell them to the final users. E.g.- Maruti Udyog sells its cars and vans through company approved retailer.
(ii) Manufacturer-Wholesaler – Retailer – Consumer (Two level channel): This is the most commonly adopted distribution network for most consumer goods like soaps, oils, clothes, rice, etc. Here the wholesaler and retailer functions as connecting links between the manufacture and consumers. Use of two middle men in the channel network enables the manufacturer to cover a large market area.
(iii) Manufacturer – Agent – Wholesaler – Retailer – Consumer (Three level channel ): In this case manufacturer use their own selling agents or brokers who connect them with wholesalers and then the retailers. Thus, one more level is added to the levels discussed in the proceeding arrangement. It done particularly when the manufacturer carriers a limited product line and has to cover a wide market. An agent in each major area is appointed, who in turn contact the wholesalers.
D. LONG TYPE QUESTIONS ANSWERS TYPE-1 ( 5 MARKS EACH )
54. “Bending the customer according to the product and developing the product according to customer needs” are the two important concepts of marketing management. Identify the concepts and differentiate between them.
Ans: Bending the customer according to the product is traditional concept and developing the product according to customer needs is modem concept.
The differences between traditional and modern concept are listed below:
55. What is meant by “indirect channels to distribution ?” Explain which indirect channel of distribution would you adopt for consumer goods and why ?
Ans: See Answer to Question No. 53.
56. Some products have certain unique features. They attract a significant number of buyers. Identify the kind of product and list its features.
Ans: Specially products have certain unique features that attract a significant number of buyers. Fancy goods, stamps and coins for A collectors and prestige brands of men’s suits may be termed as speciality goods.
The unique features of speciality products are as follows:
(i) Speciality products attract a significant number of buyers of the higher income group.
(ii) They are of higher price range.
(iii) They are available at a few selected places only.
(iv) They are sold as a result of aggressive sales promotion efforts.
(v) After sale service is very important in case of speciality goods.
57. What is a package ? What are the functions of packaging ?
Ans: Package means a case, container, wrapper or other receptacle for packing goods. It can be made of metals, plastic, wood, paper, glass, etc.
Effective packaging of a product performs the following functions for the benefits of sellers and buyers:
(i) Protection of the product: The basic function of the package is to protect the product from breakage or damage due to mishandling, evaporation, pilferage, etc.
(ii) Identification of the product: Packaging gives individuality to the product and this acts as a device of publicity. Manufacturers choose attractive packages so that the users are able to remember and identify their products.
(iii) Self-advertisement: The brand name and mark can be printed on the package. Thus, packaged goods do some sort of self advertisement.
(iv) Preventing adulteration: Packaging is also necessary to prevent adulteration of goods by the unscrupulous traders. For instance, ghee, oils, cheese etc. need sealed packaging to prevent any possibility of adulteration.
(v) Convenient handling: Packaged goods are very easy to handle.
Handling instructions can also be mentioned on the package to ensure safe handling of a goods.
58. What do you understand by sales promotion ? Explain its significance.
Ans: Sales promotion includes those marketing activities other than personal selling, advertising and publicity that stimulate consumer purchasing and dealer effectiveness, such as displays, shows, exhibitions and demonstrations. It includes activities of non-routine nature to promote sales eg.- distribution of samples, discount coupons, contests, exhibitions etc.
Business firms use promotional tools to achieve the following benefits:
(i) Attracting attention: The first aim of sales promotion is to attract the attention of the prospective buyers and inform them about the availability, characteristics and uses of a particular product.
(ii) Highlighting utility of product: Promotion helps in letting the people know about the utility of the new products. It also tells them how the concerned product will be helpful in satisfying their specific demands.
(iii) Stimulation of demand of new product: Promotion activities are used to create interest in the new product and to persuade people to buy the same. This helps in launching the new product.
(iv) Product differentiation: Promotion helps in differentiating a particular product of the firm from the competing product of other firms. A firm can also use data revealing how its product compares with the other products.
(v) Synergy in promotional activities: Sales promotion activities supplement personal selling and advertising efforts of the firm. They add to the overall effectiveness of the firm’s promotional activities.
59. Define advertising and explain its objectives.
Ans: American Marketing Association has defined advertising as “any paid form of nonpersonal presentation and promotion of ideas, goods and services of an identified sponsor.”
Businessmen resort to advertising to achieve the following objectives:
(i) To introduce a new product by creating interest for it among the prospective customers.
(ii) To support personal selling programme. Advertising may be used to open customer’s doors for salesmen.
(iii) To reach people inaccessible to salesmen.
(iv) To enter a new market or attract a new group of customers.
(v) To fight competition in the market and to increase the sales.
(vi) To enhance the goodwill of the enterprise by promising better quality products and services.
60. Explain in brief the factors that are taken into consideration while taking decision on pricing the product.
Ans: The factors that are taken into consideration while taking decision on pricing the product are discussed below:
(i) Cost of Product: While fixing the price of a product the costs of production and distribution must be considered. Such costs must be sufficiently covered by the sale price to avoid losses.
(ii) Demand of Product: The market demand for a product or service has a big impact on its pricing. Since demand is affected by the prospective buyers, their capacity and willingness to pay, their preference etc. are taken into account while fixing the price.
(iii) Types of Customers: The target customers must be able to afford the price. That is why, T.V. manufacturers introduce cheap T.V. sets for lower income groups and costly deluxe models for the higher income groups.
(iv) Government Regulations: The maximum sale price of some products is fixed by the Government. No firm can charge beyond the statutory price.
(v) Extent of competition: Competition in the market is a crucial factor in price determination. The prevailing information about what price the competitors are charging for similar products and what possibilities lie ahead for raising or lowering price also affect pricing.
61. Bajaj Auto wants to promote its sales in the market. Suggest any three sales promotion technique for this purpose.
Ans: The techniques that may be used by the Bajaj Auto to promote sales in the market are given below:
(i) Full Finance 0% : Manufacturer of durables like car, bike, A.C. etc. offer easy financing schemes even at 0% rate of interest e.g. -pay 10,000/-in cash and 30,000 in 12 equal instalments of 2,500 each by post-dated cheques and get a bike on the spot.”
(ii) Exchange offer: It means exchange of an old vehicle with the new one after payment of the exchange price fixed by the manufacturer. Such offers are very common these days in case of electric cars, TVs, scooters, washing machines, gas stoves etc.
(iii) Rebate or price-off offer: In order to increase sale, many producers introduce price off offer to the customers. Under this, the product is offered at a price lower than the normal price. Rebate offer is given for a limited period only and usually during off season.
E. LONG TYPE QUESTIONS ANSWERS TYPE 11 ( 6/8 MARKS EACH )
62. “Advertising” and ‘Personal selling’ both are communication tools used by the marketers to promote their products. Yet they differ in their approach. Differentiate between the two by giving any six differences.
Ans: Difference between Advertising and Personal Selling :
63. “Money spent on advertisement is a waste.” Do you agree with this statement? Give reasons for your answer.
Ans: Yes, I am agree with this statement that expenditure on advertising is a social waste because it adds to the cost, multiplies the needs of people and undermines social values. In support of my reply following points are put forward.
(a) Adds to cost: The expenditure of advertising is added to cost of goods and services, which is ultimately passed on to the buyers in the form of high prices. An advertisements on TV for a few seconds for example, costs the marketers several lakhs of rupees. Likewise an advertisement in print media say in a news newspaper or magazines costs the marketers a large amount of money.
(b) Undermines social values: Another important criticism of advertising is that it undermines social values and promotes materialism. It breeds discontent among people as they come to know about new products and feel dissatisfied with their present state of affairs. Some advertisement show new life styles which do not feel social approval.
(c) Confuses the buyers: Another criticism against advertisement is that so many products are being advertised which makes similar claims that the buyer gets confused as to which one is true and which one should be relied upon.
(d) Encourages sale of inferior products: Advertising does not distinguish between superior and inferior products and persuade people to purchase even the inferior products. Infact, superiority and inferiority depends on the quality, which is a relative concept.
(e) Some advertisement are in bad taste: Another criticism against advertising is that some advertisements are in bad taste. These show something which is not approved by some people say advertisement showing women dancing when not required, running after a man because or is westing a particular suit or using a perfume one certainly not good.
64. “The present day marketing is consumer- oriented” rather than “product oriented”. Explain the statement bringing out clearly the nature of marketing management.
Ans: Traditionally marketing includes all activities that direct the flow of goods and services from the producers to the consumer. It is product-oriented as it does not consider the needs of the customers But in present day marketing is consumer-oriented because it is based on the philosophy that satisfaction of consumers is the basic purpose of business. It includes many activities that are performed even before the goods are actually produced and continue even after that.
The nature of marketing management is clarified by the following features :
(i) Goal-oriented: Marketing management is goal oriented. It attempts to satisfy the needs of customers by offering them want satisfying products and generate revenue for the business.
(ii) Customer satisfaction: Marketing management is the marketing concept in action. It includes all activities which are necessary to understand the needs of customers and supply goods and services to satisfy their needs.
(iii) Integrated approach: Marketing management determines the appropriate marketing mix of the firm. Product design, promotion, pricing and distribution are properly harmonised so as to satisfy the needs and expectations of the customers.
(iv) Specialised knowledge: Marketing management is a specialised field. Efficient handling of marketing activities requires specialised knowledge of markets, products, customers, taste and behaviours, government policies and business environment.
(v) Functional area of management: Marketing management is a functional area of management. It includes analysis, planning, implementation and control of the activities concerned with distribution of goods for satisfying the needs of the customers.
65. Explain any six important functions of marketing.
Ans: The functions of marketing are discussed below:
(i) Gathering and analysing information: One of the important function of a marketer is to gather and analyse market information. This is necessary to identify the needs of the customers and take various decisions for the successful marketing of the products and services.
(ii) Market planning: After conducting marketing analysis, the marketer has to plan the steps necessary to achieve marketing objectives. This is called market planning Suitable plans to increase production and sales, to use promotional tools etc. have to be developed to accomplish the marketing objectives.
(iii) Product planning and development: It is necessary to design and develop product which meet the specifications of the customers. Products are the foundation of any marketing programme. The success of marketing department depends upon the nature of the product offered to the customers.
(iv) Branding: It is is the process of stamping a product with some identifying name or make or a combination of both. In other words branding means giving a distinct individuality. A brand name consists of words, letters or numbers which may be vocalised.
(v) Standardisation and grading: Standardisation means setting quality standards to achieve uniformity in the product. Standardisation provides consistent quality assurance to consumers. Consumers are assured about the quality of product offered by the seller.
Grinding means classifying the product on certain accepted bench marks or bases. The bases of classification can be size, quality etc. Grading is necessary when a company is not following strictly the techniques of standardisation. Through grading, the marketer can get higher price for quality product.
(vi) Storage: Goods are generally produced in anticipation of the demand. They have to be stored properly in warehouses to protect them from any damage which may be caused by ants, rats, moisture, theft etc. Storage of goods in warehouses has become an indispensable service these days. Producer, traders etc. have to store their goods in warehouse.
66. What do you mean by ‘Channels of distribution ? ” Briefly explain the various types of channels.
Ans: The term ‘channels of distribution’ signifies various trade links connecting the manufacturers or producers and the ultimate consumers or users. It includes both the producer and the final user of the product as well as mercantile agents and merchant middlemen engaged in the transfer of title to goods and services. But it does not include concerns such as banks, warehouses etc.
2nd part: See Answer to Question No. 53.
67. What is promotion mix ? Explain the various elements of promotion mix.
Ans: There are four element of marketing mix. Promotion is one of the four element. Promotion deals with informing and persuading the customers about the firm’s product. Promotion mix involves decisions about advertising, personal selling and other promotional techniques. Advertising and personal selling are most commonly used to promote the sale of product of a firm. The use of promotional activities like contests, displays, free distribution of samples etc. is also significant to popularise product in the market.
The various elements of promotion mix are as follows:
(i) Advertising: It involves dissemination of information about a product or service to target customers through newspaper, magazines, radio, T.V., outdoor displays etc. Advertisement is a paid form of communication with the public.
(ii) Personal selling: It implies face-to-face contact between a seller and a buyer. Most business concerns employ salesmen or sales girls to sell their products through personal selling. The sales person can show the product to the prospective customer, explain its features and persuade him to buy it.
(iii) Sales promotion: Activities other than mentioned above to promote a product are known as sales promotion activities. Sales promotion include samples, coupons, contests, price-off offers, etc which can stimulate immediate sale.
(iv) Publicity: It involves the mention of a company and its product in newspapers, trade publications, radio and T.V. The company does not pay for its service. It also does not have control over the lengthy and type of message conveyed. Generally, new products, services or ideas are reported in the mass media as a news item. Thus, role of publicity in promotion is limited.
68. Give six difference between advertising and sales promotion.
Ans: The differences between advertisement and sales promotion are listed below:
69. What are industrial products ? Explain its five distinctive features.
Ans: Industrial goods are those which are meant for use in making other products or for rendering services in the operation of a business organisation.
The distinctive features of industrial products are as follows:
(i) Limited number of buyers: As compared to the consumer products, the number of buyers of industrial products are limited. For example, sugarcane is purchased by the producers (who are limited in number) of sugar, but sugar which is a consumer products. Is purchased by millions of people.
(ii) Derived demand: The demand for industrial products is derived from the demand for consumer products. For example the demand for leather will be derived from demand for shoes and other leather products in the market.
(iii) Technical consideration: Technical considerations assume greater significance in the purchase of industrial products because these products are complex and are brought for use in business operations.
(iv) Short channels: The sale of industrial products is generally made with the help of shorter channel of distribution i.e. direct selling or distributor or one level channel.
(v) Geographical concentration: Because of location of industries in certain regions, industrial market are highly concentrated. For instance, the demand for powerloom comes from Mumbai, Sholop Ahmedabad etc. where the textile industry is concentrated.
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