NIOS Class 10 Logistics & Supply Chain Management Chapter 23 Choice of Market

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NIOS Class 10 Logistics & Supply Chain Management Chapter 23 Choice of Market

Also, you can read the NIOS book online in these sections Solutions by Expert Teachers as per National Institute of Open Schooling (NIOS) Book guidelines. These solutions are part of NIOS All Subject Solutions. Here we have given NIOS Class 10 Logistics & Supply Chain Management Chapter 23 Choice of Market, NIOS Secondary Course Logistics & Supply Chain Management Solutions for All Chapters, You can practice these here.

Choice of Market

Chapter: 23

INTEXT QUESTIONS 23.1

1. Identify the statements whether they are true or false. An effective supply chain framework with a good flow of logistics operation helps to ease the business flow.

Ans: True. 

2. As per research reports, the estimated size of the Indian logistics market is pegged at US$ 215 billion and is growing at a CAGR of ________

Ans: 10.5%.

3. The benefits of supply chain include

(A) Higher rate of efficiency.

(B) Boosting consumer experience.

(C) Reduced operational costs.

(D) All the above.

Ans: (D) All the above.

INTEXT QUESTIONS 23.2

1. In __________ competition, buyers and sellers will be in large numbers.

Ans: Perfect.  

2. Identify the statements whether they are true or false. In oligopoly, there are only few companies which will be existing in the market.

Ans: True. 

INTEXT QUESTIONS 23.3

1. Market segmentation is basically classified into __________ types.

Ans: 4.

2. Geographic segmentation is the toughest form of segmenting people.

(A) True.

(B) False.

Ans: (B) False.

INTEXT QUESTIONS 23.4

1. Expand SKU.

Ans: Stock keeping units.

2. Identify the statements whether they are true or false

Segmentation is about maximising customer service and company profitability, by having different supply chain strategies

Ans: True.

3. Expand MTS.

Ans: Make to Stock. 

INTEXT QUESTIONS 23.5

1. Identify the statements whether they are true or false

Segmenting the customer and market can be more effective in identifying the customer needs.

Ans: True.

2. Many companies sent huge money on __________ which will not work all the time.

Ans: Advertisement.

3. Higher price for your product is accomplished by.

(A) Traditional strategy.

(B) Niche strategy.

(C) Sales strategy.

(D) None of the above.

Ans: Niche Market.

INTEXT QUESTIONS 23.6

1. Identify the statements whether they are true or false.

Research shows that on average, 30-40 percent of a company’s customer and product portfolio is unprofitable.

Ans: True.

2. Expand OME.

Ans: Original equipment manufacturers.

3. Expand VMI.

Ans: Vendor-managed inventory. 

TERMINAL EXERCISE

1. What are the factors which the variety of market systems depends on?

Ans: The factors which the variety of market systems depends on are: 

(i) Degree of Government Intervention: The extent to which governments intervene in markets can vary significantly, ranging from highly regulated economies to laissez-faire systems with minimal government involvement.

(ii) Ownership of Resources: Whether resources are privately owned, publicly owned, or a combination of both can influence the type of market system. In capitalist economies, resources are typically privately owned, whereas in socialist or communist systems, there may be more public ownership.

(iii) Nature of Goods and Services: arket” is a term economists use for all of the resources that businesses use to purchase, rent, or hire what they need in order to produce goods or services. 

2. Mention some examples of Oligopoly.

Ans: Some examples of Oligopoly are mentioned below:

For example, the Automobile industry (also, civil aviation, tele-communication, cement, arms and ammunition suppliers, etc.) is an example of oligopoly. There are a handful firms manufacturing trucks in India, such as, TATA Motors, Ashok Leyland, Eicher Motors and Mahindra.

The fast-food industry is a good example of an oligopsony. A small number of large buyers including McDonald’s, Burger King, and Wendy’s buys a huge amount of the meat produced by American ranchers. That gives the industry the ability to dictate the price they are willing to pay.

3. Define A. Early Adopters B. Laggards.

Ans: Early Adopters: Early adopters are individuals or entities who are among the first to adopt and use a new product, technology, or innovation. They tend to be adventurous, risk- tolerant, and eager to try out new ideas or products. Early adopters often play a crucial role in the diffusion of innovations, as their experiences and feedback can influence later adopters.

(B) Laggards: Laggards are individuals or entities who are slow to adopt new products, technologies, or innovations. They typically have a strong preference for traditional methods and are resistant to change. Laggards may adopt new innovations only after they have become mainstream or necessary due to obsolescence of older methods. They are often the last segment of the population to adopt new technologies or ideas.

4. How is segmentation classified?

Ans: Segmentation is classified are: 

(i) Volume Segmentation: Consumers are classified as light, medium, and heavy users of the product. At times, 80% of the product is sold to only 20% of the people. Sellers wish to produce the products which the heavy users most and everyone tends to do that. At the same time non-user has two users – those who do not use the products and those who wish to use their product, where some changes from non-user to user which the sellers should notIgnore it.

(ii) Product – Space Segmentation: It is when a company or business changes its product slightly so that it appeals to

satisfy the needs of a different group of customers. It is simply finding new variations under a brand which helps in boosting the profit of the company. Car manufactures are the best example of product space segmentation where different Models with slight differences tend to increase the sale of cars.

(iii) Benefit Segmentation: Even with all the market segmentation factors, customer behaviour depends on how he gets the benefits which he is in need now. It differs from user to user and product to product as it is stated above. If you take toothpaste as an example, one needs whitening and another needs freshness which falls under the benefits of the two users but the product is the same.

5. How is behaviouristic segmentation classified?

Ans: The behaviouristic segmentation classified are: 

(i) Purchase Occasion: Customers are differentiated on the basis of when they use the product or services. 

Example: Business people use airlines occasionally so one airline promotes itself as a business flyer with benefits according to it whereas another airline promotes itself as a tourist flyer where you can find customers according to it.

(ii) Benefits Sought: High quality, low price, taste, speed and time are the criteria where you can categorise people. 

Example: some people prefer flying in economy class where the price and comfort are good whereas some tend to fly in business class where it is a status issue for them and prefer luxury.

(iii) User Status: Customers are classified as regular users, occasional users, and non-users. Marketers can develop new products or new uses of old products by targeting one or another of these groups.

6. Explain Perfect competition and Monopolistic competition.

Ans: Perfect Competition In perfect competition, buyers and sellers will be in large numbers. There will be no big sellers in particular, all of them will be small and medium level sellers. So,all firms in such a market are price takers.

Monopolistic competitive markets are named as such because, while firms are competing with one another for the same group of customers to some degree, each firm’s product is a little bit different from that of all the other firms, and therefore each firm has something akin to a mini-monopoly.

7. Give a brief on demographic segmentation.

Ans: Demographic segmentation is the most common form of segmentation which all the companies use, where it refers to splitting up the customers based on observable, people-based differences which includes age, gender, marital status, family size, occupation, education level, income, religion, and nationality.

(i) Age: Teenagers, Adults, Retired

(ii) Gender: Male, Female, Trans-gender

(iii) Marital Status: Married, Unmarried

(iv) Family Size: Joint family, Nuclear family

(v) Occupation: Profession, Labour, etc.

(vi) Education Level: Student, Undergraduate, Post Graduate, etc.

(vii) Income level: Below 50,000, 50,000- 2,00,000, above 2,00,000

(viii) Religion: Hindu, Muslim, Christianity, etc.

(ix) Nationality: Indian, Australian, etc.

8. Name any two needs for market segmentation.

Ans: Two needs for market segmentation are: 

(i) Demographic Segmentation: It is the most common form of segmentation which all the companies use, where it refers to splitting up the customers based on observable, people-based differences which include age, gender, marital status, family size, occupation, education level, income, religion, and nationality.

(a) Age: Teenagers, Adults, Retired.

(b) Gender: Male, Female, Trans-gender.

(c) Marital Status: Married, Unmarried.

(d) Family Size: Joint family, Nuclear family.

(e) Occupation: Profession, Labour, etc.

(f) Education Level: Student, Undergraduate, Post Graduate, etc.

(g) Income level: Below 50,000, 50,000- 2,00,000, above 2,00,000.

(h) Religion: Hindu, Muslim, Christianity, etc.

(i) Nationality: Indian, Australian, etc.

(ii) Geographic Segmentation: It is the simplest form of segmenting people, where people living in a region have a purchasing and consuming habit, which differs from people living in another region. It differs based on the needs of the customer, the population in an area, climatic factors, whether it is a rural or urban area, flow of income, number of villages in that area etc.

9. Mention any three parameters for segmentation

Ans: Three parameters for segmentation are mentioned below: 

(i) Demographic Segmentation: It is the most common form of segmentation which all the companies use, where it refers to splitting up the customers based on observable, people-based differences which include age, gender, marital status, family size, occupation, education level, income, religion, and nationality.

(a) Age: Teenagers, Adults, Retired.

(b) Gender: Male, Female, Trans-gender.

(c) Marital Status: Married, Unmarried.

(d) Family Size: Joint family, Nuclear family.

(e) Occupation: Profession, Labour, etc.

(f) Education Level: Student, Undergraduate, Post Graduate, etc.

(g) Income level: Below 50,000, 50,000- 2,00,000, above 2,00,000.

(h) Religion: Hindu, Muslim, Christianity, etc.

(i) Nationality: Indian, Australian, etc.

(ii) Psychographic Segmentation: This segmentation strategy categorises consumers based on psychological variables, including lifestyle, personality, values, interests, attitudes, opinions, and behaviour. Psychographic segmentation helps marketers understand consumers’ motivations, preferences, and purchasing behaviours on a deeper level.

(iii) Behaviouristic Segmentation: In this method, customers are classified based on their knowledge, attitude and use of their actual products. 

10. Name the types of markets.

Ans: The types of markets are mentioned below: 

(i) consumer Markets: These are markets where individuals or households purchase goods and services for personal use or consumption. Consumer markets can be further segmented based on factors like demographics, psychographics, behaviour, and geographic location.

(ii) Business Markets (B2B Markets): Business markets involve transactions between businesses or organisations rather than between businesses and consumers. These markets include manufacturers, wholesalers, retailers, government agencies, and non-profit organisations that purchase products or services for production, resale, or use in their operations.

(iii) Industrial Markets: Industrial markets primarily involve the sale of goods and services used in the production of other goods and services. Examples include machinery, equipment, raw materials, and components purchased by businesses for manufacturing purposes.

(iv) Commodity Markets: Commodity markets are where raw materials or primary agricultural products are bought and sold. Examples include markets for oil, gold, wheat, coffee, and other raw materials or agricultural products.

11. Explain market segmentation and its types.

Ans: It is the marketing term which is used to segregate the customers or buyers which are of large numbers in order to categorise the demands, buying capacity, movement of products on various heads. It enables the companies to target the customers on different categories and utilise its sales and products. 

Thus, the segmentation is classified into basically 4 types which are:

(i) Demographic Segmentation: It is the most common form of segmentation which all the companies use, where it refers to splitting up the customers based on observable, people-based differences which include age, gender, marital status, family size, occupation, education level, income, religion, and nationality.

(a) Age: Teenagers, Adults, Retired.

(b) Gender: Male, Female, Trans-gender.

(c) Marital Status: Married, Unmarried.

(d) Family Size: Joint family, Nuclear family.

(e) Occupation: Profession, Labour, etc.

(f) Education Level: Student, Undergraduate, Post Graduate, etc.

(g) Income level: Below 50,000, 50,000- 2,00,000, above 2,00,000.

(h) Religion: Hindu, Muslim, Christianity, etc.

(i) Nationality: Indian, Australian, etc.

(ii) Behaviouristic Segmentation: In this method, customers are classified based on their knowledge, attitude and use of their actual products. 

(iii) Psychographic Segmentation: In this method, the consumers are classified based on their psychological factors which are personality, attitude, life style, etc.

(iv) Geographic Segmentation: It is the simplest form of segmenting people, where people living in a region have a purchasing and consuming habit, which differs from people living in another region. It differs based on the needs of the customer, the population in an area, climatic factors, whether it is a rural or urban area, flow of income, number of villages in that area etc.

12. State the reasons for segmentation.

Ans: The reasons for segmentation are mentioned below:

(i) Better Satisfy Customer Needs and Wants: By segmentation, you can find customer needs and wants. Each one has their own wants and needs which are diversified and that should be handled in a diversified way in order to fulfil them. Segmentation helps in identifying customer needs and preferences which creates the demand for a product in the market. If you find a solution for each of the segments, you will be able to make the company successful.

As customers grow older, their preferences keep changing, and if you are able to make the segmenting cycle flow, you are able to keep the customer satisfied till his final days which is a great way to retain the customers for a long period of time.

(ii) Better Communication: To make the segmentation effective, messages should be sent to the customers directly. Since each of the customers has different wants and needs, messages should be sent in that way in communicating the solutions to the customer separately. When you target the mass customers alone, you may miss some targeted customers where your message is not yet delivered to them. Many companies spent huge amounts of money on advertisements which most of the customers won’t buy. Through segmentation, customers can be reached with a marketing message which solves their individual’s problem, which also costs very less to the company.

(iii) Opportunity for Growth: Segmentation helps in identifying the customers who would not buy the product normally. By segmenting, you can find out those customers, where you create your own attractive niche that may be the solution for them. If such unique problems are identified, companies are able to solve the problem, meanwhile helping in improving the sales of the company, which helps the customers upgrade from the current product to a new version, where this cycle continues, will be profitable for the company.

(iv) Increased Innovation: With segmentation, the smaller segments with similar needs and wants can be identified. Mainly traditional customers fall under this category, but identifying new needs can stimulate innovative ideas to solve new problems. When both the problem and new innovative solutions meet, premium charges can be implied which customers would not hesitate to buy and the market is sustained.