NIOS Class 12 Business Studies Chapter 16 Advertising and Salesmanship

NIOS Class 12 Business Studies Chapter 16 Advertising and Salesmanship Solutions to each chapter is provided in the list so that you can easily browse throughout different chapters NIOS Class 12 Business Studies Chapter 16 Advertising and Salesmanship and select need one. NIOS Class 12 Business Studies Chapter 16 Advertising and Salesmanship Question Answers Download PDF. NIOS Study Material of Class 12 Business Studies Notes Paper 319.

NIOS Class 12 Business Studies Chapter 16 Advertising and Salesmanship

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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 12 Business Studies Chapter 16 Advertising and Salesmanship, NIOS Senior Secondary Course Data Business Studies for All Chapter, You can practice these here.

Advertising and Salesmanship

Chapter: 16

Module – 4 Marketing

INTEXT QUESTIONS 16.1 

1. The following sentences give the characteristics of advertising and publicity. You are required to put ‘A’ for characteristics of advertisement and ‘P’ for publicity in the boxes given against each sentence. 

(a) It is paid form of dissemination of information.

Ans: A.  

(b) There is no identified sponsor.

Ans: P.  

(c) There is an identified sponsor. 

Ans: A.

(d) This may leave favourable or unfavourable impression on the public about the company and its products. 

Ans: P. 

2. Read the following and indicate which objective of advertising the company is trying to achieve. Write the objective in brackets. 

(a) A washing powder manufacturing company issuing an advertisement about protection of the girl child.( )

Ans: Create and enhance goodwill of the firm.  

(b) A consumer durables company bringing out an advertisement giving a list of dealers selling its products.( )

Ans: Dealer support.

(c) A company using a celebrity to advertise their product. ( ) 

Ans: Create and enhance brand image. 

(d) A company manufacturing technical products issuing an advertisement showing use and operation of its products.( )

Ans: Helps personal selling.

INTEXT QUESTIONS 16.2 

1. In the flow chart given below, the benefits of advertisement are given under three heads. You are required to state two important points of benefit under each head.

Ans: (a) Benefit to Manufacturers: 

(i) Introduction of new products.

(ii) Creating and enhancing goodwill.

(b) Benefits to Consumers:

(i) Information about product, prices etc. 

(ii) Guides the consumers about proper use.

(c) Benefits to society:

(i) Generates employment.

(ii) Generates huge revenue for print and electronic media.

2. State any two limitations of advertising.

Ans: (a) Advertising multiplies wants. 

(b) Advertising adds to the cost and prices of product. 

INTEXT QUESTIONS 16.3 

1. Complete the following table by writing the names of the products advertised most frequently in the given medium.

Ans:

2. Which medium/media of advertising will be most suitable in the following cases: 

(a) For advertising products of mass consumption for all strata of society. ( )

Ans: Films Advertising.  

(b) To reach a selective target group or a specific segment of readers. ( )

Ans: Magazines and Journals. 

(c) To catch the attention of people at traffic lights, in traffic jams or when they are travelling by train. ( ) 

Ans: Outdoor advertising.

(d) To reach out to illiterate consumers as well as to use the visual medium effectively. ( )

Ans: Television. 

(e) To reach a wide range of the literate population of the country. ( )

Ans: Newspapers. 

(f) For advertising to people in rural, semi-urban and the urban areas. ( )

Ans: Radio. 

INTEXT QUESTIONS 16.4 

1. Complete the flowchart with correct steps in the selling process.

A

↓

Pre – approach

Approach

B

↓

Answering the queries/ objectives and their clarification

C

After – sales service.

Ans: (a) Prospecting. 

(b) Presentation and demonstration. 

(c) Action or closing the sale. 

2. State briefly the benefits of salesmanship to: 

(a) Consumers.

Ans: Selling direct-to-consumer ensures the quality of your product, packaging, and pricing is up to your standards. 

(b) Business.

Ans: They can help your company understand the local business environment, cultural norms, and consumer behavior. This information can be crucial in determining the best marketing strategies and pricing models to use.

(c) Society.

Ans: The benefits of salesmanship to the Society. It helps in increasing the supply of goods to the society.It increases employment opportunities.

3. The following sentences give the benefits of salesmanship. You are required to put ‘B’ for benefits provided to business, ‘C’ for benefits provided to Consumers and ‘S’ for benefits provided to the society in the boxes given against each sentence. 

(a) By giving the requisite information about the company and the product, provides confidence in accepting or rejecting the sale.

Ans: C.

(b) Helps in planning for the right type of products and introducing the necessary improvements therein. 

Ans: B.

(c) Explains the uses and the operational aspects of a product. 

Ans: C.

(d) Facilitates the process of production, distribution and consumption.

Ans: S. 

(e) Ensures proper handling of the product.

Ans: B.  

4. List any two qualities of a good salesperson.

Ans: (a) Good personality.

(b) Mental qualities. 

INTEXT QUESTIONS 16.5

1. State the main objectives of sales promotion.

Ans: (a) Information to customers. 

(b) Persuades Customers. 

(c) Increase sales. 

(d) Incentive to retailers. 

(e) Create product identify.   

2. Name the sales promotion tools being referred here: 

(a) A sachet of a new brand of shampoo attached to a magazine for use by its readers. ( ) 

Ans: Distribution of free sample.

(b) 10% talcum powder extra in a 250 gram tin. ( )

Ans: Bonus offer. 

(c) A crossword puzzle on information about a new magazine for children. ( )

Ans: Contests or Quizzes. 

(d) A comb free with a bottle of hair oil. ( )

Ans: Freeoffer.  

(e) Books being sold at the annual book fair in your town. ( ) 

Ans: Fairs and exhibitions.

(f) A ceiling fan being offered at a discounted price to customers during winters. ( )

Ans: Price-off. 

Very Short Answer Questions: 

1. Define the term advertising. 

Ans: Advertising as a promotional tool is used by the marketeers either to build up a long-term image of the product or to generate quick sales. With the help of Advertising, Marketeers can reach geographically dispersed buyers efficiently. Certain forms of advertisement like TV Advertisements require a large budget, whereas for other forms of advertisement a small budget is required, e.g. newspapers or magazines, etc.

2. What is publicity? 

Ans: Publicity is like advertising. But it is a non-paid form of communication which may be carried out in a form of news in the mass media about a product or about an organisation. Publicity can be positive or negative. Maggi Ketch-up and Maggi Masala gained popularity due to favourable publicity about Maggi Noodles. But, there was substantial decline in the sales of some products with the spread of negative news associated with those products in the market.

3. Define personal selling. 

Ans: The salesperson has shown him the latest collection of garments. By the time the process of sale is concluded, he may also purchase one shirt for himself. The reason for such unplanned purchase is the effect of salesmanship. The salesperson at the counter may have first assessed his interest in the new fabric available and then tried to persuade him to buy another shirt for himself. This whole exercise of assessing the need, activating it and ultimately satisfying it by selling the product is termed as salesmanship or personal selling. 

4. State the meaning of Sales Promotion. 

Ans: In the market, sometimes we see a few special offers like ‘Buy one get one free offer’; 50 gm. extra in a 250 gm pack of a particular brand of tea, or one glass or bowl free with a pack of 500 gm. There are innumerable examples where the manufacturer or the seller tries to tempt you to buy his product by offering discounts, extra quantity or a chance to win grand prizes, etc. All such activities are known as sales promotion. 

5. Explain ‘Bonus offer’ as a tool of sales promotion. 

Ans: At times marketeers offer extra quantity with standard products without any additional charge to the customer.

1. What are the main objectives of advertising? Explain briefly. 

Ans: The objectives to be achieved through advertising are as follows: 

(i) Introduction of New Product: Business firms keep on introducing new products in the market and have to inform the prospective customers about its features, price, usage, availability etc. Advertising not only attracts their attention but also helps them in forming an opinion about the product and making the best purchase decisions. 

(ii) Increase in Sale: Advertising helps in increasing the sales of the firm’s products. It also helps in turning non-users of products to users of products and also in attracting the consumers of competitor’s products. Business firms make use of advertising to inform the consumers about the advantages and superiority of their product. 

(iii) Maintaining Existing Buyers: Now-a-days new products keep on entering the market at a fast pace and consumers tend to switch over to the new products. Advertising is used to remind the consumers about how good their products or services are and that they are still in the market as old and reliable ones. The idea is to prevent decline in the sale of their product in the market. 

(iv) Create and Enhance Goodwill of the Firm: Advertising helps in building reputation of the business house. Through advertising, the firms can communicate their achievements to the consumers and clarify any misconceptions or doubts in the mind of the public about themselves or their products, if any. This helps in creating a good image of their firm in the minds of consumers, workers, investors, government and so on. 

(v) Dealer Support: Another objective of advertisement is to provide the necessary support to firm’s dealers and distributors. Hence, some advertisements, besides the information about the product characteristics, price etc., include a list of dealers and distributors. 

(vi) Create and Enhance Brand Image: Advertising is also used for creating a brand image which helps in building customers’ loyalty. When customers develop brand loyalty, they do not shift to other brands easily. Brand image gets enhanced with repeated advertisements. 

(vii) Helps in Personal Selling: Advertising facilitates the process of personal selling.The salesperson’s job is made easier if the customer has familiarity with the product.

2. How is publicity different from advertising? 

Ans:

3. Name four items each, which are best suited for advertisement in ‘Magazines and Journals’ and through ‘Films’. 

Ans:

4. What are the limitations of advertising? 

Ans: Many people consider advertising to be a wasteful activity and sometimes harmful for the customers and the society in many ways. 

Their arguments against advertisement are as follows: 

(i) Advertising Multiplies Wants: People tend to desire and buy products as they see in advertisement even if they do not actually need or afford them. This multiplication of wants may put them under financial and psychological pressure. 

(ii) Advertising adds to the Cost and Price of Product: Money spent on advertising eventually results in increased cost of the product, which is passed on to the consumers through increased prices. 

(iii) Creation of Monopoly: Business firms which can spend heavily on advertising are usually the ones who grab a bigger share of the market. Such firms generally have a largest share of the market. 

(iv) Advertising may Affect the Value-system of Society: Advertising may introduce ideas or concepts alien to our culture. These new values generated or propagated by advertising may affect our social, moral and ethical values adversely. 

(v) Motivation for Wrong or Dangerous deeds: The way advertisements project people consuming liquor, cigarettes or pan-masala, may tempt people to try and then get addicted to such products which are not good for health. 

(vi) Advertising may not Increase overall Demand: Advertising does not always increase demand. In many cases, a number of firms manufacturing similar products may advertise vigorously. 

(vii) One Way Communication: Advertisers share their message with a large audience through different media but do not get the immediate feedback as it is a one-way communication from Marketeer to a larger target audience. 

5. State the importance of personal selling for the society.

Ans: The importance of personal selling for the society:

Benefits to the Society:  

(i) Salesmanship facilitates the process of production, distribution and consumption.  

(ii) Salespersons help in collecting market information, credit information, delivering goods and collecting payments.  

(iii) They help in matching demand with supply because they know what the consumers want.  

(iv) They also inform the consumers about the introduction of new products, if any.  

(v) By increasing sales, they help in the growth of business.  

1. “Advertising plays an important role in business and society”. Discuss. 

Ans: Advertising helps the manufacturers in introducing new products, maintaining customers of existing products and in increasing their sales by attracting new customers. It helps in spreading the message about the company, its product, products’ features, prices etc. to widely spread customers.It also helps the business houses in creating and enhancing their goodwill. It makes the job of salespersons easier by keeping the customer informed about the product. Advertising is an important tool for fighting competition in the market effectively by giving the customers a comparative picture of its products vis-a-vis the competitors’ products.

Benefits to Society: 

(i) The enhanced competition resulting from advertising motivates the producers to make improvements in their existing products and find out better alternatives through Research and Development (R&D) activity. So it helps in providing more convenience, comfort and better life style to the people. 

(ii) Advertising also works as a guide and teacher for people who do not know about many products and their multiple uses, if any. 

(iii) It generates employment for thousands of people who are connected with the advertising world in different capacities. 

(iv) Advertising generates huge revenue for both print and electronic media. This helps the availability of newspapers, magazines and television programmes at affordable prices due to mass reach.

2. What is the right media for advertising consumer durable products? Discuss. 

Ans: Newspapers: Newspapers are a good means of advertising since a big proportion of our country’s population read newspapers published in Hindi, English and the various regional languages.

Newspaper is among the most suitable media for: 

(i) Advertising consumer products used by masses. Such products include durables like TV, Refrigerator, Cycle, Scooter, Washing Machine etc. and non-durables like soaps, shampoos, oils, etc. 

(ii) It is also suitable for advertising many services like banking, insurance, transportation, etc.   

3. A manufacturer of detergent powder wants to introduce detergent cake in the market under a new brand name. Which sales promotion tools should he use to attract the customers? Give reasons in support of your answer. 

Ans: This is how they promote sales. Some of such promotional tools are given below: 

(i) Distribution of Free Samples: As mentioned above, distribution of free samples is a commonly used sales promotion tool. It is a good method for introducing a new product or a brand in the market. Such free samples can be distributed at the door step, through fairs, or even through retail stores. Sometimes you may find free samples of shampoo, ketchup, deodorants, etc. along with the newspapers. 

(ii) Bonus Offer: At times marketeers offer extra quantity with standard products without any additional charge to the customer. 

(iii) Price-off: To increase sales, or to reduce competition, many business firms cut down prices. Prices may also be cut down during off season to maintain certain volume of sales. You may found a deodorant with a reduced price as a promotional or introductory offer. This is generally common with the newly introduced products or variants of a product.

(iv) Free Offer: Many companies give ‘free’ offers to boost the sales of their products.They offer products of similar or related nature with the purchase of main products. For example, Soap or hair oil free with a bottle of shampoo, etc. 

(v) Money Refund Offer: Of late, another method being used by marketeers to boost consumer’s confidence in a product is a promise of total refund of money spent on the product if the buyer is not happy with the product’s performance. Such offers not only arouse the customers’ interest in the product but also motivates them to make a trial. 

4. One reputed company wants to recruit salesman for retail stores. Can you identify the qualities they should look for in the prospective candidates?

Ans: Some of the common qualities which a salesperson must possess are as follows: 

(a) Good Personality: Personality is a mixture of many traits like physical appearance, dressing-up, way of talking, manners, pitch of voice, habits,etc. Personality of a salesperson should be such that the moment he/she comes in contact with the customer, he/she looks friendly and the customer is ready to start a conversation. 

(b) Mental Qualities: A salesperson must have the quality of alertness, imagination, foresightedness, empathy etc. They should have the ability to read the customer’s mind and behave accordingly. There may be certain doubts or apprehensions in the mind of the customer regarding the product. Only a salesperson with these mental qualities will be able to solve the customer’s problems. A good salesperson should be able to match the product with the customer’s need and ability to pay.

(c) Good Behaviour: A salesperson should be a well behaved person with ability to interact with people comfortably. should be cooperative so that they can help people in making up their minds by patiently answering all their questions. Patience and humility will help them in not only holding the attention of the customer but also in getting them interested in purchasing the product. 

(d) Knowledge: While buying a television set normally we ask the salesperson a number of questions about the features of the latest model. If the salesperson fails to answer our queries or if we are not satisfied with the reply, we may leave that shop and visit another shop where all of our queries are answered by the salespersons. This is possible only when the salesperson has detailed knowledge of the product. They should know every detail relating to the product and the company They are is representing. They should be able to explain the various features of the product, the way it is to be used and the precautions to be taken and so on. Knowledge about competitors’ product is also a must so that the salesperson can explain the superiority of their product. 

(e) Ability to Communicate and Persuade: If a salesperson can communicate properly and effectively then they will be able to clear the biggest hurdle of making the prospective customer listen to them. The salesperson must speak confidently, clearly and audibly. Good communication ability coupled with good knowledge about the product helps the salesperson in persuading the customer to buy the product. 

(f) Persistence: The salesperson must know the art of persistence. It requires a sense of determination to convince the customers to buy. They must not give up easily. Without being offensive, he/she must persuade the customer to finalise the purchase with a sense of satisfaction.     

5. What are the objectives of Sales promotion? Explain in brief, giving a list of various popular sales promotion tools.

Ans: Some of the objectives of sales promotion are listed below: 

(i) Information to Customers: Sales promotion activities inform the potential buyer about the availability, features, uses etc. of the product. Thus, it offers additional support to promotional activities like advertising, publicity and personal selling (salesmanship). 

(ii) Persuades Customers: Sales Promotion activities aim at arousing customers’interest in the product and persuading them to buy the same. 

(iii) Increase in Sales Volume: It aims at increasing sales. It is specially done during the periods when customer may not buy the product because it may not have immediate use, like a room cooler in winter, and a room heater in summer. The sales promotion schemes are a big help in making off-season sales and also in tempting the buyers to make quick decisions to purchase. 

(iv) Incentive to Retailers: The main objective of sales promotional activities is to offer promotional support to retailers. Sales promotion schemes make sales easier. Incentive schemes help in getting shelf space for such products in new retail outlets. 

(v) Create Product Identity: A number of brands of a particular product are available in the market and it is very difficult to distinguish one from the other as all have similar features, prices, variety etc. Under sales promotion programme, product identity is established by offering additional features and incentives. This helps in building consumers’ preference for the specific products and brands.