NIOS Class 12 Business Studies Chapter 21 Advertising and Salesmanship

NIOS Class 12 Business Studies Chapter 21 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 21 Advertising and Salesmanship and select need one. NIOS Class 12 Business Studies Chapter 21 Advertising and Salesmanship Question Answers Download PDF. NIOS Study Material of Class 12 Business Studies Notes Paper 319.

NIOS Class 12 Business Studies Chapter 21 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 21 Advertising and Salesmanship, NIOS Senior Secondary Course Data Business Studies for All Chapter, You can practice these here.

Advertising and Salesmanship

Chapter: 21



Q. 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.

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

(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.


Q. 1. In the flow charts 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) Benefits to Manufactures: 

(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.

Q. 2. State any four limitations of advertising.

Ans. (a) Advertising multiplies wants. 

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

(c) Creation of Monopoly.

(d) Motivates for wrong or dangerous deeds.


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

MediumProducts Advertised


MediumProducts Advertised
Newspaper1. T.V.2. Cycle3. Oils
Television1. Chocolates2. School bags 3. Toys
Radio1. Tractor2. Fertilizers3. Pesticides
Magazines1. Medicines2. Medical equipment3. Sports goods

Q. 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 the 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.


Q. 1. Complete the flow chart.

Ans: (A) Prospecting.

(B) Presentation and demonstration. 

(C) Action or closing the sale.

Q. 2. State briefly the benefits of salesmanship to:

(a) Consumers.

(b) Business.

(c) Society. 

Ans: (a) Benefits to Consumers: A sales person acts as a friend and guide to the consumers. By making conversation with salesperson, the customer gets help in identifying the product of his need and the price range that suits him. The salesperson explains to the customers the uses and the operational aspects of a product. By giving there quisite information about the company and the product, the salesperson provides confidence to the customers to try something new which might be better and/or cheaper. The salesperson also provides the necessary after sales service to the customers.

(b) Benefits to the Business: Salesmanship helps a business in increasing its sales. Identification of new customers and persuading them to buy can be done effectively through personal selling. Since the salesperson comes in direct contact with the customers, understands the needs and preferences of the customers and thus, can help the businessman in planning for the right type of products and effecting the necessary improvements therein. In case of products of technical nature the role of salesmanship is very important as the salesperson can personally explain the functioning of the product, its use and precaution to be taken in its use. This ensures proper handling of the product, and boosts customer’s confidence in his choice of the products.

(c) Benefits to the Society: Salesmanship facilitates the process of production, distribution and consumption. Salespersons help in collecting market information, credit information, delivering goods and collecting payments. It helps in matching demand with supply because they know what the consumers want. They also inform the consumers about the introduction of new products, if any. By increasing sales, they help in the growth of business.

Q. 3. List any six qualities of a good salesperson. 

Ans: (a) Good personality.

(b) Mental qualities.

(c) Good Behaviour.

(d) Knowledge.

(e) Ability to communicate and persuade.

(f) Persistence.


Q. 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.

Q. 2. Name the sales promotion tools being referred to 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: Bonus-offer.

(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 Types Questions:

Q. 1. Define the term advertising.

Ans. Advertising is ‘any paid form of non-personal presentation and promotion of ideas, goods and services of an identified sponsor’.

Q. 2. What is publicity?

Ans: Publicity is a communication about the product, service or a business firm which is communicated voluntarily by the media and is of commercial significance to the firm.

Q. 3. Define personal selling.

Ans: Personal selling is a process of assisting and persuading the prospective customers to buy a product in a face-to-face situation. It helps the consumers to make his/her best choice. It increases the sales of the product. It helps in collecting market information, credit information, delivering goods and collecting the payment.

Q. 4. State the meaning of Sales Promotion.

Ans: Sales promotion means the all promotional activities other than advertising, salesmanship and publicity which help in increasing the market demand of the product.

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

Ans: Bonus Offer: At times marketers offer something extra with standard products without any additional charge to the customer. It could be extra quantity of the same product or some other product of the company like toothbrush with toothpaste or any other related items as gift like a bucket with large pack of washing powder, and so on.

Short Answer Types Questions:

Q. 6. What are the main objectives of advertising? Explain briefly.

Ans: Objectives of Advertising: The main objective of advertising is to help a business firm to promote its products and increase the sales. But, there are some other goals also which a firm can achieve with the help of advertising. 

The objectives to be achieved through advertising are as follows:

1. 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.

2. Increase in sale: Advertising helps in increasing the sale of 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.

3. Maintaining existing buyers: Now-a-days new products keep on entering in 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.

4. 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.

5. 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.

6. 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.

7. 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. This is achieved through advertising. A customer is more receptive to the salesperson if he/she already has some idea about the product.

Q. 7. How is publicity different from advertising?

Ans: Difference between Advertising and Publicity:

1. PaymentIt is a paid form of dissemination of information. The firm has to pay for the use of space and time.The sponsor does not make any payment to the media as the information is published/communicated voluntarily.
2. Identified SponsorThere is an identified sponsor, that is, the business firm which wants to advertise it’s products considers it or services.There is по identified sponsor.Media communicates the information as it news worthy.
3. ControlThe advertising firm has full control over the content, type, size, duration and frequency of the message.The concerned firm has no control over the contents, type, and size of the information.
4. PurposeIt is intended to give favourable and positive impression about the company and its products.This may have favourable or unfavourable impression on the public about the company and its products.

Q. 8. Name four items each, which are best suited for advertisement in ‘Magazines and Journals’ and through ‘Films’.

Ans: Magazines: Health and Nutrition, sports goods, Sports, Star electronic items and medical equipment.

Journals: Health care products, sports products, medicines and edible items.

Film: Cosmetics, toiletries, medicines, etc.

Q. 9. What are the limitations of advertising?

Ans: Limitations of Advertising: Many people consider advertising to be a wasteful activity and something 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. You must have noticed that the brands which are advertised heavily in different media are found to be priced higher as compared to those which are not so heavily advertised.

(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 monopoly which results in unequal opportunity for small producers to make a place for themselves in the market. They do not get a fair opportunity to compete.

(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. Objectionable appeals like sex, horror etc. are sometimes used in advertisement to attract attention.

(v) Motivation for wrong or dangerous deeds: The way advertisements project people consuming liquor, cigarettes or pan-masala, may feel tempted by the people to try and then get addicted to such products which are not good for health. Similarly, models are shown doing dangerous acts like jumping from the top of a hill which some children may try to copy and may face the accidents.

(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. This may not result in an increase in the total demand for the product but simply shift demand from one brand to another.

Q. 10. State the importance of personal selling for the society.

Ans: Salesmanship facilitates the process of production, distribution and consumption. Salespersons help in collecting market information, credit information, delivering goods and collecting payments. It helps in matching demand with supply because they know what the consumers want. They also inform the consumers about the introduction of new products, if any. By increasing sales, they help in the growth of business.

Long Answer Types Questions:

Q. 11.”Advertising plays an important role in business and society”. Discuss.

Ans: Role of advertising in business: Advertising helps the manufacturers in introducing new products, maintaining customers of existing products and in increasing their sales by attracting new 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.

Role of advertising in Society: The enhanced competition resulting from advertising motivate 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, better life style to the people. Advertising also works as a guide and teacher for people who do not know about many products and their multiple uses, if any. It generates employment for thousands of people who are connected with advertising world in different capacities. Not only that, advertising generates huge revenue for both print and electronic media. This helps the availability of newspapers, magazines and television programmes at affordable prices.

Q. 12. What is the right media for advertising consumer durable products? Discuss.

Ans. Following are right media for advertising consumer durable products:

(i) Newspapers: Newspaper is 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 the most suitable media for 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. It is also suitable for advertising many services like banking, insurance, transportation, etc. However, it is not suitable for advertising products which have limited number of buyers like industrial products or products used by specific professionals like engineers, doctors etc. Similarly, there are very few buyers for products like art & crafts, expensive designer jewellery, furniture etc. For such products, advertising in the newspaper is not considered appropriate.

(ii) Television: Television is an important source of entertainment. It shows varieties of programme in different channels and in different languages for 24 hours in most cases. Hence, advertising of different products can be done on different channels during the day as well as night. It has the ability to attract the attention of different segments of consumers according to their viewership. For example, products used by children such as chocolates, school bags, chewing gums, toys, play school etc. can be advertised during programmes like cartoon network, story telling etc. Similarly, household products and cosmetics can be more effectively advertised during programmes watched by women in the family. It is a medium of advertising with a lot of flexibility and reach as visuals are more effective than audio and print media. It has the added advantage of reaching out to the illiterate consumers.
(iii) Radio: Radio is the most common source of entertainment for rural masses and the people in the semi-urban areas. However, the addition of FM radio has brought back the lost importance of radio in urban areas. The radio programmes too have Advertising a lot of advertising before and during the programme. Krishi Sandesh programme(for farmers) for example has advertisements on pesticides, fertilizer, tractors etc. Advertising on radio is popular in India because a number of villages do not have electricity and television transmission facility. Hence, radio still remains a popular medium of advertising for rural people.

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