Class 12 Commerce Business Studies - Marketing

Mention one drawback of advertising.

It tends to promote a certain lack of respect for the poor.

Which concept of marketing suggest that the organisation earn profit through volume of production?

Production concept.

Long Answer Questions:-
Advertisement is a social and economical waste. Do you agree? Give reasons to support your answer.

. Though advertising is one of the most frequently used medium of promotion of goods and services, it attracts lot of criticism. The opponents of advertising say that the expenditure on advertising is a social waste as it adds to the cost, multiplies the needs of people and undermines social values. The proponents, however, argue that advertising is

very useful as it increases the reach, brings the pay unit cost of production down and adds to the growth of the economy. It is therefore, important to examine the major criticisms against advertising and see the extent to which these are true. This is taken up as follows:

1. Adds to Cost: The opponents of advertising argue that advertising unnecessarily adds to the cost of product, which is ultimately passed on to the buyers in the form of high prices. An advertisement on TV, for a few seconds, for example, costs the marketers several lakhs of rupees. Similarly an advertisement in print media say in a newspaper or a magazine costs the marketers a large amount of money. The money spent adds to the cost, which in an important factor in fixation of the price of a product. True, advertisement of a product costs lot of money but it helps to increase the demand for the product as large number of potential buyers come to know about the availability of the products, its features etc. and are persuaded to buy it. The increased demand leads to higher production, which brings with it the economies of scale. As a result, the per unit cost of production comes down as the total cost is divided by larger number of units. Thus, the expenditure on advertisement adds to the total cost but the per unit cost comes down which in fact lessens the burden of consumers rather than adding to it.

2. 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 advertisements show new life styles, which don’t find social approval. This criticism is not entirely true. Advertisement in fact helps buyers by informing them about the new products, which may be improvement over the existing products. If the buyers are not informed about these products, they may be using inefficient products. Further, the job of an advertisement is to inform. The final choice to buy or not to buy anyway rests with the buyers. They will buy if the advertised product satisfies some of their needs. They may be motivated to work harder to be able to purchase these products.

3. 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. For example, we may note similar claims of whiteness or stain removing abilities in competing brands of detergent powder or claims of whiteness of tooth or ‘feelings of freshness’ in competing brands of toothpaste that it is sometimes confusing to us as to which one to buy. The supporters of advertisement, however, argue that we are all rational human beings who make our decisions for purchase of products on factors such as price, style, size, etc. Thus the buyers can clear their confusion by analysing the information provided on the advertisements and other sources before taking a decision to purchase a product. However, this criticism cannot be completely overruled.

4. Encourages Sale of Inferior Products: Advertising does not distinguish between superior and inferior products and persuade people to purchase even the inferior products. In fact superiority and inferiority depends on the quality, which is a relative concept. The desired level of quality will depend on the economic status and preferences of the target customers. Advertisements sell products of a given quality and the buyers will buy if it suits their requirements. No advertisement should however, make false claim about the quality of a product. If a firm makes a false claims it can be prosecuted for the same.

5. Some Advertisements are in Bad Taste: Another criticism against advertising is that some advertise-ments are in bad taste. These show something which in not approved by some people say advertisements showing women dancing when not required or running after a man because he is wearing a particular suit or using a particular perfume are certainly not good. Some advertisements distort the relationship like employer employee and are quite offensive.

We have seen the views of the opponents and the proponents of advertising. There may be some chances of misuse of advertising as a tool, which can be properly safeguarded by the law or by developing a code of conduct by the advertisers, for their self regulation. However, most of the criticism against advertising are not entirely true. In the changed economic environment of globalisation, advertising is considered as an important tool of marketing. It helps a firm in effectively communicating with its target market, increasing the sale and there by reducing the per unit cost of production. It is not a social waste, rather it adds value to the social cause by giving a boost to production and generating employment.

One Mark Questions:-
What is meant by 'Production on concept' of marketing?

During the earlier days of industrial revolution, the demand for industrial goods started picking up but the number of producers were limited. As a result, the demand exceeded the supply. The focus of business activities was, therefore, on production of goods. . Therefore, greater emphasis was placed on improving the production and distribution efficiency of the firms.

What is meant by product?

Product refers to bundle of utility.

Long Answer Questions:-
What is price mix?
Explain the factors which are kept in mind while fixing the price of a product.

Price mix is the price or the value that is attached to the product which is fixed by the producer.

Factors Affecting Price Determination

There are number of factors which affect the fixation of the price of a product. Some of the important factors in this regard are discussed as below:

1. Product Cost: One of the most important factor affecting price of a product or service is its cost. This includes the cost of producing, distributing and selling the product. The cost sets the minimum level or the floor price at which the product may be sold. Generally all marketing firms strive to cover all their costs, at least in the long run. In addition, they aim at earning a margin of profit over and above the costs. In certain circumstance, for example, at the time of introducing a new product or while entering a new market, the products may be sold at a price, which does not cover all the costs. But in the long run, a firm cannot survive unless at least all its costs are covered. There are broadly three types of costs: viz., Fixed Costs, Variable Costs and Semi Variable Costs. Fixed costs are those costs, which do not vary with the level of activity of a firm say with the volume of production or sale. For example, rent of a building or salary of a sales manager remains the same whether 1000 units or 10 units are produced in a week. Those costs which vary in direct proportion with the level of activity are called variable costs. For example, the costs of raw material, labour and power are directly related with the quantity of goods produced. Let us say, if the cost of wood for manufacturing one chair comes to Rs.100 the cost of wood for 10 chairs would be Rs. 1000. Obviously, there will be no cost of wood if no chair is produced. Semi variable costs are those costs which vary with the level of activity but not in direct proportion with it. For example, compensation of a sales person may include a fixed salary of say Rs. 10,000 plus a commission of 5 per cent on sales. With an increase in the volume of sales, the total compensation will increase but not in direct proportion with the change in the volume of sale. Total Costs are the sum total of the fixed, variable and semi-variable costs for the specific level of activity, say volume of sales or quantity produced.

2. The Utility and Demand: While the product costs set the lower limits of the price, the utility provided by the product and the intensity of demand of the buyer sets the upper limit of price, which a buyer would be prepared to pay. In fact the price must reflect the interest of both the parties to the transaction—the buyer and the seller. The buyer may be ready to pay up to the point where the utility from the product is at least equal to the sacrifice made in terms of the price paid. The seller would, however, try to at least cover the costs. According to the law of demand, consumers usually purchase more units at a low price than at a high price. The price of a product is affected by the elasticity of demand of the product. The demand is said to be elastic if a relatively small change in price results in large change in the quantity demanded. Here numerically, the price elasticity is greater than one. In the case of inelastic demand, the total revenue increases when the price is increased and goes down when the price is reduced. If the demand of a product is inelastic, the firm is in a better position to fix higher prices.

3. Extent of Competition in the Market: Between the lower limit and the upper limit where would the price settle down? This is affected by the nature and the degree of competition. The price will tend to reach the upper limit in case there is lesser degree of competition while under conditions of free competition, the price will tend to be set at the lowest level. Competitors’ prices and their anticipated reactions must be considered before fixing the price of a product. Not only the price but the quality and the features of the competitive products must be examined carefully, before fixing the price.

4. Government and Legal Regulations: In order to protect the interest of public against unfair practices in the field of price fixing, Government can intervene and regulate the price of commodities. Government can declare a product as essential product and regulate its price. For example, the cost of a drug manufactured by a company having monopoly in the production of the same come to Rs 20 per strip of ten and the buyer is prepared to pay any amount for it, say Rs 200. In the absence of any competitor, the seller may be tempted to extort the maximum amount of Rs 200 for the drug and intervene to regulate the price. Usually in such a case, the Government does not allow the firms to charge such a high price and intervene to regulate the price of the drug. This can be done by the Government by declaring the drug as essential commodity and regulating its price.

5. Pricing Objectives: Pricing objectives are another important factor affecting the fixation of the price of a product or a service. Generally the objective is stated to be maximise the

profits. But there is a difference in maximising profit in the short run and in the long run. If the firm decides to maximise profits in the short run, it would tend to charge maximum price for its products. But if it is to maximise its total profit in the long run, it would opt for a lower per unit price so that it can capture larger share of the market and earn greater profits through increased sales.

6. Marketing Methods Used: Price fixation process is also affected by other elements of marketing such as distribution system, quality of salesmen employed, quality and amount of advertising, sales promotion efforts, the type of packaging, product differentiation, credit facility and customer services provided. For example, if a company provides free home delivery, it has some of flexibility in fixing prices. Similarly, uniqueness of any of the elements mentioned above gives the company a competitive freedom in fixing prices of its products.

Long Answer Questions:-
Explain all the business concepts of marketing.

Production Concept

During the earlier days of industrial revolution, the demand for industrial goods started picking up but the number of producers were limited. As a result, the demand exceeded the supply. Selling was no problem. Anybody who could produce the goods was able to sell. The focus of business activities was, therefore, on production of goods. It was believed that profits could be maximised by producing at large scale, thereby reducing the average cost of production. It was also assumed that consumers would favour those products which were widely available at an affordable price. Thus, availability and affordability of the product were considered to be the key to the success of a firm. Therefore, greater emphasis was placed on improving the production and distribution efficiency of the firms.

Product Concept

As a result of emphasis on production capacity during the earlier days, the position of supply increased over period of time. Mere availability and low price of the product could not ensure increased sale and as such the survival and growth of the firm. Thus, with the increase in the supply of the products, customers started looking for products which were superior in quality, performance and features. Therefore, the emphasis of the firms shifted from quantity of production to quality of products. The focus of business activity changed to bringing continuous improvement in the quality, incorporating new features etc. Thus, product improvement became the key to profit maximisation of a firm, under the concept of product orientation.

Selling Concept

With the passage of time, the marketing environment underwent further change. The increase in the scale of business further improved the position with respect to supply of goods, resulting in increased competition among sellers. The product quality and availability did not ensure the survival and growth of firms because of the large number of sellers selling quality products. This led to greater importance to attracting and persuading customers to buy the product. The business philosophy changed. It was assumed that the customers would not buy, or not buy enough, unless they are adequately convinced and motivated to do so. Therefore, firms must undertake aggressive selling and promotional efforts to make customers buy their products. The use of promotional techniques such as advertising, personal selling and sales promotion were considered essential for selling of products. Thus, the focus of business firms shifted to pushing the sale of products through aggressive selling techniques with a view to persuade, lure or coax the buyers to buy the products. Making sale through any means became important. It was assumed that buyers can be manipulated but what was forgotten was that in the long run what matters most is the customer satisfaction, rather than anything else.

Marketing Concept

Marketing orientation implies that focus on satisfaction of customer’s needs is the key to the success of any organisation in the market. It assumes that in the long run an organisation can achieve its objective of maximisation of profit by identifying the needs of its present and prospective buyers and satisfying them in an effective way. All the decisions in a firm are taken from the point of view of the customers. In other words, customer’s satisfaction become the focal point of all decision making in the organisation. For example, what product will be produced, with what features and at what price shall it be sold, or where shall it be made available for sale will depend on what do the customers want. If the customers want features like double door in a refrigerator or a separate provision for water cooler in it, the organisation would produce a refrigerator with these features, would price it at a level which the customers are willing to pay and so on. If all marketing decisions are taken with this prospective, selling will not be any problem. It will automatically follow. The basic role of a firm then is to ‘identify a need and fill it’. The concept implies that products ad-services are bought not merely because of their quality, packing or brand name, but because they satisfy a specific need of a customer. A pre-requisite for the success of any organisation, therefore, is to understand and respond to customer needs.

The Societal Marketing Concept

The societal marketing concept holds that the task of any organisation is to identify the needs and wants of the target market and deliver the desired satisfaction in an effective and efficient manner so that the long-term well-being of the consumers and the society is taken care of. Thus, the societal marketing concept is the extension of the marketing concept as supplemented by the concern for the long-term welfare of the society. Apart from the customer satisfaction, it pays attention to the social, ethical and ecological aspects of marketing. There are large number of such issues that need to be attended.

One Mark Questions:-
What is meant by 'selling concept' of marketing?

The increase in the scale of business further improved the position with respect to supply of goods, resulting in increased competition among sellers. The product quality and availability did not ensure the survival and growth of firms because of the large number of sellers selling quality products. It was assumed that the customers would not buy, or not buy enough, unless they are adequately convinced and motivated to do so. Therefore, firms must undertake aggressive selling and promotional efforts to make customers buy their products. The use of promotional techniques such as advertising, personal selling and sales promotion were considered essential for selling of products. Thus, the focus of business firms shifted to pushing the sale of products through aggressive selling techniques with a view to persuade, lure or coax the buyers to buy the products.

One Mark Questions:-
What is meant by Promotion?

Promotion of products and services involves informing the customers about the firm’s product, its features, etc. and persuading them to purchase these products. The four important methods of promotion include advertising, Personal Selling, Publicity and Sales Promotion.

Four Mark Question:
Define marketing and state any three functions of marketing.

Phillip Kolter has defined marketing as, “a social process by which individual groups obtain what they need and want through creating offerings and freely exchanging products and services of value with others”.

Thus, marketing is a social process where in people interact with others, in order to persuade them to act in a

particular way, say to purchase a product or a service, rather than forcing them to do so. A careful analysis of the definition shows the following important features of marketing: 1. Need and Want: The process of marketing helps individuals and groups in obtaining what they need and want. Thus, the primary reason or motivation for people to engage in the process of marketing is to satisfy some of their needs or wants. In other words, the focus of the marketing process is on satisfaction of the needs and wants of individuals and organisations. A need is a state of felt deprivation or feeling of being deprived of something. If unsatisfied, it leaves a person unhappy and uncomfortable. For example, on getting hungry, we become uncomfortable and start looking for objects that are capable of satisfying our hunger. Needs are basic to human beings and do not pertain to a particular product. Wants, on the other hand, are culturally defined objects that are potential satisfiers of needs. In other words, human needs shaped by such factors as culture, personality and religion are called wants. A basic need for food, for example, may take various forms such as want for dosa and rice for a South Indian and chapatti and vegetables for a North Indian person.

2. Creating a Market Offering: On the part of the marketers, the effort involves creation of a ‘market offering. Market offering refers to a complete offer for a product or service, having given features like size, quality, taste, etc; at a certain price; available at a given outlet or location and so on. Let us say the offer is for a cell phone, available in four different versions, on the basis of certain features such as size of memory, television viewing, internet, camera, etc., for a given price, say between Rs. 5,000 and Rs. 20,000 (depending on the model selected), available for sale at say firm’s exclusive shops in and around all metropolitan cities in the country. A good ‘market offer’ is the one which is developed after analysing the needs and preferences of the potential buyers.

3. Customer Value: The process of marketing facilitates exchange of products and services between the buyers and the sellers. The buyers, however, make buying decisions on their perceptions of the value of the product or service in satisfying their need, in relation to its cost. A product will be purchased only if it is perceived to be giving greatest benefit or value for the money. The job of a marketer, therefore, is to add to the value of the product so that the customers prefer it in relation to the competing products and decide to purchase it.

Three Mark Questions:-
Differentiate between the concepts of 'Packaging' and 'Labelling'.

Packaging refers to the act of designing and producing the container or wrapper of a product. Packaging plays a very important role in the marketing success or failure of many products, particularly the consumer non-durable products. Whereas, lables are useful in providing detailed information about the product, its contents, method of use, etc

Four Mark Question:-
State the meaning of 'Product Identification' function of packaging.

If products were sold by generic names, it would be very difficult for the marketers to distinguish their products from that of their competitors. Thus, most marketers give a name to their product, which helps in identifying and distinguishing their products from the competitors’ products. This process of giving a name or a sign or a symbol etc., to a product is called branding. Branding helps the customers in identifying the products. For example, if a person is satisfied with a particular brand of a product, say tea leaves or detergent soap, he need not make a close inspection every time, he has to buy that product. Thus, branding greatly facilitates repeat purchase of the products.

Three Mark Questions:-
Differentiate between 'Advertising' and 'Personal Selling' on any five bases.

1.Advertising is an impersonal form of communication, Personal selling is a personal form of communication.

2. Advertising involves transmission of standardised messages, i.e., same message is sent to all the customers in a market segment, in personal selling, the sales talk is adjusted keeping view customer’s background and needs.

3. Advertising is inflexible as the message can’ t be adjusted to the needs of the buyer, but Personal selling is highly flexible. as the message can be adjusted.

4. Advertising reaches masses, i.e., a large number of people can be approached, whereas only a limited number of people can be contacted because of time and cost considerations.

5. In advertising the cost per person reached is very low, but the cost per person is quite high in the case of personal selling.

Four Mark Question:-
What is the advantage of registering 'trade mark'?

Brand or part of a brand that is given legal protection is called trademark. The protection is given against its use by other firms. Thus the firm, which got its brand registered, gets the exclusive right for its use. In that case, no other firm can use such name or mark in the country.

Four Mark Question:-
State the meaning of 'Product promotion' function of packaging.

Packaging plays a very important role in the marketing success or failure of many products, particularly the

consumer non-durable products. In fact if one makes an analysis of the reasons for the success of some of the successful products in the recent past, it can be noted that packaging has played its due role. For example, it was one of the important factors in the success of products like Maggie’s Noodles, Uncle Chips or Crax wafers.

Packaging is used for promotion purposes. A startling colour scheme, photograph or typeface may be used to attract attention of the people at the point of purchase. Sometimes it may work even better than advertising. In self-service stores, this role of packaging becomes all the more important.

Five Mark Questions:-
What is Packaging? State any four functions of Packaging.

Packaging plays a very important role in the marketing success or failure of many products, particularly the

Some of the important functions are as follows: (i) Product Identification: Packaging greatly helps in identification of the products. For example, Colgate in red colour, or Ponds cream jar can be easily identified by its package.

(ii) Product Protection: Packaging protects the contents of a product rom spoilage, breakage, leakage, pilferage, damage, climatic effect, etc. This kind of protection is required during storing, distribution and transportation of the product.

(iii) Facilitating Use of the Product: The size and shape of the package should be such that it should be convenient to open, handle and use for the consumers. Cosmetics, medicines and tubes of toothpastes are good examples of this.

(iv) Product Promotion: Packaging is also used for promotion purposes. A startling colour scheme, photograph or typeface may be used to attract attention of the people at the point of purchase. Sometimes it may work even better than advertising. In self-service stores, this role of packaging becomes all the more important.

Four Mark Quesr
Define 'Brand name'.

That part of a brand, which can be spoken, is called a brand name. In other words, brand name is the verbal component of a brand. For example, Asian Paints, Safola, Maggie, Lifebuoy, Dunlop, and Uncle Chips are the brand names.

Three Mark Questions:-
Explain any three qualities of a good brand name?

Three qualities of a brand name are:

(i) The brand name should be short, easy to pronounce, spell, recognise and remember e.g., Ponds, VIP, Rin, Vim, etc.

(ii) A brand should suggest the product’s benefits and qualities. It should be appropriate to the product’s function. e.g., Rasika, Genteel, Promise, My Fair Lady and Boost.

(iii) A brand name should be distinctive e.g., Liril, Sprit, Safari, Zodiac.

Three Mark Questions:-
Explain any three functions of packaging?

Three functions of packaging are:

(i) Product Identification: Packaging greatly helps in identification of the products. For example, Colgate in red colour, or Ponds cream jar can be easily identified by its package.

(ii) Product Protection: Packaging protects the contents of a product from spoilage, breakage, leakage, pilferage, damage, climatic effect, etc. This kind of protection is required during storing, distribution and transportation of the product.

Five Mark Questions:-
An important task in the marketing of a good relates to designing the label as it provides useful and detailed information about the product.' In the light of the above statement, draw a label for a packet of 'juice' and highlight the important information to be provided on it.

Brand name: Your Good Juice

Product name: Apple/ Banana Natural Juice

Nutrition Facts: Contains all the detailed information of nutrition present in the juice

Ingredients: Specifies the contents or the ingredients used in the juice in detail.

Usage: Directions for use (shake well before use)

Expiry date: Till which date the juice is best to use

Manfacturer details: Address, contact details are provided

Other information: Batch no., barcode, MRP, Manufacturing date

Weight: Details about net weight is given

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Six Mark Question:-
Explain four important elements of marketing mix.

The marketing mix consists of various variables, which have broadly been classified into four categories, popularly known as four Ps of marketing. These are: (i) Product, (ii) Price, (iii) Place, and (iv) Promotion, and are discussed as follows:

1. Product: Product means goods or services or ‘anything of value’, which is offered to the market for exchange. For example, Hindustan Lever company offers number of consumer products like toiletries (Close-Up Toothpaste, Lifebuoy Soap, etc.), detergent powder (Surf, Wheel), food products (Refined Vegetable Oil); Tata offers Tata Steel, Trucks, Salt and a large number of other products; LG Electronics Offers Televisions, Refrigerators, Colour Monitors for Computers, etc; Amul offers number of food products (Amul Milk, Ghee, Butter, Cheese, Chocolates, etc.).

2. Price: Price is the amount of money customers have to pay to obtain the product. In case of most of the products, level of price affects the level of their demand. The marketers have not only to decide about the objectives of price setting but to analyse the factors determining the price and fix a price for the firm’s products. Decisions have also to be taken in respect of discounts to customers, traders and credit terms, etc. so that customers perceive the price to be in line with the value of the product.

3. Place: Place or Physical Distribution include activities that make firm’s products available to the target customers. Important decision areas in this respect include selection of dealers or intermediaries to reach the customers, providing support to the intermediaries (by way of discounts, promotional campaigns, etc.). The intermediaries in turn keep inventory of the firm’s products, demonstrate them to potential buyers, negotiate price with buyers, close sales and also service the products after the sale. The other decision areas relate to managing inventory, storage and warehousing and transportation of goods from the place it is produced to the place it is required by the buyers.

Six Mark Question:-
"Advertisement is unnecessary and wasteful." Do you agree?
Give reasons.

Yes, I agree. Though advertising is one of the most frequently used medium of promotion of goods and services, it attracts lot of criticism. The opponents of advertising say that the expenditure on advertising is a social waste as it adds to the cost, multiplies the needs of people and undermines social values. The proponents, however, argue that advertising is

over the existing products. If the buyers are not informed about these products, they may be using inefficient products. Further, the job of an advertisement is to inform. The final choice to buy or not to buy anyway rests with the buyers. They will buy if the advertised product satisfies some of their needs. They may be motivated to work harder to be able to purchase these products.

5. Some Advertisements are in Bad Taste: Another criticism against advertising is that some advertisements are in bad taste. These show something which in not approved by some people say advertisements showing women dancing when not required or running after a man because he is wearing a particular suit or using a particular perfume are certainly not good. Some advertisements distort the relationship like employer employee and are quite offensive.

Five Mark Questions:-
Explain the concept of personal selling and any four qualities of a good salesman?

Personal selling involves oral presentation of message in the form of conversation with one or more prospective customers for the purpose of making sales. It is a personal form of communication. Companies appoint salespersons to contact prospective buyers and create awareness about the product and develop product preferences with the aim of making sale.

Four qualities of a good salesman:

Good personality: The salesman should have a good personality meaning he should be attractive and should have a pleasing voice and ability to draw attention.
Good communication skill: Communication is an asset for the salesman. He should be able to speak freely and clearly and should have good listening skills.
Proper knowledge of products: It is important for the salesman to have proper knowledge regarding the products which he has to offer. This enables him to be confident and able to demonstrate the products easily.
Psychological skills: He should be intelligent and have a good imagination. Should be able to guess what is on people's minds, his mind should be alert and should have self confidence.

Five Mark Questions:-
What is meant by 'Brand Name'?
State any four characteristics of a good 'Brand Name'.

Characteristics of a good brand name are:

(i) The brand name should be short, easy to pronounce, spell, recognise and remember e.g., Ponds, VIP, Rin, Vim, etc.

(ii) A brand should suggest the product’s benefits and qualities. It should be appropriate to the product’s function. e.g., Rasika, Genteel, Promise, My Fair Lady and Boost.

(iii) A brand name should be distinctive e.g., Liril, Sprit, Safari, Zodiac.

(iv) The brand name should be adaptable to packing or labelling requirements, to different advertising media and to different languages.

Five Mark Questions:-
What is meant by 'Labelling'?
State any four functions of labelling.

about the quality or price, to complex graphics that are part of the package, like the ones on branded products (say the graphic of Boat and Patwar on the package of a popular brand of After Shave Lotion or of a lady offering a pen to solicit the views of the users, on the label of a detergent powder). Lables are useful in providing detailed information about the product, its contents, method of use, etc.

The various functions performed by a label are as follows:

1. Identification of the Product or Brand: The other important function performed by labels is to help in identifying the product or brand. For example, the brand name of and product, say Biscuits or Potato Chips imprinted on its package helps us to identify, from number of packages, which one is our favourite brand. Other common identification information provided by the labels include name and address of the manufacturer, net weight when packed, manufacturing date, maximum retail price and Batch number.

2. Grading of Products: Another important function performed by labels is to help grading the products into different categories. Sometimes marketers assign different grades to indicate different features or quality of the product. For example, a popular brand of Hair Conditioners comes in different categories for different hair, say for ‘normal hair’ and for other categories. Different type of tea is sold by some brands under Yellow, Red and Green Label categories.

3. Help in Promotion of Products: An important function of label is to aid in promotion of the products. A carefully designed label can attract attention and give reason to purchase. We see many product labels providing promotional messages for example, the pack of a popular Amla Hair Oil states, ‘Baalon mein Dum, Life mein Fun’. The label on the package of a brand of Detergent Powder says, ‘Keep cloth look good and your machine in top condition’. Labels play important role in sales promotional schemes launched by companies. For example the label on the package of a Shaving Cream mentions, ‘40% Extra Free’ or package of a toothpaste mentioning, ‘Free Toothbrush Inside’, or ‘Save Rs15’.

4. Providing In formation Required by Law: Another important function of labeling is to provide information required by law. For example, the statutory warning on the package of Cigarette or Pan Masala, ‘Smoking is Injurious to Health’ or ‘Chewing Tobacco is Injurious to Health’. Such information is required on processed foods, drugs and tobacco products. In case of hazardous or poisonous material, appropriate safety-warning need to be put on the label.

Six Mark Question
Explain 'Market Planning' and 'Product Designing and Development' as functions of Marketing.

Marketing Planning: Another important activity or area of work of a marketer is to develop appropriate marketing plans so that the marketing objectives of the organisation can be achieved. For example a marketer of colour TVs, having 10 per cent of the current market share in the country aims at enhancing his market share to 20 per cent, in the next three years. He will have to develop a complete marketing plan covering various important aspects including the plan for increasing the level of production, promotion of the products, etc. and specify the action programmes to achieve these objectives.

Product Designing and Development: Another important marketing activity or decision area relates to product designing and development. The design of the product contributes to making the product attractive to the target customers. A good design can improve performance of a product and also give it a competitive advantage in the market. For example, when we plan to buy any product say a motorbike, we not only see its features like cost, mileage, etc. but also the design aspects like its shape, style, etc.

Five Mark Questions:-
Give the meaning of 'price' as an element of 'marketing mix'. State any four factors which affect the price determination of a product.

Pricing occupies an important place in the marketing of goods and services by a firm. No product can be launched without a price tag or at least some guidelines for pricing. Pricing is often used as a regulator of the demand of a product. Generally, if the price of a product is increased, its demand comes down, and vice-versa. Pricing is considered to be an effective competitive weapon. In the conditions of perfect competition,

most of the firms compete with each other on the basis of this factor. It is also the single most important factor affecting the revenue and profits of a firm. Thus, most marketing firms give high importance to the fixation of price for their products and services.

Four factors of price determination are:

1. The Utility and Demand: While the product costs set the lower limits of the price, the utility provided by the product and the intensity of demand of the buyer sets the upper limit of price, which a buyer would be prepared to pay. In fact the price must reflect the interest of both the parties to the transaction—the buyer and the seller. The buyer may be ready to pay up to the point where the utility from the product is at least equal to the

sacrifice made in terms of the price paid. The seller would, however, try to at least cover the costs. According to the law of demand, consumers usually purchase more units at a low price than at a high price. The price of a product is affected by the elasticity of demand of the product. The demand is said to be elastic if a relatively small change in price results in large change in the quantity demanded. Here numerically, the price elasticity is greater than one. In the case of inelastic demand, the total revenue increases when the price is increased and goes down when the price is reduced. If the demand of a product is inelastic, the firm is in a better position to fix higher prices.

2. Extent of Competition in the Market: Between the lower limit and the upper limit where would the price settle down? This is affected by the nature and the degree of competition. The price will tend to reach the upper limit in case there is lesser degree of competition while under conditions of free competition, the price will tend to be set at the lowest level. Competitors’ prices and their anticipated reactions must be considered before fixing the price of a product. Not only the price but the quality and the features of the competitive products must be examined carefully, before fixing the price.

3. Government and Legal Regulations: In order to protect the interest of public against unfair practices in the field of price fixing, Government can intervene and regulate the price of commodities. Government can declare a product as essential product and regulate its price. For example, the cost of a drug manufactured by a company having monopoly in the production of the same come to Rs 20 per strip of ten and the buyer is prepared to pay any amount for it, say Rs 200. In the absence of any competitor, the seller may be tempted to extort the maximum amount of Rs 200 for the drug and intervene to regulate the price. Usually in such a case, the Government does not allow the firms to charge such a high price and intervene to regulate the price of the drug. This can be done by the Government by declaring the drug as essential commodity and regulating its price.

4. Pricing Objectives: Pricing objectives are another important factor affecting the fixation of the price of a product or a service. Generally the objective is stated to be maximise the

Six Mark Question:-
Explain any three factors thai are taken into consideration while taking decision of pricing the product.

There are number of factors which affect the fixation of the price of a product. Some of the important factors in this regard are discussed as below: 1. Product Cost: One of the most important factor affecting price of a product or service is its cost. This includes the cost of producing, distributing and selling the product. The cost sets the minimum level or the floor price at which the product may be sold. Generally all marketing firms strive to cover all their costs, at least in the long run. In addition, they aim at earning a margin of profit over and above the costs. In certain circumstance, for example, at the time of introducing a new product or while entering a new market, the products may be sold at a price, which does not cover all the costs. But in the long run, a firm cannot survive unless at least all its costs are covered. There are broadly three types of costs: viz., Fixed Costs, Variable Costs and Semi Variable Costs. Fixed costs are those costs, which do not vary with the level of activity of a firm say with the volume of production or sale. For example, rent of a building or salary of a sales manager remains the same whether 1000 units or 10 units are produced in a week.

Six Mark Question:-
"Expenditure on advertising is a social waste." Explain any four Masons in support of this statement.

es I agree. Though advertising is one of the most frequently used medium of promotion of goods and services, it attracts lot of criticism. The opponents of advertising say that the expenditure on advertising is a social waste as it adds to the cost, multiplies the needs of people and undermines social values. The proponents, however, argue that advertising is

Ravi, the Marketing Manager of Weaver Garments Ltd. does not allow the salesmen working under him to freely express their frank opinion and feelings regarding work related matters.

Status.

What is meant by 'Personal Selling'? Explain any three qualities of good salesman.

Personal selling involves oral presentation of the information about the product by the seller to the consumer. The following are three qualities of a good salesman.

(i) Amiable: A good salesman should be friendly and amiable in the sense that he should be able to create a pleasant environment to gain favourable attention and interest of the customers. Thus, Daksh should be patient and cordial while interacting with the buyers and must talk in accordance with the need of the customers.

(ii)Skilful: A salesman should have the required and update knowledge about the product that he wants to sell. In other words, he must know about its features,usage,warnings related to usage, availability, etc. Thus, Daksh should have thorough knowledge of the product and the company for which he represents.

(iii)Communication skills: To be a good salesman, a person should have good communication skills. That is, he must know how to strike up the right conversation with his customers in order to gain their interest. He should also be convincing and confident while answering customers queries. In other words, he should ensure that the customers are satisfied with the product by providing them with the required information.

ABC Crackers Ltd., a fire-cracker manufacturing company launched some new products on the eve of Diwali in the market, which attracted many buyers. To meet the increased demand, the company employed people from nearby village where there is a lot of unemployment. Because of the good behaviour of the management with the employees, more and more people wanted to join the company. As the products were in great demand in the market, a competitor imitated the products. The products of the competitor were not accepted by the consumers as it was a status symbol to buy the product of ABC Crackers Ltd. because of their quality.
(a)Identify and explain the product -related decision because of which consumers preferred of ABC Crackers Ltd.
(b)Also identify any two values which ABC Crackers Ltd. wanted to communicate to the society.

(a) The product related decision,due to which the consumers preferred the products of ABC Crackers Ltd.,is the 'quality and the brand name'. Due to the good and standard quality of the product provided by the company, it was able to maintain its brand name in the market. Hence, the consumers started to demand the products of ABC Crackers Ltd. because of its goodwill and reputation.

(b)Following are the values that ABC Crackers Ltd. wanted to communicate to the society:

i. Providing employment opportunities to decrease unemployment in the villages

ii. Providing good quality products to the consumers

Six Mark Question
Explain the concept of sales promotion and any four techniques of it with an example of each.

Sales promotion refers to short-term incentives, which are designed to encourage the buyers to make immediate purchase of a product or service. These include all promotional efforts other than advertising, personal selling and publicity, used by a company to boost its sales. Sales promotion activities include offering cash discounts, sales contests, free gift offers, and free sample distribution. Sales promotion is usually undertaken to supplement other promotional efforts such as advertising and personal selling.

Four techniques of sales promotion are:

1. Rebate: Offering products at special prices, to clear off excess inventory. Example, a car manufacturer’s offer to sell a particular brand of car at a discount of Rs 10,000, for a limited period.

2. Discount: Offering products at less than list price. Example, a shoe company’s offer of ‘Discount Up to 50%’ or a shirt marketer’s offer of ‘50+40% Discount’.

3. Refunds: Refunding a part of price paid by customer on some proof of purchase, say on return of empty foils or wrapper. This is commonly used by food product companies, to boost their sales.

4. Product Combinations: Offering another product as gift along with the purchase of a product, say offer of a pack of ½ kg of rice with the purchase of a bag of Aata (wheat flour), or ‘Get 128 KB Memory Card Free with a Digicam’ or Buy a TV of 25+ and Get a Vacuum Cleaner Free’ or ‘100 Gm Bottle of Sauce Free With 1 kg Detergent.’

'Through advertising is one of the most frequently used media of promotion of goods and services, yet it attracts lot of objections.'Explain any four such objections.

Some of the objections of advertising are given below:

(i)Higher cost: Advertisement expenses add to the cost of the company.The companies in turn, pass this increased cost to the consumers in a form of higher prices. However, the supporters of advertisement argue that advertisement in fact bring down the per unit cost of production.This is because through advertisement greater number of customers can be attracted towards the product which in turn implies an increases in the demand for the product.In response to the increased demand, the manufacturers increase production,the per unit cost of the production comes down.Thus, it can be said, that even through advertisement expenses add to the cost,this increase in cost can be compensated through fall in the per unit cost due to increased demand and production.

(ii) Weakness social values: One of the major criticisms to advertising is that it weakens social values and instead promotes materialism in the society. Advertisement attracts customers feel dissatisfied about what they currently have. In the process,often they end up buying what they don't even required . However, such a process of discontentment and purchase of new products is never ending and materialism increase.

On the other hand, it is argued that advertisements just inform the buyers about the availability of various products and the final decision to purchase the products rests with the consumers. Advertisement increases the knowledge of the customers and keeps them informed.

(iii)Promotes inferior goods: It is argued that products of both superior quality as well as inferior quality are advertised. Through advertisement,demand for inferior can also be induced. However, such a claim is only partially true. This is because quality is a relative concept. What is inferior to one consumers can be superior to another.Advertisements promote all kinds of products and the consumers purchase them if it suits his/her requirements.

(iv) Creates confusion: It is argued that a large number of advertisement on similar products confuse the customer .For example,advertisement of different hair oils claim that they help in the growth of healthy and long hair. With numerous advertisements , the consumers gets confused as to the product of which brand should be purchased.

On the contrary,supporters of advertisements do not agree with this criticism ans argue that advertisements provide a choice to the consumers.The consumers can make a rational choice for themselves after analysing various such as price, style,quality ,etc.

Six Mark Question
Explain the following functions of marketing:
(a) Gathering and analysing market information
(b) Marketing planning
(c) Standardisation and grading.

(a) Gathering and Analysing Market Information: One of the important functions 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. This is important for making an analysis of the available opportunities and threats as well as strengths and weaknesses of the organisation and help in deciding what opportunities can best be pursued by it. For example, rapid growth is predicted in several areas in the Indian economy, say in the use of internet, market for Cell phones and several other areas. Which of these areas a particular organisation should enter or in which area should it expand requires a careful scanning of the strengths and, weaknesses of the organisation, which is done with the help of careful market analysis.

(b) Marketing Planning: Another important activity or area of work of a marketer is to develop appropriate marketing plans so that the marketing objectives of the organisation can be achieved. For example a marketer of colour TVs, having 10 per cent of the current market share in the country aims at enhancing his market share to 20 per cent, in the next three years. He will have to develop a complete marketing plan covering various important aspects including the plan for increasing the level of production, promotion of the products, etc. and specify the action programmes to achieve these objectives.

(c) Standardisation and Grading: Standardisation refers to producing goods of predetermined specifications, which helps in achieving uniformity and

consistency in the output. Standardisation ensures the buyers that goods conform to the predetermined standards of quality, price and packaging and reduces the need for inspection, testing and evaluation of the products. Grading is the process of classification of products into different groups, on the basis of some of its important characteristics such as quality, size, etc. Grading is particularly necessary for products which are not produced according to predetermined specifications, such as in the case of agricultural products, say wheat, oranges, etc. Grading ensures that goods belong to a particular quality and helps in realising higher prices for high quality output.

A company was marketing 'water purifiers' which were very popular due to their quality and after sales services provided to the customers. The company was a leading company in the market and earning huge profit Because of huge profits the company ignored the after sales services. As a result its relations with the customers got spoiled and the image of the company was damaged in the public. Top Management become concerned when the profits for the current quarter fell steeply. On analysis it was revealed that ignoring the after sales services was it's reason. Therefore the company took all possible measures to protect and promote it's favourable image in the eyes of the public. As a result the goodwill of the company improved in the society.
(a) Name and state the communication tool used by the marketer in the above case to improve its image.
(b) Also explain role of the tool as identified in part (a).

(a) The communication tool used by the marketer to improve its image is 'Public Relation'. It refers to the activities undertaken by an organisation to promote and protect the image of an organisation or its product. It aims at strengthening the relations of the organisation with its customers, shareholders, employees, investors, etc.
(b) The following points highlight the role of public relations.
1. Building public relations helps an organisation to function smoothly and achieve Me desired objectives.
2. Public relations helps the organisation in building customer interest in its established products. This further helps Me organisation in building a customer base for this new products.
3. It helps an organisation in building a positive image for its products. Moreover, an organisation facing negative publicity can use public relations to improve its image and reputation.
4. Public relations supplements promotion through advertising.

Explain the following functions of marketing:
(i)Product designing and development
(ii)Standardization and Grading
(iii)Customers support services
(iv)Pricing of products

The following are the functions of marketing:

(i)Designing and developing the product: The products should bear in mind that the design of a product acts as a vital factor for attracting the customers to the product. A good design helps in attracting a large number of customers to the product. Thus, the producers should pay great attention towards the design and development of the product.

(ii)Standardising and grading the product: Standardisation implies the production of goods with certain specific qualities such as durability,safety and utility so that a uniformity is maintained in the output.On the other hand,grading implies the classification of the product as per certain characteristics such as size and quality.

(iii)Customer support services: It involves handing compliants and feedback of the customers. This is done by developing customer care services such as credit , maintenence or technical services.

(iv)Pricing of the product: Price refers to the amount of money that is to be paid by the consumers for purchasing the commodity.Pricing a product is an important decision as it affects the demand of the product and thereby, the profit of a business. Thus, it is imperative for the producers to judiciously quote the price.

Differentiate between 'Capital Market' and 'Money Market' on the basis of the following:
(i)Meaning
(ii)Liquidity
(iii)Safety
(iv)Expected Return
(v)Duration

Basis	Capital Market	Money Market
Safety	Securities involve a greater risk in terms of repayment of the principal amount.	Securities are less risky due to the shorter duration of the instruments.
Expected Return	The expected return are higher due to the possibility of capital gains in the long term and regular dividends or bonus.	The expected returns are lower due to the shorter duration of the instruments.
Meaning	The capital market refers to the market or the institutional facilities through which long-term funds are raised and invested.	The money market refers to the market where trading in short-term securities of maturity periods varying from one day to a maximum of one year takes place.
Liquidity	Capital market securities are liquid in nature as they are tradable on stock exchanges, but they are less liquid in comparison to money market securities.	The securities traded are highly liquid in nature. DFHI discounts money market securities and offers a ready market for them.
Duration	Securities traded are of medium term and long term wherein the maturity period is more than one year.	Securities traded are of short term only wherein the maturity period can vary from one day to a maximum of one year.

Distinguish Between Primary market and Secondary Market

No.	basis is	Primary Market	Secondary Market
1	Meaning	A security market in which new issue of securities i.e.fresh or newly issued fresh shares, or debentures are sold by the newly established or existing. company is called Primary Market.	A Security market in which second hand or existing securities are purchased and sold repeatedly is called secondary Market.
2	Functions	Its main function is to raise long-term funds through fresh issue of securities. So only buying of securities takes place securities can't be sold here by investors.	Its main function is to make available continuous and ready market for existing long-term securities. In this market, both buying and selling of securities by the investors takes place.
3	Participants	The main participants of this market are financial institutions, mutual funds.underwriters, individual investors etc.	The main participants of secondary market are the participants of primary market,stock broker and the members of stock exchanges.
4	Listing Requirements	In case of primary market,listing of securities are not required.	In the case of secondary market,listing of securities are required for their authorised trading.

Explain the concept of Societal marketing.

The societal marketing concept holds that the task of any organization is to identify the needs and wants of the target market and deliver the desired satisfaction in an effective and efficient manner so that the long-term well-being of the consumers and society is taken care of.

What do you mean by labelling?

Labelling refers to designing and developing the label to be put on the package. The label may vary from a simple tag to complex graphics.

What is a Primary Package?

Primary Package refers to the product immediate container. In some cases, it is kept till the consumer is ready to use the product (e.g., plastic packet for socks); whereas in others, it is kept throughout the entire life of the product (e.g., a toothpaste tube, etc.).

What are durable goods?

Those tangible consumer products normally survive many years, for example, refrigerators, radio, bicycles, sewing machines, etc. It is also known as hard goods and consumer durables.

What is a brand?

A brand is a name, term, sign, symbol, design, or some combination of them, used to identify the products (goods or services) of one seller or group of sellers and to differentiate them from those of the competitors. For example, some of the common brands are Bata, Lifebuoy, Dunlop, and Parker.

What are non-durable goods?

The consumer products which are normally consumed in one or few uses are called non-durable products. These products generally command a small margin, should be made available in many locations, and need to be heavily advertised.

Define 'Price' of a product.

When a product is bought, some money is paid for it. This money represents the sum of values that consumers exchange for the benefit of having or using the product and is referred to as the price of the product.

Define discount.

Discount means offering products at less than the list price. For example, a shoe company offer of discount up to 50%, or shirt marketers offer a 50+40% Discount.

What are the components of physical distribution?

Following are the components in the physical distribution process:
1. Order Processing
2. Transportation
3. Warehousing
4. Inventory Control

What are convenience products?

The consumer products, which are purchased frequently, immediately, and with the least time and effort are referred to as convenience goods. Examples- cigarettes, ice creams, medicines, newspapers, stationery items toothpaste, etc.

Define public relations.

Public relations involve a variety of programs designed to promote or protect a company's image and its individual products in the eyes of the public. It is a method/practice adopted by companies to manage and control information going to the public.

What is brand equity?

Brand equity refers to the value of a brand. It is determined by perception of the consumers of the brand. It can be positive or negative. If consumers think highly of a brand, it has positive brand equity. However, if the brand consistently under-delivers, fails to live up to consumer expectations, and generates negative word of mouth, it has negative brand equity. It is also known as Brand Reputation.

What are producers markets? What are consumers markets?

Producer markets are those markets where producer goods i.e. capital goods are bought and sold against money.

Consumer markets are those markets where consumer goods i.e. utility goods are bought and sold against money.

The activities that pursue customers to buy the products come under the scope of _______ mix.

Promotional mix under marketing mix includes the activities that pursue customers to buy the products through extensive marketing techniques or sometimes personal selling. A promotional mix gives various tools and strategies as to how a product can be promoted. Advertising personal selling, sales promotion, publicity, and public relations are the main tools of promoting a company's product and making customers aware of the company's offers.

The place where sellers and buyers meet to sell and buy the goods is generally called __________.

The place where sellers and buyers meet to sell and buy goods is generally called market which facilitates the exchange mechanism of goods and services.

How are market activities different from non-market activities?

Differences between market activities and non-market activities:

Market Activities	Non-market Activities
1. Market activities involve remuneration to any one who performs, i.e., activity performed for pay or profit.	1. Non-metal activities are the production for self-consumption.
2. These include production of goods or services including government service.	2. These can be consumption and processing of primary product and own account production of fixed assets.

The markets that are regulated by statutory regulations is called ________ Markets.

Regulated market or controlled market are the market that are regulated by statutory regulations by any government body,

Mention the four types of markets classified under the basis of area.

The four types of markets classified under the basis of area are:

1. Local market

2. National market

3. Global market

4. Regional market

Storing of goods between the time of production and the time of sale is facilitated by ________.

Storing of goods between the time of production and the time of sale is facilitated by the warehousing facility that stores the good an keep it safe till the time of sale.

The assurance of the standard quality of product to consumers is assured by __________ of goods.

The assurance of the standard quality of product to consumers is assured by Quality Assurance (QA) of the product which prevents all types of defects from the manufactured products.

What are the forces of marketing mix? Explain any one force?

Marketing Mix refers to the ingredients or the tools or the variables which the marketer mixes in order to interact with a particular market. These forces of marketing mix are:

1. Product Mix

2. Price Mix

3. Place Mix

4. Promotion mix

Promotion mix : Promoting mix under marketing mix includes the activities that pursue customers to buy the products through extensive marketing techniques or sometimes personal selling.

What is the importance of marketing? How does marketing help in improvement of standard of living?

The importance of marketing are that it provides customers with customer-oriented products at a very reasonable rate.

Therefore, Marketing plays a very vital role in improvement of standard of living by supply the goods which are needed by the people of the society and that provides customer satisfaction.

What do you mean by marketing mix?

Marketing Mix refers to the ingredients or the tools or the variables which the marketer mixes in order to interact with a particular market. These variables include:

1. Product Mix

2. Price Mix

3. Place Mix

4. Promotion mix

Mansi took her niece, Ridhima, for shopping to 'Mega Stores' to buy her a bag for birthday. She was delighted when on payment of the bag she got a pencil box along with the bag free of cost.

Identify the technique of sales promotion used by the company.

The technique of sales promotion being used by the company is 'Product Combination'.

Hemant, Guddu and Toshita were friends from college days and presently they were doing different kinds of business. They regularly meet and discuss their business ideas, and exchange notes on customer satisfaction, marketing efforts, product designing, selling techniques, social concerns etc.
In one of such meetings, Hemant drew the attention of Guddu and Toshita towards the exploitation of consumers. He told that most of the sellers were exploiting the consumers in various ways and were not paying attention towards the social, ethical and ecological aspects of marketing, whereas he was not doing so. Guddu told that they were under pressure to satisfy the consumers but stated that the consumers would not buy or not buy enough unless they were adequately convinced and motivated for the same.
Toshita stressed that a company cannot achieve its objectives without satisfying the needs of the customers. It was the duty of the businessmen to keep consumer satisfaction in mind, because business is run by the resources made available by the society. She further stated that she herself was taking into consideration the needs of the customers.
Identify the various types of thinking that guided Hemant, Guddu and Toshita in the marketing efforts of their business. Also, state one more feature each of the various types of thinking identified that is not given in the above para.

The concept of thinking followed by Hemant is the Societal Marketing Concept. According to this concept, organisations should not only identify the immediate needs of the target market, but also aim at long-term well-being and interests of the consumers.
Feature: The emphasis of this thinking, is that the organisation should pay due consideration to social and environmental problems such as pollution, deforestation, population explosion and inflation.
The concept of thinking followed by Guddu is the Selling concept. According to this concept, a consumer would purchase the product only when he is sufficiently convinced regarding the features, quality, etc., of the product.
Feature: This thinking emphasizes that firms must focus on rigorous selling and promotion techniques so as to increase the sale of their product.
The concept of thinking followed by Toshita is Marketing concept. The marketing concept believes that customer satisfaction plays a vital role in the long-run success of any organisation. Herein, the organisations must aim towards appropriately identifying such needs of customers and satisfying them in an effective manner.
Feature: This thinking emphasizes that a firm should not just independently work towards customer satisfaction, but also aim at satisfying the customers better than its competitors.

'Buy one get one free' is printed on the label of the package of a mosquito repellent.
State the labelling function being performed by this statement.

'Buy one get one free' is a promotion labelling which is used to attract customers and assists in the promotion of a certain product. Right labelling and position of the promotional offer helps in sale of the product

Identify the concept.

The concept discussed above is pricing of the product.
It refers to the process of determining the price of a product. Price of a product refers to the amount of money that the customer has to pay to obtain a product from the market. Pricing is considered as a regulatior of demand of a product, because , when the price of the product, because, when the price of the product is increased, demand falls, and vice-versa.

Under Perfect Competition, most firms compete with each other on the basis of this factor. Therefore, firms give great importance to the fixation of price for their goods and services.

Why is the understanding of 'Marketing Management Philosophies' important?

The concept of Marketing Management Philosophies is essential as it gives the concepts of marketing like production of the product, superior quality product, promotional strategies enhances sale of the product, to fulfill customer needs and satisfaction, and also welfare of the customer and society as whole.

Explain briefly any four factors discussed in the given case related to the concept so identified.

Four factors affecting price determination are:
(i) Production cost: The price should recover all costs viz. fixed costs, variable costs and semi variable costs apart from obviously including a fair return for undertaking the marketing effort and risk.
(ii) Utility and demand: While determining the price of any product, the utility provided by it and the intensity of demand should not be ignored. If buyer is a\satisfied that the given product meets his/her requirement, he would also be ready to pay the cost and reasonable margin to the producer.
(iii) Extent of competition in the market: In case of monopoly, a firm can enjoy complete freedom in fixing prices. However if it is facing competition, it should consider the prices charged by the competitors also.
(iv) Marketing methods used: Pricing of products also gets affects by the elements of marketing such as amount spent on advertisement, type of packaging, discounting policies, credit or finance facilities, etc.

Mention the drawbacks of advertising.

Advertising shows certain drawbacks which are as follow :
(a) We are citizens of a democratic country. It means we all are equal. But advertising always focuses on the lives of the rich and influential person. It tends to promote a certain lack of respect for the poor. They are not the faces we most often see in advertisement and therefore we cease to think about them.
(b) Advertising uses the personal emotions of the people. Those who are capable to buy certain brands feel exalted but there are many who cannot afford to buy them. The personal emotion of these people is hurt badly.
(c) Advertising promotes the sale of packaged products. This negatively affects the sale of things that do not come in packets. This forces many people out of their livelihoods.
(d) Advertising by focusing on the lives of the rich and famous helps us forget about the issue of poverty, discrimination, and dignity, all of which are central to the functioning of equality in a democracy.

SUBJECT TESTING-I (Direct Questions)
Distinguish Between:
(2) Primary market and Secondary market.

Primary market	Secondary market
(i) Meaning: It is a market where new securities for the first time are flowed by issuing companies themselves.	It is place where already issued and outstanding shares are bought and sold repeatedly.
(ii) Issue of Prospectus: Prospectus is issued to invite public to subscribe to the issue of shares.	Prospectus is not issued to the public.
(iii) Type of Securities: Fresh issue of shares takes place.	Already issued (existing securities) and outstanding shares are bought and sold.
(iv) Listing of Shares: New issue of shares may not be listed in stock exchange.	Company needs to be listed on stock exchange for the purpose of trading through stock exchange.
(v) Relation with Investors: Direct contact with the investors at large is established by the companies.	There may not be direct contact with the investors who want to buy or sell the existing securities.

What do advertisement do?

They attract people's attention to their products.

What is labelling? Explain four advantages of labelling.

Labelling Means putting identification marks on the package. It provides information like- name of the product, name of the manufacturer, contents of product, expiry and manufacturing date, general instructions etc.

1. Helps is describing the product and specify its content.

2. It gives identification to the product.

3. Helps in grading the product.

4. Helps in promotion of the product or services.

Write short notes on:
Publicity.

Publicity as a marketing approach refers to the gaining of public visibility and awareness for a product or services of the organisation via the media activities.The PR performs the strategic management function that helps an organization to communicate and maintain communication with the public.

Explain the following Principles of management, as advocated by Henry Fayol:
Stability of tenure

Stability of tenure of Personnel refers to no frequent termination and transfer. According to this principle, the management should provide the feeling of job security among the employees because with the feeling of insecurity they will not contribute their maximum in the organisation.

Answer the following question:
Distinguish between marketing and selling.

Marketing	Selling
Selling focuses on the need of seller	Marketing focuses on the need of customers
Main objective is to maximize the profit of the organisation	Main objective is to earn optimum profit with customer satisfaction
It starts with the production and ends with the sale.	It starts before production and continues even after sale.

Answer briefly:
Mention two physical functions of marketing.

Two physical functions of marketing are:-

1. Customer support services after the sale of goods and services.

2. Transportation, storage and warehousing of the consumer products.

Explain the need for consumer protection.

The need for consumer protection are:

1. Consumer ignorance is highly seen in the market due to which there is a need for consumer protection.

2. Unorganized consumers- Consumers are very unorganized so there is a need for a universal forum to organize these consumers all over the world.

3. Widespread Exploitation of Consumers: Consumers are the king pin of the market but they are widely exploited in the market due to which there should be a legal organisation that regulates the consumers and sellers actions in the market.

Answer briefly:
State any two features of advertising.

Advertising refers to the paid form of non-personal presentation and promotion of idea, goods or services by an identified sponsor. Two features of advertising are:-

1. Paid form- The sponsor has to bear a cost to communicate with the customers.

2. Impersonality - There is no face to face contact between the two parties. It creates a monologue and not a dialogue.

Answer the question briefly.
Mention two types of markets, on the basis of the position of buyers and sellers.

Two types of markets on the basis of the position of buyers and sellers in the market are:-

1. Perfectly competitive market where there is huge amount of buyers and sellers.

2. Oligopoly market where there are few number of big sellers and a good amount of buyers.

Give three points of difference between a product and a service.

Point of difference	Product	Service
Nature	Physical or tangible in nature.	Invisible or intangible in nature.
Transmission	Can be transmitted anywhere in the world.	Cannot be transmitted or transported.
Provider	Can be separated from the provider.	Cannot be separated from the provider.

Discuss the features of good packaging.

The features of a good packaging are:-

1. The package should be very attractive and convenient.

2. The package should be very communicative and economical.

3. The package should protect the product at the same time it should be environment friendly.

With regard to promotion, explain the following:
Open promotion

Open promotion refers to a sales promotion which is widely advertised and is available to all who wish to enter the market to buy such products and services.

Explain any three disadvantages of borrowing funds from specialised financial institutions.

Any three disadvantages of borrowing funds from specialized financial institution are:-

1. They usually charge high rate of interest.

2. They only provide long terms loans and no short or medium term loans.

3. They are sometimes fraud which results in huge loss for the company.

Explain the following Principles of management as advocated by Henry Fayol:-
Discipline

Discipline refers to general rules and regulations for systematic in the organisation. Henry Fayol insisted discipline for both superior as well as subordinates towards each other as well as towards the organisation.

Write a word or a phrase or term which can substitute the following statement:
Getting products of better quality is the basic right of this group of society.

Product quality means to incorporate features that have a capacity to meet consumer needs (wants) and gives customer satisfaction by improving products (goods) and making them free from any deficiencies or defects.

Improving the quality of products and services.

Create a long-term plan for quality improvement, break it in to small steps, and then make changes to achieve goals of each step.
Give supreme priority of quality in every plans and procedures.
Talk often with your clients.

Quality is critical to satisfying your customers and retaining their loyalty so they continue to buy from you in the future. Quality products make an important contribution to long-term revenue and profitability. They also enable you to charge and maintain higher prices. Right to be informed. Means right to be informed about the quality, quantity, potency, purity, standard and price of goods so as to protect the consumer against unfair trade practices. Consumer should insist on getting all the information about the product or service before making a choice or a decision.

The Consumer Bill of Rights pushed for by John F. Kennedy established four basic rights; the right to safety, the right to be informed, the right to choose, and the right to be heard.

What is Branding? Give any three advantages of branding to the marketers.

Branding refers to giving identification to the product in the form of a name, symbol or design etc which makes the product superior than the competitor's product in the market. any three advantages of branding are:-

1. Helps in product differentiation.

2. Helps in advertisement of the product.

3. Ensures quality of the product.

With regard to promotion, explain the following:
Closed promotion

A closed promotion is a type of sales promotion strategy in which the offer is applicable only for a certain specific group of consumers.

Explain any two factors affecting price of a product.

Factors affecting price of a product: (Any two factors)
(i) Product Cost
(ii) Utility and Demand
(iii) Extent of competition in the market
(iv) Government and Legal Regulations
(v) Pricing Objectives
(vi) Marketing Methods used

Distinguish between marketing and selling on the basis of objective.

Main objective of selling is to maximise sale and profit. Main objective of marketing is to earn optimum profit with customer satisfaction.

Name four elements of Marketing Mix.

Four elements of marketing mix are:
(i) Product, (ii) Price, (iii) Place, (iv) Promotion.

Name two shopping products.

Shopping goods are: car, furniture, garments.

What do you mean by marketing mix?

Marketing mix refers to the four tools or ingredients which a marketer mixes in order to interact with market.

Give two examples of convenience product.

(i) Bread, (ii) Pen.

What is the focus of product concept?

The main focus of product concept is maintaining high quality of product.

Why is packing called silent salesman?

Packing is considered as silent salesman because like a salesman attractive packing induces people to buy the products.

Give any two benefits of branding to marketer.

(i) Product differentiation, (ii) Helps in advertising.

What is meant by Product Mix?

It refers to assortment of products a firm is manufacturing. It also means all the decisions related to product e.g., designing of product, packing of product, size of producIt refers to assortment of products a firm is manufacturing.

What is meant by Personal Selling?

Selling the goods through face to face interaction between salesman and buyer is known as personal selling.

What is meant by Publicity?

It refers to non-paid form of impersonal communication by seller.

'They don't sell what they can make, but they make what they can sell'. Name the philosophy to which this statement is related?

It is related to marketing concept.

What is meant by Place Mix?

It refers to all the decisions related to physical distribution of goods and services.

What is meant by Promotion Mix?

It refers to all the decisions related to increase in sale of goods and services, e.g., advertisement, publicity etc.

What is meant by Price Mix?

It refers to all the decisions related to price of a product.

What is meant by Sales Promotion?

It refers to incentives offered to customers and traders to increase the sale. e.g., discount, rebate, etc.

Name any two product related factors which help in deciding the distribution channel.

(i) Value of product, (ii) Product complexity.

Name any two techniques of sales promotion.

(i) Discount, (ii) Premiums.

Name any two factors which help in fixing the price of a product.

(i) Product cost, (ii) Competition.

Ronit Raj, a marketing manager is a patient of diabetes for which he takes medicines regularly. One day, on his tour to Patna, he met with an accident and was hospitalized. Due to doctor's negligence, a delicate nerve of his right leg was cut rendering him crippled throughout his life
Identify the consumer tight that has been violated by the doctors under the Consumer Protection Act, 1986, the above situation.

Right to safety

'Blindly following the goal of customer satisfaction has led to many social and environmental ills'.
Do you agree? What should be done?

The marketing concept leads to customer satisfaction only and does not give any importance to the fact that it might create social and environmental ills. For example, if a drug producing company engage in selling drugs only for the satisfaction of the customers it will lead to a social ill if that drug causes harm through over dosage or abuse. Hence, any activity which satisfies human needs but is detrimental to the interests of the society at large cannot be justified. Hence, The business orientation should, therefore, not be short sighted to serve only consumers’ needs. It should also consider large issues of long-term social welfare, as illustrated above.

These days, the development of a country is also judged by its system of transferring finance from the sector where it is in surplus to the sector where it is needed most. To give strength to the economy, SEBI is undertaking measures to develop the capital market. In addition to this there is another market in which unsecured and short-term debt instruments are actively traded everyday. These markets together help the savers and investors in directing the available funds into their most productive investment opportunity.
(a) Name the function being performed by the market in the above case.
(b) Also, explain briefly three other functions performed by this market.

Mobilisation of savings and channeling them into the most productive uses/ Allocative function.
Other functions performed by Financial market are:
(i) Facilitating price determination/ discovery.
(ii) Providing liquidity to financial assets.
(iii) Reducing the cost of transactions.

You are a marketing manager of ABC company. You are asked to persuade the customer and make customers buy the products.
Explain the variety of promotion tools you will consider to use to achieve this objective?

The promotional tools which might be used are:

1. Discount: Offering products at less than list price. Example, a shoe

company’s offer of ‘Discount Up to 50%’

2. Refunds: Refunding a part of price paid by customer on some proof of

purchase, say on return of empty foils or wrapper. This is commonly used by food product companies, to boost their sales.

3. Product Combinations: Offering another product as gift along with the

purchase of a product, say offer of a pack of ½ kg of rice with the purchase of a bag of Aata (wheat flour), or ‘Get 128 KB Memory Card Free with a Digicam’ or Buy a TV of 25+ and Get a Vacuum Cleaner Free’ or ‘100 Gm Bottle of Sauce Free With 1 kg Detergent.’

4. Quantity Gift: Offering extra quantity of the product commonly used by marketer of toiletry products.

For example, a shaving cream’s offer of ‘40% Extra’ or 'Buy 2 Get 1 Free’ offer of a marketer of shirts.

5. Sampling: Offer of free sample of a product, say a detergent powder or tooth paste to potential customers at the time of launch of a new brand.

6. Contests: Competitive events involving application of skills or luck, say solving a quiz or answering some questions.

7. 6. Instant Draws and Assigned Gift: For example, ‘Scratch a Card’ and instantly win a Refrigerator, Car, T-shirt, Computer, with the purchase of a TV.

Sunita took her niece, Aishwarya for shopping to 'Benetton' to buy her a dress on the occasion of her birthday. She was delighted when on payment for the dress she got a discount voucher to get 20% off for a meal of 500 or above at a famous eating joint. Identify the technique of sales promotion used by the company in the above situation.

Usable benefit.

'It pays to advertise'. Do you agree with this statement?
Give reasons.

The statement means that advertisements bear fruit for the company's sales of what is being promoted. It is a costly process, but with the right kind of advertisements, the companies can gain a lot. Following are the reasons:

Mass Reach: Advertising is a medium through which a large number of people can be reached over a vast geographical area. For example, an advertisement message placed in a national daily reaches lakhs of its subscribers.
Enhancing Customer Satisfaction and Confidence: Advertising creates confidence amongst prospective buyers as they feel more comfortable and assured about the product quality and hence feel more satisfied.
Expressiveness: With the developments in art, computer designs, and graphics, advertising has developed into one of the most forceful medium of communication. With the special effects that can be created, even simple products and messages can look very attractive.
Economy: Advertising is a very economical mode of communication if large number of people are to be reached. Because of its wide reach, the overall cost of advertising gets spread over numerous communication links established. As a result the per-unit cost of reach comes low.

You have invented a new device to detect impurities of petrol. Which two advertising media would you use and why?

Two methods that can be adopted are:

Newspaper advertising: It reaches to more customers in a faster and more reliable way, it is cost-effective and informative
Direct selling: It helps in targeting the customers with the need of such a product as it is done at the point of sale such as petrol pumps. The device can be demonstrated to the target group for easier understanding.

'Bending the customer according to the product' and 'Developing the product according to the customer needs' are the two important concepts of marketing management. Identify the concepts and differentiate between the two.

The concepts are:
(i) Selling, (ii) Marketing.

Mansi took her niece, Ridhima, for shopping to 'Mega Stores' to buy her a bag for her birthday. She was delighted when on payment of the bag she got a pencil box along with the bag free of cost. Identify the technique of sales promotion used by the company.

Product Combination

"An important task in the marketing of goods relates to designing the label as it provides useful and detailed information about the products". In the light of this statement, draw a label for "Tea" and highlight the important information to be provided on it.

Student must give information such as - MRP, Date of manufacturing, Date of expiry, Brand name, Batch no. Contents, etc. on Label.

Hemant, Guddu and Toshita were Mends from college days and presently, they were doing different kinds of business. They regularly meet and discuss their business ideas, and exchange notes on customer satisfaction, marketing efforts, product designing, selling techniques, social concerns, etc.
In one of such meetings, Hemant drew the attention of Guddu and Toshita towards the exploitation of consumers. He told that most of the sellers were exploiting the consumers in various ways and were not paying attention towards the social, ethical and ecological aspects of marketing, whereas he was not doing, so. Guddu told that they were under pressure to satisfy the consumers but stated that the consumers would not buy or not buy enough unless they were adequately convinced and motivated for the same.
Toshita stressed that a company cannot achieve its objectives without satisfying the needs of the customers. It was the duty of the businessmen to keep consumer satisfaction in mind, because business is run by the resources made available by the society. She further stated that he herself was taking into consideration the needs of the customers.
Identify the various types of thinking that guided Hemant, Guddu and Toshita in the marketing efforts of their business. Also, state one more feature each of the various types of thinking identified that is not given in the above paragraph.

Various types of thinking that guided the marketing efforts were:
Hemant
Societal Marketing concept
Feature of Societal marketing concept: (Any one) -
(i) It takes care of long term well being of the consumers as well as the society.
(ii) It uses integrated marketing as a means to achieve the objective.
(iii) Its objective is to earn profits through customer satisfaction and social welfare.
(iv) The marketing efforts start from the identification of needs of the target market and the society.
Guddu
Selling concept
Feature of Selling concept: (Any one)
(i) It uses aggressive selling and promotional techniques like advertising, personal selling and sales promotion to achieve the objective.
(ii) It involves pushing the sale of existing products.
(iii) Its objective is to earn profits through increased volume of sales.
(iv) The marketing efforts start after the product is produced in the factory.
Toshita
Marketing concept
Feature of Marketing concept (Any one)
(i) It involves development of products for satisfying needs of the target market better than the competitors.
(ii) Its focus is on satisfaction of customers needs.
(iii) It uses integrated marketing as a means to achieve the objective.
(iv) The marketing efforts start from the identification of needs of the target market.

'Time Line' watch manufacturing company is a renowned company marketing watches. It performs various activities like, market analysis, product designing or merchandising, packaging, warehousing, branding, pricing, promotion and selling. The company maintains good customer relations through various follow up activities. This helps the company in procuring repeat sales orders.
(a) Name the concept related to the activities mentioned in the above paragraph.
(b) Explain any two features of the concept identified in part (a).

(a) Marketing

(b) Features of marketing:
(1) Need and wants
(2) Creating market offering
(3) Customer value
(4) Exchange mechanism

Shyam bought a pain relieving ointment after seeing it being displayed in the chemist's shop. The ointment tube was packed in a cardboard box. Identify the different levels of packaging of the pain relieving medicine, when it was purchased by Shyam. Also state the functions of packaging.

Different levels of packaging of the pain relieving medicine are:
Ointment tube: Primary packaging Cardboard box: Secondary packaging (If an examinee has not specified 'ointment tube' as the primary package and 'cardboard box' as the secondary package 1/2 mark per identification may be deducted)
Functions of packaging: (Any three)
(i) It helps in product identification.
(ii) It helps in protection of the product from spoilage, breakage, leakage damage etc.
(iii) It facilitates use of the product to the consumers through appropriate sizes and shapes.
(iv) It helps in promotion of the product as a good package attracts the attention of the people at the time of purchase.

Good Living Ltd. manufactures mosquito repellent tablets. These tablets are packed in strips of 12 tablets each. Each of these strips are packed in a cardboard box, 48 such boxes are then placed in a big corrugated box and delivered to various retailers for sale. State the purpose of packaging the tablets in a corrugated box.

The packaging of tablets in a corrugated box is necessary for the purpose of storage, identification and transportation.

Zoom Udyog, a car manufacturing Co., has started its business with Zoom 800 and slowly launched Zoom-1000, Wagon-Z, Swy-fy etc. and offered various services like after sale service, availability of spare parts etc. Identify the element of marketing mix referred here.

Product.

Radha found a worm crawling out of newly opened tetra pack of a juice manufactured by a reputed company, Zest, Ltd.. She went back to the shopkeeper from whom the pack was purchased who directed her to call up the customer care centre. When aU her efforts failed, she went to a consumer activist group to seek help. The group decided to help Radha and take measures to impose restrictions on the sale of the firm's products of the particular batch and urge customers to refrain from buying the products of the company. Zest Ltd. lost its image in the market. The CEO gives the responsibility of bringing back the lost image of the company to a Manager.
(a) Identify the concept of Marketing Management which will help the Manager getting the firm out of the above crisis.
(b) Also explain the role of above identified concept by stating any two points.

(a) Public Relations.
(b) Role of public relations can be discussed with respect to the functions which the department performs: (any two)
(i) Press relations
(ii) Product publicity
(iii) Corporate communication
(iv) Lobbying.
(v) Counselling.

These days, the development of a country is also judged by its system of transferring finance from the sector where it is in surplus to the sector where it is needed the most. To give strength to the economy, SEBI is undertaking measures to develop the capital market. In addition to this , there is another market in which unsecured and short-term debt instruments are actively traded every day. These markets together help the savers and inventors in directing the available funds into their most productive investment opportunity.
(a) Name the function being performed by the market in the above case.
(b) Name the market segment other than the capital market segment in which unsecured and short-term debt instruments are traded. Also, give any three points of difference between the two.

(a) Mobilisation of savings and channeling them into the most productive uses/Allocative function.
(b) Money market: Difference between Capital Market and Money Market:

Basis	Money Market	Capital Market
(i) Participants	The participants are RBI, financial institutions, banks, corporates,	The participants are financial institutions, banks, corporates; foreign investors and retail investors.
(ii) Instruments	Instruments traded are treasury bill, commercial paper, certificates of deposit, call money and commercial bill,	Instruments traded are shares, debentures and bonds.
(iii) Safety	Money market securities are comparatively safer.	Capital market securities are riskier than money market instruments.
(iv) Expected return	Money market securities yield comparatively less return	Generally yield a higher return than money market instruments
(v) Investment outlay	Money market securities have a large investment outlay	Capital market securities have small investment outlay
(vi) Duration	Money market deals in short term securities whose period of maturity is upto one year	Capital market deals in medium term and long term securities with period of maturity of more than one year.
(vii) Liquidity	Money market securities are comparatively more liquid	Capital market securities are comparatively less liquid.

'Coconut Joy Ltd.' are the manufacturer of vegetarian frozen dessert food products made with coconut milk, agave syrup and other certified ingredients. The founders of the company Lovely and Lalita originally developed this treat to meet their own needs but found that their friends and families around were also keen to use the products. It was not only the vegetarians, but also those who could not get enough environment friendly sustainable food, that appreciated the product.
It did not take long for Lovely and Lalita to recognise the potential of their little venture. In the beginning they started from their home with the product being sold through local family parties that enable guests to personally meet the owner. This helped to establish strong connections with the prospective buyers and the company could put the product on shelves of natural food store. The company used all marketing activities to grow and expand. The company began sponsoring booths at festivals, drawing attention to its newly created vegetarian products. It also disseminated relevant information to media about its products and the people who helped in building the company's reputation. Lovely and Lalita were invited for an interview with one of the leading TV channels in which they talked about their environment friendly vegetarian products. To show its gratitude to customers, local business and government officials who supported the company from the beginning, `Coconut Joy Ltd.' hosted a gala event and involved all of them to raise funds for a few local NGO's. The company also asked its fans and customers to send songs and poetry conveying their impression about 'Coconut Joy's Ltd.' products.
(a) Identify and explain the communication tool used by 'Coconut Joy Ltd.'.
(b) Briefly explain the role of the tool identified in (a) above.

(a) Public Relation.
(b) (i) Press Relation. (ii) Product Publicity
(iii) Corporate Communication. (iv) Counselling.

Shreemaya Hotel in !adore was facing a problem of low demand for its rooms due to off season. The Managing Director (MD) of the hotel, Mrs. Sakina was very worried. She called upon the Marketing Manager, Mr.Kapoor for his advice. He suggested, that the hotel should announce an offer of '3 Days and 2 Nights hotel stay packaged with free breakfast and one day religious visit to Omkarehswar and Mahakaleshwar Temples'. The MD liked the suggestion very much. Identify the promotional tool, which can be used by the hotel, through which large number of prospective pilgrimage tourists, all over the country and also abroad, can be reached, informed and persuaded to use the incentive.

Advertising

Recently prices of perfumes which are one of the major ingredients of agarbattis, have gone up substantially. Since there is keen Competition in the agarbatti market, no manufacturer increased the price of agarbattis. In turn, most of the manufacturer opted to reduce the quantity of perfumes in agarbattis to cut their cost of production. This has resulted in decreased quality of agarbattis though their prices have not changed. In order to overcome this problem, Garden Ltd. introduced a new set of agarbattis under the brand name Khushboo. Khushboo agarbattis captured the agarbattis market very quickly.
(i) Identify the product-related issue involved in the above case and explain its three functions.
(ii) Mention three featues of that concept.

(i) Branding concept

'Various tools of communication are used by the marketers to promote their products.'
(i) Why do companies use all tools at the same time?
(ii) Name and explain the most commonly used non-personal tool of promotion which is paid for by the marketer.
(iii) Which tool of promotion will primarily be used for the following?
(a) To promote or protect a company's image or its individual products.
(b) An existing product meant for mass usage by literate people.
(c) To introduce a new product to a particular class of people through door-to-door visits.
(d) To attract attention of the people by using incentives.

(i) Synergy in Total Promotion Efforts
(ii) Advertisement
(iii) (a) Public Relation
(b) Advertisement
(c) Personal selling
(d) Sales Promotion

A tea producer uses such packets/things for packing tea, which can be used, even after consuming the tea, for other purposes. Here, which values are being affected by him.

The values which are being affected by him are:

(i) Optimum utilization of resources- By initiating recycling after his product is used, he ensuring that waste generation is reduced

(ii) Environment protection- Helps in the protection of environment through resuse and recycling as generating less waste

(iii) Increasing the cost by using boxes/containers- Other than the positive effects for the environment, the high cost of packaging leads to higher cost of product.

A company makes false claims about getting power from drinking soft drink. What values are lacking in the company?

Value of Honesty.

You have an advertising agency. A manufacturer of consumer product like Soap, Tooth Paste has come to you to help him in promotion of his products. Convince him how advertising can assist in giving boost to his sales?

Advertising, as a medium of communication, has the following merits which can be explained to the manufacturer:

(i) Mass Reach: Advertising is a medium through which a large number of people can be reached over a vast geographical area. For example, an advertisement message placed in a national daily reaches lakhs of its subscribers.

(ii) Enhancing Customer Satisfaction and Confidence: Advertising creates confidence amongst prospective buyers as they feel more comfortable and assured about the product quality and hence feel more satisfied.

(iii) Expressiveness: With the developments in art, computer designs, and graphics, advertising has developed into one of the most forceful medium of communication. With the special effects that can be created, even simple products and messages can look very attractive.

(iv) Economy: Advertising is a very economical mode of communication if large number of people are to be reached. Because of its wide reach, the overall cost of advertising gets spread over numerous communication links established. As a result the per-unit cost of reach comes low.

A company uses same promotional schemes like 'buy one, get one free', free samples, free gifts and so on to boost the sales of its products and earn higher profits. This results in unnecessary hike in the prices of the products. In your opinion, is this policy in the interest of society?

No, it reflect crisis.

As a project work in Business Studies subject, the Commerce students of 'Knowledge School' thought of setting up a recycling plant to recycle all the waste papers from the school and prepare registers and exercise books to be used by the school students. They approached their Principal who not only appreciated the idea of the students but also gave them consent for the same. The school also decided to donate. 50% of the revenue generated from the sale of registers and exercise books to a nearby blind school.
(i) State the product related decisions which the children have to take.
(ii) Suggest any two factors the children should keep in mind while choosing the right name for their exercise books and registers.
(iii) Identify any two values communicated to the society by this project of 'Knowledge School'.

(i) Branding, Labelling, Packaging
(ii) Short and Simple, Unique
(iii) Helping Poor, Ecofriendliness

You are participating in a school debate on the topic 'Role of advertising for the business & society'. You have to speak against the topic, i.e., on negative fallouts/objections against advertising. Support your topic point wise.

Objections to Advertisement.

One manufacturer of electronic product produces such products which need special care while using it. But the company has not given the instructions to consumers. If you were the manager of the company what steps you would take?

Give all the information on Label.

Which techniques of sales promotion is being referred to in the below given points:
(i) Free sample of shampoo pouch with a fairness cream.
(ii) Upto 50% off on most items.
(iii) Tooth brush free with Tooth paste.
(iv) Buy 3 packs of 1 litre juice and get another free.
(v) Scratch the card and dial a number to win a car.

(i) Product Combination
(ii) Discount
(iii) Product Combination
(iv) Quantity deal
(v) Scratch a card.

A cosmetic manufacturing company is spending a lot of money on advertisement to sell their products as they believe that the sale of goods depends largely on the quality of advertisement.
Name the marketing philosophy followed. State any other two marketing philosophy.

The marketing philosophy followed in the above case is Sales concept. Sales Concept assumes that the customers would not buy, or not buy enough, unless they are adequately convinced and motivated to do so, It is believed that aggressive selling and promotional efforts are important to make customers buy their products.

Other two marketing philosophies are:

(i) Production Concept -which assumes that availability and affordability of the product are the key to the success of a firm and puts greater emphasis on improving the production and distribution efficiency of the firms.

(ii) Product Concept assumes that product improvement is, the key to profit maximisation of a firm.

Innovators Ltd. is doing business of manufacturing water purifier. It has already, been manufacturing water purifiers since last 10 years. Now it has come up with a latest innovation in the field of RO purifiers which will avoid wastage of water. It knows that there are many competitors in the field as Whirlpool, Aquaguard, Zero B, Kent, Eureka Forbes, LG, etc.
(i) Which value is adopted by the company?
(ii) Suggest which factors should it keep in mind while fixing the price of purifier.
(iii) Which channel of distribution should the company adopt?
(iv) Which is the most appropriate sales promotion methods for this.

(i) Providing clean water
(ii)
(iii) Indirect
(iv) Rebate, Discount.

Bhuvan is very particular to get his hair cut from ABC saloon of South Delhi. Which type of product is it?

Specialty product

'Money spent on advertisement is a waste'. Do you agree with this statement? Give reasons for your answer.

Money spent on advertisement is a waste since it:

4. Encourages Sale of Inferior Products: Advertising does not distinguish between superior and inferior products and persuade people to purchase even the inferior products.

Which marketing philosophy gives more importance to 'consumer welfare' instead of consumer satisfaction?

Societal marketing concept.

A dealer wants to send some gift items of glassware to Delhi from Mumbai. Which type of packaging is needed here?

Transport level packaging.

Name the non-paid form of communication of information about the product.

Publicity

Name the element of marketing which makes the product available to the target customer?

Physical distributions.

A tube of shaving cream is always offered in a cardboard box. Name the type of packaging used in this case.

Secondary level package.

Name the non-paid form of communication of information about the products.

Publicity

Very Short Answer Type Questions
List the characteristics of a good brand name.

A good brand name should be short, easy to pronounce, spell, recognize and remember; Should suggest the product’s benefits and qualities; be distinctive; be adaptable to packing or labeling requirements; be sufficiently versatile to accommodate new products; be capable of being registered and protected legally and have staying power i.e. it should not get out of date.

A leading leather manufacturing company is using banned animal skin to make huge profit. Name the marketing concept which is ignored here.

Societal marketing concept is ignored here.

'Beauty Products Ltd' is a natural and ethical beauty brand famous for offering organic beauty products for men and women. The company uses plant based materials for its products and is the no. 1 beauty brand in the country. It not only satisfies its customers but also believes in overall protection of the planet.
Identify the marketing management philosophy being followed by 'Beauty Products Ltd.'

Societal marketing concept.

Very Short Answer Type Questions
What is the societal concept of marketing?

The marketing concept, cannot be considered as adequate if we look at the challenges posed by social problems like environmental pollution, deforestation, shortage of resources, population explosion and inflation. It is so because any activity which satisfies human needs but is detrimental to the interests of the society at large cannot be justified. The business orientation should, therefore, not be short-sighted to serve only consumers’ needs.The Societal Marketing Concept is the extension of the marketing concept as supplemented by the concern for the long-term welfare of the society.

Mr Rajiv wants to buy LCD T.V. for his family. Now he has come to Jagota Electronics, Model Town, after coming to shop he get confused. Write the name of promotion tool which has brought him to the shop and promotion tool needed now. Also write the four points of importance of latter tool.

The just promotion tool which brought Rajiv to the shop is advertisement and the promotion tool required now is personnel selling. For importance of ersonal selling.

ITC started its business with Jobaico Industry later on its entered in Hotel Industry, Consumer goods industry, stationery, etc. ITC assured quality to customer and kept company's name as its identity. This help the customers in product identification and hence ensured quality. It also built up their confidence and help in increasing their level of satisfaction.
(i) Name the element of marketing mix referred in above pan.
(ii) Name the other elements of marketing mix.
(iii) Name the concept which assure quality and help in identification of product.
(iv) Identify the value emphasised by ITC..

(i) Product Mix
(iii) Other elements: Price mix, Place mix, Promotion mix.
(iii) Concept which help in identifying the product and assure quality is branding.
(iv) (a) Value of supplying quality product.
(b) Value of building confidence among customers.

Mansi, a shoe manufacturer for school students, decided to maximise her profit by producing and distributing at large scale and thereby reducing the average cost of production:
(i) Identify the marketing management philosophy adopted by Mansi.
(ii) Explain this philosophy on the basis of:
(a) Main focus
(b) Means and ends.

(i) Production concept
(ii) Give difference,

Very Short Answer Type Questions
Explain the advantages of branding to marketers of goods and services.

Branding is creating a corporate brand identity for consumer, and getting that brand identity imprinted on the minds of consumer, and this requires brand positioning and brand management.

Advantages of branding to marketers of goods and services are:

(i) Enables Marking Product Differentiation: Branding helps a firm in distinguishing its product from that of its competitors. This enables the firm to secure and control the market for its products.

(ii) Helps in Advertising and Display Programmes: A brand aids a firm in its advertising and display programmes. Without a brand name, the advertiser can only create awareness for the generic product and can never be sure of the sale for his product.

(iii) Differential Pricing: Branding enables a firm to charge different price for its products than that charged by its competitors. This is possible because if customers like a brand and become habitual of it, they do not mind paying a little higher for it.

(iv) Ease in Introduction of New Product: If a new product is introduced under a known brand, it enjoys the reflected glory of the brand and is likely to get off to an excellent start. Thus, many companies with established brand names decide to introduce new products in the same name. For example, Food Specialties Ltd. had a successful brand Maggie (Noodles), it extended this name to many of its new products introduced such as Tomato Ketchup, Soups, etc. Similarly Samsung extended the brand name of its Television to Washing Machines and other durable products, like Microwave oven.

Very Short Answer Type Questions
Enlist the advantages of packaging of a consumer products.

Packaging has acquired great significance in the marketing of goods and services, because of following reasons:

(i) Rising Standards of Health and Sanitation: Because of the increasing standards of living in the country, more and more people have started purchasing packed goods as the chances of adulteration in such goods are minimised.

(ii) Self Service Outlets: The self-service retail outlets are becoming very popular, particularly in major cities and towns. Because of this, some of the traditional role assigned to personal selling in respect of promotion has gone to packaging.

(iii) Innovative Opportunity: Some of the recent developments in the area of packaging have completely changed the marketing scene in the country. For example, milk can now be stored for 4-5 days without refrigeration in the recently developed packing materials.

(iv) Product Differentiation: Packaging is one of the very important means of creating product differentiation. The colour, size, material etc., of package makes real difference in the perception of customers about the quality of the product. For example, by looking at the package of a product say Paint or Hair Oil, one can make some guess about quality of the product contained in it.

Mx. Rajiv, the sales executive of ABC Ltd. possess good marketing techniques, his techniques involve oral presentation of message, convincing the customer with Face to face interaction, etc.
(i) Name the element of marketing mix under which the above technique fall.
(ii) Identify the element used by Rajiv.
(iii) Name any other element of marketing.

(i) Promotion
(ii) Personal Selling
(iii) Merits of Personal Selling.

Short Answer Type Question.
Define advertising. What are its main features? Explain.

Advertising is perhaps the most commonly used tool of promotion. It is an impersonal form of communication, which is paid for by the marketers (sponsors) to promote some goods or service. The most common modes of advertising are ‘newspapers’, ‘magazines’, ‘television’, and ‘radio’.

The important distinguishing features of advertising are as follows:

(i) Paid Form: Advertising is a paid form of communication. That is, the sponsor has to bear the cost of communicating with the prospects.

(ii) Impersonal: There is no direct face-to-face contact between the prospect and the advertiser. It is therefore, referred to as impersonal method of promotion. Advertising creates a monologue and not a dialogue.

(iii) Identified Sponsor: Advertising is undertaken by some identified individual or company, who makes the advertising efforts and also bears the cost of it.

Long Answer Type Question.
Define marketing. How is it different from selling? Discuss.

Dr. Philip Kotler defines marketing as “the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit. Marketing identifies unfulfilled needs and desires. It defines, measures and quantifies the size of the identified market and the profit potential. It pinpoints which segments the company is capable of serving best and it designs and promotes the appropriate products and services.”

The major differences between selling and marketing are listed as below:

(i) Part of the Process vs Wider Term: Selling is only a part of the process of marketing and is concerned with promoting and transferring possession and ownership of goods from the seller to the buyer. Marketing is a much wider term consisting of number of activities such as identification of the customer’s needs, developing the products to satisfy these needs, fixing prices and persuading the potential buyers to buy the same. Thus, selling is merely a part of marketing.

(ii) Transfer of Title vs Satisfying Customer Needs: The main focus of selling is on affecting transfer of title and possession of goods from sellers to consumers or users. In contrast, marketing activities put greater thrust on achieving maximum satisfaction of the customer’s needs and wants.

(iii) Profit through Maximising Sales vs Customer Satisfaction: All selling activities are directed at maximising sales and, thereby, the profits of the firm. In other words, the emphasis is on profit maximisation through maximisation of sales. Marketing, on the other hand, is concerned with customer satisfaction and thereby increasing profit in the long run. A marketing organisation, thus, attaches highest importance to customer satisfaction as a route to profit maximisation.

(iv) Start and End of the Activities: Selling activities start after the product has been developed while marketing activities start much before the product is produced and continue even after the product has been sold.

(v) Difference in the Emphasis: In selling, the emphasis is on bending the customer according to the product while in marketing, the attempt is to develop the product and other strategies as per the customer needs.

(vi) Difference in the Strategies: Selling involves efforts like promotion and persuasion while marketing uses integrated marketing efforts involving strategies in respect of product, promotion, pricing and physical distribution.

Very Short Answer Type Questions:-
List four shopping products purchased by you or your family during the last few months.

Car, A.C., T.V., Scooter.

Short Answer Type Questions
What is marketing? What functions does it play with process of exchange of goods and services? Explain.

“Business is not financial science, it’s about trading, buying and selling. It’s about creating a product or service so good that people will pay for it.” — Anta Roddick

Traditionally marketing has been described in terms of its functions or activities. In this respect, marketing has been referred to as performance of business activities that direct the flow of goods and services from producers to consumers. We know that mostly manufacturing firms do not produce goods for their own consumption but for the consumption or use by others. Therefore, to move the goods and services from producers to consumers,number of activities such as product designing or merchandising, packaging, warehousing, transportation, branding, selling, advertising and pricing are required. All these activities are referred to as marketing activities.

Taking the social perspective, Phillip Kolter has defined marketing as, “a social process by which individual groups obtain what they need and want through creating offerings and freely exchanging products and services of value with others”.

Short Answer Type Questions
Distinguish between the product concept and production concept of marketing.

Basis of difference	Production concept	Product concept
Main objective	Quantity of product	Quality, performance, features of products
Means	Availability and affordability of product	Product improvements
Ends	Profit through volume of production	Profit through product quality

Short Answer Type Question.
Describe the functions of labeling in the marketing of products.

The various functions performed by a label are as follows:

2. Identification of the Product or Brand: The other important function performed by labels is to help in identifying the product or brand. For example, the brand name of and product, say Biscuits or Potato Chips imprinted on its package helps us to identify, from number of packages, which one is our favourite brand. Other common identification information provided by the labels include name and address of the manufacturer, net weight when packed, manufacturing date, maximum retail price and Batch number.

3. Grading of Products: Another important function performed by labels is to help grading the products into different categories. Sometimes marketers assign different grades to indicate different features or quality of the product. For example, a popular brand of Hair Conditioners comes in different categories for different hair, say for ‘normal hair’ and for other categories.

5. Providing In formation Required by Law: Another important function of labeling is to provide information required by law. For example, the statutory warning on the package of Cigarette or Pan Masala, ‘Smoking is Injurious to Health’ or ‘Chewing Tobacco is Injurious to Health’. Such information is required on processed foods, drugs and tobacco products. In case of hazardous or poisonous material, appropriate safety-warning need to be put on the label.

Short Answer Type Question.
Explain briefly the components of physical distribution.

The main components of physical distribution are explained as follows:

1. Order Processing: In a typical buyer-seller relationship order placement is the first step. Products flow from manufacturers to customers via channel members while orders flow in the reverse direction, from customers to the manufacturers. A good physical distribution system should provide for an accurate and speedy processing of orders, in the absence of which goods would reach the customers late or in wrong quantity or specifications. This would result in customer dissatisfaction, with the danger of loss of business and goodwill.

2. Transportation: Transportation is the means of carrying goods and raw materials from the point of production to the point of sale. It is one of the major elements in the physical distribution of goods. It is important because unless the goods are physically made available, the sale cannot be completed.

4. Inventory Control: Linked to warehousing decisions are the inventory decisions which hold key to success for many manufacturers, especially those where the per unit cost is high. A very important decision in respect of inventory is deciding about the level of inventory. Higher the level of inventory, higher will be the level of service to customers but the cost of carrying the inventory will also be high because lot of capital would be tied up in the stock. Thus, a balance is to be maintained in respect of the cost and customer satisfaction. With advancements in computers and information technology the need for keeping higher inventory is reducing and the new concept of Justin-Time-Inventory decision is becoming popular in an increasing number of companies.

Very Short Answer Type Questions
What are the limitations of a advertising as a promotional tool? Enlist.

The following are the major limitations of advertising as a tool of promotion:

(i) Less Forceful: Advertising is an impersonal form of communication. It is less forceful than the personal selling as there is no compulsion on the prospects to pay attention to the message.

(ii) Lack of Feedback: The evaluation of the effectiveness of advertising message is very difficult as there is no immediate and accurate feedback mechanism of the message that is delivered.

(iii) Inflexibility: Advertising is less flexible as the message is standardised and is not tailor made to the requirements of the different customer groups.

(iv) Low Effectiveness: As the volume of advertising is getting more and more expanded it is becoming difficult to make advertising messages heard by the target prospects. This is affecting the effectiveness of advertising.

Short Answer Type Question.
Product is a bundle of utilities. Do you agree? Comment.

In common parlance, the word ‘product’, is used to refer only to the physical or tangible attributes of a product. In marketing, product is a mixture of tangible and intangible attributes, which are capable of being exchanged for a value, with ability to satisfy customer needs.

I agree product is a bundle of utilities as it provides many benefits for the customers.

There can be three types of benefits a customer may seek to satisfy from the purchase of a product, viz., (i) functional benefits- when cap is worn to protect us from sunlight

(ii) psychological benefits- when the same cap is worn for looking smart and (iii) social benefits- when people find him looking good and appreciates him in front of a society.

Short Answer Type Question.
Discuss the role of 'sales promotion' as an element of promotion mix.

Companies use sales promotion tools specifically designed to promote to customers (e.g., free samples, discounts, and contests), tradesmen or middlemen (e.g., cooperative advertising, dealer discounts and dealer incentives and contests) and to sales person (e.g., bonus, salesmen contests, special offers). Sales promotions include only those activities that are used to provide short term incentives to boost the sales of a firm.

Long Answer Type Question.
What are the factors affecting determination of the price of a product or service? Explain.

There are number of factors which affect the fixation of the price of a product. Some of the important factors in this regard are discussed as below:

5. Pricing Objectives: Pricing objectives are another important factor affecting the fixation of the price of a product or a service. Generally the objective is stated to be maximise the profits. But there is a difference in maximising profit in the short run and in the long run. If the firm decides to maximise profits in the short run, it would tend to charge maximum price for its products. But if it is to maximise its total profit in the long run, it would opt for a lower per unit price so that it can capture larger share of the market and earn greater profits through increased sales.

Apart from profit maximisation, the pricing objectives of a firm may include:

(a) Obtaining Market Share Leadership: If a firms objective is to obtain larger share of the market; it will keep the price of its products at lower levels so that greater number of people are attracted to purchase the products;

(b) Surviving in a Competitive Market: If a firm is facing difficulties in surviving in the market because of intense competition or introduction of a more efficient substitute by a competitor, it may resort to discounting its products or running a promotion campaign to liquidate its stock; and

(c) Attaining Product Quality Leadership: In this case, normally higher prices are charged to cover high quality and high cost of Research and Development. Thus, the price of a firm’s products and services is affected by the pricing objective of the firm.

Long Answer Type Question.
Explain the major activities involved in the physical distribution of products.

The main activities of physical distribution are explained as follows:

3. Warehousing: Warehousing refers to the act of storing and assorting products in order to create time utility in them. The basic purpose of warehousing activities is to arrange placement of goods and provide facilities to store them. The need for warehousing arises because there may be difference between the time a product is produced and the time it is required for consumption. Generally the efficiency of a firm in serving its customers will depend on where these warehouses are located and where are these to be delivered. Generally larger the number of warehouses a firm has, lesser would be the time taken in serving customers at different locations but greater would be the cost of warehousing and vice-versa. Thus the firm has to strike a balance between the cost of warehousing and the level of customer service. For products requiring long-term storage (such as agricultural products) the warehouses are located near production sites. This helps in minimising the charges on transportation of the goods. On the other hand, the products which are bulky and hard to ship (machinery, automobiles) as well as perishable products (bakery, meat, vegetables) are kept at different locations near the market.

Very Short Answer Question.
What do you mean by 'market'?

In the traditional sense, the term ‘market’ refers to the place where buyers and sellers gather to enter into transactions involving the exchange of goods and services. But in modern marketing sense, the term market has a broader meaning. It refers to a set of actual and potential buyers of a product or service. For example, when a fashion designer designs a new dress and offers it for exchange, all the people who are willing to buy and offer some value for it can be stated to be the market for that dress.

Very Short Answer Question.
Distinguish between marketing and selling.

Marketing refers to a large set of activities of which selling is just one part. For example, a marketer of televisions, before making the sale, does a lot of other activities such as planning the type and model of televisions to be produced, the price at which it would be sold and selecting the distribution outlets at which the same would be available, etc. In short, marketing involves whole range of activities relating to planning, pricing, promoting and distributing the products that satisfy customer’s needs. The function of selling, on the other hand, is restricted to promotion of goods and services through salesmanship, advertising, publicity and short-term incentives so that title of the product is transferred from seller to buyer or in other words product is converted into cash.

Very Short Answer Question.
What is the purpose of packaging a product?

Purpose of packaging:

(i) Product Identification: Packaging greatly helps in identification of the products. For example, Colgate in red colour, or Ponds cream jar can be easily identified by its package.

Long Answer Type Question.
Distinguish between advertising and personal selling.

	Advertising	Personal Selling
1	Advertising is an impersonal form of communication.	Personal selling is a personal form of communication.
2	Advertising involves transmission of standardised messages, i.e., same message is sent to all the customers in a market segment.	In personal selling, the sales talk is adjusted keeping view customer’s background and needs.
3	Advertising is inflexible as the message can’ t be adjusted to the needs of the buyer.	Personal selling is highly flexible. as the message can be adjusted.
4	It reaches masses, i.e., a large number of people can be approached.	Only a limited number of people can be contacted because of time and cost considerations.
5	In advertising the cost per person reached is very low.	The cost per person is quite high in the case of personal selling.
6	Advertising can cover the market in a short time.	Personal selling efforts take a lot of time to cover the entire market.
7	Advertising makes use of mass media such television, radio, newspaper, and magazines.	Personal selling makes use of sales staff, which has limited reach.
8	Advertising lacks direct feedback. Marketing research efforts are needed to judge customers’ reactions to advertising.	Personal selling provides direct and immediate feed back. Sales persons come to know about the customers’ reactions immediately.
9	Advertising is more useful in creating and building interest of the consumers in the firms products.	Personal selling plays important role at the awareness stage of decision making.
10	Advertising is more useful in marketing to the ultimate consumer’s who are large in numbers	Personal selling is more helpful in selling products to the industrial buyers or to intermediaries such as dealers and retailers who are relatively few in numbers.

Very Short Answer Question.
How does the process of marketing establish a place for the business in the market?

The process of marketing establish a place for the business in the market with the help of different marketing activities such as ‘merchandising’, ‘selling’ and ‘shopping'.

Long Answer Type Question.
How does branding help in creating product differentiation? Does it help in marketing of goods and services? Discuss.

One of the most important decisions that a marketer has to take in the area of ‘product’ is in respect of branding. He has to decide whether the firm’s products will be marketed under a brand name or a generic name. Generic name refers to the name of the whole class of the product. For example, a book, a wristwatch, tyre, camera, toilet soap, etc. We know that a camera is a lens surrounded by plastic or steel from all sides and having certain other features such as a flash gun and so on. Similarly book is a bunch of papers, which are in a bound form, on which some useful information about a subject is printed. Thus, all products having these characteristics would be called by the generic name such as camera or book. If products were sold by generic names, it would be very difficult for the marketers to distinguish their products from that of their competitors. Thus, most marketers give a name to their product, which helps in identifying and distinguishing their products from the competitors’ products. This process of giving a name or a sign or a symbol etc., to a product is called branding.

Though branding adds to the cost e.g., to the cost of packaging, labelling, legal protection, and promotion, it provides several advantages to the sellers as well as the consumers.

Advantages to the Marketers

(i) Enables Marking Product Differentiation: Branding helps a firm in distinguishing its product from that of its competitors. This enables the firm to secure and control the market for its products.

Advantages to Customers

(i) Helps in Product Identification: Branding helps the customers in identifying the products. For example, if a person is satisfied with a particular brand of a product, say tea leaves or detergent soap, he need not make a close inspection every time, he has to buy that product. Thus, branding greatly facilitates repeat purchase of the products.

(ii) Ensures Quality: Branding ensures a particular level of quality of the product. Thus, whenever there is any deviation in the quality, the customers can have recourse to the manufacturer or the marketer. This builds up confidence of the customers and helps in increasing his level of satisfaction. (iii) Status Symbol: Some brands become status symbols because of their quality. The consumers of those brands of products feel proud of using them and adds to the level of satisfaction of the customers.

Very Short Answer Question.
Define marketing management in present context.

Marketing management refers to planning, organising, directing and control of the activities which facilitate exchange of goods and services between producers and consumers or users of products and services. SImply, Marketing management means management of the marketing function.

Long Answer Type Question.
What is marketing mix? What are its main elements? Explain.

Marketing mix is described as the set of marketing tools that a firm uses to pursue its marketing objectives in a target market.

The concept of product relates to not only the physical product as mentioned in the above examples but also the benefits offered by it from customer’s view point (for example toothpaste is bought for whitening teeth, strengthening gums, etc.). The concept of product also include the extended product or what is offered to the customers by way of after sales services, handling complaints, availability of spare parts etc. These aspects are very important, particularly in the marketing of consumer durable products (like Automobiles, Refrigerators, etc.). The important product decisions include deciding about the features, quality, packaging, labeling and branding of the products.

4. Promotion: Promotion of products and services include activities that communicate availability, features, merits, etc. of the products to the target customers and persuade them to buy it. Most marketing organisations, undertake various promotional activities and spend substantial amount of money on the promotion of their goods through using number of tools such as advertising, personal selling and sales promotion techniques (like price discounts, free samples, etc.). A large number of decisions are to be taken in each of the area specified above. For example, in the respect of advertising it is important to decide about the message, the media to be used (example print-media–newspaper, magazines, etc. the objections of customers, etc.). The success of a market offer will depend on how well these ingredients are mixed to create superior value for the customers and simultaneously achieve their sale and profit objectives. Let us say a firm would like to achieve necessary volume of sale at a cost that will permit a desired level of profit. But so many alternative mixes can be adopted by a firm to achieve this objectives. The issue before a firm then is to decide what would be the most effective combination of elements to achieve the given objectives.

Very Short Answer Question.
Why packaging is called silent salesman?

Packaging is called a silent salesman because it carries a lot of information which is nothing but a type of promotion for the product. The packaging can trigger some psychological connection to the customers who might feel connected to it somehow. For example, a hair oil bottle having a picture of a woman having long hair might trigger a customer to buy the product who wants to grow his/her hair.

Very Short Answer Question.
Define a product.

In common parlance, the word ‘product’, is used to refer only to the physical or tangible attributes of a product. From the customer’s point of view, a product is a bundle of utilities, which is purchased because of its capability to provide satisfaction of certain need.

Very Short Answer Questions
What do you mean by labelling?

A simple looking but important task in the marketing of goods relates to designing the label to be put on the package. The label may vary from a simple tag attached to the product (such as in case of local unbranded products like sugar, wheat, pulses, etc.) indicating some information about the quality or price, to complex graphics that are part of the package, like the ones on branded products (say the graphic of Boat and Patwar on the package of a popular brand of After Shave Lotion or of a lady offering a pen to solicit the views of the users, on the label of a detergent powder). Lables are useful in providing detailed information about the product, its contents, method of use, etc.

Very Short Answer Question.
What is a trade mark?

A brand or part of a brand that is given legal protection is called trademark. The protection is given against its use by other firms. Thus the firm, which got its brand registered, gets the exclusive right for its use. In that case, no other firm can use such name or mark in the country.

Very Short Answer Question.
Explain the meaning of the term promotion mix.

Promotion mix refers to combination of promotional tools used by an organisation to achieve its communication objectives. Various tools of communication are used by the marketers to inform and persuade customers about their firm’s products. These include: (i) Advertising, (ii) Personal Selling, (iii) Sales Promotion, and (iv) Publicity.

Very Short Answer Question.
Write a note on newspaper advertisement.

A newspaper advertisement is an advertisement in print form in newspapers such as English dailies, weekly papers, Local papers etc. It is an effective type of promotional strategy used in order to reach out to a wide range of customers.

Very Short Answer Question.
Define Place as one of the 'Ps' of marketing mix.

Place or Physical Distribution include activities that make firm’s products available to the target customers. Important decision areas in this respect include selection of dealers or intermediaries to reach the customers, providing support to the intermediaries (by way of discounts, promotional campaigns, etc.). The intermediaries in turn keep inventory of the firm’s products, demonstrate them to potential buyers, negotiate price with buyers, close sales and also service the products after the sale. The other decision areas relate to managing inventory, storage and warehousing and transportation of goods from the place it is produced to the place it is required by the buyers.

Very Short Answer Question.
What is the meaning of advertisement?

Any public notice, as a printed display in a newspaper, short film on television, announcement on radio, etc, designed to sell goods, publicize an event, etc is called an advertisement. Advertising is an audio or visual form of marketing communication that employs an openly sponsored, non-personal message to promote or sell a product, service or idea. Sponsors of advertising are typically businesses wishing to promote their products or services.

Very Short Answer Question.
Define marketing mix.

Marketing Mix is a set of marketing tools that the firm uses to pursue its marketing objectives in a target market. The variables or elements of marketing mix have been classified into four categories, popularly known as four Ps of marketing viz., Product, Price, Place and Promotion. These elements are combined to create an offer.

Very Short Answer Question.
What is meant by 'product mix'?

Product mix, also known as product portfolio, is the total range of product lines and items that are offered by the company. It is a subset of marketing mix. Example, Hindustan Unilever Ltd has a wide range of products starting from home care to FMCG.

Short Answer Question.
Differentiate between marketing and selling any four basis.

The major differences between selling and marketing are listed as below:

Short Answer Question.
Explain product concept and the societal concept of marketing.

Product Concept

The Societal Marketing Concept

Short Answer Question.
Explain briefly the pillars of marketing concept.

The marketing concept is based on the following pillars:

(i) Identification of market or customer who are chosen as the target of marketing effort.

ii) Understanding needs and wants of customers in the target market.

(iii) Development of products or services for satisfying needs of the target market.

(iv) Satisfying needs of target market better than the competitors.

(v) Doing all this at a profit.

Short Answer Question.
Marketing is much more than selling. Comment.

Many people confuse ‘selling’ for ‘marketing’. However, selling is only a part of the process of marketing. The main focus of selling is on affecting transfer of title and possession of goods from sellers to users. Marketing activities put greater thrust on maximizing customer’s satisfaction.

Long Answer Question.
What is meant by marketing mix? Explain different elements or components of marketing mix.

Marketing mix is described as the set of marketing tools that a firm uses to pursue its marketing objectives in a target market.

Elements of Marketing Mix

customers perceive the price to be in line with the value of the product.

Short Answer Question.
What is a product mix? Describe briefly the salient features of the product mix.

Product mix is the total range of product lines and types that a company offers for selling to the customers.

Any product mix of a company contains four main components. They are:

Length- It is the range of products available in a particular product line of a company.
Breadth- This refers to the number of product lines under a company. It helps to understand the variety of products offered to the market.
Depth- It refers to the options available in particular product line such as different quantities, sizes etc.
Consistency-]It describes how closely related product lines are to one another--in terms of use, production and distribution.

Short Answer Question.
Define advertising. What are its important features?

The important distinguishing features of advertising are as follows:

(i) Paid Form: Advertising is a paid form of communication. That is, the sponsor has to bear the cost of communicating with the prospects.

(iii) Identified Sponsor: Advertising is undertaken by some identified individual or company, who makes the advertising efforts and also bears the cost of it.

Long Answer Questions:-
Bhuvan & Company has invented a fuel saving instrument which can reduce the consumption of petrol and diesel if it is attached in the engine of vehicle. Suggest any two media which the company must select to advertise for this product and why.

Bhuvan & Company should use TV or Newspaper advertisements and Direct Selling technique to advertise his product.

Through advertising in TV or newspaper the information would reach to a lot of viewers or readers. When people will be learning about the instrument and will be able to understand its utilities then only they would buy such products.

Also, direct selling from the point of sale such as the petrol pump would enable the customers to understand how the product works through demonstration carried out by company representatives. It is a very effective way of increasing the sales of the product by providing face to face information to the target group.

Short Answer Question.
Bhuvan & Co. has launched a new product in the market. As a marketing manager suggest the sales promotion techniques which Bhuvan & Company can adopt to increase the sale of new product.

Following are few sales promotion techniques which the company can adopt:

1. Discount: Offering products at less than list price. Example, a shoe company’s offer of ‘Discount Up to 50%’

2. Refunds: Refunding a part of price paid by customer on some proof of purchase, say on return of empty foils or wrapper. This is commonly used by food product companies, to boost their sales.

3. Product Combinations: Offering another product as gift along with the purchase of a product, say offer of a pack of ½ kg of rice with the purchase of the product.

4. Quantity Gift: Offering extra quantity of the product commonly used by marketer of toiletry products. For example, a shaving cream’s offer of ‘40% Extra’ or ‘Buy 2 Get 1 Free’ offer.

5. Instant Draws and Assigned Gift: For example, ‘Scratch a Card’ and instantly win a Refrigerator, Car, T-shirt, Computer, with the purchase of a TV.

6. Usable Benefit: ‘Purchase goods worth Rs 3000 and get a holiday package worth Rs 3000 free’ or ‘Get a Discount Voucher for Accessories on Apparel Purchase of Rs 1000 and above.’

7. Sampling: Offer of free sample of a product, to potential customers at the time of launch of a new brand.

Short Answer Question.
Rajiv has written a book on management studies. What factors must be considered by Rajiv before fixing the price of the book?

There are number of factors which affect the fixation of the price of a product. Some of the important factors in this regard are discussed as below:

Three Mark Questions:-
'Though branding adds to the cost, it provides several advantages to the consumers'. In the light of the statement, state any three advantages of branding to customers.

Three advantages of branding to customers are:

Six Mark Question:-
Explain the following functions of marketing:
(i) Gathering and analysing market information;
(ii) Market planning;
(iii) Product designing and development;
(iv) Customer support services.

(i) One of the important functions 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. This is important for making an analysis of the available opportunities and threats as well as strengths and weaknesses of the organisation and help in deciding what opportunities can best be pursued by it. For example, rapid growth is predicted in several areas in the Indian economy, say in the use of internet, market for Cell phones and several other areas. Which of these areas a particular organisation should enter or in which area should it expand requires a careful scanning of the strengths and, weaknesses of the organisation, which is done with the help of careful market analysis.

(ii) Another important activity or area of work of a marketer is to develop appropriate marketing plans so that the marketing objectives of the organisation can be achieved. For example a marketer of colour TVs, having 10 per cent of the current market share in the country aims at enhancing his market share to 20 per cent, in the next three years. He will have to develop a complete marketing plan covering various important aspects including the plan for increasing the level of production, promotion of the products, etc. and specify the action programmes to achieve these objectives.

(iii) Another important marketing activity or decision area relates to product designing and development. The design of the product contributes to making the product attractive to the target customers. A good design can improve performance of a product and also give it a competitive advantage in the market. For example, when we plan to buy any product say a motorbike, we not only see its features like cost, mileage, etc. but also the design aspects like its shape, style, etc.
(iv) A very important function of the marketing management relates to developing customer support services such as after sales services, handling customer complaints and adjustments, procuring credit services, maintenance services, technical services and consumer information. All these services aim at providing maximum satisfaction to the customers, which is the key to marketing success in modern days. Customer support services prove very effective in bringing repeat sales from the customers and developing brand loyality for a product.

Three Mark Questions:-
Nisha a school bag manufacturer decided to improve the product for profit maximisation and thus added a water bottle holder to the existing design.
(i) Identify the marketing management philosophy adopted by Nisha and
(ii) Explain this philosophy on the basis of:
(a) Main focus and
(b) Means and ends.

(i) The philosophy adopted by Nisha is Product concept.

(ii) (a) Main focus: The quality, performances and features of the product

(b) Means: Product improvements

Ends: Profit through product quality

Five Mark Questions:-
Explain any four factors which affect the determination of price of a product.

There are number of factors which affect the fixation of the price of a product. Some of the important factors in this regard are discussed as below:

Three Mark Questions:-
Differentiate between Capital Market and Money market on the basis of
(i) Investment Outlay,
(ii) Safety and
(iii) Liquidity.

(i) Investment outlay in Capital market is not huge. The value of units securities is low but in money market huge sums of money is involved as instruments are expensive.

(ii) Safety in money market is more than that of capital markets

(iii) Money market enjoys higher liquidity compared to capital market.

Three Mark Questions:-
'Packaging has acquired great significance in the marketing of goods'. In the light of this statement, state any three functions of packaging.

Three functions of packaging are:

(i) Product Identification: Packaging greatly helps in identification of the products. For example, Colgate in red colour, or Ponds cream jar can be easily identified by its package.

Long Answer Questions:-
A toy car free with Maggi Noodles is an example of one of the techniques of sales promotion. Name this technique and also explain any other three sales promotion techniques.

The technique in the mentioned case is Product combinations.

Three sales promotion techniques:

2. Discount: Offering products at less than list price. Example, a shoe company’s offer of ‘Discount Up to 50%’ or a shirt marketer’s offer of ‘50+40% Discount’.

3. Refunds: Refunding a part of price paid by customer on some proof of purchase, say on return of empty foils or wrapper. This is commonly used by food product companies, to boost their sales.

Long Answer Questions:-
Nisha a school bag manufacturer decided to improve the product for profit maximisation and thus added a water bottle holder to the existing design.
(i) Identify the marketing management philosophy adapted by Nisha.
(ii) Explain this philosophy.

(i) The marketing management philosophy adapted by Nisha is Product Concept.

(ii) As a result of emphasis on production capacity during the earlier days, the position of supply increased over period of time. Mere availability and low price of the product could not ensure increased sale and as such the survival and growth of the firm. Thus, with the increase in the supply of the products, customers started looking for products which were superior in quality, performance and features. Therefore, the emphasis of the firms shifted from quantity of production to quality of products. The focus of business activity changed to bringing continuous improvement in the quality, incorporating new features etc. Thus, product improvement became the key to profit maximization of a firm, under the concept of product orientation.

Long Answer Questions:-
Explain briefly the functions of labelling.

The various functions performed by a label are as follows:

1. Describe the Product and Specify its Contents: Let us look at some of the labels of the products used by us in our day to day life. The label on the package of a local tea company describes the company as ‘ Mohini Tea Company, an ISO 9001:2000 Certified Company’; a popular brand of Prickly Heat Powder, describes how the product provides relief from prickly heat and controls bacterial growth and infection, giving caution forbidding its application on cuts and wounds. Package of fast food products like ready to eat Dosa, Idli or Noodles, describe the procedure of cooking these products; the Package of a toothpaste brand lists the ‘Ten Teeth and Gum Problems’, which the product claims to fight with its ‘Complete Germicheck Formula’; the Package of a brand of Coconut Oil describes the product as pure coconut oil with Heena, Amla, Lemon and specifies how these are good for Hair. Thus, one of the most important functions of labels is to describe the product, its usage, cautions in use, etc. and specify its contents.

4. Help in Promotion of Products: An important function of label is to aid in promotion of the products. A carefully designed label can attract attention and give reason to purchase. We see many product labels providing promotional messages for example, the pack of a popular Amla Hair Oil states, ‘Baalon mein Dum, Life mein Fun’. The label on the package of a brand of Detergent Powder says, ‘Keep cloth look good and your machine in top condition’. Labels play important role in sales promotional schemes launched by companies. For example the label on the package of a Shaving Cream mentions, ‘40% Extra Free’ or package of a toothpaste mentioning, ‘Free Toothbrush Inside’, or ‘Save Rs15’.

Long Answer Questions:-
Critically examine the objections to advertisement?

Though advertising is one of the most frequently used medium of promotion of goods and services, it attracts lot of criticism. The opponents of advertising say that the expenditure on advertising is a social waste as it adds to the cost, multiplies the needs of people and undermines social values. The proponents, however, argue that advertising is

Six Mark Question
'Hayaram' is a famous chain selling a large variety of products in the Indian market. Their products include chips, biscuits, sweets and squashes. It charges a comparatively higher price than its competitors as it sells quality products. Besides, it offers regular discounts to its customers and easy credit terms to its retailers. It has five of its own retail shops. It also sells its products through various grocery stores so that the products are made available to customers at the right place, in the right quantity and at the right time. It regularly uses different communication tools to increase its sales.
The above pan describes the combination of variables used by Hayaram to prepare its market offering. Identify and explain the variables.

The variables are:

1. Product: Product means goods or services or ‘anything of value’, which is offered to the market for exchange. Here, they sell products which includes chips, biscuits, sweets and squashes.

2. Price is the amount of money customers have to pay to obtain the product. In case of most of the products, level of price affects the level of their demand. It is mentioned that it charges a comparatively higher price than its competitors as it sells quality products.

3. Place: Place or Physical Distribution include activities that make firm’s products available to the target customers. Here, it is said that they have five retail shops of their own and they sell their products through various grocery stores so that the products are made available to customers at the right place, in the right quantity and at the right time.

Six Mark Question:-
"Money spent on advertisement is not a waste but an investment." Do you agree with this view? Give reasons in support of your answer.

Yes, I agree. Advertising, as a medium of communication, has the following merits:

There may be some chances of misuse of advertising as a tool, which can be properly safeguarded by the law or by developing a code of conduct by the advertisers, for their self regulation. However, most of the criticism against advertising are not entirely true. In the changed economic environment of globalisation, advertising is considered as an important tool of marketing. It helps a firm in effectively communicating with its target market, increasing the sale and there by reducing the per unit cost of production. It is not a social waste, rather it adds value to the social cause by giving a boost to production and generating employment.

Six Mark Question:-
'Pricing of a product is an important and effective competitive weapon in marketing which depends upon various factors.' Explain any three such factors.

There are number of factors which affect the fixation of the price of a product. Some of the important factors in this regard are discussed as below:

Six Mark Question
Explain the role of 'Advertising' in marketing management.

Advertising, as a medium of communication, has the following role:

Six Mark Question:-
Name that element of marketing-mix which affects the revenue and profits of a firm.
Explain any five factors which help in determining this element.

The element of marketing mix which affects the revenue and profits of a firm is pricing.

There are number of factors which affect the fixation of the price of a product. Some of the important factors in this regard are discussed as below:

5. Pricing Objectives: Pricing objectives are another important factor affecting the fixation of the price of a product or a service. Generally the objective is stated to be maximise the

Six Mark Question:
Advertising is unnecessary and wasteful. Explain bow by giving any three reasons.

Six Mark Question
Advertising is a social waste as it adds to cost, undermines social values and confuses the buyer. Explain how.

Six Mark Question:-
"Money spent on advertising is a waste," Do you agree with this statement? Give any five reasons in support of your answer.

Yes I agree. Though advertising is one of the most frequently used medium of promotion of goods and services, it attracts lot of criticism. The opponents of advertising say that the expenditure on advertising is a social waste as it adds to the cost, multiplies the needs of people and undermines social values. The proponents, however, argue that advertising is

Six Mark Question:-
'Generally, consumers prefer to buy goods directly from the producers but it is not always possible.' Give reasons, why is it so by explaining four different factors responsible for this.

Choice of appropriate channel of distribution is a very important marketing decision, which affects the performance of an organisation. Whether an organisation will adopt direct marketing channels or long channels involving number of intermediaries is a strategic decision. The choice of channels depends on various factors, which are discussed as follows:

1. Product Related Factors: The important product related considerations in deciding the channels include whether the product is an industrial or a consumer product, whether it is a perishable or a non-perishable product, what is the unit value of the product and the degree of complexity of the product. Industrial products are usually technical, made to order and expensive products purchased by few buyers. These products require short channels i.e., direct channel or involving few middlemen. Consumer products, on the other hand, are usually standardised, less expensive, less bulky, non-technical and frequently bought products. These can be better distributed by long network of channels, involving many middlemen. Perishable products like fruits, vegetables, and dairy products are best sold through short channels, while non-perishable products like toiletry products (e.g., soap, toothpaste, hair oil etc.), groceries (vegetable oil, tea leaf etc.), fabrics require longer channels to reach wide spread consumers. If the unit value of a product is low as in case of most convenience products, long channels are preferred while in case of high value products, shorter channels may be used. Similarly, in case of complex products requiring technical details as in case of most industrial or engineering products, short channels are preferred but if the product is a non-complex one, it is sold through long channels, involving number of intermediaries.

2. Company Characteristics: The important company characteristics affecting the choice of channels of distribution include the financial strength of the company and the degree of control it wants to hold on other channel members. Direct selling involves lot of funds to be invested in fixed assets say for starting own retail outlets or engaging large number of sales force. Indirect selling through intermediary does not involve deployment of huge funds on these aspects. Thus, if the firm has plenty of funds it may go for direct distribution. If spare funds are not available, it may go for indirect channels. Similarly if the management want to have greater control on the channel members, short channels are used but if the management do not want more control over the middlemen, it can go in for longer channel or large number of intermediaries.

3. Competitive Factors: The choice of channel is also affected by the channel selected by competitors in the same industry. If the competitor’s have selected a particular channel say Chemist shops for the sale of toiletry products like hair oil, the other firm may also like to select the similar channel. In some cases producers may want to avoid the channels used by competitors. For example if other cosmetic producers have chosen big retail stores for the sale of their products, a particular firm may like to adopt door to door selling. Thus, it will depend upon the policy of the firm – whether it wants to go with the competitors or be different from them. The changing global marketing environment has lead to adoption of newer channels.

4. Market Factors: Important market factors affecting the choice of channel of distribution include size of market, geographical concentration of

potential buyers and quantity purchased. In case the number of buyers is small, like for most industrial products, short channels are used. But if the number of buyers is large, as in case of most convenience products like soft drink, toothpaste etc., longer channels involving large number of intermediaries are used. If the buyers are concentrated in a small place, short channels may be used but if the buyers are widely dispersed over a large geographical area, longer channels may be used. Similarly if the size of order is small, as in case of most consumer products, large number of intermediaries may be used. But if the size of order is large, direct channels may be used.

Six Mark Question:-
You are a toothpaste manufacturer and you have introduced a new brand of toothpaste in the market. How will you determine the price of this product? Explain by giving any three points.

What term is used to refer to physical arrangement of machines and equipment needed to manufacture a product?

process layout is a design for the floor plan of a plant which aims to improve efficiency by arranging equipment according to its function. The production line should ideally be designed to eliminate waste in material flows, inventory handling and management. In process layout, the work stations and machinery are not arranged according to a particular production sequence. Instead, there is an assembly of similar operations or similar machinery in each department (for example, a drill department, a paint department, etc.)

Answer the following question in $$20$$ to $$30$$ sentences.
Explain the merits and demerits of advertising.

Merits and Demerits of Advertising Merits of Advertising Advertising as a means of communication has numerous advantages.

Merits and Demerits of Advertising

Merits of Advertising

Advertising as a means of communication has numerous advantages. The merits of advertising can be summarized below:

1. Mass Reach- Advertising is a communication medium which can reach a wide range of people over a broad geological region. For example- advertising via a daily newspaper reaches millions of people all over the country.

2. Boosting customer contentment and confidence- It creates a sense of assurance amidst potential customers as they are contented and comforted about the quality of the product and thus feel more relaxed.

3. Expressiveness- As because of the progress of graphic designing, art and computer skills, advertisement has changed into one of the most aggressive weapon of communication. A simple product can look attractive with all the special effects and modern computer skills.

4. Economy- Advertising by far is the most economic medium of communication for creating mass awareness. AS a result of it wide reach, the total advertising cost gets stretched over several communication links recognized. This ultimately lowers per unit cost for advertising.

Demerits of Advertising

Though advertising has many advantages, it also has several disadvantages. The demerits of advertising as a medium of communication are listed below:

1. Less Forceful- Being an impersonal medium of communication, it is less forceful when compared to personal selling. Advertising is a common message and you are not compelled to pay attention to the message conveyed.

2. Lack of feedback- It is not possible to study the efficiency of advertising message as it is not possible to gather immediate and precise feedback of the message communicated.

3. Inflexibility- Advertising is not very flexible because of non-standardization and is not custom made to meet the necessities of the various groups of customers.

4. Low effectiveness- Because of the growth in volume of advertising is becoming impossible to make advertising message heard by the prospective group of consumers. This ultimately influences the efficiency of advertising.

Even though advertising has many disadvantages the merits of advertising outweighs the disadvantages and thus forms an important element for a successful marketing of a product. Thus advertising is no doubt a powerful medium of communication without which no product can be marketed successfully.

Answer the following question.
As an advertiser, what essentials do you expect in a good advertisement copy?

These are also known as salient features or characteristics of a good advertisement copy.

(1) It Should Be Simple:

The first important ingredient of an advertisement copy is that it should be written in simple language. It should be capable of proper understanding. It should not use ornamental and tough words rather short, simple and properly understandable words.

(2) It Should Be Capable Of Holding The Reader’s Attention

An advertisement copy should be capable of holding the attention of the reader. It should be presented in such a manner which attracts the consumer immediately.

The following methods may be undertaken to hold the attention of the reader:

(a) Headlines should be properly worded and attractive. It should be short and easy for the reader to remember.

(b) Use of pictures and sketches should be in direct relation to the product to be advertised. A good sketch and drawing will be greatly helpful in explaining the product

(c) Attractive border may be inserted around the advertisement copy in order to distinguish it from other advertisements. Underlining the key words and leaving blank space at the bottom of the copy are also helpful in drawing the reader’s attention.

(d) Quoting the price of the product in the advertisement copy is also helpful in holding the attention of a reader. This would be more helpful if the price of the commodity is low.

(e) The insertion of reply coupons in the advertisement copy is also helpful in attracting the people.

(3) It Must Be Suggestive:

The advertisement copy should be capable of suggesting the reader about the utility and use of the product. Effective slogans can be used to give suggestions to the people.

For example, in case of camp Cola, it is written in the advertisement copy that ‘life is full of camp cola times’, similarly in case of State Bank of India, it is advertised, ‘protect your future with State Bank of India’. All these slogans have suggestive value. Suggestions may also be given with the help of certain pictures in the advertisement copy.

(4) It Should Have Conviction Value:

The advertisement copy shall be able to have ever lasting impression on the reader, if the suggestions are backed by convincing arguments. The reader should not have any doubt on the quality of the product. He should be fully convinced and satisfied.

Exaggeration in explaining the qualities’ of a product must be checked. An appeal with regard to outstanding features of the product must be made. It should be stated in simple language so that the reader could understand easily. In the case of Chelpark fountain pen ink, it is written that it cleans your pen while writing, contains clean x for better pen protection.

Similarly in case of Forhan’s tooth paste, ‘it is ideal for the gums’ and protects your teeth’ some organisations assure ‘money back guarantee’ to convince the people with regard to quality of the products.

(5) It Should Educate The People:

The advertisement copy should tell the people about the use and operation of a product. It should also impart new uses of a product with which the people are not familiar. An advertisement copy containing information with regard to use, sources from where the product can be obtained, price and services available along with the product is greatly helpful in enhancing the demand and enlarging the sales.

For example, in case of Hawkin’s pressure cooker a booklet is also given to the buyer containing methods of preparing various vegetables, soups and puddings etc. with the help of the cooker. Similarly in case of a refrigerator, a booklet containing various directions with regard to proper use and preservation of the refrigerator are given.

(6) It Should Have Memorising Value:

The advertisement copy should be prepared in such a manner that a reader gets ever lasting impression about the product. It can be successfully created by repeating the advertisement time and again. Repetition projects the permanent image about the product on the reader’s mind.

Trademarks and brand names can be used successfully for achieving this end. Dalda, Thums-up, Bournvita and Surf have successfully achieved memorising value. The names of these products are very common among the people.

(7) It Should Be True:

An advertisement copy should be truthful. It should not misrepresent and conceal the true facts about the product. Rather it should clearly lay down the limitations in the product. For example, a cloth merchant should clearly specify about the fading of colour and shrinkage of yarn, if it is so.

If these limitations are not brought to light, the buyer eventually comes to know about them after using the product. This will definitely shatter the confidence of the buyer in the product and the very aim of the advertisement is defeated.

Answer the following question in a sentence or a word.
Name any one element of marketing mix.

The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market. The 4Ps make up a typical marketing mix - Price, Product, Promotion and Place. However, nowadays, the marketing mix increasingly includes several other Ps like Packaging, Positioning, People and even Politics as vital mix elements.

Price: refers to the value that is put for a product. It depends on costs of production, segment targeted, ability of the market to pay, supply - demand and a host of other direct and indirect factors. There can be several types of pricing strategies, each tied in with an overall business plan. Pricing can also be used a demarcation, to differentiate and enhance the image of a product.

Answer the following question in $$2$$ or $$3$$ sentences.
What is Grading?

Grading in education is the process of applying standardized measurements of varying levels of achievement in a course. Grades can be assigned as letters (for example A through F), as a range (for example 1 to 6), as a percentage of a total number of questions answered correctly, or as a number out of a possible total (for example out of 20 or 100)

Answer the following question in $$10$$ to $$12$$ sentences.
Explain the elements of marketing mix.

Elements of Marketing Mix

The elements of marketing mix are often called the four P’s of marketing.

Product

Goods manufactured by organizations for the end-users are called products.

Products can be of two types - Tangible Product and Intangible Product (Services)

An individual can see, touch and feel tangible products as compared to intangible products.

A product in a market place is something which a seller sells to the buyers in exchange of money.

Price

The money which a buyer pays for a product is called as price of the product. The price of a product is indirectly proportional to its availability in the market. Lesser its availability, more would be its price and vice a versa.

Retail stores which stock unique products (not available at any other store) quote a higher price from the buyers.

Place

Place refers to the location where the products are available and can be sold or purchased. Buyers can purchase products either from physical markets or from virtual markets. In a physical market, buyers and sellers can physically meet and interact with each other whereas in a virtual market buyers and sellers meet through internet.

Promotion

Promotion refers to the various strategies and ideas implemented by the marketers to make the end - users aware of their brand. Promotion includes various techniques employed to promote and make a brand popular amongst the masses.

Kumar wanted to purchase a fuel efficient car having the latest standards regarding minimisation of pollution. He saw an advertisement offering such a car and visited the showroom of the company wherein the car was displayed. In his discussion, the Marketing manager told him that the company is providing credit facilities, maintenance services and many other effective services which are helping in bringing repeat sales and developing brand loyalty. Identify the marketing function which the Marketing manager was discussing with Kumar.

After analysis of the above case study, it is identified that Support Services, such as after sales services, handling customer’s complaints, maintenance services etc. aim at providing maximum satisfaction to the customer which in turn helps in repeat sales and developing brand loyalty.

Answer the following question in $$2$$ or $$3$$ sentences.
What is marketing?

Marketing is the study and management of exchange relationships. It is the business process of creating relationships with and satisfying customers. Because marketing is used to attract customers, it is one of the primary components of business management and commerce.

Answer the following question in $$10$$ to $$12$$ sentences.
Briefly explain any four characteristics of industrial product.

The important characteristics of industrial products are given below:

A limited number of Buyers

When compared to customer and farming goods, the number of buyers of industrial goods is limited. Such buyers are also found in certain regions. For example, sugarcane is purchased by a few producers of sugar, but sugar, which is a consumer product, is purchased by a huge amount of people.

A shorter channel of distribution

Because of a part number of buyers, the sale of industrial products is usually made with facilitate of shorter channels of distribution, mean, direct selling or one point channel. Industrial goods always emerge to be complex in view of their technological nature. It is not achievable for a layman to review the value of such goods. One has to have industrial information to be capable to evaluate them.

Geographic awareness

Because of the position of industries at convinced points or regions, industrial markets are greatly determined, geographically.

Derived Demand for Industrial goods

The demand for industrial products is derived from the demand for consumer products. For example, the demand for leather will be derived from the demand for shoes and other leather products in the market. The demand for industrial goods is a derived demand. i.e., it is influenced by the demand for the goods they assist to manufacture. Another example, the demand for a soft drink making plant will be indomitable by the demand for the soft drink.

Answer the following question in $$20$$ to $$30$$ sentences.
Distinguish between advertising and salesmanship.

Advertising and Salesmanship

1. Advertising is an impersonal attempt to persuade people to buy goods or services. Salesmanship is a personal attempt to persuade people to buy goods or services.

2. Advertising is concerned with the establishment of contact with the people through message. Salesmanship is concerned with the establishment of contact with the people through persons, i.e., salesmen/saleswomen.

3. Advertising is addressed to the masses. Salesmanship-talks appeal to specific individuals.

4. Through advertising, a large number of people can be contacted. The number of people contacted through salesmanship is limited.

5. Advertising saves much time. Salesmanship is a time consuming process.

6. Advertising, however, appealing it may be, cannot be very effective. Salesmanship is quite effective in convincing and securing action.

7. The success of advertising depends largely upon the advertising message and the media chosen for advertisement. The success of salesmanship depends upon the qualities of the salesmen.

8. Advertisement cannot clarify the doubts or answer objections of the consumers. Salesmanship can clarify the doubts and answer the objections of the customers effectively.

9. Advertising is preparatory to salesmanship. In other words, advertising precedes salesmanship. Salesmanship follows advertising. It has been rightly said that salesmanship begins where advertising ends.

10. Publicity: Advertising is not flexible. It will have the same appeal, whatever may be the attitude and reaction of the customers. Salesmanship is flexible, in the sense that a salesman can adjust his sales talk according to the attitude of the customers.

11. Advertising is extensive, in that it appeals to the masses without concentrating on individual customers. Salesmanship is intensive. It concentrates on individual customers.

12. Though the ultimate objective of both advertising and salesmanship is the same, their immediate objective differs. Advertising is primarily concerned with creating an interest in the customers to buy a product. Salesmanship is concerned with the actual effecting of sales.

13. Advertising is a one-way means of communication. Salesmanship is a two-way means of communication.

14. In the case of advertising, the response from the prospects (i.e., prospective customers) cannot be known immediately. In the case of salesmanship, the response from the prospects can be known immediately.

15. In the case of advertising, demonstration of the product is not possible. In the case of salesmanship, demonstration of the product by salesmen is possible.

16. Advertising is concerned with all persons in general, regardless of their interest in the product advertised. Salesmanship is generally concerned with only those persons who are supposed to be interested in the product.

17. Advertising promotes the art of craftsmanship, i.e., printing, writing, photography, editing, music, acting, etc. Salesmanship promotes the art of speaking.

18. The task of advertising is very easy. Salesmanship is a difficult task, as it involves tackling a number of issues.

19. The task of advertising can be entrusted to a specialised advertising agency. The task of salesmanship cannot be entrusted to an outside agency.

20. Advertising is relatively cheap. Salesmanship is costly

Answer the following question in $$20$$ to $$25$$ sentences.
Explain the importance of personal selling to customers and society.

Following points explain the importance or benefits of personal selling:

1. Two-Way Communication:

It is the best tool for two-way communication. Salesman can provide necessary information to customer about company’s offer, and also can collect information from customer. Customer can actively involve with salesman to solve his doubts and objections. It is not possible in any other methods of market promotion.

2. Personal Attention:

Advertising and publicity are among mass communication tools. They do not cater individual needs. Personal selling focuses on personal problems of customers. It is comparatively more effective and result-oriented.

3. Detail Demonstration:

Except television advertisements, demonstration is not possible. However, television demonstration is much limited. Salesman can provide a detail demonstration and can supervise when customer is making the actual use of products. For technical products, it has more relevance.

4. Complementary to other Promotional Tools:

Personal selling can support advertising, sales promotion, and publicity. It removes the drawbacks of advertising and sales promotion. Advertising increases awareness while personal selling reinforces the advertising message. Similarly, it can make sales promotion tools more effective by personal guidance or conviction.

5. Immediate Feedback:

This is the only market promotion technique that provides an immediate feedback. At the end of every call/visit, a salesman can easily judge whether the customer is interested or indented to buy.

6. Individual Services:

Salesmanship offers individual services. It can meet personal expectations of buyers. It leads to customer satisfaction.

7. Flexibility:

Sales talks and presentation can be adjusted according to situation to suit individual nature, motives, and problems.

8. Customer Confidence:

By systematic sales talk and presentation, a capable salesman can remove all doubts, quarries, objections and misunderstandings, and can win customer’s confidence. It increases customers’ faith in company and its offers.

9. Triple Rewards:

Salesmanship offers triple rewards. It benefits all parties, including customer, salesman, and company. Customer is satisfied with products and services; salesman can achieve his targets; and company can improve its market share and profits.

10. Improving Image:

Note that salesmanship can remove bad image or misunderstanding by highlighting company’s achievements and offers. The detailed explanation about company and its products removes all doubts and misunderstandings. It helps in restoring company image and reputation in market

Answer the following question in a word or a sentence.
What is publicity?

Publicity is the public visibility or awareness for any product, service or company. From a marketing perspective, publicity is one component of promotion and marketing. The other elements of the promotional mix are advertising, sales promotion, direct marketing and personal selling.

Answer the following question in $$2$$ or $$3$$ sentences.
State any two methods of sales promotion.

There are many methods of sales promotion, including:

Money off coupons – customers receive coupons, or cut coupons out of newspapers or a products packaging that enables them to buy the product next time at a reduced price

Competitions – buying the product will allow the customer to take part in a chance to win a prize

Discount vouchers – a voucher (like a money off coupon)

Free gifts – a free product when buy another product

Explain any four factors which affect the fixation of price of a product.

The factors that affect the fixation of price of a product:
(i) Cost of the product: Cost of the product includes the cost of producing, distributing and selling the product. The cost sets the floor price at which the product may be sold. The firm aims at earning a margin of profit over and above the costs. Total costs are the sum total of the fixed, variable and semi-variable costs for the specific level of activity.
(ii) The Utility and Demand: While the product costs set the lower limits of the price, the utility provided by the product and the intensity of demand of the buyer sets the upper limit of the price, which a buyer would be prepared to pay. According to the law of demand, consumers usually purchase more units at a low price than at high price. The price of a product is also affected by the elasticity of demand of the product. If the demand of a product, is inelastic, the firm can fix higher prices and vice versa.
(iii) Extent of competition in the market: Price is affected by the nature and the degree of competition. If less competition is there in the market, prices can reach the upper limit. Thus, competitor prices and their anticipated reactions must be considered before fixing the price of a product.
(iv) Government and legal regulations: In order to protect the interest of public against unfair practices in the field of price fixing, Government can intervene and regulate the price of commodities. Government can also declare a product as essential product and regulate its price.

Define market segmentation.

Market segmentation refers to aggregating/grouping potential buyers into groups or segments with common needs, preferences and who respond similarly to a marketing action. It is a technique that marketers use to deliver specially designed advertisements and other promotional activities to target one or more specific group of buyers.

What is pre-emptive pricing?

Preemptive pricing is a methodology of selling a product at a price which is below the normal or market price for a short period of time to boost sales, beat competition or bring awareness in consumers. Besides, it also hinders new firms from entering that particular segment.

What is a unique selling proportion (USP)?

A Unique Selling Proposition (USP) is a factor that differentiates a product from its competitors, such as the lowest cost, the highest quality, or the first-ever product of its kind. It is a strategy that provides a competitive advantage to the seller which is unique to them.

' Ultra Televisions Ltd. is offering its $$90$$'' TV sets at a discount of $$Rs. 15,000$$ for a period of one month starting from $$1$$st March, $$2019$$.
Identify the sales promotion activity used by Ultra Televisions Ltd..

Sales promotion activity used by Ultra Television Ltd. is “Discounts”. This refers to reduction of certain percentage of price for a limited period of time. Discounts induces the customer to buy more and also helps the businessmen to clear off the stocks.

What are the marketing objectives of public relations?

Following are the marketing objectives of Public Relations:
(a) Building awareness
(b) Building credibility
(c) Stimulates salesforce
(d) Lowers promotion costs

What is price sensitivity?

Price sensitivity is a measure of the impact of price points on consumer purchasing behaviors. In other words, price sensitivity measures the percentage of sales you will lose or gain at any particular price point relative to another lower or higher price point.

What are the levels of Packaging?

There can be three different levels of packaging. These are as below:
1. Primary Package - It refers to the product's immediate container. In some cases, it is kept till the consumer is ready to use the product (e.g., plastic packet for socks); whereas in others, it is kept throughout the entire life of the product (e.g., a toothpaste tube, etc.).
2. Secondary Packaging - It refers to additional layers of protection that are kept till the product is ready for use, e.g., a tube of shaving cream usually comes in a cardboard box.
3. Transportation Packaging - It refers to further packaging components necessary for storage, identification, or transportation. For example, a toothpaste manufacturer may send the goods to retailers in corrugated boxes containing 10, 20, or 100 units.

Define the term inventory control.

Inventory Control determines the level of Inventory in any business. The higher the level of inventory, the higher will be the level of service to customers but the cost of carrying the inventory will also be high. Thus, a balance is to be maintained in respect of the cost and customer satisfaction.

What is price skimming?

Price skimming is a product pricing strategy by which a firm charges the highest initial price that customers will pay and then lowers it over time. As the demand of the initial customers is satisfied and competition enters the market, the firm lowers the price to attract others, more price-sensitive segment of the population.

What is by-product?

By-products are defined as products recovered from the materials discarded in the main process or from production of some major products. Thus, they emerge as the result of processing operation of another product. The proportion of by-product in relation to the major one is low. For example - molasses in sugar industry.

What are joint products?

Joint Products are two or more products separated in the course of the same process from a single input, where usually both of them of require further processing. Each of these products is in such proportion that non of them could be identified as major product. For example - gasoline, petrol, diesel, paraffin, lubricants are all produced from crude petroleum.

Answer the question briefly.
Distinguish between advertisement and publicity.

Advertising	Publicity
It is an impersonal form of communication.	It is a selective impersonal form of communication.
It reaches masses.	Only a large group of customers can be contacted.
No direct feedback can be obtained.	Direct feedback can be obtained.
More useful for standardised and customer products.	More useful for industrial and customised products.

Answer the question briefly.
The producer of 'Lime Fresh' tea introduces 'Buy one Get one' scheme on all the products of 'Lime Fresh'. Identify the promotional strategy used by the producer. State any one objective that could be met by this strategy.

The promotional strategy used by Lime Fresh is sale promotion where the main objective of every producer is to create attention value for their product in the market by offering wonderful packages of such products at a reasonable price.

Name the function of marketing which is concerned with the cost and location of target market.

The function of marketing which is concerned with cost and location of target market is ‘transportation’.

Nandrachal Networks and Technologies Ltd. is a leader in technology innovation in U.S.A. creating products and solutions for a connected world. It has a large Research and Development team which invented the first smart watch W-I, which besides showing the time would also monitor few health parameters like heart beat, blood pressure, etc. While in search of markets abroad, the company found that in India, the reform process was underway with the aim of accelerating the pace of economic growth. The company decided to take advantage of the fact that licensing requirements had been abolished. The company was also aware that there had been increased level of interaction and interdependence among the various nations of the world and India could be made a base for its international trade. It set up its office in Gujarat with a view to capture the Indian market. In a short span of time, the company emerged as a market leader. Success of the company attracted many other players to enter the market. Competition resulted in reduction in prices, thereby benefitting the customers.
(a) In the above paragraph, two major concepts related to government policy have been discussed. Identify and explain those concepts.
(b) Also, explain briefly any three impacts of those concepts on Indian business and industry.

a. The two concepts related to the government policy discussed in the question are Liberalisation and Globalisation.
1. Liberalisation: Liberalisation refers to the removal of controls and restrictions imposed by the government. They indicated the end of the famous license-permit-quota raj in India.
2. Globalisation: Globalisation refers to the integration of economies of the world. It is the process associated with increasing openness, growing economic independence and promoting economic integration in the world economy.

b. The three major impacts of these concepts on Indian business and industry were:
1. Increased competition: As a result of measures such as abolition of the licensing policy, dereservation and encouragement to foreign direct investment, the competition faced by industries increased, both internally as well as externally, from foreign enterprises. This increase in competition was particularly felt in service industries, such as telecommunication, banking and insurance.
2. Increased demand: With the increased competition, producers increasingly became market-oriented. They began to produce goods keeping in mind the market demand. Therefore, the availability of goods and services for the consumers and the quality also increased tremendously. Thus, consumers gained from quality products and greater variety, and their demand for products increased.
3. Change in business policies: The government policies under the new industrial policy directly affected the functioning of business enterprises. As a result, they altered their policies and operations appropriately.

Vasvi purchased a bottle of pickle from the local grocery shop. The information provided on the bottle was not clear. She fell sick on consuming it. She filed a case in the District Forum under Consumer Protection Act and got the relief.
(a) Identify the important aspect neglected by the marketer in the above case.
(b) Explain briefly the functions of the aspect identified in (a) above.

(a) The aspect neglected in the above case is ‘Labelling’.

(b) Labelling performs various functions. Its important functions are:
(i) Describe the product and Specifies its contents: Label describes the product, its usage, cautions in its use, and specifies its contents etc. Eg. A popular brand of Prickly Heat Powder, describes how the product provides relief from prickly heat and controls bacterial growth and infection. Label describes the product, its usage, caution in its use and specifies its contents etc.
(ii) Product or Brand Identification: The label identifies the product or the brand. For example, the name stamped on a cold drink identifies it as Pepsi, Coke, Thums Up, Fanta, etc.
(iii) Grading of products: The label might also grade the product into different categories, where the differentiation tends to be marginal.
(iv) Providing Information Required by the Law: It is a carrier of information, which is to be provided to the customer. The label describes the product, the manufacturer, date of manufacture, its contents, directions for use, price, etc.
(v) Product Promotion: A carefully designed label can facilitate product promotion. It attracts attention, describes the product, gives the reason to purchase. Particularly in case of a fast-moving consumer goods sector (FMCGs), label has become a patent tool of sales promotion.

Marketing - Class 12 Commerce Business Studies - Extra Questions

Mention one drawback of advertising.

Which concept of marketing suggest that the organisation earn profit through volume of production?

Long Answer Questions:-Advertisement is a social and economical waste. Do you agree? Give reasons to support your answer.

One Mark Questions:-What is meant by 'Production on concept' of marketing?

What is meant by product?

Long Answer Questions:-What is price mix? Explain the factors which are kept in mind while fixing the price of a product.

Long Answer Questions:-Explain all the business concepts of marketing.

One Mark Questions:-What is meant by 'selling concept' of marketing?

One Mark Questions:-What is meant by Promotion?

Four Mark Question:Define marketing and state any three functions of marketing.

Three Mark Questions:-Differentiate between the concepts of 'Packaging' and 'Labelling'.

Four Mark Question:-State the meaning of 'Product Identification' function of packaging.

Three Mark Questions:-Differentiate between 'Advertising' and 'Personal Selling' on any five bases.

Four Mark Question:-What is the advantage of registering 'trade mark'?

Four Mark Question:-State the meaning of 'Product promotion' function of packaging.

Five Mark Questions:-What is Packaging? State any four functions of Packaging.

Four Mark QuesrDefine 'Brand name'.

Three Mark Questions:-Explain any three qualities of a good brand name?

Three Mark Questions:-Explain any three functions of packaging?

Five Mark Questions:-An important task in the marketing of a good relates to designing the label as it provides useful and detailed information about the product.' In the light of the above statement, draw a label for a packet of 'juice' and highlight the important information to be provided on it.

Six Mark Question:-Explain four important elements of marketing mix.

Six Mark Question:-"Advertisement is unnecessary and wasteful." Do you agree? Give reasons.

Five Mark Questions:-Explain the concept of personal selling and any four qualities of a good salesman?

Five Mark Questions:-What is meant by 'Brand Name'? State any four characteristics of a good 'Brand Name'.

Five Mark Questions:-What is meant by 'Labelling'? State any four functions of labelling.

Six Mark Question Explain 'Market Planning' and 'Product Designing and Development' as functions of Marketing.

Five Mark Questions:-Give the meaning of 'price' as an element of 'marketing mix'. State any four factors which affect the price determination of a product.

Six Mark Question:-Explain any three factors thai are taken into consideration while taking decision of pricing the product.

Six Mark Question:-"Expenditure on advertising is a social waste." Explain any four Masons in support of this statement.

Ravi, the Marketing Manager of Weaver Garments Ltd. does not allow the salesmen working under him to freely express their frank opinion and feelings regarding work related matters.

What is meant by 'Personal Selling'? Explain any three qualities of good salesman.

Six Mark Question Explain the concept of sales promotion and any four techniques of it with an example of each.

'Through advertising is one of the most frequently used media of promotion of goods and services, yet it attracts lot of objections.'Explain any four such objections.

Six Mark Question Explain the following functions of marketing: (a) Gathering and analysing market information (b) Marketing planning (c) Standardisation and grading.

Explain the following functions of marketing:(i)Product designing and development(ii)Standardization and Grading(iii)Customers support services(iv)Pricing of products

Differentiate between 'Capital Market' and 'Money Market' on the basis of the following:(i)Meaning(ii)Liquidity(iii)Safety(iv)Expected Return(v)Duration

Distinguish Between Primary market and Secondary Market

Explain the concept of Societal marketing.

What do you mean by labelling?

What is a Primary Package?

What are durable goods?

What is a brand?

What are non-durable goods?

Define 'Price' of a product.

Define discount.

What are the components of physical distribution?

What are convenience products?

Define public relations.

What is brand equity?

What are producers markets? What are consumers markets?

The activities that pursue customers to buy the products come under the scope of _______ mix.

The place where sellers and buyers meet to sell and buy the goods is generally called __________.

How are market activities different from non-market activities?

The markets that are regulated by statutory regulations is called ________ Markets.

Mention the four types of markets classified under the basis of area.

Storing of goods between the time of production and the time of sale is facilitated by ________.

The assurance of the standard quality of product to consumers is assured by __________ of goods.

What are the forces of marketing mix? Explain any one force?

What is the importance of marketing? How does marketing help in improvement of standard of living?

What do you mean by marketing mix?

Mansi took her niece, Ridhima, for shopping to 'Mega Stores' to buy her a bag for birthday. She was delighted when on payment of the bag she got a pencil box along with the bag free of cost.Identify the technique of sales promotion used by the company.

'Buy one get one free' is printed on the label of the package of a mosquito repellent.State the labelling function being performed by this statement.

Identify the concept.

Why is the understanding of 'Marketing Management Philosophies' important?

Explain briefly any four factors discussed in the given case related to the concept so identified.

Mention the drawbacks of advertising.

SUBJECT TESTING-I (Direct Questions)Distinguish Between:(2) Primary market and Secondary market.

What do advertisement do?

What is labelling? Explain four advantages of labelling.

Write short notes on:Publicity.

Explain the following Principles of management, as advocated by Henry Fayol:Stability of tenure

Answer the following question:Distinguish between marketing and selling.

Answer briefly:Mention two physical functions of marketing.

Explain the need for consumer protection.

Answer briefly:State any two features of advertising.

Answer the question briefly.Mention two types of markets, on the basis of the position of buyers and sellers.

Give three points of difference between a product and a service.

Discuss the features of good packaging.

With regard to promotion, explain the following:Open promotion

Long Answer Questions:-
Advertisement is a social and economical waste. Do you agree? Give reasons to support your answer.

One Mark Questions:-
What is meant by 'Production on concept' of marketing?

Long Answer Questions:-
What is price mix?
Explain the factors which are kept in mind while fixing the price of a product.

Long Answer Questions:-
Explain all the business concepts of marketing.

One Mark Questions:-
What is meant by 'selling concept' of marketing?

One Mark Questions:-
What is meant by Promotion?

Four Mark Question:
Define marketing and state any three functions of marketing.

Three Mark Questions:-
Differentiate between the concepts of 'Packaging' and 'Labelling'.

Four Mark Question:-
State the meaning of 'Product Identification' function of packaging.

Three Mark Questions:-
Differentiate between 'Advertising' and 'Personal Selling' on any five bases.

Four Mark Question:-
What is the advantage of registering 'trade mark'?

Four Mark Question:-
State the meaning of 'Product promotion' function of packaging.

Five Mark Questions:-
What is Packaging? State any four functions of Packaging.

Four Mark Quesr
Define 'Brand name'.

Three Mark Questions:-
Explain any three qualities of a good brand name?

Three Mark Questions:-
Explain any three functions of packaging?

Six Mark Question:-
Explain four important elements of marketing mix.

Six Mark Question:-
"Advertisement is unnecessary and wasteful." Do you agree?
Give reasons.

Five Mark Questions:-
Explain the concept of personal selling and any four qualities of a good salesman?

Five Mark Questions:-
What is meant by 'Brand Name'?
State any four characteristics of a good 'Brand Name'.

Five Mark Questions:-
What is meant by 'Labelling'?
State any four functions of labelling.

Six Mark Question
Explain 'Market Planning' and 'Product Designing and Development' as functions of Marketing.

Five Mark Questions:-
Give the meaning of 'price' as an element of 'marketing mix'. State any four factors which affect the price determination of a product.

Six Mark Question:-
Explain any three factors thai are taken into consideration while taking decision of pricing the product.

Six Mark Question:-
"Expenditure on advertising is a social waste." Explain any four Masons in support of this statement.

Six Mark Question
Explain the concept of sales promotion and any four techniques of it with an example of each.

Six Mark Question
Explain the following functions of marketing:
(a) Gathering and analysing market information
(b) Marketing planning
(c) Standardisation and grading.

Explain the following functions of marketing:
(i)Product designing and development
(ii)Standardization and Grading
(iii)Customers support services
(iv)Pricing of products

Differentiate between 'Capital Market' and 'Money Market' on the basis of the following:
(i)Meaning
(ii)Liquidity
(iii)Safety
(iv)Expected Return
(v)Duration

Mansi took her niece, Ridhima, for shopping to 'Mega Stores' to buy her a bag for birthday. She was delighted when on payment of the bag she got a pencil box along with the bag free of cost.

Identify the technique of sales promotion used by the company.

'Buy one get one free' is printed on the label of the package of a mosquito repellent.
State the labelling function being performed by this statement.

SUBJECT TESTING-I (Direct Questions)
Distinguish Between:
(2) Primary market and Secondary market.

Write short notes on:
Publicity.

Explain the following Principles of management, as advocated by Henry Fayol:
Stability of tenure

Answer the following question:
Distinguish between marketing and selling.

Answer briefly:
Mention two physical functions of marketing.

Answer briefly:
State any two features of advertising.

Answer the question briefly.
Mention two types of markets, on the basis of the position of buyers and sellers.

With regard to promotion, explain the following:
Open promotion

Explain the following Principles of management as advocated by Henry Fayol:-
Discipline

Write a word or a phrase or term which can substitute the following statement:
Getting products of better quality is the basic right of this group of society.

With regard to promotion, explain the following:
Closed promotion

'Blindly following the goal of customer satisfaction has led to many social and environmental ills'.
Do you agree? What should be done?

You are a marketing manager of ABC company. You are asked to persuade the customer and make customers buy the products.
Explain the variety of promotion tools you will consider to use to achieve this objective?

'It pays to advertise'. Do you agree with this statement?
Give reasons.

A cosmetic manufacturing company is spending a lot of money on advertisement to sell their products as they believe that the sale of goods depends largely on the quality of advertisement.
Name the marketing philosophy followed. State any other two marketing philosophy.

Very Short Answer Type Questions
List the characteristics of a good brand name.