Marketing Class 12 Important Questions and Answers Business Studies Chapter 11

We have given these Business Studies Class 12 Important Questions Chapter 11 Marketing to solve different types of questions in the exam. Go through these Marketing Class 12 Important Questions and Answers & Previous Year Questions to score good marks in the board examination.

Important Questions of Marketing Class 12 Business Studies Chapter 11

Question 1.
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 brands loyalty.
Identify the marketing function which the Marketing Manager was discussing with Kumar. (All India 2019)
Answer:
Marketing Manager was discussing ‘customer support service’ with Kumar.

Question 2.
‘Ultra Televisions Ltd.’ is offering its 90 TV sets at a discount of ₹ 15,000 for a period of one month starting from 1st March, 2019.
Identify the sales promotion activity used by TJltra Televisions Ltd.’ (All India 2019)
Answer:
Sales promotion technique used is rebate.

Question 3.
“Purchase goods worth ₹ 10,000 and get a discount voucher of ₹ 5,000”. Identify the sales promotion activity. (All India 2019)
Answer:
Promotion technique is used in ‘Useable Benefits’.

Question 4.
Beena has been using ‘Klean’, a famous detergent available in the market. On watching numerous advertisements in the television, she decided to try a new brand of detergent. When she went to the near-by store to purchase the same, she saw detergents of other producers making similar claims of whiteness and stain Removing abilities. Hence, she could not make up her mind as which detergent to purchase.
Name the objection of advertising being discussed in this case. (Delhi 2019)
Answer:
The objective highlighted here is ‘Advertising confuses the buyers’.

Question 5.
Give the meaning of ‘Physical Distribution’ as an element of Marketing Mix. (Delhi 2019)
Answer:
Physical distribution covers all the activities required to physically move the goods from manufacturers to consumers. It includes decision regarding channel of distribution and physical movement of goods from the place where it is produced to the place of consumption.

Question 6.
What is meant by ‘Marketing Management’? (Delhi 2019)
Answer:
It is the process of planning, organising, directing and controlling the activities relating to exchange of goods and services.

Question 7.
Why is understanding of ‘marketing philosophies’ important? (CBSE 2018)
Answer:
An understanding of Marketing Philosophies is an important because it helps us to understand how the concept of marketing, has evolved over a period of time.

Question 8.
‘Buy one get one free’ is printed on the label of the package of mosquito repellent. State the labelling function being performed by this statement. (CBSE 2018)
Answer:
The labelling function performed here is ‘it helps in promotion of products.’

Question 9.
Give the meaning of Marketing Mix. (Compartment 2018)
Answer:
It refers to the set of marketing tools that a firm uses to pursue its objectives in a target market

Question 10.
f the company has enough funds and the management also wants to have greater control on the channel members, which channel of distribution should the company adopt? Give reason in support of your answer. Compartment 2018
Answer:
The company should use zero or one level channel as here in, there is very less interference of intermediaries which facilitates easy controlling of members by management.

Question 11.
“My Bakery,’ a biscuit manufacturing company, launched biscuits with different flavours based on quality and features ‘like ‘Crunchy biscuits’, ‘Sweet Potato’, ‘Coffee Jolly’ etc.
The lables on the package of the biscuits are with pictures and different . colours indicating and specifying the
flavours of the biscuits and their contents.
Identify the two functions of labelling discussed above. (Comportment 2018)
Answer:
Function of labelling identified are

• Product identification
• Product information

Question 12.
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. (All India 2017)
Answer:
‘Product combination’ technique of sale promotion is used by the company.

Question 13.
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 point.
Identify the technique of sales promotion used by the company in the above situation. (Delhi 2017)
Answer:
‘Usable benefit’ is the technique of sales promotion used by the company in the above situation.

Question 14.
Name the marketing function which is concerned with the important decision of managing inventory. (Foreign 2016)
Answer:
Physical distribution

Question 15.
Name the function of marketing which is concerned with the cost and location of target market. (All India 2016)
Answer:
Transportation

Question 16.
Name the marketing function which is concerned with informing the customers about the firm’s products. (Delhi 2016)
Answer:
Promotion

Question 17.
‘Maruti Vega Ltd. entered into the market with coloured television and have now introduced products like audio system, air-conditioners, washing machines, etc. The company is not only offering the products but also handling complaints and offering after sales services.
Identify the element of marketing mix discussed here. (All India 2015)
Answer:
Product or Product Mix

Question 18.
A consumer products manufacturing company is offering a number of consumer product like toiletries, detergent powder, food products, etc.
Identify the element of marketing mix referred here. (Comportment 2015)
Answer:
Product mix

Question 19.
A TV manufacturing company is spending substantial amount of money to persuade the target customers to buy its T.V. sets through advertisements, personal selling and sales promotion techniques. Identify the element of marketing mix referred here. (Comportment 2015)
Answer:
Promotion

Question 20.
Why is marketing called a social process? (Delhi 2013)
Answer:
Marketing is regarded as a social process, whereby people exchange goods and services for money or something of value to them.

Question 21.
State the meaning of ‘product promotion’ function of packaging. (All India 2013)
Answer:
Product promotion Packaging promotes the sales of the product. Package is the buyer’s first encounter with the product and is capable in turning the buyer on or off. The colourful attractive packing of the product attracts the customers to buy e.g. Ferrero Rocher Chocolates, Calcium sandoz, etc.

Question 22.
Distinguish between selling concept and marketing concept of marketing management philosophies on the basis of main focus. (Delhi 2013)
Answer:

• Selling concept Firms believe that aggressive selling and promotional efforts will convince a customer to buy a product.
• Marketing concept Customers’ needs and customers’ satisfaction are the key to success of an enterprises.

Question 23.
State the meaning of product identification function of packaging. (All India 2013)
Answer:
In recent years, due to increasing competition and growing use of open display and self service of goods, the need of packaging has arisen. It helps in identifying the product by indicating its nature and content, e.g. A customer can easily identify Ponds cream with its unique jar.

Question 24.
What is the advantage of registering trademark? (All India 2013)
Answer:
The firm which has 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.

Question 25.
What is meant by selling concept of marketing? (All India 2010; Delhi 2010)
Answer:
Firms believe that aggressive selling and promotional efforts will convince a customer to buy a product.

Question 26.
JTM Ltd. launched ‘Buddyline’, an exercise book and comprehensive stationery brand name comprising of ball pens, gel pens and geometry boxes after identifying the target market and understanding the needs and wants of the consumers of that market. All their products were of good quality and eco-friendly but expensive. They wanted to distinguish their products from that of their competitors. They spent lot of efforts, time and money in creating the brand name, as they knew that without a brand pame, they can only create awareness for the generic products and can never be sure of the sale of their products. The effort paid off and the
demand for the products started growing. The customers liked the brand and became habitual to it. They did not mind paying a higher price. Over a period of time, it became a status symbol to buy ‘Buddyline’ brand because of its quality. The consumers felt pride in using them.
(i) dentify the marketing management philosophy followed by JTM Ltd.
(ii) Explain the advantages of branding to the marketers highlighted in the above case. (All India 2019)
Answer:
(i) Marketing management philosophy followed by JTM Ltd. is’Societal marketing’.

(ii) Advantages of branding to marketers are:

• Enable product differentiation Due to proper branding, products can be easily differentiated which help in increasing the sales.
• Helps in introduction of new product Once brand is established through correct use of branding, new products can be easily introduced.

Question 27.
Hemand, 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, products designing, selling techniques, social concerns, etc.

In one of such meetings, Hemand drew the attention of Guddu and Toshita towards the exploitation of consumer. 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 consumer 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 -i 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 Hemand, 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. (All India 2017; Delhi 2017)
Answer:
The various types of marketing concepts followed by Hemand, Guddu and Toshita are specified below:
Hemand emphasised on ‘social marketing, concept of marketing’.
Guddu emphasised on ‘selling concept of marketing.’
Toshita emphasised on ‘marketing concept’

The salient features other than those mentioned the passage are:

• Societal marketing concept Customer satisfaction is supplemented by social welfare.
• Selling concept Product quality and availability does not ensure the survival and growth of business.
• Marketing concept The needs and wants of the target customers should be understood.

Question 28.
There can be three different levels of packaging. Explain any two of them. (Compartment 2015)
Answer:
The three different levels of packaging are primary level packaging, secondary level packaging and transportation level packaging.

• Primary packaging It is the immediate container of the product, e.g. Toothpaste tube, shampoo bottle, etc.
• Secondary packaging It is the additional layer of protection, e.g. Cardboard box for a toothpaste tube.
• Transportation packaging It refers to further packaging which is necessary to ‘protect the products in the process of transportation and storage, e.g. Corrugated box containing 20,50,100 units of toothpaste.

Question 29.
How do the ‘company related factors’ affect the choice of channels of distribution? Explain. (All India 2015)
Answer:
The ‘company-related factors’ affect the choice of channels of distribution in the following way:
(i) Degree of control Manufacturers ambition to control the channel of distribution affects its selection. Consumers should be approached directly by such type of manufacturer, e.g. electronic goods sector with a motive to control the factors service levels provided to the customer at the point of sale are resorting to company owned retail counters.

(ii) Financial strength A company which has strong financial base can evolve its own channels. On the other hand, financially weak companies would have to depend upon middlemen.

Question 30.
Explain how the ‘product related factors’ affect the choice of channels of distribution. (Delhi 2015)
Answer:
Product related factors Before deciding channel of distribution for a product, various product related factors are to be considered. These are:

• Nature of the product Customised products require direct marketing as they involve interactions between the buyer and the seller. Whereas, standardised products are sold through a number of efforts. Similarly, consumer goods require indirect channels while industrial goods require direct distributions.
• Product complexities Technologically complex products are sold directly whereas, to sell simple products, indirect channels may be employed.
• Perishability of the product Zero or one level channels are preferred for perishable products to avoid the delay in delivery as compared to non-perishable products.

Question 31.
‘Sometimes advertising confuses the buyer’. Do you agree with this? Give reasons in support of your answer. Also state the arguments of supporters of advertisements regarding the above statement. (Compartment 2015)
Answer:
The opponents say that so many advertisements make similar claims and the buyer gets confused as to which one is true and can be relied upon. It may create a state of confusion as to which product he should buy in the market.

However, the criticisms are not true as we know that consumers are rational human beings, who can take their decisions considering various aspects of a product. He can use his wisdom along with information provided by advertisements to make the right choice of purchase.

Question 32.
Identify and explain the marketing management philosophy which implies that products and services are bought not merely because of their quality or brand name, but because they satisfy a specific need of a customer. (Compartment 2014)
Answer:
The marketing management philosophy referred here is ‘Marketing concept’. This concept emphasis that in the long-run, profits can be maximised by identifying and satisfying the needs of present and potential customers. Therefore, customer satisfaction becomes the focal point of all business decisions.

Question 33.
“You don’t close a sale, you open a relationship, if you want to build a long-term successful enterprise.’
Identify the communication tool used by the marketer. State any two features of this communication tool. (Comportment 2014)
Answer:
Personal selling is the communication tool used by the marketer in the given statement.
Two main features of personal selling are:

• Personal form It involves a direct face-to-face communication between the seller and the buyer.
• Development of relationship It helps to develop a personal, long-lasting relationship between the salesman and the customer.

Question 34.
Differentiate between marketing concept philosophy and ‘production concept philosophy on the basis of:
(i) Meaning
(ii) Main focus
(iii) Means (Comportment 2013)

Basis	Marketing Concept	Production Concept
Meaning	It emphasises that in the long-run, projects can be maximised by satisfying present and future needs of customers.	It emphasises that profits can be maximised by producing at a large scale, there by minimising cost of production.
Main focus	Customers needs and wants.	Quantity of product.
Means	Integrated marketing.	Availability and affordability of product.

Question 35.
‘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. (Delhi 2013)
Answer:
The three advantages of branding to customers are as follows:
(i) Product identification Branding helps the customers in identifying the product, e.g. A customer, who is satisfied with ‘Lux’ soap need not buy any other product. Thus, branding facilitates repetitive purchase and reduces the time and efforts involved therein.

(ii) Ensures quality Branding ensures a specific level of quality to customers. This builds up confidence of customers and increases their level of satisfaction. Branded products are well packed to prevent adulteration.

(iii) Status symbol Some brands become status symbols due to their quality. The consumers of these brands feel proud and enjoy status by using them.

Question 36.
Packaging has acquired great significance in the marketing of goods. In the light of this statement, state any three functions of packaging. (Delhi 2013)
Answer:
Packaging refers to the act of designing and producing the container or wrapper of a product.
The three main functions of packaging are as follows:
(i) Product identification Packaging helps a product to be easily identified by the customer, e.g. Maggi noodles in yellow colour, Lays in blue, green and red colour can be identified easily.
(ii) Product protection Packaging protects the contents of a product from spoilage, breakage, leakage, damage, etc. e.g. Air tight containers and packets are used for biscuits, tea, etc.
(iii) Product promotion Packaging promotes the sales of the product. Package is the buyer’s first encounter with the product and is capable in turning the buyer on or off. The colourful attractive packing of the product attracts the customers to buy e.g. Ferrero Rocher Chocolates, Calcium sandoz, etc.

Question 37.
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) dentify the marketing management philosophy adopted by Nisha.
(ii) Explain this philosophy on the basis of
(a) Main focus and
(b) Means and ends. (Delhi 2012)
Or
Ayesha is manufacturing lunch-boxes for school-going children. To maximise profit she decided to improve the quality and added a warmer for the lunch-boxes. Due to this improvement in the product, the sale is increasing day-by-day. Identify and explain the marketing philosophy involved. (Compartment 2012)
Answer:
(i) Product concept or philosophy Firms which follow the product concept, propose that the way to realise business goals is by making high quality products. These firms manufacture the products of superior quality. Nisha is trying to bring improvement in quality, by incorporating a new feature, i.e. adding a water bottle holder in the bag.

(ii) (a) Main focus The main focus of this concept is to improve the quality of products. The marketers now believed that potential exchange would be realised when the products are of high quality. Thus, the firm now focused on making superior products and improving them overtime.

(b) Means Product improvement. Ends Profit through improvement in product quality.

Question 38.
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 or concept on the basis of
(a) Main focus
(b) Means and ends (All India 2012)
Answer:
(i) Production concept or philosophy.
(ii)

• Main focus Main focus of this concept is to maximise the quantity of product.
• Means Availability and affordability of product.
  Ends Earning profits through large scale production and distribution.

Question 39.
Explain market planning, product designing and development as functions of marketing. (Delhi 2012; All India 2011)
Or
Explain any three functions of marketing. (Delhi 2012)
Or
Explain any two functions of marketing. (All India 2011)
Or
Explain the following functions of marketing.
(i) Marketing planning
(ii) Product designing and development (All India 2011)
Or
Explain the following functions of marketing.
(i) Gathering and analysing market information
(ii) Customer support services. (Delhi (C) 2011)
Answer:
The main functions of marketing are as follows:
(i) Gathering and analysing market information A marketer has to gather information about the market. Gathering and analysing market information helps in identifying the needs of the customers. It forms the basis for product development. It also help in identifying the opportunities, threats, strengths and weaknesses of the organisation.

(ii) Market planning The marketer develops appropriate marketing plans to capture or enhance the existing market share. It provides the guidelines to achieve the marketing objectives, e.g. A marketer of colour TVs, having 2% of current market share in the country, aims at enhancing his market share to 20% in the next three years.

(iii) Product designing and development Product designing and development are concerned with anticipating customers’ needs, developing new products and improving the existing products so as to meet the expectations of customers, e.g. When we plan to buy any product say a motorbike, we not only see its features like cost, mileage, etc. but also the design, shape, style, etc.

(iv) Customer support services Customer is the king of modem market. So, customer satisfaction is the main motto of every business firm. Hence, a very important function of marketing management relates to developing customer support services such as after sale services, handling customer complaints, providing credit services, maintenance services, technical services, and consumer information, etc. All these services aim at providing maximum satisfaction to the customers, which is the key to success in modem days.

Question 40.
Explain the role of marketing in a firm. (All India 2011)
Answer:
By marketing orientation, the firm tries to focus on needs and wants of the customers. Every firm wants to live longer and develop. If this happens, the purpose of establishing the firm is fulfilled. Marketing helps in survival and growth of the firm.

Question 41.
What is meant by production concept of marketing? (Delhi 2011; All India 2010)
Answer:
Production concept is based on the belief that profits could be maximised by producing at large scale, thereby reducing the Average Cost of production. A large number of firms believe that it is easy to exchange the products if they are widely available at an affordable price. Thus, availability and affordability were considered as the key to success.

Question 42.
Differentiate between marketing and selling on any three basis. (Delhi 2011)
Answer:
The differences between marketing and selling on three basis are:

Basis	Marketing	Selling
Part of the process	It is a wider term and includes selling also. It covers all activities concerned with identifying and satisfying the wants of the customers.	It is only part of marketing process. It is limited to exchange of goods or services for some consideration.
Transfer of title	It focuses on the needs of customers.	It focuses on transfer of title of goods from sellers to buyers.
Profit maximisation	It aims to earn profits through customer satisfaction.	It aims to maximise profit through increase in sales volume.

Question 43.
What is meant by selling concept of marketing? (All India 2010; Delhi 2010)
Answer:
Firms believe that aggressive selling and promotional efforts will convince a customer to buy a product. It was assumed that the customers will not buy enough, unless they are adequately convinced and motivated to do so. Therefore, aggressive selling and promotional efforts are made to persuade the customers. The use of promotional techniques such as advertising, personal selling and sales promotion were considered essential for selling of products.

Question 44.
What is meant by product concept of marketing? (All India 2010; Delhi 2010)
Answer:
Consumers prefer products with superior quality, performance and features. The companies who believe in the philosophy of product concept are of the opinion that if the quality of goods or services is of good standard, the customers can easily be attracted towards it. The basis of this thinking is that the customers get attracted towards the products of good quality. On the basis of this philosophy, companies direct their marketing efforts to increase the quality and features of their product.

Question 45.
Explain any three elements of marketing mix. (Delhi 2010)
Or
Explain the four important elements of marketing mix. (Comportment 2014)
Or
“The elements of marketing mix are popularly known as 4 Ps of marketing.” Explain briefly these elements of marketing mix. (Comportment 2012)
Answer:
Marketing mix refers to the combination of four basic elements known as four P’s-product, price, promotion and physical distribution.
The various components of marketing mix are: (any three)
(i) Prodiuct mix The product mix refers to mportant decisions related to the products. Product mix involves product planning and development. Decisions are to be taken regarding product, range, quality, size, features, packaging, after sale services, branding, warranties etc. Production must satisfy consumer needs and expectations. These decisions play an important role in attracting the customers to the product.

(ii) Price mix It refers to important decisions related to price levels, pricing strategy and price policies of an organisation. Price is the money paid by a buyer (or received by a seller) in consideration of the purchase of a product or a service. It plays an important role In the marketing of goods. It is often used as a regulator of product’s demand and act as effective tool during stiff competition. Price affects the revenue and profits of a firm.

(iii) Place mix (Physical distribution) It includes decisions about channels of distribution. means of transportation, warehousing, inventory control, etc. Place mix is concerned with linking the sellers and buyers. The choice of channels of distribution depends on nature of product, competition, willingness of middlemen and producer’s financial resources.

(iv) Promotion mix It refers to informing the customers about the product and persuading them to purchase these products. This job is done by the company through the medium of advertisement, personal selling, sales promotion and public relations. Decisions with regard to all these factors directly influence the sale of the product.

Question 46.
Explain the three major categories into which the industrial products can be classified. (All India 2010)
Answer:
Industrial products can be classified into the following major categories:
(i) Materials and parts These include goods that enter the manufacture’s products completely. Such goods are of two types:

• Raw materials
• Manufactured materials and parts

(ii) Capital items These are long-lasting goods that facilitate developing or managing the finished products. These include:

• nstallations
• Equipment

(iii) Supplies and business services These are short lasting goods and services that facilitate developing or managing the finished products. These include:

• Maintenance and repair items like paint, etc.
• Operating supplies like lubricant, writing paper, etc.

Question 47.
‘Pushpanjali Ltd.’ is manufacturing chocolates, biscuits, cakes and other similar products. The company is not generating enough profits. Saurabh, the Marketing Manager of the company got a survey conducted to find out the reasons. The findings of the survey revealed that in spite of better quality, the customers were not able to distinguish the products of the company from its competitors. Though the customers wanted to buy the products of ‘Pushpanjali Ltd.’ again and again because of its good quality, but they were not able to identify its products in the market. Because of this, the sales of the company could not pick up resulting in inadequate profits. Saurabh, the Marketing Manager now realised that ‘Pushpanjali Ltd.’ had forgotten to take one of the most important decisions related to the product.
What decision should ‘Pushpanjali Ltd.’ take so that its customers are able to identify its products in the market? Explain the benefits that may result of ‘Pushpanjali Ltd.’ and its customers if the above decision is taken. (Delhi 2019)
Answer:
‘Pushpanjali Ltd.’ should take dedsion relating to ‘Branding of Product’.
Benefits to ‘Pushpanjali Ltd.’ are:

• Enable product differentiation Due to proper branding, products can be easily differentiated which helps in increasing the sales.
• Helps in introduction of new product Once brand is established through correct use of branding, new products can be easily introduced.
• Benefits to customers are: Refer to Ans 10 on page 200.

Question 48.
Differentiate between marketing and selling on any five basis. (Delhi 2019; Compartment 2012; All India 2012)
Answer:
The differences between marketing and selling are: (any five)

Basis	Marketing	Selling
Scope	It is a wider term and includes selling also. It covers all the activities concerned with identifying and satisfying the wants of the customers.	It is only a part of marketing process. It is limited to exchange of goods or services for some consideration.
Focus	It focuses on the needs of customers.	It focuses on transfer of title of goods from sellers to buyers.
Objective	It aims to earn profits through customer satisfaction.	It aims to maximise profit through increase in sales volume.
Start and end	It starts much before production and continues even after sale.	It starts after production and ends with the sale of product.
Strategy used	It involves strategies like product promotion, pricing and distribution.	It involves efforts like promotion and persuasion for selling the product.
Emphasis	It emphasises on development of product according to customers’ needs .	It emphasises on bending the customers according to product.

Question 49.
Differentiate between advertising and personal selling. (Delhi 2019; Compartment 2012; All India 2012)
Answer:
The differences between advertising and personal selling are:

Basis	Advertising	Personal Selling
Form	Advertising is a means of indirect and impersonal communication.	Personal selling is a means of direct or face to face communication.
Message	There is uniformity of message which means that the message is the same for all the customers.	The message has no uniformity which means it can be changed, keeping in view the behaviour of the customers.
Time	It takes a little time in conveying any information to the customers.	It takes more time in conveying information to the customers.
Feedback	This gives no information about the reactions of the customers.	The reaction of the customers becomes immediately known or clear.
Media	TV, radio, newspapers and magazines.	Through salesmen.

Question 50.
Distinguish between ‘Product’ and ‘Production’ concepts of marketing philosophies on the following basis. (Delhi 2019)
(i) Starting point
(ii) Main focus
(iii) Means
(iv) Ends
Answer:

Basis	Product	Production
Starting Point	Factory	Factory
Main focus	Quality performance and features of product	Quality of product
Means	Product improvements	Avalable and affordability of product
Ends	Product through product quality	Profit through volume of production

Question 51.
Explain the following function of marketing.
(i) Product designing and development
(ii) Standardisation and grading (Delhi 2019)
Answer:

• Refer to Ans 14 (iii) on page 202.
• Refer to Ans 3 (ii) on page 214.

Question 52.
Explain the following functions of marketing.
(i) Marketing planning
(ii) Customer support services (Delhi 2019)
Answer:
Refer to Ans 14 (ii), (iv) on page 202.

Question 53.
After acquiring the necessary knowledge and skills on starting an Aloevera Farm, Ashok wanted to be the leading manufacturer of Aloevera products worldwide. He observed that the products were expensive as the demand of the products was more than the supply. He was also keen to promote methods and practices that were economically viable, environmentally sound and at the same time protecting public health.

Ashok’s main consideration was about the amount of money paid by the consumers in consideration of the purchase of Aloevera product. He also thought that competitors prices and their anticipated reactions must also be considered for this.

After gathering and analysing information and doing correct marketing planning, he came to know that the consumers compare the value of a product to the value of money they are required to pay. The consumers will be ready to buy a product when they perceived that the value of the product is at least equal to the value of money which they would pay.

Since, he was entering into a new market, he felt that he may not be able to cover all costs. He knew that in the long run the business will not be able to survive unless all costs are covered in addition to a minimum profit.

He examined the quality and features of the products of the competitors and the anticipated reactions of the consumers. Considering the same he decided to add some unique features to the packaging and also decided to provide free home delivery of the products.
The above case relates to a concept which is considered to be an effective competitive marketing weapon. In conditions of perfect competition most of the firms compete with each other on this concept in the marketing of goods and services.
(a) dentify the concept.
(b) Explain briefly any four factors discussed in the above case related to the concept so identified. (CBSE 2018)
Answer:
(a) Pricing 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 regulator of demand of a 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.

(b) Four factors discussed in the above case are:
(i) Product cost The total cost of product includes production, selling and distribution costs. In the long run the firm strives to cover all their costs. The cost sets the minimum level or floor price for a product. In addition to that firm aims to earn profit margin over and above the costs.

(ii) The utility and demand It is necessary to anticipate the utility and demand of a product, while fixing the price, as if a product is offering higher utility, one can easily charge high price from the customer.
Whereas, if utility is low, one cannot charge high price for such products. On the other hand, if the demand is elastic, price should be set at a lower level and if the demand is less elastic or inelastic price can be set at a higher level.

(iii) Extent of competition in the market The price of a product can be set upto the higher limit, if* the extent of competition is low in the market, and vice-versa. Competitors’ price, their reactions, their product, quality and features must be considered before fixing the price.

(iv) Government and legal regulations To protect the interest of general public, the government has all the rights to control the prices of various products and services by including the products in the category of essential commodities such as drugs, some food items, LPG, etc. With government intervention, there can be a check on the activity of monopolist as they cannot charge unfairly high price for essential commodities.

Question 54.
Sara was pursuing her graduation. Everyday she saw her mother working tirelessly at home after coming back from her work-place. She decided to start a tiffin service to increase he family income. To begin with she started supplying tiffin only in the neighbourhood. Everyday she detailed out the menu after consulting her mother. For informing the people about her service, she desinged a beautiful informative pamphlet, got it printed and started distributing it through the daily newspapers. She also appointed two delivery boys to deliver tiffins.
The business was slow to begin with but picked-up well afterwards. She was able to earn a’ profit of 20% of the revenue in the first month.
(a) Identify the promotional tool used by Sara to communicate to the customers about her tiffin service.
(b) State any three roles of the promotional tool identified in (a) above in marketing of goods and services. (Compartment 2018)
Answer:
(a) The promotional tool used is ‘Advertising’.

(b) Roles of this promotional tools are:

• Mass reach
• Expressiveness
• Economy

Question 55.
A company was marketing ‘Juicers’ which were very popular due to their quality and after sale services provided to the customers. The company was a leading company in the market and earning huge profits. 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 in the public was damaged. Top management became concerned when the profits for the current quarter fell steeply. On analysis, it was revealed that ignoring the after sales services was its reason. Therefore, the company took all possible measures to protect and promote its favourable image. As a result the goodwill of the company improved in the society.
(i) Name and state the communication tool used by the marketer in the above case to improve its image.
(ii) Also explain role of the tool as identified in part (i). (All India 2016)
Answer:
(i) The communication tool used by the marketer in the above case is ‘Public Relations.’ Public relation is an important element of marketing. It means maintaining relations with public. By maintaining such relations, companies create goodwill. Public relations evaluate public attitudes, identify the policies and procedures of an organisation with the public interest to earn public understanding and acceptance.

Public does not mean only customers, but it includes shareholders, suppliers, intermediaries, customers, etc. Thus, it helps in maintaining and establishing mutual understanding between an organisation and public.

(ii) Role of public relations The role of public relations can be discussed with respect to functions performed by public relations department. These functions are:

• Smooth functioning of business It helps in analysing trends, predicting their consequences, counselling organisational leaders and implementing planned programme of action and thus helps in smooth functioning of business and achievement of objectives.
• Building corporate image and brand equity Public relations covers a wide range of tactics, tools and programmes to promote and protect company’s image and products. It uses the tools to build corporate image which ultimately affects favourably on its products.
• Launching new products The good image promotion itself lends credibility to new launches of the organisations.
• Press relations The public relations depart-ment is in contact with the media to present true facts and a correct picture about the company, otherwise, news can get distorted if it is taken from some other source.
• Corporate communication The public relations department promotes the image of the company by communicating with the public and the employees of the organisation.
• Lobbying The public relations department is liable to maintain healthy relationships with government officials, ministers of industry and finance, associations of commerce and industry and etc. At the same time, they have to be proactive in promoting or defeating regulations that affect them.
• Counselling The public relations department advises the management on general issues that affect the general public and the goodwill of the company.

Question 56.
Diksha Ltd. was marketing dish washers which were very popular due to their quality and after sale services provided to the customers. The company was a leading company in the market and earning huge profits. Because of huge profits the company ignored its after sale services.

As a result its relations with the customers got spoiled and the image of the company was damaged in the eyes of the public. Top management became concerned when the profits for the current quarter fell steeply. On analysis it was revealed that ignoring after sale services was its reason. Therefore, the company took all possible measures to protect and promote its image. As a result the goodwill of the company improved in the society.
(i) Name and state the communication tool used by the marketer in the above case to improve its images.
(ii) Also explain role of the tool as identified in part (i). (Foreign 2016)
Answer:
The communication tool used by marketer is ‘Public Relations’. For its explanation, refer to Ans 9 on page 206 and 207.

Question 57.
Your company has set up a food processing unit in Kashmir with a production capacity of 10,000 litres of apple juice per day. The company plans to market the apple juice in tetra pack of 100 mililitres. Design a label for the same. (Compartment 2015)
Answer:

Question 58.
State any five functions of labelling. (Compartment 2014)
Or
What is meant by labelling? State any four functions of labelling. (Delhi 2011, 2010; All India 2011)
Answer:
Labelling Label may be a simple tag attached to the product (in case of local unbranded products) to complex graphics that are part of the package (like in branded products). Labels are useful in providing detailed information about the product like its content, method of use, etc. Labelling refers to the process of designing and creating a label for a product.
The functions of labelling are:
1. dentification or product/brand It helps in identifying the product or brand, e.g. The name stamped on a cold drink identifies it as Pepsi, Coke, Fanta, etc.

2. Helps in promotion of products A carefully designed label can attract attention and give reason to purchase. Labels play an important role in sales promotional schemes launched by companies, e.g. The label on the package of a shaving cream mentions ‘40% extra free’ or package of a toothpaste mentioning, free tooth brush inside or save ₹ 15′.

3. Providing information required by law Labelling provides information required by law. e.g. The statutory warning on the package of cigarette ‘Smoking is injurious to health’.

4. Grading of products It also helps in grading the products into different categories. Different types of tea is sold by same brand under the category of yellow, red and green label.

5. Describe the product and specify its contents It enables the manufacturer to give clear instructions to the consumer about the proper use of his product. It specifies and helps to describe the product, its usage, cautions in use, contents, manufacturing and expiry dates, price, quantity, etc.

Question 59.
What is meant by packaging? State any four functions of packaging. (Compartment 2014; All India 2011; Delhi 2011)
Answer:
Packaging refers to the act of designing and producing the container or wrapper of a product. It is concerned with the determination of convenient size in which the product is to be put in the market and the creation of proper packages for different sizes, in order to avoid spoilage, leakage, breakage and pilferage of the product.

Functions of packaging Refer to ans 11 on page 200 and 201.

Question 60.
State any five characteristics of a good brand name. (Compartment 2014)
Or
What is meant by brand name? State any five characteristics of a good brand name. (Delhi 2011)
Answer:
The five characteristics of good brand name are:

• Suggestive A brand name should suggest something about a product’s benefits, its use, quality, product nature, purpose, performance, etc.
• Short and easy The name should be short, simple, easy to pronounce, recognise and remember e.g. Ponds, VIP, Rin, Vim, etc.
• Capable of registration It should be capable of being registered and protected legally under the legislation.
• Distinct A brand name should be unique, attractive and distinctive e.g. Sun Light, Fair and Glow, Gold Flake, etc.
• Adaptable The brand name should be adaptable to packaging or labelling requirements, to different advertising media and different languages.

Question 61.
What is meant by physical distribution? Explain its major components. (Compartment 2014)
Or
What is meant by physical distribution of goods? State any three components of physical distribution of goods. (All India (C) 2011)
Or
“Physical distribution includes some components for physically moving the goods from manufacturers to the customers.” Explain these components. (All India 2012)
Answer:
Physical distribution of goods is concerned with making the goods and services available at the right place, so that people can purchase the same.

Components of physical distribution of goods are: (any three)
1. Order processing A good physical distribution system ensures an accurate and speedy processing of order. Processing of orders involves several steps viz receiving the orders, dispatch of goods, recording it in books, billing, collection of payment, etc.

2. Transportation It is the means of carrying goods from manufacturers to consumers. It is one of the major elements of physical distribution. It is important because unless the goods are physically made available at various places, the sale cannot be completed.

3. Warehousing It refers to the act of storing and assorting products in order to create time utility in them. Need for warehousing arise due to time gap between the production and consumption of goods.

4. Inventory control It is an important decision in physical distribution in respect of deciding the level of inventory. High level of inventory ensures product availability when demand arises but increases the cost of carrying the inventory. Thus, a balance has to be maintained between the cost and consumer satisfaction.
The level of inventory depends upon estimated demand, sales forecasts, cost of inventory etc.

Question 62.
State the factors determining the choice of channels of distribution. (Foreign 2014; Compartment 2014; Delhi 2014)
Answer:
Channel of distribution is the path through which ownership as well as possession of goods passes from producers to consumers.

Factors determining the choice of channels of distribution are as follows:
(i) Market related factors The choice of channels is affected by many market related factors. These are

• Size of market The number of channel constituents depends largely on the customer base for the products. Larger markets require indirect channels, and vice-versa.
• Quantum of trade Direct channels of distribution are used where the quantity of purchase is big. Indirect channels of distribution are used mainly where the size if purchase is small and widely spread.

(ii) Product related factors Before deciding channel of distribution for a product, various product related factors are to be considered. These are:

• Nature of the product Customised products require direct marketing as they involve interactions between the buyer and the seller. Whereas, standardised products are sold through a number of efforts. Similarly, consumer goods require indirect channels while industrial goods require direct distributions.
• Product complexities Technologically complex products are sold directly whereas, to sell simple products, indirect channels may be employed.
• Perishability of the product Zero or one level channels are preferred for perishable products to avoid the delay in delivery as compared to non-perishable products.
• Price of the product High priced products are mostly sold directly whereas, cheap or inexpensive products are sold with the help of a large number of intermediaries.

Question 63.
What is meant by advertising? State the role of advertising in marketing. (Comportment 2014)
Answer:
Advertising is an impersonal form of communication, which is paid for by the marketers (sponsors) to promote some goods or services. Most common modes of advertising are newspaper, television and radio.

Advantages to manufacturers are as follows:

• Provides economies of scale Large and steady demand enables a manufacturer to sell more and to produce goods on large scale. Mass production on regular basis helps to reduce the costs of production and distribution.
• Reduces dependence on middlemen Advertising helps to establish a direct contact between manufacturers and consumers. It is easy to find consumers, as they are made aware of the availability and utility of goods.

Question 64.
Describe the role of public relations in the promotion of products and services. (Comportment 2014, 2013)
Or
Explain the role of ‘public relations’ in marketing management. (All India 2013)
Answer:
Public relations The concept of public relations involves a variety of programmes to promote and protect a company’s image or its products. It is the sustained and planned effort to influence public opinion and to establish and maintain mutual understanding between an organisation and the public.

Role of public relations in marketing management Refer to Ans 9 (ii) on page 207.

Question 65.
“Though 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. (Compartment 2014)
Answer:
Objections of advertising are as follows:
1. Undermines social values Advertisement sometimes compels to use those commodities which we do not require. In this way, our wants are unnecessarily increased. If wants remain unsatisfied, we feel discontented. Desire to have more and more things are multiplying and lifestyle is badly affected. Some advertisements show new lifestyles, which cannot be socially approved.

2. Encourage sale of inferior goods Advertisement generally speaks very high of the products. Sometimes products advertised are defective and adulterated. In this way, consumers are misled and suffer losses with the use of commodities instead of benefits.

3. Adds to cost Advertising adds to the cost of product and the price of the commodity unnecessarily increases. The consumers pay for advertised commodity more than what they would have paid for the same unadvertised commodity.

4. Confuses the buyer There are so many advertisements of certain products such as TV, detergents, etc which confuses the consumer as which products should be purchased and which is better.

Question 66.
Give the meaning of ‘price’ as an element of ‘marketing mix’. State any three factors which affect the price determination of a product. (Delhi (C) 2011)
Answer:
Price may be defined as the amount of money paid by a buyer in consideration of the purchase of a product or a service. Pricing involves determination of price of the product. Pricing plays an important role in the marketing of goods and services. It is often used as a regulatory of product’s demand. Pricing also affects the revenue and profits of a firm.

The four factors which affect the price determination of a product are as follows:

• Objective of pricing Firms may include profit maximisation, obtaining market share leadership, surviving in a competitive market and attaining product quality leadership.
• Cost Price charged must enable the businessman to cover his cost including a reasonable margin of profit.
• Competition It is necessary to take into consideration prices of the products of the competing firms prior to fixing the price. In case of cut-throat competition, it is desirable to keep the price low.
• Demand for product Intensive study of demand for products and services in the market should be undertaken before price fixation. If demand is relatively more than supply, higher price can be fixed.

Question 67.
Give the meaning of channels of distribution. State any three functions of channels of distribution. (Delhi (C) 2011; All India (C) 2011)
Answer:
Channels of distribution It refers to the path through which the ownership as well as possession of goods transfer to the consumers from the producers.

The three main functions of channels of distribution are as follows:

• Sorting Middlemen procure goods of different nature, size and quality from several sources. They sort these goods into homogeneous groups on the basis of size and quality.
• Accumulation Middlemen build up a stock of products for maintaining continuous flow of supply to customers.
• Allocation It involves breaking homogeneous stock into smaller marketable lots.

Question 68.
Define marketing and state any three functions of marketing. (Delhi (C) 2010)
Or
What is meant by marketing? State any three functions of marketing. (All India 2010)
Answer:
Marketing is the sum total of all those activities which move goods and services from the producers to the consumers.
According to Philip Kotler, “Marketing is that social process by which individual and groups obtain what they need and want through creating offerings and freely exchanging products and services of value with others”.

The three main functions of marketing are:
(i) Marketing planning Refer to Ans 14 (ii) on page 202.

(ii) Production designing and development Refer to Ans 14 (iii) on page 202.

(iii) Pricing of products Price refers to the amount of money which the customers have to pay to obtain a product. Price is an important factor affecting the success or failure of a product in the market. The demand for a product or service is related to its price. Generally, lower the price, higher would be the demand for the product and vice-versa. Pricing refers to the process of fixing a legible price for the product in the market.

Question 69.
Define marketing management. State any three objectives of marketing management. (All India 2010)
Answer:
According to Philip Kotler, “Marketing management is an art and science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer values of management.” It refers to planning, organising, directing and control of the activities which facilitate exchange of goods and services between producers and consumers of products and services.

The three main objectives of marketing management are as follows:

• Creation of demand The marketing manager always tries to create the demand not by unfair means but by analysing the needs and wants of the customers and then producing the products, which satisfies the customer’s need.
• Market share Every business firm wants to capture a larger share of the market. Therefore, marketing techniques adopted by marketing manager help to get a big share in the market.
• Goodwill and reputation Marketing management helps a firm in building the image for its products through advertising, high quality, caring for customer satisfaction, after sale service, smooth supply, etc.

Question 70.
“An important task in the marketing of goods 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. (All India 2010)
Answer:
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 to complex graphics containing essential information such as price, quantity, expiry date, etc.
Label for the Packet of Juice
(i) Describe the Product and Specify its Contents

• Orange Juice with extra calcium and low fat. It gives you extra energy.
• Contains sugar, orange, no added flavour, etc.

(ii) Identification of Product or Brand
(a) Helps to identify from other brand.
(b) Real orange juice.
(c) Real manufacturer-Jaipur or Delhi.
(d) Net weight 150 ml, 250 ml, 500 ml, etc.
(e) Retail price ₹ 15, 20, 30, etc.
(f) Batch no XYZ

(iii) Grading of Product
(a) Real orange juice for women, children and old people.

(iv) Helps in Promotion of Product
(a) Real juice piyo khushiya manao.
(b) 40% extra with 1 liter pack.

(v) Providing information required by law
(a) Best before six months from the date of manufacturing.

Question 71.
“An important task in the marketing of goods 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 liquid soap and highlight the important information to be provided on it. (Delhi 2010)
Answer:
A label contains essential information about a product.
Therefore, following are the important information to be be provided on the label of liquid soap

Question 72.
Explain any four factors, which affect the determination of the price of a product. (Delhi 2019, 2013)
Or
There are a number of factors that affect the fixation of price of a product. State any five such factors. (Comportment 2014)
Or
“Pricing of a product is an important and effective competitive weapon in marketing, which depends upon various factors”. Explain any three such factors. (All India 2013)
Or
“Price of a product is influenced by many factors.” Explain any five factors influencing pricing. (Delhi 2010)
Or
“Price occupies an important place in the marketing of goods and its determination is affected by many factors”. Explain any four such factors. (All India 2010)
Or
You are a toothpaste manufacturer and you have introduced a new brand toothpaste in the market. How will you determine the price of your product? Explain by giving any three points. (All India 2010)
Or
Name that element of marketing mix which affects the revenue and profits of a firm. Explain any six factors which help in determining this element. (Delhi 2010; All India 2010)
Answer:
Pricing of a product is influenced by many factors. Some of them are as follows:
(i) Pricing objective Firms objectives may include profit maximisation, obtaining market share leadership, surviving in a competitive market and attaining product quality leadership. While deciding upon the price of a product a firm has to see, which of the above mentioned pricing objective, it would consider and fixes the price of its product accordingly.

(ii) Product cost It includes the cost of procuring, distributing and selling the product. It is important that the price should recover Total Costs (Fixed Costs + Variable Costs) in the long-run including a profit margin over and above the costs.

(iii) Extent of competition in the market Competition is another important consideration while pricing a product. Under monopoly situation, a firm can enjoy complete freedom in fixing the price of its product. But in case of intense competition, a firm should fix lower price of its product to capture a large market share.

(iv) Government and legal regulations In order to protect the interest of public against unfair practices, government fixes the price of essential commodities, e.g. medicines, petrol, sugar, etc. A firm should not charge a higher price, otherwise it would invite government action.

(v) Demand and supply conditions Whether the price of the product should be high or low, depend on the demand and supply conditions.

(vi) Marketing method use The price of the product also gets affected by the methods of marketing used by a firm to promote the products. If a firm is using intensive advertising to promote the sale of a product, then it will charge a higher price for it.

Question 73.
Medi Instruments Ltd. is a company dealing in the distribution of medical instruments. The company recently imported 15000 units of sugar testing machines to test the sugar levels without taking blood samples. For deciding the marketing strategy, the Chief Executive Officer of the company called a meeting of the marketing heads of different zones.

In the meeting, Sanjay, the North Zone Marketing Head, suggested that since the machines were sophisticated they need to visit hospitals personally to explain its working to the hospital staff who would be using the machines. He also suggested that additional trained people may be recruited for the same. Hitesh another Zonal Head, added that since lot of money had been spent on the import of the machines, the company was short of funds to pay the additional staff, as suggested by Sanjay.

Revansh, a newly appointed Zonal Head of South Zone, suggested that since the size of the order was not large a detailed study of the factors determining the choice of channels of distribution was required before making the right choice.
(i) Identify the factors influencing the choice of channels of distribution which were discussed in the meeting.
(ii) Also, explain briefly the other consideration to be taken care of in each factor identified in part. (All India 2017; Delhi 2017)
Answer:
(i) The factors influencing choice of channels of distribution discussed here are:
(a) Product related factor Product complexity Since, the product marketed by the company require technical detailing by the personnel, shorter channels of distribution will be preferred. As against this, non-complex products usually prefer longer channels.

(b) Company related factor Financial strength Since, the company is running short of funds, it may make use of indirect channels of distribution. If the financial position of the company had been strong, direct channels could have been used.

(c) Competitive factor Size of the order In the given case, the size of the order is not very large, therefore the company may prefer longer channels of distribution. If the order would have been large, direct channels could have been used.

(ii) The other consideration related to each of the factor identified above are:
(a) Product related factor Nature of the product While industrial goods are usually technical, made to order and expensive products purchased by few buyers, they require shorter channels. Whereas, consumer goods which are standardised, non-expensive, less bulky and frequently demanded, require longer and indirect distribution channels.

(b) Company related factor Degree of control If the management wants to have greater control over distribution, shorter or direct channels will be preferred, and vice versa.

(c) Market factor Number of buyers When the number of buyers is small and concentrated in a small place, shorter channels may be used. But, if the number of buyers is large and market is widespread, longer channels should be preferred.

Question 74.
Radhika was a student of Business Studies of class XII. Her father was a farmer who grew different varieties of rice and was well-versed about various aspects of rice cultivation. He was also selected by the government for a pilot-project on rice cultivation.

As a project-work in Business Studies she decided to study the feasibility of marketing good quality rice at a reasonable price. Her father suggested her to use internet to gather customers’ views and opinions. She found that there was a huge demand for packaged organic rice. She knew that there were no pre-determined specifications in case of rice because of which it would be difficult to achieve uniformity in the output. To differentiate the product from its competitors, she gave it the name of ‘Malabari Organic Rice’ and classified it into three different varieties namely- popular, classic and supreme, based on the quality. She felt that these names would help her in product differentiation.
Explain the three functions of marketing, with reference to the above paragraph. (All India 2015)
Answer:
Three functions of marketing are:
(i) Gathering and analysing market information/market research To gather market information, the marketer makes a SWOT analysis, i.e. the analysis of strengths and weaknesses of the organisation and the available opportunities and threats. Collection of market information is necessary to identify the views and opinions and needs of customers before taking decisions regarding what opportunity can be best pursued by the firm.
As in this case, Radhika gathered information from internet regarding the customer’s views , and opinions.

(ii) Standardisation and grading Radhika analysed that there are no pre-determined specifications in case of rice so she decided to classify them on the basis of quality. Thus, grading function of marketing was done.

Standardisation The term ‘standardisation’ is derived from the work ‘standard’, which means the presence of certain desirable qualities like durability, safety, purity and other features like design, weight, colour, etc in a product. Standardisation refers to the process of setting certain standards for a commodity on the basis of its desired qualities. It implies that the different units of the commodity are of a specified and uniform quality. It facilitates sale of goods through description and increases the confidence of consumers.

Grading It refers to the process of dividing products into classes made up of units possessing similar characteristics. It involves division of products into classes, lots or groups in accordance with pre-determined grades of quality. Grading helps in fixing and securing remunerative prices for the products.

(iii) Branding To differentiate the product from its competitors she gave a name to the product as ‘Malabari Organic Rice’. Branding refers to the process of giving a name, sign, symbol or a combination of all to a product for creating its identification. It helps to differentiate the product from other products available in the market. It also helps to build customer’s loyalty and promoting its sales.

Question 75.
The choice of an appropriate channel of distribution depends upon a number of factors. Explain any four such factors. (All India 2015)
Or
‘Choice of channels of distribution depends on various factors.’ Explain any four factors which affect the choice of channels of distribution. (All India 2013; Delhi (C) 2012)
Or
‘Choice of an appropriate channel of distribution is a very important marketing decision, which depends on various factors’. Explain any three such factors. (All India 2013)
Answer:
Factors which affects the choice of channel of distribution are as follows:
(i) Market related factors Refer to Ans 16 on page 209.

(ii) Product related factors Refer to Ans 16 on page 209.

(iii) 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.
(a) Degree of control Manufacturers ambition to control the channel of distribution affects its selection. Consumers should be approached directly by such type of manufacturer, e.g. Electronic goods sector with a motive to control the factors service levels provided to the customer at the point of sale are resorting to company owned retail counters.
(b) Financial strength A company which has strong financial base can evolve its own channels. On the other hand, financially weak companies would have to depend upon middlemen. Company desiring control on distribution of goods and services should use short channels.

(iv) Competitive factors The choice of channel is also affected by the channel selected by the competitors in the same industry.

Question 76.
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.lt regularly uses different communication tools to increase its sales.
The above para describes the combination of variables used by Hayarpm to prepare its market offering. Identify and explain the variables. (Delhi 2015)
Answer:
‘Hayaram’ chain store in using the four variables of marketing mix, viz product, promotion price and place to prepare its market offering.
(i) Product It means goods or services or ‘anything of value’ which is offered to the market for exchange.
‘Hayaram’ is offering variety of products, which include chips, biscuits, sweets and squashes to the Indian consumers under one roof through its chain stores.
From the customer’s point of view, a product is a bundle of utility as it provides three types of benefits to the consumers, viz
(a) Functional benefits.
(b) Psychological benefits.
(c) Social benefits.
It also includes the extended product or what is offered to the customer as after sales services, handling complaints, credit servies, etc. The product mix refers to important decisions related to the product such as quality of product, design of product, packaging, etc.

(ii) Promotion It refers to the process of informing the customers about the product and then persuading them to buy it. Most marketing firms use a combination of advertising, sales promotion, personal selling, and public relations to promote their products.

Therefore, the combination of any of these techniques to attain the marketing objectives is called promotion mix. In our case study, ‘Hayaram’ chain stores is using different communication tools of advertising, sales promotion and public relations. For sales promotion, it is giving regular discounts to its customers and also easy credit terms to its retailers.

(ii) Price It refers to the amount of money that the customer has to pay in the market to obtain the product. The marketers have to take a number of decisions regarding price level, pricing strategy, pricing objectives, discounts, etc, together known a price mix.
‘Hayaram’ has priced its product comparatively higher than its competitors as it sells quality products.

(iv) Place Place or physical distribution covers all the activities required to physically move the goods from manufacturers to customers.
The two major decision areas under this function are:

• Decision regarding channels of distribution
  Physical movement of goods from the place where it is produced to the place of consumption.

Thus, place mix involves a number of decisions relating to inventory control, intermediaries, negotiation, storage, warehousing, transportation, etc.
‘Hayaram’ not only sells through its own retail stores but also distributes its products through various grocery stores so that the products are available to customers at the right place, in right quantity and at the right time.

Question 77.
Explain the following functions of marketing. (All India 2014)
(i) Product designing and development;
(ii) Standardisation and grading;
(iii) Customer Support Services;
(iv) Pricing of Products.
Answer:
(i) Refer to Ans 14 (iii) on page 202.

(ii) Standardisation It refers to the process of setting standards regarding quality, price, packaging, technology, equipment, etc for the production of a product. This ensures uniformity and consistency in output and reduces the need for inspection, testing and evaluation of the products.
Grading It is the process of classifying the products into different groups, on the basis of quality, size, features, etc. It is necessary for such goods which are not produced according to predetermined specifications, such as agricultural goods. Grading ensures that the goods belong to a particular quality and helps the marketer to fix prices easily.

(iii) Refer to Ans 14 (iv) on page 202.

(iv) Pricing of product Refer to Ans 22 on page 210 and 211.

Question 78.
Explain the following functions of marketing: (Compartment 2014)
(i) Marketing planning
(ii) Product designing and development
(iii) Pricing of products
(iv) Standardisation and grading
Answer:
(i) Marketing planning Refer to Ans 14 (ii) on page 202.
(ii) Product designing and development Refer to Ans 14 (iii) on page 202.
(iii) Pricing of products Refer to Ans 22 on page 210 and 211.
(iv) Standardisation Refer to Ans 7 (ii) on page 216.

Question 79.
Explain the concept of personal selling and any four qualities of a good salesman. (Delhi 2013; Comportment 2013)
Answer:
Personal selling refers to the oral presentation of message in the form of conversation with one or more prospective customers for the purpose of making sales.

Qualities of good salesman are as follows:

• Physical qualities Good looking, healthy.
• Psychological qualities Should be sweet natured, possess good behaviour, should be mentally healthy, intelligent and creative.
• Technical quality Should be fully conversant with technical knowledge of the product.
• Communication skills Should be pleasing, polite and courteous. He should have good oratory skills and he should also be a good listener.

Question 80.
Explain the role of ‘advertising’ in marketing management. (All India 2013)
Answer:
Advertising is an impersonal form of communication, which is paid for by the marketers (sponsors) to promote some goods or services. Most common modes of advertising are newspaper, television and radio.

Advantages to manufacturers are as follows:

• Provides economies of scale Large and steady demand enables a manufacturer to sell more and to produce goods on large scale. Mass production on regular basis helps to reduce the costs of production and distribution.
• Reduces dependence on middlemen Advertising helps to establish a direct contact between manufacturers and consumers. It is easy to find consumers, as they are made aware of the availability and usefulness of goods.

Advantages to consumers are as follows:
(i) Educates consumers Advertising provides useful information to consumers about products and their uses. It helps them to develop better habits and good lifestyle, e.g. Advertisements remind children to regularly brush their teeth, housewives to use better detergents and managers to use personal computers.

(ii) Consumer’s surplus Advertising makes goods available to consumers at lower prices by expanding sales and production. It also helps to eliminate cost of middlemen. In order to support advertising, manufacturers maintain quality of their products. Consumers get surplus in the form of lower prices and better quality.

Advantages to society are as follows:
(i) Generates employment Advertising provides direct employment to a large number of people engaged in designing, writing and issuing advertisements. Indirectly, advertising creates employment opportunities by increasing the volume of sales and production.

(ii) Improves standard of living Advertising helps people in improving their lifestyles. It provides knowledge about new and better things. Such education facilitates progress of civilisation.

Question 81.
What is meant by sales promotion? Explain any five sales promotion techniques with an example of each. (Comportment 2013)
Answer:
Sales promotion Sales promotion refers to all the immediate activities, which are undertaken for the purpose of increasing immediate sales.
Sales promotion refers to short-term incentives to boost sales in a short period and it supplements other promotional efforts such as advertising, personal selling and publicity, aimed at stimulating market demand for products. The commonly used sales promotion techniques are:
(i) Rebate When the products are offered at special, reduced prices, usually to clear off excess inventory, it is called rebate, e.g. ₹ 20,000 off on the purchase of Honda City till 25th December, 2014.
(ii) Discount When products are offered to customers at a price, less than the price, the difference between the list price and the price offered is known as discount, e.g. A shoe company’s offer of ‘discount upto 50%’.
(iii) Refunds It refers to the act of refund of a part of price paid by customer on return of empty wrappers or presenting a proof of purchase of product.
(iv) Product Combinations Offering a product along with another product is called product combination, e.g. Buy a cell phone and get a sim card free, buy Maggie ketchup and get Maggie Noodles free, etc.
(v) Quantity Gift Sellers devise special packages, which gives extra quantity of the product to the buyers at less price or no price, e.g. ‘Buy two get one free’ available offer on Pears soap, 30% extra on Dettol liquid soap, etc.

Question 82.
Consumer products are classified on different basis, ‘durability of the product’ is one of them. Explain any three types of products in this category. (All India 2012)
Answer:
On the basis of durability of products, consumer products are classified as follows
(i) Non-durable products The consumer products which are normally consumed in one or few uses are called non-durable products, e.g. Toothpaste, detergents, bathing soap and stationery products, etc.

(ii) Durable products Those tangible consumer products which normally survive many uses. e.g. TV, radio, refrigerator, bicycle, sewing machine and kitchen gadgets, are referred to as durable products. These products are generally used for a longer period.

(iii) Services Services are intangible in form by services, we mean those activities, benefits or satisfactions that are offered for sale. e.g. dry cleaning, watch repairs, hair cutting, postal services, services offered by a doctor and a lawyer.

Following are the important features of services:

• Services are intangible.
• A service is inseparable from its source.
• Services can not be stored.
• Services are highly variable as their type and quality depend on the person providing them.

Question 83.
Consumer products are classified on different basis. ‘Shopping efforts involved’ is one of them. Explain any three types of products in this category. (Delhi 2012)
Answer:
Consumer products classified on the basis of ‘shopping efforts involved’ are as follows:
(i) Convenience products Those consumer products which are purchased frequently, immediately and with least time and efforts are known as convenience goods, e.g. Cigarettes, ice-creams, medicines, newspaper, etc. These products have, low unit value have a regular demand and are bought in small quantities.

(ii) Shopping products These are those consumer goods in the purchasing of which buyers devote considerable time, to compare the quality, price, style, suitability, etc at several stores before making the final purchase, e.g. clothes, shoes, jewellery, furniture, radio, television etc.

(iii) Speciality products These products are those consumer goods which have certain special features because of which people make special efforts in their purchase.

These products are of high value and manufactured by reputed firms.
For such products, the buyers have brand preference and insistence. Hence, the consumer may wait or suffer inconveniences to get the desired goods, e.g. Art and artifacts, Rolex watches, etc.

Question 84.
Name the element of marketing mix in which a set of firms and individuals creates possession, place and time utility and helps in market offering. Also explain any five important functions performed by this element. (Delhi 2011; All India 2011)
Answer:
The element is ‘Place Mix/Physical Distribution’.

Functions performed by this elements are:
(i) Sorting Middlemen procure supplies of goods from a variety of sources, which is often not of the same quality, nature and size. They sort these goods into homogeneous groups.
(ii) Accumulation This function involves accumulation of goods into larger homogeneous stocks for continuous flow of supply.
(iii) Allocation It involves breaking homogeneous stock into smaller marketable lots. e.g. Once cashew nuts are graded and large quantities are built, these are divided into convenient packs of say 1 kg, 500 gms, to sell them to different types of buyers.
(iv) Assorting Middlemen build assortment of products for resale. There is usually a difference between the product lines made by manufacturer and the assortment or combinations desired by the users, e.g. A cricket player may need a bat, a ball, wickets, gloves, helmet, a t-shirt and a pair of shoes.
(v) Product promotion Mostly advertising and other sales promotion activities are performed by manufacturers. Middlemen also participate in certain activities such as demonstrations, special displays, contests, etc. for increasing the sale of products.

Question 85.
Identify and explain the promotional tool of marketing mix which plays a persuasive, service and informative role and thereby link a business firm to its customers. Also explain by giving any four reasons how this tool helps in increasing the sales of businessmen. (Delhi 2011)
Answer:
Personal selling It refers to the oral presentation of message in the form of conversation with one or more prospective customers for the purpose of making sales.
Companies appoint sales persons to contact prospective buyers and create awareness about the product and develop product preferences with the aim of making sale.

Importance of personal selling to a business Personal selling is an effective tool of promotion mix. Its importance to business is judged by the following factors:

• Flexible tool It is personal in nature and offers the salesperson an advantage of adjusting as per the needs of the customer.
• Link with customers There is a direct contact between the salesman and the prospects, which reduces chances of diffusion and distortion in the desired message.
• Feedback It enables the businesses to obtain the feedback from the customers and accordingly prepare the strategies for the future.
• Role in introduction stage It is an effective tool to launch products in the introductory stage of a product life cycle.

Question 86.
Identify and explain the promotional tool of marketing mix which is an impersonal form of communication and is paid for by the marketer. Also explain any three benefits of this tool. (Delhi (C) 2011; All India 2011)
Answer:
Advertising 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’. As it is an impersonal method, it creates monologue and not a dialogue. Advertising can be easily identified by its sponsor.

Benefits of advertising are as follows:
(i) Mass communication Advertising is a medium of mass communication. It reaches a large number of people spread over a large geographical area.
(ii) Helps in building the image of the firm Advertising helps to build the image of the firm and its products in the minds of buyers who begin to patronise the products. It also helps in building confidence among the prospective buyers about the quality of the products.
(iii) Creation of demand Advertising helps in introducing new products and new uses of existing articles or services to create and maintain demand. Demand for the product is created through arising interest and awareness among the prospective , buyers, and thereby increasing sales and profits of the organisation.

Question 87.
Identify and explain the promotional tool of marketing mix which involves oral presentation of message with one or more prospective customers for the purpose of making sales. Also explain any three benefits of this tool in the economic progress of a society. (Delhi (C) 2011)
Answer:
Explanation of personal selling Refer to Ans 18 on page 218 and 219.

Benefits of personal selling in the economic progress of a society are as follows:

• Converts latest demand Personal selling converts latest demand into effective demand, which leads to economic activity in the society, leading to more jobs, more income and higher production. This cycle leads to economic progress of the society.
• Employment opportunities Personal selling offers employment opportunities to the unemployed youth in the society.
• Product standardisation Personal selling increases product standardisation and uniformity in consumption pattern in a diverse society.

Question 88.
Describe any three points of importance of personal selling each to businessmen and society. (All India 2011)
Answer:
Importance of personal selling for businessmen Refer to Ans 18 on page 218 and 219.

Importance of Personal Selling to Society
Personal selling brings following positive effects for society:

• Converts latest demand into effective demand Personal selling creates effective demand, which results in increasing sale and generate more income. There will be more products and services, which in turn bring economic growth.
• Employment opportunities Personal selling offers a wide scope of employment and income generation to unemployed youth.
• Career opportunities Personal selling provides attractive career opportunities to young men and women.
• Mobility of sales people Mobility of sales people promote travel and tourism in the country.
• Product standardisation It ensures product standardisation and uniformity in consumption pattern in a diverse society.

Multiple Choice Questions

Question 1.
Which type of distribution channel is used by Flipkart?
(a) Direct distribution
(b) One level distribution
(c) Two level distribution
(d) Three level distribution
Answer:
(a) Direct distribution

Hint:
Flipkart performs internet selling in which goods are directly made available to the consumers from the manufacturers without use of any intermediary.

Question 2.
Which of the following act as a silent salesman?
(a) Product
(b) Price
(c) Packaging
(d) Promotion
Answer:
(c) Packaging

Hint:
Packaging acts as a silent salesman in self service outlets by providing attractive and colourful packing of the product to attract attention of consumers. Packaging is not limited to facilitating use and protection of the product, but also helps in product identification and promotion of the product.

Question 3.
Which of the following functions is restricted to promotion of goods and services through salesmanship, so that title of the product is transferred from seller to buyer or in other words product is converted into cost?
(a) Marketing
(b) Selling
(c) Promotion
(d) Physical distribution
Answer:
(b) Selling

Question 4.
The total cost of product includes
(a) production costs
(b) selling costs
(c) distribution costs
(d) All of these
Answer:
(d) All of these

Hint:
The total cost of product consists of production cost {costs incurred in the production of a product), selling costs (cost incurred in selling the product) and distribution costs (cost incurred in the distribution of the product).

Question 5.
Identify the process of classification of products into different groups, on the basis of some of its important characteristics.
(a) Standardisation
(b) Grading
(c) Product mix
(d) Grouping
Answer:
(b) Grading

Question 6.
…………. refers to producing goods of predetermined specifications, which helps in achieving uniformity and consistency in the output.
(a) Standardisation
(b) Grading
(c) Assorting
(d) Sorting
Answer:
(a) Standardisation

Question 7.
Which of the following does not come under controllable factors?
(a) Price decisions
(b) Packaging decisions
(c) Physical distribution decisions
(d) Taxation
Answer:
(d) Taxation

Hint:
There axe certain factors which are beyond the control of the firm. These are non-controllable factors or environmental factors e.g. Rate of inflation, credit policy of banks, taxation, competition, etc.

Question 8.
‘Haldiram is selling its product directly to the customers’. State which channel of distribution is used by the company.
(a) Direct channel of distribution
(b) One level channel of distribution
(c) Two level channel of distribution
(d) Three level channel of distribution
Answer:
(a) Direct channel of distribution

Question 9.
Sharvan is very particular to get his hair cut from ABC saloon of South Delhi. Which type of service is it?
(a) Speciality service
(b) General service
(c) Common service
(d) All of these
Answer:
(a) Speciality service

Hint:
Here, in the question, Sharvan is getting hair cut only from ABC saloon because of its some speciality in its service.

Question 10.
XYZ company is adopting a promotional tools, which plays a persuasive, service and informational role thereby link a business firm to its customers. Identify this promotional tool.
(a) Advertising
(b) Personal selling
(c) Sales promotion
(d) Public relations
Answer:
(b) Personal selling

Hint:
Here, the company is adopting personal selling, as personal selling involves oral presentation of message in the form of conversation with one or more prospective customers for the purpose of making sales.

Question 11.
Pepsi offers ? 5 to the customer on return of empty bottle. Identify the technique used by Pepsi.
(a) Discount
(b) Refund
(c) Quantity gift
(d) Usable benefit
Answer:
(b) Refund

Hint:
Refund refers to the act of repay of a part of price paid by customer on return of empty wrappers or presenting a proof of purchase of product. Here, pepsi is using ‘refund’ technique.

Question 12.
Automobiles Ltd. offered to sell their new bike at about ₹ 8,000 less than the usual price. Which of the following techniques has been used here?
(a) Refund
(b) Rebate
(c) Quantity gift
(d) Product combination
Answer:
(b) Rebate

Hint:
Here, the technique ‘rebate’ has been used. In order to clear the excess stock products, it is used in the market. When the products are offered at special, reduced prices, it is called ‘sale at rebate.”

Question 13.
covers all the activities required to physically move the goods from manufacturers to customers.
(a) Place mix
(b) Price mix
(c) Product mix
(d) Promotion mix
Answer:
(a) Place mix

Question 14.
Which type of products can be used again and again?
(a) Durable products
(b) Non-durable products
(c) Perishable
(d) Both (a) and (b)
Answer:
(a) Durable products

Hint:
Durable products are those products which can be used again and again. These goods last for a long period of time and may be used several time. e.g. Furniture, jewellery, electronics, etc.