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Business Studies 3 Marks Question

Marketing · CBSE STD 12 Commerce (CBSE - English Medium). 117 questions.

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Question 13 Marks
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 andToshita 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 paragraph.
Answer
Various types of thinking that guided the marketing efforts were:Hemant: Societal Marketing concept
Feature of Societal marketing concept:
  1. It takes care of long term well being of the consumers as well as the society.
  2. It uses integrated marketing as a means to achieve the objective.
  3. Its objective is to earn profits through customer satisfaction and social welfare.
  4. The marketing efforts start from the identification of needs of the target market and the society.
Guddu: Selling concept
Feature of Selling concept:
  1. It uses aggressive selling and promotional techniques like advertising, personal selling and sales promotion to achieve the objective.
  2. It involves pushing the sale of existing products.
  3. Its objective is to earn profits through increased volume of sales.
  4. The marketing efforts start after the product is produced in the factory.
Toshita: Marketing concept
Feature of Marketing concept:
  1. It involves development of products for satisfying needs of the target market better than the competitors.
  2. Its focus is on satisfaction of customers needs.
  3. It uses integrated marketing as a means to achieve the objective.
  4. The marketing efforts start from the identification of needs of the target market.
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Question 23 Marks
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 paragraph.
Answer
Various types of thinking that guided the marketing efforts were:
Hemant: Societal Marketing concept
Feature of Societal marketing concept:
  1. It takes care of long term well being of the consumers as well as the society.
  2. It uses integrated marketing as a means to achieve the objective.
  3. Its objective is to earn profits through customer satisfaction and social welfare.
  4. The marketing efforts start from the identification of needs of the target market and the society.
Guddu: Selling concept
Feature of Selling concept:
  1. It uses aggressive selling and promotional techniques like advertising, personal selling and sales promotion to achieve the objective.
  2. It involves pushing the sale of existing products.
  3. Its objective is to earn profits through increased volume of sales.
  4. The marketing efforts start after the product is produced in the factory.
Toshita: Marketing concept
Feature of Marketing concept:
  1. It involves development of products for satisfying needs of the target market better than the competitors.
  2. Its focus is on satisfaction of customers needs.
  3. It uses integrated marketing as a means to achieve the objective.
  4. The marketing efforts start from the identification of needs of the target market.
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Question 33 Marks
How do the 'Company-related factors' affect the choice of channels of distribution? Explain.
Answer
Company related factors include:
  1. Financial strength of the company: If the financial strength of the company is good, it would prefer shorter channels.
  2. Degree of control over channel members: If company's management wants greater control over channel members, shorter channels may be used.
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Question 43 Marks
Explain the role of marketing in a firm.
Answer
  1. The modern concept of marketing plays a significant role in achieving the objectives of a firm.
  2. It emphasises that customer satisfaction is the key to the survival and growth of an organization in the contemporary competitive marketing environment.
  3. It helps in focusing the activities of an organisation on the needs and wants of the customers.
  4. Helps in analyzing customer needs: what products or services will be marketed by a firm will depend upon what do its customers need. Thus, an analysis of the needs of the customers shall be undertaken in order to decide what to produce and sell.
  5. Marketing as a business philosophy helps in serving the customers by satisfying their needs. It is a well known fact that a satisfied customer is the most valuable asset of any firm.
Thus, marketing plays a crucial role in the survival and growth of a firm.
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Question 53 Marks
What is meant by product concept of marketing.
Answer
Product Concept:
  1. With the increase in the supply of the products, customers started looking for products which were superior in quality, performance and features.
  2. In product concept the emphasis of the firms shifted from quantity of production to quality of products.
  3. The focus of business activity changed to bringing continuous improvement in the quality, incorporating new features etc.
  4. Product improvement became the key to profit maximisation of a firm, under the concept of product orientation.
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Question 63 Marks
What is meant by channels of distribution? Explain the types of channels of distribution.
Answer
Channels of distribution mean a set of individuals and firms that combine physical movement and title movement of products to reach specific destinations.Alternate Answer
Types of channels of distribution are as follows:
  1. Direct Channel (Zero Level) The most simple and the shortest mode of distribution is direct distribution, where in the goods are made directly available by the manufacturers to customers, without involving any intermediary. This is also called zero level channel.
  2. Indirect Channels When a manufacturer employs one or more intermediary to move goods from the point of production to the point of consumption, the distribution network is called indirect. Indirect channels include following types.
  1. Manufacturer-Retailer Consumer(One Level Channel).
  2. Manufacturer-Wholesaler-Retailer-Consumer (Two Level channel).
  3. Manufacturer-Agent-Wholesaler-Retailer-Consumer (Three Level Channel).
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Question 73 Marks
Explain any three merits of ‘packaging’.
Answer
  1. 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.
  2. 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.
  3. 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.
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Question 83 Marks
Briefly, explain any three objectives of marketing management.
Answer
Objectives of marketing management:
  1. Creation of Demand: The marketing management’s first objective is to create demand through various means. A conscious attempt is made to find out the preferences and tastes of the consumers. Goods and services are produced to satisfy the needs of the customers. Demand is also created by informing the customers the utility of various goods and services.
  2. Customer Satisfaction: The marketing manager must study the demands of customers before offering them any goods or services. Selling the goods or services is not that important as the satisfaction of the customers’ needs. Modern marketing is customer - oriented. It begins and ends with the customer.
  3. Market Share: Every business aims at increasing its market share, i.e., the ratio of its sales to the total sales in the economy. For instance, both Pepsi and Coke compete with each other to increase their market share. For this, they have adopted innovative advertising, innovative packaging, sales promotion activities, etc.
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Question 93 Marks
State with reasons your choice of a media of advertising for selling of soft drinks.
Answer
Any one - Television/ newspaper/ magazines/ outdoor/ radio.The reasons for choice of media of advertising may be on the following lines: (any two)
  1. Reach.
  2. Frequency.
  3. Selectivity.
  4. Flexibility.
  5. Cost.
  6. Editorial environment.
  7. Life of the advertisement.
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Question 103 Marks
Explain in brief any three functions of packaging.
Answer
Functions of packaging:
  1. Protection: It protects the product from damages en route to the market.
  2. Identification: By packaging, products can be easily identified.
  3. Convenience: Packaging is convenience enhancer both for the middlemen and consumer to store and transport.
  4. Promotion: A silent salesman Package can grab attention, describe product contents and induce customers to make a purchase.
  5. Innovation: Innovative packages can capture new customer segments.
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Question 113 Marks
Nishtha, Vasvi and Radhika were friends from college time and now they are engaged in different types of businesses. They regularly meet and discuss their business ideas, exchange notes on customer satisfaction, marketing efforts, product designing, selling techniques and social concerns, etc.
Nishtha, drew the attention of her friends towards the exploitation of consumers in the market. She said that the sellers were exploiting the consumers in many ways and were not paying attention towards the social, ethical and ecological aspects of marketing.
Vasvi said that they were under pressure of consumer satisfaction but observed that the consumers would not buy or not buy enough unless they are adequately convinced and motivated to do the same.
Radhika, stressed that it was the duty of the businessmen to keep consumer satisfaction in mind because business was run by the resources made available by the society. Thus, a company cannot achieve its objectives without understanding the needs of the customers.
The thinking of the three friends were different. These thinkings were guiding the marketing efforts of their business and were known with different names. Identify these names. Also, state one more feature of each of these thinkings.
Answer
Various types of thinking that guided the marketing efforts were:
Nishtha: Societal Marketing concept.
Feature of Societal marketing concept:
  1. It takes care of long term well being of the consumers as well as the society.
  2. It uses integrated marketing as a means to achieve the objective.
  3. Its objective is to earn profits through customer satisfaction and social welfare.
  4. The marketing efforts start from the identification of needs of the target market and the society.
Vasvi: Selling concept.
Feature of Selling concept:
  1. It uses aggressive selling and promotional techniques like advertising, personal selling and sales promotion to achieve the objective.
  2. It involves pushing the sale of existing products.
  3. Its objective is to earn profits through increased volume of sales.
  4. The marketing efforts start after the product is produced in the factory.
Radhika: Marketing concept.
Feature of Marketing concept:
  1. It involves development of products for satisfying needs of the target market better than the competitors.
  2. Its focus is on satisfaction of customers needs.
  3. It uses integrated marketing as a means to achieve the objective.
  4. The marketing efforts start from the identification of needs of the target market.
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Question 123 Marks
Ginika, Tanish and Rohit were friends from college days and now they are 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, Ginika drew the attention of Tanish and Rohit towards the exploitation of consumers. She 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 she was not doing so.
Tanish 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.
Rohit stressed that a company cannot achieve its objectives without understanding 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 to them by the society. He further stated that he himself was taking into consideration the needs of the customers.
Identify the various types of thinking that guided Ginika, Tanish and Rohit in the marketing efforts of their business. Also, state one more feature of the various types of thinking identified that is not given in the above para.
Answer
Various types of thinking that guided the marketing efforts were:Ginika: Societal Marketing concept
Feature of Societal marketing concept:
  1. It takes care of long term well being of the consumers as well as the society.
  2. It uses integrated marketing as a means to achieve the objective.
  3. Its objective is to earn profits through customer satisfaction and social welfare.
  4. The marketing efforts start from the identification of needs of the target market and the society.
Tanish: Selling concept
Feature of Selling concept:
  1. It uses aggressive selling and promotional techniques like advertising, personal selling and sales promotion to achieve the objective.
  2. It involves pushing the sale of existing products.
  3. Its objective is to earn profits through increased volume of sales.
  4. The marketing efforts start after the product is produced in the factory.
Rohit: Marketing concept
Feature of Marketing concept:
  1. It involves development of products for satisfying needs of the target market better than the competitors.
  2. Its focus is on satisfaction of customers needs.
  3. It uses integrated marketing as a means to achieve the objective.
  4. The marketing efforts start from the identification of needs of the target market.
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Question 133 Marks
Explain how the 'product related factors' affect the choice of channels of distribution?
Answer
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.
  1. 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.
  2. 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.
  3. Perishable products like fruits, vegetables, and dairy products are best sold through short channels.
  4. 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.
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Question 143 Marks
‘Through branding adds to the cost, it provides several advantages to the consumers’. In the light of this statement, state any three advantages of branding to consumers.
Answer
Through branding adds to the cost, it provides several advantages to the consumers. In the light of this statement, advantages of branding to customers are:
  1. It helps in product identification and in creating an image in the market and therefore helps in securing repeat and quick sales and creating a brand loyalty.
  2. It ensures uniform quality and standard of the product: With brand name consumer has the assurance of quality and consistency of the product.
  3. It is a status symbol and the consumers of branded products feel proud of using them as they give them psychological satisfaction.
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Question 153 Marks
Nisha, a school bag manufacturer, decided to improve the product for profit maximization and thus added a water bottle holder to the existing design.
  1. Identify the marketing management philosophy adopted by Nisha.
  2. Explain this philosophy on the basis of,
  1. Main focus.M
  2. eans and ends.
Answer
  1. Product concept/ philosophy.
  2.  
  1. Main focus of this concept is on quality, performance and features of the product.
  2. Means: Product improvement.
Ends: Profit through product quality.
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Question 163 Marks
Explain any two functions of 'marketing'.
Answer
Functions of marketing:
  1. 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.
  2. 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.
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Question 173 Marks
What is meant by production concept of marketing?
Answer
The focus of business activities was, 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.
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.
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Question 183 Marks
What is meant by ‘direct channels of distribution’? List any four methods of direct distribution.
Answer
Direct channels of distribution mean making the goods directly available by the manufacturers to the customers without involving any intermediary.Methods of direct distribution are:
  1. Mail order selling.
  2. Internet selling.
  3. Door to door selling.
  4. Company-owned retail outlets.
  5. Telemarketing.
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Question 193 Marks
Explain any three advantages of labelling.
Answer
Advantages of labelling:
  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.
  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.
  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’.
  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’.
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Question 203 Marks
State with reasons your choice of a media of advertising for selling of toys.
Answer
Any of the television/magazines/newspapers/radio/outdoor:
The reasons for choice of media of advertising may be on the following lines: (any two)
  1. Reach.
  2. Frequency.
  3. Selectivity
  4. Flexibility.
  5. Cost.
  6. Editorial environment.
  7. Life of the advertisement.
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Question 213 Marks
Explain any three qualities of a good brand name.
Answer
Qualities of good brand name:
Following are some of the considerations, which should be kept in mind while choosing a brand name.
  1. The brand name should be short, easy to pronounce, spell, recognise and remember e.g., Ponds, VIP, Rin, Vim, etc.
  2. 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.
  3. A brand name should be distinctive e.g., Liril, Sprit, Safari, Zodiac.
  4. The brand name should be adaptable to packing or labeling requirements, to different advertising media and to different languages.
  5. The brand name should be sufficiently versatile to accommodate new products, which are added to the product line e.g., Maggie, Colgate.
  6. It should be capable of being registered and protected legally.
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Question 223 Marks
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 name, 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.
  1. Identify the marketing management philosophy followed by JTM Ltd.
  2. Explain the advantages of branding to the marketeers highlighted in the above case.
Answer
The marketing management philosophy that is being followed by JTM ltd. is ‘Societal Marketing Concept’. This is because it not only identified the needs and wants of the consumers but also delivered a good quality and eco-friendly product.
Advantages to the Marketers:
  1. 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.
  2. 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. like a brand and become habitual of it, they do not mind paying a little higher for it.
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Question 233 Marks
‘Products is a mixture of tangible and intangible attributes’. Discuss.
Answer
Generally, a product is referred to as a tangible asset which has physical attributes. For example, we regard a motorbike or a laptop as a product. However, in marketing a product relates not just to physical or tangible attributes but also to certain intangible attributes. That is, a consumers’ decision to purchase a product is based not just on its tangible attributes but also on certain other intangible attributes. In other words, a consumer purchases a product not just for its functional utility but for other factors as well such as brand name, reputation, social satisfaction, etc. For example, when a person purchases a laptop, along with the physical attributes and functional utility regarding the model, size, features, etc. he also looks for intangible attributes such as guarantee, brand, etc. Hence, product is a mixture of tangible and intangible attributes.
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Question 243 Marks
State the role/ importance/ purpose objective of public relations.
Answer
Public relation is an effective tool of marketing, which evaluates public attitudes, identifies the policies and procedures of an individual or an organisation with the public interest, plans and execute programmes of action to earn public understanding and acceptance.Objectives of public relations are as follows:
  1. Building awareness and a favourable image for a company.
  2. Closely monitoring numerous media channels for public comment about a company and its products.
  3. Managing crises that threaten company's image.
  4. It is an efficient way to reach masses.
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Question 253 Marks
State any three features of ‘Sales Promotion’.
Answer
Following are the main features of sales promotion:
  1. Sales promotion does not include advertising, personal selling and publicity.
  2. Sales promotion activities are undertaken on special occasions. These are not routine activities.
  3. Sales promotion helps in rendering advertising and personal selling more effective.
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Question 263 Marks
Is labelling compulsory?
Answer
Generally, the producer is at liberty to use label or not and to choose the kind of label. But it has been made compulsory by the Government to use label for some products. Besides this, the description of label has also been fixed. For example, it is mandatory to use the label alongwith its stipulated information on Medicines and Processed Food. Similarly, the products which are injurious to health must carry the statutory warning regarding its use. Such as the packets of the Cigarette and Pan Masala have always the inscription ‘Injurious to Health’.
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Question 273 Marks
Give three levels of packaging.
Answer
Different levels of packaging are:
  1. Primary packaging. Product's immediate container is known as primary packaging like in case of a matchbox.
  2. Secondary packaging. Additional layers of protection that are kept till the product is ready for use, e.g., antiseptic tube or Boro Plus Cream comes in a cardboard box.
  3. Transportation packaging. Packaging necessary for storage or transportation, e.g., corrugated boxes containing toothpastes tube in 50, 100 or 200 units.
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Question 283 Marks
What is the purpose of packaging a product?
Answer
The package of a product performs various functions for the product.These functions are:
  1. Product identification: The package of a product helps the customer to easily identify the product in the market.
  2. Product protection: The package of a product protects it from spoilage, breakage, pilferage, leakage, damage, etc.
  3. Facilitate use: the package of a product helps the consumer to open, handle and use the product more conveniently.
  4. Product promotion: An attractive package attracts the attention of people and at the same time, provides detailed information about the product.
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Question 293 Marks
What is the importance of price element of marketing mix?
OR
Why is price so important in marketing?
Answer
Price is an important element of marketing mix due to the following reasons:
  1. It determines the sales volume and profit margin of the manufacturer/ dealer.
  2. It influences the competitive strength of a product.
  3. It affects promotion and place components of marketing mix.
  4. It determines the purchasing power and standard of living of consumers.
  5. Without pricing, there can be no marketing, as sales takes place after the buyer and seller agree on the price.
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Question 303 Marks
State two product-related and two market-related factors affecting choice of channels of distribution.
Answer
Two product-related factors are:
  1. Nature of product: Perishable and dairy products also use direct channels, while durable products require longer channels to reach widespread markets. At the same time, goods whose unit value is low, prefer longer channels, whereas, high value products are directly distributed.
  2. Geographical concentration 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.
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Question 313 Marks
Differentiate between the concepts of 'packaging' and 'labelling'.
Answer
Difference between packaging and labeling:
S. No.
Basis
Packaging
Labelling
i.
Meaning
It refers to the process of designing and creating a package, container or wrapper for a product.
It refers to the process of designing and creating a label for a product.
ii.
Purpose
The purpose of package is to provide protection to the product.
The purpose of label is to provide detailed information about the product.
iii.
Use
A package facilitates use of the product.
A label does not facilitate use of the product.
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Question 323 Marks
Promotion is dual-oriented. How?
OR
Anu and Manu are students of management, working on a project of marketing. While promoting a product, Anu emphasised on supplying information about the product, while Manu emphasised only on popularising it and persuading people to buy it. Which out of the two information or persuasion should be focussed upon?
Answer
Promotion refers to the process of informing the customers about the product and then persuading them to buy it. The popular methods of promotion are advertising, sales promotion, personal selling and public relations. All marketer uses the promotion mix, i.e. combination of promotional tools according to their budget, nature of customers, nature of product, coverage, cost, etc. Thus, it is dual oriented, as it involves information on one hand and persuasion on the other.
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Question 333 Marks
'Packaging has acquired great significance in the marketing of goods.' In the light of this statement state any three functions of packaging.
Answer
The functions of packaging are given below:
  1. Protection: The main function of packaging is to provide protection to the product from dirt, insects, dampness and breakage. For example, the products like biscuit, jam, chips etc. are needed to be protected from environmental contact. That is why they are tightly packed.
  2. Identification: Packaging also serves as an identification of the product. A product is packed in special sized, coloured and shaped container for keeping its difference from the products of competitors. For example, the yellow and black coloured pack of KODAK ROLL tells itself of its producer.
  3. Convenience: Packaging provides convenience in the carriage of product from one place to another, in stocking and in consuming. For example, the new pet bottles of COKE makes the carriage and stocking easier. Similarly, the pack of FROOTI provides convenience in its consumption.
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Question 343 Marks
What is meant by ‘Production Concept’ of marketing?
Answer
Those companies who believe this philosophy think that if the goods/services are cheap and they can be made available at many places, there cannot be any problem regarding sale. Keeping in mind the same philosophy these companies put in all their marketing efforts in reducing the cost of production and strengthening their distribution system. In order to reduce the cost of production and to bring it down to the minimum level, these companies indulge in large scale production. This helps them in affecting economies of large scale production. Consequently, the cost of production per unit is reduced.
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Question 353 Marks
Discuss in brief how do the below mentioned points influence price determination.
  1. Objective.
  2. Cost.
  3. Competition.
  4. Buying motives.
Answer
The effect of various factors on price determination is:
  1. Objective: Price of a product depends upon the firm's objective. A firm may decide out of several objectives, e.g. profit maximisation, a specific level of profit, target level of sales, a particular share of the market, prevailing market price, etc. The price fixed for the product must be in line with the firm's pricing objective.
  2. Cost: Essentially, retail prices are cost of production and distribution plus the profit margins. No business can survive for long without covering its costs. In the long-run, price should cover the total cost per unit, but in the short-run, price should cover variable cost of production.
  3. Competition: Prices charged by competitors often act as the guide in a pricing decision. e.g. Maruti Udyog has to decide the price of its Zen and Alto cars keeping in view an competing brands like Santro, Indica and Palio.
  4. Buying motives: A customer may pay a high price to satisfy his vanity. This happens when an article is purchased for status or prestige. Price must be consistent with the desired public image of the product.
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Question 363 Marks
Describe standardisation and grading as marketing functions.
Answer
  • Standardisation: The term 'standardisation is derived from the word '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 predetermined grades of quality. Grading helps in fixing and securing remunerative prices for the products.
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Question 373 Marks
Explain the following two functions of Marketing:
Marketing Planning.
Answer
Marketing Planning: In order to achieve the objectives of an organisation with regard to its marketing, the marketeer chalks out his marketing plan. For example, a company has a 25% market share of particular product. The company wants to raise it to 40%. In order to achieve this objective the marketeer shall have to prepare a plan in respect of the level of production and promotion efforts. It will also be decided that who will do what when and how. To do this is known as marketing planning.
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Question 383 Marks
‘Choice of an appropriate channel of distribution is very important marketing decision which affects the performance of an organisation’. Explain any two factors on which the choice of an appropriate channel depends.
Answer
A manufacturer should keep into consideration the following factors while selecting a channel of distribution.
  1. Product Related Factors: When a manufacturer selects some channel of distribution he/ she should take care of such factors which are related to the quality and nature of the product.
They are as follows:
  1. Perishability: A manufacturer should choose minimum or no middlemen as channel of distribution for such an item or product which is of highly perishable nature. On the contrary, a long distribution channel can be selected for durable goods.
  2. Technical Nature: If a product is of a technical nature, then it is better to supply it directly to the consumer. This will help the user to know the necessary technicalities of the product.
  1. Market Related Factors:
Market considerations are given below:
  1. Number of Buyers: If the number of buyer is large then it is better to take the services of middlemen for the distribution of the goods. On the contrary, the distribution should be done by the manufacturer directly if the number of buyers is less.
  2. Types of Buyers: Buyers can be of two types: General Buyers and Industrial Buyers. If the more buyers of the product belong to general category then there can be more middlemen. But in case of industrial buyers there can be less middlemen.
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Question 393 Marks
‘Product is a bundle of utilities.’ Do you agree? Comment.
Answer
Yes, I do agree with this statement. Product provides three types of satisfaction given as under:
  1. Functional Satisfaction: To wear the shirt and cover the body with it is an example of functional satisfaction.
  2. Psychological Satisfaction: To feel more confident and active after wearing the shirt provides psychological satisfaction.
  3. Social Satisfaction: Getting recognition after wearing shirt from the group of known people is social satisfaction.
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Question 403 Marks
How does 'marketing' help in satisfying wants of people?
Answer
Marketing attempts to satisfy wants of people by opting the following activities:
  1. Assessing needs and wants of people.
  2. Planning and developing products and services, which can satisfy customer's needs and wants.
  3. Supplying the required products and services.
  4. Providing after sale service.
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Question 413 Marks
What is the purpose of a brand name?
Answer
A brand name is a word, design, symbol or a combination, thereof used to identify a product and distinguish it from those of competitors.The purposes of a brand name are as follows:
  1. To create a distinct image of the product and its seller in the market. e.g. Bata shoes.
  2. To build reputation and goodwill of the manufacturer.
  3. To secure repeated sales through brand loyalty.
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Question 423 Marks
What can manufacturers, consumers and government do to remove the evils of advertising?
Answer
  1. Manufacturers should not incur unnecessary expenditure on advertising and avoid indecent advertising which is likely to cause decay of social value.
  2. Consumers should not be misguided by advertising nor should they discard consumer goods before the expiry of their utility period. They should also ignore such advertising as is likely to give birth to bad habits. Besides, they should not encourage monopolistic tendencies by purchasing a particular brand repeatedly.
  3. Government should take stern action against those who indulge in false propaganda by using advertising media.
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Question 433 Marks
Your company is launching products for every section of society. In this regard, how would 'public relation' help you in meeting your goals?
Answer
Public relation is an efficient tool of marketing. If it is done in a right way, it can reach large audience without any huge investment.
  1. It is an economical way to target your audience.
  2. It stimulates awareness and demand of your company's product.
  3. It creates more credibility than traditional advertising.
  4. It paints a good picture of your company in front of public.
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Question 443 Marks
Mr. Nitin is manufacturing fruit jelly under the brand name "Fruiticious' He plans to launch fruit squashes under the same brand name. Is the decision correct? What advantages Mr. Nitin will get from this decision?
Answer
Introducing a new product, fruit squashes under the existing brand name is a correct decision.
Mr. Nitin will get the following advantages from this decision:
  1. Enables differential pricing: It helps in creating a loyalty of the consumers towards the product. When consumers become habitual of using a particular product and are satisfied with its quality, they would happily pay a slightly higher price for it.
  2. Facilitates introduction of new products: It helps in providing a base for the introduction of a new product. Whenever a new product is launched under an established and reputed brand, then it gets good initial boost from the brand name. Nowadays, many companies such as Hindustan Unilever, Samsung, Cadbury, etc. have multiple products under a single brand name.
  3. Helps in advertisement: It helps a firm to advertise its product. Unless branding is done, a product cannot be advertised. Advertisement for a branded product helps in highlighting the specific qualities and features of that product.
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Question 453 Marks
State any three features of a good brand name.
Answer
A good brand name should contain the following characteristics:
  1. Simple and Short: A brand name should be simple and short so that there is no complication or oddity related to its name. For example, the brand names like LUX, BATA, BINACA and DALDA have these qualities.
  2. Easily Pronounceable: A brand name should be easily pronounceable. For example, TATA, BATA, FIFTY-FIFTY etc.
  3. Suggestive: Brand name should be self-explanatory thereby suggesting the inherent quality of the product. For example, HAJMOLA indicates the curing of indigestive system and the product like UJALA suggests more whiteness and brightness.
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Question 463 Marks
Discuss the features of personal selling.
Answer
Two main features of personal selling are:
  1. Personal form: It involves a direct face-to-face communication between the seller and the buyer.
  2. Development of relationship: It helps to develop a personal, long-lasting relationship between the salesman and the customer.
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Question 473 Marks
What is marketing? What functions does if play with process of exchange of goods and services? Explain.
Answer
Marketing refers to the process wherein the buyers and sellers interact with each other for purchase and sale of goods and services. Earlier, marketing had different approaches with respect to its definition. It was sometimes described as a post-production process that involves purchasing of the final products and sometimes, as a pre-production process that involves merchandising (designing) of the product. In reality, marketing is a much wider concept than this. It consists of all those activities that are involved in the process of exchange of the goods and services between producers and consumers. These activities are basically the functions performed under marketing. It involves planning, designing the product, packaging and labelling of the product, standardising, branding, warehousing, transportation, advertising, pricing and distribution. It also includes activities that are performed even after the sale of product such as, maintaining customer relations and collecting feedback. Thus, marketing plays an important role in the process of exchange of goods and services.
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Question 483 Marks
What are the essentials of a good package?
Answer
A good package should have following features:
  1. It should be convenient to handle and use. It should be easy to open and close and should fit well into the cupboard, drawer, refrigerator, etc.
  2. The package should provide aesthetic satisfaction in terms of design, neatness and beauty. It should be pleasing and eye-catching. It should attract immediate attention
  3. It should be safe and should be capable of protecting the product.
  4. It should build customer's confidence by telling the true story of the product.
  5. The package should establish its own identity appropriate to the product in terms of user's expectations. In other words, it should provide a distinct personality and status to the product.
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Question 493 Marks
Define advertising. What are its main features? Explain.
Answer
Advertising is a technique used for promotion of a product. Through advertising the companies attract customers towards their product and induce them to purchase it. Some of the common modes of advertising are newspapers, magazines, television, etc.The following are the important features of advertising:
  1. Cost Involved: Advertising involves a cost. It is a paid form of promotion. The costs involved in advertising are to be borne by the sponsors.
  2. Impersonal Mode: Advertising is an impersonal mode of communication. That is, there is no face-to-face interaction between the customer and the advertiser. Thus, it lacks a personal touch and creates a monologue.
  3. Specific Sponsor: There are always some identified individuals or sponsors who undertake the responsibility of designing it and bearing the cost involved.
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Question 503 Marks
Explain the following two functions of Marketing:Product Designing and Development.
Answer
Product Designing and Development: Product designing plays an important role in product selling. The company whose product is better and attractively designed sales will be more than the product of a company whose design happens to be weak and unattractive. In this way, it can be said that the possession of a special design affords a company competitive advantage. It is important to remember that it is not sufficient to prepare a design in respect of a product, but it is more important to develop it continuously.
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