Students can Download 2nd PUC Business Studies Model Question Paper 4 with Answers, Karnataka 2nd PUC Business Studies Model Question Papers with Answers helps you to revise the complete Karnataka State Board Syllabus and score more marks in your examinations.
Karnataka 2nd PUC Business Studies Model Question Paper 4 with Answers
Time: 3hrs 1 5 Min.
Max Marks: 100
SECTION – A
I. Answer any ten of the following questions in a word or a sentence each.
Each questions carries one mark. (10 × 1 = 10)
Give one example for middle-level management position?
Principles of management are not.
Which environment envisages the regulations to be followed by advertisers?
Mention the first step of planning process?
Which organizing structure is suitable for large organizations.
Functional structure is suitable for large.
Transfer is an example for source of recruitment.
What do you mean by motive?
A motive is an inner state that energizes, activates or moves and directs behavior towards goals.
What do you mean by financial leverage?
The proportion of debt in the overall capital is called financial leverage.
Over the counter exchange of India.
Which is the most commonly used tool of sales promotion?
Advertising is the most commonly used tool of sales promotion.
Who is a consumer?
A consumer is a person who buys any product or service for final consumption by paying a price.
Who is an entrepreneur?
The person who set – up his business is called an entrepreneur.
SECTION – B
II. Answer any ten of the following questions in two or three sentences each.
Each question carrier two marks:(10 × 2 = 20)
Justify the importance of co-ordination by any two factors.
- Coordination integrates group efforts into purposeful work activity.
- Coordination ensures unity of action.
What is discipline?
Discipline is obedience to organisational rules and employment agreements which are necessary for the working of the organisation.
What do you mean by privatisation?
The new set of economic reforms aimed at giving greater role to the private sector in the natural building process and a reduced role to the public sector is known as privatisation.
What are objectives?
Objectives are the endpoints towards which are activities of an organisation are directed, objectives are set by the top management.
Give the meaning of formal organisation.
Formal Organisation refers to the organization structure which is designed by the management to accomplish a particular task. It specifies clearly the boundaries of authority and responsibility and there is systematic coordination among the various activities to achieve organizational goals.
Why is staffing both a line as well as staff activity?
Staffing is both a function of management as well as a distinct functional area of management. It is therefore referred to as both line as well as well as a staff activity. It is the essential function of the manager as well as an advisory role played by the Human Resource Department.
What is communication?
According to George Terry, “Communication is an exchange of facts, ideas, opinions or emotions by two or more persons.”
State any two traditional techniques of managerial control.
- Personal observation
- Break even analysis.
How do you describe marketing mix?
Marketing mix is described as the set of marketing tools that a firm uses to pursue its marketing objectives in a target market. This term marketing mix is given by Neil H Borden. It is the combination of four inputs namely product, price, promotion and place.
State any two features of advertising.
Advertising is an impersonal form of communication, which is paid for by the sponsors to promote some goods or services.
The important features of advertising are as follows:
1. Paid form:
advertising is a paid form of communication. The sponsor has to bear the cost of communicating with the prospects.
There is no direct face – to – face contact between the prospect and the advertiser. It is therefore, referred to as impersonal method of promotion.
3. Identified sponsor:
Advertising is undertaken by same identified individual or company, who makes the advertising efforts and also bears the cost of it.
What is consumer protection?
Consumer Protection refers to providing adequate protection to consumers against the unfair trade practices followed by the manufacturers and service providers.
It includes educating consumers about their rights and responsibilities, helps them with judicial machinery for protecting the interests of consumers and also requires the consumers to form consumer associations for protection and promotion of their interests.
State any two features of entrepreneurship?
- Systematic activity
SECTION – C
III. Answer any seven of the following questions in 10-12 sentences.
Each question carrier 4 Marks: (7 × 4 = 24)
Briefly explain any four objectives of management?
Every organisation is established to achieve certain objectives. Different organisations are having different objectives and management are having different objectives and management has to achieve these objectives effectively and efficiently. Management Objectives can be classified into organisational objectives, social objectives, and personal or individual objectives.
a. Organisation Objectives:
Management is responsible for setting and achieving objectives for the organisation. The main objective of any organisation is to utilise human and material resources to the maximum possible advantage, management of every organisation strives to accomplish the objectives, considering the interest of all the stakeholders, i.e., shareholders, employees, customers, and the government. The economic objectives of an organisation include
Management must work to ensure the survival of the organisation by earning enough revenue to cover its costs.
Earning of profit is very essential for meeting the expenses and for successful continuity of business. Therefore, management should ensure that sufficient profits are earned to cover the costs and risks of business.
For the existence of business organisation for a long period, management should explore all its prospects of growth and development to remain in industry. Growth of a business can be measured in terms of increased sales, increase in the number of employees, the number of products or the increase in capital investment.
b. Social Objectives:
It involves the creation of benefit for society. As a part of society, every organisation has a social obligation to fulfill. This refers to consistently creating economic value for various constituents of society. This includes.
- Using environmental friendly methods of production.
- Creating employment opportunities particularly to the under privileged sections of society.
- Providing amenities to society, like schools and creches to employees children.
- Providing financial support to society for noble causes.
- Participating in social service projects of government and non-governmental organisations.
c. Personal (or) Individual objectives:
Organisations are made up of people who have different personal backgrounds, experiences, and objectives. It is very important to satisfy their diverse needs by getting their wholehearted support in achieving the organisational objectives. The personal objectives include
- Financial needs like salaries, incentives, and other benefits.
- Social needs like recognition in the organisation.
- Higher level needs which include personal growth and development.
Management has to take care of personal needs of its employees while also fulfilling the other objectives.
d. Management helps in achieving personal objectives:
A manager motivates and leads his team in such a manner that individual members are able to achieve personal goals while contributing to the overall organisational objectives. Through motivation and leadership the management helps individuals to develop team spirit, cooperation and commitment to group success
What are the four aspects of work-study developed by F. W. Taylor? Explain.
Standardisation and simplification of work: Standardisation refers to the process of setting standards for every business activity. These standards are the benchmarks, which must be adhered to during production.
This can be done by following scientific methods of production and through work-study techniques which include time study, motion study, etc. Standardisation relates to process, raw – material, time, product, machinery, methods or working conditions.
a. Method study:
The objective of method study is to find out one best way of doing the job.
It refers to the study of movements like lifting, putting objects, sitting and changing positions, etc, which are undertaken while doing any job.
c. Time – study:
It determines the standard time taken to perform a well-defined job.
d. Fatigue study:
It determines the amount and frequency of rest intervals in completing a task.
Explain briefly the importance of planning?
Planning is very important as it tells us where to go; it provides direction and reduces the risk of uncertainty by preparing forecasts. The importance of planning is explained as follows:
a. Planning provides direction:
Planning provides direction for action. Planning ensures that the goals are clearly stated so that they act as a guide for deciding what action should be taken and in which direction. Planning ensures coordination in the work of individuals and various departments of the organization.
b. Planning reduces the risk of uncertainty:
Planning is an activity which enables a manager to look ahead and anticipate changes. By deciding in advance, the tasks to be performed, planning shows the way to deal with changes and uncertain events. Changes cannot be eliminated but they can be anticipated and managerial responses to them can be developed.
c. Planning reduces overlapping and wasteful activities:
Planning serves as the basis of coordinating the activities and efforts of different divisions, departments, and individuals. It helps in avoiding confusion and misunderstanding. Planning ensures clarity in thought and action, work is carried on smoothly.
It helps to detect the inefficiency and unwanted repetition in work and to take corrective measures to minimize the wasteful activities.
d. Planning promotes innovative ideas:
Planning is the first function of management. New ideas can take the shape of concrete plans. Planning is basically the thinking function of management. It encourages managers for innovative and creative thinking. Thus, planning helps the managers to be more creative and innovative in shaping new courses of action.
e. Planning facilitates decision making:
Planning helps the manager to look into the future and make a choice from amongst various alternative courses of action. Decision making is a process of selecting the best course of action from various available alternatives after evaluating each one of them.
f. Planning establishes standards for controlling:
Planning facilitates control. It determines goals and standards for every individual and department of the organization. This makes it easy to compare the actual performance of the individuals and departments with the standards fixed. In case, there are deviations, corrective measures are taken to remove them. Thus, planning is a prerequisite of controlling.
The major limitations of planning are given below:
a. Planning leads to rigidity:
In an organization, a well-defined plan is drawn up with specific goals to be achieved within a specific time frame. These plans then decide the future course of action. The managers may not be in a position to change these plans. This kind of rigidity in plans may create difficulty. This rigidity restricts individual freedom, initiative, and creativity.
b. Planning may not work in a dynamic environment:
The business environment is dynamic. Planning anticipates future. It takes into consideration the possible changes in economic, political, legal and social dimensions. But it becomes difficult to accurately assess future trends. Competition in the market can also upset the plans. Planning cannot foresee everything and thus, there may be obstacles to effective planning.
c. Planning reduces creativity:
Planning is an activity which is done by the top management. Usually, the rest of the members just implement these plans. Middle management and other decision makers are neither allowed to deviate from plans nor are they permitted to act on their own. Thus, much of the initiative or creativity inherent in them also gets lost or reduced.
d. Planning involves huge costs:
When plans are drawn up, huge costs are involved in their formulation. These may be in terms of time and money. The cost incurred sometimes may not justify the benefits derived from the plans.
e. Planning is a time-consuming process:
Sometimes plans to be drawn uptake so much of time that there is not much time left for their implementation.
f. Planning does not guarantee success:
The success of an enterprise is possible only when plans are properly drawn up and implemented. Any plan needs to be translated into action. Managers have the tendency to depend on the previously tested and successful plans. But it is not always true that the plans which were successful early will be successful again.
Therefore, planning does not guarantee success but provides a base for analysis of future courses of action.
Explain briefly the steps in organizing process?
a. Identification and Division of work:
The process of organizing starts with the identification and division of work. The work is divided into manageable activities so that duplication of work can be avoided. The burden of work can be shared among the employees.
It refers to the process of grouping the activities of similar nature under same departments. This helps specialization and coordination. Departments can be created generally on the following basis.
- On the basis of function
- On the basis of type of product manufactured
- On the basis of territory
c. Assignment of duties:
It is necessary to define the work of different job positions and allocate the work accordingly to various employees. Once departments are formed, it is necessary to assign the work to the employees according to their skill and competencies. It is essential that a balance is created between the nature of the job and the ability of the employee.
d. Establishment of reporting relationships:
Mere allocation of work is not enough. Each individual should know from whom he has to take orders and to whom he is accountable. The establishment of such clear relationship helps to create a hierarchal structure and helps in co-ordination among various departments.
Explain the internal sources of recruitment.
Internal Sources of Recruitment methods include:
Promotion is the vertical movement of an employee within the organization. It refers to the upward movement of an employee from one job to another higher one, with increase in salary, status, and responsibilities.
Transfer means lateral movement of employee in the same grade, from one job to another, without any change in his status, responsibility, and salary.
Merits of Internal Sources of Recruitment:
- It is economical
- It motivates the existing employees
- Through transfer employees get training also in the form of job rotation
Demerits of Internal Sources of Recruitment:
- No fresher new ideas will come into the organization
- There will be limited choice.
- Not suitable for new organization
- Frequent transfer may reduce the productivity of the employee.
Explain briefly any four points which emphasize the importance of Directing.
a. Initiating action:
Directing helps to initiate action by people in the organization towards attainment of desired objectives.
b. Integrates efforts of the employees:
Directing integrates employees efforts in the organization in such a way that every individual effort contributes to the organizational performance.
c. Guidance to Employees:
Directing guides employees to fully realize their potential and capabilities by motivating and providing effective leadership.
d. Facilitates charges:
Directing facilitates introduction of needed changes in the organization. Generally, people are resistant to change. Directing, through effecting motivation, communication and leadership help to reduce such resistance and develop required cooperation among the people in the organization.
These are Explain briefly any four factors affecting dividend decisions?
Dividend is that portion of profit which is distributed to shareholders. Dividend decision involves how much profit earned by company is to be distributed to the shareholders and how much of it should be retained in the business.
The following are the factors affecting dividend decisions:
1. Amount of Earnings:
Dividends are paid out of current and past earning Therefore, earnings is a major determinant of the decision about dividend.
2. Stability Earnings:
Other things remaining the same, a company having stable earning is in a better position to declare higher dividend. A company having unstable earnings is likely to pay smaller dividends.
3. Stability of Dividends:
Companies generally follow a policy of stabilizing dividend per share. The increase in dividends is generally made when there is confidence that their earning potential has gone up and not just the earnings of the current year.
4. Growth Opportunities:
Companies having good growth opportunities retain more money out of their earnings so as to finance the required investment. The dividend in growth companies is, therefore, smaller than that in the non-growth companies.
Explain briefly the money market instruments?
Money market consists of the following instruments
1. Treasury Bills:
a. Treasury bill is an instrument of short-term borrowing issued by the Reserve Bank of India on behalf of the Central Government to meet its short-term requirement.
b. These are also known as Zero-Coupon Bonds.
c. They are issued at a price lower than their face value. The difference between the face value and issue price constitutes discount that is nothing but the interest receivable on them.
d. Treasury bills are negotiable instruments and are freely transferable.
2. Commercial Paper:
a. It is a short-term unsecured promissory note, negotiable and transferable by endorsement and delivery and with a fixed maturity period.
b. Commercial papers are issued by large and creditworthy companies to raise short-term funds at lower rates of interest than market rates.
c. The maturity period is usually between 15 days and one year.
d. The actual purpose of CP was to provide short-term funds for seasonal and working capital needs.
3. Call Money:
a. It is short-term finance repayable on-demand with a maturity period of one day to fifteen days.
b. Call-money us used for inter-bank transactions. Commercial banks have to maintain a minimum cash balance known as cash reserve ratio. The RBI changes this CRR which affects the amount of funds available with the commercial banks to be given as loans. So, the commercial banks raise short-term finance by this method.
c. The interest rate paid on call money loan is known as call rate. This rate is very volatile and changes from day-to-day and even from hour-to-hour.
4. Certificate of Deposit:
- These are short-term, unsecured negotiable instruments in bearer form issued by commercial banks.
- These are issued to individuals, corporations, and companies.
- The certificate has the maturity date, the fixed rate of interest and the maturity value.
- Generally, the maturity of the deposits is between three months and one year.
5. Commercial Bill:
- short-term negotiable and self-liquidating money market instruments.
- They have comparatively very low risk.
- The seller of the goods draws the bill and the buyer accepts it. On being accepted, the bill becomes a marketable instrument and is called a trade bill. When a trade bill is accepted by a commercial bank it is known as a commercial bill.
- It is nothing but a bill of exchange used to finance the working capital requirements of business organisations.
Explain briefly the functions performed by a label?
The various functions performed by a label are as follows:
1. Describe the product and specify its contents:
One of the most important functions of labels is to describe the product, its usage, cautions in use, etc and specify its contents.
2. Identification of the product or brand:
The other important function performed by labels is to help in identifying the product or brand.
3. Grading of products:
Another important function performed by labels is to help grading the products into different categories. Sometimes, marketers assign different grades to indicate different features or quality of the product.
4. Helps in promotion of products:
An important function of label is to help in promotion of the products. A carefully designed label can attract attention and give reason to purchase.
5. Providing information required by law:
Label provides information required by law.
State any four functions of Consumer Organizations and NGOs for the protection and promotion of consumer interests.
1. Educating the general public about consumer rights by organizing training programs, seminars, and workshops.
2. Publishing periodicals and other publications to impart knowledge about consumer problems, legal reporting, reliefs available and other matters of interest.
3. Carrying out comparative testing of consumer products in accredited laboratories to test relative qualities of competing brands and publishing the test results for the benefit of consumers.
4. Encouraging consumers to strongly protest and take an action against unscrupulous, exploitative and unfair trade practices of sellers.
SECTION – D
IV. Answer any seven of the following questions in 20-25 sentences.
Each question carrier 8 Marks: (4 × 8 = 32)
Explain the characteristics of Management?
Features of Management:
a. Management is a goal oriented process:
Every organisation has a set of basic goals to achieve. Management unites the efforts of different individuals in the organisation towards achieving these goals.
b. Management is all pervasive:
Management activities are universally applicable to all organisations, social, economic and political. Hence, management is all pervasive and a universal phenomenon.
c. Management is multidimensional:
Management is a complex activity and involves three dimensions namely.
- Management of work
- Management of people (and)
- Management of operations
d. Management is a continuous process:
Management consists of a series of functions like planning, organising, staffing and controlling which are continuous and composite in nature. These functions are simultaneously performed by all managers all the time. Hence, management is considered a continuous process.
e. Management is a group activity:
An organisation is a collection of number of individuals with different needs. Every member of the group has different purpose to join the organisation. But, as members of the organisation, they work towards fulfilling the common organisation goal. This requires teamwork and coordination. Hence, management is a group activity.
f. Management is a dynamic function:
Every organisation works in an environment which keeps on changing. The external environment which consists of various social, economic and political factors keep changing. In order to be successful, an organisation must change itself and its goals according to the needs of the environment. Hence, management is a dynamic environment.
g. Management is an intangible force:
Management cannot be seen but its presence can be felt in the operations of the organisation. The effect of management is noticeable in an organisation where targets are met according to plans when employees are happy and satisfied. So management is an unseen force but reflects in the collective efforts.
Explain the various types of plans with necessary examples?
In order to accomplish the targets, the management of a business organization chalks out different types of plans. The important types of plans are explained below:
Types of plans
1. Single-use plans:
A single-use plan is developed for a one-time event or project. The examples are
2. Standing Plans:
A standing plan is used for activities that occur regularly over a period of time. The examples are
3. The other plans include strategies and objectives.
Brief explanation of the various types of plans are as follows:
1. Objectives are the endpoints towards which the activities of an organization are directed. They are said to be the desired future position that the management would like to reach.
2. Objectives are very basic to the organization which the organization wants to achieve by its operations.
3. Objectives are set by the top management. They lay down guidelines for the activities and serves as a benchmark for measuring the performance of an organization.
4. Objectives need to be expressed in specific terms. They should be expressed in quantitative and measurable terms. They are also to be put in the form of written statements and they represent the desired results to be achieved in a given period of time.
A strategy provides the broad contours of an organization’s business. Strategies are the specific programs of action for achieving the objectives of the organization by employing the organization’s resources efficiently and effectively.
A strategy is a comprehensive plan which acts as a guideline to handle specific problems. Major strategic decisions will include decisions like whether the organization will continue to be in the same line of business, or combine new lines of activity with the existing business or seek to acquire a dominant position in the same market.
Policies are general statements that guide thinking. Policies provide a basis for interpreting strategy. Policy is a guide to managerial action and decision in the implementation of the strategy. Strategies are formulated by top management. Formulation of strategy involves the following aspects:
- Determination of the long term objectives
- Adopting a course of action to achieve the objectives and
- Allocating resources necessary to achieve the objectives.
1. Procedures are routine steps on how to carry out activities. They detail the exact manner in which any work is to be performed.
2. Procedures are the guidelines to action and they are usually intended to the works which are repetitive in nature.
3. Examples of procedure include procedure for execution of the customer’s order for supply of goods and procedure for recruitment of employees in an organisation.
Methods provide the prescribed ways in which a task has to be performed considering the objective. It deals with a task comprising one step of a procedure and specifies how this step is to be performed. Method has a limited scope compared to the procedure.
Examples of methods include training the employees under the job training method, remunerating the salesmen under bonus and commission method, etc.
Rules are specific statements that inform what is to be done. Every organization likes to operate in an orderly way. For this purpose it is necessary for the business organization to lay down certain rules.
Rules are the specific statements which prescribe the code of behavior to the people of an organization. Rules are rigid. Their violation attracts penalty and disciplinary action. An example of a rule is ‘wear identity cards compulsorily at the work place.
1. Programmes are detailed statements about a project which outlines the objectives, policies, procedures, rules, tasks, human and physical resources required.
2. A program is a precise plan which lays down the operations to be carried out to accomplish a given task within a specified period of time.
3. Programmes are framed for the works which are non-repetitive in nature. An example for a programme includes sale of 5000 cars in the month of March 2019.
Budget is a statement of expected results expressed in numerical terms. Budget is a plan which expresses the future facts and figures in quantitative terms for a specified period. Budget is considered a control device. An example for a budget is a sales budget which forecasts the sales of different products in each area for a particular period.
The success of the business depends to a large extent on effective planning. Thus, the logical and scientific planning must go through the above steps.
Explain the different methods of on the job and off the job training method?
Training is the process of teaching new or present employees, the basic skills they need to effectively perform their job.
Importance of training:
- Improves employee’s ability and skills.
- Leads to high morale among the employees.
- The chances of accidents are very less.
- Become more eligible for promotion.
- Maintain industrial peace in the organization.
Methods of Training
On the job training:
It is a method, where workers learn by doing the work. The following are the important methods of on the job training.
- Apprenticeship training
- Internship training
Off the job training:
- Classroom lecture
- Vestibule training
- Computer modeling
On the job means learning while doing. The following are popular on the job training methods:
1. Apprenticeship Programmes:
Apprenticeship programmes put the trainee under the guidance of a master worker. These are designed to acquire a higher level of skill. People seeking to enter skilled jobs like plumbers, electricians, etc., are required to undergo apprenticeship training.
In this method, the superior guides and instructs the trainee as a coach. The coach or counselor sets mutually agreed upon goals, suggests how to achieve these goals periodically reviews the trainee’s progress and suggests changes required in behavior and performance. The trainee works directly with a senior manager and the manager takes full responsibility for the trainee’s coaching.
3. Internship training:
It is a joint programme of training in which educational institutions and business firms cooperate. Selected candidates carry on regular studies for the prescribed period. They also work in some factory or office to acquire practical knowledge and skills.
4. Job Rotation:
This kind of training involves shifting the trainee from one department to another or from one job to another. This enables the trainee to gain a broader understanding of all parts of the business and how the organization as a whole function. Job rotation allows trainees to interact with other employees. When employees are trained by this method, the organization finds it easy at the time of promotions, replacements or transfers.
Off the job training means learning before doing. The popular off the job methods of training include:
1. Classroom lecture/Conferences:
The lecture or conference approach is used to convey specific information effectively. The use of audio-visuals or demonstrations can often make a formal classroom presentation more interesting.
2. Case Study:
Cases represent attempts to describe, as accurately as possible the real problems faced by the managers. They are generally taken from actual experiences of the organization and its managers. Trainees study the cases to determine problems, analyse causes, develop alternative solutions, select what they believe to be the best solution and implement it.
3. Computer Modeling:
It stimulates the work environment by programming a computer to initiate some of the realities of the job. It also allows learning to take place without the risk or high costs that would be incurred if a mistake occurs in real life situation.
4. Vestibule Training:
Employees learn their jobs on the equipment they will be using, but the training is conducted away from the actual work floor. Actual work environments are created in a classroom and employees use the same materials, tools, and equipment. This is usually done when employees are required to handle sophisticated machinery and equipment.
In order to perform well in an organization, an employee must have the theoretical and practical knowledge of the work. Training provides the practical knowledge that is required of an employee. Thus training is necessary to make the workers alert and active.
Explain the qualities of the good leader.
a. Physical features:
Physical features like height, weight, health, appearance determine the physical personality of an individual. It is believed that good physical features attract people.
A good leader should have required knowledge and competence. Only such person can instruct subordinates correctly and influence them.
A leader should possess high level of integrity and honesty. He should be a role model to others regarding ethics and values.
A leader should have courage and initiative. He should not wait for opportunities come to his way, rather he should grab the opportunity and use it to the advantage of organization.
e. Communication skills:
A leader should be a good communicator. He should have the capacity to clearly explain his ideas and make the people understand his ideas. He should be not only a good speaker but also a good listener, teacher, counselor, and persuader.
f. Motivation skills:
A leader be an effective motivator. He should understand the needs of people and motivate them through satisfying their needs.
A leader should have high level of self-confidence. He should not loose his confidence even in most difficult times. In fact, if the leader lacks self-confidence, he cannot provide confidence to his followers.
Leaders should be decisive in managing the work. Once he is convinced about a fact, he should be firm and should not change opinions frequently.
i. Social skills:
A leader should be sociable and friendly with his colleagues and followers. He should understand people and maintain good human relations with them.
Explain briefly the functions of SEBI?
Keeping in mind the emerging nature of the securities market in India, SEBI was entrusted with the twin task of both regulation and development of the securities market.
It also has certain protective functions:
- Registration of brokers and sub-brokers and other players in the market.
- Registration of collective investment schemes and Mutual Funds.
- Regulation of stockbrokers, portfolio exchanges, underwriters, and merchant bankers and the business in stock exchanges and any other securities market.
- Regulation of takeover bids by companies.
- Calling for information by undertaking inspection, conducting enquiries and audits of stock exchanges and intermediaries.
- Levying fee or other charges for carrying out the purposes of the Act.
- Performing and exercising such power under Securities Contract(Regulation)Act 1956, as may be delegated by the Government of India.
- Training of intermediaries of the securities market.
- Conducting research and publishing information useful to all market participants.
- Undertaking measures to develop the capital markets by adopting a flexible approach.
- Prohibition of fraudulent and unfair trade practices like making misleading statements, manipulations, price rigging, etc.
- Controlling insider trading and imposing penalties for such practices.
- Undertaking steps for investor protection.
- Promotion of fair practices and code of conduct in securities market.
What do you mean by Marketing mix? Explain briefly the elements of marketing mix?
1. Marketing mix is described as the set of marketing tools that a firm uses to pursue its marketing objectives in a target market.
2. This term ‘marketing mix’ is given by Neil H Borden. It refers to aggregate of strategies formulated to achieve various marketing objectives.
3. Marketing mix is the combination of four inputs that revolve around consumer satisfaction as the focal point. These four element are product, price, promotion and the place/ physical distribution. These elements are popularly known as 4 Ps of marketing.
Element of marketing mix:
The marketing mix consists of various elements, which have been broadly classified into four categories popularly known as four Ps of marketing which are as follows:
1. Product mix :
Product means ‘anything of value’ which is offered to the market for sale. Product is one of the main elements of marketing mix. In marketing terms, product refers to anything that satisfies the needs of the consumers. It may be a good, a service or an idea. The product mix has the following important
Brand, Style, colour, design, product line, Package, warranty, etc.
The concept of product also include the extended product or what is offered to the customers by way of after-sale services, handling complaints, availability of spare parts, etc,
2. Price mix:
Price represents the value of a product expressed in terms of money it is the amount of money customers have to pay to obtain the product. The price mix is concerned with fixing a reasonable price to the product or services that cover the cost and distribution expenses as well gets reasonable profits to the manufacturer.
The basic variables related to price mix include pricing strategy, pricing policy, credit – terms, discounts, allowances, etc,
3. Promotion mix:
Promotion of product and services – include activities that communicate availability, features, merits, etc, of the products to the target customer and persuade them to buy it. The promotion mix includes personal selling, publicity, advertising, and sales promotion.
Most marketing organisations, undertake various promotional activities and spend money on the promotion of their goods using promotional tools such as advertising, personal selling etc, the success of a market offer will depend on how well these ingredients are mixed to create superior value for the customers and also achieve their sale and profit objective.
Place or physical distribution include activities that make firm’s products available to the target customers. It is concerned with making available the goods and services at right time, at right place, in right quantity. It enables the smooth flow of goods and services from the producers to the customers.
It creates place, time and possession utilities. The place mix includes distribution channels like agents, wholesalers retailers, etc. and physical distribution which includes transport, warehousing, inventory, etc.
The process of marketing involves creating a market offering, to satisfy the needs and wants of the present and potential buyers. From a number of alternatives available a firm chooses a particular combination to develop a market offering the combination of variables chosen by a firm to prepare its market offering is called as marketing mix.
SECTION – E
V. Answer any two of the following questions.
Each question carrier five marks: (2 × 5 = 10)
As a manager what logical steps you follow in Planning process before executing a project?
As a manager of an organization, what are the modern techniques of controlling you would like to adopt?
Controlling is a systematic process involving the following steps:
- Setting performance standards
- Measurement of actual performance
- Comparison of actual performance with standards.
- Analysing deviations
- Taking corrective actions
Draw the neat diagram of Efficiency-Desirability Matrix to check the ability and willingness of Entrepreneurs.