2nd PUC Business Studies Question Bank Chapter 11 Marketing Management

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Karnataka 2nd PUC Business Studies Question Bank Chapter 11 Marketing Management

2nd PUC Business Studies Marketing Management Text Book Exercises

2nd PUC Business Studies Marketing Management Very Short Answer Questions With Answers

Question 1.
Explain the advantages of branding to marketers of goods and services.
Answer:
Branding is an important function performed by a marketer. It has following advantages to the marketers

Enables marking product differentiation.
Helps in advertising and display programmes.
Differential pricing.
Ease in introduction of new products.

Question 2.
List the characteristics of a good brand name.
Answer:
Following are the characteristics of a good brand name

It should be short, easy to pronounce, recognise and remember e.g., Rin, Vim.
It should suggest product’s qualities e.g .o Genteel, Rasna.
It should be distinctive e.g., Zodiac.
It should be versatile to accommodate new products which are added to the product line e.g, Maggie, Videocon
It should be capable of being registered and protected legally.
Chosen name should have staying powers e.g., it should not get out of date.

Question 3.
What is the societal concept of marketing?
Answer:
The societal concept of marketing means an extension of marketing concept. Apart from the consumer satisfaction, it pays attention to the social, ethical and ecological aspects of marketing.

Question 4.
List the characteristics of convenience products.
Answer:
Following are the characteristics of convenience products

These goods are purchased at convenient locations with least efforts and time.
They have regular and continuous demand.
They are purchased in small quantities and per unit price is low.
They are mostly branded and have standardised price.
The competition is high as the supply is greater than the demand.
Sales promotion schemes play an important role in the marketing of such products.

Question 5.
Enlist the advantages of packaging of a consumer products.
Answer:
Importance of packaging are as given below.

Helps in raising the standards of health and sanitation.
Helps in self service outlets as consumer knows what to buy and can easily decide on their choice.
Innovational opportunity e.g., New types of packaging availability have made it easier to market the product.
Product Differentiation: Packaging is one of the very important means of creating product differentiation.

Question 6.
What are the limitations of advertising as a promotional tool? Enlist.
Answer:
Following are the limitations of advertising

Less forceful
Lack of feedback
Inflexibility
Low effectiveness.

Question 7.
List five shopping products purchased by you or your family during the last few months.
Answer:

Curtains
Shirts
Cosmetics
Travelling bags
Hand bags.

2nd PUC Business Studies Marketing Management Short Answer Questions With Answers

Question 1.
What is marketing? What functions does it play with process of exchange of goods and services? Explain.
Answer:
Marketing is a total system of business activities designed to plan, price, promote and distribute want satisfying goods and services to present and potential customers. Marketing is concerned with exchange of goods and services from producer to consumers which involves many activities.
1. Gathering and Analysing Market Information: This is done to identify the needs of the customers and take various decisions for the successful marketing of the products and services.

2. Marketing Planning Another important activity or area of work of a marketer is to develop appropriate marketing plans, so that the marketing objective of the organisation can be achieved.

3. Product Designing and Development The design of the product contributes to make the product attractive to the target customers.
A good design can improve performance of a product and also give it a competitive edge in the market.

4. Standardisation and Grading: Standardisation refers to producing goods to predetermined specification which helps in achieving uniformity and consistency in the output which reduces the need for Inspection, testing and evaluation of the products.

Grading is the process of classification of products into different groups, on the basis of its features such as quality, size etc. It ensures that goods belong to a particular quality help in releasing higher prices for high quality output.

5. Packaging and Labelling: Packaging refers to designing the package for the products. Labelling refers to designing the label to be put on the package. Packaging provides protection to the product and also helps in its promotion. Labelling helps in self service.

6. Branding: Brand names help in creating product differentiations i.e., how the product can be distinguished from its competitors.

7. Customer Support Service: Marketing management relates to developing customer support service such as after sales services and handling customer complaints. All these aim at providing customer satisfaction which is a key to marketing success.

8. Pricing of Product: Price is an important factor affecting the success or failure of a product in the market. The marketers have to analyse properly the factors determining the price of a product.

9. Promotion: Promotion of products and services involves informing the customers about the firm’s product, its features etc and persuading them to purchase these products. It includes four methods: advertising, sales promotion, personal selling and publicity.

10. Physical Distribution: The important decision areas under physical distribution include managing inventory, storage, warehousing and transportation of goods from one place to another.

11. Transportation: Transportation involves physical movement of goods from one place to another. A marketer has to perform this function very efficiently keeping in mind the nature of product, cost, location of target market etc.

12. Storage or Warehousing: In order to maintain a smooth flow of products in the market, there is a need for proper storage of the products. Further, there is a need for storage of adequate stock of goods to protect against unavoidable delays in delivery or to meet out contingencies in the demand. Wholesalers and retailers play an important role in this.

Question 2.
Distinguish between the product concept and production concept of marketing.
Answer:
Difference between Product and Production Concepts are as given below.

Basis	Product concept	Production concept
Main focus	The focus of the product concept is on quality of the product	The focus here is an quantity of the product
Means	It is achieved through continuous improvement in the quality	It is achieved through increased production leading to lower costs
Objective	Profit maximization through quality improvement	Profit maximization through increased production

Question 3.
Product is a bundle of utilities. Do you agree? Comment.
Answer:
Yes, product is a bundle of utilities, which is purchased because of its capability to provide satisfaction of certain needs. A buyer buys a product or service for what it does for them or the benefits it provides. There can be three types of benefits, it provides to a customer.

functional benefits
psychological benefits
social benefits.

e.g., the purchase of a motorcycle provides functional utility of transportation, but at the same time satisfies the need for prestige and esteem and provides social benefit by the way of acceptance from a group by riding it.

Question 4.
What are industrial products? How are they different from consumer products? Explain.
Answer:
Industrial products are those products, which are used as inputs in providing other products e.g., raw material, engines, tools, lubricants etc.

Basis	Consumer product	Industrial product
Buyer	Consumer is the buyer	Industrial units and the processors are the buyers
Motive	It is purchased for personal consumption	It is bought and used for making other products
Number of buyers	Number of buyers of consumer products is large	Number of buyers is limited in case of industrial products

The difference between consumer products and industrial products is based on their ultimate use and nature of purchases.

Question 5.
Distinguish between convenience product and shopping product.
Answer:
Difference between Convenience and Shopping Product

Basis	Convenience product	Shopping product
Shopping efforts	No or very little efforts are made in purchasing such products	Considerable time is devoted in purchasing such products
Cost	these products have low per unit cost	Unit price of such products is high
Retail outlets	Number of retailers is large	Number of retailers is less
Customerbase	There is regular and continuous demand from the same set of customers	They cater to a large customer base

Question 6.
Products is a mixture of tangible and intangible attributes. Discuss.
Answer:
In marketing, product is a mixture of tangible and intangible attributes which are capable of being exchanged for a value, with ability to satisfy customer needs. Beside physical objects, include services, ideas, persons and places in the concept of product. Thus, product may be defined as anything that can be offered in a market to satisfy a want or need. It is offered for attention, acquisition, use or consumption.

Question 7.
Describe the functions of labelling in the marketing of products.
Answer:
Label on a product provides detailed information about the product, its contents, methods of use etc. 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 that it describes the product, its usage, cautions in use etc and specify its contents.

2. Identification of the Product or Brand: A label helps in identifying the product or brand e.g., we can easily pick our favourite soap from a number of packages, only because of its label.

3. Grading of Products Labels help grading the products into different categories. Sometimes, marketers assign different grades to indicate features or quality of the product e.g., different type of tea is sold by some brands under Yellow, Red and Green label categories.

4. Help in Promotion of Products An important function of label is to aid in promotion of the products. A carefully designed label can attract the customer to purchase. So, many labels provide promotional messages, some show discount or other schemes etc.

5. Providing Information Required by Law Another important function of labelling is to provide information required by law. e.g., the statutory warning on the package of cigarette or pan masala – ‘Smoking is injurious to health’ or ‘Chewing tobacco causes cancer.’

Question 8.
Discuss the role of intermediaries in the distribution of consumer non- durable products.
Answer:
The term channels of distribution refers the facilitate to the movement of goods and services and their title between the point of production and point of consumption, by performing a variety of marketing activities. Following are the functions performed by the channels of distribution
1. Accumulation: It aims at holding the stock to match between consumer demand and supply condition. Warehousing helps in maintaining continuous flow of goods and services.

2. Promotion: The marketing channels also help in promoting the demand for the product by displaying, demonstrating and participating in various promotional activities organised by the producers.

3. Negotiating: The marketing channels are the intermediaries between the producers and the consumers. They attempt to reach final agreement on price and other terms of the offer, so that transfer of ownership is properly effected.

4. Risk-taking: Risk taking is the basic responsibility of the intermediaries. It may arise out of physical deteriorations, changes in price levels, natural calamities, change in fashion etc. These are unavoidable as they hold sufficiently large and variety of inventories till the sale of stock.

5. Grading/Sorting: Grading is the process whereby they sort the products on the basis of different sizes, qualities, moisture contents and so on. It helps in realising the time value on shelf life for the product and at the same time the ultimate consumer feels satisfied with the uniform quality of the product.

6. Packaging: The products are packed in the small tradable lots for the convenience of the consumer.

7. Assembling/Assortment: Marketing channels aim at satisfying the needs of the customers. The products desired by the consumer may not be available in the market. They procure such goods from different sources, assemble or assort them as per the requirements of the consumers.

Question 9.
Explain the factors determining choice of channels of distribution.
Answer:
The choice of channels depend on various factors, which are discussed as follows
1. Product Related Factors The important product related considerations is deciding the channels. It includes whether the’ product is an industrial product or a consumer product. Industrial product require shorter channel and consumer products require longer channel.

2. Company Characteristics The important company characteristics affecting the choice of channels of distribution include the financial strength of the company and the degree of control it wants to hold on other channel member. Direct selling involves lot of foods to be invested in fixed assets say starting own retail outlets or engaging large number at sales force. Similarly if the management want to have greater control on the channel number, short channels are used but if the management do not want more control over the middlemen, it can go in for longer channel or large number of intermediaries.

3. Competitive Factors The choice of channel is also affected by what the competitor has selected as its channel. Sometimes, firm may decide to go for the same channel and sometimes absolutely opposite.

4. Market Factors Important market factors affecting the choice of channel of distribution include size of market, geographical concentration of potential buyers and quantity purchased.

5. Environmental Factors Sometimes environmental factors also helps in deciding the channel of distribution, e.g., in a depressed economy, marketers use shorter channels to distribute their goods In an economical way.

Question 10.
Explain briefly the components of physical distribution.
Answer:
The main components of physical distribution are as follows
1. Order Processing If a firm takes more time to process the order, then the consumer remains dissatisfied. Therefore, order processing has to made faster by using information technology.

2. Inventory Control Inventories ensure the availability of the product as and when consumer demand arises. There are various factors which influence a firm decision regarding the level of inventory e.g., degree of accuracy of sales forecast, cost of blocking of the working capital etc.

3. Warehousing It refers to the storage of goods from the time of production to the time of consumption, Warehousing is important as it creates time utility.

4. Transportation It creates place utility, It refers to the carrying of raw materials or finished goods from one place to another, The most important thing to be kept in mind is that the value addition by transportation should be greater than the cost of transportation.

Question 11.
Define advertising. What are its main features? Explain.
Answer:
Advertising is defined as the impersonal form of communication which is paid form by the marketer to promote some goods or services, It is commonly use as the promotional tool of the company, The important features of advertising are as follows
1. Paid Form Advertising is a paid form of communication which means the sponsor has to” bear the cost of communication with the prospects.

2. Impersonality There is no direct face to face contact between the prospect and advertiser, It is therefore, referred as the impersonal method of promotion.

3. Identified Sponsor Advertising is undertaken by some Identified individual or company, who makes the advertising efforts and also bears the cost of it.

Question 12.
Discuss the role of ‘Sales Promotion’ as an element of promotion mix.
Answer:
Sales promotion includes those marketing activities other than personal selling, advertising and publicity that stimulate consumer purchasing and dealer effectiveness, such as display, shows and exhibitions, demonstrations and various non-current selling efforts not in the ordinary routine, The main objectives of sales promotion activities are

Creation of demand for the product.
Educating the consumers about new products or new uses of the old product.
Building the brand loyalty for the product among the consumers.

2nd PUC Business Studies Marketing Management Long Answer Questions With Answers

Question 1.
Define Marketing. How is it different from selling? Discuss.
Answer:
Marketing is a total system of business activities designed to plan, price, promote and distribute want, satisfying goods and services to present and potential customers, difference between selling and marketing

Basis	Selling	Marketing
Starting point	The selling starts after production has taken place	It stars even before goods are produced.
Main focus	To sell the product	To satisfy the consumer
Means	it is achieved through advertisement personal selling and sales promotion	It is achieved through integrated marketing
Ends /profit maximization	Profit maximization is achieved through volume of sales	Profit maximization is achieved through customer satisfaction

Question 2.
What is the marketing concept? How does it help in the effective marketing of goods and services?
Answer:
Orientation of marketing implies that focus on the satisfaction of customers need, is the key to the success of any organisation in the market. All the decisions in the firm are taken from the point of view of the customers, e.g., What product will be produced, with what features and at what price shall it be sold or where shall it be made available for sale will depend on what do the customers want.
Marketing concept helps in effective marketing of goods and services by using the following.

Identification of market or customer who are chosen e.g the target of marketing effort.
Understanding needs and wants of customers in the target market.
Development of products or services for satisfying needs of the target market.
Satisfying needs of target market better than the competitors.
Doing all this at a profit.

Question 3.
What is marketing mix? What are its main elements? Explain.
Answer:
Marketing mix refers to the combination of four basic elements known as four P’s – Product, Price, Promotion and Place.
1. Product Mix: Product mix basically concerns with the features related to a product e.g., range, quality, size, labelling, packaging, branding etc. All products must satisfy consumer needs and expectations. It aims at providing good quality products at fair prices.

2. Price Mix: It includes decisions relating to price determination, discounts and allowances credit terms. It covers pricing objectives and pricing policies. Price should cover not only cost of production and selling expenses but also a reasonable profit margin. The price policy adopted by the enterprise should not only be cost based but also demand based and competition based.

3. Place Mix: Place mix links the seller and the buyer. The choice of channels of distribution and transport are the two major issues here. There are various factors which help in deciding the channel e.g., the time and the place, where the goods have to reach or transportation. It is the nature of goods, place of destination, cost and availability etc.

4. Promotion Mix: It refers to all marketing activities to increase the volume of sales of the product of an enterprise. It consists of means of marketing communication with a view to informing and persuading the prospective buyers to buy a certain product. It includes advertising, personal selling, publicity and sales promotion.

Question 4.
How does branding help in creating product differentiation? Does it help in marketing of goods and services? Explain.
Answer:
Branding helps a firm in distinguishing its products from that of its competitors. This helps the firm to secure and control the market for its products. If products were sold by generic names, it would be very difficult for the marketers to distinguish their products from their competitors. Thus, most marketers give a name to their product, which helps in identifying and distinguishing their products from their competitors’ products. This process of giving a name or a sign or a symbol etc to a product is called Branding.

Question 5.
What are the factors affecting determination of the price of a product or service? Explain.
Answer:
The factors affecting pricing decisions can be classified into two categories as under:
Internal Factors: These are controllable factors which exist within the company’s environment. They are:
1. Business Objectives: The pricing decision should always be in accordance with the business objectives like growth an expansion and customer satisfaction.

2. Cost of the product: This is the most important factor that determines the pricing decision. The price = Cost + profit. Thus the price for the product or service should cover the entire cost to the manufacturer as well as reasonable profits.

3. Quality of the product: High quality products give rise to higher cost and demands for higher price. But low quality products give rise to low cost and reduces the price.

4. Marketing Mix: The other elements of the marketing mix also influence the pricing decisions. If the other elements ail well co-ordinate, even a high-priced product can be sold easily.

5. Product differentiation: If a business concern differentiate its products from that of the competitors in terms of style, design, colour, package etc., it can change its prices easily than a firm which is too rigid in its product.

External Factors: These are the uncontrollable factors which exist outside the company’s environment. They are:
1. Elasticity of demand: A product that has inelastic demand, higher price may be fixed for that product. But if the demand for the product is elastic the price of the product must be kept flexible.

2. Pricing policy of competitors: The number of competitors and pricing strategies also will have a bearing on the pricing decisions of a concern.

3. Distribution channels: A lengthy distribution channel demands for higher price. On the other hand a shorter distribution channel reduces the price of the product.

4. Government policy: The government policies regarding certain products influence the pricing decision of the concern. Accordingly price needs to be adjusted.

Question 6.
What do you mean by ‘Channels of distribution’? What functions do they play in the distribution of goods and services? Explain.
Answer:
People, institutions, merchants and functionaries, who take part in the distribution of goods and services are called ‘Channels of Distribution’. Channels of distribution are set of firms and individuals that take title or assist in transferring title; to particular goods or services as it moves from the producers to the consumers.

Channels of distribution smoothen the flow of goods by creating possession, place and time utilities. They facilitate movement of goods by overcoming various barriers The important function performed by middlemen are the following.

1. Sorting: Middlemen procure supplies of goods from a variety of sources, which is often not of the same quality, nature and size. These goods are sorted into homogeneous groups on the basis of the size or quality.

2. Accumulation: This function involves accumulation of goods into larger homogeneous stock, which helps in maintaining continuous flow of supply.

3. Allocation: Allocation involves breaking homogeneous stock into smaller, marketable lots to sell them to different types of buyers.

4. Assorting: Middlemen build assortment of products for resale. There is usually a difference between the product lines made by manufacturers and the assortment or combinations desired by the users. Middlemen produce variety of goods from different sources and deliver them in combinations as desired by the customers.

5. Product Promotion : Middlemen also participate in some sales promotion activities, such as demonstration, special display, contests etc., to increase the sales of products.

6. Negotiation: Channels operate with manufacturers on the one hand and customer on the other. They negotiate the price, quality, guarantee and other related matters with customers, so that transfer of ownership is properly effected.

7. Risk-taking : In the process of distribution of goods, the merchant middlemen take title of the goods and thereby assume risks on account of price and demand fluctuations, spoilage, destruction etc.

Question 7.
Explain the major activities involved in the physical distribution of products.
Answer:
Physical distribution covers all the activities required to physically move goods from manufacturer to the customers. Important activities involved in the physical distribution include transportation, warehousing, material handling and inventory control.
1. Order processing: In a typical buyer-seller relationship, order placement is the first step. Products flow from the manufacturers to customers via channel members while orders flow from customers to manufacturers. Therefore, a good speedy and accurate system of order processing becomes a necessity.

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

3. Warehousing: Warehousing refers to the act of storing and assorting products in order to create time utility in them. The basic purpose of warehousing activities is to arrange placement of goods and provide facilities to store them. The need for warehousing arises because there may be difference between the time a product is produced and the time it is required for consumption. Generally, the efficiency of a firm in serving its customers will depend on, where these warehouses are located and where these are to be delivered.

4. Inventory Control: A very important decision to be made in respect of inventory is deciding about the level of inventory. Higher the level of inventory, higher will be the level of service to customers but the cost of carrying the inventory will also be high because a lot of capital would be tied up in the stock. The decision regarding level of inventory involves prediction about the demand for the product. A correct estimate of the demand helps to hold inventory and cost level down to a minimum. The major factors determining inventory levels include the following.

(a) Firm’s policy regarding the level of customer service. Higher the level of service, greater will be the need to keep more inventories.

(b) Degree of accuracy of the sales forecast: In case more accurate estimates are available, the need for keeping very high level of Inventory can beminimised.

(c) Responsiveness of the distribution system i.e., ability of the system to transmit inventory needs back to the factory and get products to the market.

(d) Cost of inventory, which includes holding cost, such as cost of warehousing, tied up capital etc and the manufacturing cost

Question 8.
‘Expenditure on advertising is a social waste’. Do you agree? Discuss.
Answer:
The opponents of advertising say that the expenditure on advertising is a social waste as it adds to the cost, multiplies the needs of the people and undermines social values. The proponents, however argue that advertising is very useful as it increases the reach, brings the per unit cost of production down and adds to the growth of the economy.
Following are the points of criticism and arguments against them.
1. Adds to cost: The opponents of advertising argue that advertising unnecessarily adds to the cost of product, which is ultimately passed on to the buyers in the form of high prices. It is line that advertisement of a product cost lots of money but it helps to increase the demand for the product as large number of potential buyers come to know about the availability of the products, its features etc and are persuaded to buy it. This increases the demand and therefore the production. As a result, the per unit cost of production comes down as the total cost is divided by larger number of units.

2. Undermines Social values: Advertising undermines social values and promotes materialism. It breeds discontentment among people as they come to know about new products and feel dissatisfied with their present state of affairs. This criticism is not entirely true. Advertisement in fact helps buyer by informing them about the new products which may be an improvement over the existing products.

3. Confuses the buyers: Another criticism against advertisements is that so many products are being advertised with similar claims, that the buyer gets confused as to which one is true and which can be relied upon, e.g., There are so many brands of soaps, shampoos, cars. TVs. cell phones etc which are hieing advertised. The supporters of advertisement, however argue that we are all rational human beings who make our decisions for purchase of products on factors, such as price, style, size, etc. Thus the buyers can clear their confusion by analysing the information provided on the advertisements and other sources before taking a decision to purchase a product.

4. Encourages sales of inferior products: Advertising does not distinguish between superior and inferior products and persuade people to purchase even inferior products. The desired level of quality will depend on the economic status and preferences of the target customers. Advertisements sell products of a given quality and the buyers will buy, if it suits their requirements.

5. Some Advertisements are in bad taste: Another criticism against advertising is that some advertisements are in bad taste. They show something which is not approved by some people. Some advertisement spoil the relationship between employer and employee, husband and wife etc.

Conclusion: From the above discussion, we learn that though advertisements are criticised, they still have their own advantages. It is not a complete social waste, rather it adds value to the social cause by giving a boost to production and generating employment.

Question 9.
Distinguish on advertising is a social waste: Do you agree? Discuss.
Answer:
Following are the differences between Advertising and Salesmanship:

Basis	Advertising	Salesmanship
Nature of communication	It involves impersonal and mass one way communication.	It involves direct face to face two way communication.
Coverage	It has a wider coverage at a time.	It covers only individual or a small group of people at a time.
Flexibility	It is less flexible.	It is more flexible.
Feedback	It does not provide feedback immediately.	It provides feedback immediately.
Object	It aims at creation of customers.	It aims at selling the product or service.
Clarification of doubts.	Doubts cannot be clarified easily.	Here doubts can be clarified easily. .
Cost and Time	It is less costly and less time consuming.	It is more costly and more time consuming.
Media/Tools	It uses TV, Radio, Newspapers, Journals etc	Sales representatives are the only tool used here.

2nd PUC Business Studies Marketing Management Application Based Problems

Question 1.
As marketing manager of a big hotel located at an important tourist destination, what societal concerns would be faced by you and what steps would you plan to take care of these concerns? Discuss.
Answer:
The societal marketing concept holds that the task of any organisation is to identify the needs and wants of the target market and deliver the desired satisfaction in an effective and efficient manner, so that the long term well-being of the consumers and the society is taken care of. In case any business activity encourages pollution, deforestation, storage of resources, population explosion, then its benefits cannot be justified. As marketing manager of a big hotel located at an important tourist destination certain care need to be taken regarding environment.

Proper drainage facility
In-built plant for re-cycling the waste
Solar geysers to be used
Rain water harvesting
Proper maintenance of greenery-lawns, parks, gardens
CNG based vehicles to be used to provide transport facility to the jguests.

Question 2.
Suppose you are the Marketing Vice President of an Insurance Company, planning to design a new mediclaim policy for senior citizens. What information would you like to collect to perform this task and how will you collect such information? Discuss.
Answer:
The following information about the senior citizens should be collected

Age of the senior citizen
Their source of income
Medical background.
Present working status

There are various sources of collecting the above information – personal visits, questionnaires, medical reports from nursing homes, doctors, clinics etc.

Question 3.
What shopping products have been purchased by you/your family in the last six months? Make a list and specify what factors influenced the purchase of each of these products.
Answer:
The following shopping goods were purchased by my family

Clothes: Price, fashion, occasion for which they were bought.
Refrigerators: Brand, price, features, looks, durability.
Shoes: Size, price, brand, material used.
Furniture (study table): Design, quality, finishing, comfort level, cost.

Question 4.
What information is generally placed on the package of a food product? Design a label for one of the food product of your choice.
Answer:
The following information is normally placed, on the package of good product

Name of the product
Brand name
Veg/Non-veg sign (green/red dot)
Price
Manufacturing date and date of expiry
Ingredients
Net weight
Directions of use
FPO mark
Preservations used

Question 5.
For buyers of consumer durable products, what ‘customer care services’ would you plan as a manager of a firm marketing new brand of motorcycle. Discuss.
Answer:
For marketing motorcycles, the following customer care services can be planned

Specified period warranties
Easy monthly instalments
Exchange offer
0% finance scheme
Free servicing

2nd PUC Business Studies Marketing Management Case Problems Studies

Nokia takes four-lane road to consumers.
NEW DELHI After having grabbed a king size 79% share of the 15,000 crore mo-bile handset market in India, Nokia India has found a new way of connecting people.

The mobile handset manufacturer has embarked upon a brand new retail strategy that is based on a classification of its consumers into four major groups that separates people in terms of usage, income level and lifestyle.

The classification is based on an extensive survey- the Nokia Segmentation Study – that was carried over two years involving 42,000 consumers from 16 countries. It studied the impact lifestyle choices and attitudes have on the mobile devices consumers buy and how they use them.

The strategy, which was announced globally in June last year, is being unfolded in India now. While the nitty-gritty of the new strategy is still being worked out, it is likely that the company would follow separate marketing strategies for the four different segments. The advertising campaigns could be different for the segments.

Nokia’s entire product portfolio has now been re-aligned towards these four groups to address the specific needs of each. The first of these segments Live, aimed at first time users whose basic need is to stay in touch with voice as the main driver, would have basic handsets low on features and price.

“These may be functional phones but the target group for these phones range from SEC C (low socio-economic class) to SEC A1 4- (very high socio-economic class) markets”, says Nokia India marketing head Devinder Kishore. The second segment Connect looks at more evolved users who look- for more functionality and features and connectivity. Accordingly, phones in this segment would have GPRS, camera and music capabilities.

The next two categories, Achieve and Explore, are aimed at high-end users and have Nokia’s top-end handsets, e.g., Achieve segment looks at enterprise users who need to have business functionalities in their phones. Nokia’s new E-series has been put under this segment with handsets having QWERTY keyboards and full Internet capabilities.

Aimed at high-end lifestyle users, Explore would be the most prominent segment for the company in the coming years. Says Nokia India multimedia business director Vineet Taneja, “This segment would see the most vibrant growth in the coming year. It will look at five different areas-applications, imaging, mobile, TV, music and gaming. We are fast developing (the ecosystem to support these areas.”

Nokia acquired music solution and content provider LoudEye and GPS solution provider Gate5. It is all slated to launch its most high-profile handset, which boasts of having a 5 mega pixel camera and GPS capabilities apart from iPod quality music, in February.

Says Taneja, “There is increasing demand for convergence and multiple functionalities, in high-end handsets. The N-series will try to address that”. Nokia feels that the new platform strategy wherein different handsets are launched under a platform, like the N- Series, will become a status and style statement and drive numbers.

Question 1.
Identify the four market segments that Nokia plans to address as per the news report above.
Answer:
Live, Connect, Achieve and Explore.

Question 2.
What is the basis of classification of the market used by the company?
Answer:
SEC Socio-Economic Class, usage and lifestyle

Question 3.
What do you mean by realignment of product portfolio? Illustrate this from the case above.
Answer:
It means that whatever product Nokia is planning to develop now, it will be according to the needs of the consumers. The four different handsets are Live, Connect, Achieve and Explore, being planned keeping the needs of four different types of users.

Question 4.
Identify the points that can be highlighted in marketing campaigns for each segment.
Answer:
The points that can be highlighted in marketing campaigns for each segment can be

Latest model
Reasonable price
Better performance
Advanced technology
Consumer friendly

Question 5.
What are the different considerations in the mind of consumers of each segment while purchasing mobile phones as given in the above case?
Answer:
The different considerations in the mind of each segment while purchasing mobile phones are these.
1. The first of these segments Live, aimed at first time users whose basic need is to stay in touch with voice as the main driver, So, here price of the phone is the main consideration.

2. The second segment Connect looks at more evolved users who look for more functionality and features and connectivity. So, here the features of the phone as well as an economic price tag are considered.

3. The next two categories, Achieve and Explore, are aimed at high end users. So, here the uniqueness of the handset and its business functionalities are the main points considered by the consumer.

2nd PUC Business Studies Marketing Management Additional Questions

2nd PUC Business Studies Marketing Management One Mark Questions and Answers

Question 1.
What is market?
Answer:
Market is place where buyers and sellers meet to effect purchase and sales

Question 2.
Name any one element of marketing mix.
Answer:
Product mix

Question 3.
Mention one function of marketing.
Answer:
Gathering and analyzing market information

Question 4.
State a factor affecting pricing decision.
Answer:
Cost of the product

Question 5.
Name a middleman in the channel of distribution.
Answer:
Wholesaler & retailer

Question 6.
Name any one features of advertisement.
Answer:
To inform the people about the introduction of the new product/service in the market.

Question 7.
Mention any one essential of an advertisement copy.
Answer:
Attention value

Question 8.
State a feature of personnel selling.
Answer:
Informative

Question 9.
What is a brand?
Answer:
Brand is a name, letter, term, symbol, mark, or design or a combination of these, intended to identify the goods or services

Question 10.
What is a Price?
Answer:
Price is a value of product expressed in terms of money

Question 11.
State any one method of sales promotion.
Answer:
Rebate of discount or offers.

Question 12.
State any one channel of distribution?
Answer:
Retailer or wholesaler

Question 13.
Mention any one objective of advertising?
Answer:
To create demand

Question 14.
Give an example for quantity gift?
Answer:
Pepsodent Tooth Paste – Buy 250 grams and get 100 grams FREE!!!

Question 15.
What is product?
Answer:
A product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or a need.

Question 16.
State any one of the element of product.
Answer:
Brand

Question 17.
State any one of the element of promotion.
Answer:
Publicity

Question 18.
State any one of the objectives of the advertising.
Answer:
Creation of monopoly.

Question 19.
State any one of the advantage of advertising.
Answer:
Advertising helps to maintain steady and regular demand for the product or service of a concern.

Question 20.
State any one of the qualities of a successful salesman,
Answer:
Physical Qualities.

Question 21.
State any one of the objectives of sales promotion.
Answer:
To attract the. potential customers.

2nd PUC Business Studies Marketing Management Two Marks Questions and Answers

Question 1.
What is marketing?
Answer:
It is human activity directed at satisfying the needs and wants through exchange process.

Question 2.
Name any two elements of marketing mix.
Answer:
Product mix, price mix

Question 3.
What is branding?
Answer:
Banding is a distinctive processing of assigning as brand by whicha product can be identifies and remembered easily by the customer.

Question 4.
State the meaning of grading.
Answer:
Grading is the process of sorting out individual unit of a product in to well defined classes that possess similar characteristics of size & quality.

Question 5.
What is packing?
Answer:
It refers to placing product in suitable packages for safe & easy, handling

Question 6.
What do you mean by packaging?
Answer:
It involves designing & producing such appropriate packages for each unit of the product as well as for the bulk unit of the product.

Question 7.
What is warranty?
Answer:
It is a promise made by the producer that any repair, exchange or to replace the product if any manufacturing defect is found in the product with in mentioned time period from the date of purchase.

Question 8.
What is guaranty?
Answer:
It is a guaranty given by the marketer that the quality, durability of a product is good and free from any manufacturing defects and that the product will be replaced/ repaired at free of cost.

Question 9.
What do you mean by labeling?
Answer:
It refers to designing and affixing appropriate label to a product or its container.

Question 10.
Give the meaning of product.
Answer:
A product is bundle of utilities consisting of various product features and accompanying sendees.

Question 11.
What is pricing?
Answer:
It is process of fixing or determining reasonable price to the product or service.

Question 12.
Give the meaning of publicity.
Answer:
Publicity is used to promote different brands, product, persons, places, ideas and activities.

Question 13.
What is advertising?
Answer:
Any paid from of non personal presentation & promotion of ideas, goods or services by an identified sponsor.

Question 14.
What do you mean by sales promotion?
Answer:
It refers to all those activities designed to boost the sales of a product or services.

Question 15.
What do you mean by personnel selling?
Answer:
Personal selling is also known as salesmanship. It is an art of making prospective buyers to buy the product or service.

Question 16.
What do you mean by advertisement copy?
Answer:
The advertising message is known as advertisement copy.
Advertisement copy is taken as the life or the physical form to the idea of advertisement.

Question 17.
Write any two differences between advertising & personnel selling.
Answer:

SL.No	Advertising	Personal Selling
1.	It is impersonal in Nature	It is personal in Nature
2.	It is Expensive	It is comparatively Economical

Question 18.
Mention any two channels of distribution.
Answer:
Direct selling or channel – Selling Without Middlemen Indirect selling or channel – Selling through Middlemen

Question 19.
What is sweeps takes?
Answer:
It is a promotional tactic in which the prizes ranging from small items to bigger items or services are offered to the winner chosen through lucky draw.

Question 20.
Define marketing.
Answer:
Marketing is that phases of business activity through which human wants are satisfied by the exchange of goods and services.

Question 21.
Define market.
Answer:
Market is an area or atmosphere for a potential exchange.

Question 22.
State any two difference between marketing & selling.
Answer:

SL. No	Marketing	Selling
1.	It is Focused Towards Customer Needs	It is Product Focused
2.	It is concerned with the Needs of the Customers	It is concerned with the necessities of the seller

Question 23.
State any two functions of marketing.
Answer:

Gathering and analyzing market information
Market planning

Question 24.
What is marketing mix?
Answer:
Marketing mix refers to aggregate of strategies formulated to achieve various marketing objectives.

Question 25.
State any two factors which affects pricing decision.
Answer:
1. Business Objectives: The pricing decision should always be in accordance with the business objectives like growth an expansion and customer satisfaction.

Question 26.
What do you mean by channels of distribution?
Answer:
It refers to the route or path, over which the products flow from the producer to the consumer.

Question 27.
Define promotion.
Answer:
It is a process of communication with the potential buyers involving information, persuasion & influence.

Question 28.
State any two objectives of advertising.
Answer:
To support personal selling programme.

2nd PUC Business Studies Marketing Management Four Marks Questions and Answers

Question 1.
Write any five factors affecting pricing decisions.
Answer:
The factors affecting pricing decisions can be classified into two categories as under:
Internal Factors: These are controllable factors which exist within the company’s environment. They are Business Objectives, Cost of the product, & Quality of the product.
1. Business Objectives: The pricing decision should always be in accordance with the ‘ business objectives like growth an expansion and customer satisfaction.

2. Cost of the product:- This is the most important factor that determines the pricing decision. The price = Cost + profit. Thus the price for the product or service should cover the entire cost to the manufacturer as well as reasonable profits.

3. Quality of the product: High quality products give rise to higher cost and demands for higher price. But low quality products give rise to low cost and reduces the price.

External Factors: These are the uncontrollable factors which exist outside the company’s environment. They are Elasticity of demand, Pricing policy of competitors etc
1. Elasticity of demand: A product that has inelastic demand, higher price may be fixed for that product. But if the demand for the product is elastic the price of the product must be kept flexible.

2. Pricing policy of competitors: The number of competitors and pricing strategies also will have a bearing on the pricing decisions of a concern.

3. Distribution Channels: A lengthy distribution channel demands for higher price. On the other hand a shorter distribution channel reduces the price of the product.

Question 2.
Explain briefly the channels of distribution.
Answer:
The Channels of distribution refer to the route or path, over which the products flow from the producer to the consumer. It can be classified into two main categories as under:
1. Direct Channel/Selling without middlemen: It is one of the channels of distribution under which the manufacturer sells his products directly to the ultimate consumers without the help of any middlemen. E.g Industrial goods and agricultural goods follow this channel.

2.Indirect Channels: Here the producer sells his products to the ultimate consumer through one or more middlemen. This indirect channel consists of the following distribution channels:

One Level Channel(Producer-Retai!er-Consumer channel): Under this channel, goods are sold by the manufacturer directly to the retailers, and retailers in turn sell the same to the consumers. This channel is suitable in departmental stores, super bazaars, chain stores etc.
Two level Channel(Producer-Wholesaler-Retailer-Consumer channel): Under this channel, goods move from the manufacturer to the wholesalers, from wholesalers to the retailers and from retailers to the ultimate consumers. This channel is suitable for distribution of soaps, detergents, edible oil, clothes, food products etc.
Three Level Channel (producer-Agent-Wholesaler-Retailer-Consumer): This is the longest channel of distribution. Under this channel the manufacturer hands over his entire foods to the agent and get relieved of the problem of distribution. This channel is used for textiles, cool drinks, cosmetics etc.

Question 3.
State the objectives of advertising.
Answer:
The objectives of advertising are:

To influence the behavior of prospective buyers favorably towards the product or service of the firm.
To inform the people about the introduction of the new product/service in the market.
To create the demand for the new product and to maintain the demand for existing product.
To support personal selling programme.
To enter a new market or attract a new group of customers.
To bring an awareness among consumers about the existence of duplicate products.
To create brand preference and loyalty.
To fight against competition in the market and thereby increase the sales.
To improve the market share for the firm’s product.

Question 4.
What are the merits of advertising?
Answer:
Some of the general merits of advertising are given below:

Steady demand: Advertising helps to maintain steady and regular demand for the product or service of a concern.
Increase in Sales: Constant advertising helps to increase the sales volume for both producers and traders.
Economies of production: Advertising leads to creation of more demand which in turn leads to large scale production and thereby reducing cost per unit of the. product or service.
Convenience: Advertising helps the consumers in making their purchases more convenient and comfortable, as their time and efforts are reduced in shopping.
Education of consumers: Advertising educates the consumers by giving them details about the new products that can satisfy their needs.
Better Standard of Living: Advertising helps the people to improve their living standards by persuading them to purchase newer and better quality products.
Employment: Advertising creates more employment opportunities directly in the advertising industry as well as indirectly in other industries.

Question 5.
Give the limitations of advertising.
Answer:
Some of the limitations of advertising are:

Less effective: It .is less effective medium of promotion as there is no face to face interaction between the seller and customer.
Lack of feedback: It is difficult to ascertain the effectiveness of advertising, as there is no immediate feedback from the customers to the producer or seller.
Rigid: Advertisement copy once prepared cannot be changed easily to suit each individual. It gives only a general appeal.
Confusion among customers: Too many advertisements on a similar type of products, making similar claims may result in confusion among customers in choosing the right product.
Additional cost: Advertising expenses are included in the total cost of the product which increases the cost of the product that is recovered from the customers.
Misleading: Customers are cheated by misleading advertisements. Claims made in advertisements seem to be untrue when product is purchased and put to use practically.

Question 6.
What are the arguments raised against advertising?
Answer:
The following arguments are raised against advertising:

Advertising multiplies the needs and wants of the people by inducing them to but things which they do not require.
The expenses spent on advertisement are ultimately absorbed into cost per unit of a product/service. The effect is increase in price to the consumers
Many advertisements of similar products create confusion among the customers.
Big companies which can spend more money for advertisement create monopoly which hampers the growth of small companies.
Some advertisements influence the consumers by their design and style rather than their actual performance.
Some advertisements are indecent and unethical.
Advertisement does not always increase the demand and sale of the product, but it merely shifts the demand from one product to another.

Question 7.
What are the essentials of a good advertisement copy?
Answer:
Some the essentials of a good advertisement copy are:
Attention Value: Every advertisement copy should be designed with a high degree of attraction of the viewers. Use of catchy slogans, colorful picture, design borders etc in the ad copy will attract the attention of the viewers, towards product or service.

Memorizing value: The advertisement copy should be such that it should last for long in the minds of people. For example the advertisement for. “Washing powder Nirma” is remembered even today.

Suggestive value: The ad copy should highlight the need and necessity of the product/ service. For example, “Boost is the secret of my energy.” Suggests that boost is a healthy drink and gives good energy throughout the day.

Educational value: The ad copy should educate the customers by giving useful information about the usage of the product. For eg.advertisement for “Iodex” in TV gives the various purpose for which it can be used and how to use it.

Sentimental Value: Human behavior is affected by sentiments. Hence the ad copy should be prepared in such a way that it does not cause any damage to their sentiments.

Simplicity: The ad copy should be simple to understand and convincing to the people. Vague and confusing texts in advertisements should be avoided.

Question 8.
What are the features of Personal Selling?
Answer:
Informative: Personal selling is informative in nature. The seller or his representatives provide information about the product and its use.

Persuasive: It involves the act of persuasion by the salesmen to but products or services by a prospective buyer.

Demonstrative: The salesmanship allows for demonstration of the working of the product in the presence of the customer.

Creative: Personal selling is creative in nature. The salesman should be creative in increasing the demand for the product or service.

Face to face contact: Personal selling involves direct face to face contact between the buyers and sellers and influence better sales.

Flexibility: Personal selling is highly flexible in nature. The salesman can adjust their way of approach and attitudes according to the customers.

Question 9.
What are the objects of Sales Promotion?
Answer:
Some of the objects of sale promotion are:

To stimulate the enquiries about the product/service either from the customers or from the dealers.
To increase sales volume by inducing customers to buy more.
To encourage repurchase among the customers by making them brand loyal.
To attract the potential customers. ,
To retain the existing customers.
To build a database of the customers.
To inform customers about the new product that is introduced into the market.
To create good public image of the product and the concern.

Question 10.
Briefly explain any 5 sales promotion methods.
Answer:
Some of the commonly used sales promotion methods are as follows:
(a) Rebate/Discount: Rebate refers to discount. Many producers offer products at special prices in order to clear their excess stock.

(b) Refunds: Producers may offer to refund a part of price paid by customer. For this the customers are required to send to the producer some proof of purchase like duly filled in refund offer card or wrapper etc.

(d) Quantity Gift: Under this sales promotion method, the producers offer extra quantity of the same product/service to the buyers upon purchase.

(e) Instant Draws and Assured Gifts: Under this method producers try to win customers by offering assured prizes on purchase of their particular product or on minimum purchase of their range of products.

2nd PUC Business Studies Marketing Management Eight Marks Questions and Answers

Question 1.
What do you mean by Marketing Mix? Explain briefly the elements of marketing mix. ,
Answer:
Marketing Mix is the combination of four inputs that revolve around the consumer satisfaction as the focal point. These.four elements are product, price, promotion and the place, known as 4 p’s of marketing mix.
Product Mix: Product is one of the main elements of the marketing mix. It occupies a dominant position. A 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 elements-

Brand.
Colour,
Product line.
Warranty.

Price Mix: Price represents the value of a product expressed in terms of money. The actual profits accrue to the producer/seller only through the price. The price mix is concerned with fixing a reasonable price to the product / service that covers the cost and distribution expenses as well gets reasonable profits to the manufacturer. The elements of Price Mix are-

Pricing strategy
Pricing policy
Credit terms.
Discounts
Allowances.

Promotion Mix: The promotion mix mainly deals with informing about company’s products or services to the potential consumers and stimulating them to purchase the same. The promotion mix includes the following elements:

Personal selling.
Advertising.
Publicity.
Sales promotion.

Place Mix: Place or physical distribution mix is concerned with making available of the goods and services at right time, at right place and in right quantity. It enables for the smooth flow of goods & services from the producers to consumers. It creates place, time and possession utilities. The place mix includes the following elements:

Distribution channels (Agents, Wholesalers, Retailers),
Physical Distribution (Transport, Warehousing, Inventory)

Question 2.
What are the qualities of a successful salesman?
Answer:
The basic qualities which every salesman should possess in order to be a successful salesman
are:
(a) Good health and appearance: The salesman should have good health. There can be sound mind only in a sound body and health gives energy to work hard. Good appearance includes pleasant facial expressions, smart dress, personal cleanliness, good habits etc. which attracts the attention of customers towards the salesman.

(b) Good Posture: Good posture means upright bearing and carriage. A salesman should have a good posture which ensures confidence and commands respect from the customers.

(c) Voice and Conversational habits: A salesman should modulate his voice to be natural so as to attract the attention of customers.

(d) Cheerfulness: A salesman should possess a smiling face to attract all types of customers to him.

(e) Initiative: A salesman’s job needs considerable amount if initiative unlike, other jobs. It means an ability to work without continuous direction.

(f) Intelligence and imagination: Intelligence means quickness in understanding, better selling methods. Salesman should have imagination to look at things from the consumer’s point of view.

(g) Presence of mind:Presence of mind is the quickness in grasping the situation and handling it according to the needs of the time.

(h) Sharp memory: A good salesman should possess sharp memory which helps to recognize his customers and remember their requirements.

(i) Sociability: A salesman should have a liking for people to mix with them.

(j) Courtesy with good manners: He should be courteous in his behavior with all customers and especially with women customers.

(k) Honesty and Loyalty: A salesman should be honest in making representation about the products to the customers. He must be loyal to his employer.

Question 3.
Bring out the merits and demerits of advertising.
Answer:
Some of the general merits of advertising are given below:

Steady demand: Advertising helps to maintain steady and regular demand for the product or service of a concern.
Increase in Sales: Constant advertising helps to increase the sales volume for both producers and traders.
Economies of production: Advertising leads to creation of more demand which in turn leads to large scale production and thereby reducing cost per unit of the product or service.
Convenience: Advertising helps the consumer in making their purchases more convenient and comfortable, as their time and efforts are reduced in shopping.
Education of consumers: Advertising educates the consumers by giving them details about the new products that can satisfy their needs.
Better Standard of Living: Advertising helps the people to improve their living standards by persuading them to purchase newer and better quality products.
Employment: Advertising creates more employment opportunities directly in the advertising industry as well as indirectly in other industries.

Some of the limitations of advertising are:

Less effective: It is less effective medium of promotion as there is no face to face interaction between the seller and customer.
Lack of feedback: It is difficult to ascertain the effectiveness of advertising, as there is no immediate feedback from the customers to the producer or seller.
Rigid: Advertisement copy once prepared cannot be changed easily to suit each individual. It gives only a general appeal.
Confusion among customers: Too many advertisements on a similar type of products, making similar claims may result in confusion among customers in choosing the right product.
Additional cost: Advertising expenses are included in the total cost of the product which increases the cost of the product that is recovered from the customers.
Misleading: Customers are cheated by misleading advertisements. Claims made in advertisements seem to be untrue when product is purchased and put to use practically.

Question 4.
Briefly explain the methods of sales promotion.
Answer:
Some of the commonly used sales promotion methods are as follows:
Rebate/Discount: Rebate refers to discount. Many producers offer products at special prices in order to clear their excess stock.

Refunds: Producers may offer to refund a part of price paid by customer. For this the customers are required to send to the producer some proof of purchase like duly filled in refund offer card or wrapper etc.

Product Complement: Producers offer another product at free of cost upon purchase of the main product kept for sale. ,

Quantity Gift: Under this sales promotion method, the producers offer extra quantity of the same product/service to the buyers upon purchase.

Instant Draws and Assured Gifts: Under this method producers try to woo customers by offering assured prizes on purchase of their particular product or on minimum purchase of their range of products.

Lucky Draw: Under this method, the producers/retailers offer many gifts that may have very high for too low value purchase.

Usable Benefit: Under this method the customers are offered some benefit on every purchase to be used in the subsequent purchase with the same seller.

Full finance at lower rates: Many marketers of consumer durables such as Electronic goods, Automobiles etc., offer easy financing schemes at lower rates.

Free samples: When a new product of lesser economic value is launched, the producers offer free sample of such products to the visiting customers to the visiting customers at noted outlets.

Sweepstakes and Contests: Sweepstakes is a promotional tactic in which the prizes ranging from small items to bigger items or services are offered to the winners chosen through lucky draw. Contests are the tests of skills or talent conducted among the visitors to the shops by the sponsor. The tests may vary as per the age group.

2nd PUC Business Studies Marketing Management Five Marks Questions and Answers

Question 1.
As an advertiser, what essentials do you expect in a good advertisement copy?
Answer:
Some the essentials of a good advertisement copy are:
Attention Value: Every advertisement copy should be designed eith a high degree of attraction of the viewers. Use of catchy slogans, colorful picture, design borders etc in the ad copy will attract the attention of the viewers, towards product or service.