CBSE Class 12 Business Studies Marketing Management Worksheet Set F

NCERT Solutions for Class 12 Business Studies Chapter 11 Marketing Short Answer Type Questions

Question. Differentiate between ‘Production Concept Philosophy’ and ‘Product Concept Philosophy’ on the basis of :
(i) Meaning
(ii) Main Focus
(iii) Ends.
Answer: Difference between ‘Marketing Concept Philosophy’ and ‘Selling Concept Philosophy’ : 

Question. Identify and explain the marketing management philosophy which implies that products and services are bought not merely because of their quality or brand name, but because they satisfy a specific need of a customer.
Answer: Marketing concept :
(i) It assumes that in the long run, an organisation can achieve its objective of maximisation of profit by identifying the needs of the present and prospective buyers and satisfying them in an effective way.
(ii) Customer satisfaction is the focus point of all decision making in the organisation.

Question. Differentiate between ‘Marketing Concept Philosophy’ and ‘Production Concept Philosophy’ on the basis of :
(i) Meaning (ii) Main Focus
(iii) Means.
Answer:

Question. Mansi, a shoe manufacturer for school students, decided to maximise her profit by more production and appropriate distribution at a large scale thereby reducing the average cost of production.
(i) Identify the marketing management philosophy adopted by Mansi.
(ii) Explain this philosophy on the basis of :
(a) Main Focus
(b) Means and Ends. 
Answer:
(i) Production Concept.
(ii) (a) Main Focus : This concept emphasises on quantity of the product.
(b) Means : Availability and affordability of the product is considered as the means to success under the production concept. Ends : It is believed that profits can be maximised by reducing the production cost through the mass production.

Question. Differentiate between ‘Production Concept Philosophy’ and ‘Product Concept Philosophy’ on the basis of :
(i) Meaning
(ii) Main Focus
(iii) Ends.
Answer: Difference between ‘Production Concept Philosophy’ and ‘Product Concept Philosophy’ :

Question. State any four functions of Packaging.
Answer: Functions of packaging : (i) Product Identification : Packaging greatly helps in identification of the products. For example, Colgate in red colour, or Ponds cream in jar can be easily identified by its package. (ii) Product Protection : Packaging protects the contents of a product from spoilage, breakage, leakage, pilferage, damage, climatic effect, etc. This kind of protection is required during storing, distribution and transportation of the product.
(iii) Facilitating Use of the Product : The size and shape of the package should be such that it should be convenient to open, handle and use for the consumers. Cosmetics, medicines and tubes of toothpastes are good examples of this.
(iv) Product Promotion : Packaging is also used for promotion purposes. A startling colour scheme, photograph or typeface may be used to attract attention of the people at the point of purchase. Sometimes it may work even better than advertising. In self-service stores, this role of packaging becomes all the more important.

Question. What is meant by ‘Selling Concept’ of marketing?
Answer: According to the selling concept, firms believe that aggressive selling and promotional efforts will convince a customer to buy the product. Due to increased competition, only quality and availability of the product do not ensure survival and growth of the firm. So, the main focus of the selling concept is to conduct aggressive selling and promotional efforts to make customers buy their products.
It must be noted that a selling concept can succeed in the short-run but not in the long-run.

Question. R&T Reality, the property development arm of the construction and engineering giant R&T, in a recent report to the media shared that it is betting on bigger and better projects providing greater benefits to the customers, lower prices and faster execution to boost its growth. The spokesperson of the company informed the media that besides the innovative features, quality and brand, the fair pricing followed by the company is also a hit with the buyers. He said that the company is also focusing on accurate, speedy and timely delivery. Proper communication with the market was being maintained through advertising. Even dealers were to be offered incentives to boost the sales. The above para describes the combination of variables used by R&T Reality to prepare its market offering. Identify and explain the variables. 
Answer: The following are the variables used by R&T Reality to prepare its market offering :
(i) Product : Product means goods or services or ‘anything of value’, which is offered to the market for sale. The concept of product relates to not only the physical product but also the benefits offered by it from customer’s view point. The concept of product also includes the extended product or what is offered to the customers by way of after sales services, handling complaints, etc. The important product decisions include deciding about the features, quality, packaging, labelling and branding of the products. (ii) Price : Price is the amount of money customers have to pay to obtain the product. The marketers have not only to decide about the objectives of price setting but to analyse the factors determining
the price and fix a price for the firm’s products. Decisions have to be taken in respect of discounts to customers, traders and credit terms, etc. so that the customers perceive the price to be in line with the value of the product.
(iii) Place : Place or physical distribution include activi-ties that make firms products available to the large customers. Important decision areas in this respect include selection of intermediaries to reach the cus-tomers, providing support to the intermediaries. The other decision areas relate to managing inventory, storage and warehousing and transportation of goods from the place it is produced to the place it is required by the buyers.
(iv) Promotion : Promotion of products and services include activities that communicate availability, features, merits, etc. of the products to the target customers and persuade them to buy it.
Most marketing organisations undertake various promotional activities and spend substantial amount of money on the promotion of their goods through using number of tools such as advertising, personal selling and sales promotion techniques.

Question. A company was marketing ‘water purifiers’ which were very popular due to their quality and after sales services provided to the customers. The company was a leading company in the market and earning huge profits. Because of huge profits, the company ignored the after sales services. As a result, its relations with the customers got spoiled and the image of the company was damaged in the public. Top management became concerned when the profits for the current quarter fell steeply. On analysis, it was revealed that ignoring the after sales services was its reason. Therefore, the company took all possible measures to protect and promote its favourable image in the eyes of the public. As a result, the goodwill of the company improved in the society.
(i) Name and state the communication tool used by the marketer in the above case to improve its image.
(ii) Also explain role of the tool as identified in part (i).
Answer:
(i) Public Relations Public Relations refer to a variety of programmes to promote and protect a company’s image or its products in the eyes of the public.
(ii) Role of Public Relations :
(a) Press Relations,
(b) Product Publicity,
(c) Corporate Communication,
(d) Lobbying,
(e) Counselling,
(f) Smooth functioning of business,
(g) Image building,
(h) Launching new products,
(i) Facing adverse publicity,
(j) Supplementing advertising,
(k) Satisfying interest of different public groups,
(l) Building awareness,
(m) Building credibility,
(n) Stimulating sales force,
(o) Lowering promotion costs,

Question. Your company has set-up a food processing unit in Kashmir with a production capacity of 10,000 litre of apple juice per day. The company plans to market the apple juice in tetra pack of 100 millilitre. Design a label for the same.
Answer: The following information is to be provided on the label in any form : Name of the product/Apply Name of the manufacturer/Fine Juice Ltd. Address of the manufacturer/54, Chandni Chowk Net weight when packed/200 ml Manufacturing date/20th July 2015 Expiry date/20th December 2015 Maximum retail price (MRP)/30 Batch number/D 4567 Directions for use : To be consumed within 3 days of opening Contents/Juice concentrate, sugar, preservatives.

Question. Your company has set-up a coconut hair-oil factory in Coastal Kerala, with a production capacity of 10,000 bottles of 100 millilitre per day. The company plans to market the hair-oil with the brand name ‘Kale Kesh’. Design a label for the hair oil bottles. A [Outside Delhi Comptt. 
Answer: The following information is to be PROVIDED ON THE LABEL IN ANY FORM : Name of the product : Kale Kesh Name of the manufacturer/Future Oils Ltd. Address of the manufacturer/54, Chandni Chowk Net weight when packed/100 ml Manufacturing date/20th July 2015
Expiry date/20th December 2016 Maximum retail price (MRP)/40 Batch number/D 4567 Directions for use/For best results, massage with luke warm oil.

Question. What is meant by ‘Production Concept’ of marketing? 
Answer: Production Concept : Production concept of marketing philosophy believes that customers are interested only in the low priced products, easily and extensively available goods and finer points of the product are not very important to them. Hence, producers believe that they must concentrate only on efficient and extensive production. A company which believes in this approach, concentrates and achieves high production efficiency and wide distribution coverage, resulting in lower cost of production.

Question. Sara was pursuing her graduation. Everyday she saw her mother working tirelessly at home after coming back from her work-place. She decided to start a tiffin service to increase her family income. To begin with she started supplying tiffin only in the neighbourhood. Everyday she detailed out the menu after consulting her mother. For informing the people about her service she designed a beautiful informative pamphlet, got it printed and started distributing it through the daily newspapers. She also appointed two delivery boys to deliver tiffins. The business was slow to begin with but picked-up well afterwards. She was able to earn a profit of 20% of the revenue in the first month. (i) Identify the promotional tool used by Sara to communicate to the customers about her tiffin service.
(ii) State any three roles of the promotional tool identified in
(i) above in marketing of goods and services. 
Answer: (i) Advertising (ii) Role of advertising in marketing :
(a) It helps to create demand by informing the prospective customers about the product.
(b) It provides economies of scale as increased demand leads to higher production.
(c) It educates consumers by informing about the availability of different products in the market.
(d) It generates employment by creating various kinds of jobs to artists, script writers etc.
(e) It improves standard of living by giving information regarding new products and increasing income levels of people.
(f) It sustains the media by acting as a source of revenue.

Question. Identify the method of sales promotion in the following cases :
(i) A mobile company offers a discount of ₹ 1000 to clear off excess inventory.
(ii) A customer gets ₹ 5 off on return of an empty wrapper while making a new purchase of the same product.
(iii) A company offers a pack of ½ kg of sugar with the purchase of a 5 kg bag of wheat flour.
(iv) A company offers 40% of extra ice cream in a pack of 500 gms.
(v) Scratch a card and get a gold coin with the purchase of a cold drink.
(vi) Purchase goods worth ₹ 50,000 and get a holiday package worth ₹10,000 free. 
Answer:
(i) Rebate
(ii) Refund
(iii) Product combination
(iv) Quantity gift
(v) Instant draws and assigned gifts
(vi) Usable Benefits.

Question. “Every time I travelled, people asked me to bring them chips, khakra and pickles from all over the country,” says Anoushka. Finally, she and her colleague, Sumeet, decided to make a business out of it. They launched a facebook page, asked people what they wanted, and they came up with a list of about 100 places and tied up with two dozen vendors to begin with. They were servicing people from Jaipur who wanted spices from Kerala, people from Panipat who wanted halwa from Jammu and people from Delhi who ordered for fresh tea leaves from Darjeeling. Through their business they wished to bridge the gap between sellers and buyers. The business is now worth millions. Explain any two important activities that Anoushka and Sumeet will have to be involved in for making the goods available to the customers at the right place, in the right quantity and at the right time.
Answer: Activities/Components of a Physical Distribution:
(i) Order Processing : A good physical distribution system should provide for an accurate and speedy processing of orders, in the absence of which goods would reach the customers late or in the wrong quantity or specifications.
(ii) Transportation : It is the means of carrying the goods and raw materials from the point of production to the point of sale. It is important because unless the goods are physically made available, the sale cannot be completed.
(iii) Warehousing : It refers to the act of storing and assorting products in order to create time utility in them.
(iv) Inventory Control : Higher the level of inventory, higher will be the level of service to customers but the cost of carrying the inventory will also be high because lot of capital would be tied up in the stock. Thus, a balance is to be maintained in respect of the cost and customer satisfaction.

NCERT Solutions for Class 12 Business Studies Chapter 11 Marketing Long Answer Type Questions

Question. After acquiring the necessary knowledge and skills on starting an Aloevera Farm, Ashok wanted to be the leading manufacturer of Aloevera products worldwide. He observed that the products were expensive as the demand of the products was more than the supply. He was also keen to promote methods and practices that were economically viable, environmentally sound and at the same time protecting public health. Ashok’s main consideration was about the amount of money paid by the consumers in consideration of the purchase of Aloevera products. He also thought that competitors prices and their
anticipated reactions must also be considered for this. After gathering and analysing information and doing correct marketing planning, he came to know that the consumers compare the value of a product to the value of money which they are required to pay. The consumers will be ready to buy a product when they perceived that the value of the product is at least equal to the value of money which they would pay. Since he was entering into a new market, he felt that he may not be able to cover all costs. He knew that in the long run, the business will not be able to survive unless all costs are covered in addition to a minimum profit. He examined the quality and features of the products of the competitors and the anticipated reactions of the consumers. Considering the same, he decided to add some unique features to the packaging and also decided to provide free home delivery of the products. The above case relates to a concept which is considered to be an effective competitive marketing weapon. In conditions of perfect competition, most of the firms compete with each other on this concept in the marketing of goods and services.
(i) Identify the concept.
(ii) Explain briefly any four factors discussed in the above case related to the concept so identified.
Answer: (i) The concept of Marketing used above is 'PRICE MIX'.
(ii) Four factors affecting price determination are :
(a) Production cost : The price should recover all costs viz. fixed costs, variable costs and semi variable costs apart from obviously including a fair return for undertaking the marketing effort and risk.
(b) Utility and demand : While determining the price of any product, the utility provided by it and the intensity of demand should not be ignored. If buyer is satisfied that the given product meets his/her requirement, he would also be ready to pay the cost and reasonable margin to the producer.
(c) Extent of competition in the market : In case of monopoly, a firm can enjoy complete freedom in fixing prices. However, if it is facing competition, it should consider the prices charged by the competitors also.
(d) Marketing methods used : Pricing of products also gets affects by the elements of marketing such as amount spent on advertisement, type of packaging, discounting policies, credit or finance facilities, etc.

Question. Describe the role of public relations in sales promotion. 
OR
Describe the role of ‘Public Relations’ in the promotion of products and services. 
OR
Explain the role of public relations in marketing management.
Answer: Role of Public Relations :
(i) Building corporate image : To build image or goodwill, companies can contribute money and time to social problems. For example, upkeep of parks in the city or sponsoring sports will promote their products.
(ii) Smooth functioning of the business : Co-operation of public is essential for any company to achieve its objectives and smooth functioning. Therefore, companies involved in public relations have to satisfy different public groups so that no obstacles are imposed on the smooth functioning of business.
(iii) Supplement to advertising : As a supplement to advertising, public relations are usually undertaken by marketing managers to spread awareness and knowledge about new and established products. Its cost is less than media advertising as there is no need to pay for media space and time.
(iv) Launching a new product : An effective public relations programme conveys information about the new products of company to customers before they are launched. Before launching the new brand, a good publicity increases the demand of it during the advertised period.
(v) Building interests in the established products : To attract and motivate the customers to buy the products, an effective public relation campaign is essential. Public relation professionals collect information about public opinion for product and company from various media channels. It helps the company to chalk out its actions which are relevant to the public.

Question. What is meant by ‘Packaging’? State any four functions of packaging.
Answer: Packaging refers to the act of designing and producing the container or wrapper of a product. Functions of packaging :
(i) It helps in the product identification.
(ii) It helps in the protection of the product from spoilage, breakage, leakage, damage, etc.
(iii) It facilitates the use of the product to the consumers through appropriate sizes and shapes.
(iv) It helps in the promotion of the product as a good package attracts the attention of the people at the time of purchase.
(v) It helps in preventing adulteration as the product is properly packed.

Question. State any five characteristics of a good Brand Name.
OR
What is meant by ‘Brand Name’? State any four characteristics of a good ‘Brand Name’?
Answer: Brand Name : It refers to a special word, symbol, letter or the mixture of all these. A good brand name should contain the following characteristics :
(i) Simple and Short : A brand name should be simple and short so that there is no complication related to its name.
(ii) Easily Pronounceable : A brand name should be easily pronounceable e.g., TATA, GLUCOSE, etc.
(iii) Suggestive : Brand name should be self- explanatory thereby, suggesting the inherent quality of the product. For example, HAJMOLA indicates the curing of indigestive system. (iv) Distinctive : Brand name should be so distinctive that it highlights itself in the group of other brand names. Such as Tide, Rin, Surf Excel, etc.
(v) Stability : The brand name should have a stable life, its life should not be affected by the changes in fashion or style. Phillips, Bournvita, Saridon, Surf, and HMT are some of the examples in this regard.
(vi) Registration : The brand name should be capable of being registered. This will protect the brand holder from imitation by the rivals.

Question. State any five functions of Labelling.
OR
What is meant by ‘Labelling’? State any four functions of labelling. 
Answer: Labelling : A tag indicating some information about the quality or price on complex graphics that are part of the package. Labelling performs various functions. Its important functions are :
(i) Describes the product and Specifies its contents : Label describes the product, its usage, cautions in its use, and specifies its contents etc., e.g., a popular brand of Prickly Heat Powder, describes how the product provides relief from prickly heat and controls bacterial growth and infection. Label describes the product, its usage, caution in its use and specifies its contents etc.
(ii) Product or Brand Identification : The label identifies the product or the brand. For example, the name stamped on a cold drink identifies it as Pepsi, Coke, Thumbs Up, Fanta, etc.
(iii) Grading of products : The label might also grade the product into different categories, where the differentiation tends to be marginal.
(iv) Providing information required by the Law: It is a carrier of information, which is to be provided to the customer. The label describes the product, the manufacturer, date of manufacture, its contents, directions for use, price, etc.
(v) Product Promotion : A carefully designed label can facilitate product promotion. It attracts attention, describes the product and gives the reason to purchase.
Particularly in case of fast moving consumer goods sector (FMCGs), label has become a patent tool of sales promotion.

Question. ‘Hayaram’ is a famous chain selling a large variety of products in the Indian market. Their products include chips, biscuits, sweets and squashes. It charges a comparatively higher price than its competitors as it sells quality products. Besides, it offers regular discounts to its customers and easy credit terms to its retailers. It has five of its own retail shops. It also sells its products through various grocery stores so that the products are made available to the customers at the right place, in the right quantity and at the right time. It regularly uses different communication tools to increase its sales. The above paragraph describes the combination of variables used by Hayaram to prepare its market offering. Identify and explain the variables.
Answer: The variables that are discussed in the question are as follows :
(i) Product : Product refers to anything of value that is offered in the market for sale. Product mix deals with all decisions related to product such as decisions related to features, quality, size, brand, packaging and labelling of the product. The concept of product also includes the extended product or what is offered to the customers by way of after-sales services, handling complaints, availability of spare parts, etc. “Their products include chips, biscuits, sweets and squashes”.
(ii) Price : Price is the amount of money, which the customers have to pay to the seller, in lieu of the product or service provided. Price mix refers to important decision relating to the price charged for a product, service or idea like objectives of price setting, factors, discount policy, credit terms, etc. “It charges a comparatively higher price than its competitors…”.
OR
“It offers regular discounts to its customers and easy credit terms to its retailers.”
(iii) Place/Physical Distribution : Place or physical distribution mix includes activities that are involved in transferring the ownership to customers and to make the product available at the right place at the right time. It involves decision regarding modes of transportation, channels of distribution and inventory maintenance. “It has five of its own retail shops”.OR “It also sells its products through various grocery stores”
(iv) Promotion : This element deals with informing and persuading the customers regarding the products. Promotion mix refers to the decisions relating to persuading customers to buy the product. Advertising, personal selling, sales promotion and public relation are different tools of promotion. “It regularly uses different communication tools to increase its sales.”

Question. Distinguish between ‘Advertising’ and ‘Personal Selling’ on the basis of any five points.
Answer: Difference between ‘Advertising’ and ‘Personal Selling’

Question. Shyam bought a pain relieving ointment after seeing it being displayed in the chemist’s shop. The ointment tube was packed in a cardboard box. Identify the different levels of packaging of the pain relieving medicine, when it was purchased by Shyam. Also state the functions of packaging.
Answer: Different levels of packaging of the pain relieving medicine are : Ointment tube : Primary packaging Cardboard box : Secondary packaging (If an examinee has not specified ‘ointment tube’ as the primary package and ‘cardboard box’ as the secondary package ½ mark per identification may be deducted) Functions of packaging :
(i) It helps in product identification.
(ii) It helps in protection of the product from spoilage, breakage, leakage damage etc.
(iii) It facilitates use of the product to the consumers through appropriate sizes and shapes.
(iv) It helps in promotion of the product as a good package attracts the attention of the people at the time of purchase.

Question. Explain ‘Market Planning’ and ‘Product Designing and Development’ as functions of Marketing. 
Answer: Market Planning : After collecting and analysing the market information, the next function of marketing is to develop appropriate marketing plans so that marketing objectives can be achieved. It involves making plans for increasing the production level, plans for promotion of products, etc. It also specifies the action programmes that are needed to achieve these objectives. Product Designing and Development : A product can be successfully marketed only when it satisfies the desires and needs of the consumers. The next function of marketing is the product designing and development. It involves taking decisions regarding features, design, shape, size, appearance, etc. of the product. Design of a product makes the product more attractive and provides a competitive advantage in the market. For example Swift car is very popular due to its unique design.

Question. There are number of factors which affect the fixation of the price of a product. Explain any four such factors.OR Pricing of a product is an important and effective competitive weapon in marketing which depends upon various factors. Explain any three such factors.
OR
Explain any four factors which affect the determination of price of a product.
OR
‘Price occupies an important place in marketing of goods and its determination is affected by many factors.’ Explain any four such factors.
Answer: Price is an element of marketing mix which refers to all important decisions relating to the fixation of the price of a product. Some factors that must be taken into consideration are :
(i) Production cost : The price should recover all costs viz. fixed costs, variable costs and semi- variable costs apart from obviously including a fair return for undertaking the marketing effort and risk.
(ii) Utility and demand : While determining the price of any product, the utility provided by it and the intensity of demand should not be ignored. If a buyer is satisfied that the given product meets his/her requirement, he would also be ready to pay the cost and reasonable margin to the producer.
(iii) Extent of competition in the market : In case of monopoly, a firm can enjoy complete freedom in fixing prices. However, if it is facing competition, it should consider the prices charged by the competitors also. (iv) Government and legal regulations : Government plays an important role in regulating the prices. For example, Life Saving Drugs, etc.
(v) Pricing objectives : Pricing objectives should be in accordance with the company objectives. Also, company’s objectives should be clear enough. In addition to profit maximisation, pricing objectives may include (a) Obtaining market share leadership
(b) Surviving in a competitive market.
(vi) Marketing methods used : Pricing of products also gets affected by the elements of marketing such as amount spent on advertisement, type of packaging, discounting policies, credit or finance facilities etc.

Question. It is necessary that goods and services must be made available to the customers at the right place, in the right quantity and at right time. (i) Name and explain the concerned element of Marketing Mix given above.
(ii) Explain the components of this element.
Answer: (i) Place/Physical Distribution : The physical handling and movement of goods from the place of production to the place of distribution is referred to as physical distribution. (ii) Components of physical distribution are :
(a) Order processing : Products flow from the producers to the customers, while orders for products flow in reverse direction i.e., from the customers to the producers. It is necessary that the products ordered by customers must reach them in time, in right quantity and as per specifications which is ensured by effective physical distribution.
(b) Transportation : Products reaches to the consumers scattered all around through transportation. It makes goods available in the market, without which goods cannot be sold. (c) Warehousing : There is a time lag between production and sales of goods. Warehousing helps in stabilising prices by checking fluctuations. It also facilitates regular and even supply of products throughout the country and throughout the year.
(d) Inventory control : High level of inventory leads to high cost because more capital, and stock, is tied up in the business. Hence, an optimum level of inventory needs to be maintained through a good inventory control system.

Question. ‘Though advertising is one of the most frequently used medium of promotion of goods and services, yet it attracts lot of objections. ‘Explain any four such objections. 
Answer: Though advertising is one of the most frequently used medium of promotion of goods and services, yet it attracts lot of objections which are :
(i) Adds to Cost : Advertising unnecessarily adds to the cost of the product, which is ultimately passed on to the buyers in the form of high prices.
(ii) Undermines Social Values : Advertising under-mines social values and promotes materialism and discontent among the people.
(iii) Confuses the Buyer : There are so many products being advertised that the buyer gets confused as to which one should he buy.
(iv) Encourages Sale of Inferior Products : Advertising does not distinguish between superior and inferior products and persuade people to purchase even the inferior products.
(v) Some advertisements are not appropriate : Another criticism against advertising is that some advertisements show something which is not approved by some people like women dancing when not required.

Question. Explain the four important elements of marketing mix.
OR
The elements of marketing mix are popularly known as four points of marketing. Explain briefly these elements of marketing mix.
Answer: The four important elements of marketing mix are :
(i) Product mix,
(ii) Price mix,
(iii) Place mix and
(iv) Promotion mix.
(i) Product Mix : Product mix is related to the decisions regarding planning, developing and producing the right type of products and services for the consumers. It includes branding, labelling, trademark and packaging.
(ii) Price mix : Price mix involves different pricing methods, pricing strategies, pricing policies and price changes.
(iii) Place mix : Place or Physical Distribution mix includes activities that make firm’s products available to the targeted customers. It consists of all the activities involved in transferring ownership and physical possession of the product to the consumers.
(iv) Promotion mix : Promotion mix consists of all the activities aimed at persuading customers to buy the product through advertising, personal selling, sales promotion and publicity.

Question. State any five functions of marketing from the management point of view.
Answer: Marketing functions include a series of specialised activities performed for the marketing of goods and services.
(i) Marketing research/Gathering and analysing market information : Marketing research is the systematic investigation of the facts relevant to the various aspects in marketing. Marketing research helps managers to arrive at an appropriate decision. Market information should be gathered and analysed appropriately.
(ii) Market Planning : This is concerned with the development of appropriate marketing plans to achieve the marketing objectives of an organisation. This includes making a comprehensive action programme covering all the important aspects of the plan.
(iii) Product Designing and Development : Another important marketing activity is related to the product designing and development in such a way so as to attract the targeted customers. The product design should be such, which improves the performance of a product or gives it a competitive edge over its competitors.
(iv) Standardisation and Grading : Standardisation refers to determining the basic measure/standard of the product with regard to shape, size, colour
181quality, quantity, etc. Grading is the process of classification of the product into different groups, on the basis of some parameters like quality, quantity, size, etc.
(v) Packaging and Labelling : Packaging is the act of designing and packing the product for customers. A package is a wrapper or a container in which a product is enclosed. Packaging reduces the risk of spoilage, breakage, etc. in the process of storage and transportation of goods. Labelling means designing and developing a label to be put on the package.
(vi) Branding : It is the process of stamping a product with some identifying name or mark or a combination of both.
(vii) Customer support services : Services such as after sales services, maintenance services, technical services, handling customer complaints are included in this function.
(viii) Storage and Warehousing : Storage is the process of holding and preserving goods between the time of their purchase/production and the time of their sale. The storage function is facilitated by warehouses.
(ix) Transportation : Transportation refers to the physical movement of goods from the place of production to the place of consumption. By carrying the goods to such places where they are needed, creates place utility.
(x) Promotion : Promotion refers to all such activities of the manufacturer, like advertising, personal selling, sales promotion and publicity, which are intended to influence buyer’s behaviour.
(xi) Pricing : Pricing is the process of fixing the price of a product or service. Prices are generally fixed by manufacturers carefully after looking into three factors, i.e., the cost of production, the demand for the product and the nature of competition.

Question. What is meant by Personal selling? Explain any five qualities of a good salesman.
Answer: Personal Selling : It is a process where face-to-face interaction takes place between the buyer and the seller for the purpose of making sale. The qualities of a good salesman are as follows :
(i) Physical qualities : A good sales person should possess an attractive personality i.e. he must be good looking with sound health, energy and stamina.
(ii) Mental/Psychological qualities : A good salesman should be polite, good natured and well behaved, tactful, sharp memory and intelligence.
(iii) Communication skills : A good salesman should be a good communicator i.e. he must have the ability to clearly express and convince the customers to buy the intended product.
(iv) Technical qualities : A good sales person should have a sound technical knowledge about the product he/she is selling. He should be able to express the features, qualities, benefits of the product, etc.
(v) Honest : A good sales person should be honest, ambitious and should possess a sound character. He/she must be sincere in performing his/her duty and should be loyal towards business.
(vi) Courtesy : A good sales person should be courteous which will help business in building reputation. He should be so polite with his words so that he/she can convince customers.
(vii) Capable to inspire trust : A good sales person should have the capability, confidence to build trust among customers by understanding their needs.
(viii) Persistent : A good sales person should be persistent enthusiastic, disciplined and ambitious. He/She should give the best to convince the customers.

Question. ‘Various tools of communication are used by the marketers to promote their produces.’ Answer the following questions :
(i) Why do companies use all the tools at the same time?
(ii) Name and explain the most commonly used non-personal tool of promotion which is paid for by the marketer. (iii) Which tool of promotion will primarily be used for the following :
(a) To promote or protect a company’s image or its individual products.
(b) An existing product meant for the mass usage by the literate people.
(c) To introduce a new product to a particular class of people through door-to-door visits. 
Answer:
(i) Companies use all tools at the same time because of the nature of market, nature of the product, promotion budget and objectives of promotion being different at different times.
(ii) The most commonly used non-personal tool of promotion which is paid for by the marketer is advertising. It contains following features :
(a) It is paid form of promotion tool by an identified sponsor to promote an idea or goods.
(b) It is a non-personal form of communication. Many persons can be communicated or informed at one time.
(iii) The tools of promotion are :
(a) Public Relation
(b) Advertisement
(c) Personal selling.

Question. Personal selling is a powerful tool for a business organisation. Do you agree? Explain any three reasons is support of your answer. 
OR
Describe any three points of importance of personal selling each to Businessmen and Society.
Answer: Yes, we agree that ‘Personal selling is a powerful tool for a business organisation.’
Importance to Businessmen : Personal selling is important for a businessmen because of the following reasons :
(i) Effective promotional tool : Personal selling is an effective promotional tool as it increases the possibility of sales by influencing the consumer about the qualities, features and merits of a product.
(ii) Consumer’s attention : In personal selling, it is easy to achieve consumer’s attention as there is a direct contact with the customers, which helps a sales person in successfully completing the sale.
(iii) Link with customers : In personal selling, sales person helps to link business with its customers by performing three different roles : persuasive role, service role and informative role.
Importance to the society : The benefits of personal selling to the society are as follows :
(i) Converts the latent demand : Personal selling helps in converting the latent demand into an effective demand. Effective demand raises the production, which results in more jobs, more incomes and more products and services. In this way, personal selling brings economic growth.
(ii) Career opportunities : Personal selling provides attractive opportunities for the career advancement and job satisfaction. It also provides security, respect and independence to the young generation.
(iii) Product standardisation : Personal selling encourages product standardisation and brings uniformity in consumption pattern in a diverse society.

Question. Shivam bought a pain relieving ointment after seeing it being displayed in the chemist’s shop. The ointment tube was packed in a cardboard box. The tubes were received by the chemist from the wholesaler in corrugated boxes containing 20 units. Identify and explain the different levels of packaging of the pain relieving medicine.
Answer: Levels of packaging :
(i) Primary Packaging
(a) The ointment tube is the primary package which refers to the product’s immediate container.
(b) It is kept till the consumer is ready to use the product or it may be kept throughout the entire life of the product.
(ii) Secondary Packaging
(a) The Cardboard box is the secondary package which refers to the additional layers of protection.
(b) When the consumer starts using the product, the secondary packing is disposed of.
(iii) Transportation Packaging
(a) The Corrugated box is the Transportation Package which refers to the package necessary for storage, identification or transportation.

Question. Identify and explain the promotional tools of marketing mix which is an impersonal form of communication and is paid for by the marketer.
Also explain any three benefits of this tool. 
Answer: Advertising refers to any paid form of non-personal presentation and promotion of goods and services of an identified sponsor.
Advertising is the most commonly used tool of promotion. Advertisement provides information or details regarding benefits, price and availability of the goods and services. The basic purpose is to increase the demand and sale of goods and services.
Some common modes of advertising are :
(i) Newspapers
(ii) Television
(iii) Magazines
(iv) Radio
Benefits of advertising are as follows :
(i) Mass Reach : Advertising reaches the masses, i.e., it can reach a large number of people at a particular point of time. For example : Advertisement on newspaper or T.V. reaches lakhs of people.
(ii) Enhancing customer satisfaction and confidence :
A publically advertised product gets authenticity as there is always a proof for it. Buyers feel more comfortable to buy a widely advertised product.
Advertising creates confidence amongst buyers about the product quality and hence they feel more satisfied.
(iii) Expressiveness : With the use of latest techniques, graphics and multimedia, modern advertising has become one of the most forceful medium of communication. The special effects are created to make products and message more expressive, appealing and attractive.

Question. What is meant by ‘Advertising’? State the role of advertising in marketing.
Answer: Meaning of Advertising : Advertising is the paid form of non-personal communication about a service/product by an identified sponsor. Role of Advertising in marketing 
(i) Advertising helps to create demand by informing the prospective customers about the product.
(ii) It provides economies of scale as increased demand leads to higher production.
(iii) It educates consumers by informing about the availability of different products in the market.
(iv) It generates employment by creating various kinds of jobs to artists, script writers, etc.
(v) It improves standard of living by giving information regarding new products and increases income level of people.
(vi) It sustains the media by acting as a source of revenue.

Question. What is meant by ‘Sales Promotion’? Explain any five sales promotion techniques with an example of each.
Answer: Sales promotion refers to the short-term incentives, other than advertising and personal selling which are designed to encourage the buyers to make immediate purchase of a product or service. The commonly used sales promotion techniques are :
(i) Rebate : Offering products at special prices, to clear off excess inventory is known as rebate.
(ii) Discounts : These are like price promotions in which certain percentage of the price is reduced by some percentage as discount from the listed price. For example, discounts of up to 50% by Koutons.
(iii) Refunds : In this case, the seller offers to refund a part of the price paid by the customer on the production of some proof of purchase. For example, refund of ₹ 5 on the presentation of an empty pack of Maggie noodles.
(iv) Product Combinations : The customer is given another product as a free gift alongwith the purchase of certain goods. For example, gift of microwave oven with the purchase of Burner Hob by Sunflame or a gift of Trolley with the purchase of Inverter by Luminous.
(v) Quantity Gifts : Sometimes sellers devise special package, which gives extra quantity of the product to the buyer at lesser price or at no price. For example, buy two soaps and get one free by LUX.
(vi) Instant draws and assigned gifts : Some gifts are given on the basis of draws or some events. For example, scratch a card and win a gold locket on the purchase of a TV.
(vii) Lucky draw : Some coupons bearing distinct numbers are issued on the purchase of some products. Later, draws are taken and winner is awarded some gifts.
(viii) Usable benefits : Gifts are given to the users of the product. For example, purchase goods worth ₹ 3,000 and get a holiday package worth ₹ 2,000 free.
(ix) Finance scheme : Easy finance scheme is provided to the customer by the marketer at 0% interest rate. It is generally given on durable goods like electronics, automobiles, etc. For example, 24 easy installments.
(x) Sampling : Free samples of a product are offered to the customer. For example, a sachet of detergent powder to potential customers at the time of the launch of a new brand. (xi) Contests : Competitive events involving application of skills or luck are held. For example, solving a quiz or answering some questions. 

Question. Explain the role of advertising in marketing management.
Answer: Advertising has become an important tool of modern marketing mix. In the present competitive world, advertising plays a very crucial role in the following manner.
(i) Promotion of Sales : Advertising promotes the sales of goods and services by informing and persuading the buyers to buy them. A good advertising campaign helps in winning customers and generating revenues.
(ii) Introduction of a New Product : It helps in introduction of the new products. A business enterprise can introduce itself and its product to prospective buyers. Advertising enables quick publicity in the market.
(iii) Support to Production System : Advertising facilitates large scale production. The business firm knows that it will be able to sell on a large scale with the help of advertising. Mass production will reduce the per unit cost of production giving benefits of economies of sale to the firm.
(iv) Support to other Promotion Tools : Advertising helps salesmen in their effort to persuade people to buy the product. It removes doubts and encourages consumers to buy the product. It is used to obtain support of dealers and boost sales efforts. It reaches even to those people to whom salesman can’t reach.
(v) Builds up a Public Image : It builds up the reputation of the company, creates brand loyalty. Advertising enables a business firm to communicate its achievement and its efforts to satisfy the need of the public.
(vi) Helps to Combat Intense Market Competition: Advertising helps in maintaining demand and creating potential demand for established products, by attracting a new group of customers thus its helps fighting competition and extending the market territories for the established product.