UNIT-XI
MARKETING MANAGEMENT
Q1. Give two example of shopping products.
Ans. a) Clothes
b) Shoes
Q2. From producer to retailer to consumer identify the type of channel of distribution.
Ans. One Level channel.
Q4. Which channel will you recommend for distribution of perishable goods?
Ans. zero Level or One Level Channel.
Q5. Name any two print medias of advertising.
Ans. Magazines, Newspapers.
Q6. Name the concept of marketing which pays attention to the Social, Ethical and ecological aspects of marketing along with consumer satisfaction.
Ans. Societal concept of marketing
Q7 How does labeling act as a silent Salesman?
Ans La belling act as a silent salesman because it helps in promotion of products by attracting the attention of customers and providing required information.
Q8 Name the non paid and non personal form of promotional tool.
Ans. Publicity.
Q9 Advertising encourages sale of inferior and dubious products and ‘Advertising confuses rather than help’s . Do you agree? Give reasons.
Or
‘Advertising costs are passed on to the consumers in the form of higher prices” and ‘ Some advertisements are in bad taste’. Do you agree? Give reasons in support of your answer.
Ans.no,explain the arguments in favor and against of advertising.
Conclusion: in the era of globalization advertising is considered as an important tool of marketing.it helps in increasing sales and thereby reducing cost.it is not a social waste rather boosts production and employment.
Q10 . As a publisher, you have published a new book on marketing management. How will you determine the price of this book?
Ans. Hint- For following factors are to be discussed before fixing price of the book.
a) cost of Production.
b) Demand of the book.
c) Price of other competitive books.
d) Purchasing power of the customer.
e) Gout regulation etc.
Q11. You have invented a new device to detect impurities in petrol. Which two advertising media would you use and why?
Ans. Two methods of advertising that I would adopt are
2) Newspaper and
3) Direct selling at the point of purchase of petrol i.e at petrol pump.
Reasons for opting for direct selling at petrol pumps are –
1) this method is suitable for introducing new product.
2) It will each directly to the targeted consumer group.
3) The working of the new device can be demonstrated to the consumers at the site itself.
Q12. “Introducing a scheme of 50% + 40% less by the koutons” is the example of which sales promotion technique?
Ans: The name of this sales promotion scheme is ‘Discount”.
Q13. Name the Sales promotion technique in which ‘Scratch Cards’ are used?
Ans. It is “Instant draw and assigned gift”.
Q14. ‘Automobiles Ltd. Offered to sell their new bike at about Rs4000 less than the usual price’ is an example of sales promotion. Name the technique and explain two other techniques with examples.
Ans: Hints: The name of this technique is ‘Rebate’. Under it. , in order to clear the excess stock products are offered at reduced prices. Explain two other techniques such as full finance @0% and samples.
Chapter–X
Marketing Management
1 Marks Questions.
Q1. Main Focus of Production concept of Marketing is :—
Ans. Quantity of Product.
Q2. Marketing Mix consist of
Ans. Product, Prize, Place and promotion.
Q3. Modern Marketing Concept Consist of…….
Ans. Satisfaction of customers.
Q4. Who is a Marketer ?
Ans. Seller.
Q5. Explain the concept of ‘Market’.
Ans. It refers to a place where the buyers and sellers meet each other for sale and Purchase of the commodity. Focus of term market is on the meeting of buyer and seller and also on commodity but not on the place. They can conduct business by telephone, mail or internet.
Q6. What do you under stand by convenience goods ?
Ans. Convenience goods are those goods which are most commonly and frequent by purchased by the consumers with least amount of efforts e.q. slat, sugar, soap, tea, Rice, etc.
Q7. What do you understand by shopping goods ?
Ans. When buyers devote considerable time to compare Price, Quality, durability and style in a number of stores before purchasing.
Q8. What is generic name ?
Ans. The term generice refers to the name of the whole class of the product.
Q9. What kind of ‘Market offer’ is judge good ?
Ans. A good market offer is one which is developed after analyzing the needs and preferences of the potential buyers.
Q10. Some product have certain unique Features. They after significant groups of buyers. Identify the kind of Product.
Ans. Such Product are known as ‘Speciality Products’.
Q11. It is impersonal form of advertising and the manufacturer does not have control over such means of communication. Name such promotional tool.
Ans. Publicity.
Q12. What is derived demand ?
Ans. The demand for a raw material varies indirect proportion to the demand for final products. e.g. the demand for leather will be dependent on the demand for the final products like shoes, purses, jackets etc.
Q13. Why is Packaging is called a silent salesman ?
Ans. Packaging is called a silent salesman because attractive packing en courages people to buy a Product just like a salesman.
Q14. Name the Product which can be used again and again.
Ans. Durable product.
Q15. Name the function which inform the consumer about the product.
OR
It refers to the use of communication with the twin objective of informing Potetial customers about a Product and persuading them to buy it. Name it.
Ans. Promotion.
3, 4, & 5 Mark Questions
Q. 1 How can marketing help a firm to build its goodwill in the market ?
Q. 2 What role does marketing play in the success of a firm ?
Q. 3 What is Price Mix ? Explain briefly the factors to which the marketers should pay attention before fixing the price of the Product ?
Q. 4 Suppose you are the manager in charge or advertising of an organisation manufacturing toys, which media would you recommend for advertising your product and why ?
Q. 5 The manager or impact Enterprises dealing in cosmetics is facing the problem of poor sales ? Suggest and explain promotional measured that he can undertake to improve the sales (Any Four).
Q. 6 Briefly explain any four objectives of marketing management.
Q. 7 Explain the features of a good brand name.
Q. 8 What do you mean by Packaging ? Explain its four functions.
Q. 9 What do you mean by Physical distribution ? Explain its components.
Q. 10 Enumerate any six functions of marketing.
Q. 11 Difference between marketing and selling.
Q. 12 What do you mean by Labeling ? Explain its four functions.
Q. 13 What do you mean by Personal selling ? Explain the role of personal selling.
6 Mark Questions
Q. 1 What do you mean by Marketing Mix ? Explain its elements.
Q. 2 “Advertising misleads customers and increase the Cost of Product”. Do you agree with this statement ? Give reasons in supports of your answer.
Q. 3 Briefly explain the factors that determine the choice of channels of distribution of any product.
Q. 4 Difference between advertising and personal selling.
Q. 5 Explain any six factors that should be taken into consideration while taking decisions on a particular Medium of advertisement.
Q. 6 What do you mean by Product Mix ? Explain its componets.
Q. 7 What do you mean by sales Promotion? Explain its Techniques/Methods/Tools.
Answer- 3, 4, & 5 Marks
Ans. 1 Marketing is consumer oriented, it helps a firm to build goodwill in the market over period of time. By selling quality goods at reasonable price, the firm tries to earn its name in the market. Only useful goods and services and
produced and sold. Basically marketing aims to building the reputation of firm through various image-building activity i.e, advertising, reasonable price, better quality etc.
Ans. 2 1. Role of marketing in a firm : It help in identifying and analyzing the needs of customers and design the prodcing accordingly.
2. Role of Marketing is an economy : People are inspired to set up enterprises for producing goods to fulfill the needs of the customers due to marketing.
Ans. 3 1. Meaning : Pricing refers to the process of fixing the price of a product or service.
The term ‘Price’. refers to the exchange value of a product expressed in money. factors considered before fixing price are.
I Pricing objectives.
If a firm is operating in the competitive market and wants to introduce a
more efficient substitute by a competitor, it may charge lower price for it. To attain product quality leadership, a firm normally charges higher prices to cover high quality and high cost of Research and Development (R & D).
Thus, the price of a firm’s products and services is affected by the pricing objective of the firm.
2. Product cost : The second important factor to take care of while fixing the price is the product cost. Costs set the lower limits of the price. It is important that the price should recover total costs in the long run including a fair return for undertaking the marketing efforts and risk.
Two important types of costs need to be differentiated : fixed costs (e.g., rent of the premises, salaries of the permanent staff) and variable costs (e.g., cost of raw materials, direct labour costs, etc.)
The price must be able to recover the total cost in the long run. But sometimes in the short run, a product may be priced below the cost level in order to meet competitive challenges like making the entry of the rival difficult or out cutting the competitor.
3. Extent of competition in the market : Competition is another important consideration while pricing a product. When a firm does not face any competition, it can enjoy complete freedom in fixing its price. But when there are competitors selling the same or similar products, the pricing freedom of the firm is considerably reduced. It price must fall in line with the competitors.
For example, Maruti’s Zen now faces a lot of competition from brands like Santro, Indica and Palio. Therefore, its pricing cannot be approached in isolation without considering the prices of other cars.
4. The utility and demand : The utility provided by the product an consumer’s demand set the upper limit of price, which he is willing to pa.
According to the law of demand, consumers buy more units of product at a lower price that at a higher price.
Ans. 4 I would recommed T.V. advertising because of reasons.
1. Like by children : Children like to watch their programmes like cartoon, Phulwari Bachhon ki etc.
2. Catch quick attention : T.V. advertising will catch quick attention of the viewing children and leave a lasting impact on them
3. It combing right, sound and motion effects.
4. Its cover the wide range.
Ans. 5 The following tools for sales promotion
1. Free samples : Free samples of the small size of the cosmetics products can be distributed.
2. Discount Compons : Discount compons can be issued to the prospective buyers.
3. Special Display : Special display allowances can be provided to the retailers for making an display counter.
4. Packaged Premium : Packaging premium can be allowed for example 100 g. tube extra 20%.
Ans. 6 The following are the objectives of marketing management :—
1. Creation of demand : Main objectives of marketing is to create demand through various means. Before making the production it is necessary to find out the needs of customers that what customers want them produce goods according to the needs of customers.
2. Capturing market share : marketing is to capture a reasonable share of the market various promotional methods are used to make the goods popular.
3. Creation of Goodwill : Marketing aims to build good will of the product and firm is the market over a period of time by selling quality products at reasonable price, the firm’s tries to earn its name in the market
4. Consumer satisfaction : Marketing concept to find o the needs of customers and make the production of goods according to the needs of customers. They also provide after sales service.
Ans. 7 1. Short and simple : Brand name should be short and simple long and complex word should be avoided because they are difficult to read and remember.
2. Suggestive : Brand name should be suggestive because they can convey the product quality or benefits. e.g. Hajmola suggests digestive.
3. Meaning of brand name : Brand name should be selected after considering its meaning in other languages and cultures. Some words are perfect in one country but have be inappropriate in other country e.g,. In India Ambassador car (Nora) French meaning who cannot run.
4. Easy to Pronounce : Brand name should be easy pronounceable.
5. Brand name should be adoptable to packing and labeling.
Ans. 8 Meaning : It is a set of task or activities, which is concerns with the design and production of an appropriate container for the product.
Followings are the function of packaging
1. Protection : It protects the product from damage which it may suffer on the way to the market. Appropriate packaging save the product from sun, moisture, breakage etc.
2. Identification : With the help of packaging, product can be easily identified. from the unique battle or coke one can easily identify it from other.
3. Convenience : Packaging the convenience both for middleman and consumer.
4. Promotion : Packaging play an important role of silent salesman. Throng packaging good should be attractive and it induce consumers to make a purchase.
5. Innovation : BY developing innovative package the marketer can capture new customer segment.
Ans. 9 Meaning : Physical distribution involves physical handling and movement of goods from place of production to the place of consumption.
1. Transportation : It is concerned with the physical handling and movement of goods from place of production to the place of consumption.
2. Inventory : Inventories need to be main tained because they ensure product availability as and when customers demand arise.
3. Warehousing : Production of goods continue through off the year but goods are not consumed immediately. therefore every company needs to store finished goods until they are sold in the market.
4. Order Processing : The order cycle involves steps like order placement to the salesperson, order entry in the company system, customer credit check, inventory and production scheduling. There is a direct connection between the processed and the customer satisfaction level.
Ans. 10 1. Marketing research : Marketing research is the systematic investigation of the fast election to various aspects in the market. It s helps to manager in decision making.
2. Market planning : To achieve the marketing objectives of the organisation, appropriate marketing objectives of the organisation, appropriate marketing plans covering various important aspects shoveled be developed.
3. Buying and assembling : Buying the raw materials of purchase the finished goods for the purpose of sales. Assembly means collection of particular types of goods bought from different places under common roof.
4. Packaging & Labelling : Packaging is the act of designing and producing the package for a product. Labelling means putting identification marks on the package.
5. Branding : It is the process of stamping a product with some identifying name or mark.
6. Customer support services : Services as after sales servtices maintenance services technical services & handling complaint are developers.
Ans. 12. A label identifies the product or brand. It helps to provide identification and some information to the customers.
Functions of Labelling
1. Helps in identifying the product or brand : The label helps the customers to identify the product from the various types available. For example, we can easily identify a Cadbury chocolate from the various chocolates kept in the shelf of a shop by the colour of its label.
2. Helps in grading the products into different categories : With the help of lable, products can be graded in different categories. For example, Brook Bond Red Lable, Brook Bond Yellow Label, Green Label, etc.
3. Carrier of information : The manufacturer cannot communicate to each and every customer personally. So, if he wants to communicate and each and every customer personally. So, if he wants to communicate and share some information about the product with the customer, it is done through labels. The manufacturer prints all the information related to product such as the contents, price, instructions to use, etc. For example, pack of Maggie Noodles describe the
procedure of cooking noodles.
4. Legal requirement : Labelling performs the function of providing information required by law. Examples : The statutory warning on the package of cigarette, “Smoking is injurious to Health”.
In case of hazardous or poisonous material, appropriate safety warning needs to be put on the label.
Ans. 13 Meaning :— It involves face to face interaction between the sellar and the prospective buyers sales person as certain customers needs, identifies right product, communicates product features benefits and help him buy the product.
I. Importance to Businessman
1. Consumer attention : When seller does the talking, the buyer cannot be totally aloof to what is being communicated. the buyer has to listen and pay attention.
2. Lasting relationship : Personal selling allows a salesperson to develop personal relationships with the prospective customers, which may personal relationships with the prospective customers, which may become important in making sales
3. Role in introduction stage : Personal selling plays very important role in the introduction stage of a new product as it helps in persuading customers about the merits of the product.
II. Importance of Customers : The role of personal selling becomes more important for the illiterate the rural customers who do not have many other means of getting product information.
1. Helps in improving standards of living of customers by inducing them to purchase new products that satisfy their needs in a better way.
2. Consumer get latest market information : regarding price changes, product availability and new product introduction, which help them in taking the purchase decisions in a better way.
3. Helps the customers in identifying their need and wants and in knowing how these can best be satisfied.
4. Customers get expert advice in purchasing various goods and services.
III. Importance of Society
1. Converts latent demand into effective demand, leading to more products and services and hence economic growth of the nation.
2. Employment opportunities : Personal selling provides attractive career with greater opportunities to the unemployed youth.
3. Career opportunities : Personal selling provides attractive career with greater opportunities for advancement and job satisfaction as well as security, respect and independence to young men and women.
4. Mobility of sales people : There is a greater degree of mobility in sales people, which promotes travel and tourism in the country.
5. Product standardization : Personal selling increase product standardization and uniformity in consumption pattern in advisers society.
6 Marks
Ans. 1 Marketing refers to the tools or the variables which the marketer mixes in order to interact with a particular market.
“Marketing mix is the set of marketing tools that the firm uses to pursue its marketing objective is the target market”. Kotfer. Product Mix : When a firm becomes amulti-product company, the total number of products and items it offers to the market is called product mix or product assortment. Product mix of ITC consists of product lines like hotels (Welcome group), cigarettes (Wills, India Kings), readymade garments (Will Sport) and grocery line (Aashirvaad).
Components of Product Mix are :
Branding
Packaging
Labelling
Price mix : Price is the value which a buyer passes on to the seller in lieu of the product or service provided. The marketing manager should determine the price in such a way that the firm is able to sell its products successfully.
Main factors that must be taken into consideration while fixing theprice are :
Company objectives
Costs
Competition
Customer demand
Promotion mix : It deals with informing the customers about the firm’s product and persuading them to purchase the same.
Elements or components of promotion mix are :
Personal selling
Advertising
Publicity
Sales promotion.
Place mix/Physical distribution mix : The two major decision areas under
this function include
(i) decision regarding channels of distribution or the marketing intermediaries (like wholesalers, retailers) to be used and
(ii) Physical movement of the product from the producer to consumers.
It also involves decisions regarding storage and transportation, managing inventory (levels of stock of goods), etc.
Ans.2 Yes I agree with this statement
1. Its encourage to customers to buy the product when they do not really need.
2. It destroys old models of goods.
3. Increase the cost of product
4. It confuse the customers.
5. Some advertisement is not suitable for children and women.
Ans. 3 I market related factors
(i) Size of Market : If the buyers are in small number short channels are used. But if the number of buyers of large, as in the case of most convenient products like soft drink, toothpaste, etc. longer channels involving large number of intermediaries are used.
(ii) Geographical concentration of potential buyers : When buyers are concentrated in a limited geographic area like industrial customers, direct selling could be used.
Serving geographically spread customers requires use of more middlemen.
(iii) Size of order, i.e., quantity purchased : if the size of the order is small, as in the case of most consumer products, large number of intermediaries may be used. But if the size of order is large, direct channels may be used.
Product Related Factors
(i) The unit value of the product : When the goods to be distributed are costly (like gold jewellery, industrial machine, etc.), shorter channels are recommended, whereas for less costly, inexpensive products, longer channel could be used.
(ii) Product complexity : Technically, complex products require expert advice and counseling at the point of sale. Therefore, direct or short channels are more appropriate.
(iii) Nature of product : Industrial products are usually technical, made to order and expensive products purchased by few customers. These products require short channels, i.e., direct channel or involving few middlemen.
One the other hand, consumer products are usually standardized, less expensive, less bulky, not technical and frequently bought products. These can be better distributed by long network of channels, involving many middlemen.
(iv) Perishable vs non-perishable products : Perishable products like fruits, vegetables and dairy products are best sold through short channels. While non-perishable products like toiletry products (e.g., soap, toothpaste, hair oil, etc.), groceries (vegetable oil, tea, leaf, etc.), fabrics require longer channels to reach wide spread consumers.
Company Related Factors
(i) Financial strength of the company : A firm which has deep pockets and enjoys considerable financial strength can evolve its own channels. But the financially weak firms would have to bank upon existing middlemen for their services.
(ii) Degree of control : If the management wants to have greater control on the channel members, short channels are used. But if the management does not want more control over the middlemen it can go in for longer channel or large number of intermediaries.
(iii) Management : If the management of a firm has sufficient knowledge and experience of distribution, it may prefer direct selling.
(iv) Competitive factory : Before taking decision regarding choice or channels a company should observe the channel selected by competitors in the same industry. A company many decide to choose the same or not.
(v) Environmental factors : Economic condition and legal factors also affect the choice of channels. Shorter channels with be used in case of depressed economy.
Ans. 5 Following factors influence choice of medium of advertisement. The success of an advertisement depends upon the media used. Therefore, due care should be taken in selecting the media of advertising. While choosing an
appropriate advertising media, following factors should be kept in view :
(i) Selectivity : This refers to the ability of a medium to reach a particular audience. Illiterate and poor people can be approached through radio, films and television. Newspaper, magazines, outdoor displays and direct mail may be used to convey the message to the educated.
(ii) Coverage : This refers to the size of audience the medium can reach. Advertising in local market can be done profitably through local newspapers, films and outdoor displays. Newspapers, magazines and direct mail are more appropriate media for advertising in national and international markets.
(iii) Flexibility : It refers to the speed and ease with which an advertisement can be placed in a medium, changed or deleted. For example, it is very difficult to change an advertisement given on TV. But it is easier to do so on posters newspapers, etc.
(iv) Cost :It refers to the payment or charges for buying a certain amount of time or space. Therefore, amount of funds available for advertising and the cost of the media are important considerations.
(v) Editorial environment : It refers to the nature of information or entertainment material that surrounds the advertisement. Consumer products such a as toothpaste, cold drinks, soaps, etc. should be advertised through newspapers, radio films and outdoor displays. On the other hand, industrial goods like raw materials, tools, machinery, etc. can be advertised better in technical and professional magazines.
(vi) Performance : This refers to the durability of the medium.
(vii) Objectives of advertising : When the objective is to introduce a new product or to fight competition, a combination of various media may be used.
(viii) Media used by competitors : The media used by competitors also influences the choice of the advertising media.
(ix) Type of message : Small advertisements can be given economically in radio, TV. etc. But for large advertisements, newspapers, magazines and films are more appropriate.
Ans. 6 Product mixed deals with decision concerning veracity quality features, packaging, size, brand, guarant racing services to be offered in respect or the first product. comments of product mix.
1. Branding : “Branding” can be defined as the process of using a name, sign, symbol or design to a product. Branding isnot only done to identify the seller or the maker, but also to create a distinct identity of the product from that of competitors.
Examples :
• Some of the common brands are Bata, Lifebouy and Parker..
• Asian paints, Safola and Uncle Chips are the brand names.
• Gattu of Asian paints, Devil of Onida, etc., are some examples of brand marks.
• , and are trade marks of Mercedes, Nike and Pepsi, respectively.
2. Packaging : Packaging refers to the act of designing and producing the container or wrapper of a product.
The physical product that we usually buy comes in packaged form.
• Soaps comes in paper boxes or plastic wrappers.
• Biscuits come carton, papers or plain paper packaging.
• Refrigerators or televisions come in hard wood and board cartons.
• Expensive perfumes and liquor come in boxes and designer bottles.
Packaging plays an important role in determining customer attitude towards the product. Sometimes by looking at the packaging the customer. tries to assess the product quality. Good packaging often help in selling the product. Packing is, therefore, sometimes called a silent salesman.
3. Labelling : A label is carrier of information which is to be provided to the customers, which describes the product, its contents, the manufacturer,date and time of manufacture, etc.
The label is to put on the package.
Q. 7. Meaning : Sales promotion refers to short term inventions which are designed to encourage the buyers to make immediate purchase of a product or service tools.
Ans. (i) Rebates : Offering products at special prices to clear off excess inventory.
(ii) Dis Counts : Certain percentage of price is rented as discount from the 1st price.
(iii) Refunds : Refunding a part of prize pend by customer on producing some proof of purchase.
Example : A toothpaste manufacturer may offer to refund Rs 5 on sending the empty cover of the pack.
(iv) Product combinations : Offering another product as gift along with the purchase of a product. as gift along with the purchase of a product.
Example :
• Shakti Bhog Atta’s offer of a pack of rice with a bag of atta.
• Get 64 MB memory card free with a Nokia cell phone.
• 100 gm bottle of sauce free with 1 Kg detergent.
(v) Quantity gift : Offering extra quantity of the product.
Example :
• ‘Buy three get one free’ offer currently available for soaps like Nirma and Lux No. 1.
• ’50 grams extra’ free offe rof Fena or 555 detergent bar.
• Dettol shaving cream’s offe rof ‘40% Extra’.
• ‘Buy 2 get 1 free offer of Peter England on shirts.
(vi) Sampling : It means giving free sample of product to the customer.
These are done to make customers try the product and learn about it.
Example : HLL did extensive sampling of their Surf Excel when the brand was initially launched.
(vii) Contests : Consumers are required to participate in some competitive events involving application of skills or luck and winners are given some reward.
Example : Harvest Gold, maker of ‘premium Bread’ usually have children drawing competitions.
(viii) Lucky draw : For example, lucky draw coupon on puchase of easy undergarment and win a car offer.
(ix) Packed premium :In this type of sales promotion, marketers pack some gifts inside the product package. The gifts create a lure to buy the product.
(x) Usable benefit : For example, ‘Purchase goods worth Rs 3,000 and get a holiday package worth Rs. 1,000 free’.
(xi) Container premium : This category of sales promotions is also very popular with the marketers of products like milk additives, jams, now even detergents and soaps. In these schemes, the marketer devises special containers for packaging the product which could be used by the customer for some use.
Ques 1: Name one of the first companies in the world to actively study the influence of consumer products on the environment.
Ans: Procter and Gamble.
Ques 2: Give two examples of convenience product.
Ans: (i) Bread (ii) Ice cream.
Ques 3: Name two shopping products.
Ans: (i) Car (ii) Furniture (iii) Garments.
Ques 4: Name two techniques of sales promotion.
Ans: (i) Discount (ii) Premiums.
Ques 5: What factor changes want into demand?
Ans: Money or purchasing power and willingness to spend the money.
Ques 6: Which goods last long and contribute directly to the making or developing of finished goods?
Ans: Capital Goods.
Ques 7: Name the elements which are popularly known as 3 p’s if marketing.
Ans: Physical Evidence, People, Process.
Ques 8: Which goods are of unique character and buyer identifies with them?
Ans: Speciality goods.
Ques 9: Give some innovative ideas of getting information about the trends/demand pattern in market.
Ans: Market Survey, Market Research, On-line Research, Feedback.
Ques 10: Sony Ltd. Introduced a television set with new features in the market at a high price but when the same features used by other electronic companies in their television sets then the prices of Sony Ltd’s television sets was reduced by the company. Mention the name of strategy the company is following. Also explain the strategy in short.
Ans: The name of strategy is Price Skimming.
Under this strategy a high price is charged for an innovative product and later on the price is reduced when more marketers enter the market with same type of product.
Ques 11: Distinguish between Selling and Marketing on the basis of following points: (i) Focus (ii) Objective (iii) Supremacy.
Ans: (i) Focus- Selling focuses on the need of seller whereas marketing focuses on the need of consumer.
(ii) Objective- The main objective of selling is to maximize the profit and sale whereas the main objective of marketing is earning optimum profit with customer satisfaction.
(iii) Supremacy- In selling, producer is considered the kingpin of market whereas in marketing, consumer is considered the kingpin of the market.
Ques 12: Explain any three functions of ‘packaging’.
Ans: (i) Product Identification,
(ii) Product Protection,
(iii) Product Promotion.
Ques 13: ‘Expenditure on advertising is a social waste.’ Do you agree? Discuss.
Ans: This statement is only partially correct. The opponents of advertising say that the expenditure on advertising is a social waste as it adds to the cost, multiplies the needs of people and undermines the social values.
Ques 14: Name and explain the concept which concentrates on the need of the customers.
Ans: Marketing concept.
Ques 15: ‘Blindly following the goal of customer satisfaction had led to many social and environmental ills.’ Do you agree ? What should be done?
Ans: Despite of superiority of marketing concept, it faced criticism from the people who are concerned about society and environment. They argue that companies should not blindly follow the goal of customer satisfaction. This may lead to many social and environmental ills. For example a customer may want to have drugs so just to satisfy customer the firms should not supply him drugs. Some products bring harmful effects on environment so these should not be supplied.
Ques 16: ‘Product is a bundle of utilities.’ Do you agree? Comment.
Ans: Yes, product is a bundle of utilities. A product is purchased because of its capability to provide satisfaction of certain needs. A buyer buys a product or service for what it dies for her or the benefit it provides to her. There can be three types of benefits a customer may seek to satisfy from the purchase of a product, viz., (i) Functional Benefits, (ii) Psychological Benefits and (iii) Social Benefits.
Ques 17: How does branding help in creating product differentiation? Discuss.
Ans: The process of giving a name or a sign or symbol, etc. to a product is called branding. It helps a firm in distinguishing its product from that of its competitors. This enables a firm to secure and control the market for its products. Thus, branding enables marking product differentiation.
Ques 18: List the promotional messages given on the package of any three consumer products of your choice and comment how can these promotional messages help in the sale of these products.
Ans: Promotional messages given on the package helps in promotion of the product. These messages give reason to purchase the product. Some promotional messages are-
(i) Amla Hair Oil states, baalon mein dum, life mein fun.
(ii) Detergent powder says, Keep cloth look good and your machine in top condition.
(iii) Tomato Ketchup mentions, 20% Extra Free.
