GSEB Class 12 Organization of Commerce and Management Solutions Chapter 10 Marketing Management

1. Select the correct alternative and write answer to the following questions:

 

Question 1. What is market mix in marketing management?
(a) Product, production, physical distribution and price
(b) Product, transportation, market and customer
(c) Product, competitors, government and others
(d) Product, price, promotion and physical distribution.
Answer: (d) Product, price, promotion and physical distribution.
In simple words: The marketing mix comprises four key elements: product, price, promotion, and physical distribution. These elements are combined strategically to create a successful marketing plan.

Exam Tip: Remember the 4 Ps of marketing mix: Product, Price, Place (physical distribution), and Promotion. Understanding each P is crucial for effective marketing strategy.

 

Question 2. In marketing management, is at the centre.
(a) Product
(b) Production
(c) Customer
(d) Profit
Answer: (c) Customer
In simple words: All marketing efforts and strategies revolve around understanding and satisfying the customer's needs and desires.

Exam Tip: A customer-centric approach is fundamental in modern marketing, ensuring that all decisions prioritize consumer satisfaction.

 

Question 3. What is the main objective of branding?
(a) Making the product more durable
(b) Manufacturing the product according to law
(c) Advertising the product
(d) Differentiating company's product from the competitors
Answer: (d) Differentiating company's product from the competitors
In simple words: The primary goal of branding is to distinguish a company's offerings from those of its rivals, making them recognizable and unique in the market.

Exam Tip: Effective branding builds unique identity and value perception, which helps products stand out in a competitive market.

 

Question 4. When the manufacturer sells the product directly to the customer, what can be said about the levels in distribution channel?
(a) One
(b) Two
(c) Three
(d) Zero
Answer: (d) Zero
In simple words: When a product goes straight from the manufacturer to the customer without any intermediaries, there are no levels in the distribution channel.

Exam Tip: Direct selling eliminates intermediaries, resulting in a zero-level distribution channel, which can lead to cost savings and closer customer relationships.

 

Question 5. What is to be done by promotion?
(a) Increasing the price
(b) Increasing the sales
(c) Increasing the production
(d) Making necessary changes in the product
Answer: (b) Increasing the sales
In simple words: Promotion refers to all activities undertaken to communicate and persuade customers to purchase a product, ultimately leading to higher sales.

Exam Tip: Promotion strategies are designed to stimulate demand and drive purchasing behavior among target consumers.

 

Question 6. Which of the following is the function of a salesman in personal selling?
(a) Presentation of product before the potential customer
(b) Packing the product
(c) Personal use of the product
(d) Appointing new salesman
Answer: (a) Presentation of product before the potential customer
In simple words: A salesman's primary role in personal selling is to effectively showcase and explain the product to potential buyers, aiming to generate interest and secure a sale.

Exam Tip: Personal selling involves direct interaction with customers, making product presentation and communication skills essential for a salesman.

 

Question 7. Because of promotion techniques
(a) The customer gets inspired to buy the product quickly
(b) The customer does not try to understand the product
(c) The middlemen stops selling the products to the customer
(d) The retailers stop purchasing goods from the middlemen
Answer: (a) The customer gets inspired to buy the product quickly
In simple words: Promotion strategies aim to motivate consumers and create a sense of urgency, inspiring them to purchase the product without delay.

Exam Tip: Effective promotion creates desire and can often accelerate the consumer's decision-making process to purchase a product.

 

Question 8. Which of the following is the function of a marketing manager?
(a) Making the goods consumable
(b) Storages of goods
(c) Market segmentation
(d) Sales
Answer: (a) Making the goods consumable
In simple words: A key function of a marketing manager is to ensure products are ready for use or consumption by customers, often through activities like processing and appropriate packaging.

Exam Tip: Marketing managers are involved in various activities that make products desirable and accessible for consumer use, including preparing them for consumption.

 

Question 9. What can happen because of excessive advertisement expenses?
(a) It raises price of the product
(b) The product becomes more attractive
(c) It improves quality of the product
(d) The product is available everywhere
Answer: (a) It raises price of the product
In simple words: When companies spend too much on advertising, these increased costs are often passed on to consumers, resulting in a higher selling price for the product.

Exam Tip: Advertising expenses are part of a product's overall cost structure, and substantial spending can directly impact its final retail price.

 

Question 10. In public relation, an effort is made to create a positive environment among all the parties involved with the business towards the company.
(a) This statement is true.
(b) This statement is true only for the middlemen and retailers.
(c) This statement is true only for the potential customers.
(d) This statement is false.
Answer: (a) This statement is true.
In simple words: Public relations aims to foster goodwill and a favorable perception of the company among all its stakeholders, which include employees, customers, investors, and the general public.

Exam Tip: Public relations is a broad function designed to manage a company's image and communication with its entire ecosystem, not just specific groups.

 

2. Answer the following questions in one sentence each:

 

Question 1. What is marketing management?
Answer: Marketing management is a business activity focused on directing products or services from their producer to the ultimate consumer.
In simple words: It is the process of planning and executing the flow of goods and services from the manufacturer to the customer.

Exam Tip: Define marketing management as the effective management of marketing resources and activities to achieve organizational objectives.

 

Question 2. Give meaning of market research.
Answer: Market research is a systematic approach to collecting and analyzing information about market scope, consumer preferences, and other relevant factors, to draw logical conclusions.
In simple words: It's the process of gathering and studying data about customers and the market to understand trends and make informed decisions.

Exam Tip: Highlight that market research helps businesses understand consumer behavior and market dynamics, reducing risks in decision-making.

 

Question 3. What is personal selling?
Answer: Personal selling is the process where a salesman directly presents a product to potential customers, resolves their inquiries, and ultimately convinces them to make a purchase.
In simple words: It involves direct interaction between a salesperson and a customer to showcase a product, answer questions, and complete a sale.

Exam Tip: Emphasize the direct, face-to-face (or one-on-one) communication aspect of personal selling and its goal of converting prospects into buyers.

 

Question 4. What is sales promotion?
Answer: Sales promotion, as defined by Kotler, encompasses short-term incentives created to encourage customers to purchase a product or service quickly.
In simple words: It's about using temporary offers or deals to boost immediate sales of a product or service.

Exam Tip: Remember that sales promotions are distinct from advertising in their short-term nature and direct inducement to purchase.

 

Question 5. What is promotion-mix?
Answer: The promotion mix is a combination of various communication tools used by a business to inform, persuade, and remind consumers about its products and services, ultimately encouraging them to purchase.
In simple words: It's all the ways a company talks to customers to make them aware of a product and want to buy it.

Exam Tip: The promotion mix typically includes advertising, personal selling, sales promotion, and public relations, all working together to achieve communication objectives.

 

Question 6. What is branding?
Answer: Branding is the process of establishing a unique identity for a product through a distinct name, logo, number, or label design, making it easily distinguishable from competitors' offerings and difficult to imitate.
In simple words: Branding involves creating a unique name, symbol, or design for a product to make it stand out and be recognized by customers.

Exam Tip: Branding helps build customer loyalty and perceived value, extending beyond just identification to emotional connection and reputation.

 

Question 7. Give meaning of 'publicity'.
Answer: Publicity is a form of non-personal communication about products, services, or ideas that appears in public media and is not directly paid for by the company, essentially free media exposure.
In simple words: It's when a product or company gets public attention through media coverage, usually without paying for the space or time.

Exam Tip: Unlike advertising, publicity is typically earned media, meaning the company doesn't control the message directly but gains credibility from third-party coverage.

 

3. Answer the following questions in short:

 

Question 1. List out the advantages of labeling.
Answer: Labeling provides several advantages:

• A label helps differentiate a product from those of competitors.
• It establishes a unique identity for the product.
• Once a label is recognized, consumers can easily identify the product.
• Labels help prevent consumer cheating by distinguishing genuine products from fakes.
• Proper labeling simplifies advertising for the company if the label is maintained consistently.
• Labeling also serves to assure product quality for consumers.

In simple words: Labels help products stand out, create a unique identity, make products recognizable, prevent fake items, assist with advertising, and signal product quality.

Exam Tip: When listing advantages, use clear, concise points. Think about how labeling benefits both the producer (differentiation, advertising) and the consumer (identification, quality assurance, fraud prevention).

 

Question 2. What is the need of 'storage of goods'?
Answer: The storage of goods is necessary due to several factors:

• Products are not always sold immediately after production.
• Goods are released into the market when demand arises, requiring storage to maintain balance between supply and demand for effective sales.
• Production is often based on future demand forecasts, making storage essential to hold products until needed.
• It is critical to ensure that the product's quality remains intact and does not degrade during the storage period.

In simple words: Goods need storage because they aren't sold right away, to match supply with future demand, and to keep their quality safe until they are ready for the market.

Exam Tip: Focus on the strategic reasons for storage: managing supply-demand gaps, supporting production based on forecasts, and maintaining product integrity.

 

Question 3. What is marketing-mix? What it includes?
Answer: The marketing mix is a fundamental model in marketing, defined as the "set of marketing tools that the firm uses to attain its marketing objectives." It involves various marketing decisions categorized into four core elements:

• Product
• Price
• Place
• Promotion

These four constituents are commonly known as the 4Ps (Product, Price, Place, and Promotion). The marketing mix provides a framework for a firm to establish policies and make strategic decisions for a successful product launch. Although external factors are largely uncontrollable, a business can significantly manage these 4Ps to attract and satisfy consumers effectively.
In simple words: The marketing mix is a set of tools a company uses to reach its goals, mainly focusing on four areas: the Product itself, its Price, the Place where it's sold, and how it's Promoted. These are known as the 4Ps and are crucial for attracting customers.

Exam Tip: Clearly define the marketing mix as the 4Ps (Product, Price, Place, Promotion) and explain how each element is strategically managed to meet marketing goals.

 

Question 4. State any two characteristics of branding.
Answer: Branding possesses the following characteristics:
1. Branding fosters consumer confidence in the consistent quality they anticipate from the specific brand.
2. Distinctive colors, patterns, or designs are used for labeling and creating a brand's visual identity, symbolizing the brand itself.
In simple words: Branding helps customers trust a product's consistent quality, and it uses special colors, patterns, or designs to create a unique symbol for the brand.

Exam Tip: When discussing branding characteristics, focus on its role in building trust, ensuring consistency, and creating visual differentiation for a product.

 

Question 5. State any two characteristics of a good salesman.
Answer: Characteristics of a good salesman include:
1. A salesman should be smart, engaging, and physically capable.
2. They should also be skilled in communication, intelligent, and efficient in their sales approach.
In simple words: A good salesman is clever, good at talking with people, fit, communicates well, is intelligent, and works effectively.

Exam Tip: Key traits of a good salesman revolve around personality (smart, interactive), physical well-being, and core selling skills (communication, intelligence, efficiency).

 

4. Answer the following questions in brief:

 

Question 1. Explain the difference between selling and marketing.
Answer: The primary differences between selling and marketing are detailed in the table below:

In simple words: Marketing starts by finding out what customers want and makes products to meet those needs, focusing on satisfaction. Selling is about getting rid of what's already made by transferring ownership for money.

Exam Tip: When distinguishing between selling and marketing, highlight marketing's broader, customer-oriented approach versus selling's narrower, transaction-focused perspective.

 

Question 2. Explain the role of public relation.
Answer: Public relations plays a vital role in the promotion mix through several functions:

• Publicity is often considered the most reliable component of the promotion mix.
• It is a highly cost-effective promotional tool as companies typically do not pay directly for media coverage.
• Public relations, including publicity, allows marketing managers to convey significant information with less effort.
• Mass communication efforts, combined with the credibility gained by the company, make public relations more impactful.
• Publicity effectively raises awareness among potential customers about the product or company, directly supporting sales initiatives for sellers and distributors.

In simple words: Public relations helps build trust and awareness for a company or product through credible, often free, media coverage, making it a powerful and cost-effective way to boost sales efforts.

Exam Tip: Differentiate between public relations (building overall image and relationships) and publicity (getting free media attention) within the broader promotion mix.

 

Question 3. Explain the selling concept in marketing management.
Answer: The selling concept in marketing management suggests that consumers will not buy enough of a firm's products unless significant selling and promotion efforts are undertaken. This leads companies to:

• Believe in aggressive production and active selling measures.
• Employ forceful marketing tactics, including extensive advertising and direct selling.
• Focus on creating demand for already produced goods, rather than tailoring production to market needs.
• Prioritize selling what the company makes over understanding and satisfying consumer requirements.
• Often disregard customer satisfaction, continuing to produce and push products into the market without careful consideration of demand.

In simple words: The selling concept believes customers won't buy much unless companies push hard to sell. It focuses on making and selling as much as possible, often without checking what customers really want, and uses strong promotion to move products.

Exam Tip: Contrast the selling concept (product-out, aggressive promotion) with the marketing concept (market-in, customer satisfaction) to highlight its key features.

 

Question 4. Mention the characteristics of a 'good salesman'.
Answer: A good salesman exhibits several key characteristics:

• They should be smart, engaging, and physically fit.
• Possess strong communication skills, intelligence, and efficiency.
• Crucially, they must be able to converse effectively with potential customers, present products clearly, and convince them to buy.
• A good salesman should have thorough knowledge about the product being sold.
• Honesty, integrity, sincerity, and punctuality are vital qualities.
• Representing the company, they must be polite and genuine to create a positive corporate image.
• Finally, an ideal salesman is enthusiastic, disciplined, and ambitious in their profession.

In simple words: A good salesman is smart, fit, and interactive; communicates well, knows the product, is honest, sincere, and represents the company positively with enthusiasm and discipline.

Exam Tip: When listing characteristics, think about a blend of personal attributes (honesty, enthusiasm), interpersonal skills (communication, interactive), and professional abilities (product knowledge, efficiency).

 

5. Answer the following questions in detail:

 

Question 1. Explain the functions of marketing.
Answer: Marketing encompasses a wide range of essential functions crucial for business success:
1. Marketing Research:

• The primary function involves systematically gathering information about market scope, consumer tastes, and preferences.
• For companies engaged in large-scale production, understanding consumer demand and pricing expectations is vital for minimizing risks.
• This research helps in collecting data related to market demand, pricing strategies, and competitor analysis.
• Common data collection methods include surveys (questionnaires), direct observation, and analysis of point-of-sale data.

2. Collection of Product:

• Products are often manufactured in diverse locations and require centralized collection.
• Due to scattered producers, seasonal production, or small-scale manufacturing, products need to be assembled.
• Collection ensures that products are at the correct location for further processing or distribution.

3. Transformation of Raw Material into Consumable Products:

• Many raw materials undergo further processing to become suitable for public consumption.
• This transformation ensures that the final product adheres to consumer requirements and quality standards.
• Examples include cleaning cereals and pulses before packaging, or implementing specific ripening methods for fruits prior to market release.

4. Standardization and Gradation:

• Standardization involves ensuring consistent quality, color, feel, size, and quantity across product batches.
• Gradation is the process of categorizing products based on their quality and characteristics, such as grading fruits into 'first quality' and 'second quality'.
• This practice allows producers to set different prices for different grades, maximizing revenue.
• Both standardization and gradation are crucial for building consumer trust and loyalty.
• In India, AGMARK handles grading for agricultural products, while the Bureau of Indian Standard (BIS) certifies industrial goods.

5. Labeling the Products:

• Labels play a key role in distinguishing a product from competitors' offerings.
• They help create a unique product identity, making it easily recognizable to consumers once the label becomes popular.
• Labels also act as a safeguard against consumer deception from fake products.
• A well-designed and consistent label simplifies product advertising.
• Ultimately, labeling helps assure and communicate product quality.

Brand and Branding:

• Producers often assign a name to their product, known as a brand name, or simply a brand. This name, logo, number, or design is typically displayed on the product's label.
• Branding creates an identifiable mark for the product in the market.

6. Price Determination:

• Producers must estimate all production-related costs, including manufacturing, packaging, insurance, distribution, advertising, taxes, duties, and discounts.
• After calculating these costs, a profit margin is added to arrive at the final sales price.
• The producer also considers market demand and competitor pricing when setting the price.
• Price determination often precedes packaging, as the price is usually printed on the product's pack.

7. Packing the Product:

• Packing is often referred to as the 'garment' of a product, serving both to protect it and to attract consumers.
• It provides protection and often includes essential details regarding the product's use.
• Various materials, such as paper, plastic jars, tinned boxes, and glass jars, are used depending on the product type.

Advantages of Packaging:

• Proper packaging protects goods from damage and facilitates easier transportation.
• It helps maintain product quality and features over time.
• Consumers can quickly ascertain the product's price from its packaging (e.g., a Rs. 10 wafer pack).

8. Storage of Products:

• Products are not always sold immediately after production, necessitating storage.
• Storage helps maintain a balance between demand and supply, crucial for optimal sales.
• Production often occurs based on future demand, creating an immediate need for storage.
• It is paramount to ensure that the product's quality does not degrade during the storage period.

9. Transport Service:

• Products are transported to the required locations according to market demand.
• Various modes of transport—roadways, railways, waterways, and airways—are employed to ensure a continuous supply of raw materials and timely delivery of finished products to consumers.

10. Insurance of the Product:

• Storing and transporting products involve numerous risks like theft, fire, damage, or loss due to riots.
• Producers and distributors frequently insure their goods against such risks.
• Modern businesses utilize various types of insurance, including fire insurance, property insurance, accident insurance, marine insurance, and riot insurance.

11. Financial Arrangement:

• Every marketing activity requires financial resources or working capital.
• Effective financial management is essential to meet these requirements.
• The financial manager determines the necessary funds and allocates them across various activities.
• For seasonal products, financial arrangements for advertisements are often made well in advance.

Marketing Manager's Main Duties under Marketing Process Include:

• Ensuring the availability of finance at the appropriate time.
• Organizing effective advertisement campaigns.
• Establishing efficient distribution channels.
• Developing and managing product branding.
• Conducting ongoing market research.

12. Advertisement:

• The advertising strategy for a product is influenced by its demand, available finances, product type, competitor's strategies, and media effectiveness.
• Advertisement plays a key role in creating demand, which subsequently increases sales.
• Local-level advertising campaigns often prove particularly effective in reaching target consumers.

13. Sales and Distribution System:

• Today's consumers seek products delivered quickly and economically, given the numerous available options.
• Producers often appoint regional distributors or central agencies to manage distribution efficiently, reducing the complexities of multi-level distribution.
• The sales and distribution network is customized according to the specific product type.
• For products with high and continuous demand, all available distribution methods are often used simultaneously.
• It is critical that products reach wholesalers and retailers on time; in some cases, producers also sell products directly at their production sites (e.g., processed jams and pickles).

In simple words: Marketing involves many steps: researching what customers want, gathering products from different places, making raw materials into finished goods, sorting and grading products, adding labels, setting prices, packaging products, storing them, transporting them, insuring them, and managing money. It also includes advertising and setting up sales networks to get products to customers efficiently.

Exam Tip: For detailed questions, structure your answer with clear headings and bullet points for each function. Ensure you briefly explain the 'what' and 'why' for each function of marketing.

 

Question 2. Explain the factors affecting the price of a product.
Answer: There are several key factors that influence the determination of a product's price. These include:
1. Production cost:
The cost of producing a good is the most crucial element in setting its price. This includes expenses for raw materials, labor, processing, administration, and sales and distribution. For new products, additional promotional and market entry costs also impact the final price, which can be seen as indirect production costs. A product's price can never be lower than its total production cost.
2. Demand for the product:
Product demand and price are directly related. Factors like consumer taste, preferences, purchasing power, the number of consumers, competitors, and the price of rival products all influence demand. Producers can charge a high price if demand is strong, but a low demand necessitates a competitive, lower price. If a competitor's product is popular or there are many competitors, a new product's price might need to be lowered. Conversely, in a less competitive market, a producer can maintain a higher price and achieve greater profit.
3. Competition in the market:
The level of market competition directly impacts product pricing. Producers typically set competitive prices when there are many competitors and high market rivalry. During intense competition, prices are often set to beat rivals, hinder new entrants, or even force competitors out of the market. However, a product with a strong brand reputation can command a higher price than competitors' products (e.g., iPhone).
4. Governmental and legal controls:
Governments often regulate prices for monopolistic and essential daily-use products to protect consumer interests. Products with fluctuating prices, such as petrol and diesel, also face legal controls. These governmental and legal factors must be considered during price determination.
5. Price determination on the basis of objectives:
Beyond the factors above, producers also consider specific objectives when setting prices. These can include:
(A) Maximum profit: Aiming for maximum profit, often when there's no market competition or significant investment in research and development.
(B) To acquire a dominant position in the market: Setting a very low price to attract many customers and gain market dominance.
(C) To sustain competition: Fixing prices lower than or on par with competitors when rivalry is high.
6. Economic condition:
The overall economic condition of the market plays a significant role in price setting. In a strong economy, prices can be set higher, while during a recession, product prices are typically reduced.
7. Buying behavior:
Consumer behavior greatly influences price determination. Factors like consumer habits, social and cultural structure, individual preferences, and financial condition affect attitudes towards a product. These elements can change how consumers respond to a product, making it crucial to consider them when setting prices.
In simple words: A product's price is set by considering what it costs to make, how many people want to buy it, what competitors are charging, government rules, the company's goals, the overall economy, and how customers typically buy things.

Exam Tip: When explaining factors affecting price, remember to link each factor directly to how it influences either a higher or lower price point to demonstrate a comprehensive understanding.

 

Question 3. Explain the sales-promotion techniques.
Answer: Various techniques are used to promote sales effectively. Some of these are:
1. Sale:
A sale involves offering a product at a lower price than its usual cost for a limited period. Businesses commonly use this technique to reduce excess stock or clear inventory.
2. Discount:
A discount is a reduction from the original price of a product. Discounts are often provided for items that may have slight defects, which helps to attract a larger customer base.
3. Advertisement coupon:
An advertisement coupon is a printed coupon found in newspapers or circulated through pamphlets. Customers receive a discount when they present this coupon to the seller. The goals are to track the effectiveness of promotions and provide incentives.
4. Gift:
Sometimes, a small gift is included with the main product (e.g., one free soap with three). Producers also offer more quantity of the product for the same price as a gift (e.g., 20% more detergent).
5. Additional gift:
Producers identify consumer needs and offer extra gifts, either related to the main product (e.g., a toothbrush with toothpaste) or unrelated (e.g., a toy in a snack pack), to entice customers.
6. Lucky draw:
In this method, customers receive a coupon or code. On a specific date, results are declared, and the customer whose number is selected wins a gift. For instance, a petroleum company might offer prize-winning coupons for purchases above a certain amount.
7. Facility of interest-free loans:
This technique allows consumers to purchase high-priced products without paying interest on the loan. It involves a small down-payment, with the remaining balance paid through interest-free monthly installments. This attracts customers who cannot afford the full price upfront.
8. Distributing samples:
Small samples of a product are given to potential customers so they can try it out before deciding to buy. Sellers distribute samples of various items like shampoo, soap, or food products in small sachets.
9. Organizing competitions:
During new product launches, companies organize competitions to promote their items. For example, a crayon company might hold a drawing competition for children, collecting customer information and offering the new product as a prize to the winner.
In simple words: Sales promotion involves many tricks to get people to buy things, like offering sales, discounts, free coupons, small gifts, extra items, lucky draws, interest-free payment plans, free samples, and fun competitions.

Exam Tip: When listing sales promotion techniques, provide a brief, clear example for each to illustrate its practical application, which enhances the completeness of your answer.

 

Question 4. Explain in detail the role of advertisement.
Answer: The role and functions of advertisement are extensive and contribute significantly to marketing success:
1. Creates demand:
Advertisements provide consumers with information about products, including their utility, features, and how they compare to others. This knowledge generates a desire to buy and use the product. Initially, people might try a product based on an advertisement, and if satisfied, they continue to demand it, thereby creating ongoing demand.
2. Benefit of large scale production:
Advertising can reach a vast number of consumers simultaneously, leading to a substantial increase in product demand. To meet this high demand, companies often undertake large-scale production, which in turn reduces production costs and boosts profitability. As a result, the returns from increased sales outweigh the cost of advertising.
3. Product awareness:
Advertisements are crucial for providing consumers with comprehensive information about a product, covering its utility, features, and usage instructions. If a product has multiple applications, advertising communicates these to potential customers. It also builds trust by sharing positive feedback and experiences from existing consumers, encouraging new customers to purchase. In essence, advertising serves as a powerful tool for building product awareness.
4. Helpful in employment generation:
Increased demand for products or services due to advertising leads to a rise in employment across various sectors, including production, logistics, and service and repair. Furthermore, the advertising industry itself generates numerous job opportunities for copywriters, advertising distributors, filmmakers, and artists.
5. Betterment of standard of living:
Advertisements introduce consumers to new and innovative products available in the market. Beyond fulfilling basic needs, these products help consumers achieve a more comfortable lifestyle, streamline their daily tasks, and generally improve their standard of living.
6. Maintenance of quantum of sales:
Consistent and repeated advertising creates a lasting impression and keeps products memorable for consumers. This continuous exposure makes consumers more likely to choose advertised products during purchase. A sustained advertising policy ensures steady sales, and frequently advertised products often outperform competitors in terms of sales volume.
In simple words: Advertising plays a big role by making people want products, which helps companies make more and earn more money. It also teaches customers about new products, creates jobs, makes life better, and keeps sales steady by reminding people about brands.

Exam Tip: When detailing the functions of advertising, ensure you cover both the benefits to the company (e.g., demand, profit) and the benefits to consumers/society (e.g., awareness, standard of living) for a balanced answer.