CBSE Class 12 Business Studies Marketing Management Worksheet Set B

Marketing management: It deals with planning, organizing and controlling the activities related to the marketing of goods and services to satisfy the consumer’s wants. Its aim to achieve the organizational goals at minimum cost by: -

1. Analysing and planning marketing activities

2. Impementing the marketing plans.3-Setting control mechanism.

Marketing management philosophy/Concept

(i) Product concept

(ii) Production concept

(iii) Selling concept

(iv) Marketing concept

(v) Social concept

Functions of marketing

1. Marketing research

2. Marketing planning

3. Product planning development

4. Packaging and labeling, Branding.

5. Customer support service

6. Storage and warehousing

7. Transportation

8. Promotion

9. Standardization and grading

10. Pricing Fixing

Marketing mix

Marketing mix includes all those activities, rules, procedures etc. which requires attaining success in the market. Elements of marketing mix:

1. Product Mix- Product mix includes all those decisions, Activities, procedures which are related to the product such as features, quality, packaging etc.

2. Price Mix– It includes all those factors which are considered while determining of the price of the product. 

3. Place Mix– It includes those activities which are related to movement of goods from the manufactures to the consumers and thus creates place utility.

4. Promotion Mix - Promotional techniques are used to create product awareness amongst the potential target customers and persuade them to purchase the product. Like- advertising, personal selling, publicity and sales promotion etc. Channels of distribution, Physical distribution, Cost and service trade off in Logistics.

Product Mix

Packaging- Refers to the act of designing and producing the container, box or a wrapper of a product.

Levels of Packaging –
1. Primary Packaging- It refers to the product’s immediate container. Like- toothpaste tube.
2. Secondary Packaging- It refers to the additional package, which provides additional layer protection to the product. Like- Cardboard box for toothpaste.
3. Transportation Packaging-it refers to further packing, which is necessary to protect the product in the process of transportation and storage.
Functions of packaging.-
1. Product identification
2. Product protection
3. Facilitating use of the product
4. Product promotion

Branding
Branding is the process of giving a name of or a sign or a symbol to a product. Such as Polo, LG etc.

Qualities of a good brand name-
1. Short- Brand name should be short so that anyone can remember, spell it.
2. Relevant to the functions- Name of the product should be relevant to the product’s functions and suggest the producer’s benefits and qualities.
3. Adaptable to packing of labeling- Brand name should be adaptable to packing of labeling requirement .

Advantages of branding:
a) Brand name helps in advertising in easier way
b) Brand name establishes the permanent identify of the product.
c) Brand name promotes repurchasing.
d) Competition becomes easier with the help of brand loyalty.

Price: It is the worth of a product or service in monetary terms. This money represents the sum of values that consumers exchange for the benefits of having or using the product of service.
Factors considered before fixing price are

a) Cost of product– It includes the total cost of producing, distributing and selling the product like- Fixed Cost, variable costs, Semi-variable cost.

b) Competition in the market- Competitors prices and their anticipated reaction must be considered before fixing the price of a product.

c) Utility and Demand of the product- The maximum price a buyer is willing to pay is the value of the utility of the product and minimum price a seller is willing to offer is the cost of the product.

d) Pricing Objectives-
1- Price Maximization, 2-Obtaining market shares, 3-Survivibg in a competitive market etc.
Place mix: It refers to a set of decisions that need to be taken in order to make the product available to the consumers for purchase and consumption.

Channels of distribution.—

a) Direct Channel (Zero level) – In this channel manufacturer sells his product directly to tne consumers without using any intermediary. Like-Bata, Amway etc.

b) Indirect Channel – When manufacturer involves one or more intermediary to sell or distribute their product to the customers. Indirect distribution network are-

1. One Level Channel – This channel of distribution involves one intermediary to transfer of goods from manufactures to the consumers.
Manufacturer -—————Retailer————Customer

2. Two Level Channel – This channel of distribution involves two intermediaries to transfer of goods from manufactures to the consumers.
Manufacturer -—Wholesaler———Retailer———————Customer

3. Three Level Channel – This channel of distribution involves three intermediaries to transfer of goods from manufactures to the consumers.
Manufacturer -—Agent——wholesaler ————Retailer——————Customer
Promotion mix: It is concerned with activities that are undertaken to communicate with both customers and participate in the channel of distribution such that sales goals
are realized.

Elements of Promotion Mix-
Advertising - 2-Personal Selling 3- Sales Promotion 3.Publicity
Advertising: It is defined as any paid form of non-personal presentation or promotion
of ideas, goods or services by an identified sponsor.
Merits:     1) Mass reach        2) Enhancing customer satisfaction
                3) Expressiveness  4) Economical

Limitations:    1) Less forceful      2) Lack of feed back
                       3) Inflexibility        4) Low effectiveness

Objections to advertisement
a) Adds to Costs: Advertising costs are passed on to the consumers in the form of high prices.
b) Some Advertisements are in bad taste.
c) Undermines social values.
d) Confuses the buyers.
e) Encourages the sale of inferior goods.

Personal selling: It involves face-to-face interaction between the seller and the prospective buyer.
Features:     1) Personal interaction   2) Two way communication
                    3) Better response        4) Relationship

Qualities of a good sales man:
i) Physical Qualities – personality , stamina, health, tolerance
ii) Mental Qualities – mental alertness, sharp memory, initiative, imagination and self confidence.
iii) Social Qualities – Sociality, tact, sound character, sweet nature.
iv) Vocational qualities – Knowledge of product, knowledge of competitive products, training and aptitude.

Sales promotion: It refers to short term use of incentives or other promotion activities that seek to stimulate interest.
a) Rebates   b) Refunds                     c) Discounts                d) Quantity deals
e) Contents  f) Packaged premium      g) Container premium h) Premium Gifts
h) Sampling  i) Free in mail premiums

Public relations- Public relations are the deliberate, planned and sustained effort to establish and maintain understanding between an organization and its public.

Role of public relations:
i) More credible.    ii ) Economical Medium
iii) Image building iv) Boosts the sales of the organization.

Various public relation tools to shape the public image if the organisation
a) News                         b) Speeches
c) Events                       d) Written Materials
e) Public service activities

Very Short answer Type Auestions

Question. “It is necessary that goods and services must be made available to the customer at the right place, in right quantity and at the right time’. Name the concerned element of marketing mix.
Answer: (a) The concerned element is Place mix.

Question. ‘Automobiles Ltd. Offered to sell their new bikes at about Rs.4, 000 less than the usual price’. This is an example of one of the techniques of sale promotion. Name the technique.
Answer: The given techniques of promotion mix are ‘Rebate’.

Question. “Money spent on advertisement is not a waste but an investment”. Do you agree with this view? Give reason in support of your answer.
Answer: Yes’ I agree with the given statement. Advertising is a medium through which a large number of people can be reached over a vast geographical area.

Question. A toy car free with ‘Maggi Noodles’ is an example of one of the techniques of sales promotion. Name the techniques
Answer: The given technique is ‘Product Combinations’.

Question. Which distribution channel should be used in case the buyers are widely dispersed?
Answer: Indirect Channels.

Question. Nisha, a school bag manufacturer decided to improve the product for profit maximization and thus added a water bottle holder to the existing design.
(i) Identify the marketing management philosophy adopted by Nisha; and (ii) Explain the philosophy on the basis of:
(a) Main focus and
(b) Means and End.
Answer: (i) Product Concept.
(ii) (a) Main focus of this concept is on product quality.
(b) Means: Through better quality ; Ends: Profit through product quality.

Question. Mansi, a shoemanufacturer for school students, decided tomaximize her profit by producing and distributing at large scale and 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 of this concept is on quantity of product.
(b) Means: Through availability and affordability of product; ends: Profit through mass production.

Question. Jasdeep, a dealer in school uniforms, decided to maximize his profit by using different aggressive promotional efforts.
(i) Identify the market management philosophy adopted by Jasdeep.
(ii) Explain this philosophy on the basis of:
(a) Main Focus;
(b) Means and Ends.
Answer: (i) Selling Concept.
(ii) (a) Main focus of this concept is on selling existing product.
(b) Means: Through selling and promotional efforts; Ends: Profit through sales volume.

Question. It is necessary that goods and services must be made available to the customers at the right place, in the right quantity and the right time. Name and explain the concerned element of marketing Mix given above.
Answer: Name - Place / physical Distribution- The physical handling and movements of goods from place of production to the place of distribution is referred to as physical distribution.

Question. ATV manufacturing company is spending substantial amount of money to persuade target customers to buy its T.V. sets through advertisements, personal selling and sales promotion techniques. Identify the element of marketing mix referred here.
Answer: Promotion / Promotion Mix.

Short Answer type Question

Question. What is difference between selling concept and marketing concept?
Answer: 

Question. What do you mean by marketing management?
Answer: Marketing management: It deals with planning, organizing and controlling the activities related to the marketing of goods and services to satisfy the consumer’s wants. Its aim to achieve the organizational goals at minimum cost by: -
1. Analysising and planning marketing activities.
2. Impementing the marketing plans.
3. Setting control mechanism.

Question. Which marketing concept take care of social, ethical and ecological aspect of marketing? Describe the concept.
Answer: Societal Marketing Concept- This concept states that a business organization must adopt marketing concept in such a manner that it fulfills the needs and wants of potential
customers.

Question. What do you mean by the Branding? Explain 3 qualities of a good brand name.
Answer: Branding is the process of giving a name of or a sign or a symbol to a product. Such as Polo, LG etc.
Qualities of a good brand name-
1. Short- Brand name should be short so that anyone can remember, spell it.
2. Relevant to the functions- Name of the product should be relevant to the product’s functions and suggest the producer’s benefits and qualities.
3. Adaptable to packing of labeling- Brand name should be adaptable to packing of labeling requirement.

Question. Elder Pharmaceuticals is a leading company engaged in manufacturing cough syrups. The company packs the syrup first in glass bottle and then in a cardboard box. As the syrup is demanded all over the world, 20 boxes of syrups are packed in corrugated boxes and distributed to various chemist and hospitals.
(i) Identify the three levels of packaging highlighted in the given case;
(ii) What is the basic purpose of packing the cardboard boxes in corrugated boxes?
Answer: (i) The three levels of packaging are:
(a) Primary Package (glass bottle);
(b) Secondary packaging (cardboard box);
(c) Transportation packaging (corrugated box)
(ii) The basic purpose is to protect the product in the process of transportation and storage.

Question. What is public relation? Explain its role.
Answer: Public relations are the deliberate, planned and sustained effort to establish and maintain understanding between an organization and its public.
Role of public relation:
i. Press relations- Public relation department is in contact with the media to present the organization’s picture in positive manner in press.
ii. Product publicity- Public relation department manages the sponsoring of sports and cultural events to create the publicity of the new product to be launched.

Long Answer Type Questions

Question. Explain the functions of marketing?
Answer: Marketing functions:
1. Marketing research- This refers to study of market so that customers needs, desires and preferences can be identifies and product can be design and developed as per their requirement.
2. Marketing planning-The marketing plan involves laying out specific strategies to increase market share, promotion program and increase production capacity to meet increased demand.
3. Product planning development- A good design improves the quality of the product and makes it attractive and competitive in the target market. Development of product as per requirement of customers.
4. Packaging and labeling- Packaging refers to designing the package for the products and labeling refers to designing the label to be put on the package. Both plays an important role in marketing the product.
5. Branding- Branding refers to giving a name, sign or symbols to the product. Brand name provides business an identity and distinguishes its product from that of its competitors.
6. Customer support services- These services related to handling customers after goods are sold them. Its main aim is to maintain good relationship with customers.
7. Storage and warehousing -For smooth flow and regular supply of goods business need to maintain appropriate stock level and thus require warehousing or storage facilities.
8. Transportation – Transportation facilitates movement of goods from the manufactures to the consumers and thus creates place utility.
9. Promotion - Promotional techniques are used to create product awareness amongst the potential target customers and persuade them to purchase the product. Like advertising,
personal selling, publicity and sales promotion etc.
10. Standardization and grading- Standardization refers to producing products with predetermined specifications and grading classified the product into different groups on the basis of size, quality etc.
11. Price Fixing – Price of the product affects the success or failure of a product in the market. Demand of the product is inversely related to its price. The marketers analyses all the factors, while setting prices.

Question. What do you mean by Packaging? Explain level and functions of packaging.
Answer: Packaging refers to the act of designing and producing the container, box or a wrapper of a product.
Levels of Packaging –
1. Primary Packaging- It refers to the product’s immediate container. Like- Toothpaste tube.
2. Secondary Packaging- It refers to the additional package, which provides additional layer protection to the product. Like- Cardboard box for toothpaste.
3. Transportation Packaging-it refers to further packing, which is necessary to protect the product in the process of transportation and storage.
Functions of packaging.-
1. Product identification – Packaging helps in identification of the product out of various products. It contains brand, features of the product etc.
2. Product protection – Packaging protects the products from spoilage, damage, leakage, pilferage, humidity etc.
3. Facilitating use of the product-The size and shape of the package should be convenient to open, handle and use for consumers.
4. Product promotion – Packaging acts as a good salesman as it promotes the product and increases its sale.

Question. What do you mean by the price? Explain factors affecting price determination.
Answer: Price: It is the worth of a product or service in monetary terms. This money represents the sum of values that consumers exchange for the benefits of having or using the product of service.
Factors considered before fixing price are
(i) Cost of the product:- Cost of the product is the main component of the price. No company can sell its product or service at less than the cost of the product. A Fixed and variable cost are to be considered for determining the price.
(ii) The utility and demand for the product: - Intensive study for the demand for product and service in the market is to be undertaken before the fixation of the price of the product. If demand is relatively more than supply, higher price can be fixed.
(iii) Extent of competition in the market:- It is necessary to take into consideration prices of the product of the competing firms prior to fixing the price. In case of cut throat competition it is desirable to keep price low.
(iv) Government & Legal Regulation:- If the price of the commodity and service is to be fixed as per the regulation of the govt., it should also be borne in mind.

Question. What do you mean by the place mix? Describe the factors affecting the channels of
distributions.
Answer: Place mix: It refers to a set of decisions that need to be taken in order to make the product available to the consumers for purchase and consumption.
Factors affecting the channels of distributions-
I Product related Factors-
(i) Industrial product or consumer product- for industrial product short or direct channel can be used as such product are technical and expensive. For consumer product long
channel are preferred as such products are standardized and less expensive
(ii) Perishability-perishable products like fruits, vegetable etc. are best sold through short channel II-Company related Factors
(i) Financial strength- a financially strong company may conveniently opt for direct channel.
(ii) Degree of control over distribution- when a firm want to exercise control over distribution, than short or direct channel can be preferred
III Market related Factors
(i) Size of market-if the size of marker is large with numerous customers it is economical to use more intermediaries.
(ii) Geographical concentration-if buyers are concentrated in a small geographic location, it is better to opt for direct channel.

Question. What do you mean by the advertising? Explain role of advertising.
Answer: Advertising: It is defined as any paid form of non-personal presentation or promotion of ideas, goods or services by an identified sponsor.
Role of advertising-
1. Mass reach- Advertising is a medium through which a large number of people can be reached over a vast geographical area.
2. Enhancing customer satisfaction and confidence- A publicly advertised product gets authenticity as there is always s proof for if. Buyers feel more comfortable to buy a widely advertised product.
3. Expressiveness- With use of latest technique, graphics and multimedia, modern advertising has become one of the most forceful medium of communication. It makes product and message more expressive.
4. Economy- Adertising is economical because of its mass reach. The total advertising cost is spread over a large number of people.

Question. Explain the objections of advertising.
Answer: Objections to advertisement-
1. Adds to Cost: Advertising costs are passed on to the consumers in the form of high prices. It increases the price of the product.
For –example-An advertisement on TV cost large amount of money.
2. Some Advertisements are in bad taste- Some advertisement make use of indecent language, photograph or convey bad message in order to attract customers. For example-
Women running after a person because he is using a particular perfume.
3. Undermines social values- an advertisement leads to discontent among people, it is often said that advertising undermines social values.
4. Confuses the buyers- With continuous increase in the number of advertisement, consumers are likely to get confused. Each brand claims to be better than the other. For example- advertisement of Surf, Tide, Ariel, Vanish etc. Each brand claims to be the best brand.
5. Encourages the sale of inferior goods- Advertising does not distinguish between superior and inferior products and often induces people to buy even the inferior product.

Question. What is the personal selling? Describe the qualities of a good salesman.
Answer: Personal selling: It involves face-to-face interaction between the seller and the prospective buyer. It involves oral presentation of message in the formof conversation with one or more prospective customers for the purpose of making sales.
Qualities of a good sales man:
a. Physical Qualities – A good salesman should possess healthy physique and attractive personality. Good appearance and posture, sound health, pleasing voice etc.
b. Mental Qualities – A good sales man should have a high degree of intelligence and imagination. He should understand the customers quickly and read his mind. Other
qualities-mental alertness, sharp memory, initiative, imagination and self confidence.
c. Social Qualities – A good sales man should have social qualities like Sociality, tact, sound character, sweet nature.
d. Vocational qualities – A good sales man should have vocational qualities like- Knowledge of product, knowledge of competitive products, training and aptitude.
e. Good communication skill- Agood sales man should possess a controlled voice and a good command over the language. He should be clear of what to be communicated.

Question. What do you mean by the sales promotion? Give sales promotion activities’.
Answer: Sales promotion: It refers to short term use of incentives or other promotion activities that seek to stimulate interest. Buyers are encouraged to make immediate purchase of a product of service. This incentives area.
Rebates -It refers to offering the product at a price less than the original price to clear off the excess inventory.
b) Refunds -. In this method, a part of the product price is refunded to the customer on showing proof of purchase.
c) Discounts - It refers to reduction of certain percentage from the price for a limited period. It is induce consumers to buy more. For example-50% off at shoppers stop.
d) Quantity deals - It offers some extra quantity of the main product as gift to the customers.
For example- Buy 3 get 1 free in case of soap.
e) Sampling- It involves offer of free sample of product to potential customers at the time of launch of a new product.
f) Full Finance- in this method, product is sold on installment basis at zero percent rate of interest.

Important Questions for NCERT Class 12 Business Studies Marketing Management

Question. ________ is compulsory for advertisement.
(a) Expenditure
(b) Effort
(c) Both the above
(d) Television

Answer :  C

Question. ________ starts after the production of things.
(a) Buying
(b) Selling
(c) Marketing
(d) Advertising

Answer :  B

Question. Promotion refers to :
(a) Use of various gadgets to move forward
(b) Use of communication to inform the potential customers about the product
(c) Customers use various tools to know about the product
(d) Any reward given to producers
Answer :  B

Question. Advertising similar products with same claim results in :
(a) creating confidence in customers
(b) making the customer materialistic
(c) creating confusion in the minds of the customers
(d) making the customer happy
Answer :  C

Question. Price of a product can be referred as:
I. Product Cost
II. Brand Value
III. Value of utility for customer
IV. Promotion Cost

Answer :  C

Question. Pricing objectives does not include:
I. Market Share Leadership
II. Surviving in a competitive
III. Cover the entire cost of a product
IV. To deliver goods to rural areas.

Answer :  D

Question. Which of the following plays an important role in introducing a new product to the consumers?
(a) Publicity
(b) Personal Selling
(c) Sale Promotion
(d) Advertisement

Answer :  B

Question. Which of the following can offer expert opinion to the consumers?
(a) Publicity
(b) Advertisement
(c) Sale Promotion
(d) Personal Selling

Answer :  D

Question. What type of relationship exists between degree of accuracy of sales forecasts and the level of inventory? 
(a) Indirect
(b) Direct
(c) Indifferent
(d) vary according to situation

Answer :  A

Question. Eureka Forbes uses its own sales force to reach its prospective customers. Which type of distribution channel is used by Eureka Forbes ? (Application)
(a) Zero-level
(b) One-Level
(c) two-level
(d) three-Level

Answer :  A

Question. The concept which focuses on customer welfare is called
(a) Production concept
(b) Product concept
(c) Marketing concept
(d) Societal concept

Answer :  A

Question. To regain the lost reputation and to build goodwill, firm uses
(a) Advertisement
(b) Sales Promotion
(c) Personal Selling
(d) Public Relation

Answer :  D

Question. Product, price, place and promotion are part of
(a) Product mix
(b) Price mix
(c) Marketing mix
(d) Place mix

Answer :  C

Question. The concept which focuses on large scale production and minimum cost is called
(a) Production concept
(b) Product concept
(c) Selling concept
(d) Marketing concept

Answer :  A

Question. To bring rise in sale with immediate effect for short period, firm uses
(a) Advertisement
(b) Sales Promotion
(c) Personal Selling
(d) Public Relation

Answer :  B

Question. The concept which forces on quality of product is called
(a) Production concept
(b) Product concept
(c) Selling concept
(d) Marketing concept

Answer :  B

Question. To reach the mass customer in non personnel manner, the following element of promotion mix is used.
(a) Advertisement
(b) Sales Promotion
(c) Personal Selling
(d) Public Relation

Answer :  A

Question. The concept which focuses on customer satisfaction is called
(a) Production concept
(b) Product concept
(c) Selling concept
(d) Marketing concept

Answer :  A

True or False :

1. When the manufacturer has limited product line and has to cover a wide market he can use his own selling agents. True

2. Maruti udyog sells its cars and vans through company approved retailers are using a direct distribution channel. false 

3. Three level distribution channel enables the manufacturer to cover wide area of network while retaining control over the channels false

4. Bata sells shoes through its own retail outlets are using one-level distribution channel. false

5.A brand name should be capable of being registered and protected legally.True

6. The price of Iphone 10 do not consider its brand value. false

7. The societal marketing concept is focused on the community welfare. True

8. Everything can be marketed. false

9. Sales promotional techniques plays an important role in sale of industrial goods. false

10. Personal selling is best suited for promoting daily use products. false

11. The most commonly adopted distribution network for consumer goods like soaps clothes, rice is three level channels. false

12. In case the time required to respond to the additional demand for the products is high there is need to maintain higher level of inventories. True

13. With the higher degree of accuracy of sales forecasts higher inventory levels are to be maintained. false

14. Higher the levels of customer service to be offered the greater will be the need to keep more inventories. True

15. Internet selling is an example of zero-level distribution channel. True 

Very Short Answer Questions :

Question. Mansi took her niece Ridhima for shopping to ‘Mega Stores’ to buy her a bag for her birthday. She was delighted when on payment of the bag she got a pencil box along with the bag free of cost. Idenfity the technique of sales promotion used by the company.
Answer : Product combination

Question. Name the term used to describe the combination of variables chosen by a firm to prepare to its market offerings..
Answer : Marketing Mix

Question. Beauty Products Ltd. is a natural and ethical beauty brand famous for offering organic beauty products for men and women. The company uses plant-based materials for its products and is the No.1 beauty brand in the country. It not only satisfies its customers but also believes in the overall protection of the planet. Identify the marketing management philosophy being followed by ‘Beauty Product Ltd’.
Answer : Societal Marketing Concept

Question. What is meant by trade mark.
Answer : a brand that is given legal protection against its use by other firm is called trademark.

Question. Maruti Vega Ltd. entered into the market with coloured televisions and have now introduced products like audio systems, air-conditioners, washing machines, etc. The company is not only offering the products but also handling complaints and offering after-sales services. Identify the element of marketing mix discussed here.
Answer : Product is the element of marketing mix discussed here.

Question. Name two techniques of sales promotion.
Answer : Discount, Rebate

Question. Good Living Ltd. manufactures mosquito repellent tablets tables. These tablets are packed in strips of 12 tablets each. Each of these strips is packed in a cardboard box, 48 such boxes are then placed in a big corrugated box and delivered to various retailers for sale. State the purpose of packaging the tablets in a corrugated box.
Answer : The purpose of packaging the tablets in a corrugated box is to facilitate their transportation, warehousing and easy identification.

Question. Zoom Udyog, a car manufacturing company, has started its business with Zoom-800 and slowly launched Zoom-1000, Wagon-Z, Swy-fy etc. and offered various services like after sales services, availability of spare parts, etc. Identify the element of marketing mix referred here.
Answer : Product is the element of marketing mix referred here.

Question. 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.
Answer : Price Skimming

Question. Shreemaya Hotel in Indore was facing a problem of low demand for its rooms due to off¬season. The Managing Director (MD) of the hotel, Mrs. Sakina was very worried. She called upon the marketing Manager, Mr. Kapoor for his advice. He suggested that the hotel should announce an offer of ‘3 Days and 2 nights hotel stay package’ with free breakfast and one-day religious visit to Omkareshwar and Mahakaleshwar Temples. The MD liked the suggestion very much. Identify the promotional tool which can be used by the hotel through which large number of prospective pilgrimage tourists all over the country and abroad can be reached, informed and persuaded to use the incentive.
Answer : Advertising is the promotion tool that can be used by the hotel.

Question. Give some innovative ideas of getting information about the trends/demand pattern in market.
Answer : Market Research

Question. Sunita took her niece, Aishwarya for shopping to ‘Benetton’ to buy her a dress on the occasion of her birthday. She was delighted when on payment for the dress she got a discount voucher to get 20% off for a meal of Rs. 500 or above at a famous eating joint.
Identify the technique of sales promotion used by the company in the above situation. 
Answer : Useable benefits is the technique of sales promotion used by the company in the above situation.

Short Answer Questions :

Question. “Coconut Joy Ltd.” are the manufacturer of vegetarian frozen dessert food products made with coconut milk, agave syrup and other certified ingredients. The founders of the company Lovely and Lalita originally developed this treat to meet their own needs but found that their friends and families around were also keen to use the products. It was not only the vegetarians, but also those who could not get enough environment friendly sustainable food, that appreciated the product. It did not take long for Lovely and Lalita to recognise the potential of their little venture. In the beginning they started from their home with the product being sold through local family parties that enable guests to personally meet the owner. This helped to establish strong connections with the prospective buyers and the company could put the product on shelves of natural food store. The company used* all marketing activities to grow and expand. The company began sponsoring booths at festivals, drawing attention to its newly created vegetarian products. It also disseminated relevant information to media about its products and the people who helped in building the company’s reputation. Lovely and Lalita were invited for an interview with one of the leading TV channels in which they talked about their environment friendly vegetarian products. To show its gratitude to customers, local business and government officials who supported the company from the beginning, “Coconut Joy Ltd.” hosted a gala event and involved all of them to raise funds for a few local NGO’s. The company also asked its fans and customers to send songs and poetry conveying their impression about “Coconut ‘Joy’s Ltd.” products.
1. Identify and explain the communication tool used by “Coconut Joy Ltd”. .
2. Briefly explain the role of the tool identified in (1) above.
Answer : 1. Public relations is the communication tool used by “Coconut Joy Ltd”. Public relations refers to the practice of managing communication between an organisation and its publics in order to create and maintain a positive image about itself and its products.
2. The role of public relations department is described below:
♦ Press Relation: It manages relations with the press to present true and correct information about the company. Thus, public relations helps to create a positive image about the company in the eyes of various interest holders like consumers, government, suppliers etc.
♦ Product Publicity: It undertakes product publicity for new products through sponsorships. Thus, it helps in launching new products as they may be accepted easily because of good reputation of business.
♦ Corporate Communication: It promotes image of the company through different ways of corporate communication like publication of newsletters, brochures, articles or arranging for talk shows or speeches of high officials of the company.
♦ Lobbying: It is proactive in promoting or defending regulations that affect business by maintaining healthy relationships with associations of commerce and industry, government officials and different ministers in charge of corporate affairs etc.

Question. Radha found a worm crawling out of newly opened tetra pack of juice manufactured by a reputed company, Zest Ltd. She went back to the shopkeeper from whom the pack was purchased who directed her to call up the customer care centre. When all her efforts fell free, she went to a consumer activist, group to seek advice. The group decided to help Radha and take measures to impose restrictions on the sales of the firm’s products of the particular batch and urge custo-mers to refrain from buying the products of the company. Zest Ltd. lost its image in the market. The CEO gave the responsibility of bringing back the lost image of the company to the Manager.
1. Identify the concept of marketing management which will help the Manager to get the firm out of the above crisis.
2. Also explain the role of above identified concept by stating any two points.
Answer : 1. Public relations will help the manager to get the firm out of the above crisis.
2. The role of public relations as a promotional tool is described below:
♦ Public relations helps to create a positive image about the company in the eyes of various interest holders like consumers, government, suppliers etc.
♦ It helps in launching new products as they may be accepted easily because of good reputation of business.
♦ It helps the business to reinstate itself in wake of controversies or prejudices etc.

Question. Radhika was a student of Business Studies of Class XII. Her father was a farmer who grew different varieties of rice and was well-versed in the various aspects of rice cultivation. He was also selected by the government for a pilot-project on rice cultivation. As a project work in Business Studies, she decided to study the feasibility of marketing good quality rice at a reasonable price. Her father suggested her to use the Internt to gather customers’ views and opinions. She found that there was a huge demand for packaged organic rice. She knew that there were no predetermined specifications in case of rice because of which it was difficult to achieve uniformity in the output. To differentiate the product from its competitors, she gave it the name of ‘Malabari Organic Rice’ and classified it into three different varieties, namely — Popular, Classic and Supreme, based on the quality. She felt that these names would help her in product differentiation. Explain the three functions of marketing with reference to the above paragraph
Answer : The three functions of marketing with reference to the above paragraph are described below:
♦ Gathering and analyzing market information: The prime focus of marketing is to ‘find wants and fill them’. Therefore, it is absolutely essential for a company to study the needs and preferences of its target market in order to satisfy their needs and wants optimally.
♦ Standardisation and grading: Standardisation refers to the process of manufacturing goods as per predetermined specifications. Grading refers to the process of classifying goods on the basis of certain criteria like quality, size etc. Usually, agricultural products are subject to grading.
♦ Branding: Branding is the process of assigning a name (brand name), sign or symbol (brand mark) or a combination of all to a product. It is considered to be a very important decision by the marketers because it facilitates product differentiation. This helps the company to obtain a desirable market share.

Question. Unilever has found a new way to make ice creams by using an ingredient called ‘ice structuring protein which is widely found in nature especially, in fishes which allows them to survive in freezing arctic waters. Combining ISP with stabiliser technology allows to make ice creams that don’t melt so easily thereby making it more convenient for small children and consumers in hot countries. In the context of above case:
1. Identify the component of marketing mix being taken into consideration by the company.
2. Explain briefly the function of marketing highlighted here.
3. List any two values that the company wants to communicate to the society.
Answer : 1. The component of marketing mix being taken into consideration by the company is ‘Product’.
2. Product designing and development: Every marketer strives to achieve his marketing objectives by creating offerings to satisfy a need or a want. Therefore, one of the core functions of marketing is to develop the product in the most effective and efficient way. Every marketer endeavours to add value to his product by introducing constant innovations in the product to enhance both its utility and attractiveness in the eyes of the potential buyers and gain a competitive edge.
3. The two values that the company wants to communicate to the society are:
♦ Responsibility towards consumers
♦ Technological advancement.

Question. Crackers Ltd., a fire-cracker manufacturing company launched some new products on eve of Diwali which attracted many buyers. To meet the increased demand, the company employed children from nearby villages. Although the product was in great demand, appropriate safety warnings for use were not mentioned on the packets that led to many accidents.
1. Identify and explain the important product-related decision that was not taken into consideration by the company.
2. Also, identify any two values which were violated by the company.
Answer : 1. The company has ignored ‘Labelling’. It is an important product-related decision. Labelling refers to the process of designing a label for a product containing product description and other relevant information which is likely to affect a prospective buyers decision in making a purchase. It may vary from a simple tag to a complex graphic.
2. The two values being violated by the company are:
♦ Abiding by law as child labour has been employed
♦ Concern for human life as appropriate warnings were not placed on the label.

Question. A company was marketing juicers 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 custo-mers got spoiled and the image of the company in the public was damaged. The 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. As a result, the goodwill of the company improved in the society.
1. Name and state the communication tool used by the marketer in the above case to improve its image.
2. Also explain the role of the tool as identified in part (1).
OR
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 customers got spoiled and the image of the company was damaged in the public. The 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.
1. Name and state the communication tool used by the marketer in the above case to improve its image.
2. Also explain role of the tool as identified in part (1).
Answer : 1. Public Relations is being used as a promotional tool by the marketer. It refers to the practice of managing communication between an organisation and its publics in order to create and maintain a positive image about itself and its products.
2. The role of public relations as a promotional tool is described below:
♦ Public relations helps to create a positive image about the company in the eyes of various interest holders like consumers, government, suppliers etc .
♦ It helps in launching new products as they may be accepted easily because of good reputation of business.
♦ It helps the business to reinstate itself in the wake of controversies or prejudices etc.

Question. As the number of people making online purchases has increased manifolds, there is a growing concern about the disposal and management of packaging waste. Every item bought is delivered with excess packaging and sometimes even non-biodegradable materials are used. In the context of above case:
1. Name the other two levels of packaging that the marketers may be using besides the immediate package.
2. Describe briefly any two points highlighting the functions of packaging.
3. State any two factors that should be kept in mind by the marketers while designing the packaging of its products.
Answer : 1. Secondary packaging and Transportation packaging.
2. The functions of packaging in the marketing of goods and services is explained below:
♦ Product Identification: Packaging facilitates the identification of the product with the use of different colours like wrapper of maggi noodles is red whereas yippe noodles are sold in orange colour packaging. Also, the shape of different brands of cold drinks bottles is different.
♦ Product Protection: One of the basic purposes of packaging is to safeguard the contents of a product from any kind of damage due to mishandling, adverse weather conditions etc. during the activities related to physical distribution like storing, transportation etc.
♦ The marketers: should use biodegradable packaging material and packaging should enhance the usability of the products.

Question. Ginika, Tanish and Rohit were friends from college days and now they are doing different kinds of business. They regularly meet and discuss their business ideas and exchange notes on customer satisfaction, marketing efforts, product designing, selling techniques, social concerns etc.
In one of such meetings, Ginika drew the attention of Tanish and Rohit towards the exploitation of consumers. She told that most of the sellers were exploiting the consumers in various ways’ and were not paying attention towards the social, ethical and ecological aspects of marketing, whereas she was not doing so.
Tanish told that they were under pressure to satisfy the consumers, but stated that the consumers would not buy or not buy enough unless they were adequately convinced and motivated for the same.
Rohit stressed that a company cannot achieve its objectives without understanding the needs of the customers. It was the duty of the businessmen to keep consumer satisfaction in mind because business is run by the resources made available to them by the society. He further stated that he himself was taking into consideration the needs of the customers.
Identify the various types of thinking that guided Ginika, Tanish and Rohit in the marketing efforts of their business. Also, state one more feature of the various types of thinking identified that is not given in the above para.
Answer : The various types of thinking that guided Ginika, Tanish and Rohit in the marketing efforts of their business are described below:
♦ (Ginika) Societal marketing concept: The main focus of this philosophy is on both the needs of the potential buyers as well as concern for the society at large. The ends include profit maximisation through customer satisfaction and social welfare.
♦ (Tanish) Selling concept: The main focus of this philosophy is on existing products. The ends include profit maximisation through sales volume.
♦ (Rohit) Marketing concept: The main focus of this philosophy is on customers needs. The ends include profit maximisation through customer’s satisfaction.

Question. ABC Crackers Ltd., a fire-cracker manufacturing company, launched some new products on the eve of Diwali in the market which attracted many buyers. To meet the increasing demand, the company employed people from nearby villages where there was a lot of unemployment. Because of the good behaviour of the management with the employees, more and more people wanted to join the company. As the products were in great demand in the market, a competitor imitated the products. The products of the competitor were not accepted by the consumers as it was a status symbol to buy the products of ABC Crackers Ltd. because of their quality.
1. Identify and explain the product-related decision because of which consumers preferred the products of ABC Crackers Ltd.
2. Also, identify any two values which ABC Crackers Ltd. wanted to communicate to the society.
Answer : 1. Branding is the product-related decision because of which consumers preferred the products of ABC Crackers Ltd. Branding is the process of assigning a name (brand name), sign or symbol (brand mark) or a combination of all to a product. Branding facilitates product differentiation, assists in advertising and display programmes, facilitates differential pricing , promotes consumers loyalty etc.
2. The two values that ABC Crackers Ltd. wants to communicate to the society are:
♦ Generating employment opportunities
♦ Providing good working environment.

Question. Mansi, a shoe manufacturer for school students, decided to maximise profits by producing and distributing shoes on a large-scale and thus reducing the average cost of production.
1. Identify the marketing management philosophy adopted by Mansi.
2. Explain this philosophy on the basis of the following:
♦ Main Focus
♦ Means and Ends 
Answer : 1. Mansi has adopted the production philosophy.
2. The main focus of this philosophy is on the quantity of products produced. Means: The production philosophy can be brought into effect by making products affordable and widely available. Ends: The production philosophy aims at maximizing profits through high volume of production.

Question. Rastro Inc., is a multinational corporation that creates consumer electronics, personal computers, servers and computer software. The company also has a chain of retail stores known as Restro Stores. Despite high competition, Restro has succeeded in creating demand for its products, giving the company power over prices through product differentiation, innovative advertising and ensured brand loyalty. In the context of above case:
1. What is product differentiation?
2. Name any one function of marketing that facilitates product differentiation.
3. Identify the component of promotion mix being used by the company by quoting lines from the paragraph. 
4. Describe briefly the pricing objective pursued by the company.
Answer : 1. Product differentiation is a strategy used by the marketers to gain an edge over its competitors by creating a distinguished perception of the product in the minds of the potential buyers in terms of its utilities.
2. Branding is a function of marketing that facilitates product differentiation.
3. Advertising is the component of promotion mix being used by the company “giving the company power over prices through product differentiation, innovative advertising and ensured brand loyalty.”
4. Attaining product quality leadership: Besides aiming at profit maximisation as its pricing objective Rastro Inc. seeks to establish a unique place for its products in the market by offering superior quality products which can be easily distinguished from its competitors. As a result, it is able to use differential pricing i.e. fixing up relatively higher prices for its products.

Question. “Time Line” watch manufacturing company is a renowned company marketing watches. It performs various activities like, market analysis, product designing or merchandising, packaging, warehousing,
branding, pricing, promotion and selling. The company maintains good customer relations through various follow up activities. This helps the company in procuring repeat sales orders.
1. Name the concept related to the activities mentioned in the above paragraph.
2. Explain any two features of the concept identified in part 
Answer : 1. Marketing is the concept related to the activities mentioned in the above paragraph.
2. The two features of marketing are described below:
♦ Needs and wants: Marketing is a social process that seeks to satisfy the needs and wants of individuals and organisations. Needs are basic to human beings like food, clothing and shelter and do not relate to a particular product. Whereas wants are culturally defined human needs which are shaped by multiple factors like personality, religion, culture etc. Needs are limited whereas wants are unlimited. Therefore, the success of marketing lies in the competence of the marketer to identify needs of target customers and develop products to satisfy such needs effectively.
♦ Creating a market offering: The complete offer for a product or service possessing certain specific features like size, quality, colour etc. is known as a market offering. Thus, the success of the marketers lies in their proficiency to create a market offering in accordance with the needs and wants of the target market. For example a pack of 100 ml of mango juice is available for ? 20.

Question. ‘Haryaram’ 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 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 Haryaram to prepare its market offering. Identify and explain the variables.
Answer : The combination of variables used by Haryaram to prepare its market offerings are described below:
♦ Product: “Their products include chips, biscuits , sweets and squashes.” A product is anything of value i.e. a product or service offered to a market to satisfy its needs or wants. A product includes physical product, after ..sale service, handling grievances etc. Every marketer needs to constantly review and revise its products in order to enhance customer’s satisfaction and have a competitive edge.
♦ Price: “It charges a comparatively higher price than its competitors.” Price is the monetary value paid in consideration for purchase of a product or service by a buyer to its seller. It is a very crucial decision for the marketers as consumers are very sensitive to the pricing. The factors affecting price determination are cost of product, the utility and demand, extent of competition in the market, government and legal regulations, pricing objectives and marketing methods used.
♦ Place: “It has five of its own retail shops.”Or “It also sells its products through various grocery shops.” It is considered an important element of marketing mix because it includes all those activities that help in making the goods and services available to the prospective buyers in the right quantity, at the right time and in right condition. The two main decisions involved in physical distribution are physical movement of goods from producers to consumers and choice of channels of distribution.
♦ Promotion: “It regularly uses different communication tools to increase its sales.” Promotion refers to the set of activities undertaken by a marketer to inform the prospective buyers about the product and persuading them to make a purchase. The various components of promotion mix are advertising, sales promotion, personal selling and public relation.”

Question. Radha found a worm crawling out of newly opened tetra pack of a juice manufactured by a reputed , Zest , Ltd. .. She went back to the shopkeeper from whom the pack was purchased who directed her to call up the customer care centre. When all her efforts failed, she went to a customer activist group to seek help. The group decided to help Radha and take measures to impose restrictions on the sale of the firm’s products of the particular batch and urge customer to refrain from buying the products of the company. Zest Ltd. lost its image in the market. The CEO gives the responsibility of bringing back the lost image of the company to a Manager.
a) Identify the concept of Marketing Management which will help the manager getting the firm out of the above crisis.
b) Also explain the role of above identified concept by stating any two points.
Answer : (a) Public relations
(b) Role of public relation : -
1. Press Relations : The public relation department is in contact with the media to present true facts and a correct picture about the company. Otherwise needs can be distorted if taken from other sources. This department present the information in a positive manner is the press.
2. Product publicity: The public relations department makes special efforts to publicize the new products. This department manages sponsoring of such events. They arrange sports and cultural events, new conferences, seminars and exhibition.
3. Counseling: The public relations department advises the management on general issues which affect the public. The company can build goodwill by contributing money and time for certain like, environment, children’s, education, wildlife etc.

Question. Explain any four factors affecting the determination of the price of a product or service? Explain .
Answer : 1. Pricing objectives - If a firm wants to capture big share in the market then it has to keep its price low so that more number of people are attracted to purchase the product.
To survive in a competitive market the firms have to reduce their price by offering discount.
2. Product cost - The Price is fixed after calculating the total cost. In case of high competition and to capture big share if firm has to fix low price then at least the price must cover variable cost and fixed cost can be ignored for some time .
3. Customer ‘s demand and utility - when demand of the product is inelastic i.e. no or very less substitutes are available then company can fix up high price.
Whereas when demand is elastic i.e. more substitutes are available then price has to be brought down.
4. Market method used - If company is using intensive advertising to promote the sale of product then it will charge high price. Other marketing methods which affect price of a product are type of packing, distribution system, salesman, employed, customer support services etc.