Marketing

XII-BUSINESS STUDIES GA- 1
NOTES - Marketing Management

Market: In the traditional sense, the term ‘market’ refers to the place where buyers and sellers gather to enter into
transactions involving the exchange of goods and services. In Modern sense it refers to a set of actual and potential
buyers of a product and service.
Marketing: In traditional sense marketing has been referred to as performance of business activities that direct
the flow of goods and services from producers to consumers. In modern sense marketing is a social process where
in people interact with others, in order to persuade them to act in a particular way, say to purchase a product or a service,
rather than forcing them to do so.
Important features of Marketing

a) Needs & wants: the primary reason or motivation for people to engage in the process of marketing is to satisfy
some of their needs or wants. In other words, the focus of the marketing process is on satisfaction of the needs &
wants of individuals & organizations.
b) Creating a market offering: market offering refers to a complete offer for a product of service, having given
features like size, quality, taste of at a certain price,, available at a given outlet or location & so as good ‘market
offer’ is the one which is developed after analyzing the needs & preferences of the potential buyers.
c) Customer value
The job of a marketer is to add to the value of the product so that the customer prefers it in relation to the completing
products and decide to purchase it.
d) Exchange mechanism
service from someone, offering the same by giving something in return.
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Exchange refers to the process through which two or more parties come together to obtain the desired product or
Important conditions for Exchange Mechanism

a)
b)
Involvement of at least 2 parties viz. The buyer & the seller.
Each party should be capable of offering something of value to the other.
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c)
d)
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Each party should have the ability to communicate & deliver the product of service.
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Each party should have freedom, to accept or reject other party’s offer.
The parties should be willing to enter into transaction with each other.
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Meaning and concept of Marketing management - A
Marketing management means management of the marketing functions- It is the process of organising, directing and
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controlling the activities related to marketing of goods and services to satisfy customers’ needs & achieve organisational
goals. Marketing management involves the following steps or activities:-
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1. Choosing a target market - e.g., a manufacturer may choose to make ready-made garments upto the age of 5
years for children.
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2. Creating customers in target market - To increase the number of customers by analysing their needs, wants
etc.
3. Creating superior value - To make the product better than competitors products for customers .
Q1. What can be marketed?

Anything that is of value to the other parties can be marked. It can be a product or a service or a person or a place
or an idea or an event or an organization or experience or properties.
Marketer: Marketer refers to any person who takes more active part in the process of exchange. Normally it is the
seller who is more active in the exchange process as he/ she analyses the needs of the potential buyers, develops a
market offering and persuades the buyers to buy the product.
Marketing management: Marketing management means management of the marketing function. In other words,
marketing management refers to planning, organising, directing and control of the activities which facilitate exchange of
goods and services between producers and consumers or users of products and services. Thus the focus of marketing
management is on achieving desired exchange outcomes with the target markets. Process of management of marketing
involves:
GURUJI ACADEMY, J-03, UPPER GROUND FLOOR, KIRTI NAGAR, NEW DELHI-110015 PHONE # 9899037473, 9811668836
a) Choosing a target market, say a manufacturer may choose to make readymade garments for children.
b) In respect of the target market chosen, the focus of the process of management is on getting, keeping as well as
growing the customers.
c) The mechanism for achieving the objective is through creating, developing and communicating superior values for
the customers.
Difference between Marketing and Selling

Basis Marketing Selling
Scope It has a wider scope as it includes selling. It has a narrow scope as it is a part of marketing.
Focus Its focus is on achieving the maximum Its focus is on transferring the title of goods from
satisfaction of the customer needs or wants. producer to the customers.
Objectives Profit maximization through customer Satis. Profit maximization through volume sales.
Starting point It starts much before the production of goods It starts after the production of goods & ends with its
and continuous even after the product is sold. selling.
Bending It bends the organization as per the wants of It bends the customers according to the product.
the customers.
Strategies It uses integrated strategies with respect to It uses strategies like promotion & persuasion.
used price cuts, promotion & physical distribution.
Marketing Strategies/Philosophies
Production concept
a) It was believed that profits could be maximised by producing at large scale, thereby reducing the average cost of
affordable price.
b) The focus of business activities was, therefore, on production of goods.
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production. It was also assumed that consumers would favour those products which were widely available at an
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c) Thus, availability and affordability of the product were considered to be the key to the success of a firm.
d) Therefore, greater emphasis was placed on improving the production and distribution efficiency of the firms.
Product concept
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a) With the increase in the supply of the products, customers started looking for products which were superior in
quality, performance and features.
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b) Therefore the emphasis of the firms shifted from quantity of production to quality of products.
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c) The focus of business activity changed to bringing continuous improvement in the quality, incorporating new features
etc.
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Selling concept
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d) Thus, product improvement became the key to profit maximization of a firm, under the concept of product orientation.
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a) The increase in the scale of business further improved the position with respect to supply of goods, resulting in
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increased competition among sellers.
b) The product quality and availability did not ensure the survival and growth of firms because of the large number of
sellers selling quality products. This led to greater importance to attracting and persuading customers to buy the
product.
c) The business philosophy changed. It was assumed that the customers would not buy, or not buy enough, unless they
are adequately convinced and motivated to do so. Therefore, firms must undertake aggressive selling and promotional
efforts to make customers buy their products.
d) The use of promotional techniques such as advertising, personal selling and sales promotion were considered essential
for selling of products.
e) Thus, the focus of business firms shifted to pushing the sale of products through aggressive selling techniques with
a view to persuade or lure the buyers to buy the products.
Marketing concept
a) Marketing orientation implies that focus on satisfaction of customer’s needs is the key to the success of any
organization in the market.
b) It assumes that in the long run an organization can achieve its objective of maximisation of profit by identifying the
needs of its present and prospective buyers and satisfying them in an effective way.
c) The focus of the marketing concept is on customer needs and the customer satisfaction becomes the means to
achieving the firms’ objective of maximising profit.
d) The purpose of marketing is to generate customer value at a profit.

e) The marketing concept is based on the following pillars:
a) Identification of market or customer who are chosen as the target of marketing effort.
b) Understanding needs and wants of customers in the target market.
c) Development of products or services for satisfying needs of the target market.
d) Satisfying needs of target market better than the competitors.
e) Doing all this at a profit.
Societal marketing concept

a) The societal marketing concept holds that the task of any organization is to identify the needs and wants of the
target market and deliver the desired satisfaction in an effective and efficient manner so that the long-term well-
being of the consumers and the society is taken care of.
b) Thus, the societal marketing concept is the extension of the marketing concept as supplemented by the concern for
the long-term welfare of the society.
c) Apart from the customer satisfaction, it pays attention to the social, ethical and ecological aspects of marketing.
Functions of marketing
a) Gathering & analyzing market information: One of the important functions of a market is to gather and analyze
market information. This is necessary to identify the needs of the customers & take various decisions for the
successful marketing of the products & services. This is important for making an analysis of the available opportunities
and threats as well as strengths and weaknesses of the organisation and help in what opportunities can be best
pursued by it.
b) Marketing planning: Another important activity or area of work of a marketer is to develop appropriate marketing
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plans so that the marketing objectives of the organization can be achieved. For example a marketer of colour TV,
having 10 per cent of the current market share in the country, aims at enhancing his market share to 20 per cent, in
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the next three years. He will have to develop a complete marketing plan covering various important aspects like the
c)
level of production, promotion of the products, etc.
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Product designing & development: The design of the product contributes to making the product attractive to the
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target customers. The design of the product contributes to making the product attractive to the target customers. A
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good design can improve performance of a product and also give it a competitive advantage in the market. For
example, when we plan to buy any product say a motorbike, we not only see its features like cost, mileage, etc. but
also the design aspects like its shape, style, etc.
d)
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Standardization & grading: Standardization refers to producing goods of predetermined specifications, which
helps in achieving uniformity in the outputs. It also leads to reducing need for inspection, testing and evaluation of the
product. Grading is the process of classification of products into different groups, on the basis of some of its
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important characteristics such as quality, size, etc. Grading ensures that goods belong to a particular quality and
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helps in realising higher prices for high quality output.
Customer support service: A very important function of the marketing management relates to developing customer
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support services such as after sales services, handling customer complaints & adjustments, procuring credit services,
maintenance services, technical services & consumer information. Customer support services are very effective in
bringing repeat sales from the customers and developing brand loyality for a product.
Physical distribution: Managing physical distribution is another very important function in the marketing of goods
& services. The two major decision areas under this function include
a) Decision regarding channels of distribution or the market intermediaries (like whole sales, retailers) to be used.
b) Physical movement of the product.
The important decision areas under physical distribution include managing inventory (levels of stock of goods),
storage and warehousing and transportation of goods from one place to the other.
g) Packaging & labeling: Packaging refers to designing & developing the package for the products. Labeling refers
to designing & developing the label to be put on the package the label may vary from a simple tag to complex
graphics. Packaging is important not only for protection of the product but also serves as a promotional tool. Sometimes,
the quality of the product is assessed by the buyers form packaging.
h) Branding: Brand name helps in creating product differentiation, i.e., providing basis for distinguishing the product
of a firm with that of the competitors which in turn helps in building customer’s loyalty & in promoting its sale. The
important decision areas in respect of branding include deciding the branding strategy, say whether each product will
be given a separate brand name or the same brand name will be extended to all products of the company,
i) Pricing of product: Pricing of product refers to the amount of money customers have to pay to obtain a product.
Price is an important factor affecting the success of failure of a product in the market the marketers have to
properly analyze the factors, determining the price of a product. The marketers have to properly analyse the factors
determining the price of a product and take several crucial decisions in this respect, including setting the pricing
objectives, determining the pricing strategies, determining the price and changing the prices.
j) Promotion: Promotion of products and services involves informing the customers about the firm’s product, its
features etc & persuading them to purchase these products the four important methods of promotion include
advertising, personal selling, and publicity & sales promotion.
k) Transportation: Transportation involves physical movement of goods from one place to the other. As generally the
users of products, particularly consumer products are wide spread & geographically separated from the place these
are produced, it is necessary to move them to the place where it is needed for consumption or use.
l) Storage of warehousing: Usually there is a gap between the production and procurement of goods & their sale or
use. In order to maintain smooth flow of products in the market, there is a need for proper storage of the products.
Further, there is a need for storage of adequate, stock of goods to protect against unavoidable delays in delivery or
to meet out contingencies in the demand.
Marketing mix: The combination of variable (product, place, price and promotion) chosen by a firm to prepare is
market offering is also called marketing mix. Thus, marketing mix is described as the set of marketing tools that a firm
uses to pursue its marketing objectives in a target market.
Elements of marketing mix

The marketing mix consists of various elements which have broadly been classified into four categories, popularly known
as four P’s of marketing. These are
a) Product b) Price c) Place d) Promotion
These are briefly discussed as follows:
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1) Product: Product means goods & services or ‘anything of value’ which is offered to the market for sales. The
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concept of product relates not only to the physical product but also include the extended product or what is offered
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to the customers by way of after sales services, handling complaints, availability of spare parts etc. These aspects
are very important, particularly in the marketing of consumer durable products (like automobiles, refrigerators, etc.)
2)
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Price: Price is the amount of money customers have to pay to obtain the product. The marketers have not only to
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decide about the objectives of price setting but to analyze the factors determining the price & fix a price for the
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firm’s products.
3)
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Place: Place of physical distribution include activities that make firm’s products available to the target customers,
the other decision areas relate to managing inventory, storage & warehousing & transportation of goods from the
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place it is produced to the place it is required by the buyers.
4)
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Promotion:Promotion of products and services include activities that communicate availability, features, merits,
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etc of the products to the target customers and persuade them to buy substantial amount of money is spent on the
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promotion of their goods through using number of tools such as advertising, personal selling & sales promotion
techniques (like discounts, free samples, etc).
Product: The work ‘product’ is used to refer only to the physical or tangible attributes of a product. Product is a
mixture of tangible & intangible attributes, which are capable of being exchanged for a value, with ability to satisfy
customer needs. There can be three types of benefits a customer may seek to satisfy from the purchase of a
product, viz., (i) functional benefits, (ii) psychological benefits, and (iii) social benefits. For example, the purchase
of a motorcycle provides functional utility of transportation, but at the same time satisfies the need for prestige and
esteem and provides social benefit by the way of acceptance from a group, by riding a motorbike.
Branding: The process of giving a name or a sign of a symbol etc to a product is called branding. The various terms
relating to branding are as follows:
1. Brand: A brand is a name, term, sign, symbol design or some combination of them, used to identify the products –
goods or services of one seller or group of sellers & to differentiate them from those of the competitors. For
example, some of the common brands are Bata, Lifebuoy, Dunlop, Hot Shot, and Parker. Brand is a comprehensive
term, which has two components—brand name and brand mark. For example, Asian Paints has the symbol of Gattu
on its pack, which is its brand mark.
2. Brand Name: That part of a brand which can be spoken is called a brand name. For example, Asian paints, Safola,
Maggie, lifebuoy, Dunlop & Uncle Chips are the brand names.
3. Brand Mark: That part of a brand which can be recognized but which is not utterable is called brand mark. For
example, the Gattue of Asian paints or devil of Onida or symbol of Yogkshma of LIC.
4. Trade Mark: A brand or part of a brand that is given legal protection is called trademark, the protection is given
against its use by other firms. Thus the firm, which got its brand registered, gets the exclusive right for its use. In that
case, no other firm can use such name or mark in the country.
5. Generic Name: Refers to the name of the class of the product e.g. Shoes, pen, car etc.
Advantages to the marketers

a) Enables marking & product differentiation: branding helps a firm in distinguishing its product from that of its
competitors. This enables the firm to secure and control the market for its products.
b) Helps in advertising & display programmes: a brand aids a firm in its advertising & display programmes.
c) Differential pricing: branding enables a firm to change different price for its products than that charged by its
competitors.
d) Ease in introduction of new product: if a new product is introduced under a known brand, it enjoys the reflected
glory of the brand & likely to get off to an excellent start.
Advantages to Customers
a) Helps in product identification: branding helps the customers in identifying the products. Branding greatly facilitates
repeat purchase of the products.
b) Ensures quality: branding ensures a particular level of quality of the product. Thus, whenever there is any deviation
in the quality the customers can have recourse to the manufacturer or the marketer.
c)
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Status symbol: some brands become status symbols because of their quality. The consumers of those brands of
products feel product of using them and adds to the level of satisfaction of the customers.
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Characteristics of Good Brand Name
a)
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It should be distinctive: The market is filled with over-worked names and over-used symbols. A unique and
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distinctive symbol is not only easy to remember but also a distinguishing feature. ”Northstar” shoes have a distinct
name.
b)
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It should be suggestive: A well-chosen name or symbol should be suggestive of quality, or may be associated
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with superiority or a great personality. The name VIP Classic for travelers is suggestive of a superior quality for a
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distinct class of people. Promise is suggestive of an assurance of tooth health.
c)
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It should be appropriate: Many products are surrounded by a certain mystique in the minds of the consumers.
Carefree is an appropriate brand name of a sanitary towel.
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It should be easy to remember: It should be easy to read, pronounce and spell. Tide, Surf, Gold Spot are
e)
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examples of such brand names.
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It should be adaptable to new products: Videocon is was good brand name for TVs and VCRs but when it is
extended to refrigerators and washing machine, some of the sales appeal is lost. Hotline was a good name for gas
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stoves, but definitely not a suitable name for TVs.
It should be capable of being registered under the Indian laws of Trade Marks and Copyrights.
Chosen name should have staying power i.e., it should not get out of date.
Packaging: Packaging refers to the act of designing and producing the container or wrapper of a product with the
purpose of not only providing protection against the physical damage but also contributes to its sales maximization. For
example, it was one of the important factors in the success of products like Maggie’s Noodles, Uncle Chips or Crax
wafers.
Levels of Packaging
a) Primary package: It refers to the product’s immediate container. The primary package is kept till the consumer is
ready to use the product e.g., plastic packet for socks.
b) Secondary package: It refers to additional layers of protection that are kept till the product is ready for use, e.g.,
a tube of shaving cream usually comes in a card board box.
c) Transportation packaging: It refers to further packaging components necessary for storage, identification or
transportation. For example a toothpaste manufacturer may send the gods to retailers in corrugated boxes containing
10, 20 or 100 units.
Importance of Packaging
1) Rising standards of health & sanitations: because of the increasing standards of living in the country, more &
more people have started purchasing packed goods as the chances of adulteration in such goods are minimized.
2) Self-service outlets: the self-service retail outlets are becoming very popular, particularly in major cities and
towns.
3) Innovational opportunity: some of the recent developments in the area of packaging have completely changed
the marketing scene in the country.
4) Product differentiation: packaging is one of the very important means of creating product differentiation. The
colours, size, material, etc of package makes real difference in the perception of customers about the quality of the
product.
Functions of Packaging
1) Product Identification: packaging greatly helps in identification of the product.
2) Product Protection: packaging protects the contents of a product from spoilage, breakage, leakage, pilferage,
damage, climatic effect, etc
3) Facilitating use of the product: the size & shape of the package should be such that it should be convenient to
open, handle & use for the consumers.
4) Product Promotion: packaging is also used for promotion purposes. A starting colour scheme, photograph or
typeface may be used to attract attention of the people at the point of purchase.
Labeling
1) Describe the product & specify its contents: let use look at some of the labels of the products used by us in our
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day to day life. The label on the package of a local tea company describes the company as ‘Mohini Tea Company’
an ISO 9001:2000 certified company.
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2) Identification of the product of brand: the other important function performed by labels is to help in identifying
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product or brand. For example, the brand name of & product, say biscuits or potato chips imprinted on its package.
3) Grading of products: another important function performed by labels is to help grading the products into different
4)
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categories. Sometimes marketers assign different grades to indicate, different features of quality of the product.
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Help in promotion of products: an important function of label is to aid in promotion of the products. A carefully
designed label can attract attention & give reason to purchase. For example, the pack of popular Amla hair oil
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states, ‘Baalon Mein Dum, Life Mein Fun’.
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Providing, information required by law: another important function of labeling is to provide information required
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by law. For example, the statutory warning on the package of cigarettes or ‘Pan Masala,’ smoking is injurious to
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health’ or ‘chewing tobacco is injurious to health’.
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Pricing: Price may be defined as the amount of money paid by a buyer (or received by a seller) in consideration of the
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purchase of a product or a service.
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Factor affecting Price Determination
1. Product cost: It is one of the most important factor determining prices of the commodity. Total cost refers to the
sum of fixed cost, variable cost and semi-variable cost. The price of the commodity should be able to cover fixed
cost as well as variable cost along with the reasonable amount of profit margins. Cost of production sets the
minimum price at which the product will be sold.
2. Utility and demand: Another important factor is the utility and demand of the product. If the utility of the product
is more than the price is also more and vice versa. Price of the commodity is affected by the elasticity of demand
also. If the product has inelastic demand then higher prices can be fixed. On the other hand if price is elastic, lower
prices have to be fixed.
3. Extent of competition in the market: The price will tend to reach the upper limit in case there is lesser degree
of competition while under conditions of free competition, the price will tend to be set at the lower level. Not only the
price but the quality & the features of the competitive products must be examined carefully, before fixing the price.
4. Govt. & Legal Regulations: In order to protect the interest of public against unfair practices in the field of price
fixing govt. Can intervene & regulate the price of commodities govt. can declare a product as essential product &
regulate its price.
5. Pricing Objectives: If the firm decides to maximize profits in the short run, it would tend to charge maximum price
for its products. But if it is to maximize its total profit in the long run, it would opt for a lower per unit price, so that
it can capture large share of the market & earn greater profits through increased sales.
6. Marketing Methods Used: Price fixation process is also affected by other elements of marketing such as
distribution system etc. For e.g. if a company provides free home delivery, it has some of flexibility in fixing prices
& vice-versa.
Physical Distribution: It is concerned with making the goods & services available at the right place, so that
people can purchase the same. Physical distribution covers all the activities required to physically move goods from
manufacturers to the customers. Important activities involved in the physical distribution include transportation, warehousing,
material handling, and inventory control.
Types of channels
1) Direct channel (zero level): the most simple & the shortest mode of distribution is direct distribution, where in the
goods are made directly available by the manufacturers to customers, without involving any intermediary. This is
also called zero level channels. For example McDonald, Bata
Manufacturer Customer
2) Indirect channel: When a manufacturer employees one or more intermediaries to move goods from the points of
production to the point of consumption, the distribution network is called indirect channel. This may take any of the
following forms:
a) Manufacturer – Retailer Consumer (one level channel): In this form of arrangement one intermediary i.e.,
retailer is used between the manufacturers & customers.
Manufacturer Retailer Customer
b) Manufacturer–Wholesaler–Retailer Consumer (two level channel) : This is the most commonly adopted
distribution network for most consumer goods like roads, oils, clothes, rice, sugar & pulses.
Manufacturer Wholesaler Retailer Customer
c) Manufacturer–Agent–Wholesaler–Retailer–Product–Consumer (Three Level Channel): In this case,
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manufacturers use their own selling agents or brokers who connect them with wholesalers and then the retailers
Manufacturer Agent Wholesaler Retailer
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Customer
Factors Determining Choice of Channels

1. Product–Related factors
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a) Type of product : if the product is of industrial nature then it requires direct channels since these products are
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heavy and bulky, on the other hand if products are of consumable nature, then it requires indirect channels.
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b) Nature of product: if the product is of perishable nature, then it requires direct channels for e.g., fruits, vegetables
etc. On the other hand if product is of non-perishable nature, it requires indirect channel for shoes, clothes etc.
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c) Level of complexity: if product is of complex nature, then it requires direct channels for e.g., industrial goods
on other hand if product is of non-complex nature then it requires indirect channels for e.g., consumer goods.
d) Unit value: generally the expensive goods like diamond, gold etc, are sold through direct channels on the other
2.
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hand cheaper products are sold through indirect channels for e.g., bread, butter etc.
Company related factors
a) Financial strength of company: if the company have strong financial base then it can prefer to open their retail
outlets and hence can prefer direct channels. On the other hand indirect channels are preferred if they are not
financial strong.
b) Degree of control: if the firm wants to have a high degree of control over the distribution, then the firm prefers
to use direct channels for e.g., Bata, McDonalds on the other hand. Indirect channels are used if they do not
want to control over distribution.
3. Market -Related factors:
a) Size of market: If the size of the market is large, then indirect channels are used for e.g. Maruti car etc. On the
other hand direct channels are used if size of mkt. is small for e.g. Bata shoes etc.
b) Quantity purchased: if the size of the order is large than direct channels are preferred on the other hand
indirect channels are used if size of the order is small.
c) Geographical concentration: if the customers are scattered over the wide geographical area, then indirect
channels are used for e.g. Britannia bread. On the other hand direct channels are used if these are scattered in
a smaller area.
4. Competition Factors: the choice of chance is also affected by the channels selected by competitors in the same
industry. It will depend upon the policy of the firm – whether it wants to go with the competitors or be different from
them.
5. Environmental Factors: other important factors affecting the choice of channel of distribution include environmental
factor such as economical condition & legal constraints. In a depressed economy markets use shorter channels to
distribute their goods in an economical way.
Promotion: Promotion mix refers to communication with the twin objective of informing potential customer about a
product & persuading them to buy it.
Promotion mix: Promotion mix refers to combination of promotional tools used by an organization to achieve its
communication objectives. These includes: (i) advertising, (ii) personal selling, (iii) sales promotion & (iv) publicity.
Advertising: It is an impersonal form of communication which is paid for by the marketers (sponsors) to promote
some goods & services.
Features
1) Paid form: advertising is a paid form of communication that is the sponsor has to bear the cost of communicating
with the prospects.
2) Impersonality: there is no direct face-to-face contact between the prospect & the advertiser.
3) Identified sponsor: advertising is undertaken by some identified individuals or company, who makes the advertising
efforts & also bears the cost of it.
Objections to Advertising
1. Add to Cost: The supporters of advertising argue that advertising unnecessarily adds to the cost of product,
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which is ultimately passed on to the buyers in the form of high prices. An advertisement on TV, for a few seconds,
for example, costs the marketers several lakhs of rupees. The money spent increases the cost, which has to be
borne by the consumers in form of higher prices for the product.
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The opponents of advertising argue that it is true, advertisement of a product costs lot of money but it helps to
increase the demand for the product as large number of potential buyers come to know about the availability of the
products, its features etc. and are persuaded to buy it. The increased demand leads to higher production, which
2.
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brings with it the economies of scale. As a result, per unit cost of production comes down.
Undermines Social Values: The supporters of advertising argue that it undermines social values and promotes
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materialism. It breeds discontent among people as they come to know about new products and feel dissatisfied with
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their present state of affairs. Some advertisements show new life styles, which don’t find social approval.
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The opponents of advertising argue that this criticism is not entirely true. Advertisement in fact helps buyers by
informing them about the new products, which may be improvement over the existing products. If the buyers are not
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informed about these products, they may be using inefficient products. Further, the job of an advertisement is to
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inform. The final choice to buy or not to buy anyway rests with the buyers. They will buy if the advertised product
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satisfies some of their needs. They may be motivated to work harder to be able to purchase these products.
Confuses the Buyers: The supporters of advertising argue that so many products are being advertised which
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makes similar claims that the buyer gets confused as to which one is true and which one should be relied upon. For
example, we may note similar claims of whiteness or stain removing abilities in competing brands of detergent
powder or claims of whiteness of tooth or ‘feelings of freshness’ in competing brands of toothpaste that it is
sometimes confusing to us as to which one to buy.
The opponents of advertisement, however, argue that we are all rational human beings who make our decisions
for purchase of products on factors such as price, style, size, etc. Thus the buyers can clear their confusion by
analysing the information provided on the advertisements and other sources before taking a decision to purchase a
product. However, this criticism cannot be completely overruled.
4. Encourages Sale of Inferior Products: The supporters of advertising argue that advertising does not distinguish
between superior and inferior products and persuade people to purchase even the inferior products. In fact superiority
and inferiority depends on the quality, which is a relative concept. The desired level of quality will depend on the
economic status and preferences of the target customers. Advertisements sell products of a given quality and the
buyers will buy if it suits their requirements.
The opponents of advertising argue that no advertisement should however, make false claim about the quality of
a product. If a firm makes a false claim it can be prosecuted for the same.
5. Some Advertisements are in Bad Taste: The supporters of advertising argue that some advertisements are
in bad taste. These show something which in not approved by some people say advertisements showing women
dancing when not required or running after a man because he is wearing a particular suit or using a particular
perfume are certainly not good. Some advertisements distort the relationship like employer employee and are quite
offensive.
Personal Selling: Personal selling involves oral presentation of message in the form of conversation with one or
more prospective customers for the purpose of making sales. It is a personal form of communication.
Features of Personal Selling

1) Personal form: in personal selling, a direct face-to-face dialogue takes place that involves an interactive relationship
b/w the sellers & the buyers.
2) Development of relationship: personal selling allows a sales person to develop personal relationship with the
prospective customers.
Qualities of a Good Salesman

1) Physical qualities – A good salesman should be good looking and must have an appealing posture. He / she must
be convincing by voice. He / she should not show a negative expression under any circumstances.
2) Mental / psychological qualities– A good salesman should be friendly and sweet natured and must be patient. He
/ she should know how to deal with the customers of different age groups.
3) Technical qualities – A good salesman should have full knowledge about the firm. He / she is working for, and also
about the product he / she is selling. He / she should be able to explain the features, benefits, quality and other
specifications of the product.
4) Communication skills– A good salesman should have extremely good communication skills. He / she should be
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able to answer questions and overcome objections. He / she should be a good listener also.
5) Honesty– A good salesman should be honest and sincere in discharging his / her duties assigned by the firms.
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6) Courtesy – A good salesman must be very polite. Polite language should be used to win buyer’s confidence. This
will also help him / her to make regular and permanent customers.
7)
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Persistent– A good salesmen is persistent. He / she never give up and give their best to persuade customers to buy
the product.
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Sales Promotion: Sales promotion refers to short-term incentives, which are designed to encourage the buyers to
make immediate purchase of a product or service. These include all promotional efforts other than advertising, personal
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Commonly used Sales Promotion Techniques A
selling and publicity, used by a company to boost its sales.
1.
2.
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Rebate: Offering products at special prices, to clear off excess inventory. Example, a car manufacturer’s offer to
sell a particular brand of car at a discount of Rs 10,000, for a limited period.
Discount: Offering products at less than list price. Example, a shoe company’s offer of ‘Discount Up to 50%’ or
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a shirt marketer’s offer of ‘50+40% Discount’.
Refunds: Refunding a part of price paid by customer on some proof of purchase, say on return of empty foils or
wrapper. This is commonly used by food product companies, to boost their sales.
Product Combinations: Offering another product as gift along with the purchase of a product, say offer of a pack
of ½ kg of rice with the purchase of a bag of Aatta (wheat flour), or ‘Get 128 KB Memory Card Free with a
Digicam’ or Buy a TV of 25+ and Get a Vacuum Cleaner Free’ or ‘100 Gm Bottle of Sauce Free With 1 kg
Detergent.’
5. Quantity Gift: Offering extra quantity of the product commonly used by marketer of toiletry products. For example,
a shaving cream’s offer of ‘40% Extra’ or A Hotel’s offer “Take a 2 Night 3 Days Package At the Hotel and Get an
Extra Night Stay At Just Rs 500” or ‘Buy 2 Get 1 Free’ offer of a marketer of shirts.
6. Instant Draws and Assigned Gift: For example, ‘Scratch a Card’ or ‘Burst a Cracker’ and instantly win a
Refrigerator, Car, T-shirt, Computer, with the purchase of a TV.
7. Lucky Draw: For example, the offer of a bathing soap to win a gold coin on lucky draw coupon for free petrol on
purchase of certain quantity of petrol from given petrol pump or lucky draw coupon on purchase of easy undergarment
and win a car offer.
8. Usable Benefit: ‘Purchase goods worth Rs 3000 and get a holiday package worth Rs 3000 free’ or ‘Get a
Discount Voucher for Accessories on Apparel Purchase of Rs 1000 and above.’
9. Full finance @ 0%: Many marketers of consumer durables such as Electronic goods, automobiles etc offer easy
financing schemes such as ‘24 easy instalments, Eight Up Front and 16 To Be Paid as Post Dated Cheques’.
However, one should be careful about the file charges, which sometimes is nothing but interest recovered
in advance.
10. Sampling: Offer of free sample of a product, say a detergent powder or tooth paste to potential customers at the
time of launch of a new brand.
11. Contests: Competitive events involving application of skills or luck, say salving a quiz or answering some questions.
Public Relations: Concept

The concept of Public Relations involves a variety of programmes to promote and protect a company’s image or its
products. It means to strengthen relations with various stake holders like customers, shareholders, employees, suppliers,
investors etc. It is done through – news, speeches by corporate leaders, organizing events like sports events, concerts,
seminars etc.
‘Public Association Relations’ defined public relations as “ The art and social science of analyzing trends,
predicting their consequences, counseling organizational leaders and implementing planned programme of
action which will serve both the organization and the public interest.”
“The Chartered Institute of Public Relations” defines Public Relations as ‘a strategic management function that adds
value to an organization by helping it to manage its reputation;
Public relations covers a wide range of tactics, usually involve providing information to independent media sources in the
hope of gaining favorable coverage. It also involves a mix of promoting specific products, services and events and
promoting the overall brand of an organization, which is an ongoing tact.
Public Relation Tools include-

1. Press release: A press release is an announcement of an event, performance, or other newsworthy item that is
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issued to the press by a public relations professional of an organisation. It is written in the form of a story with an
attractive heading so that the media quickly grasps and circulates the message through newspapers/radio/television/
internet.
2.
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Press Kits: It is a comprehensive package of information outlining a company’s products and services most
frequently sent to members of the press. It includes a brief company biography information of senior management
comments from customers Reprints of newspaper and magazine articles Photos of products
3.
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Brochures: It is a booklet published by the organization which contains the organization’s background, its ethics,
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vision, mission, its past, present and future projects, its USP, etc. Eg: brochure given to new employees to give them
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a gist of the organization.
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4. Newsletters: It is a printed publication produced at regular intervals focusing on a particular set of people. The
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content of a newsletter is presented in a writing style that is less formal and letter-like. For example, a newsletter
published by a college consists of information about activities conducted during a particular period, special achievements
5.
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by students or teachers, etc.
Events and Press support: Special events are acts of news development. The ingredients are time, place, people,
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activities, drama, showmanship; one special event may have many subsidiary events, such as luncheons, banquets,
contests, speeches, and many others as part of the build up.
6.
7.
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Conferences and Seminars: Conferences and seminars are conducted for making people aware about the
organization. For example travel companies generally call prospective clients and offer travel packages. The members
are contacted through telephones and asked to attend seminar.
Websites: A website acts as a window for the outside world to know an organization. So it is designed not just to
serve as a resource for members, also to present a positive message to nonmembers who are browsing through.
ROLE OF ‘PR’ IN AN ORGANISATION

a) Smooth functioning of business and achievement of objectives.
b) Building corporate image that affects favorably on its products. – Up keep of parks, gardens, sponsoring sports
activities etc.
c) Build interest in the established product and help in launching Products.
d) Establishing positive image of products facing adverse publicity. For example, soft drink majors- Pepsi, Coco-cola
was subjected to a controversy that there were pesticides found in the samples collected from different areas. In
this situation, the companies attracted severe criticism from various sectors like consumers, investors, government
etc. This called for public relations exercise so that damage control could be done.
e) It acts as a supplement to advertising in promoting (new and existing) products.
Basis Advertising Personal selling

Mode of Advertising is an impersonal form of Comm. Advertising is a personal form of communication.
Comm.
Nature of It involves transmission of standardized messages, In personal selling, the sales talk is adjusted
message i.e. same message is sent to all the customers keeping view customers background & needs.
Flexibility Advertising is inflexible as the message can’t Personal selling is highly flexible, as the message
adjusted to the needs of the buyer. can be adjusted.
Reach It reaches masses i.e. a large number of people Only a limited no. Of people can be contacted be
can be approached. cause of time & cost considerations.
Economy In this the cost per person reached is very low. The cost per person is quite high in the case of
personal selling.
Duration Advertising cover the market in a short time. Personal selling cover the market in a long time.
Media used Advertising makes use of mass media such Personal selling makes use of sales staff, which
television, radio, newspaper & magazines. has limited reach.
Feedback It takes direct feedback marketing research efforts It provides direct & immediate feedback sales
are needs to judge customers’ reactions to persons come to know about the customer’s
advertising. reactions immediately
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CH-1
MULTIPLE CHOICE QUESTIONS(MCQ)
1. Rama calls her friend Rita and requests her to c) Transportation packaging d) None of the above
sell one of her paintings to Rama's mother. In 14. The channel facilitates the direct link between
this transaction who is the marketer? the manufacturer and the customer
a) Rama b) Rita c) Both d) None a) Zero level channel b) One level channel
2. When you go out for dinner in as restaurant, who c) Two level channel d) Multi-level channel
will be considered as the marketer? 15. Manufacturer uses wholesalers and retailers to
a) The restaurant owner b) You distribute goods to the customers. Which chan-
c) Both d) None nel of distribution is the manufacturer using ?
3. Which concept of marketing emphasis on avail- a) Zero level channel b) One level channel
ability and affordability of the product? c) Two level channel d) Multi-level channel
a) Selling concept b) Production concept 16. Which of the following is not part of indirect dis-
c) Product concept d) Marketing concept tribution channels
4. The marketing concept focuses on persuading a) Zero level channel b) One level channel
and convincing customers to buy the products c) Two level channel d) Multi-level channel
a) Selling concept b) Production concept 17. It is an impersonal and paid tool of promotional
c) Product concept d) Marketing concept mix
5. The marketing concept evolved as a result of self a) Publicity b) Personal selling
regulation of social responsibilities by abusiness c) Advertising d) Sales promotion
organisation 18. Publicity refers to :
a) Marketing concept b) Product concept a) Non paid form of impersonal communication
c) Societal marketing concept b) Paid form of impersonal communication
6.
d) None of the above
The marketing concept which aims to increase
profits from economies of scale 19. Y
c) Non paid form of personal communication
d) Paid form of personal communication
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‘Buy three get one free’ is an example of
a) Marketing concept b) Product concept
c) Societal marketing concept
d) Production concept 20.
c) Rebate
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a) Quantity gift
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b) Discount
d) Product combinations
Buy ‘LED Television and a DVD player’ for
7. The function of marketing informs about needs
and wants of consumers
a) Market planning
CA Rs.62,500. This is an example of :
a) Quantity gift b) Discount
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c) Rebate d) Product combinations
b) Customer support services (c) Promotion 21. Shop for Rs.2,500 and get a coupon worth Rs.250
8.
a) Product
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d) Gathering and Analysing information
This is not an element of marketing mix
b) Price
free. This is an example of
a) Lucky draw b) Product combinations
c) Assigned and assured gift d) Usable benefit
9.
c) Place
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‘Colgate’ is a
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a) Generic name of a product
d) Advertising 22. ‘Sale upto 50%’ is an example of which sales pro-
motion technique ?
a) Discounts b) Rebates
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b) Brand name of a product
c) Brand mark of a product d) None of the above
’Ambi Pur’, ‘Duracell’, ’Pantene’ etc. are differ-
ent brands of products manufactured by
(a) Hindustan Unilever Ltd b) Tata
23.
c) Quantity gift d) None of the above
Which of the tools of public relations describes
the financial activities of the company?
a) Press Release
c) Annual Reports
b) News Letter
d) Press Kit
c) Procter and Gamble 24. Word Market has come from the Latin word ___
d) Godrej Consumer Products Ltd. a) Matico b) Marcatus
11. A box containing 20 small boxes of chocolates is c) Marketo d) Marketio
an example of 25. The Basic role of marketer is to _____________
a) Primary packaging b) Secondary packaging a) Earn more and more profits
c) Transportation packaging d) None of the above b) Identify a need and fill it
12. The packaging of bread you purchase from a lo- c) Advertise only d) Sell the product
cal bakery is an example of 26. Scope of ____ is limited but scope of ___ is wider
a) Primary packaging b) Secondary packaging a) Marketing, Publicity b) Selling, Manufacturing
c) Transportation packaging d) None of the above c) Marketing, Selling d) Selling, Marketing
13. The level of packing used to present a gift to your 27. ________ Activities start after the product has
friend on his birthday been developed
a) Primary packaging b) Secondary packaging a) Marketing b) None of these
c) Selling d) Publicity ponents necessary for storage and transportation.

28. Which of the following is not a function of mar- a) None of these b) Primary package
keting? c) Transportation package d)Secondary package
a)Gathering and analysing market information 43. Which of the following is a function of packag-
b) Bending the customers according to product ing?
c) Marketing Planning a) Product identification b) Product protection
d) Product designing and development c) All of these d) Product promotion
29. SWOT Analysis is a strong part of __________. 44. Airtight containers and packets used for chips,
a) Marketing b) Selling biscuits and jams etc., are the example of
c) Publicity d) None of these a) Product promotion b) Product identification
30. Which of the following starts from (starting point) c) Product Protection d) Product differentiation
factory_______ 45. ______________ refers to designing the label to
a) All of these b) Selling concept be put on the package
c) Production concept d) Product concept a) Labelling b) Branding
31. Which of the following is concerned with the c) Packaging d) Pricing
?Quality performance of a product? 46. Which of the following factor affects the price de-
a) Product concept b) Marketing termination
c) Selling concept d) Production a) All of these b) Demand
32. Marketing mix is the set of the ____________ c) Product cost d) Government & legal regulations
a) Marketing tools b) Selling tools 47. Which of the following is a direct channel of dis-
c) Publicity tool d) Production tools tribution?
33. Which of the following is the part of marketing a) Manufacturer to customer
mix? b) Manufacturer, retailer, customer
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a) Price b) Product c) None of these
c) Place and Promotion d) All of these d) Manufacturer, wholesaler, retailer, customer
34. Under marketing mix which of the following is
not a part of “Product”?
a) List price b) Brand name
48.
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of channel of distribution?
a) Trade mark M
Which of the following will not affect the choice
b) Competitive factors
35.
c) Design d) Quality
Which of the following is not concerned with the
A
49.
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c) Market factors d) Environmental factors
Manufacturer --- Wholesaler ---- Retailer ----
Customer, this distribution network is adopted
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? Price??
a) Advertising b) Margins for ______
36.
c) List price
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d) Discounts
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Which of the following is not a part of ?Place and
Promotion??
J 50.
a) Perishable goods
c) None of these
b) Consumer goods
d) Online goods
Which of the following is a good quality of a good
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a)Personal selling b) Warranties salesperson?
c) Advertising d) Sales Promotion a) Mental quality b) Communication skills
37.
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Providing information to the customers about
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product, its features and quality etc., are part of :
c) All of these d) Honesty
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a) None of these b) Pricing
c) Promotion d) Production
38. Which of the following is a BRAND NAME?
a) Woodland b) All of these
c) Asian Paints d) Nike
39. _________ refers to the act of designing and pro-
ducing the container or wraper of a product. MCQ Solutions
a) Packaging b) Copyright 1. a 2. a 3. b 4. a 5. c 6. d 7. d
c) Trade Mark d) Brand name 8. d 9. b 10. c 11. c 12. a 13. b 14. a
40. ____________ refers to the product’s immedi- 15. c 16. a 17. c 18. a 19. a 20. d 21. c
ate container. 22. a 23. c 24. b 25. b 26. d 27. c 28. c
a) Primary Package b) None of these 29. a 30. a 31.a 32. a 33. d 34. a 35. a
c) Transportation package d) Secondary package
36. b 37. c 38. b 39. a 40. a 41. d 42. c
41. Secondary package refers to ______________.
a) First layer of protection b) Transportation package 43. c 44. c 45. a 46. a 47. a 48. a 49. b
c) Immediate container 50. c
d) Additional layers of protection
42. ____________ refers to further packaging com-
NCERT - VERY SHORT QUESTIONS/ ANSWERS

1. It is a process of exchange of goods between producers and consumers. Identify the process.
Marketing.
2. State any three aspects of marketing.
a) What is a market b) What can be marketed c) Who can be a marketer.
3. Define ‘market’ as the traditional concept.
Traditionally, market is defined as ‘a place where buyers and sellers gather to enter into transactions involving the
exchange of goods and services’
4. State the various categories of a traditional market.
a) Geographic market b)Buyer-wise market c) Sales Volume market d) Product market.
5. Give examples of (i) Geographic market (ii) Buyer-wise market.
Geographic market examples : Domestic market and International market
Buyer wise market : Consumers market and Industrial market.
6. Define ‘market’ as the modem concept.
The modem concept defines market ‘as a set of actual and potential buyers of a product or service’. It includes the
product or service available for resale and all the people who are willing to purchase the same for a price.
7. What is the traditional approach to the concept of marketing?
The traditionally approach defines marketing as ‘performing business activities that direct flow of goods and services
from producers to consumers’
8. State two factors which makes marketing a ‘social process’.
a) It requires interaction with people b) It involves persuading the other individual to act in a specific manner.
9. Give an example to explain ‘marketing is a social process’.
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A salesperson visits customers to demonstrate his/her products and explain them how the special features or benefits
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of product meets their needs and wants. In a way he/she persuades the customer to buy the product.
How is a need different from a want?
11.
shirt’ is a want.
State four features of marketing. E
A need is for a product but a want is for a specific product. For example, ‘a shirt to wear’ is a need but a ‘Raymond's
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a) Satisfies needs and wants
c) Provides customer value
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d) Exchanges mechanism.
A
12. State the main objective of marketing.
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To earn profit while satisfying the needs and wants of consumers.
13.
14. J
What is market offering?
It refers to offering a product which satis?es the needs and wants of the potential customer.
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Give an example of ‘Customer Value’.
15.
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Free replacement ; added quantity ; discounted rate ; additional feature etc.
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Define ‘exchange mechanism’.
Exchange mechanism is a process through which individuals or organisations exchange goods and services either for
16.
17.
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money or something considered valuable.
State any two conditions necessary to initiate exchange.
a) There must be a buyer and a seller
What type of products can be marketed?
b) Both parties must be capable of offering something to each other.
A product which is a bundle of utilities or a source of satisfaction and is able to satisfy human needs and wants can
be marketed.
18. Who is a marketer?
A marketer is a person or an organisation who provides goods or services to customers with an intention of satisfying
their needs and wants.
19. Under what circumstances a buyer becomes a marketer?
If the buyer plays an active role in persuading the buyer to sell his / her products then the seller becomes a marketer.
20. State the definition of ‘marketing management’ as given by “Philip Kotler”?
Philip Kotler defines marketing management as "the art and science of choosing target markets and getting, keeping
and growing customers through creating, delivering and communicating superior customer value management".
21. Is marketing same as selling?
No, marketing performs variety of functions like planning, pricing, promoting & distributing product that satisfies
customer's need whereas selling is restricted to transferring ownership of goods from seller to buyer.
22. Distinguish between ‘selling concept’ and ‘marketing concept’ of marketing management on the basis of
main focus.
The main focus of ‘marketing concept’ is to achieve maximum satisfaction of customer’s needs and wants whereas
the main focus of ‘selling concept’ is to transfer ownership of the goods to consumers or users.
23. State the main focus of ‘production concept’.
Production concept focuses on achieving production and distribution efficiencies.
24. How does production concept benefit business?
Production concept suggests that the organisation must produce goods at a large scale, as a result business benefits
from economies to scale, reduced cost of production and increased profits.
25. State the main focus of a firm following ‘product concept’ of marketing.
A firm which follows the ‘product concept’ of marketing focuses on the quality, features an usage of the product.
26. State two factors which led to the evolvement of ‘product concept’ of marketing.
a) Increased supply of reasonably priced goods b) Survival and growth in the long run.
27. What is the difference between the production concept and the product concept?
Production concept focuses on mass production of goods at reasonable price and product concept focuses on
production of quality goods.
28. Explain the main objective of ‘product concept’ of marketing.
Main objective of ‘product concept’ of marketing is continuous improvement in the quality and addition of.new
features to make the product more attractive.
29. Name the concept which suggests that customers should be convinced and motivated to buy products.
Selling Concept.
30. State the factors which led to evolvemerit of ‘selling concept’.
a) Increase in number of sellers selling similar products b) Tough competition among sellers.
31. What should be the focal point of decision making of an organisation following ‘marketing concept’ ?
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Customer satisfaction.
32. State any two pillars of ‘marketing concept’.
33.
a) Identification of target market or target customers
b) Understanding the needs and wants of target customers.
Identify the main focus of ‘Societal marketing concept’.
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34.
Customer satisfaction and Social welfare.
State any two functions of marketing management.
A D
Gathering and analysing market information (ii) Product development and designing
35.
C
What purpose does gathering and analysing market information serve ?
A
It collects information regarding needs, priorities and preferences of customers so that the business can take decision
36.
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to pursue the best opportunity.
What is grading ?
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Grading refers to classifying products into different groups on the basis of some of its important characteristics like
size, quality, etc.
37.
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Define ‘Standardisation’.
Standardisation is a process of producing goods of predetermined speci?cations to provide uniformity and consis-
tency to the output.
38.
39.
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What type of information does a label provide ?
Label provides information about the product like manufacturing date, expiry date, ingredients, directions to use,
manufacturer's address etc.
What is the role of a brand name ?
Brand name gives an identity to a product and distinguishes it from competitor’ s products.
40. How does branding benefit a business ?
Branding builds company's image, customer's loyalty and promotes sales in the long run.
41. Customer Support Services are considered to be the key to marketing success of an organisation in
modern days. Explain how ?
Customer Support Services help business to maintain good relationship with its existing customers, get repeat sales
and develop brand loyalty for the product.
42. Give three examples of Customer Support Services.
a) After sales services b) Maintenance services c) Credit procurement services.
43. State any two factors which affect pricing of a product.
a) Income level of target customers b) Competitors’ prices.
44. What is marketing concerned with?
Marketing is concerned with exchange of goods and services from producers to consumers (or users) in such a way
that maximises the satisfaction of customer needs.

45. Define marketing as a social process.
Marketing is the process of exchange of goods and services for money or for something of value to them.
46. Give two misconceptions of marketing.
Some people believe that marketing is the same thing as ‘merchandising’ (or designing a product) or ‘selling’ (which
focuses on converting product into cash).
47. What is the purpose of marketing?
To generate customer value at a profit.
48 State any_two pillars of marketing concept.
a) Understanding needs and wants of customers b) Satisfying customer needs better than competitors.
49. What is meant by marketing management?
Marketing management is the art and science of choosing target markets and getting, keeping and growing custom-
ers through creating, delivering and communicating superior customer values of management.
50. Which concept of marketing suggests that organisation should earn profit through customer satisfaction
and social welfare?
Societal marketing concept
51. Which marketing management philosophy suggests that the organisation should earn profit through
consumer satisfaction?
Marketing concept
52. Name concept of marketing suggests that organisation should earn profit through volume of production?
Production concept
53. What is meant by product concept of marketing?
Potential exchange would be realised when products are of high quality because customers favour high quality
products.
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54. "Profits could be maximised by attracting and persuading customers to buy the product." Identify the
concept of marketing management.
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Selling concept
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55. "Identify needs and wants and fill them", “Create products and sell them” are the two important con-
cepts of marketing management. Identify them.
D
C
” Create products and sell them" — Selling concept
A
"Identify needs and wants and fill them” — Marketing concept
56. Ruchi is General Manager of a company producing toys. She believes in product concept of marketing.
What will be her marketing strategy?
I A
Ruchi will focus on continuous improvement in the quality of the toys and incorporating new features for improve-
ment.
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57. What is the focal point of decision-making in the organisation pursuing marketing concept?
Satisfaction of customer needs
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58. Why is gathering and analysing market information necessary?
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To identify the needs of customer and to take decision regarding what opportunity can be best pursued by the firm.
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59. Define ‘Standardisation’ as a function of marketing.
Standardisation refers to producing goods of pre-determined specifications, which helps in achieving uniformity and
consistency in the output.
60. Define ‘Grading’ as a function of marketing.
Grading is the process of classification of products into different groups on the basis of some of its important
characteristics such as quality, size, etc.
61. Why is developing customer support services considered to be the key to marketing success in modern
days?
Because customer support services prove very effective in bringing repeat sales from the customers and developing
brand loyalty for a product.
62. Why is ‘price’ an important factor affecting the success or failure of a product in the market?
Because the demand for a product is related to its price. Generally, lower the price, higher would be the demand for
the product and vice-versa.
63. What are the important decisions taken by a marketer in respect of pricing of products?
a) Setting the pricing objectives b) Determining the pricing strategies
c) Determining the price d) Changing the prices.
64. Name the four methods of promotion.
Advertising, personal selling, sales promotion and public relations.
65. What are the factors affecting the decision regarding what combination of various elements of promotion
is used by a firm?
a) Nature of market b) Nature of product c) The promotions budget c) Objectives of promotion.
66. Define ‘Promotion mix’.
Promotion mix refers to the combination of promotional tools used by an organisation to achieve its communication
objectives, e. g. advertising, personal selling, sales promotion and public relations.
67. What are the two major decision areas under ‘Physical distribution’ function of marketing?
a) Decision regarding channels of distribution (wholesalers, retailers, etc.) to be used.
b) Physical movement of the products from producer to the consumers (or users).
68. Define marketing mix.
Marketing mix is the set of marketing tools that the firm uses to pursue its marketing objectives in the target market.
4 P's of marketing are — product, price, place and promotion.
69. Name term used to describe the combination of variables chosen by a firm to prepare its market offering.
Marketing mix.
70. Define a product.
Product means goods or services or ‘anything of value’, which is offered to the market for exchange.
71. Enumerate the important product decisions.
The important product decisions include deciding about the design, features, quality, packaging, labelling and brand
name of the product.
72. Name the element of marketing mix which affects the revenue and profits of a firm.
Price
73. Enumerate the pricing objectives of a firm.
a) Profit maximisation b) Surviving in a competitive market c) Obtaining market share leadership
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d) Attaining product quality leadership.
74. Name the element of marketing mix which is concerned with making the goods and services available at
the right place.
Place or Physical distribution.
75. What is meant by direct channel or zero level?
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A D
Direct channel means the arrangement wherein goods are made directly available by the manufacturers to consum-
ers without involving any intermediary, e. g., internet selling, mail order selling, etc.
76. What is the most commonly used distribution channel for most consumer goods?
Manufacturer -> Wholesaler -> Retailer -> Consumer.
77. Enumerate any two methods of direct selling.
A C
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a) Selling goods through own retail outlets (e. g., McDonald's, Bata)
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b) Selling goods through own sales force (e.g., Eureka Forbes).
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78. When is three level channel of distribution used?
Three level channel of distribution (Manufacturer -> Agent -> Wholesaler -> Retailer -> Consumer) is used when
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the manufacturer carries a limited product line and has to cover a wide market. An agent in each major area is
appointed who, in turn, contacts the wholesalers.
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79. How does ‘Product complexity’ affect the choice of channels of distribution?
In case of complex products requiring technical details (e. g., engineering products), shorter channels are preferred
but if the product is non-complex, it is sold through long channels, involving number of intermediaries.
80. What is meant by trademark?
A brand that is given legal protection against its use by other firms is called trademark.
81. How does packaging act as a silent salesman?
The attractive, colourful and innovative packing attracts the customers to buy the product, e. g., Haldiram's Sweets
and Namkeens. Therefore, packaging is considered a silent salesman.
82. Mention any two functions of packaging.
a) Product protection b) Product identification
83. What is transportation packaging?
Transportation packaging refers to further packaging necessary for storage, identification or transportation.
84. Give two examples of brand name.
a) Asian Paints b) Uncle Chipps
85. What is meant by secondary packaging?
It refers to additional layers of protection that are kept till the product is ready for use, e. g., a Denim shaving cream
tube usually comes in a card board box.
86. Give two advantages of branding to the customers.
a) Helps in product identification b) Status symbol .

87. At which level of packaging, the immediate container is referred to?
Primary package
88. Give an example of primary package (immediate container).
Plastic packet of undergarments
89. Mention any two functions of labelling.
a) Describe the product and specify its contents. b) Help in promotion of products.
90. What is meant by ‘generic name’ of a product?
Generic name refers to the name of the whole class of the product. For example, a book, a wrist watch, camera, etc.
91. What is ‘Brand mark’? Give an example.
That part of a brand which can be recognised only but carmot be spoken is called brand mark, e.g., Devil of Onida.
92. Give two advantages of branding to the marketers.
a) Enables making product differentiation b) Helps in advertising and display programmes.
93. Give two characteristics of a good brand name.
a) The brand name should be short, e. g., LG
b) The brand name should suggest the product's benefits and qualities, e. g., Hajmola.
94. Define advertising.
Advertising implies any paid form of non-personal presentation or promotion of ideas, goods and services by an
identified sponsor.
95. Mention any two features of advertising.
a) Paid form of communication b) Non-personal form of communication.
96. What is sales promotion?
Sales promotion refers to short-term incentives, which are designed to encourage the buyers to make immediate
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purchase of a product or service.
97. What is personal selling?
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customers for the purpose of making sales. It is a personal form of communication.
98. Enumerate any two characteristics of personal selling. M
Personal selling involves oral presentation of message in the form of conversation with one or more prospective
a) Personal form b) Development of relationship
A D
99. A salesman approaches you to promote the sales of a water purifier. Which communication tool is the
marketer using by sending a salesman at your doorstep?
Personal selling
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100. Name the most commonly used non-personal tool of promotion which is paid for by the marketer.
Advertising
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101. What arguments do the opponents of advertising give when they say that the expenditure on advertising
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is a social waste’?
Advertising adds to cost, undermines social values, etc.
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102. “A toy car free with Maggi Noodles” is an example of one of the techniques of sales promotion. Name
the technique.
Product combinations
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103. "Automobiles Ltd. offered to sell their new bike at about ? 4,000 less than the usual price" is an example
of one of the techniques of sales promotion. Name the technique.
Rebate
104. "50 grams extra with this pack of toothpaste” is an example of one of the techniques of promotion mix.
Name the technique.
Quantity gift
105. ‘Buy three get one free’ is an example of one of the techniques of promotion mix. Name the technique.
Quantity gift
106. Identify the method of sales promotion in the following cases:
a) A customer gets Rs.5 off on return of an empty wrapper while making a new purchase of the same
product.
b) Scratch a card and get a gold coin with the purchase of a cold drink.
c) A Hotel's offer of "Take a 2 Nights 3 Days Package at the Hotel and Get an Extra Night Stay at Just
Rs.500.”
d) Purchase goods worth Rs. 50,000 and get a holiday package worth 10,000 free.
a) Refund b) Instant draws and assigned gift c) Quantity gift d) Usable benefit
107. Give the meaning of Public Relations.
Public relations (PR) includes a variety of programmes to promote and protect a company's image or its products.
108. Enumerate any two public relations tools.
a) News b) Events, e. g., seminars, contests, etc.
109. Give three examples of promotional techniques used to promote products.
a) Advertising b) Sales Promotion c) Personal selling.
110. Name the function of marketing which initiates transfer of ownership title of goods.
Physical distribution.
111. State the factors to be considered while deciding transportation mode.
a) Nature of product b) Location of target customers c) Cost of transportation.
112. ‘Storage and warehousing’ a function of marketing is performed by various agencies. Name any two such
agencies.
a) Manufacturers b) Wholesalers c) Retailers.
113. Marketing plays an important role in a business firm. State any two ways marketing helps a firm.
a) It helps firms to decide what to produce and sell b) It helps firms to fix price of their products.
114. Define marketing mix.
Marketing Mix is described as the set of marketing tools that a firm uses to pursue its marketing objectives in a target
market.
115. State the various tools of a marketing mix.
The four tools (4 P's) of a marketing mix are : a) Product b) Price c) Place and d) Promotion.
116. What is a ‘product mix’ ?
Product mix refers to all important decisions related to product such as quality of product, packing, labelling and
branding ofthe products.
117. Name the type of product which requires maximum time and effort to purchase.
Speciality products.
118. State two characteristics of durable goods.
a) They are used for a longer period of time
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b) They require aggressive marketing and selling efforts.
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119. State any two characteristics of a good brand name.
a) It should be short and easy to remember and recognise. b) It should relate to the product or its features.
120. Give two advantages of branding to marketers.
A
a) It differentiated similar products produced by different manufacturers.
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C
b) It helps in differential pricing.
121. Mention the various levels of packaging.
a) Primary packaging
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122. Why a product may require secondary packaging ?
A
b) Secondary packaging c) Transportation packaging.
A product may require secondary packaging a) To ensure product safety b) To attract customers
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123. How does packaging promote health and sanitation ?
Packaging protects the product from dirt and getting adulterated.
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124. State the various functions perfonned by packaging.
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a) It helps to identify the product b) It protects the product
125. Define ‘Floor Price’.
c) lt helps in product promotion.
It is the minimum price at which a product is launched or sold in the market.

126. State the factor which a buyer considers while paying for a product.
The utility of the product.
127. Define ‘price mix’.
Price mix refers to important decisions related to price of a product such as factors affecting price, discount to be
offered and term of credit to be allowed to customers.
128. State any three pricing objectives.
a) Profit maximisation b) Achieving leadership in market share
c) Surviving in a competitive market.
129. What are the important decisions a marketer takes while pricing the products ?
a) Setting the pricing objectives b) Determining the pricing strategies
c) Determining the prices d) Changing prices
130. What is a place mix ?
Place mix refers to all decisions that are related to physical distribution of goods and services.
131. State two important decisions a firm has to take under ‘physical distribution’ function of marketing.
a) Decision regarding intermediaries or channels of distribution to be used to distribute goods.
b) Means of transportation for physical movement of goods from manufacturer to consumer.
132. Define channels of distribution.

Channels of distribution are the intermediaries like agents, wholesalers or retailers who act as link between manufac-
turers and consumers.
133. State two advantages to business for using channels of distribution.
a) They establish a wide marketing network for distribution of goods.
b) They provide authentic market information to the manufacturers.
134. Channels of distribution create utilities for consumers. Name the various utilities created.
a) Possession b) Place c) Time.
135. Differentiate between direct and indirect channels of distribution.
Direct channel refers to the arrangement in which manufacturers sell their products directly to the consumer.
Indirect channels refer to a distribution network consisting of intermediaries used by manufacturers to sell their
products.
136. Is channel ‘distribution same as physical distribution?
No, channel distribution establishes a market network whereas physical distribution ensures physical movement of
goods through the network established by channels.
137. State the main objectives of ‘promotion’ as an element of marketing.
a) Inform potential customers about the product and b) Persuade them to purchase the product.
138. What is a ‘promotion mix’?
Promotion mix refers to various promotional tools or selling techniques used by a marketer to communicate with
target customers.
139. State the various elements of ‘promotion mix’?
a) Advertising b) Personal Selling c) Sales Promotion d) Publicity.
140. State the factors which affect the decision of ‘promotion mix’.
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a) Nature of product b) Type of target customers.
c) Promotions budget d) Objectives of promotion etc.
141. Name the promotional tool which is an impersonal fonn of communication.
Advertising.
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142. Opponents of advertising say that it is a ‘social waste’. What is their argument for this? M
and undermines social values.
A
143. State one advantage of personal selling over advertisements. D
Opponents say that advertising is a social waste because they feel that it adds to cost, multiplies the needs of people
ing is an impersonal form of communication.
A C
Personal selling is a personal form of communication facilitating direct contact with the customer whereas advertis-
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144. What is meant by ‘sales promotion’?
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Sales promotion refers to short term incentives, which are offered to stimulate the customers to make immediate
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purchase of a product or service.
145. Define personal selling.
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Personal selling is a personal form of communication used to inform customers about the product and persuade them
to buy the product.
146. State the two qualities a good salesman must possess.
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a) Good communication skills b) Sound technical knowledge about the product and its features.
147. Most companies organise various promotional activities to promote their product. Identify the promo-
tional tool and give any three examples.
Sales Promotion. Examples of sales promotion tools are : sales contest, free gifts, cash discounts, free
samples.
148.‘Buy one get one free’ is an example of sales promotion technique. Identify the technique.
Quantity gift.
149.Define ‘publicity’ a promotional tool.
Publicity refers to spreading information about the products or services of a company by unidentified sponsors which
is usually ‘media’.
150. Name the promotional tool which uses media to sprad information about the company and it’s products.
Publicity.
151. What is the role “Public Relation” department in a organization?
It generates positive publicity and improves public image of the organization.
152. State any three tools used by the PR department of an organization to build company’s reputation.
a) Press Release b) Conferences, Workshops or Seminars c) Organizing events with public involvement.
NCERT - HOTS
1. “All Advertising is a Social Waste." Comment.

‘All advertising is a social waste.’ This view is based on the following arguments :
a) Undermines social values: Advertising promotes materialism and multiplies needs. It induces consumers to buy
the latest products. For example, a person having LCD TV may be induced to buy LED TV.
b) Encourages sale of inferior products and makes false claim about the quality of a product, e.g. ” Ek bound
lage, saare kapde dhoye.”
c) Confuses the buyers rather than helps since so many ads of a single product, say, television — LG, Sony,
Samsung, etc. Each brand claims that it is the best.
d) Some advertisements are in bad taste. For example, ads showing women running after a man because he is
using Wildstone perfume.
e) Adds to costs. Advertisement costs are passed on to the customers in the form of higher price.
Most of the criticisms against advertising are not entirely true.
a) Advertisements only inform the customers, but the final choice of buying or not lies with the customers only.
Today's customer is smart enough to know and select the most suitable brand for him/ her.
b) The objection to sale of inferior goods is not correct. Every one cannot afford to buy superior quality expensive
products. For example, those who cannot afford to buy Woodland or Reebok shoes have to satisfy themselves
with local brands only.
c) Advertisements increase the demand for product which brings increase in sales and this leads to increase in
production. So, the per unit cost of production decreases and thus, the increase in cost due to expenses on
advertisement gets compensated.
Conclusion: Expenditure on advertising is not a social waste, rather it adds value to the social cause by giving a boost
2.
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to production and generating employment. It becomes wasteful and objectionable only when it is used unscientifically
and dishonestly.
It is necessary that goods and services must be made available to the customers at the right place, in the
right quantity and at right time.
a) Name and explain the concerned element of Marketing Mix given above.
b) Explain the components of this element.
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a) Place / physical distribution
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The physical handling and movement of goods from place of production to the place of distribution is referred to
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as physical distribution.
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Elements of Physical distribution/ Place:
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a) Transportation: It is the means of carrying goods and raw materials from the point of production to the point of
sale. It is important because unless the goods are physically made available, the sale cannot be completed.
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b) Warehousing: It refers to the act of storing and assorting products in order to create time utility in them. Its
purpose is to arrange placement of goods and provide facilities to store them. The need for warehousing arises
because there is a time lag between the production (or procurement) of goods and their sale (or use).
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c) Inventory control: Managing the level of inventory (or stock) of goods is an important function. Higher the level
G of inventory, higher will be the level of service to customers but the cost of carrying the goods (i;e. storage cost,
interest on capital, etc.) will also be high because of funds being blocked up in the stock.
d) Order Processing: A good physical distribution system should provide for an accurate and speedy processing of
orders, in the absence of which goods would reach the customers late or in wrong quantity or specifications.
3. State any five characteristics of a good brand name.
Qualities of a good brand name: ( any five)
a) It should be short and easy to pronounce, spell, recognize and remember.
b) It should suggest the product benefits and qualities
c) It should be distinctive.
d) It should be adaptable to packaging and labelling requirements.
e) It should be versatile to accommodate new products.
f) It should be capable of being registered and protected legally.
g) It should have staying power.
h) It should not have different meanings in different languages and cultures.
4. Explain the four important elements of marketing mix.
The four important elements of marketing mix are:
a) Product Mix: Product mix relates to decisions regarding planning, developing and producing the right type of
products and services for the consumers.It includes branding, labelling, trademark and packaging.
b) Price Mix: Price Mix involves different Pricing Methods, Pricing strategies, Pricing Policies and Price Changes.
c) Place Mix: Place or Physical Distribution mix includes activities that make firm‘s products available to the target
customers. It consists of all the activities involved in transferring ownership and physical possession of the prod-
uct to the consumers.
d) Promotion Mix: Promotion mix consists of all the activities aimed at persuading customers to buy the product
through advertising, personal selling, sales promotion and publicity.
5. What is meant by 'Packaging'? State any four functions of packaging.
Packaging refers to the act of designing and producing the container or wrapper of a product.
Functions of packaging: (Any four)
a) It helps in product identification.
b) It helps in protection of the product from spoilage, breakage, leakage damage etc.
c) It facilitates use of the product to the consumers through appropriate sizes and shapes.
d) It helps in promotion of the product as a good package attracts the attention of the people at the time of purchase.
e) It helps in preventing adulteration as the product is properly packed.
6. ‘You don't close a sale, you open a relationship, if you want to build a long term successful enterprise.‘
Identify the communication tool used by the marketer. State any two features of this communication tool.
Personal selling
Features of personal selling are:
a) It involves a direct face to face dialogue.
b) It allows salespersons to develop personal relationships with prospective customers.
7. There are a number of factors that affect the fixation of price of a product. State any five such factors.
Factors that affect the fixation of price of a product are: (Any five)
a) Product cost determines the minimum level at which the product can be sold.
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b) Utility and demand set the upper limit of the price which the buyer would be prepared to Pay.
c) In lesser competition, the price will tend to reach the upper limit while in free competition;the price will tend to be
set at a lower level.
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d) Government can intervene and regulate the price by declaring the product as an essential product.
e) In case the objective of the enterprise is maximizing profits, obtaining market share leadership or surviving in a
be set higher.
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competitive market, price will be set at a lower level while if the objective is product quality leadership, price will
f) Uniqueness of marketing methods used like distribution system or quality of salesman employed give freedom to
the company in setting the price.
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8. State the factors determining the choice of channels of distribution.
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Factors determining the choice of channels of distribution:
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a) Product related factors include nature of the product, perishability, unit value and degree of complexity of the
product.
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b) Company related factors include financial strength of the company and degree of control of the company on
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channel members.
c) Competitive factors include the policy of the company to go with or be different from the choice of channel
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selected by the competitors.
d) Market related factors include size of market, geographical concentration of potential buyers and quantity pur-
chased.
e) Environmental factors include prevailing economic conditions and legal constraints.
9. What is meant by 'advertising‘? State the role of advertising in marketing.
Advertising is the paid form of non-personal communication about a product by an identified sponser.
Role of advertising in marketing( any four):
a) Advertising helps to create demand by informing the prospective customers about the product.
b) It provides economies of scale as increased demand leads to higher production.
c) It educates consumers by informing about the availability of different products in the market.
d) It generates employment by creating various kinds of jobs to artists, script writers,etc .
e) It improves standard of living by giving information regarding new products and increasing income levels of
people.
f) It sustains the media by acting as a source of revenue.
10. Zoom Udyog, a car manufacturing Co., has started its business with Zoom 800 and slowly launched
Zoom-1000, Wagon-Z, Swy-fy etc. and offered various services like after sale service, availability of
spare parts etc. Identify the element of marketing mix referred here.
Product
11. Radha found a worm crawling out of newly opened tetra pack of a juice manufactured by a reputed com-
pany, 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 consumer activist group to
seek help. The group decidedto help Radha and take measures to impose restrictions on the sale of the
firm's products of the particular batch and urge customers 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.
a) Public Relations
b) Role of Public Relations:
i) Product Publicity: New products require special effort to publicise them. The public relations department
advises the top management that the company can draw attention to new products by sponsoring sports and
cultural events like news conferences, seminars and exhibitions.
ii) Counselling: The public relations department advises the top management that the company can build good-
will by contributing money and time to certain causes like environment, wild life, children's rights, education, etc.
12. The manager of Impact Enterprise, dealing in cosmetics, is facing the problem of poor sales. Suggest the
four promotional measures that he can undertake to improve the sales. Also, name the factors affecting
their choice.
The manager of Impact Enterprise, dealing in cosmetics, should take the following four promotional measures to
improve the sales:
a) Advertising b) Sales promotion c) Personal selling d) Publicity
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Factors affecting choice of promotional tool:
a) Nature of market b) Nature of product c) Promotions budget d) Objectives of promotion
13. Identify and explain any four sales promotion techniques shown in the diagram.
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A D
A C
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Sales Promotion Techniques
a) Rebates: Offering a packet of 5 kg sugar at Rs. 30 less (MRP Rs. 125 at Rs. 95) to clear off excess inventory.
b) Discount: 50% off on Bata shoes.
c) Quantity gift: ‘Buy 2 get 1 free’ offer available on squash of 700 ml (lemon and orange) for Rs.65
d) Product combinations: Get a bar of soap 100 g, MRP 15 free on buying 500 ml toilet cleaner of Rs.50.
14. Identify and explain the three levels of packaging shown in the diagram.
Levels of Packaging:
a) Primary Package (e.g., toothpaste tube). It is the product's immediate container.
b) Secondary Packaging (e.g., a tube of shaving cream in a cardboard box). It is the additional layer of protection
that is kept till the product is ready for use.
c) Transportation Packaging: It refers to further packaging necessary for storage, identification or transportation.
15. A mobile company is launching a new high tech mobile phone in the market. Which department is going
to look into the techniques of promoting it?
Public Relations (PR) Department
16. Identify the Marketing Management philosophy adopted in the following cases:
distributing at large scale and thereby reducing the average cost of production.
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a) Mansi, a shoe manufacturer for school students, decided to maximise her profit by producing and
b) Nisha, a school bag manufacturer decided to improve the product for profit maximisation and thus
added a waterbottle holder to the existing design.
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c) Iasdeep, a dealer in school uniforms, decided to maximise his profit by using different aggressive
promotional efforts.
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d) Amar is engaged in manufacturing of refrigerators. He surveyed the market and found that customers
need a refrigerator with a separate provision of water cooler in it. He decided to launch the same
refrigerator in the market.
17.
a) Production concept
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b) Product concept c) Selling concept
Identify the method of sales-promotion in the following cases:
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d)Marketing concept
a) A mobile company offers a discount of Rs. 1000 to clear off excess inventory.
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product.
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b) A customer gets Rs.5 off on return of an empty wrapper while making a new purchase of the same
c) A Company offers a pack of 1/2 kg of sugar with the purchase of a 5 kg bag of wheat flour.
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a)Rebate
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d) A company offers 40°/o of extra shaving cream in a pack of 500 gms.
e) Scratch a card and get a gold coin with the purchase of a cold drink.
f) Purchase goods worth Rs. 50,000 and get a holiday package worth Rs.10,000 free.
b) Refund c) Product-combination
e) Instant draws and assigned gift f) Usable Benefit / Lucky Draw
d) Quantity-gift
18. ‘Various tools of communication are used by the marketers to promote their products.’
a) Why do companies use all tools at the same time?
b) Name and explain the most commonly used non-personal tool of promotion which is paid for by the
marketer.
c) Which tool of promotion will primarily be used for the following?
i) To promote or protect a company's image or its individual products.
ii) An existing product meant for mass usage by literate people.
iii) To introduce a new product to a particular class of people through door-to-door visits.
iv) To attract attention of the people by using incentives.
a) The companies use all tools at the same time because of the nature of market, nature of product, promotion
budget and objectives of promotion being different at different times.
b) The most commonly used non-personal tool of promotion which is paid for by the marketer is advertising. It is a
paid and non-personal form having an identified sponsor to promote an idea.
c) The tools of promotion used are:
i) Public Relations ii) Advertisements iii) Personal Selling iv) Sales Promotion
19. 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 men-
tioned on the packets that led to many accidents.
a) Identify and explain the important product related decision that was not taken into consideration by
the company.
b) Also, identify any two values which were violated by the company.
a) The important product related decision that was not taken into consideration by the company is Labelling.
It is the process of designing the label and putting it on the package to provide information regarding the product,
its contents, methods of use, etc.
b) Values violated by the company:
i) Concern for safety of human beings. ii) Respect for law (employing children as labour).
iii) Concern / sensitivity for the environment. (any two)
20. As a project work in Business Studies subject, the Commerce students of ‘Creative Public School’
thought of setting up a recycling plant to recycle all the waste papers from the school and prepare regis-
ters and exercise books to be used by the school students. They approached their principal who not only
appreciated the idea of the students but also give her consent for the same. The school also decided to
donate 50% of the revenue generated from the sale of registers and exercise books to a nearby blind
school.
a) State the product related decisions which the children have to take.
b) Suggest any two facfors the children should keep in mind while choosing the right name for their
exercise books and registers.
a) The product related decisions which the children have to take are:
i) Branding ii) Labeling iii) Packaging Y
c) Identify any two values communicated to the society by this project of ‘Creative Public School’.
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ii) It should suggest the benefits and the utilities.
c) Values:
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b) i) The name should be short, easy to pronounce, spell, recognise and remember.
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i) Optimum use of resources—Recycling waste papers and preparing school register and exercise books.
ii) Fulfilling social responsibility - Donating 50% of the revenue generated from the sale of registers and exercise
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books to a blind school.
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21. Ajay was appointed as marketing head of 'Alfa Enterprise‘ manufactures of toothpastes and toothbrushes.
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His target sale was 2,000 units a month. Apart from thinking about various channels of distribution to
achieve the target, he himself started visiting schools in backward areas. He found that even after taking
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various steps and counselling, some school children had not started brushing their teeth. He investi-
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gated and found that they could not afford to buy toothbrush. He started donating 200 toothbrushes and
toothpastes every month to the school.
a) Identify the channel of distribution 'Ajay' would adopt for distribution of toothpaste and toothbrushes
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and justify it by giving one reason.
b) State any two values which Ajay wants to communicate to the society.
a) The channel of distribution Ajay would adopt is Two level channel, i .e., Manufacturer —>Wholesaler —>
Retailer  Customer, because he is distributing consumer goods.
b) Values which Ajay wants to communicate to the society are:
i) Charity ii) Concern for the underprivileged iii) Hygiene
iv) Sensitivity towards health (any two)
22. A company is preparing its policies on fixation of price, credit to customers, payment terms etc. Identify
the element of marketing mix the company is prepating policies etc.
Price Mix
23. Differentiate between branding, brand name, brand mark and trade mark. Also specify significance of
each?
Brand: A brand is a name, term, sign, symbol design or some combination of them, used to identify the products –
goods or services of one seller or group of sellers & to differentiate them from those of the competitors. For
example, some of the common brands are Bata, Lifebuoy, Dunlop, Hot Shot, and Parker. Brand is a comprehensive
term, which has two components—brand name and brand mark. For example, Asian Paints has the symbol of Gattu
on its pack, which is its brand mark.
Brand Name: That part of a brand which can be spoken is called a brand name. For example, Asian paints, Safola,
Maggie, lifebuoy, Dunlop & Uncle Chips are the brand names.
Brand Mark: That part of a brand which can be recognized but which is not utterable is called brand mark. For
example, the Gattue of Asian paints or devil of Onida or symbol of Yogkshma of LIC.
Trade Mark: A brand or part of a brand that is given legal protection is called trademark, the protection is given
against its use by other firms. Thus the firm, which got its brand registered, gets the exclusive right for its use. In that
case, no other firm can use such name or mark in the country.
24. Discuss various levels of packaging and their importance for sale of products?
a) Primary package: It refers to the product’s immediate container. The primary package is kept till the consumer
is ready to use the product e.g., plastic packet for socks.
b) Secondary package: It refers to additional layers of protection that are kept till the product is ready for use,
e.g., a tube of shaving cream usually comes in a card board box.
c) Transportation packaging: It refers to further packaging components necessary for storage, identification or
transportation. For example a toothpaste manufacturer may send the gods to retailers in corrugated boxes
containing 10, 20 or 100 units.
25. Identify the marketing management concept or philosophies in the following :
a) This philosophy states that customer's satisfaction must be within the ethical ecological aspects of
society.
b) This philosophy states that a salesman can manipulate customer with advertising powers and persuasion
techniques.
c) This philosophy states that customer's satisfaction is the pre-condition for realising organisational
goals.
d) This philosophy states that a business can reduce cost of production through economies of scale.
Therefore many businesses opt for mass production.
Y
e) This philosophy states that a business should make efforts to sell to a customer who may not have any
intention to buy the product.
M
customers’ needs and wants.
D E
f) This philosophy states that a business must focus on producing superior quality goods to satisfy
g) This philosophy states that a business should be able to convince the customer that the product the
CA
business has on offer is the one which the customer will need.
h) This philosophy is the result of social responsibilities a business has to undertake.
A
i) This philosophy states that a business produces what a consumer requires.
a) Societal marketing concept b) Selling concept c) Marketing concept d) Production concept
26. J I
e) Selling concept f) Product concept
i) Marketing concept
U
g) Selling concept h) Societal marketing concept
Every customer buys ‘convenient products’ but there are other products whose unique features attract
R
a significant group of people. Identify the product and discuss its features.
Speciality products.
U
Features :
27.
G
a) They have limited demand
c) They are available at selected outlets
b) They are usually expensive
d) They require aggressive sales promotion activities
e) After sales service is very important for these products.
Name the promotional technique used in the following :-
a) Autosales Ltd. launched a new motorbike. To sell the stock of old model they offered Rs.4000 less on
the list price.
b) Buy any five and get three free c) Twelve interest free instalments
d) Free i-pod with every purchase of latest Mac book f) Micromax offered 20% off on the list price
g) Scratch a card and win an assured gift
h) Deposit the purchase invoice and win a chance of holiday in Greece.
i) Buy 5 kg Sugar of MRP Rs.150 for Rs.125
a) Rebate b) Quantity gift c) Full finance @0% d) Product combinations
e) Discount f) Instant draw and assigned gift g) Lucky draw h) Rebate
28. Apple Inc. is about to launch its new iphone. Name the department which will plan the launch. What
activities it will perform before the launch ?
The ’ Public Relations (PR) department will plan the launch process. Just before the launch they will plan
a) A press release or press conference to announce the launch
b) They will also organise a special conference or a workshop for its distributors or sales managers to train them
about the new features of the phone
c) Put hoardings or advertise in the print and audio-visual media.
29. Rohit, a sales manager always has some or the other excuse to postpone meeting with the customer. He
usually reads the product specifications and avoids product’ demonstration. Do you think Rohit is a
‘good salesman’ ? Support your answer with appropriate reasons. What qualities Rohit must inculcate in
himself ?
No, Rohit is not a good salesman he lacks confidence, sound technical knowledge, pleasing personality.
Hint : Discuss in detail the qualities of a good salesman.
30. Why did firms begin to focus on ‘selling concept’ ?
Due to increased competition product quality and availability are not enough to ensure the survival and growth of
firms. Firms have to aggressively sell their products to meet competition and increase their presence in the market.
As a result they have to use a variety of promotional tools to retain existing customers, attract and convince potential
customers.
31. Why did the product improvement become the key to profit maximisation of a firm ?
Product improvement becomes the key to profit maximisation of a firm because with the increase in supply of
products, customers started looking for products which were superior in quality, performance and have better
features. Therefore product improvement in terms of added features or additional functions help to increase sales or
fix higher price.
32. ‘An important task in the marketing of goods relates to designing the label as it provides useful and
detailed information about the product’. In the light of the above statement, draw a label for Tea and
highlight the important information to be provided on it.
TATA TEA
100% Assam CTC Lef Tea.
Packed by : Bharat Industries Pvt. Ltd.
159/21, Rani Bagh, New Delhi
M Y
Contents : Tea
Net Weight : 250 g
Pkd on : January 2015
D E
MRP : $120
Batch no : ABC 4223
Best before : September 2015
CA
33.
J
Customer care : 09873432121
A
For suggestions and feedback contact Bharat21@gmail.com.
I
A tea producer uses reusable packing material -to packs the tea leaves. Customers after consuming tea
34. U
can use the empty pack to store_ other things. Identify the values adopted by the tea producer.
R
a) Optimum utilisation of resources b) Values environment.
A cosmetics manufactdring company claims in their advertisement that their face cream improves the
35.
G U
face complexion. On using it was found incorrect. Here which values are being ignored ?
a) Misleading customers b) Compromising with safety standards.
A commercial unit uses rocks, trees, electric poles, historical movements and walls to advertise its
products. This advertising policy shows which faults of the company ?
a) Harming natural environment b) Disrespect for historical monuments.
36. A soft drink manufacturing company uses dangerous stunts in the advertisements claiming that its drinks
make the user fearless and stronger.
a) In your view what could be the bad effects of this ? b) How it can be stopped ?
a) Endangering life of children and youth in case they imitate the stunts.
b) Intervention either by social organisations or enforcement of rules and regulations related to advertising and
regulations related to advertising.
37. A manufacturer of electronic product produces such products which need special care while using it.
But the company has not given the instructions to consumers. If you are the manager of that company
what steps you would take ?
a) Label the product with proper instructions to use.
b) Guide or instruct customers at the time of purchase of such goods.
38. A company uses promotional schemes like buy one get one free, free samples, free gifts and so on to
boost the sales of its products and to earn higher profits. This results in unnecessary hike in the prices
of the products. In your opinion, is this policy in the interest of society ?
No, it is not in the interest of society as it persuades customers to spend money more than required leading to
extravagancy, increased expenses in the long run leading to increased burden of borrowed money.
39. It is one of the elements of marketing mix which contains one of the most important decisions that a
marketer has to take to promote sales. This decision was taken by Mr. Mukund, Marketing Manager of
Intel Ltd. which facilitated the customers in product identification and hence ensured quality. It also
built up their confidence and help in increasing their level of satisfaction. Apart from this, they provide
educational scholarships for poor children in the society. Identify the element of marketing mix. Name
any two values being emphasised by ensuring quality products for customers and by running an orphanage
home.
‘Product’ is the element of market mix.
Values emphasised are : a) value for customer satisfaction b) social concern c) humanity.
40. Mr. David, working as Sales executive in Mahalaxmi Ltd. possesses good marketing techniques. His
techniques involve oral presentation of message in the form of conversation with prospective customers
for the purpose of making sales.
a) Name the promotional tool used by Mr. David.
b) Identify the values which can be inculcated by using the technique in the above case.
‘Personal selling’ is the promotional tool used by Mr. David
a) Confidence b) Effective public relationship c) Building company reputation.
41. Gupta & Co. is manufacturing cosmetics. They decide to launch a new range of herbal products. As they
are in a hurry, they have tested the products on rats only. The necessary information is missing on the
package. The management also plans to launch a new factory in a tribal area where the required products
are easily available and the labour—men, women and children are available for work at low wages in the
absence of development opportunities and schools.
a) Which values do you find disturbing in the above para ?
Y
b) Will the decision to install a new unit in a tribal area help society ? Highlight the social values involved
in his decision.
M
a) Disrespect for law and society because :
E
i) testing on animals is banned ii) child labour is illegal iii) misleading customers
b) Yes, it will lead to regional development
D
42.
i) Create employment opportunities
CA ii) Raise standard of living ii) Women empowerment

What shopping products have been purchased by you/your family in the last six months ? Make a list
and specify what factors influenced the purchase of each of these products.
example is given below for reference :
J A
Students may choose their own products and state the factors which influenced the purchase of each product. One
I
Purchase of car. Factors influencing the purchase are :
RU
a) Various brands available in the segment of cars . for example Maruti, Honda, Toyota etc.
b) Prices of all the brands in the segment.
c) Mileage and after sales service and spare parts cost.
43.
G U
d) Exchange price offered for the existing car
e) Loan amount and the interest rate offered.
For buyers of consumer durable products, what ‘customer care services’ would you plan as a manager of
a firm marketing new brand of motorcycle ? Discuss.
New brand of motorcycle will require following customer care services :
a) Exchange offer b) Purchase assistance c) Warranty for a specified period
d) After sale services e) Road side assistance f) Financing facilities
44. What information is generally placed on the package of a food product ?Design a label for one of the food
products of your choice.
The package of a food product contains following information :
a) Name and address of the manufacturer b) Manufacturing and expiry date
c) Ingredients of the product d) Directions to use
e) Maximum retail price (MRP) f) Contents of the product
g) ‘Green’ dot if the product is vegetarian and ‘red’ dot if the product is non-vegetarian
h) Net weight of the product.
Hint: Design a label yourself

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XII-BUSINESS STUDIES GA- 1

NOTES - Marketing Management

Important features of Marketing

service from someone, offering the same by giving something in return.

Important conditions for Exchange Mechanism

Q1. What can be marketed?

Difference between Marketing and Selling

d) The purpose of marketing is to generate customer value at a profit.

Societal marketing concept

Elements of marketing mix

These are briefly discussed as follows:

Advantages to the marketers

Factors Determining Choice of Channels

Features of Personal Selling

Qualities of a Good Salesman

Public Relations: Concept

Public Relation Tools include-

ROLE OF ‘PR’ IN AN ORGANISATION

Basis Advertising Personal selling

MULTIPLE CHOICE QUESTIONS(MCQ)

c) Selling d) Publicity ponents necessary for storage and transportation.

NCERT - VERY SHORT QUESTIONS/ ANSWERS

CA b) Gives market offering

that maximises the satisfaction of customer needs.

a) Helps in product identification b) Status symbol .

a) Personal form b) Development of relationship

It is the minimum price at which a product is launched or sold in the market.

132. Define channels of distribution.

ing is an impersonal form of communication.

1. “All Advertising is a Social Waste." Comment.

CA ii) Raise standard of living ii) Women empowerment

example is given below for reference :

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