ESSENTIAL POINTS TO SOLVE CASE STUDIES

Marketing
Marketing is a social process of identifying needs and wants and satisfying them
through created market offering by giving something of value to the customer with
the help of an exchange mechanism.

Important Features of Marketing

1. Needs and wants. The needs and wants of the target market should be
identified.
2. Creating a market offering. The product offered should have the required
features, should be made available at the right place, should have the right
price and should be of requirement to the target market.
3. Customer value. The customer should get more value in comparison to the
price he is ready to pay. It should be of benefit to him/her.
4. Exchange mechanism. Sellers and buyers need a place to meet so that one
can give the product in return of the money paid, and with the will and freedom
involved.

What can be marketed?

Goods, Services, Ideas, People, Places, Information, Property, Events and
Organisations.

Difference between Marketing and Selling Concepts

Basis Marketing Selling

Narrow concept. It is a part of

Nature Wider concept
marketing.

It starts before the product is

Start and End It deals with sharing of possessio

made and continues even after the
one person (Seller) to another (B
product is sold.

Profit Generation Through customer satisfaction Through generation of sales (num

 units sold).

It involves Pull strategy where products It involves push strategy where

Strategy are made according to the needs of the products are sold through persua

potential customers. and selling efforts.

What is a Market?
Market is the sum total of all the potential and actual buyers of a product.
Who is a Marketer?
Marketer is a person who takes more active part in the exchange mechanism.
Generally, it is perceived that a seller is the marketer but it is not necessarily true, as
sometimes the buyer makes more effort in the exchange process.
Marketing Management philosophies

Production Product Selling Marketing Socie

Basis
concept concept concept concept conce

Starting
Market and
Point Factory Factory Factory Market
Society

Customer
Existing
Focus Quantity of product Quality of product Customer needs & Society
product
welfare

Availability
Improvement in the
and Promotion Integrated Integrated
Means quality of the
Affroadability of the and Selling Marketing Marketing
product
product

Customer
Volume of Product Sales Customer
End satisfactio
production Quality volume satisfaction
Society’s w
Functions of Marketing

1. Gathering and analysing market information. It is important from the

perspective of marketer to gather information from the market. SWOT analysis
should be done properly.
This will help in understanding the target market.
2. Marketing Planning. Proper alternative plans should be prepared in order to
meet different situations, avoid uncertainties and maximise profits.
3. Product designing and development. The designing of a product should be
such so as to meet the requirements of the market. With passage of time the
designs of the product can be improved leading to its development.
4. Standardisation and Grading: Standardisation: Man-made products can be
uniformly
manufactured according to predetermined standards. *•
Grading: For natural products uniformity (standardisation) is not possible so
they can be graded into different classes.
5. Packaging and labelling. Packaging is designing the wrapper or container of
a product. Labelling deals with designing of label to be put on the package.
6. Branding: Naming tire product so as to give it a distinct identity. Brand is a
very broad concept. When customers identify the brand and like it, its value
increases.
7. Customer support services. Services like post-sale repair, solving customer
problems and timely maintenance—come under customer support services.
8. Pricing of the product. Fixing the price of a product is always a major
challenge for a company. It is the amount of money a customer is ready to pay
in exchange of the product.
9. Promotion. The process of informing the customer about the product is
promotion. Promotion mix includes advertising, personal selling, sales
promotion techniques and public relations.
10. Physical distribution. Actual distribution of products takes place through
channels of distribution or directly. Deciding how many channels would be
preferred or how the goods will be transported form one place to another are
the main concerns.
11. Transportation. The challenge is to provide the products to the customers
spread far and wide. Transportation deals with the actual movement of goods
from the place of production to the place of consumption.
12. Storage or Warehousing. Storage of products in an orderly manner at a place
is a very important function of marketing. It maintains a balance between
supply and demand. This function saves time, effort and money of the
consumers.

Marketing Mix
Marketing mix is a combination of four elements:

1. Product
2. Price
3. Place or physical distribution and
4. Promotion (opted by a business firm) in order to achieve its marketing
objectives.
Branding. Positioning or placing a distinct and unique image in the mind of
consumers is branding.
Brand Name. It is the name of a Brand which can be spoken through words. For
example, Nike. Apple

Brand Mark. The part of brand which cannot be spoken but only recoganised. It is in the
form of a symbol or design. For example brand mark of Nike —> √
Trade Mark. The part of a brand which is exclusive for a business firm and is legally
protectable.
Advantages of Branding to Marketers

1. Product differentiation.
2. Helps in display and advertising.
3. Differential pricing.
4. Introduction of new products becomes easy.

Advantages of Branding to Customers

1. Helps in the identification of the product.

2. Helps in ensuring Quality.
3. Status symbol. Some high performing expensive brands become status
sypmbols.

Characteristics of a Good Brand name

1. It should be versatile For example ‘Dabur’ —> Dabur Red (Toothpaste), Dabur
Chyawanprash.
2. It should be suggestive of quality. For example —> Beach hair shampoo,
Sunlight washing powder.
3. It should be legally protectable.
4. It should be distinctive like Zodiac, Arrow.
5. It should have staying power like Tissot, Levis.
6. It should be adaptable to various requirements and types of media.
7. It should be short, easy to pronounce and spell. For example VIP, Rin.

Packaging
The process of creating and producing package for a product is known as
Packaging.

Levels of Packaging

1. Primary packaging —> Immediate layer

o Often kept throughout the life of a product [not always.]
o Example: tube of a toothpaste.
2. Secondary packaging
o Additional layer after primary packaging
 o Kept till product is stored and thrown when product is used
o Example —> Additional cardboard box of a toothpaste.
3. Transportation packaging
o Used for transportation —> Have shock absorbing qualities
o Corrugated boxes containing forty or fifty tubes of toothpaste.

Importance of Packaging

1. Rising standards of health and sanitation. People who are hygiene

conscious, generally purchase packaged foods.
2. Self-service outlets. Packaging helps in attracting customers to the products.
3. Innovation opportunity. Packaging provides a lot of scope for innovation as
we can see different types of packagings serving consumers in different ways.
4. Product differentiation. One product can be differentiated from another with
the help of packaging as different packages have different shapes, sizes and
colours.

Functions of Packaging

1. Product protection. The first and most important function of packaging could

be protection. The ingredients and constituents are protected from outside
environment.
2. Product identification. Helps in identification of the product.
3. Helps in the use of the product. The shape and surface of package helps in
proper handling of the product.
4. Product information. A lot of information related to promotion, discount, extra
quantity, etc. is given on the package.

Labelling
Labelling is the process of designing a label for a product.

Functions of Labelling

1. Describes the product and specifies the content as almost all the required
information about the product is provided through its label.
2. Product differentiation. The name of the product and brand is mentioned
through labelling, this helps in differentiating one product from another.
3. Grading of products. Labelling helps in grading of products like Brown rice,
Basmati rice, etc.
4. Helps in promotion. Labelling provides a lot of information connected with the
promotion of a product; like 20% discount, toothpaste with a new flavour, etc.
5. Providing information required by law. Labelling provides information like
expiry date of medicines, contents of the products, etc. in order to follow
directions given by law.

Price
Price refers to the amount of money a consumer is ready to pay in exchange of the
product.
Factors affecting Price Determination

1. Product Cost. The price of a product can never be less than the cost incurred
by the company in producing it.
2. Utility and demand of the product. The uppermost limit of the price of a
product is decided by its utility and demand. In case the product’s demand is
not much affected by the rise in price, then its price can be increased to
increase revenue. On the other hand, if demand fluctuates with price then
increasing the price may lead to decrease in demand.
3. Extent of competition. When there is a lot of competition in the market among
the competitors, the companies try to keep prices on the lower side, however, a
company having monopoly in the market has more freedom to increase the
prices.
4. Government and legal regulations. Government prevents companies to
increase the prices of essential commodities beyond a certain level.
5. Pricing objectives.
o Market share. When companies want to capture a definite percentage of
market share they go for price-setting keeping in mind the long duration
of time. Prices are to be kept low per unit.
o Quality of the Product. When companies go for raising revenue in the
short run they go for high price per unit strategy. The companies try to
differentiate their products on the basis of better quality.
o Survival. When companies do not have any other option and face a very
stiff competition from their competitors on the price front they have to
lower their prices in order to survive.
o Marketing methods used. When companies use different marketing
methods like advertising, giving credit facilities, after sales service, etc.
they shift the costs towards the customers and the prices of their
products increase.

Place of Physical Distribution

This is a very important element of Marketing-mix as it deals with making the
products (goods and services) available at the required place.
Channels of Distribution.

1. Direct channel. It is also known as zero level. It is a direct channel between

the manufacturer and the consumer.
2. Indirect Channel.

There are three types of Indirect Channels:

 One level (Manufacturer—Retailer—Consumer)
 Two level (Manufacturer—Wholesaler—Retailer-Conusmer)
 Three level (Manufacturer—Agent—Wholesaler—Retailer—Consumer)

Factors affecting Choice of Channels

1. Product related factors:

 o Complex or Industrial products —> Short channel
o Expensive products —> Short channel
o Consumer products —> Long channel
o Perishable and eatable products —> Short channel
o Non-perishable products —> Long channel
2. Company-related factors:
o Degree of control a company wants to have over its products
Degree of control more —> Short channel
Degree of control less —> Long channel
o Financial strength of a company
Short channel —> when financially strong
Long channel —> when financial weak.
3. Competition factors:
Here the company observes the channels of distribution of the competitors. In
case it finds the competitors strong it can avoid the same channel.
4. Market related factors:
o Geographical location of buyers
o Size of market
o Size of the order
5. Environmental factors:
When the economy is going through recession Inactive phase —> Short
channel can be preferred.

Elements of Components Physical Distribution

1. Order Processing. Companies try their level best to decrease their order

processing time. Orders move from customers to company and products move
from companies to customers.
2. Transportation. It is the most challenging aspect of physical distribution
because long distances, fragility of products, time constraints and difficult
geographical locations are the obstacles that transportation has to overcome,
when products move from manufacturer to the consumers.
3. Warehousing. Warehousing involves systematic storing of goods and
preparing them for delivery as and when required.
4. Inventory control. All the decisions regarding the upkeep and maintenance of
inventory come under Inventory control. High level of inventory generally
provides a firm advantage of providing goods as and when required. However,
it also adds to the cost of the company.

Promotion Mix
All sorts of promotional efforts undertaken by a company to achieve its reach to the
target audience come under promotion mix.
Promotion mix consists of four elements:

1. Advertising
2. Personal selling
3. Sales promotion
4. Public relations
I. ADVERTISING
It is a paid form of promotion method involving an identified sponsor. It is impersonal
in nature.

Role of Advertising

 It is capable of mass reach. It can reach a large number of people.

 Creates satisfaction among the customers.
 It is an expressive medium of spreading the intended message.
 Since a large number of people can be reached, the per unit cost of reaching
people is very less.
 It informs the target audience about the product and makes their shopping
easier and effective.

Objections to Advertising

 It is a costly process and the companies shift this cost towards customers.
 Buyers get confused due to excessive advertising for the same product by
different companies. They all claim their product to be the best.
 Some advertisements are in bad taste.
 Advertisements may be against social values as at times—lifestyles, indecent
language etc. shown donot get social approval.
 Advertisements promote even inferior quality products as the companies want
that all their products, whether good or bad should find a buyer.
 Advertisements exaggerate quality of the products sold by the companies.

II. PERSONAL SELLING

It is selling of a product by an individual to another individual or group of individuals
by establishment of an oral conversation.

Features of Personal Selling

 It involves formation of personal relationship.

 It involves direct feedback.
 Minimum wastage of efforts takes place here.
 It involves flexibility as the direct seller can alter the content of his conversation
in order to suit the requirements of his client.

III. SALES PROMOTION TECHNIQUES

1. Rebate. In order to clear stocks, companies sell products at less prices.

2. Discount. It is another way of offering products at reduced prices. However
unlike rebate discount is in percentage.
3. Refunding. When a customer shows proof of purchase he/ she is repaid a part
of money paid by him as price.
4. Product combinations. A gift is given along with the product. For example a
free set of shaving blades with after-shave lotion.
 5. Quantity Gift. The extra amount or an extra piece given of the same product.
For example: Buy one get one free.
6. Instant draws and assigned gifts. On scratching a card or opening the
package, a gift is found instantaneously or the buyer becomes eligible for a gift.
7. Lucky Draws. On a given future date a lucky draw event is held and one
person is declared the winner through random drawing out of the names of the
customers.
8. Usable benefit. A holiday package or a free service (like talktime) is offered on
the purchase of a product.
9. Sampling. Free samples of the product are distributed.
10. Contests. Contests are organised and sponsored by companies trying to
popularise their products.
11. Full finance. A product is given on zero interest instalments. However,
generally File charges are taken in place of interest.

Public relations
All the different types of activities and programmes undertaken by a business firm to
create a good image in the eyes of various stakeholders is known as Public relations
exercise.

Role of Public relations

1. Press releases. A good image creating information is passed on to the press

(about the products and the company) and all efforts are made to maintain
good relations with the Press.
2. Corporate communication. Brochures, newsletters visuals, etc. are used
during participation in conferences and seminars. All these activities are done
to enhance the image of the company by getting in contact with the public and
stakeholders of the business.
3. Lobbying. The company ensures that there should be a lobby of their
supporters among government officials and ministers. These relations help
companies a lot in gaining favourable support from the government.
4. Product publicity. Various events are organised to create awareness about
the products.
Counselling. People are made aware about various aspects of life in a selfless
manner by the company on various issues like Women empowerment,
Environmental concerns, Educational development among poor children, etc.

Objections of Public relations

1. Building awareness. Through the use of various types of platforms, goodwill

is generated in the market and people are made aware about company’s
products.
2. Building credibility. Credibility is generated and increased among the public
with the help of media.
3. Reducing cost of promotion. Public relation activities act as a good
supplement to other promotional activities.
4. Stimulating sales force. It becomes easier for the sales force to promote
goods which are being appreciated even otherwise.
 CASE STUDIES

Question 1.
Suyash is very thirsty. He is in the middle of a desert. Soon he finds a cold drinks’
shop. He goes and purchases three bottles and drinks them to satisfy his thirst. After
drinking the cold drink he realises that it has been developed after analyzing the
needs and preferences of the potential customers. On observing the outer side of the
bottle he finds details like contents, flavour, size, prize, etc.

1. What is ‘Cold Drink’ and ‘Thirst’ here in relation to each other?

2. Identify one feature of marketing which has been highlighted here?
3. How is cold drink a good market offer here?

Answer:

1. ‘Cold Drink’ is ‘want’ here and ‘Thirst’ is ‘need’.

2. One feature of marketing which is highlighted here is ‘Creating a Market
Offering’. On observing the outer side of the bottle he finds details like
contents, flavour, size, prize, etc.
3. A cold drink is a good market offer as it has been developed after analyzing the
needs and preferences of the potential customers.

Question 2.
Identify the true exchange mechanisms in the following cases:

1. Rajeev was a hardworking stationery shop keeper. One day when he was
standing in front of the mirror he took money from one of his pockets and took
out a pen from the other. He allocated ?100 for the pen and decided to keep
the pen for his personal use. In the coming days he utilized the pen properly
and was satisfied with if.
2. Kiran was a book seller. One day she was selling books. She approached a
person who was sitting on a pavement. She offered her a book and found that
he was not having enough money to pay. So she willingly gave her the book
without taking money.

Answer:

1. No it was not a true exchange mechanism as a true exchange mechanism

requires at least two parties.
2. No it is not a true exchange mechanism as both the parties should be capable
of giving something of value to each other.

Question 3.
Identify the marketer in the following cases:

1. A coffee making company is making big hoardings to appeal college going

students. A contest is also being organized outside every major company’s
office to lure more and more number of customers. The radio channels are
 playing a very special jingle made for coffee lovers at least 3 to 4 times a day.
The company is trying its level best to increase its customer base.
2. A detergent making company has decided to sell organic detergent to suit the
needs of the people with very sensitive skins. This move is to make a special
niche in the market to increase brand loyalty towards the company.
3. A person is searching for a life saving drug for a particular disease. He has
tried several places but he hasn’t been able to find it. One day he comes to
know that a particular company used to make that drug a few years back on a
large scale but now it makes only limited number of tablets of that drug. He
approaches that company and urges them to give him the drug.
4. Country ‘A’ approaches Country ‘B’ and asks it to hand over some nuclear
material. This material is required in the Country ‘A’ to meet its electricity
requirements. Country B is rich in this resource but normally doesn’t export the
nuclear material to any country. However, on repeated urgings of the Country
‘A’ it agrees to do so.
5. ‘White Wash’ is a car cleaning company having a good turnover. Recently in
the top level meeting it has decided to increase its customer base. For this the
company has decided to go door to door in all the major areas of their reach
and convince the car owners of all income brackets to give them a chance for
their services.

Answer:

1. The coffee making company

2. The detergent making company
3. The person who is looking for the drug is the marketer here as he is making
more efforts here.
4. Country A (though is a buyer here but since it is making more effort in the
exchange process).
5. The car cleaning company ‘White Wash’ as it is playing the active role here.

Question 4.
Identify the marketing management philosophy involved in the following cases:

1. Geetika scooters are the leading manufacturers of scooters in the industry.

They have the first mover advantage in the industry. When they started
manufacturing scooters no other company was doing it. They manufacture
scooters and the middle class purchases them in a high number. With each
passing year the number of scooters sold is increasing. The company’s main
concern usually is to produce maximum number of scooters. Company’s profit
is governed by the maximum number of scooters they produce.
2. Aman microwaves produce microwaves but they do not try to understand the
needs of the customers. Their main focus is always on the quality of the
product but never on customer requirement. They try’ to include as many
features as possible in their product. This year they have added a special type
of alarm in their product which is a unique feature. The alarm is available in ten
varieties. However, the customers say that the product is not of much use to
them as it consumes a lot of electricity.
3. Ravi coolers is a very progressive company. The owners of the company feel
that unless and until they contribute to society it is worthless to exist as a
company. In a recent move by the government the organisation has decided to
help it. The organisation will be making five teams of hired environmentalists
from foreign countries. This team will help the local people clean the portions of
a polluted river in the country. The costs of this project will be borne by the
company.
4. Rajesh is a manager in a company. His main area of focus is to generate
revenue for the company through repeated sales. He decides to develop a
product for the company which can generate revenue in the long run. For this
he meets a team of R&D (Research & Development) of his company. After a
long meeting they decide to do survey. Based on the survey a product is made
to fulfill needs pf the customers. The product later produces a lot of revenue
through repeated sales in the long run.
5. A company decides to do promotion for a new chips flavour. For this many
contests are organized in different colleges. The youth is the target market for
the chips makers. However, there hasn’t been proper research about the liking
of the flavour among the youth. The company has launched this product based
only on intuition. The company has decided to go ahead with the promotional
campaign even if there is a negative response from the buyers.
6. Aakriti foods is making a great impact in the food industry. The top
management of the company has been in news for helping the villagers in the
rural areas grow their income. They have made alliances with groups of people
of different villages. They procure handmade food products from them and help
these products find a way to the elite class of metro cities. The company has its
motto of replacement of the western taste with that of Indian among the elite
class. The company is very intelligent to see a high paying elite class as the
target segment.
7. A company is manufacturing a new type of helicopter for the rich people. The
helicopters manufactured are patented products of the company. No other
company has made this type of helicopter yet. The company says since the
helicopter is unique the booking of the product is done in advance by the
buyers. There has been demand in excess. The company is in no need to
market its product. It has to see that it can make the helicopter available to
people who can buy it.
8. An Air Conditioner manufacturing company is busy these days in adding
features to its products. This is being done to increase its customer base. The
company has not done any research to see which types of features are liked
and which are in excess. It is only making its product loaded with new features.
The needs of the customers are not considered. When asked why they are not
doing proper research to know the expectations of the customers they replied
that they have full faith on the performance of their Air Conditioners.
9. A company which deals in apparels has decided to clear its stock. The
company has a huge pile of clothes to be cleared across its various branches.
The company has decided to give discount on its products. It even has decided
to go for various fashion shows in different colleges. It has also decided to
sponsor a few events. However, people say that the clothes are not much of
current fashion and the company is not considering the choice of the
customers.
 10. An automobile company is a leading manufacturing company in its segment.
The company has decided to launch fully solar charged vehicles. This
technology will cost the company ?2000 crores annually. When the relationship
manager of the company was asked about the reason of bearing so much
extra cost he replied that the company considered environmental friendly
techniques as the only solution to increasing pollution. The company feels by
bearing extra cost it is fulfilling its responsibility.

Answer:

1. Production concept
2. Product concept
3. Societal marketing concept
4. Marketing concept. Since the word ‘sales’ has been used do not confuse it with
the selling concept. Here customer needs are understood by the organisation.
5. Selling concept. Though here the word promotion is used it doesn’t mean that
the company is applying the marketing philosophy. The product is not launched
after analysing the tastes and preferences of the potential customers.
6. Marketing concept. Do not confuse it with Societal Marketing concept. The
main purpose of the company is not social welfare it is only maximization of
profit.
7. Production concept. Since the product is being sold on availability and
affordability of the product.
8. Product concept
9. Selling concept
10. Societal marketing concept

Question 5.
‘Beauty Products Ltd.’ is a natural and ethical beauty brand famous for offering
organic beauty products for men and women. The company uses plant based
materials for its products and is the No. 1 beauty brand in the country. It not only
satisfies its customers but also believes in overall protection of the planet.
Identify the marketing management philosophy being followed by ‘Beauty Products
Ltd.’
Answer:
Societal marketing philosophy/concept.

Question 6.
Ginika, Tanish and Rohit were friends from college days and now they are doing
different kinds of business. They regularly meet and discuss their business ideas and
exchange notes on customer satisfaction, marketing efforts, product designing,
selling techniques, social concerns etc.
In one of such meetings, Ginika drew the attention of Tanish and Rohit towards the
exploitation of consumers. She told that most of the sellers were exploiting the
consumers in various ways and were not paying attention towards the social, ethical
and ecological aspects of marketing, whereas she was not doing so.
Tanish told that they were under pressure to satisfy the consumers, but stated that
the consumers would not buy or not buy enough unless they were adequately
convinced and motivated for the same.
Rohit stressed that a company cannot achieve its objectives without understanding
the needs of the customers. It was the duty of the businessmen to keep consumer
satisfaction in mind because business is run by the resources made available to
them by the society. He further stated that he himself was taking into consideration
the needs of the customers.
Identify the various types of thinking that guided Ginika, Tanish and Rohit in the
marketing efforts of their business. Also, state one more feature of the various types
of thinking identified that is not given in the above para.
Answer:
Various types of thinking that guided the marketing efforts were:
Ginika – Societal marketing concept/ thinking/ philosophy.
Additonal Feature. Societal marketing concept or philosophy aims at identifying the
needs and wants of the target market and delivering the desired customer
satisfaction in an effective and efficient manner so that a business is able to take
care of the long term well-being of the consumers and the society.
Tanish – Selling concept/thinking/philosophy.
Additonal Feature. Firms following this philosophy undertake aggressive selling and
promotional efforts to make customers buy their products.
Rohit – Marketing concept/ thinking/philosophy.
Additonal Feature. Firms following this concept or thinking take all the decisions
from the point of view of statisfaction of customers. It involves development of
products for satisfying needs of the target market better than the competitors.

Question 7.
‘Extra Calories’ is a profit making potato chips company. The company has entered a
foreign country. It has found that the youth is going to be the appropriate section of
society to be targeted. The marketing head of the company has a vision for the
company for another 10 years to make its mark in the market. The major challenge
would be to beat the existing potato chips selling companies by giving chips of better
taste so that the existing young buyers could make ‘Extra Calories’ chips as their
favourite brand. The company is quite clear about its objectives. It has decided to
make a net profit of at least Rs. 50 crores in its first year and later on it would like to
increase this profit with passing years. Definitely the vision of the company is quite
clear.
Identify the pillars of the marketing concept discussed in the above case.
Answer:
The pillars of marketing concept highlighted in the above case are:

1. Identification of the market to be chosen for the marketing. It has found that the
youth is going to be the appropriate section of society to be targeted.
2. Satisfying needs of the target market better than the competitors. The major
challenge would be to beat the existing potato chips selling companies by
giving chips of better taste so that the existing young buyers could make ‘Extra
Calories’ chips as their favourite brand.
3. Doing all the above efforts for a profit (It has decided to make a net profit of at
least ?50 crores in its first year and later on it would like to increase this profit
with passing years).
Question 8.
A garment manufacturing company has decided to identify the needs of the
customers to start successful marketing of the garments produced by it and for this
the company is doing SWOT analysis (Strength, Weakness, Opportunity and Threat
Analysis). The company is pursuing its objectives with full efforts. It has decided to
make a blueprint for the amount of production it will do, the efforts behind promotion
it will put and all other major actions it will undertake to achieve its objectives.
However, the company has one weak area which it would like to improve. The
physical movement for its prepared garments was not proper last year and the
company wants to ensure it is done properly this year. For this thing to be done
properly it has created a separate department. Hope the company does better in
future.
Which functions of marketing have been highlighted in the above case?
Answer:
The functions of marketing highlighted in the above case are:

1. Gathering and analysing market information. A garment manufacturing

company has decided to identify the needs of the customers to start successful
marketing of the garments produced by it and for this company is doing SWOT
analysis (Strength, Weakness, Opportunity and Threat Analysis.
2. Marketing Planning. It has decided to make a blueprint for the amount of
production it will do, the efforts behind promotion it will put and all other major
actions it will undertake to achieve its objectives.
3. Transportation. The physical movement of its prepared garments was not
proper last year and the company wants to ensure it is done properly this year.

Question 9.
Radhika was a student of Business Studies of Class XII. Her father was a farmer
who grew different varieties of rice and was well-versed about various aspects ot rice
cultivation. He was also selected by the government for a pilot-project on rice
cultivation. As a project-work in Business Studies she decided to study the feasibility
of marketing good quality rice at a reasonable price. Her father suggested her to use
the internet to gather customers’ views and opinions. She found that there was a
huge demand for packaged organic rice. She knew that there were no
predetermined specifications in case of rice because of which it would be difficult to
achieve uniformity in the output. To differentiate the product from its competitors, she
gave it the name of ‘Malabari Organic Rice’ and classified it into three different
varieties namely—Popular, Classic and Supreme, based on the quality. She felt that
these names would help her in product differentiation. Explain the three functions of
marketing, with reference to the above paragraph.
Answer:
Three functions of marketing referred in the given paragraph are as follows:

1. Analysing and gathering market information. It is an important function from

marketing view point. It is essential for the marketer to identify the needs of the
customers and to take various decisions for successful marketing of goods and
services. It helps the marketer in an analysis of several opportunities as well as
threats along with the strengths and weaknesses of the business enterprise.
 2. Standardisation and Grading. Standardisation is the process of setting
certain standards for the product to provide it uniformity and consistency. It
aims at providing good quality of products to the customers to enhance their
level of satisfaction.
Grading refers to classifying the product into different groups as per certain
predetermined standards. It is necessary for products not having any
predetermined specifications.
3. Branding. It is the process of providing a name to the product so that it can be
distinguished easily from other similar products available in the market. It helps
the customer in identifying the product. It also helps in promoting the sales and
building customer loyalty. A brand name can either be generic or specific. A
marketer has to decide the branding strategy of the product carefully so it
brings in more sales for the business enterprise.

Question 10.
A company wants to increase the sales of its products. To do this the company is
applying all tactics like informing the customers about its products, persuading them
to buy these products, involving personal selling and promotional activities. The
sales might pick up with these efforts but there is something more it is concerned
about doing. The issue which is worrying the company is repeat purchase. For this,
the company is taking interest in after sales services, maintenance services and
providing useful information to the customers. With these efforts the real purpose of
the company may get fulfilled. However, the company is avoiding one aspect which
is related to the decision regarding channels of distributing products. The company
doesn’t have a well decided strategy for it. Which functions of marketing have been
highlighted in the above case?
Answer:
The functions of marketing highlighted in the above case are:

1. Promotion. To do this the company is applying all tactics like informing the
customers about its products, persuading them to buy these products, involving
personal selling and promotional activities.
2. Customer support services. For this, the company is taking interest in after
sales services, maintenance services and providing useful information to the
customers.
3. Physical distribution. However, the company is avoiding one aspect which is
related to the decision regarding channels of distributing products.

Question 11.
Atul was a pen manufacturer. He used to make ball point pens in a small factory in
the basement of his house. Daily he would go to the market place and distribute
pens to the retailers. Some of the pens were sold by him of his own by meeting
persons on road. He had not kept any name for his pens. They were just blue, black
and red pens. One of his friends suggested him to keep a good name of his pens.
He kept his own name and started selling pens with the name of Atul Pens. Then
there were three categories of pens – Atul Red, Atul blue and Atul black. Gradually
his business started to pick up even more and he made good revenue.

1. Which function of marketing is highlighted in the above case?

 2. Which element of promotion mix has been highlighted in the above case?
3. What two types of names do you see in the above case?
4. Which of the above two identified names was better? Why?

Answer:

1. The function of marketing highlighted in the above case is Branding (One of his
friends suggested him to keep a good name for his pens).
2. The element of promotion mix which has been highlighted in the above case is
Personal Selling (Daily he would go to the market place and distribute pens to
the retailers. Some of the pens were sold by him on his own by meeting
persons on road).
3. The two types of names you see in the above case are—Generic name (When
he had kept no name for his pens and was just selling them as pens) and
Brand name (When he had kept the name of his pens as Atul pens).
4. Brand name was better. The reason being that people can identify products
with their makers only by a name which helps in association with the product; a
generic name can’t differentiate between two makers.

Question 12.
Amav is a distributer of tea to far off places. He has opened a company which deals
in tea selling. He has categorized his tea to be sold into three categories: Green,
Yellow and Red. His brother Ramesh on the other hand is running a mobile
manufacturing company. His company strictly produces mobile according to the
pre¬determined specifications. The mobiles of each variety are of same size, looks
and performance.

1. In the above case which function of marketing has been highlighted?

2. Name the four advantages of the above highlighted function.

Answer:

1. In the above case the function of marketing which has been highlighted is
‘Standardisation’ and ‘Grading’.
2. The advantages of Standardisation are:
o The buyers get standard quality products which are according to the
given standards.
o The time of buyer is saved as there is no need to inspect the product.
The advantages of Grading are:

o Grading helps in categorizing products which are not produced as

per standards for example natural products like wheat, rice, etc.
o Grading helps in getting good price for premium quality products
and saves time of seller as well as buyer.

Question 13.
Identify the element of marketing mix in the following cases:
1. Naresh bought multi gym equipment from a renowned company. The company
gave a warranty period of 1 year. Naresh used to do workout on this equipment
daily. Everything was going fine till one day some problem in the wire of the
equipment occurred. Naresh called the company and told them that it is still in
the warranty period. A service engineer from the company visited his home and
fixed the problem. Naresh was further told that the maintenance service for 1
year is free of cost. Which element of marketing mix is maintenance here?
2. Savita has started a shirt manufacturing business. The shirts are in high
demand in the market. She has made her shirts available to the intermediaries
at the mall. The major concern for her is to make them available the shirts
whenever they need. The inventory kept by the intermediaries is always kept in
mind and wherever there is any shortage of shirts they are supplied at the
earliest. Sometimes prior information is kept with the head office and any
possible shortage in inventory is met in advance. Which element of marketing
mix is inventory here?
3. A vacuum cleaner company made a model which was of unique type. Many
people purchased it. However, after a few years its production had to be closed
down as the demand of the product declined with passage of time. The
company took a wise decision and always kept spare parts available with it.
This was done to maintain the specific type of vacuum cleaners made by it. So
if the customers who had purchased this vacuum cleaner could buy the spare
parts if in case they wanted to repair or run the cleaner properly. Which
element of marketing mix is ‘spare parts’ here?
4. ‘Zero Errors’ is a mobile manufacturing company. The mobiles are of high
quality and are in demand. The company has decided to increase its customer
base by initiating a liberal credit terms to the potential customers on one of its
mobile model. A ?40,000 mobile can now be purchased through credit and the
installments to be paid will be 10 of f4,000 each. It is expected that this way
many people can afford the pricey model of the mobile. Which element of
marketing mix is ‘credit terms’ here?
5. A noodle manufacturing company has started a campaign where it will be
going to different schools during the class timings. During this time free
samples of noodles will be distributed to the students and the teachers. The
idea is to make them aware about the taste and the quality of the product in
advance. The company is taking this initiative as it has in the past given very
good results to its other products. Through free samples it will develop first
contact of its noodles and its goodness with the potential customers. Which
element of marketing mix is ‘free samples’ here?
6. A TV manufacturing company is very confident about selling its products. The
main focus of the company is always on the features of the products they
make. They always try to add new features and these are added after having
done a lot of research on the subject. The quality is an obsession for them.
They try to keep their quality levels to the highest and for this all necessary
steps in the process of production are undertaken. Simple is to say that the
core strength of the company are quality and features of the product. Which
element of marketing are ‘Quality and Features’ here?
7. ‘Ultimate Luxury’ deals in making watches. The company has maintained its
number one spot in the watch making business. They have always associated
their watches with a class and as soon as the name of this watch comes an
association with luxury comes in the minds of the listeners. The company has
 created its brand value by giving extreme attention to quality. The brand value
of the ‘Ultimate Luxury’ is the highest in the industry. Which element of
marketing mix is branding here?
8. A biscuit making company is trying to increase its business. It knows, for this,
the role of the intermediaries is going to be cruciai. A meeting of the top
management is called and factors are highlighted which are responsible for the
underutilisation of the potential of the distributors. In product like biscuit the
intermediaries play a very significant role. The company has decided to give
discounts to them and start a vigorous promotional campaign to involve the
intermediaries. Which element of marketing mix is highlighted in the above
case?
9. A new car has been introduced in the market. The car is breaking records of
selling. The reason behind its success is its mileage. The mileage of the car is
the best in the industry. No car is able to match its mileage. The company has
focused its attention to increase the mileage of the car further. For this the R&D
department is taking all the measures and making efforts to realise the dream
of increasing the car’s mileage. Which element of marketing mix is ‘mileage’
here?
10. A coffee serving company named ‘Planetcups’ is thinking of increasing its
customer base. Earlier it was serving a medium cup of at a higher price for the
high income group. In order to bring the lower middle class in its reach it has
decided to give an additional cup with a cup of coffee. People have reacted
positively to this step of the company and gradually its customer base is
widening. Which element of marketing mix is going to be affected by this
decision of ‘Planetcups’.
11. ‘Fabulous Organics’ is an FMCG company which only deals in organic
products. The company has its own farms where pure organic food products
are grown. The packaging is also organic with no use of synthetic materials like
plastic. The company has decided to take the benefits of consuming organic
food products tp the masses. It has decided to arrange for talk shows,
newspaper advertisements, TV advertisements, Celebrity involvement and
organising marathons. All these efforts will be able to bring the benefits of
organic products of this company to the potential customers. Which element of
marketing mix is highlighted in this case?
12. A five star hotel has decided to include picking up of clients from airports and
railway stations. This will definitely improve the image of the hotel. It will add to
the comfort of the clients. The hotel has done this to fight the tough competition
with the new . entrants in the market. This step is expected to increase the
charges of the stay at the hotel.

In the above case which element of the marketing mix will be affected?
In the above case which element of the marketing mix is the ‘additional service of
picking up of clients from airports and railway stations’?
Answer:

1. Maintenance here is an extended form of Product. So it is a product.

2. Inventory comes under Price.
3. Spare parts come under Product.
4. Credit terms come under Price.
 5. It is Promotion. Don’t confuse it with Product. The reason is it is type of the
promotional activities taken up by the company.
6. ‘Quality and Features’ will come under Product. Don’t confuse it with
promotion.
7. Branding comes under Product.
8. The element of marketing mix which is highlighted in the above case is ‘Place’.
Intermediaries are the main focus of the above case and intermediaries come
under ‘Place’. Do not confuse it with ‘price’ (because in this line ‘discount’ is
mentioned) or with ‘promotion’ (because in the same line ‘promotional
campaign’ is given).
9. Mileage comes under ‘Product’ since it is a benefit given to the customers and
benefits come under ‘Product’ like quality and features.
10. The element of marketing mix which is going to get affected here is ‘Price’.
11. The element of marketing mix highlighted in the above case is ‘Promotion’.
Here the promotion is required to declare benefits of the products. Though
‘benefits’ in themselves are a part of ‘product’ yet here the main focus is on
‘promotion’.
12. In the above case:
o The element of marketing mix which is going to get affected will be ‘Price’
as the five star hotel will charge additional for this service.
o The ‘additional service of picking up of clients from airports and railway
stations’ will come under ‘Product’ as it is the part of the main product of
the hotel which is services. The extended product is ‘Product’.

Question 14.
‘Energy drinks India Ltd.’ has scanned a profitable opportunity for marketing of soft
drinks with ‘Indian Traditional Flavour’. The company wants to market its products in
India and in neighbouring countries. A Board meeting of the company was held on
14.12.2015 wherein the marketing manager was asked to give a presentation to
develop this market offering.
For this it was also decided to set-up its manufacturing unit in a village of Bihar. This
will not only help in the development of the village but will also provide employment
to the youth of the village. The marketing manager chooses a combination of
variables to prepare its market offering. He used a set of marketing tools that firm will
use to pursue its marketing objectives in the target market.

1. Name and state the concept of marketing used by the marketing manager for
creating its market offering.
2. Also, explain briefly the various elements of this concept.
3. State any two values that the company wants to communicate to the society.

Answer:

1. Marketing Mix. It is the combination of variables chosen by a firm to prepare its

market offering. It is a set of marketing tools that a firm uses to achieve its
marketing objectives.
2. Elements of Marketing mix:
 o Product. Product means anything of value that is offered to the market for
sale. Product consists of the physical product, its quality, brand name,
packaging and label.
o Price. It is the value that a buyer passes on to the seller in lieu of the
product or service provided. It is a source of revenue for the seller. Price
element includes Price, Discounts, Allowances, Credit Terms, etc.
o Place (or distribution). Place utility refers to the activities that are involved
in transferring the ownership to customers and to make the product
available at the right place at the right time. It includes mode of
transportation, channel of distribution and inventory maintenance.
o Promotion. This element includes activities involved in informing and
persuading the customers. Advertising, personal selling and sales
promotions are different ways of promotion.
3. Values that the company wants to communicate to the society:
o By creating job opportunities they are leading to employment generation
for the youth.
o Development of backward and rural areas.

Question 15.
‘Hayaram’ is a famous chain selling a large variety of products in the Indian market.
Their products include chips, biscuits, sweets and squashes. It charges a
comparatively higher price than its competitors as it sells quality products. Besides, it
offers regular discounts to its customers and easy credit terms to its retailers. It has
five of its own retail shops. It also sells its products through various grocery stores so
that the products are made available to customers at the right place, in the right
quantity and at the right time. It regularly uses different communication tools to
increase its sales.
The above para describes the combination of variables used by Hayaram to prepare
its market offering. Identify and explain the variables.
Answer:
The combination of variables used by ‘Hayaram’ to prepare its market offering is
termed as ‘Marketing Mix’.
The marketing mix include the following four points:

 Product
 Price
 Place and
 Promotion.

The four ingredients of marketing mix are discussed briefly as under:

1. Product. Product means anything of value that is offered to the market Jor

sale. Product consists of the physical product, its quality, brand name,
packaging and label.
2. Price. It is a value that a buyer passes on to the seller in lieu of the product or
service provided. It is a source of revenue for the seller. Price element includes
Price, Discounts, Allowances, Credit Terms, etc.
3. Place (or distribution). Place utility refers to the activities that are involved in
transferring the ownership to customers and to make the product available at
 the right place at the right time. It includes modes of transportation, channels of
distribution and inventory maintenance.
4. Promotion. This element includes activities involved in informing and
persuading the customers. Advertising, personal selling and sales promotions
are different ways of promotion.

Question 16.
A TV manufacturing company is spending substantial amount of money to persuade
the target customers to buy its T.V. sets through advertisements, personal selling
and sales promotion techniques. Identify the element of marketing mix referred here.
Answer:
Promotion.

Question 17.
The advertisement of a travel agency states the following:
‘Visit Agra — The city of Love’, ‘Udaipur — The city of Lakes’ and ‘Mysore — The
city of Gardens’. What is being marketed by the agency through the advertisement?
Answer:
Place (Destination)

Question 18.
Mansi took her niece, Ridhima, for shopping to ‘Mega Stores’ to buy her a bag for
her her birthday. She was delighted when on payment of the bag she got a x box
along with the bag free of cost.
Identify the technique of sales promotion used by the company.
Answer:
Product Combinations.

Question 19.
Ramesh has purchased a car. He is from lower middle class and teaches in a
college. He has purchased a luxury car and has definitely prevented himself from
buying a house for another 5 years. There were many reasons which stimulated him
to take this expensive decision of life. His friends are from rich backgrounds and
have access to all luxuries in their lives. In order to gain importance in his friend
circle he knew he will have to purchase a car which improves his stature in their
eyes. His mother thinks that his son’s decision was not good. She considers it as
wastage of money. She thinks that the purpose of a car is only as a transportation
vehicle. However, the views of his wife differ to that of her mother’s. She thinks that
since he has purchased this car his confidence level has gone high and he is
mentally more equipped as he can rely on his car for several benefits like
transportation, prestige, etc. Definitely people have their different perceptions to a
situation. Similar is the case with his family members.

1. In the above case which concept of marketing has been highlighted throughout
the paragraph?
2. Which benefits have been highlighted in the above case related to the concept
in the previous part of this question?
Answer:

1. The concept of marketing which is highlighted in the above case is ‘Product is

a bundle of utilities’.
2. The benefits highlighted in the above case are:
o Social benefit. In order to gain importance in his friend circle he knew he
will have to purchase a car which improves his stature in their eyes.
o Functional benefit. She thinks that the purpose of a car is only as a
transportation vehicle.
o Psychological benefit. She th inks that since he has purchased this car
his confidence level has gone high and he is mentally more equipped as
he can rely on his car for several benefits like transportation, prestige,
etc.

Question 20.
A company with an established brand name has launched a new product in the
same name. This is helping the company save a lot of expenses on building
reputation and giving an excellent start to the product. The new product is doing
amazingly well and has caught attention of the newspapers. Since, the product is
enjoying a lot of fame the company has decided to charge high prices for it, in
comparison to the same product launch by competitor. The top management of the
company has decided to make an advertisement campaign for the success of the
product. The company need not worry about the success of the advertising
campaign as the effect of the brand is enough to make the audience recall it
otherwise had been there no effect of brand the product would not have got
demonstrated properly. The company can expect good revenue from the product in
future. The branding of this product is such that it will stand out different from other
products of the competitors.

1. Which concept of marketing has been highlighted in the above case?

2. Identify the different types of this concept highlighted in the above case.

Answer:

1. The concept of marketing highlighted in the above case is ‘Advantages of

branding to the marketers’.
2. The different advantages of branding highlighted in the above case are:
o Ease in the introduction of the new product. This is helping the company
save a lot
of expenses on building reputation and giving an excellent start to the
product.
o Differential pricing. Since the product is enjoying a lot of fame the
company has decided to charge high prices for it in comparison to the
same product launch by competitor.
o Helps in advertising and display programmes. The Company need not
worry about the success of the advertising campaign as the effect of the
brand is enough to make the audience recall it, otherwise had there been
no effect of brand, the product would not have got demonstrated properly.
 o Enables marking product differentiation. The branding of this product is
such that it will stand out different from other products of the competitors.

Question 21.
Ravi is a CEO in a reputed company. He lives a very comfortable life. There is
nothing which disturbs him when it comes to expenses. Since he works in corporate
environment and has to meet clients of very high level he maintains a level in his
lifestyle. He recently purchased a watch and specs, both of these items were of very
pricey brands considered as luxuries, and this purchase has given him a reason to
feel proud of using them and have added to his satisfaction. One day it so happened
that he felt his watch was not functioning properly. He called an executive of the
watch company who ensured him replacement in case there is any fault in the watch
and this further increased his level of confidence in the watch company. Wherever
Ravi goes people look up to him. He has got a very good career track record. After
having purchased the. watch and the specs people complement for his choice and
appreciate him for his decision and from a distance identify the class of his products.
Definitely Ravi is a more satisfied man due to these two amazing brands.

1. Which concept of marketing has been highlighted in the above case?

2. Identify the various types of this concept wherever highlighted in this case.

Answer:

1. The concept of marketing highlighted in the above case is ‘Advantages of

Branding to the customers’.
2. The different advantages of branding highlighted in the above case are:
o Status symbol (He recently purchased a watch and specs, both of these
items were of very pricey brands considered as luxuries, and this
purchase has given him a reason to feel proud of using them and have
added to his satisfaction).
o Ensures quality (He called an executive of the watch company who
ensured him replacement in case there is any fault in the watch and this
further increased his level of confidence in the watch company).
o Helps in product identification (After having purchased the watch and the
specs people complement for his choice and appreciate him for his
decision and from a distance identify the class of his products).

Question 22.
Raunak soap is an established soap in the market. For years people have purchased
this soap and have admired it. The soap has shown great growth in terms of
repeated purchase and addition of new customers. Now that the company has grown
the top management of the company has decided to launch new products. The
names to be kept for the new products are giving them new challenges. The
company has decided to launch a cream named ‘Soother’ as it is very good for skin
and makes it very soft and removes dryness. There are other products also which
are on its list. One is hair oil. Since the oil will be sold in different packagings, on
different media and in different regions the name of the oil should suit this
requirement. The third new product to be launched is shampoo. The company wants
a name for the shampoo which stands out different from other players in the market
as if it doesn’t happen then it will be just another shampoo in the market. The
company is also considering the release of a detergent powder. For this the
company has decided that the name should be easily remembered as the people of
all sections of society will need it for washing clothes and might find a long or tough
name easily forgettable. The last new product on the list they have decided to launch
is a prickly heat powder. They have invested a lot in the manufacturing of this
powder and want to sell this product like they have been selling Raunak soap for
years that is for a long period of time. Definitely the name keeping exercise is taking
a lot of efforts of this company.

1. In the above case identify the various characteristics of good brand name
highlighted.
2. If Raunak soaps want to sell different type of soaps under the same soap name
will it be useful? Give reason.

Answer:

1. The characteristics of a good brand name highlighted in the above case are:
o Suggesting benefits. The Company has decided to launch a cream
named ‘Soother’ as it is very good for skin and makes it very soft and
removes dryness.
o Adaptable. Since the oil will be sold in different packagings, on different
media and in different regions the name of the oil should suit this
requirement.
o Distinctive. The Company wants a name for the shampoo which stands
out different
from other players in the market as if it doesn’t happen then it will be just
another shampoo in the market.
o Short, easy to spell and remember. For this, the company has decided
that the name should be easily remembered as the people of all sections
of society will need it for washing clothes and might find a long or tough
name easily forgettable.
o Should have Staying Power. They have invested a lot in the
manufacturing of this powder and want to sell this product like they have
been selling Raunak soap for years that is for a long period of time.
2. Yes, it will be useful as, if soaps are considered, the name is versatile and can
accommodate new variety of soaps as all soaps can give shine and glamour
(Raunak).

Question 23.
‘Maruti Vega Ltd.’ entered into the market with coloured television and have now
introduced products like audio system, air-conditioners, washing machines, etc. The
company is not only offering the products but also handling complaints and offering
after-sales services.
Identify the element of marketing-mix discussed here.
Answer:
Product or Product mix.
Question 24.
There are some characteristics that should be kept in mind while choosing a brand
name. Explain any two such characteristics that a good brand name should have.
Answer:
Two characteristics of a good brand name arc as follows:

1. The brand name should be short, easy to pronounce, spell, recognize and
remember. For example, Rin, Fena, etc.
2. The brand name should be suggestive about certain qualities, attributes and
benefits of the product like, Fair and Handsome, My Fair Lady, etc.

Question 25.
A consumer products manufacturing company is offering a number of consumer
product like toiletries, detergent powder, food products etc. Identify the 1 element of
marketing mix referred here.
Answer:
Product Mix.

Question 26.
Sharmila is the founder of a new FMCG company. She wants her products to speak
to the potential customers. For this she is working a lot on the packaging of her
products. She has decided to cut down the personal selling efforts of her company
by reducing the number of sales men as she wants that the packaging should speak
for itself thus gaining the attention of the potential customers. She has made other
efforts also. She has brought an R&D department in her organisation and has asked
them to invent new types of packaging in order to increase the scope of marketing as
new packaging would ensure safety, environment friendliness and attractiveness.
She knows she will face a lot of competition in the market as already there are many
players in the market who are ready to give challenge to her products. She wants her
packaging to be such that her product should stand apart, be recognized easily and
not be lost in the pool of different products in the market. Their packaging should
convey their quality. The nature of the potential customers has changed over the
years. They have become more demanding and informed. They have more choices
now. One thing that the customers always look for in an FMCG product is the
hygiene and purity; these two traits can only be conveyed to the potential customers
by proper packaging. Sharmila’s perception about packaging is really noteworthy.

1. Which concept of marketing has been highlighted in the above case?

2. Identify the different types of this concept highlighted in the lines above.

Answer:

1. The concept of marketing highlighted in the above case is ‘Importance of

Packaging’.
2. The different benefits of packaging highlighted above are:
o It helps in Self Service Outlets. She has decided to cut down the personal
selling efforts of her company by reducing the number of sales men as
 she wants that the packaging should speak for itself thus gaining the
attention of the potential customers.
o It provides an Innovational Opportunity. She has brought an R&D
department in her organization and has asked them to invent new types
of packaging in order to increase the scope of marketing as new
packaging would ensure safety, environment friendliness and
attractiveness.
o It helps in Product Differentiation. She wants her packaging to be such
that her product should stand distinct, be recognized easily and not be
lost in the pool of different products in the market.
o It helps in meeting the expectations of customers as Standards of Health
and Sanitation are rising. One thing that the customers always look for in
an FMCG product is the hygiene and purity; these two traits can only be
conveyed to the potential customers by proper packaging.

Question 27.
Manuj went to purchase toothpaste for himself. After entering the mall he went to the
place where all FMCG items were placed. By looking at the packaging of toothpaste
he immediately came to know that it was red gel toothpaste which he preferred.
Definitely other items had different types of packaging like soaps, packaged
eatables, etc. As he was walking, it started to rain. He had no umbrella so he got wet
and along with him his toothpaste also got drenched in water. When he reached
home he realised that had the toothpaste packaging not been appropriate it might
have got spoilt. Days passed and he daily used to brush his teeth with the same
toothpaste. In the morning he often used to realise that though he had less time the
shape of the tube containing toothpaste was such that he could squeeze the
toothpaste out easily. One month passed and his toothpaste was about to finish. He
realised a lot of information was given about the toothpaste like its quantity, its
flavour, its contents, extra promotional quantity of 50 gm, brand name, etc. and all
this information helped him repurchase another tube of the same toothpaste. We
may not know but good packaging always helps both the company as well as the
customers.

1. Which concept of marketing has been highlighted in the above case?

2. Identify the different types of this concept highlighted in the above case.

Answer:

1. The concept of marketing highlighted in the above case is ‘Functions of

Packaging’.
2. The different functions of packaging highlighted in the above case are:
o Packaging helps in Product Identification. By looking at the packaging of
toothpaste he immediately came to know that it was red gel toothpaste
which he preferred.
o Packaging helps in Product Protection. When he reached home he
realised that had the toothpaste packaging not been appropriate it might
have got spoilt.
o Packaging helps in Facilitating use of the Product. In the morning he
often used to realise that though he had less time the shape of the tube
 containing toothpaste was such that he could squeeze the toothpaste out
easily.
o It helps in Product Promotion. He realised a lot of information was given
about the toothpaste like its quantity, its flavour, its contents, extra
promotional quantity of 50 gm, brand name, etc. and all this information
helped him repurchase another tube of the same toothpaste.

Question 28.
In a retail store a product was contained inside boxes of dark colour. The outside
surface of boxes were covered by labels which gave information about the product
inside the box and by reading the labels it could also be identified what were the
contents of the material. Atul was one customer who purchased this item. It was an
insecticide. There was a picture of a dead insect and a signal of warning which
showed that the product was poisonous and had the required killing impact on the
insects thus attracting attention of Atul and helped him purchase it. As he carried the
product to his house, his neighbour inquisitively asked about the product in his hand.
He told him it was insecticide. On hearing the neighbour reacted negatively and said
that it could be dangerous for children. He fold him that there was required
information printed on the box based on the directives given by the government
which made it mandatory for the company to put warning. Thus labeling helped in
acting as a medium of information between the seller and the buyer.

1. Which concept of marketing has been highlighted throughout in the above

paragraph?
2. Identify the different types of this concept highlighted in the above case.

Answer:

1. The concept of marketing highlighted in the above case is ‘Functions of

Labelling’.
2. The different functions performed by label identified in the above case are:
o Label helps in Identifying the Product and Specify its Contents. The
outside surface of boxes were covered by labels which gave information
about the product inside the box and by reading the labels it could also
be identified what were the contents of the material.
o Label helps in Promotion of Products. There was a picture of a dead
insect and a signal of warning which showed that the product was
poisonous and had the required killing impact on the insects thus
attracting attention of Atul and helped him purchase it.
o Label helps in Providing Information Required by Law. He told him that
there was required information printed on the box based on the directives
given by the government which made it mandatory for the company to put
warning.

Question 29.
‘Armada Cables’ deals in cables of all varieties. Recently it has launched a new
product to increase its revenue and take the company to a new height. The company
is confused about keeping the price of a newly launched cable which is meant for all
types of household works. In order to beat the competition it has decided to keep the
prices low as there is tough competition in the market. The company has got a
contract from a government institution. This institution works for non-profit motive
and whosoever works for them will have to work at subsidized rates so the company
will have to take less money but will get tax benefits; the impact on the organisation
will be that it will have to provide cables at a low price to support government
initiative. However, the prime objective of company otherwise is profit maximization.
For its metro cities based customers the company has decided to adopt various
methods like improvement in quality of salesmen, innovation in packaging, liberal
credit terms, etc. Whatsoever the conditions the company can’t go beyond a level as
far as pricing is concerned. One such reason is the amount of funds it puts both in
the fixed capital like plant & machinery or working capital like wages of labourers
which fixes the lowermost limit of the price. The management of the company has
recently come to know about a great opportunity arising in Europe for it. It has been
contacted by Europe based contractors who are making world class buildings around
the globe. They require the cables in high quantity and the requirement is so high
that they are ready to pay double the price provided the cables are made available to
them within a short period of time. However, the management of the company has
decided that in this case they can lower the prices of the cables. This has been done
keeping in mind the presence of other European competitors who can lower the
prices of their cables in order to survive in the market.
Identify the various factors affecting price determination in the above case.
Answer:
The various factors affecting price determination in the above case are as follows:

1. Extent of competition in the market. In order to beat the competition it has

decided to keep the prices low as there is tough competition in the market.
2. Government and legal regulations. This institution works for non-profit
motive and whosoever works for them will have to work at subsidized rates so
the company will have to take less money but will get tax benefits; the impact
on the organisation will be that it will have to provide cables at a low price to
support government initiative.
3. Marketing methods used. For its metro cities based customers the company
has decided to adopt various methods like improvement in quality of salesmen,
innovation in packaging, liberal credit terms, etc.
4. Product cost. One such reason is the amount of funds it puts both in the fixed
capital like plant & machinery or working capital like wages of labourers which
fikes the lowermost limit of the price.
5. Utility and demand. They require the cables in high quantity and the
requirement is so high that they are ready to pay double the price provided the
cables are made available to them within a short period of time.
6. Pricing objectives. This has been done keeping in mind the presence of other
European competitors who can lower the prices of their cables in order to
survive in the market.

Question 30.
Sunny Burgers has many branches throughout the country. The company believes in
hiring places and giving rent to the owners of the places at highly busy places of the
cities. However, the company deals with its customers on its own thus providing
them freshly prepared burgers by its own staff. The company has a wide base of
customers. The company has kept the nature of its channel so because of one main
characteristic or nature of the product it serves. It has always tried to please its
customers and for this reason the services are fast. The company has decided to
launch an advertising campaign for creating awareness about its new product. The
world cup of cricket is one such good opportunity where advertising can create its
impact. It has even contacted the number one advertisement making company for
this purpose. However, the top management is concerned about the impact as the
potential customers or the prospects can’t be delivered the message compulsively.
So there is one scheme the company has decided to launch where a burger will be
provided with an additional cold drink on all days of the first week of the month.

1. Which channel of marketing is highlighted above?

2. Which product related factor do you think is responsible for this selection of
channel?
3. Which one component of physical distribution is affected due to the fast
services given by the company?
4. Which merit of advertising has been highlighted in the above case?
5. Which one limitation of advertising has been highlighted in the above case?

Answer:

1. The channel of marketing highlighted above is ‘Zero Channel’ or ‘Direct

Channel’ (However, the company deals with its customers on its own thus
providing them freshly prepared burgers by its own staff).
2. The product related factor which is responsible for the selection of zero
channel is ‘perishable’ (The company has kept the nature of its channel so
because of one main characteristic or nature of the product it serves).
3. The component of physical distribution which is affected by fast services is
‘order proces¬sing’ (It has always tried to please its customers and for this
reason the services are fast).
4. The merit of advertising highlighted in the above case is ‘mass reach’ (The
world cup of cricket is one such good opportunity where advertising can create
its impact).
5. The limitation of advertising which has been highlighted in the above case is
‘Advertising is less forceful’ (However, the top management is concerned about
the impact as the potential customers or the prospects can’t be delivered the
message compulsively).
6. The company has decided to use ‘product combination’ as the sales promotion
technique to increase its sales (There is one scheme the company has decided
to launch where a burger will be provided with an additional cold drink on all
days of the first week of the month). The merit of advertising highlighted in the
above case is ‘mass reach’ (The world cup of cricket is one such good
opportunity where advertising can create its impact)

Question 31.
A car manufacturing & selling company has reached its coverage in three continents.
Definitely the client base is huge. The company deals with its clients through
selected showrooms owned by credit worthy people. The channel related decision is
a successful decision of the company. It could have gone for the direct ownership of
the distribution centres but due to the extra amount of finance involved it didn’t
prevented the company from doing so. Recently a car was launched by a company.
The company has decided to make this car available in a new country where the
reach is a little difficult and the company will have to use innovative ideas in one
component of physical distribution. The company is known world over for its
innovation in different areas. When it comes to promotional ideas the company
always depends upon one component of promotion mix which is of paid form and
has an identified sponsor. Doing business is always full of challenges. Last year a
competitor blamed the company for using the above referred component of
promotion mix for selling a car which was not upto the standards but even then
people purchased it because of the promotional efforts made by the company.

1. Which type of channel is used by the car company to reach to its customers?
2. Which factor has resulted in the nature of channel the company has adopted
for selling the cars?
3. Which component of physical distribution has been highlighted in the above
case in which company will have to bring innovation?
4. Which component of promotion mix has been highlighted in the above case
which is used by the company usually?
5. Which objection to the above referred component of promotion mix has been
highlighted in this case?

Answer:

1. The type of channel used by company to reach its customers is ‘indirect

channel (one level)’. The Company deals with its clients through selected
showrooms owned by credit worthy people.
2. The factor which has made the company go for the indirect channel (one level)
is ‘company characteristic’. The Company doesn’t want to take extra financial
burden by owning the distribution centres.
3. The, component of physical distribution in which the company will have to bring
its innovation is ‘transportation’. The company has decided to make this car
available in a new country where the reach is a little difficult and the company
will have to use innovative ideas in one component of physical distribution.
4. The component of physical distribution highlighted above and used generally
by the company is ‘advertising’. When it comes to promotional ideas the
company always depends upon one component of promotion mix which is of
paid form and has an identified sponsor.
5. The objection to promotion mix which has been highlighted in the above case
is ‘advertising encourages sale of inferior products’. Last year a competitor
blamed the company for using the above referred component of promotion mix
for selling a car which was not upto the standards but even then people
purchased it because of the promotional efforts made by the company.

Question 32.
Mediquip Ltd. is a company dealing in distribution of meclical equipments. The
company recently imported 15000 units of sugar testing machines to test the sugar
levels without taking blood samples. For deciding the marketing strategy, the Chief
Executive Officer of the company called a meeting of the marketing heads of
different zones.
In the meeting, Sandeep, the North Zone Marketing Head, suggested that since the
machines were sophisticated they need to visit hospitals personally, to explain its
working to the hospital staff who would be using the machines. He also suggested
that additional trained people may be recruited for the same.
Himanshu, another Zonal Head, added that since lot of money had been spent on
the import of the machines, the company was short of funds to pay to the additional
staff as suggested by Sandeep.
Rahul, a newly appointed Zonal Head of South Zone suggested that since the size of
the order is not large, a detailed study of the factors determining the choice of
channels of distribution is required before making the right choice.

1. Identify the factors influencing the choice of channels of distribution which were
discussed in the meeting.
2. Also, explain briefly other considerations to be taken care of in each factor
identified in part (a).

Answer:

1. Following are the factors influencing the choice of distribution channels which
were discussed in the meeting:
o Product related factors
o Company characteristics
o Market related factors.
2. Other considerations:
o Product related factors. Unit value of the product and product complexity
also influence the choice of distribution channel.
o Company characteristics. The degree of control a company wants to
exercise over the distribution channel or channel members also
influences the choice of distribution channel.
Market related factors. Geographical concentration of potential buyers
and size of the market also influences the choice of distribution channel.

Question 33.
A pan masala company recently made an advertisement. In the advertisement it was
shown that an employer was giving promotion and special favours to an employee
just because he was eating that pan masala. The advertisement was not liked by
people and the company had to think of a new strategy. The company wanted to
have a way where it could influence the potential customers in the best manner
without wastage of efforts simultaneously ensure repeat purchase due to
development of relationship between them and the company. One of the competitors
of the company is also making a lot of revenue by selling pan masala. This company
always launches new products under the brand name of the parent company. The
packaging of their pan masala is good. Whenever the customers use it they throw
the packet of pan masala after eating it. In order to save itself from the competitors
the company has taken a step recently. It has got one of its flavours patented.

1. Which objection to advertising has been highlighted in the above case?

2. Which component of promotion mix do you think company is thinking of
adopting?
 3. Which advantage of branding has been highlighted in the above case?
4. Which type of packaging has been highlighted in the above case?

Answer:

1. The objection to advertising highlighted in the above case is ‘some

advertisements are in bad taste’. In the advertisement it was shown that an
employer was giving promotion and special favours to an employee just
because he was eating that pan masala.
2. The component of promotion mix which the company is thinking of adopting is
‘personal selling’. The company wanted to have a way where it could influence
the potential customers in the best manner without wastage of efforts and
simultaneously ensure repeat purchase due to development of relationship
between them and the company.
3. The advantage of branding highlighted in the above case is ‘ease in
introduction of the new product’—it is an advantage from the perspective of
marketer. This company always launches new products under the brand name
of the parent company.
4. The type of packaging which has been highlighted in the above case is
‘primary packaging’. Whenever the customers use it they throw the packet of
pan masala after eating it.
The term related to branding which has been highlighted in the above case is
‘trade mark’. It has got one of its flavours patented.

Question 34.
An FMCG company has recently launched a new tyPe °f biscuit in the market. The
name of the biscuit is ‘Behetrino’. The company has made the biscuits of the highest
quality possible. It wants to create an irreplaceable place for the new brand in the
market. The price of the biscuit is also the highest in the market suggesting its
quality. The CEO of the company in an interview said that the branding of the new
biscuit will help the company to connect with the customers. An customers can ask
for the promised quality in case the company deviates from it. As far as packaging of
the biscuit is concerned it is different from others. The immediate outer covering is
beautiful and an additional layer of cardboard box is provided to ensure protection to
the shape of the biscuits.

1. Which characteristic of the good brand name can be seen in the brand name of
the biscuit kept by the company?
2. What do you think is the pricing objective of the company?
3. Which advantage of branding to the customers has been highlighted in the
above case?
4. Which level of packaging does ‘cardboard box’ come under?

Answer:

1. The characteristic of good brand name highlighted in the above case is that it is
‘suggesting benefits and qualities of the product’. The name of the biscuit is
‘Behetrino’. The company has made the biscuits of the highest quality possible.
 2. The pricing objective of the company is ‘quality leadership’. The price of the
biscuit is also the highest in the market suggesting its quality.
3. The advantage of branding to the customers highlighted in the above case is ‘It
is ensuring quality to the customers’. The customers can ask for the promised
quality in case the company deviates from it.
4. The level of packaging which can be seen at the level of card board box is
‘secondary packaging’.

Question 35.
A tea manufacturing company has put labels on its packets stating the variety of tea
it is selling. Currently it has three varieties—red, green and black. The tea of the
company comes from a garden in Assam which is 100 years old. So the price of the
tea is high but recently in order to stay in the market it has lowered down its prices
by 20%. The company sells its tea in different markets of the world. Next year the
company is thinking of selling its tea in the market of a nation having a very high
population. The top management hasn’t yet decided the type of channel it should
choose. Two years back the company started selling its tea online, the decision
brought an indirect change in one of the elements of the marketing mix and of course
one element saw change directly.

1. Which function of labelling has been highlighted in the above case?

2. Which factor of price determination has affected the pricing of tea by the
company?
3. Which type of channel do you think the company should choose for the new
country?
4. Which element of marketing mix has changed directly and which indirectly?

Answer:

1. The function of labelling which has been highlighted in the above case is
‘grading of products’. A tea manufacturing company has put labels on its
packets stating the variety of tea it is selling. Currently it has three varieties—
red, green and black.
2. The factor of price determination which has affected the pricing of tea by the
company is
‘extent of competition in the market’.
3. The type of channel which the company should choose for the new country is
‘indirect channel of 3 levels’ as when the population of a region is high a
company requires more nurnber of channels.
4. The element of marketing mix which has changed directly is ‘place’. As with
online marketing the number of channels have been reduced) and the element
of marketing mix which has changed indirectly is ‘price’. As with the
introduction of online marketing the number of middlemen has reduced erasing
the price margins given to the intermediaries leading to reduction in prices.

Question 36.
Ashima purchased a bottle of tomato-sauce from the local grocery shop. The
information provided on the bottle was not clear. She fell sick on consuming it. She
filed a case in the District Forum under Consumer Protection Act and got the relief.
 1. Identify the important aspect neglected by the marketer in the above case.
2. Explain briefly the functions of the aspect identified in (a) above.

Answer:

1. Labelling
2. Functions of Labelling:
o Describes the product and specifies its contents. One of the most
important functions of labels is to describe the product, its usage,
cautions in use and to specify its contents.
o Identification of product/brand. A label helps in identifying and
differentiating the product or brand from other similar types of products or
brands produced by the company as well as by the competitors.
o Helps in product promotion. An attractively designed label entices the
customers to buy the product. This is particularly true for fast moving
consumer products like toothpastes, salt, butter, jams, soaps, etc.
o Grading of products. With the help of labels, products can be graded
and put in different categories.
For example, Brooke Bond Red Label Tea, Brooke Bond Yellow Label
Tea, Green Label Tea, etc. Marketers assign different grades to different
features or different qualities of the product.
o Providing information required by Law. Labelling also provides
statutory warning or important information as required by law.

Question 37.
A company is ready to try various sales promotion activities. It lias seven products
and for every product it decides to go for a different sales promotion activity. Since
the company is an FMCG company the seven goods are Biscuits, Noodles,
Chocolate, Milk powder, Detergent powder, Cold drink and Soap. The company has
decided to go for providing four extra biscuits for a packet of ten biscuits leading to a
total of fourteen biscuits in a packet now. The product head of Noodles is also
excited about this scheme. However, he tries something different. He allows the
customers to have a take back of Re. 1 after depositing the used wrapper of the
product. The product head of Chocolate goes for another scheme. He offers a
surprise gift in the form of a printed code on the inside of the wrapper and this
printed code has to be sent through a message and the winner will get a gold coin.
For Soap, its product head has an entirely different idea. The company will go to
schools, colleges and arrange quiz competitions there and the winners will get prizes
in the form of a bucket full of this soap in various sizes of 50 gm, 100 gm and 150
gm. The product head of detergent powder has decided to go for a 25% reduction in
the price of the detergent powder. Cold drink has been the most successful product
of the company till date. To make it more successful the company has decided to go
for a combination of a free packet of chips of 100 gm with a cold drink bottle of 3
litres. Definitely the last product head doesn’t want to get left behind he wants to
please the house wives as they generally are the deciders in making the decision to
buy milk powder. On his recommendation free samples of small size of milk powder
are to be distributed in the residential areas to create more awareness about the
product.
Identify the various sales promotion techniques applied by the FMCG Company to
make its products successful.
Answer:
The sales promotion activities highlighted in the above case are:

1. For Biscuits: Quantity Gift as extra amount is being given at the same price.
The company has decided to go for providing four extra biscuits for a packet of
ten biscuits leading to a total of fourteen biscuits in a packet now.
2. For Noodles: Refunding as a part of price is being returned on presenting
wrapper as a proof of purchase. He allows the customers to have a take back
of Re. 1 after depositing the used wrapper of the product.
3. For Chocolates: Instant Draw and Assigned Gift as the prize is assured in an
instant after entering the code. He offers a surprise gift in the form of a printed
code on the inside of the wrapper and this printed code has to be sent through
a message and the winner will get a gold coin.
4. For Soaps: The company will go to schools, colleges and arrange quiz
competitions there and the winners will get prizes in the form of a bucket full of
this soap in Various sizes of 50 gm, 100 gm and 150 gm.
5. For Cold drinks: Product combination as with cold drink another product ‘a
packet of chips’ is offered. To make it more successful the company has
decided to go for a combination of a free packet of chips of 100 gm with a cold
drink bottle of 3 litres.
6. For Milk powder: Sampling as free samples are to be distributed to the
potential target customers housewives in this case. Free samples of small size
of milk powder are to be distributed in the residential areas to create more
av/areness about the product.
7. For Detergent powder: Contests as it is involving competitions in the form of
quiz contests. The product head of detergent powder has decided to go for a
25% reduction in the price of the detergent powder.

Question 38.
Ramesh was watching television. He saw many advertisements. Within a. span of
five hours he saw advertisements of five toothpaste selling companies. He that every
tooth paste selling company was claiming its toothpaste to be the best toothpaste
recommended by dentists. He decided to go to his friend who was a personal selling
agent of an FMCG. After meeting him he got assured of the best toothpaste
available in the market. However he also liked the quality of the toothpaste of his
friend’s company as his friend gave him some very logical reasons for it. After
returning home Ramesh couldn’t sleep as he could see Ms friend’s struggle in
convincing Mm for half an hour and compared it with the mass reach of an
advertisement. Next day he was on an off from his office. He went to a mobile shop
and decided to purchase a mobile worth ?40,000. The company offered him a
scheme in which he could purchase the mobile in interest free ten installments of ?
4,000 to be paid every month. However when he was asked to fill a form, a file
charge of ?2,000 was taken from him. He purchased the phone because of the good
quality of the phone and the continuous efforts of the salesman in the mobile shop.

1. Which objection to Advertising has been highlighted in the above case?

2. Which quality of a good salesman do you think his friend possessed?
 3. Which limitation of personal selling did Ramesh find in comparison to
advertisement?
4. Which sales promotion technique is highlighted in the above case?
5. Did Ramesh pay any interest on the phone he purchased?
6. Which quality do you think existed in the salesman in the mobile shop?

Answer:

1. The objection to marketing which is Mghlighted in the above case is

‘Advertising confuses the buyers’. He found that every tooth paste selling
company was claiming its toothpaste to be the best toothpaste recommended
by dentists.
2. The quality of ‘capacity to inspire trust’ was possessed by his friend. However
he also liked the quality of the toothpaste of his friend’s company as his friend
gave him some very logical reasons for it.
3. The limitation of personal selling wMch Ramesh found was the limitation to
reach only a limited number of people due to time and cost considerations.
After returning home Ramesh couldn’t sleep as he could see Ms friend’s
struggle in convincing Mm for half an hour and compared it with the mass
reach of an advertisement.
4. The sales promotion technique Mghlighted in the above case is ‘full finance @
0%’ (The company offered him a scheme in which he could purchase the
mobile in interest free ten installments of ?4,000 to be paid every month).
5. Yes, he paid interest in the form of file charges wMch is actually distount taken
in advance. However when he was asked to fill a form, a file charge of
Rs.2,000 was taken from him).
6. The quality which existed in the salesman in the shop was ‘persistence’. He
purchased the phone because of the good quality of the phone and the
continuous effort of the salesman in the mobile shop.

Question 39.
Raj at is the CEO of a mobile manufacturing company. The mobile phones
manufactured by the company come under the ‘fragile category’. Rajat has to ensure
that the product reaches the end customer all over the country. To do this he
ensures proper movement of the mobile phones from the place of manufacturing to
the points of selling.

1. Identify the component of physical distribution discussed in the above case.

2. What are the factors affecting Inventory control?

Answer:

1. The component of physical distribution discussed in the above case is

Transportation.
2. The factors affecting Inventory control are:
o Level of services to be provided to the customer. When a firm wants to
provide high level of services to the customers, it keeps high inventory.
 o Correctness of sales forecast. The level of correctness of sales forecast
decides the level of inventory to be maintained. High level of inventory
leading to wastage may occur due to over/ wrong estimation.
o Costs associated with high inventory. High level of inventory means
additional costs in the form of rent, maintenance, etc.

Question 40.
‘Khubsoorat’ is a company which sells beauty products. The company has been the
market leader in this segment for the last ten years. However, the sales of its
fairness cream have come down due to cases of allergic reactions reported by the
users from different parts of the country. The company has been able to make
amendments to the formula to make their product safe for everybody. Its incapability
to communicate with its customers has resulted in the loss of its br^nd value.

1. Which element of promotion mix should the company use to regain its lost
image?
2. Discuss two marketing objectives of this element,

Answer:

1. The element of promotion mix which the company should use is Public
Relations.
2. The two marketing objectives of Public relations are:
o Stimulating sales force. When the sales force is convinced about the
good quality of the product they find it easy to convince the potential
buyers to buy it.
o Lowering promotion costs. Public relations acts as a cost effective
supplement to advertising. Thus it helps in reducing the overall burden of
cost of the company.

Question 41.
Identify the function performed by the public relations department / mentioned in the
following cases:

1. An innovative organisation involved in the manufacturing of electronic products

launches its products in the trade fair every year. This is done to gain attention
of the general public towards the quality and technology of its products.
2. An FMCA company involved in the production of more than two hundred
products has very good relations with the top 5 News Channels. This gives a
great support to the company when it comes to generating positive image in
the eyes of the public.
3. A multi-national company has presence in five continents and thirty countries.
The company manages good relations with the top officials and the ministers of
these countries. This helps the company to keep an eye on the various
possible changes in the laws of the land and their execution.
4. Ramesh who is the head of the Public Relations department of a well
established company utilises PR tools like Brochures, Annual reports,
Newsletters etc. He ensures that the top level managers of the company
connect with TV channels and give
 interviews whenever required. All his efforts have resulted in creating a good
image
of the company with its target audience.

Answer:

1. Product publicity
2. Press relations
3. Lobbying
4. Corporate communication.

Question 42
A company was marketing ‘water purifiers’ which were very popular due to their
quality and after sales services provided to the customers. The company was a
leading company in the market and earning huge profits. Because of huge profits the
company
ignored the after sales services. As a result its relations with the customers got
spoiled and the image of the company was damaged in the public. Top management
became concerned when the profits for the current quarter fell steeply. On analysis it
was revealed that ignoring the after sales services was its reason. Therefore the
company took all possible measures to protect and promote its favorable image in
the eyes of the public. As a result the goodwill of the company improved in the
society.

1. Name and state the communication tool used by the marketer in the above
case to improve its image.
2. Also explain role of the tool as identified in part (a).

Answer:

1. The communication tool used by the marketer is public relation.

Public relations refers to a variety of programmes to promote and protect a
company’s image or its products in the eyes of the public.
2. Role of public relations:
o Press relations. The Public Relations Department of an organization
remains in touch with the media to pass on true facts and positive
information about the company. It helps the firm in creating a favourable
image of the organization among the general public.
o Product publicity. The Public Relations Department of the firm
publicizes their new products through sponsoring events. For this
purpose company participates in sports and cultural events, like,
exhibitions, news, conferences and seminars.
o Corporate communication. In order to promote its favourable image a
firm communicates with employees as well as with employers and the
public through various corporate tools like reports, newsletters,
brochures, articles, etc. The executives of a firm conduct speeches and
converse with the general public at trade fairs or other events.
o Lobbying. It involves maintaining good and healthy relationship with
government officials and various ministers in charge of finance, industry
 and corporate affairs. The government’s policies are often guided by the
opinion of big business houses. The public relation departments try to
manipulate various government regulations that can have a major impact
on business and its functioning.
o Counselling. To create a positive image of the company, the Public
Relations Department guides the management on general issues. The
company can enhance
its goodwill through charity, contributing towards education, health and
other issues associated with general public interest.

Question 43.
Amitabh Bachchan, the legendary bollywood actor is often seen in a television
advertisement of Gujarat tourism. In this particular advertisement he encourages
people to visit Gujarat and spend some time there by quoting a punch line ‘KUCHH
DIN TOH GUZARO GUJARAT MEIN’.
Identify what is being marketed by Mr. Amitabh Bachchan in the above case.
Answer:
Place

Question 44
In a popular advertisement on radio and Television, Bollywood actress Vidya Balan
talks about cleanliness and hygiene. The idea behind is to create awareness
regarding having a toilet in each house instead of going out in the open. She
included the advertisement with a punchline ‘JAHAN SOCH VAHAN
SHAUCHALAYA’. Identify what is being marketed by the famous actress in the
above case.
Answer:
Information

Question 45.
‘GATA Ltd/ is a large multinational company and operates in many countries of the
world. The company is in the business of Insurance, Health care, Business Process
Outsourcing, Computer Education, Security, etc. What is being marketed by the
Company?
Answer:
The company is marketing Services of all kinds.