XII C-BUSINESS STUDIES

MARKETING

1. A growing concern about the disposal and management of packaging waste.

Every item bought is delivered with excess packaging and sometimes even non-
biodegradable materials are used.
In the context of above case:

1. Name the other two levels of packaging that the marketers may be using besides
the immediate package.
2. Describe briefly any two points highlighting the functions of packaging.

1. Secondary packaging and Transportation packaging.

2. The functions of packaging in the marketing of goods and services is explained
below:
o Product Identification: Packaging facilitates the identification of the
product with the use of different colours like wrapper of maggi noodles is red
whereas yippe noodles are sold in orange colour packaging. Also, the shape
of different brands of cold drinks bottles is different.
o Product Protection: One of the basic purposes of packaging is to
safeguard the contents of a product from any kind of damage due to
mishandling, adverse weather conditions etc. during the activities related to
physical distribution like storing, transportation etc.

2. 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?

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. Identify the true exchange mechanisms in the following cases:

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 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 Rs. 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.
3.

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

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 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.

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 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

5. 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).

6. 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

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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.

7. 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.

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 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:
 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.
 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.
 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.
 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.
 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.
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).

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