Plus Two Business Studies Chapter Wise Previous Questions Chapter 11 Marketing Management

Kerala Plus Two Business Studies Chapter Wise Previous Questions Chapter 11 Marketing Management

Plus Two Business Studies Marketing Management 1 Mark Important Questions

Question 1.
Marketing mix is the combination of four Ps which constitute the core of the company’s marketing system. What are they? (MARCH-2009)
Answer:
Product, Price, Place and Promotion.

Question 2.
In a classroom debate, Amitha argues that selling is coming under marketing and Smitha argues that marketing comes under selling. Whose argument is logical? (MARCH-2010)
Answer:
Amitha’s argument is logical. Selling comes under marketing.

Question 3.
The management of New Kerala Soaps Ltd. manufactuers of toilet soaps, in facing the problems of poor sales. As a marketing expert, suggest them a suitable sales promotional measure to increase their sales. (MAY-2010)
Answer:
Rebates, samples, free gifts etc.

Question 4.
Product planning and development begins with identification of consumer needs – Do you agree with this? (MARCH-2012)
Answer:
Yes. Agree

Question 5.
Mr. Vineeth is a producer of Pickles and sells them directly to the households. The above mentioned situation is an example of channel level. (MAY-2012)
a) Three
b) Two
c) One
d) Zero
Answer:
Zero level channel

Question 6.
Time utility is created by (MARCH-2013)
a) Packaging
b) Warehousing
c) Physical distribution
d) Promotion
Answer:
Warehousing

Question 7.
List out any two sales promotional activities. (MARCH-2014)
Answer:
Bonus, Sample, Coupons, Rebate, Free gift etc.

Question 8.
Short term incentives designed to encourage the buyers to make immediate purchase of a product or service is known by the name. (MAY-2016)
a) Personal selling
b) Sales promotion
c) Branding
d) Labelling
Answer:
Sales promotion

Question 9.
Jewellery is an example of (MARCH-2017)
a) Convenience Product
b) Durable Product
c) Shopping Product
d) Non-durable Product
Answer:
Durable Product

Question 10.
Advertising falls under which on the following elements of.marketing mix? (MAY-2017)
a) Promotion
Place
c) Price
Product
Answer:
a) Promotion

Plus Two Business Studies Marketing Management 2 Marks Important Questions

Question 1.
Identify four P’s in marketing mix. (MARCH-2009)
Answer:
Product, Price, Place and Promotion.

Question 2.
Find the odd one and state reason. (MAY-2009)
a) Rebate
b) Discounts
c) Dividend
d) Free gifts
Answer:
Dividend. All others are various sales promotion methods.

Question 3.
What do you mean by‘Marketing Research’? (MARCH-2013)
Answer:
Marketing Research: Marketing Research is a process of collecting and analysing market information to identify the needs and wants of the customers.

Question 4.
Complete the series: (MARCH-2015)
a) Treasury Bills -14 to 364 days
b) Call Money (?)
c) Commercial Paper (?)
Answer:
b) Call Money -1 to 14 Days
c) Commercial Paper – 90 to 180 Days

Question 5.
Colgate Palmolive Ltd. markets Colgate toothpaste in different colours with varying features. (MARCH-2015)
a) Point out the element of the product mix referred here.
b) Explain it.
Answer:
a) Depth of the mix
b) Variation in the product line for a product.

Plus Two Business Studies Marketing Management 3 Marks Important Questions

Question 1.
The management on New Cosmetics Ltd. manufacturers of cosmetics is facing the problem of poor sale. As a marketing expert suggest them a sales promotional measure to increase their sales (MARCH-2016)
Answer:
Samples, Coupons, free gifts etc.

Question 2.
Briefly explain the various levels of packaging of products available. (MAY-2015)
Answer:
Levels of Packaging
1) Primary Package: It refers to the product’s immediate container, e.g. toothpaste tube, match box, etc.
2) Secondary Packaging : It refers to additional layers of protection that are kept till the product is ready for use.
3) Transportation Packaging : It refers to further * packaging components necessary for storage, identification or transportation.

Question 3.
“Packaging performs a number of functions in the marketing of goods.” Give the important functions of packaging. (MAY-2016)
Answer:
Functions of Packaging
1. Packaging helps in identification of the products.
2. Packaging protects the product from spoilage, breakage, leakage, etc.
3. It facilitates easy transfer of goods to customers.

Question 4.
There exists confusion while using theterms ‘marketing’ and ‘selling’. Help in differentiating the terms. (MAY-2017)
Answer:

Plus Two Business Studies Marketing Management 4 Marks Important Questions

Question 1.
The manager of impact enterprises dealing in cosmetics in facing the problems of poor sales. Suggest and explain any foursales promotional measures that can be undertaken to improve the sales. (FEBRUARY – 2010)
Answer:
Techniques of Sales Promotion
1) Rebate : Offering products at special prices, to clear off excess inventory.
2) Discount: Offering products at less than maximum retail price.
3) Refund: The seller offers to refund a part of the price paid by the customer on production of some proof of purchase.
4) Free gifts : Offering another product as gift along with the purchase of a product.
5) Quantity Gift: Offering extra quantity of the product.
6) Contests : Prize contests are organized for the consumers and winners are given attractive prizes.
7) Money refund: There are certain manufacturers who promise to refund the price of the product, if it does not satisfy the consumer.
8) Samples: Offer of free samples of a product to customers at the time of introduction of a new product.

Question 2.
Marketing mix consist of 4 P’s. Explain these 4 P’s. (FEBRUARY -2010)
Answer:
Marketing Mix: It refers to the combination of four basic marketing tools (Product, Price, Place and Promotion) that a firm uses to pursue its marketing objectives in a target market.

Question 3.
‘Marketing Mix represents a blending of decisions in four inter-related elements.” – Explain. (MAY-2010)
Answer:
Merits of Sales Promotion
1) Sales promotion activities attract attention of the people.
2) Sales promotion tools can be very effective at the time of introduction of a new product in the market.
3) Sales promotion helps to increase sales.
4) It creates new customers and retains existing customers.
5) Consumers can purchase quality products at low cost.

Question 4.
Your friend, who is studying in science class asked you about marketing and what are its functions. What reply to you give? (MARCH-2014)
Answer:
Marketing : Marketing may be defined as all activities that are facilitating the movement of goods and services from producer to the ultimate consumer.
Functions of Marketing
1) Marketing Research : Marketing Research is a process of collecting and analysing market information to identify the needs and wants of the customers.
2) Marketing Planning : Another function of marketing is to develop appropriate marketing plans so that the marketing objectives of the organisation can be achieved.
3) Product Designing and Development: The products are designed and developed according to the needs and wants of the consumers. It requires decision making on various aspects such as the product to be manufactured, its packing, selling price, quality of the product, etc.
4) Standardisation and Grading: Standardisation refers to producing goods of predetermined specifications.
Grading is the process of classification of products info different groups, on the basis of quality, size, etc.
5) Packaging and Labelling : Packaging refers to designing and developing the package for the products. Packaging gives protection to goods. Also it attracts the consumers to buy the product. Labelling refers to designing and developing the label to be put on the package.
6) Branding: A brand is a name, term, sign, symbol, design or some combination of them, used to identify the products of one seller and to differentiate them from those of the competitors.
7) Customer Support Services : An important function of the marketing management is to develop customer support services such as after sales services, handling customer complaints, etc. which provides maximum satisfaction to the customers.
8) Pricing : Price of a product refers to the amount of money which customers have to pay to obtain a product. Price is an important factor affecting the success or failure of a product in the market. Price is fixed after taking into account the cost of production, desired profit, competitor’s price, govt, policy, etc.
9) Promotion : Promotion of products and services involves informing the customers about the firm’s product, its features, etc. and persuading them to purchase these products. It includes Advertising, Personal Selling, Publicity and Sales Promotion.
10) Physical Distribution : It includes decision regarding channels of distribution and physical movement of the product from the production centre to the consumption centre.
11) Transportation: Transportation involves physical movement of goods from one place to another. It removes the hindrance of place and creates time utility.
12) Storage or Warehousing : In order to maintain smooth flow of products in the market, there is a need for proper storage of the products. It stabilizes the prices of products and keep the product without damage until they are sold.

Question 5.
The aim of ‘marketing’ and ‘selling’ is to maximize profit. Yet they differ in their approach. Differentiate between these two by pointing out four differences (MARCH-2015)
Answer:

Question 6.
“Marketing mix is a combination of 4Ps.” Briefly ex-plain 4Ps of marketing mix. (MARCH-2016)
Answer:
Product, price, Place and Promotion.
Elements / 4 Ps of Marketing Mix Marketing Mix: It refers to the combination of four basic marketing tools (Product, Price, Place and Promotion) that a firm uses to pursue its marketing objectives in a target market.

Elements / 4 P’s of Marketing Mix
1) Product: Product means goods or services or ‘anything of value’, which is offered to the market for sale. The important product decisions include deciding about the features, quality, packaging, labelling and branding of the products.
2) Price : Price is the amount of money paid by the customers to pay to obtain the product. In most of the products, price affects the demand of the products. Desired profits, cost of production, competition, demands, etc. must be considered before fixing the price of a product.
3) Place : Place or Physical Distribution includes activities that make firm’s products available to the target customers. Important decision areas in this respect include selection of dealers, storage, warehousing and transportation of goods from the place of production to the place of consumption.
4) Promotion : Promotion includes activities that communicate availability, features, merits, etc. of the products to the target customers and persuade them to buy it. It includes advertising, personal selling, sales promotion and publicity to promote the sale of products.

Plus Two Business Studies Marketing Management 5 Marks Important Questions

Question 1.
Explain the elements of marketing mix. (FEBRUARY – 2009)
Answer:
Marketing Mix: It refers to the combination of four basic marketing tools (Product, Price, Place and Promotion) that a firm uses to pursue its marketing objectives in a target market.

Elements / 4 P’s of Marketing Mix
1) Product: Product means goods or services or ‘anything of value’, which is offered to the market for sale. The important product decisions include deciding about the features, quality, packaging, labelling and branding of the products.
2) Price : Price is the amount of money paid by the customers to pay to obtain the product. In most of the products, price affects the demand of the products. Desired profits, cost of production, competition, demands, etc. must be considered before fixing the price of a product.
3) Place : Place or Physical Distribution includes activities that make firm’s products available to the target customers. Important decision areas in this respect include selection of dealers, storage, warehousing and transportation of goods from the place of production to the place of consumption.
4) Promotion : Promotion includes activities that communicate availability, features, merits, etc. of the products to the target customers and persuade them to buy it. It includes advertising, personal selling, sales promotion and publicity to promote the sale of products.

Question 2.
Mr. Shahul is a newly appointed salesman in marketing department. He has no clear idea about the factors to be considered while fixing the price of a product. If he is asking you being a commerce stu-dent, which answer will you give? (MARCH -2009)
Answer:
Factors Affecting Price Determination
1) Product Cost: One of the most important factors affecting price of a product or service is its cost of production and distribution. Fixed Costs, Variable Costs and Semi- Variable Costs are to be considered for determining the price.
2) Demand : The price of a product is affected by the elasticity of demand of the product. If the demand of a product is inelastic, the firm is in a better position to fix higher prices.
3) Competition : Competitors’ prices and their anticipated reactions must be considered before fixing the price of a product. In case of high competition, it is desirable to keep price low.
4) Government and Legal Regulations: In order to protect the interest of public against unfair practices, prices of some essential products are regulated by the government under the Essential Commodities Act., e.g. Medicines.
5) Pricing Objectives : Another important factor affecting the fixation of price of a product is pricing objectives, e.g. maximisation of profit, market share, etc.

Question 3.
There are several factors influencing pricing. Classify these factors as internal and external. (FEBRUARY -2010)
Answer:
Factors Affecting Price Determination
1) Product Cost: One of the most important factors affecting price of a product or service is its cost of production and distribution. Fixed Costs, Variable Costs and Semi- Variable Costs are to be considered for determining the price.
2) Demand : The price of a product is affected by the elasticity of demand of the product. If the demand of a product is inelastic, the firm is in a better position to fix higher prices.
3) Competition : Competitors’ prices and their anticipated reactions must be considered before fixing the price of a product. In case of high competition, it is desirable to keep price low.
4) Government and Legal Regulations: In order to protect the interest of public against unfair practices, prices of some essential products are regulated by the government under the Essential Commodities Act., e.g. Medicines.
5) Pricing Objectives : Another important factor affecting the fixation of price of a product is pricing objectives, e.g. maximisation of profit, market share, etc.

Question 4.
Explain different sales promotion techniques. (MARCH-2011)
Answer:
1) Quantity Gift: Offering extra quantity of the product.
2) Contests : Prize contests are organized for the consumers and winners are given attractive prizes.
3) Money refund : There are certain manufacturers who promise to refund the price of the product, if it does not satisfy the consumer.
4) Samples : Offer of free samples of a product to customers at the time of introduction of a new product.

Question 5.
How ‘Advertising’ differs from ‘Personal Selling? (MARCH-2011)
Answer:

Question 6.
Marketing is a continuous process of identifying consumer needs and fulfilling such needs through product development, promotion and pricing. Comment. Is it different from selling? If yes, state the differences. (MARCH-2012)
Answer:
a) Marketing and selling are different.

Question 7.
What are the factors that Mr.Nassar should consider while fixing the price of a new washing soap introduced by him? (MAY-2012)
Answer:
Pricing : Price may be defined as the amount of money paid by a buyer in consideration of the purchase of a product or a service.
Factors Affecting Price Determination
1) Product Cost: One of the most important factors affecting price of a product or service is its cost of production and distribution. Fixed Costs, Variable Costs and Semi- Variable Costs are to be considered for determining the price.
2) Demand : The price of a product is affected by the elasticity of demand of the product. If the demand of a product is inelastic, the firm is in a better position to fix higher prices.
3) Competition : Competitors’ prices and their anticipated reactions must be considered before fixing the price of a product. In case of high competition, it is desirable to keep price low.
4) Government and Legal Regulations: In order to protect the interest of public against unfair practices, prices of some essential products are regulated by the government under the Essential Commodities Act., e.g. Medicines.
5) Pricing Objectives : Another important factor affecting the fixation of price of a product is pricing objectives, e.g. maximisation of profit, market share, etc.

Question 8.
“Inspite of the existence of large number of super-markets, shopping malls and e-commerce facility, personal selling still plays a crucial role in moving goods and services to required consumers.” Explain the importance of personal selling in the light of this statement in Indian context. (MARCH-2016)
Answer:
Personal Selling : Personal selling involves face to face contact between the seller and prospective customer with an intension of selling some products. It is a personal form of communication.
Features of Personal Selling
1) It is a direct presentation of the product to the consumers.
2) Develop personal relationships with the prospective customers.
3) The sales presentation can be adjusted according to the specific needs of the individual customers.
4) It is possible to take a direct feedback from the customer.
Role of Personal Selling
1) Importance to Businessmen
1) It helps in influencing the prospects about the merits of a product and thereby increasing its sale.
2) Personal selling helps to develop lasting relationship between the sales persons and the customers.
3) Personal selling plays very important role in the introduction stage of a new product.
4) Personal selling increases the competitive strength of a business organisation.
2) Importance to Customers
1) Personal selling helps the customers in identifying their needs and wants.
2) Customers get latest market information.
3) Customers get expert advice and guidance in purchasing various goods and services.
4) Personal selling induces customers to purchase new products.
3) Importance to Society
1) Personal selling offers greater employment opportunities.
2) Personal selling provides attractive career with greater opportunities.
3) Personal selling increases product standardisation and uniformity in consumption pattern.

Plus Two Business Studies Marketing Management 8 Marks Important Questions

Question 1.
Product, price, place and promotion are the four elements which constitute the core of the marketing programmes of a business.”
Elaborate the concept mentioned in the above statement and explain its significance. (MAY-2009)
Answer:
Marketing Mix: It refers to the combination of four basic marketing tools (Product, Price, Place and Promotion) that a firm uses to pursue its marketing objectives in a target market.

Elements / 4 P’s of Marketing Mix
1) Product: Product means goods or services or ‘anything of value’, which is offered to the market for sale. The important product decisions include deciding about the features, quality, packaging, labelling and branding of the products.
2) Price : Price is the amount of money paid by the customers to pay to obtain the product. In most of the products, price affects the demand of the products. Desired profits, cost of production, competition, demands, etc. must be considered before fixing the price of a product.
3) Place : Place or Physical Distribution includes activities that make firm’s products available to the target customers. Important decision areas in this respect include selection of dealers, storage, warehousing and transportation of goods from the place of production to the place of consumption.
4) Promotion : Promotion includes activities that communicate availability, features, merits, etc. of the products to the target customers and persuade them to buy it. It includes advertising, personal selling, sales promotion and publicity to promote the sale of products.

Question 2.
When a new product has been introduced in the market, the board of directors decided that advertisement is the only method for promotion of the product. (FEBRUARY – 2010)
a) If you are a marketing manager, do you agree with the decision of board of directors. Justify your comment.
b) If any other methods prevail, list out them and state its relevance.
Answer:
No. Advertisement is only one of the promotion methods. Other promotion methods are :
Personal Selling : Personal selling involves face to face contact between the seller and prospective customer with an intension of selling some products. It is a personal form of communication.
Sales Promotion : It refers to those marketing activities other than personal selling, advertising and publicity that stimulate short term sales. Sales promotion activities include offering cash discounts, sales contests, free gift offers, and free sample distribution, etc.
Techniques of Sales Promotion
1) Rebate : Offering products at special prices, to clear off excess inventory.
2) Discount: Offering products at less than maximum retail price.
3) Refund: The seller offers to refund a part of the price paid by the customer on production of some proof of purchase.
4) Free gifts : Offering another product as gift along with the purchase of a product.
5) Quantity Gift: Offering extra quantity of the product.
6) Contests : Prize contests are organized for the consumers and winners are given attractive prizes.
7) Money refund: There are certain manufacturers who promise to refund the price of the product, if it does not satisfy the consumer.
8) Samples: Offer of free samples of a product to customers at the time of introduction of a new product.

Question 3.
Jeevan Ltd. started the manufacturing of washing ma-chine. They wish to inform this to the public. What activity they have to undertake to do this? State the factors that they should consider while selecting media for this activity. (MARCH-2010)
Answer:
Advertising : Advertising may be defined as “any paid form of non-personal presentation and promotion of ideas, goods or service of an identified sponsor”.
Merits of Advertising
1. Advantages to Manufacturers and Traders
1) Advertising helps in introducing new products.
2) It stimulates the consumers to purchase the new products.
3) Advertisement helps to increase the sales of new and existing products.
4) It helps to increase the goodwill of the firm.
5) It helps to face the competition in the market.
6) It increases profit of the firm through large sales.
2. Advantages to Consumers
1) It helps the consumers to know about the various products and their prices.
2) Consumers can purchase the better products easily.
3) It helps in maintaining high standard of living.
4) It educates the consumers about the various uses of products.
3. Advantages to the Society
1) Advertisement helps to create more employment opportunities.
2) It provides an important source of income to the press, radio, T.V., etc.
3) It is a source of encouragement to artists.
4) It plays an important role in economic development of the country.
5) It reduces number of middlemen and consumers get quality products at lower cost.

Question 4.
“The basic goal of marketing management is to achieve the objectives of business.” In the light of the above statement, you have to explain. (MARCH-2010)
i) What is Marketing?
ii) What is Marketing Management?
iii) What are the objectives of marketing management?
Answer:
Marketing : Marketing may be defined as all activities that are facilitating the movement of goods and services from producer to the ultimate consumer
Marketing Management : It refers to planning, organising, directing and controlling of the activities.
Role / Objectives of Marketing
1) Role in a Firm : Modern marketing emphasises that customer satisfaction is the key to the survival and growth of an organization. A satisfied customer is the most valuable asset of any firm. So product must be designed according to the needs and wants of the consumers, ensure fair distribution and determine an appropriate pricing strategy.
2) Role in the Economy : Marketing plays a significant role in the economic development of a nation. Marketing helps to increase the standard of living of the people by providing quality goods at reasonable prices. Marketing accelerates the economic activity leading to higher incomes, more consumption and increased savings and investment.

Question 5.
Buying and assembling is an important function of marketing. What are other facilitating functions? (MARCH-2012)
Answer:
Market: It refers to a place where the buyers and sellers meet each other for sale and purchase of the commodity.
Marketing : Marketing may be defined as all activities that are facilitating the movement of goods and services from producer to the ultimate consumer.
Functions of Marketing
1) Marketing Research : Marketing Research is a process of collecting and analysing market information to identify the needs and wants of the customers.
2) Marketing Planning : Another function of marketing is to develop appropriate marketing plans so that the marketing objectives of the organisation can be achieved.
3) Product Designing and Development: The products are designed and developed according to the needs and wants of the consumers. It requires decision making on various aspects such as the product to be manufactured, its packing, selling price, quality of the product, etc.
4) Standardisation and Grading: Standardisation refers to producing goods of predetermined specifications.
Grading is the process of classification of products info different groups, on the basis of quality, size, etc.
5) Packaging and Labelling : Packaging refers to designing and developing the package for the products. Packaging gives protection to goods. Also it attracts the consumers to buy the product. Labelling refers to designing and developing the label to be put on the package.
6) Branding: A brand is a name, term, sign, symbol, design or some combination of them, used to identify the products of one seller and to differentiate them from those of the competitors.
7) Customer Support Services : An important function of the marketing management is to develop customer support services such as after sales services, handling customer complaints, etc. which provides maximum satisfaction to the customers.
8) Pricing : Price of a product refers to the amount of money which customers have to pay to obtain a product. Price is an important factor affecting the success or failure of a product in the market. Price is fixed after taking into account the cost of production, desired profit, competitor’s price, govt, policy, etc.
9) Promotion : Promotion of products and services involves informing the customers about the firm’s product, its features, etc. and persuading them to purchase these products. It includes Advertising, Personal Selling, Publicity and Sales Promotion.
10) Physical Distribution : It includes decision regarding channels of distribution and physical movement of the product from the production centre to the consumption centre.
11) Transportation: Transportation involves physical movement of goods from one place to another. It removes the hindrance of place and creates time utility.
12) Storage or Warehousing : In order to maintain smooth flow of products in the market, there is a need for proper storage of the products. It stabilizes the prices of products and keep the product without damage until they are sold.

Question 6.
What is advertising? Explain its benefits to manufacturers, customers and society. (MARCH-2012)
Answer:
Advertising : Advertising may be defined as “any paid form of non-personal presentation and promotion of ideas, goods or service of an identified sponsor”.
Merits of Advertising
1. Advantages to Manufacturers and Traders
1) Advertising helps in introducing new products.
2) It stimulates the consumers to purchase the new products.
3) Advertisement helps to increase the sales of new and existing products.
4) It helps to increase the goodwill of the firm.
5) It helps to face the competition in the market.
6) It increases profit of the firm through large sales.
2. Advantages to Consumers
1) It helps the consumers to know about the various products and their prices.
2) Consumers can purchase the better products easily.
3) It helps in maintaining high standard of living.
4) It educates the consumers about the various uses of products.
3. Advantages to the Society
1) Advertisement helps to create more employment opportunities.
2) It provides an important source of income to the press, radio, T.V., etc.
3) It is a source of encouragement to artists.
4) It plays an important role in economic development of the country.
5) It reduces number of middlemen and consumers get quality products at lower cost.

Question 7.
Mr. Hari has started a new branch of hair fixing shop at Calicut. How can convey this information to the present and prospective customers? Explain the benefits and evils of this advertising. (MAY-2012)
Answer:
Advertising : Advertising may be defined as “any paid form of non-personal presentation and promotion of ideas, goods or service of an identified sponsor”.
Merits of Advertising
1. Advantages to Manufacturers and Traders
1) Advertising helps in introducing new products.
2) It stimulates the consumers to purchase the new products.
3) Advertisement helps to increase the sales of new and existing products.
4) It helps to increase the goodwill of the firm.
5) It helps to face the competition in the market.
6) It increases profit of the firm through large sales.
2. Advantages to Consumers
1) It helps the consumers to know about the various products and their prices.
2) Consumers can purchase the better products easily.
3) It helps in maintaining high standard of living.
4) It educates the consumers about the various uses of products.
3. Advantages to the Society
1) Advertisement helps to create more employment opportunities.
2) It provides an important source of income to the press, radio, T.V., etc.
3) It is a source of encouragement to artists.
4) It plays an important role in economic development of the country.
5) It reduces number of middlemen and consumers get quality products at lower cost.

Question 8.
What is marketing? Explain the important functions involved in marketing? (MAY-2012)
Answer:
Marketing : Marketing may be defined as all activities that are facilitating the movement of goods and services from producer to the ultimate consumer.
Functions of Marketing
1) Marketing Research : Marketing Research is a process of collecting and analysing market information to identify the needs and wants of the customers.
2) Marketing Planning : Another function of marketing is to develop appropriate marketing plans so that the marketing objectives of the organisation can be achieved.
3) Product Designing and Development: The products are designed and developed according to the needs and wants of the consumers. It requires decision making on various aspects such as the product to be manufactured, its packing, selling price, quality of the product, etc.
4) Standardisation and Grading: Standardisation refers to producing goods of predetermined specifications.
Grading is the process of classification of products info different groups, on the basis of quality, size, etc.
5) Packaging and Labelling : Packaging refers to designing and developing the package for the products. Packaging gives protection to goods. Also it attracts the consumers to buy the product. Labelling refers to designing and developing the label to be put on the package.
6) Branding: A brand is a name, term, sign, symbol, design or some combination of them, used to identify the products of one seller and to differentiate them from those of the competitors.
7) Customer Support Services : An important function of the marketing management is to develop customer support services such as after sales services, handling customer complaints, etc. which provides maximum satisfaction to the customers.
8) Pricing : Price of a product refers to the amount of money which customers have to pay to obtain a product. Price is an important factor affecting the success or failure of a product in the market. Price is fixed after taking into account the cost of production, desired profit, competitor’s price, govt, policy, etc.
9) Promotion : Promotion of products and services involves informing the customers about the firm’s product, its features, etc. and persuading them to purchase these products. It includes Advertising, Personal Selling, Publicity and Sales Promotion.
10) Physical Distribution : It includes decision regarding channels of distribution and physical movement of the product from the production centre to the consumption centre.
11) Transportation: Transportation involves physical movement of goods from one place to another. It removes the hindrance of place and creates time utility.
12) Storage or Warehousing : In order to maintain smooth flow of products in the market, there is a need for proper storage of the products. It stabilizes the prices of products and keep the product without damage until they are sold.

Question 9.
After completing his MBA in marketing Mr. Johnson joined a new multinational company as Marketing Manager. He called a meeting of his subordinate marketing executives soon after his appointment. He wishes to deliver a talk in functions of marketing. What points he should include in his talk? (MARCH -2013)
Answer:
Marketing : Marketing may be defined as all activities that are facilitating the movement of goods and services from producer to the ultimate consumer.
Functions of Marketing
1) Marketing Research : Marketing Research is a process of collecting and analysing market information to identify the needs and wants of the customers.
2) Marketing Planning : Another function of marketing is to develop appropriate marketing plans so that the marketing objectives of the organisation can be achieved.
3) Product Designing and Development: The products are designed and developed according to the needs and wants of the consumers. It requires decision making on various aspects such as the product to be manufactured, its packing, selling price, quality of the product, etc.
4) Standardisation and Grading: Standardisation refers to producing goods of predetermined specifications.
Grading is the process of classification of products info different groups, on the basis of quality, size, etc.
5) Packaging and Labelling : Packaging refers to designing and developing the package for the products. Packaging gives protection to goods. Also it attracts the consumers to buy the product. Labelling refers to designing and developing the label to be put on the package.
6) Branding: A brand is a name, term, sign, symbol, design or some combination of them, used to identify the products of one seller and to differentiate them from those of the competitors.
7) Customer Support Services : An important function of the marketing management is to develop customer support services such as after sales services, handling customer complaints, etc. which provides maximum satisfaction to the customers.
8) Pricing : Price of a product refers to the amount of money which customers have to pay to obtain a product. Price is an important factor affecting the success or failure of a product in the market. Price is fixed after taking into account the cost of production, desired profit, competitor’s price, govt, policy, etc.
9) Promotion : Promotion of products and services involves informing the customers about the firm’s product, its features, etc. and persuading them to purchase these products. It includes Advertising, Personal Selling, Publicity and Sales Promotion.
10) Physical Distribution : It includes decision regarding channels of distribution and physical movement of the product from the production centre to the consumption centre.
11) Transportation: Transportation involves physical movement of goods from one place to another. It removes the hindrance of place and creates time utility.
12) Storage or Warehousing : In order to maintain smooth flow of products in the market, there is a need for proper storage of the products. It stabilizes the prices of products and keep the product without damage until they are sold.

Question 10.
The amount spent on advertising is a national waste.’ (MARCH-2013)
i) Do-you agree with this statement?
ii) Give merits and demerits of advertisement.
Answer:
i) No
ii) Merits of Advertising
1. Advantages to Manufacturers and Traders
1) Advertising helps in introducing new products.
2) It stimulates the consumers to purchase the new products.
3) Advertisement helps to increase the sales of new and existing products.
4) It helps to increase the goodwill of the firm.
5) It helps to face the competition in the market.
6) It increases profit of the firm through large sales.
2. Advantages to Consumers
1) It helps the consumers to know about the various products and their prices.
2) Consumers can purchase the better products easily.
3) It helps in maintaining high standard of living.
4) It educates the consumers about the various uses of products.
3. Advantages to the Society
1) Advertisement helps to create more employment opportunities.
2) It provides an important source of income to the press, radio, T.V., etc.
3) It is a source of encouragement to artists.
4) It plays an important role in economic development of the country.
5) It reduces number of middlemen and consumers get quality products at lower cost.
Disadvantages / Objections to Advertising
1) Advertisement encourages consumers to buy unwanted goods.
2) Most of the advertisements are misleading.
3) Advertisement may lead to monopoly of a brand.
4) Advertisement is a costly affair. So, ultimately it increases the price of the product.
5) Advertisement persuades people to purchase even the inferior products.
6) It undermines social and ethical values.

Question 11.
‘ What is Marketing? Write an essay on objectives of marketing management. (MARCH-2014)
Answer:
Role / Objectives of Marketing
1) Role in a Firm : Modern marketing emphasises that customer satisfaction is the key to the survival and growth of an organization. A satisfied customer is the most valuable asset of any firm. So product must be designed according to the needs and wants of the consumers, ensure fair distribution and determine an appropriate pricing strategy.
2) Role in the Economy : Marketing plays a significant role in the economic development of a nation. Marketing helps to increase the standard of living of the people by providing quality goods at reasonable prices. Marketing accelerates the economic activity leading to higher incomes, more consumption and increased savings and investment.

Question 12.
What are the different components of marketing mix? (MARCH-2014)
Answer:
Marketing Mix: It refers to the combination of four basic marketing tools (Product, Price, Place and Promotion) that a firm uses to pursue its marketing objectives in a target market.

Elements / 4 P’s of Marketing Mix
1) Product: Product means goods or services or ‘anything of value’, which is offered to the market for sale. The important product decisions include deciding about the features, quality, packaging, labelling and branding of the products.
2) Price : Price is the amount of money paid by the customers to pay to obtain the product. In most of the products, price affects the demand of the products. Desired profits, cost of production, competition, demands, etc. must be considered before fixing the price of a product.
3) Place : Place or Physical Distribution includes activities that make firm’s products available to the target customers. Important decision areas in this respect include selection of dealers, storage, warehousing and transportation of goods from the place of production to the place of consumption.
4) Promotion : Promotion includes activities that communicate availability, features, merits, etc. of the products to the target customers and persuade them to buy it. It includes advertising, personal selling, sales promotion and publicity to promote the sale of products.

Question 13.
Mr. Mohan Das, the proprietor of Das Automobiles Ltd. wants to open a branch of its business at Nagercoil. He is not aware of any sales promotion measures. As a marketing expert, you are requested to narrate him the various objectives of sales promotion and the different sales promotion techniques suitable for his business. (MARCH-2015)
Answer:
Sales Promotion : It refers to those marketing activities other than personal selling, advertising and publicity that stimulate short term sales. Sales promotion activities include offering cash discounts, sales contests, free gift offers, and free sample distribution, etc.
Techniques of Sales Promotion
1) Rebate : Offering products at special prices, to clear off excess inventory.
2) Discount: Offering products at less than maximum retail price.
3) Refund: The seller offers to refund a part of the price paid by the customer on production of some proof of purchase.
4) Free gifts : Offering another product as gift along with the purchase of a product.
5) Quantity Gift: Offering extra quantity of the product.
6) Contests : Prize contests are organized for the consumers and winners are given attractive prizes.
7) Money refund: There are certain manufacturers who promise to refund the price of the product, if it does not satisfy the consumer.
8) Samples: Offer of free samples of a product to customers at the time of introduction of a new product.

Question 14.
“It is often criticized that “advertisement is a wasteful activity and an unnecessary cost”. You are asked to establish the statement by highlighting the various arguments against advertisement. (MARCH-2015)
Answer:
i) Advertising: Advertising may be defined as “any paid form of non-personal presentation and pro-motion of ideas, goods or service of an identified sponsor”.
ii) Disadvantages / Objections to Advertising
1) Advertisement encourages consumers to buy unwanted goods.
2) Most of the advertisements are misleading.
3) Advertisement may lead to monopoly of a brand.
4) Advertisement is a costly affair. So, ultimately it increases the price of the product.
5) Advertisement persuades people to purchase even the inferior products.
6) It undermines social and ethical values.

Question 15.
What do you mean by the term marketing? Explain its different functions. (MARCH-2016)
Answer:
Functions of Marketing
1) Marketing Research : Marketing Research is a process of collecting and analysing market information to identify the needs and wants of the customers.
2) Marketing Planning : Another function of marketing is to develop appropriate marketing plans so that the marketing objectives of the organisation can be achieved.
3) Product Designing and Development: The products are designed and developed according to the needs and wants of the consumers. It requires decision making on various aspects such as the product to be manufactured, its packing, selling price, quality of the product, etc.
4) Standardisation and Grading: Standardisation refers to producing goods of predetermined specifications.
Grading is the process of classification of products info different groups, on the basis of quality, size, etc.
5) Packaging and Labelling : Packaging refers to designing and developing the package for the products. Packaging gives protection to goods. Also it attracts the consumers to buy the product. Labelling refers to designing and developing the label to be put on the package.
6) Branding: A brand is a name, term, sign, symbol, design or some combination of them, used to identify the products of one seller and to differentiate them from those of the competitors.
7) Customer Support Services : An important function of the marketing management is to develop customer support services such as after sales services, handling customer complaints, etc. which provides maximum satisfaction to the customers.
8) Pricing : Price of a product refers to the amount of money which customers have to pay to obtain a product. Price is an important factor affecting the success or failure of a product in the market. Price is fixed after taking into account the cost of production, desired profit, competitor’s price, govt, policy, etc.
9) Promotion : Promotion of products and services involves informing the customers about the firm’s product, its features, etc. and persuading them to purchase these products. It includes Advertising, Personal Selling, Publicity and Sales Promotion.
10) Physical Distribution : It includes decision regarding channels of distribution and physical movement of the product from the production centre to the consumption centre.
11) Transportation: Transportation involves physical movement of goods from one place to another. It removes the hindrance of place and creates time utility.
12) Storage or Warehousing : In order to maintain smooth flow of products in the market, there is a need for proper storage of the products. It stabilizes the prices of products and keep the product without damage until they are sold.

Question 16.
“Marketing is concerned with exchange of goods and service from producers to consumers by enhancing the satisfaction level of consumers.” Describe the various functions to be addressed by marketing in order to fulfill the above objective. (MAY-2016)
Answer:
Functions of Marketing
1) Marketing Research : Marketing Research is a process of collecting and analysing market information to identify the needs and wants of the customers.
2) Marketing Planning : Another function of marketing is to develop appropriate marketing plans so that the marketing objectives of the organisation can be achieved.
3) Product Designing and Development: The products are designed and developed according to the needs and wants of the consumers. It requires decision making on various aspects such as the product to be manufactured, its packing, selling price, quality of the product, etc.
4) Standardisation and Grading: Standardisation refers to producing goods of predetermined specifications.
Grading is the process of classification of products info different groups, on the basis of quality, size, etc.
5) Packaging and Labelling : Packaging refers to designing and developing the package for the products. Packaging gives protection to goods. Also it attracts the consumers to buy the product. Labelling refers to designing and developing the label to be put on the package.
6) Branding: A brand is a name, term, sign, symbol, design or some combination of them, used to identify the products of one seller and to differentiate them from those of the competitors.
7) Customer Support Services : An important function of the marketing management is to develop customer support services such as after sales services, handling customer complaints, etc. which provides maximum satisfaction to the customers.
8) Pricing : Price of a product refers to the amount of money which customers have to pay to obtain a product. Price is an important factor affecting the success or failure of a product in the market. Price is fixed after taking into account the cost of production, desired profit, competitor’s price, govt, policy, etc.
9) Promotion : Promotion of products and services involves informing the customers about the firm’s product, its features, etc. and persuading them to purchase these products. It includes Advertising, Personal Selling, Publicity and Sales Promotion.
10) Physical Distribution : It includes decision regarding channels of distribution and physical movement of the product from the production centre to the consumption centre.
11) Transportation: Transportation involves physical movement of goods from one place to another. It removes the hindrance of place and creates time utility.
12) Storage or Warehousing : In order to maintain smooth flow of products in the market, there is a need for proper storage of the products. It stabilizes the prices of products and keep the product without damage until they are sold.

Question 17.
No product or service can be launched without a proper and accurate price tag in place. Discuss about the importance of fixation of prices and the various factors affecting price determination. (MAY-2016)
Answer:
Pricing : Price may be defined as the amount of money paid by a buyer in consideration of the purchase of a product or a service. The success or failure of a product depends on the pricing strategy of a firm.
Factors Affecting Price Determination
Factors Affecting Price Determination
1) Product Cost: One of the most important factors affecting price of a product or service is its cost of production and distribution. Fixed Costs, Variable Costs and Semi- Variable Costs are to be considered for determining the price.
2) Demand : The price of a product is affected by the elasticity of demand of the product. If the demand of a product is inelastic, the firm is in a better position to fix higher prices.
3) Competition : Competitors’ prices and their anticipated reactions must be considered before fixing the price of a product. In case of high competition, it is desirable to keep price low.
4) Government and Legal Regulations: In order to protect the interest of public against unfair practices, prices of some essential products are regulated by the government under the Essential Commodities Act., e.g. Medicines.
5) Pricing Objectives : Another important factor affecting the fixation of price of a product is pricing objectives, e.g. maximisation of profit, market share, etc.

Question 18.
After completing her Post Graduate Diploma in Marketing, Smt. Jayasree was appointed as the Marketing Manager of Alpha Ltd. She is of the opinion that marketing effort of her organization should be formulated after analysing the concept behind it. Explain different marketing management concepts she should consider before formulating her marketing strategies. (MARCH-2017)
Answer:
Functions of Marketing
1) Marketing Research : Marketing Research is a process of collecting and analysing market information to identify the needs and wants of the customers.
2) Marketing Planning : Another function of marketing is to develop appropriate marketing plans so that the marketing objectives of the organisation can be achieved.
3) Product Designing and Development: The products are designed and developed according to the needs and wants of the consumers. It requires decision making on various aspects such as the product to be manufactured, its packing, selling price, quality of the product, etc.
4) Standardisation and Grading: Standardisation refers to producing goods of predetermined specifications.
Grading is the process of classification of products info different groups, on the basis of quality, size, etc.
5) Packaging and Labelling : Packaging refers to designing and developing the package for the products. Packaging gives protection to goods. Also it attracts the consumers to buy the product. Labelling refers to designing and developing the label to be put on the package.
6) Branding: A brand is a name, term, sign, symbol, design or some combination of them, used to identify the products of one seller and to differentiate them from those of the competitors.
7) Customer Support Services : An important function of the marketing management is to develop customer support services such as after sales services, handling customer complaints, etc. which provides maximum satisfaction to the customers.
8) Pricing : Price of a product refers to the amount of money which customers have to pay to obtain a product. Price is an important factor affecting the success or failure of a product in the market. Price is fixed after taking into account the cost of production, desired profit, competitor’s price, govt, policy, etc.
9) Promotion : Promotion of products and services involves informing the customers about the firm’s product, its features, etc. and persuading them to purchase these products. It includes Advertising, Personal Selling, Publicity and Sales Promotion.
10) Physical Distribution : It includes decision regarding channels of distribution and physical movement of the product from the production centre to the consumption centre.
11) Transportation: Transportation involves physical movement of goods from one place to another. It removes the hindrance of place and creates time utility.
12) Storage or Warehousing : In order to maintain smooth flow of products in the market, there is a need for proper storage of the products. It stabilizes the prices of products and keep the product without damage until they are sold.
Pricing : Price may be defined as the amount of money paid by a buyer in consideration of the purchase of a product or a service.
Factors Affecting Price Determination
1) Product Cost: One of the most important factors affecting price of a product or service is its cost of production and distribution. Fixed Costs, Variable Costs and Semi- Variable Costs are to be considered for determining the price.
2) Demand : The price of a product is affected by the elasticity of demand of the product. If the demand of a product is inelastic, the firm is in a better position to fix higher prices.
3) Competition : Competitors’ prices and their anticipated reactions must be considered before fixing the price of a product. In case of high competition, it is desirable to keep price low.
4) Government and Legal Regulations: In order to protect the interest of public against unfair practices, prices of some essential products are regulated by the government under the Essential Commodities Act., e.g. Medicines.
5) Pricing Objectives : Another important factor affecting the fixation of price of a product is pricing objectives, e.g. maximisation of profit, market share, etc.

Question 19.
“It is a process of giving name or sign or symbol to a product.” Identify the definition and explain its ad-vantages to the marketers and consumers. (MAY-2016)
Answer:
a) Branding
b) Branding: The process of giving a name or a sign ora symbol, etc. to a product is called branding. Advantages of branding Refer Section Branding : The process of giving a name or a sign or a symbol, etc. to a product is called branding. Terms related with branding
1) Brand : A brand is a name, term, sign, symbol, design or some combination of them, used to identify the products of one seller or group of sellers and to differentiate them from those of the competitors.
2) Brand Name: That part of a brand, which can be vocalized i.e. can be spoken is called a brand name, e.g. Asian Paints, Maggie, Lifebuoy, Dunlop, etc.
3) Brand Mark: A brand mark is that part of a brand which can be recognized but cannot be vocalized,
i. e. non-utterable. It appears in the form of a symbol, design or distinct colour scheme. For example:‘Girl’of Amul.
4) Trade Mark : A brand or part of a brand that is given legal protection against its use by other firms is called trade mark. The firm which got its brand registered with the government, gets the exclusive right for its use.-
Advantages of branding
1) Advantages to the Firm
1) Branding helps a firm in distinguishing its product from that of its competitors.
2) It helps in advertising and display Programmes.
3) Branding enables a firm to charge competitive price for its products than that charged by its competitors.
4) It helps in Introduction of new product in the market.
2) Advantages to Customers
1) Branding helps the customers in identifying the products.
2) Branding ensures a particular level of quality of the product.
3) Some brands become status symbols because of their quality It creates a feeling of proud and satisfaction in the consumers.

Question 20.
Mr. Alphi. the Head of Marketing Division in a Private Ltd. company is confronted with the issue of pushing the demand of its major product. As part of the promotion of the product, he has made up his mind to go for intense advertising campaign. Before committing to the decision. He wants to weigh the merits and demerits of advertising. Assist him in enlisting the merits and demerits of advertising. (MAY-2017)
Answer:
a) Advertising: Advertising may be defined as “any paid form of non-personal presentation and pro-motion of ideas, goods or service of an identified sponsor”.
b) Merits of Advertising
Merits of Advertising
1. Advantages to Manufacturers and Traders
1) Advertising helps in introducing new products.
2) It stimulates the consumers to purchase the new products.
3) Advertisement helps to increase the sales of new and existing products.
4) It helps to increase the goodwill of the firm.
5) It helps to face the competition in the market.
6) It increases profit of the firm through large sales.
2. Advantages to Consumers
1) It helps the consumers to know about the various products and their prices.
2) Consumers can purchase the better products easily.
3) It helps in maintaining high standard of living.
4) It educates the consumers about the various uses of products.
3. Advantages to the Society
1) Advertisement helps to create more employment opportunities.
2) It provides an important source of income to the press, radio, T.V., etc.
3) It is a source of encouragement to artists.
4) It plays an important role in economic development of the country.
5) It reduces number of middlemen and consumers get quality products at lower cost.
Disadvantages / Objections to Advertising
1) Advertisement encourages consumers to buy unwanted goods.
2) Most of the advertisements are misleading.
3) Advertisement may lead to monopoly of a brand.
4) Advertisement is a costly affair. So, ultimately it increases the price of the product.
5) Advertisement persuades people to purchase even the inferior products.
6) It undermines social and ethical values.

Question 21.
One of the most important decisions that a marketer has to take with regard to a product is its branding. Explain the various terms associated with branding process.(MAY-2017)
Also narrate the characteristics, a good brand name is required to possess.
Answer:
Branding : The process of giving a name or a sign or a symbol, etc. to a product is called branding. Terms related with branding Refer Section
Branding : The process of giving a name or a sign or a symbol, etc. to a product is called branding. Terms related with branding
1) Brand : A brand is a name, term, sign, symbol, design or some combination of them, used to identify the products of one seller or group of sellers and to differentiate them from those of the competitors.
2) Brand Name: That part of a brand, which can be vocalized i.e. can be spoken is called a brand name, e.g. Asian Paints, Maggie, Lifebuoy, Dunlop, etc.
3) Brand Mark: A brand mark is that part of a brand which can be recognized but cannot be vocalized,
i. e. non-utterable. It appears in the form of a symbol, design or distinct colour scheme. For example:‘Girl’of Amul.
4) Trade Mark : A brand or part of a brand that is given legal protection against its use by other firms is called trade mark. The firm which got its brand registered with the government, gets the exclusive right for its use.
Qualities of a Good Brand Name
1) The brand name should be short, easy to pronounce, spell, recognise and remember.
2) A brand should suggest the product’s benefits and qualities.
3) A brand name should be distinctive.
4) Brand name should be adaptable to packing or labelling requirements, to different advertising media and to different languages.
5) The brand name should be sufficiently versatile to accommodate new products.
6) It should be capable of being registered and protected legally.

Plus Two Business Studies Chapter Wise Previous Questions and Answers