Before buying a thing, a customer analyses its cost and the satisfaction that he is to get from it. He will buy the thing only when he feels that its satisfaction will be more than its cost. Seller is to make the thing while keeping in mind this tendency of the buyer. A seller, who does not pay heed to the importance that the buyer gives to the product, certainly lags behind in competition. Identify the feature of marketing highlighted in the above paragraph.
a) Needs and wants
b) Creating a market offering
c) Customer value
d) Exchange Mechanism
✔ Answer
c) Customer value
To improve upon its competitive edge, Ratan Limited has changed the packaging of its hair care products. They are now available in a consumer-friendly design, which has a nozzle attached to the lid so that at the time of usage, the consumer does not need to open the cap of the bottle. Identify the marketing function being performed in the given case.
a) Product design and development
b) Customer support service
c) Promotion
d) Labeling
✔ Answer
a) Product design and development
Amazon and Flipkart sell goods through:
a) Direct channel of distribution
b) One level channel of distribution
c) Two channels of distributions
d) Three channels of distributions
✔ Answer
a) Direct channel of distribution
Identify the component of branding being depicted in the given image. (Image placeholder: a visual symbol/logo)
a) Brand name
b) Brand Mark
c) Trade mark
d) Generic Name
✔ Answer
b) Brand Mark
Within two years of its inception, Bharti Limited has created a very positive reputation about itself and its products in the eyes of general public by participating extensively in various social welfare programs. Identify the components of promotion mix described in the given line.
a) Advertising
b) Personal selling
c) Public relation
d) Sales Promotion
✔ Answer
c) Public relation
A beauty goods manufacturing firm has decided to determine client demands in order to begin successful marketing of the clothing it produces, and is conducting a SWOT analysis to accomplish so (Strength, Weakness, Opportunity and Threat Analysis). The organisation is working hard to achieve its goals. It has decided to create a blueprint for how much production it will accomplish, how much work it will put into promotion, and all other significant measures it will do to reach its goals. However, the business has one flaw that it would like to address. Last year, the physical movement of the company's prepared items was not done effectively, and the company wants to make sure it is done correctly this year. It has established a separate department to appropriately carry out this task. I'm hoping for a better future for the company.
In the preceding example, which marketing functions were highlighted?
(a) Marketing planning and transportation
(b) Transportation and identifying customer needs
(c) Gathering and analysing market information and planning
(d) Both a and c
✔ Answer
(d) Both a and c
Assertion (A): Customer support services are extremely successful at generating repeat sales and building brand loyalty for a product.
Reason (R): All of the services are aimed at raising the dealers' profit margins, which is the key to current marketing success.
(a) Both A and R are correct
(b) A is correct R is incorrect
(c) Both A and R are correct and R is the correct explanation of R
(d) Both A and R are correct and R is not the correct explanation of R
✔ Answer
(b) A is correct R is incorrect
Selling activity is done ________ the transfer of the title of the goods:
a) During
b) After
c) Before
d) None of the above
✔ Answer
a) During
A tea company is attempting to expand its operations. It recognises that the function of the intermediaries will be crucial in this regard. A conference of top management is called, and the causes that are causing the distributors' potential to be underutilised are discussed. Intermediaries play a critical function in a product like tea. The company has decided to offer them discounts and to launch a robust promotional effort to entice them to participate. In the example above, which aspect of the marketing mix is highlighted?
(a) Promotion
(b) Price
(c) Place
(d) Product
✔ Answer
(c) Place
Assertion (A): The marketing concept strives to identify and meet the wants and requirements of customers in an efficient manner.
Reason (R): Products are purchased based on their quality and other attributes, according to the marketing theory.
(a) Both A and R are correct
(b) A is correct R is incorrect
(c) Both A and R are correct and R is the correct explanation of R
(d) Both A and R are correct and R is not the correct explanation of R
✔ Answer
(b) A is correct R is incorrect
Amodita was a student of Business Studies of Class XII. Her father was a farmer who grew different varieties of rice and was well-versed in the various aspects of rice cultivation. He was also selected by the government for a pilot-project on rice cultivation. As a project work in Business Studies, she decided to study the feasibility of marketing good quality rice at a reasonable price. Her father suggested her to use the 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 was difficult to achieve uniformity in the output. To differentiate the product from its competitors, she gave it the name of 'Malabari Organic Rice' and classified it into three different varieties, namely — Popular, Classic and Supreme, based on the quality. She felt that these names would help her in product differentiation.
Explain the three functions of marketing with reference to the above paragraph.
✔ Answer
- Gathering and analyzing market information: The prime focus of marketing is to 'find wants and fill them'. Therefore, it is absolutely essential for a company to study the needs and preferences of its target market in order to satisfy their needs and wants optimally.
- Standardisation and grading: Standardisation refers to the process of manufacturing goods as per predetermined specifications. Grading refers to the process of classifying goods on the basis of certain criteria like quality, size etc. Usually, agricultural products are subject to grading.
- Branding: Branding is the process of assigning a name (brand name), sign or symbol (brand mark) or a combination of all to a product. It is considered to be a very important decision by the marketers because it facilitates product differentiation. This helps the company to obtain a desirable market share.
Amav is a distributor 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 predetermined 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. Advantages of Standardisation:
- The buyers get standard quality products which are according to the given standards.
- The time of buyer is saved as there is no need to inspect the product.
Advantages of Grading:
- Grading helps in categorizing products which are not produced as per standards for example natural products like wheat, rice, etc.
- Grading helps in getting good price for premium quality products and saves time of seller as well as buyer.
As a project work in Business Studies, the Commerce students of Himachal Public School, Himachal Pradesh thought of preparing apple jam from the apples grown in their school premises and sell it in the school annual fete. They approached the Principal who not only appreciated the students but also gave her consent for the same. The school decided to donate 50% of the revenue generated from the sale to a nearby orphanage. After the school fete, the school also decided to extend this project by providing employment to visually challenged and disadvantaged sections of society on regular basis.
1. Explain any two product-related decisions which the students had to take.
2. Suggest any two functions that the 'label' of the jam-bottle must perform.
✔ Answer
1. The two product-related decisions which the students had to take are
branding and
packaging.
2. The two important functions that the label of the jam-bottle must perform are:
- Describe the product and specify its contents: The label on the jam bottle must provide information about the core function of the product i.e. how and why is the product is likely to be beneficial to the prospective buyer. It should educate them about the usage and precautions related to the product. It also gives detailed information about the ingredients of the product.
- Helps in identification of the product or brand: The label should contain the logo, brand name, tagline, name and address of the manufacturer etc. of the product for easy identification of the product.
Give three levels of packaging.
✔ Answer
- Primary packaging: Product's immediate container is known as primary packaging like in case of a matchbox.
- Secondary packaging: Additional layers of protection that are kept till the product is ready for use, e.g., antiseptic tube or Boro Plus Cream comes in a cardboard box.
- Transportation packaging: Packaging necessary for storage or transportation, e.g., corrugated boxes containing toothpaste tubes in 50, 100 or 200 units.
Packaging has acquired great significance in the marketing of goods. In the light of this statement, state any four functions of packaging.
✔ Answer
- Product protection: The content of product is protected against spoilage, breakage, leakage, damage, climatic effects, etc. due to proper packaging. This protection facilitates its storage, distribution and transportation.
- Product identification: Packaging becomes a mean of product differentiation and identification for some brands.
- Facilitating use of the product: Packaging makes it convenient for the consumers to open, handle and use the product.
- Product promotion: Packaging has become a way of promoting the product. With rising standard of health and hygiene, people are asking for packed products instead of loose ones. Further, innovative packs are increasing the scope of marketing of product.
Though branding adds to the cost, it provides several advantages to the consumers. In the light of the statement, state any four advantages of branding to customers.
✔ Answer
- It helps in identification of products.
- It helps in ensuring a particular level of quality of product.
- It raises the satisfaction level of customers using a particular reputed brand.
- Appropriate packaging contributes to the convenience in handling the product.
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:
- 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.
- Functional benefit: She thinks that the purpose of a car is only as a transportation vehicle.
- Psychological benefit: 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.
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 term to the potential customers on one of its mobile models. A ₹40,000 mobile can now be purchased through credit and the installments to be paid will be 10 of ₹4,000 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 step 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?
✔ 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.
"Coconut Joy Ltd." are the manufacturer of vegetarian frozen dessert food products made with coconut milk, agave syrup and other certified ingredients. The founders of the company Lovely and Lalita originally developed this treat to meet their own needs but found that their friends and families around were also keen to use the products. It was not only the vegetarians, but also those who could not get enough environment friendly sustainable food, that appreciated the product. It did not take long for Lovely and Lalita to recognise the potential of their little venture. In the beginning they started from their home with the product being sold through local family parties that enable guests to personally meet the owner. This helped to establish strong connections with the prospective buyers and the company could put the product on shelves of natural food store. The company used all marketing activities to grow and expand. The company began sponsoring booths at festivals, drawing attention to its newly created vegetarian products. It also disseminated relevant information to media about its products and the people who helped in building the company's reputation. Lovely and Lalita were invited for an interview with one of the leading TV channels in which they talked about their environment friendly vegetarian products. To show its gratitude to customers, local business and government officials who supported the company from the beginning, "Coconut Joy Ltd." hosted a gala event and involved all of them to raise funds for a few local NGO's. The company also asked its fans and customers to send songs and poetry conveying their impression about "Coconut Joy's Ltd." products.
1. Identify and explain the communication tool used by "Coconut Joy Ltd".
2. Briefly explain the role of the tool identified in (1) above.
✔ Answer
1. Public relations is the communication tool used by "Coconut Joy Ltd". Public relations refers to the practice of managing communication between an organisation and its publics in order to create and maintain a positive image about itself and its products.
2. The role of public relations department is described below:
- Press Relation: It manages relations with the press to present true and correct information about the company. Thus, public relations helps to create a positive image about the company in the eyes of various interest holders like consumers, government, suppliers etc.
- Product Publicity: It undertakes product publicity for new products through sponsorships. Thus, it helps in launching new products as they may be accepted easily because of good reputation of business.
- Corporate Communication: It promotes image of the company through different ways of corporate communication like publication of newsletters, brochures, articles or arranging for talk shows or speeches of high officials of the company.
- Lobbying: It is proactive in promoting or defending regulations that affect business by maintaining healthy relationships with associations of commerce and industry, government officials and different ministers in charge of corporate affairs etc.
You have been appointed as a brand manager of Ford Motors. The company is to introduce a compact small car in the Indian market. The name of the car is yet to be decided. You have been asked to cheer a brainstorming session. Before the suggestion comes forward, you have to briefly explain the participant as to what constitute a good brand name with the help of suitable example.
✔ Answer
The constituents of a good brand name are:
- Brand name should be short and simple. Long and complex words should be avoided because they create difficulty in reading and remembering. For instance, Lux, Dettol or Surf are short and simple words, which are read and remembered without much effort.
- Suggestive brand names are better because they can convey product attributes or benefits. For instance, Hajmola suggests digestive properties, Ujjala suggests brightness, Color soft hair dye from Godrej suggests softness.
- The brand name should be distinctive. A brand is distinctive when it stands apart from others in the category. Airtel, Tide, Shell, Cinthol, Perk are still distinctive brand names.
- Finally, a brand name should be selected after considering its meaning in other languages and cultures. Some words are perfect in one culture or country but many words become offensive, obscene and inappropriate in other countries.