CBSE Class 12 Case Studies In Business

Studies – Marketing Management

MARKETING

Marketing: Definition

Marketing is a social process by which individual groups obtain what they need
and want through creating offerings and freely exchanging products and
services of value with others. – Philip Kotler

Marketing management is “the art and science of choosing target markets and
getting, keeping, and growing customers through creating, delivering, and
communicating superior customer value”.

– Philip Kotler

Elements of marketing mix

● Product
● Price
● Place
● Promotion

Market: Definition

A market consists of all the potential customers who have both the ability and
willingness to buy a product or service to satisfy their needs or wants

Features of marketing

● It seeks to provide what individuals or groups need or want

● A market offering is created by the marketer.
● It adds value toa product by increasing its utility
 ● It is facilitated through the exchange mechanism

What can be Marketed?

● Physical product
● Services
● Ideas
● Persons
● Place
● Experience
● Properties
● Events
● Infomation
● Organisations

Functions of Marketing

● Gathering and analysing market information is done to know the taste and
preference of the target market.
● Marketing planning is needed to meet the marketing objectives of the
firm effectively and efficiently.
● Product designing and development is carried out to make the product
innovative and attractive.
● Packaging and labelling are needed for product protection, product
identification and product differentiation.
● Branding helps to createa unique identity of the products.
● Customer support services help to create a good image of the marketer in
the eyes of consumers.
● Pricing of product is a crucial decision as it may greatly influence the
demand for a product.
● Promotion helps to boost the sales of a product.
● Physical distribution ensures the availability of the product at the right
place, at the right time and in right condition so as to facilitate its
purchase.
● Transportation creates place utility through movement of goods from the
production of goods to the place of distribution.
● Warehousing creates time utility by providing for the storage during the
time gap between the production and distribution of goods.
● Standardisation helps to produce goods as per predetermined
specifications and grading facilitates their classification into groups on
the basis of some criterion like quality, size etc.

MARKETING MANAGEMENT PHILOSOPHIES/CONCEPTS

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PRODUCT

Product: Definition

A product is anything of value i.e. a product or service offered to a market to

satisfy needs or wants.

Important product decisions include

● Determining its layout, features, quality, design etc.

● Branding
● Labelling
● Packaging

A Product includes

● Physical product
● After sale services
● Handling grievances
● Replacement of parts etc.

Types of utilities offered by a product

● Functional utility
● Psychological utility
● Social utility

PACKAGING

Packaging: Definition
Packaging is the process of desiging a suitable wrapper or container for a
product.

Importance of Packaging

● Rising standards of health and sanitation

● Useful in self service outlets
● Innovative packaging adds value to a product
● Facilitates product differentiation

Levels of Packaging

● Primary package refers to the immediate container of a product.

● Secondary packaging refers to the additional protection provided besides
primary package.
● Transportation packaging refers further packaging that helps in storage,
identification of transportation of the product.

Functions of Packaging

● Helps in product identification

● Provides protection to the product
● Facilitates the use of product
● Assists in promotion of the product

BRANDING

Branding: Definition

Branding is the process of assigning a name (brand name), sign or symbol

(brand mark) or a combination of all to identify the products of a seller or a
group of sellers and to distinguish them from those of the competitors.

Brand Mark: Definition

A brand mark is that part of a brand can be recognised but is not utterable.
Brand Name: Definition

A brand name is that part of a brand which can be spoken.

Trade Mark: Definition

Trade mark is used in context of a registered brand.

Advantages of branding to the customers

● Supports in product identification

● Certifies quality
● Considered to bea status symbol

Advantages of branding to the manufacturers

● Facilitates product differentiation

● Assists in advertising and display programmes
● Facilitates differential pricing
● Ease in the launching of new products

Qualities of a good brand name

● Short and easy to pronounce, spell and remember

● Reflects the functions of the product
● Distinctive/easily identifiable
● Adaptable can be used in labelling or packaging
● Versatile can be used for brand extension
● Should not become outdated soon
● Capable of being registered

LABELLING

Labelling: Definition
Labelling refers to the process of designing a label for a product which may vary
from a simple tag to a complex graphic.

Functions of labelling

● Describes the product and specifies its contents

● Helps in identification of the product or brand
● Enables grading of products
● Assists in promotion of products
● Provides information required by law

PRICE

Price: Definition

Price is the monetary value paid in consideration for purchase ofa product or
service by a buyer to its seller.

Factors affecting price determination

● Cost of product
● The utility and demand
● Extent of competition in the market
● Government and legal regulations
● Pricing objectives
● Marketing methods used.

PHYSICAL DISTRIBUTION

Physical Distribution: Definition

Physical distribution includes all those activities that ensure the availability of
the product at the right place, at the right time and in right condition so as to
facilitate its purchase.

Determining the components of physical distribution

 ● Order Processing
● Inventory
● Warehousing
● Transportation

Functions of distribution channels

● Sorting
● Accumulation
● Allocation
● Assorting
● Product Promotion
● Negotiation
● Risk Taking

Factors determining choice of channel

1. Product related factors

○ Type of product
○ Nature of product
○ Degree of complexity of product
○ Unit value of the product
2. Company characteristics
○ Financial strength of the firm
○ Degree of control desired on channel members
3. Competitive factors
○ Policy of firm
4. Market factors
○ Geographical concenteration of buyers
○ Quantity purchased
○ Size of the market
5. Environmental factors
○ Economic conditions
○ Legal constraints

Two main decisions involved in physical distribution

 ● Physical movement of goods from producers to consumers
● Choice of channels of distribution

Channels of Distribution: Definition

Channels of distribution refers to the set of individuals and firms that act as
intermediaries in the form of agents, wholesalers, retailers etc. that help to
transfer the title of ownership to the buyer and also facilitate physical
movement of the products.

Types of channels of distribution

1. Direct channel:
○ Manufacturer- consumer (zero level)
2. Indirect channels:
○ Manufacturer- retailer consumer (one level channel)
○ Manufacturer- wholesaler- retailer consumer(two level channel)
○ Manufacturer-agent wholesaler retailer consumer(three level
channel)

PROMOTION

Promotion: Definition

Promotion refers to the set of activities undertaken by a marketer to inform the

prospective buyers about the product and persuading them to make a purchase.

Promotion mix

● Advertising
● Personal selling
● Sales promotion
● Public relations

ADVERTISING
Advertisement: Definition

Advertisement is a paid form of non¬personal communication undertaken by

the marketers to boost the sale of a product or a service.

Objections to Advertising

● Adds to cost
● Undermines social values
● Encourages sale of inferior products
● Some advertisements are in bad taste
● Confuses the buyers

Features of Advertising

● Paid form
● Impersonality
● Identified sponsor

Role of Advertising

● Enhancing customers awareness about the product

● Helps in creating demand for both old and new products
● Repeated advertisements increases the confidence of the consumers
● Improves the public image of the company
● Helps to create employment opportunities

PERSONAL SELLING

Personal Selling: Definition

Personal selling refers to a personal form of communication between the seller

and the prospective buyer.

Merits of personal selling

 ● It isa flexible tool of promotion
● It seeks to provides direct feedback from the prospective buyers

Features of Personal selling

● Involves personal form of communication

● May lead to the development of long term relationship between the
company and a buyer

Qualities of a Good Salesman

● He should havea neat and tidy appearance.

● He should be decently dressed up and carry himself well.
● He should be cheerful and confident in his dealings.
● He should be able to communicate assertively.
● He should be alert and intelligent so that he is able to mould his sales talk
as per the need of the situations.
● He should also passess good knowledge about the product that he is
selling.

SALES PROMOTION

Sales promotion: Definition

Sales promotion refers to the short term incentives offered by the marketers to
promote the sale Of their products

Commonly used Sales Promotion activities

● Rebate
● Discount
● Refunds
● Product combinations
● Quality gift
● Instant draws and assigned gift
● Lucky draw
 ● Usable benefit
● Full finance @ 0%
● Sampling
● Contests

PUBLIC RELATIONS

Public Relations: Definition

Public relations refers to the practice of managing communication between an

organisation and its public in order to create and maintain a positive image
about itself and its products

Roles of Public Relations

● Public relations helps to create a positive image about the company in the
eyes of various interest holders like consumers, government, suppliers
etc.
● It helps in launching new products as they may be accepted easily
because of they may be accepted easily because of good reputation of
business.
● It helps the business to reinstate itself in wake of controversies or
prejudices etc.

Functions of the Public Relation Department

● It manage relations with the press to present true and correct information
about the company.
● It undertakes product publicity for new products through sponsorships.
● It is proactive in promoting or defending regulations that affect business
by maintaining healthy relationships with associations of commerce and
industry etc. through newsletters, brochures, articles or arranging for talk
shows or speeches of high officials of the company.
● It initiates or supports various kinds of corporate social activities.

MIND MAP
 LATEST CBSE QUESTIONS

Question 1.

Sunita took her niece, Aishwarya for shopping to ‘Benetton’ to buy her a dress
on the occasion of her birthday. She was delighted when on payment for the
dress she got a discount voucher to get 20% off for a meal of Rs. 500 or above
at a famous eating joint.

Identify the technique of sales promotion used by the company in the above
situation.

(CBSE, Delhi 2017)

Answer:

Useable benefits is the technique of sales promotion used by the company in

the above situation.

Question 2.

Ginika, Tanish and Rohit were friends from college days and now they are doing
different kinds of business. They regularly meet and discuss their business
ideas and exchange notes on customer satisfaction, marketing efforts, product
designing, selling techniques, social concerns etc.

In one of such meetings, Ginika drew the attention of Tanish and Rohit towards
the exploitation of consumers. She told that most of the sellers were exploiting
the consumers in various ways’ and were not paying attention towards the
social, ethical and ecological aspects of marketing, whereas she was not doing
so.

Tanish told that they were under pressure to satisfy the consumers, but stated
that the consumers would not buy or not buy enough unless they were
adequately convinced and motivated for the same.

Rohit stressed that a company cannot achieve its objectives without

understanding the needs of the customers. It was the duty of the businessmen
to keep consumer satisfaction in mind because business is run by the resources
made available to them by the society. He further stated that he himself was
taking into consideration the needs of the customers.

Identify the various types of thinking that guided Ginika, Tanish and Rohit in the
marketing efforts of their business. Also, state one more feature of the various
types of thinking identified that is not given in the above para. (CBSE, Delhi
2017)

Answer:
The various types of thinking that guided Ginika, Tanish and Rohit in the
marketing efforts of their business are described below:

● (Ginika) Societal marketing concept: The main focus of this philosophy is

on both the needs of the potential buyers as well as concern for the
society at large. The ends include profit maximisation through customer
satisfaction and social welfare.
● (Tanish) Selling concept: The main focus of this philosophy is on existing
products. The ends include profit maximisation through sales volume.
● (Rohit) Marketing concept: The main focus of this philosophy is on
customers needs. The ends include profit maximisation through
customer’s satisfaction.

Question 3.

Mediquip Ltd. is a company dealing in distribution of medical equipments. The

company recently imported 15000 units of sugar testing machines to test the
sugar levels without taking blood samples. For deciding the marketing strategy,
the Chief Executive Officer of the company called a meeting of the marketing
heads of different zones.

In the meeting, Sandeep, the North Zone Marketing Head, suggested that since
the machines were sophisticated they need to visit hospitals personally, to
explain its working to the hospital staff who would be using the machines. He
also suggested that additional trained people may be recruited for the same.

Himanshu, another Zonal Head, added that since lot of money had been spent
on the import of the machines, the company was short of funds to pay to the
additional staff as suggested by Sandeep.

Rahul, a newly appointed Zonal Head of South Zone suggested that since the
size of the order is not large, a detailed study of the factors determining the
choice of channels of distribution is required before making the right choice.

1. Identify the factors influencing the choice of channels of distribution

which were discussed in the meeting.
 2. Also, explain briefly the other consideration to be taken care of in each
factor identified in part (1). (CBSE, Delhi 2017)

Answer:

1. The factors influencing the choice of channels of distribution which were

discussed in the meeting are listed below:
○ Product related factors: It has been mentioned that the machines
were sophisticated.
○ Market related factors: It has been mentioned that the size of the
order is not large. (in)
○ Company related factors: It has been mentioned that the company
was short of funds
to pay the additional staff which had to be recruited to personally
visit and train the hospital staff.
2. The other considerations to be taken care of in each of these factors is
explained below:
○ The market related factors:
■ Geographical concentration of potential buyers: If the
potential buyers for the firm’s product are geographically
concentrated at a few specific places, it is advisable for the
marketer to adopt direct channels of distribution. If the
market for the product is widely scattered, indirect channels
of distribution will be more effective.
■ Size of market: If the size of the target market is small, it is
advisable that the marketer adopts methods of direct channels of
distribution like online selling, mail order house, personal selling
etc. wherein there are no intermediaries between the manufacturer
and the consumers. However, if the marketer intends to target
larger markets he should adopt indirect channels of distribution
(one level, two level or three level) by using intermediaries like
wholesalers , retailers etc.
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2 Indire Larg Widely scattered

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○ Product related factors:

■ Nature of product: Considering the technical nature of the
industrial products they require short channels i.e., direct
channel or involving few middlemen. Moreover, they are
made to order and expensive products purchased by
selective buyers. Whereas the consumer products, being
standardised, less expensive, less bulky, non-technical can
be better distributed by long network of channels, involving
many middlemen. Moreover they are purchased frequently.
■ Type of product: If the product under consideration is
perishable like fruits, vegetables, and dairy products short
channels should be adopted in order to preserve their quality.
Whereas non-perishable products like toiletry products (e.g.,
shampoo , toothbrush, deodorants etc.), groceries (cooking
oil, pulses etc.), fabrics can be best marketed through longer
channels so as to reach wide spread consumers.
■ Unit value of the product: If the unit value of a product is low as in
case of most convenience products, long channels are considered
more appropriate whereas products of high value should be sold
through shorter channels.
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○ Company related factors:

■ The degree of control it wants to hold on other channel members:
Short channels may be used if the management of the firm desires
to have greater control on the channel members, but if the
management does not plan to exercise strict control over the
middlemen indirect channels or large number of intermediaries
may be opted for.
 S. Type of The degree of control it wants
N channel to hold on other channel
o members

1. Direct Concentrated

2. Indirect Widely scattered

Question 4.

Mansi took her niece Ridhima for shopping to ‘Mega Stores’ to buy her a bag for
her birthday. She was delighted when on payment of the bag she got a pencil
box along with the bag free of cost. Idenfity the technique of sales promotion
used by the company. (CBSE, OD 2017)

Answer:

Product combination

Question 5.

“Time Line” watch manufacturing company is a renowned company marketing

watches. It performs various activities like, market analysis, product designing
or merchandising,

packaging, warehousing, branding, pricing, promotion and selling. The company

maintains good customer relations through various follow up activities. This
helps the company in procuring repeat sales orders.

1. Name the concept related to the activities mentioned in the above

paragraph.
2. Explain any two features of the concept identified in part (1) (CBSE,
Sample Paper, 2017)
Answer:

1. Marketing is the concept related to the activities mentioned in the above

paragraph.
2. The two features of marketing are described below:
○ Needs and wants: Marketing is a social process that seeks to
satisfy the needs and wants of individuals and organisations.
Needs are basic to human beings like food, clothing and shelter and
do not relate to a particular product. Whereas wants are culturally
defined human needs which are shaped by multiple factors like
personality, religion, culture etc. Needs are limited whereas wants
are unlimited. Therefore, the success of marketing lies in the
competence of the marketer to identify needs of target customers
and develop products to satisfy such needs effectively.
○ Creating a market offering: The complete offer for a product or
service possessing certain specific features like size, quality,
colour etc. is known as a market offering. Thus, the success of the
marketers lies in their proficiency to create a market offering in
accordance with the needs and wants of the target market. For
example a pack of 100 ml of mango juice is available for ? 20.

Question 6.

“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. (CBSE, Sample
Paper, 2017)

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.

Question 7.

Good Living Ltd. manufactures mosquito repellent tablets tables. These tablets
are packed in strips of 12 tablets each. Each of these strips is packed in a
cardboard box, 48 such boxes are then placed in a big corrugated box and
delivered to various retailers for sale. State the purpose of packaging the
tablets in a corrugated box. (CBSE, Sample Paper 2016)

Answer:

The purpose of packaging the tablets in a corrugated box is to facilitate their

transportation, warehousing and easy identification.

Question 8.

Shreemaya Hotel in Indore was facing a problem of low demand for its rooms
due to off¬season. The Managing Director (MD) of the hotel, Mrs. Sakina was
very worried. She called upon the marketing Manager, Mr. Kapoor for his advice.
He suggested that the hotel should announce an offer of ‘3 Days and 2 nights
hotel stay package’ with free breakfast and one-day religious visit to
Omkareshwar and Mahakaleshwar Temples. The MD liked the suggestion very
much. Identify the promotional tool which can be used by the hotel through
which large number of prospective pilgrimage tourists all over the country and
abroad can be reached, informed and persuaded to use the incentive.

(CBSE, Sample Paper 2016)

Answer:

Advertising is the promotion tool that can be used by the hotel.

Question 9.
“Every time I travelled, people asked me to bring them chips, khakra and pickles
from all over the country,” says Anoushka. Finally, she and her colleague,
Sumeet, decided to make a business out of it. They launched a Facebook page,
asked people what they wanted, and they came up with a list of about 100
places and tied-up with two dozen vendors to begin with. They were servicing
people from Jaipur who wanted spices from Kerala, people from Panipat who
wanted halwa from Jammu and people from Delhi who ordered fresh tea leaves
from Darjeeling. Through their business, they wished to bridge the gap between
sellers and buyers. The business is now worth millions.

Explain any two important activities that Anouskha and Sumeet will have to be
involved in for making the goods available to customers at the right place, in the
right quantity and at the right time.

(CBSE, Sample Paper 2016)

Answer:

Anoushka and Sumeet need to perform the activities involved in physical

distribution of goods.

Two such activities are explained below:

● Transportation: It creates place utility by facilitating the movement of

goods from the place of production to the place of distribution. In the
absence of efficient, reliable and cost effective transportation, facility
marketing of goods is difficult.
● Warehousing: It creates time utility by providing for the storage of goods
from the time they are produced till the time they are sold. Every marketer
needs to take this decision wisely in order to create a balance between
the level of customer service and cost of warehousing.

Question 10.

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

1. Name and state the communication tool used by the marketer in the
above case to improve its image.
2. Also explain the role of the tool as identified in part (1). (CBSE, OD 2016)

OR

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

1. Name and state the communication tool used by the marketer in the
above case to improve its image.
2. Also explain role of the tool as identified in part (1). (CBSE, Delhi 2016)

Answer:

1. Public Relations is being used as a promotional tool by the marketer. It

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 as a promotional tool is described below:
○ Public relations helps to create a positive image about the company
in the eyes of various interest holders like consumers, government,
suppliers etc .
○ It helps in launching new products as they may be accepted easily
because of good reputation of business.
○ It helps the business to reinstate itself in the wake of controversies
or prejudices etc.

Question 11.

Maruti Vega Ltd. entered into the market with coloured televisions and have
now introduced products like audio systems, air-conditioners, washing
machines, etc. The company is not only offering the products but also handling
complaints and offering after-sales services. Identify the element of marketing
mix discussed here. (CBSE, OD 2015)

Answer:

Product is the element of marketing mix discussed here.

Question 12.

Radhika was a student of Business Studies of Class XII. Her father was a farmer
who grew different varieties of rice and was well-versed 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 Internt 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
(CBSE, OD 2015)

Answer:

The three functions of marketing with reference to the above paragraph are
described below:

● 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.

Question 13.

Beauty Products Ltd. is a natural and ethical beauty brand famous for offering
organic beauty products for men and women. The company uses plant-based
materials for its products and is the No.1 beauty brand in the country. It not only
satisfies its customers but also believes in the overall protection of the planet.

Identify the marketing management philosophy being followed by ‘Beauty

Product Ltd’.

(CBSE, Delhi 2015)

Answer:
Societal Marketing Concept

Question 14.

‘Haryaram’ is a famous chain selling a large variety of products in the Indian

market. Their products include chips, biscuits, sweets and squashes. It charges
a comparatively higher price than its competitors as it sells quality products.
Besides, it offers regular discounts to its customers and easy credit terms to its
retailers. It has five of its own retail shops. It also sells its products through
various grocery stores so that the products are made available to customers at
the right place, in the right quantity and at the right time. It regularly uses
different communication tools to increase its sales.

The above paragraph describes the combination of variables used by Haryaram

to prepare its market offering. Identify and explain the variables. (CBSE, Delhi
2015)

Answer:

The combination of variables used by Haryaramto prepare its market offerings

are described below:

● Product: “Their products include chips, biscuits , sweets and squashes.”

A product is anything of value i.e. a product or service offered to a market
to satisfy its needs or wants. A product includes physical product, after
..sale service, handling grievances etc. Every marketer needs to
constantly review and revise its products in order to enhance customer’s
satisfaction and have a competitive edge.
● Price: “It charges a comparatively higher price than its competitors.”
Price is the monetary value paid in consideration for purchase of a
product or service by a buyer to its seller. It is a very crucial decision for
the marketers as consumers are very sensitive to the pricing. The factors
affecting price determination are cost of product, the utility and demand,
extent of competition in the market, government and legal regulations,
pricing objectives and marketing methods used.
 ● Place: “It has five of its own retail shops.”Or “It also sells its products
through various
grocery shops.”
It is considered an important element of marketing mix because it
includes all those activities that help in making the goods and services
available to the prospective buyers in the right quantity, at the right time
and in right condition. The two main decisions involved in physical
distribution are physical movement of goods from producers to
consumers and choice of channels of distribution.
● Promotion: “It regularly uses different communication tools to increase
its sales.”
Promotion refers to the set of activities undertaken by a marketer to
inform the prospective buyers about the product and persuading them to
make a purchase. The various components of promotion mix are
advertising, sales promotion, personal selling and public relation.”

Question 15.

Radha found a worm crawling out of newly opened tetra pack of juice
manufactured by a reputed company, Zest Ltd. She went back to the shopkeeper
from whom the pack was purchased who directed her to call up the customer
care centre. When all her efforts fell free, she went to a consumer activist, group
to seek advice. The group decided to help Radha and take measures to impose
restrictions on the sales of the firm’s products of the particular batch and urge
customers to refrain from buying the products of the company. Zest Ltd. lost its
image in the market. The CEO gave the responsibility of bringing back the lost
image of the company to the Manager.

1. Identify the concept of marketing management which will help the

Manager to get the firm out of the above crisis.
2. Also explain the role of above identified concept by stating any two
points.
(CBSE, Sample Question Paper 2015)

Answer:
 1. Public relations will help the manager to get the firm out of the above
crisis.
2. The role of public relations as a promotional tool is described below:
○ Public relations helps to create a positive image about the company
in the eyes of various interest holders like consumers, government,
suppliers etc.
○ It helps in launching new products as they may be accepted easily
because of good reputation of business.
○ It helps the business to reinstate itself in wake of controversies or
prejudices etc.

Question 16.

Zoom Udyog, a car manufacturing company, has started its business with
Zoom-800 and slowly launched Zoom-1000, Wagon-Z, Swy-fy etc. and offered
various services like after sales services, availability of spare parts, etc. Identify
the element of marketing mix referred here.

(CBSE, Sample Question Paper 2015)

Answer:

Product is the element of marketing mix referred here.

Question 17.

Crackers Ltd., a fire-cracker manufacturing company launched some new

products on eve of Diwali which attracted many buyers. To meet the increased
demand, the company employed children from nearby villages. Although the
product was in great demand, appropriate safety warnings for use were not
mentioned on the packets that led to many accidents.

1. Identify and explain the important product-related decision that was not
taken into consideration by the company.
2. Also, identify any two values which were violated by the company. (CBSE,
Annual 2014)
Answer:

1. The company has ignored ‘Labelling’. It is an important product-related

decision. Labelling refers to the process of designing a label for a product
containing product description and other relevant information which is
likely to affect a prospective buyers decision in making a purchase. It may
vary from a simple tag to a complex graphic.
2. The two values being violated by the company are:
○ Abiding by law as child labour has been employed
○ Concern for human life as appropriate warnings were not placed on
the label.

Question 18.

ABC Crackers Ltd., a fire-cracker manufacturing company, launched some new

products on the eve of Diwali in the market which attracted many buyers. To
meet the increasing demand, the company employed people from nearby
villages where there was a lot of unemployment. Because of the good behaviour
of the management with the employees, more and more people wanted to join
the company. As the products were in great demand in the market, a competitor
imitated the products. The products of the competitor were not accepted by the
consumers as it was a status symbol to buy the products of ABC Crackers Ltd.
because of their quality.

1. Identify and explain the product-related decision because of which

consumers preferred the products of ABC Crackers Ltd.
2. Also, identify any two values which ABC Crackers Ltd. wanted to
communicate to the society. (CBSE, OD 2014)

Answer:

1. Branding is the product-related decision because of which consumers

preferred the products of ABC Crackers Ltd.
Branding is the process of assigning a name (brand name), sign or
symbol (brand mark) or a combination of all to a product. Branding
facilitates product differentiation, assists in advertising and display
 programmes, facilitates differential pricing , promotes consumers loyalty
etc.
2. The two values that ABC Crackers Ltd. wants to communicate to the
society are:
○ Generating employment opportunities
○ Providing good working environment.

Question 19.

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.
3. Identify two values communicated to society by this project of Himachal
Public School, Himachal Pradesh. (CBSE, OD 2013)

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.
3. The two values communicated to the society by the project of Himachal
Public School are:
○ Generating employment opportunities
○ Humanity

Question 20.

Ajay was appointed as the marketing head of Alfa Enterprise, a manufacturer of

toothpastes and toothbrushes. His target sale was 2000 units a month. Apart
from thinking about various channels of distribution to achieve the target, he
himself started visiting schools in backward areas. He found that even after
taking various steps and counselling, some school children had not started
brushing their teeth. He investigated and found that they could not start
brushing their teeth. He investigated and found that they could not afford to buy
toothbrush and toothpaste. So with due permission, he started donating 200
toothbrushes and toothpastes every month to the school.

1. Identify the channel of distribution Ajay would adopt for the distribution
of toothpaste and toothbrushes and justify it by giving one reason.
2. State any two values which Ajay ants to communicate to society. (CBSE,
Delhi 2013)

Answer:

1. Ajay would adopt indirect channels of distribution for marketing of

toothpaste and tooth brushes because it is a consumer product. It can be
easily marketed through longer channels, for example (Manufacturer –
Wholesaler – Retailer – Consumer).
2. The two values that Ajay wants to communicate to the society are:
○ Good health
○ Social welfare.
Question 21.

Amar is engaged in the manufacturing of refrigerators. He surveyed the market

and found that customers need a refrigerator with a separate provision of water
cooler in it. He decided and launched the same refrigerator in the market.
Identify and explain the marketing philosophy involved.

(CBSE, Delhi 2012)

Answer:

Amar is following the philosophy of marketing concept. The prime focus of

marketing concept is to ‘find wants and fill them’. Therefore, the marketer first
assesses the needs and preferences of its target market and manufactures
products accordingly in order to satisfy their needs and wants optimally. It aims
at profit maximization through customer satisfaction.

Question 22.

‘An important task in the marketing of goods relates to designing a label as it

provides useful and detailed information about a product.’ In the light of the
above statement, draw a label for a ‘liquid soap’ and highlight the important
information to be provided on it. (CBSE, Delhi 2010)

Answer:

A label for a ‘liquid soap’.

Question 23.

Mansi, a shoe manufacturer for school students, decided to maximise profits by

producing and distributing shoes on a large-scale and thus reducing the
average cost of production.

1. Identify the marketing management philosophy adopted by Mansi.

2. Explain this philosophy on the basis of the following:
○ Main Focus
○ Means and Ends (CBSE, OD 2012)

Answer:

1. Mansi has adopted the production philosophy.

 2. The main focus of this philosophy is on the quantity of products
produced.
Means: The production philosophy can be brought into effect by making
products affordable and widely available.
Ends: The production philosophy aims at maximizing profits through high
volume of production.

ADDITIONAL QUESTIONS

Question 1.

Unilever has found a new way to make ice creams by using an ingredient called
‘ice structuring protein’ which is widely found in nature especially, in fishes
which allows them to survive in freezing arctic waters. Combining ISP with
stabiliser technology allows to make ice creams that don’t melt so easily
thereby making it more convenient for small children and consumers in hot
countries.

In the context of above case:

1. Identify the component of marketing mix being taken into consideration

by the company.
2. Explain briefly the function of marketing highlighted here.
3. List any two values that the company wants to communicate to the
society.

Answer:

1. The component of marketing mix being taken into consideration by the

company is ‘Product’.
2. Product designing and development: Every marketer strives to achieve his
marketing objectives by creating offerings to satisfy a need or a want.
Therefore, one of the core functions of marketing is to develop the
product in the most effective and efficient way. Every marketer
endeavours to add value to his product by introducing constant
 innovations in the product to enhance both its utility and attractiveness in
the eyes of the potential buyers and gain a competitive edge.
3. The two values that the company wants to communicate to the society
are:
○ Responsibility towards consumers
○ Technological advancement.

Question 2.

Ranger India Limited, is an automobile manufacturer in India. It makes 1.5

million family cars every year. That’s one car every 12 seconds. It has a sales
network of company approved retailers that spreads across 600 cities.

In the context of above case:

1. Identify the type of the channel of distribution adopted by the company.

2. State the market related factors that are likely to affect the decision of a
marketer about the choice of channel of distribution.

Answer:

1. Indirect channel: One level channel of distribution adopted by the

company

2. The market related factors that are likely to affect the decision of a
marketer about the choice of channel of distribution are explained below:
○ Size of market: If the size of the target market is small, it is
advisable that the marketer adopts methods of direct channels of
distribution like online selling, mail order house, personal selling
etc. wherein there are no intermediaries between the manufacturer
and the consumers. However, if the marketer intends to target
larger markets he should adopt indirect channels of distribution
(one level, two level or three level) by using intermediaries like
wholesalers, retailers etc.
○ Geographical concentration of potential buyers: If the potential
buyers for the firm’s product are geographically concentrated at a
few specific places, it is advisable for the marketer to adopt direct
channels of distribution. If the market for the product is widely
scattered, indirect channels of distribution will be more effective.
○ Quantity purchased: If the potential customers are likely to buy the
firm’s product in small quality, indirect channels of distribution
should be used by the marketer whereas if the order size is
expected to be big, direct channels of distribution may be adopted.

Type S Geograp Quantity

o hical purcha
f conce sed
c ntrati
h on of
a poten
n tial
n buyer
el s

Dire S Concentr Size of

ct ated order is
large

Indir L Widely Size of

e order is
ct small
Question 3.

As a global leader in the consumer electronics and entertainment industries,

Sony has set forth ‘Road to Zero environmental plan’, to achieve a zero
environmental’ effect by the year 2050 by producing world-class products in a
manner that both protects and promotes a healthy and sustainable planet.

In the context of above case:

1. Identify the marketing philosophy being implemented by the company.

2. Outline the main focus and ends of the relevant marketing philosophy.
3. State any two values that the company wants to communicate to the
society.

Answer:

1. Societal marketing concept is being pursued by the company.

2. The main focus of this philosophy is on both the needs of the potential
buyers as well as concern for the society at large. The ends include profit
maximisation through customer satisfaction and social welfare.
3. The two values that the company wants to communicate to the society
are :
○ Concern for the environment
○ Welfare of the society

Question 4.

As the number of people making online purchases has increased manifolds,

there is 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.
3. State any two factors that should be kept in mind by the marketers while
designing the packaging of its products.

Answer:

1. Secondary packaging and Transportation packaging.

2. The functions of packaging in the marketing of goods and services is
explained below:
○ 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.
○ 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.
○ The marketers should use biodegradable packaging material and
packaging should enhance the usability of the products.

Question 5.

Rastro Inc., is a multinational corporation that creates consumer electronics,

personal computers, servers and computer software. The company also has a
chain of retail stores known as Restro Stores. Despite high competition, Restro
has succeeded in creating demand for its products, giving the company power
over prices through product differentiation, innovative advertising and ensured
brand loyalty.

In the context of above case:

 1. What is product differentiation?
2. Name any one function of marketing that facilitates product
differentiation.
3. Identify the component of promotion mix being used by the company by
quoting lines
from the paragraph. .
4. Describe briefly the pricing objective pursued by the company.

Answer:

1. Product differentiation is a strategy used by the marketers to gain an

edge over its
competitors by creating a distinguished perception of the product in the
minds of the potential buyers in terms of its utilities.
2. Branding is a function of marketing that facilitates product differentiation.
3. Advertising is the component of promotion mix being used by the
company “giving the company power over prices through product
differentiation, innovative advertising and ensured brand loyalty.”
4. Attaining product quality leadership: Besides aiming at profit
maximisation as its pricing objective Rastro Inc. seeks to establish a
unique place for its products in the market by offering superior quality
products which can be easily distinguished from its competitors. As a
result, it is able to use differential pricing i.e. fixing up relatively higher
prices for its products.

Question 6.

Rupali intends to start an enterprise that produces chocolates. Initially, in order

to assess the taste and preferences of the people about the chocolates. She
used social media and online surveys. Thereafter, she prepared a detailed SWOT
(strengths, weaknesses, opportunities and threatsjanalysis of her enterprise to
devise a strategy that will give her an edge over the competitors. Based on her
analysis of the market, she decided to launch sesame and jaggery based
chocolates under the brand name ‘Desi Delight’. She has decided to fix up the
price of chocolates relatively at lower level in the beginning and later on as the
demand picks up she may revise the prices.
In the context of above case:

1. Identify the elements of marketing mix being taken into consideration by

Rupali.
2. Explain briefly the functions of marketing highlighted here.
3. Do you think she has selected an appropriate brand name for her product?
Why or why not? Give a reason for your answer.

Answer:

1. The elements of marketing mix being taken into consideration by Rupali

are Product and Price.
2. The functions of marketing highlighted here are explained below:
○ Gathering and analysing market information: The prime focus of
marketing is to ‘find wants and fill them’. Therefore, it is absolutely
essential1’for a company to study the needs and preferences of its
target market in order to satisfy their needs and wants optimally.
○ Product designing and development: Every marketer strives to
achieve his marketing objectives by creating offerings to satisfy a
need or a want. Therefore, one of the core function of marketing is
to develop the product in the most effective and efficient way. Every
marketer endeavours to add value to his product by introducing
constant innovations in the product to enhance both its utility and
attractiveness in the eyes of the potential buyers and gain a
competitive edge.
○ Pricing: Price is the monetary value paid in consideration for
purchase of a product or service by a buyer to its seller. The
process of determining the price of a product or service is called
pricing. It is a crucial decision for the marketers as consumers are
very sensitive to the pricing. The factors affecting price
determination are cost of product, the utility and demand, extent of
competition in the market, government and legal regulations,
pricing objectives and marketing methods used.
3. Yes, she has selected an appropriate brand name ‘Desi Delight’ for her
product as the name reflects on the product’s benefits and qualities. The
word ‘Desi’ indicates that the product contains indigenous ingredients like
 sesame and jiggery and Delight denotes the pleasure that the person is
going to get on consuming the delicious chocolates.

Question 7.

Reema, Vibha and Ratna are three women entrepreneurs who are engaged in
dealing with handicraft goods under the brand name ‘Gujkriti’ through a chain of
retail outlets at five different places in Delhi. They outsource all their products
from tribal and rural women in the state of Rajasthan. Reema is of the opinion
that in order to increase the sale of their products, they should advertise about it
on television. But, Ratna is arguing that advertisement expenses will add to cost
of operation. Whereas Vibha is insisting that they should set up an online portal
to market their products across the globe.

In the context of above case:

1. Identify the tool of promotion being taken into consideration by Reema by

quoting lines from the paragraph.
2. How is the channel of distribution being suggested by Vibha different
from the channel of distribution being used by them presently?
3. Do you think that Ratna is justified in her argument that advertisement
expenses will add to cost of operations?

Answer:

1. The tool of promotion being taken into consideration by Reema is

advertising. (Reema is of the opinion that in order to increase the sale of
their products, they should advertise about it on television.)
2. Vibha is insisting that they should set up an online portal to market their
products across the globe i.e. adopting direct marketing or zero-level
channel (manufacturer – consumer). Whereas at present they are using
indirect channels of distribution i.e. one level channel (manufacturer –
retailer – consumer)by operating through a chain of retail outlets at five
different places in Delhi.
3. No, Ratna is not fully justified in her argument although advertising as a
tool of promotion is often criticised on the ground that it adds to the cost
 of distribution which is passed on to the consumers in the form of higher
prices. Therefore, it increases the burden on the consumers. But, this
argument is not entirely true because advertisements help to increase
demand for the product. In order to meet the increased demand the
production levels have to be raised. As a result, the business is able to
reap advantage of economies of scale and eventually the cost of
production per unit comes down and benefits the buyers as the product’s
prices are reduced consequently.

Question 8.

Ravi has decided to set up a small factory to manufacture hand wash and toilet
soaps in a rural area in Haryana. In order to promote the product initially, he
plans to distribute small sachets of the hand wash as free samples, besides
deploying a team of salesmen to sell the product door to door in the different
parts of the city. Moreover, he has decided to conduct a hygiene camp in rural
areas wherein he will distribute a kit comprising of hand wash and soap and
also plans to organize street plays to highlight the importance of hygiene and
sanitation in our daily lives.

In the context of above case:

1. Identify the tools of promotion being taken into consideration by Ravi.

2. What are the qualities that he should consider while selecting salesmen?
(any three)
3. List any two values that the he wants to communicate to the society.

Answer:

1. The tools of promotion being taken into consideration by Ravi are Sales
Promotion and Personal Selling.
2. Some of the qualities that he should consider while selecting salesmen
are described below:
○ Physical appearance: A salesman should have a neat and tidy
appearance. He should be decently dressed up and carry himself
well.
 ○ Social qualities: A salesman should be cheerful and confident so
that he is able to communicate assertively without loosing his
temper easily.
○ Tactfulness and knowledgeable: A good salesman should be alert
and intelligent so that he is able to mould his sales talk as per the
need of the situation. He should also possess good knowledge
about the product he will be selling.
3. The two values that the he wants to communicate to the society are:
○ Improvement in the standard of living of the people
○ Educating them about hygiene/cleanliness

Question 9.

The Fancy Store’ is a popular retail shop dealing in all kinds of fashionable
items. Harish, the owner of the store believes in pushing the sale of his
products through aggressive sales promotion techniques. Therefore,
throughout the year he keeps offering various kinds short¬term incentives to
the buyers like discounts, quantity gifts, product combinations etc. On the
contrary, his brother Ramesh who also runs a retail shop dealing in all kinds of
fashionable items in the nearby market tries to first assess the needs and wants
of the buyers while deciding upon the product range. He also believes in
building long term relations with the buyers and therefore offers only good
quality products and handles the complaints of the buyers if any with politeness
and patience.

In the context of above case:

1. Identify the two different marketing concepts discussed in the above

para.
2. Distinguish between them on the basis of meaning, scope and strategies
used.

Answer:

1. The two different marketing concepts discussed in the above paragraph

are:
○ The Selling concept
○ The Marketing concept
2. Difference between Selling and Marketing is given below:

Bas Selling Marketin

i g
s

Me Selling involves Marketin

a promoting the g is a
n products and socia
i transferring their l
n possession and title of proce
g ownership from the ss by
seller to the buyer. which
indivi
dual
group
s
obtai
n
what
they
need
or
want
throu
gh
creati
ng
offeri
ngs
 and
freely
exch
angin
g
produ
cts
and
servi
ces
of
value
with
other
s.

Sco Selling is a narrow term. It Marketin

p is part of marketing. g is a
e wider
term
and
inclu
des
sellin
g.
Str Selling involves use of Marketin
a aggressive g
t promotional adopt
e techniques to increase s an
g the sale of products integr
i and services. ated
e appro
s ach
u which
s gives
e equal
d impor
tance
to the
strate
gies
with
regar
d to
all
the
varia
bles
of
mark
eting
mix
i.e.
produ
ct,
price,
place
and
 prom
otion.

Question 10.

Arvind is planning to start a company manufacturing room fresheners. He

intends to use natural fruit extracts for adding fragrance to them. He estimates
an investment of Rs. 20 crores to set up the factory. As it is difficult for him to
raise the entire capital amount alone, he gives a partnership offer to his school
friend, Sanjay who is an angel investor. Sanjay, after being convinced about the
feasibility of the project, accepts his offer. Sanjay tells Arvind that they should
also focus on other important decisions related to the product ‘room fresheners’
besides deciding about its features, variety and quality. Branding is one of the
important such decision.

In the context of above case:

1. Name any other two important decisions related to a product.

2. Why is branding considered as an important function by the marketers?
Give any one reason in support of your answer.
3. State any four features of a good brand name.

Answer:

1. Labelling and Packaging are the two important decisions related to a

product.
2. Branding is considered to be a very important decision by the marketers
because it facilitates product differentiation. Through branding the
prospective buyers are able to bring about a distinction between a
company product and its substitutes available in the market. This helps
the company to obtain a desirable market share.
3. The four features of a good brand name are stated below:
○ The brand name should be short, easy to pronounce, spell,
recognise and remember e.g., Ponds.
 ○ A brand should suggest the product’s benefits and qualities e.g
Sunsilk.
○ A brand name should be distinctive e.g., Lotus.
○ It should be capable of being registered and protected legally.

Question 11.

Somya Patel, 35, a fitness trainer, woes about a popular consumer durable
brand saying that “They show a lot of advertisements for their products on
television , but when you go to the store, you find these things out of stock all
the time. Then why should the company put advertisements when they can’t
meet the demand,” she questions.

In the context of above case:

1. Identify the tool of promotion mix being referred to in the above lines.
2. List any two product related factors that are likely to affect the choice of
channel of distribution.
3. Which element of marketing mix is being overlooked by the company?
Why is it considered as an important element?

Answer:

1. The tool of promotion mix being referred to in the above lines is

Advertisement.
2. The two product related factors that are likely to affect the choice of
channel of distribution are:
○ Type of product (consumer or industrial)
○ Unit value of product (low or high)
3. Place is the element of marketing mix being ignored by the company. It is
considered important because it relates to making the goods and
services available to the prospective buyers in the right quantity at the
right time and in right condition.

Question 12.
Suraj is a small entrepreneur involved in the manufacturing of hair wax. He finds
that cost of production of 100 gm of hair wax is Rs. 250. He has decided to keep
a margin of 15% as profit. Moreover, he has assessed that there is a free
competition in this product segment.

In the context of above case:

1. Identify the function of marketing being performed by Suraj.

2. State briefly the two factors that he is taking into consideration while
performing the function as identified in part (1).

Answer:

1. Pricing is the function of marketing being performed by Suraj.

2. The two factors that he is taking into consideration while performing the
pricing function are as follows:
○ Cost of product: The price of the product is determined by adding
the desired profit margin to the cost of production, selling and
distribution. The cost is of three types namely the fixed cost,
variable cost and semi-variable cost.
○ Degree of competition: The nature and extent of competition in the
market is another key factor relating to the pricing decision. If the
firm faces free competition in the market it is likely to fix the price
of the product at lower levels. But if it enjoys monopoly, then the
prices are likely to be fixed at higher levels.

Question 13.

After doing a diploma in entrepreneurship, Farihad started his own

confectionary business. He started doing a lot of hard work and used the
recipes taught by his grandmother in various preparations. He also learnt many
recipes from online sites and television programmes. He decided to keep the
price of the products low initially and also informed his customers about the
goodness of the items sold by them. However, he didn’t mention on the package
of each item weather it contained eggs or not. As a result, vegetarian people
became hesitant in buying things from his shop as they had to verbally inquire
from him about the inclusion of eggs in the preparation of various items.

In the context of above case:

1. Name the important aspect related to the marketing of products which

has been ignored by Farihad.
2. Explain briefly any three functions performed by the aspect as identified
in part (1).
3. Mention the right of consumer being violated by Farihad.

Answer:

1. The important aspect related to the marketing of products which has

been ignored by Farihad is Labelling.
2. The three important functions performed by labelling are :
○ Describes the product and specifies its contents: Labelling provides
information about the core function of the product i.e. how and why
the product is likely to be beneficial to the prospective buyer. It
educates 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 contains
the logo, brand name, tagline, name and address of the
manufacturer etc. of the product which helps in easy identification
of the product.
○ Enables grading of products: Different coloured labels are also used
by the marketers for grading of the products on the basis of
flavours, quality etc. so that the buyers can easily choose a product
as per their requirements.
3. The Right to information is being overlooked by the company in the above
mentioned case. According to the Right to information, a consumer has
the right to get complete information about the product he /she intends to
buy including its contents, date of manufacture, date of expiry, price,
quantity, directions for use etc. Also, as per law, it is mandatory for the
 marketers to provide complete information about the product/ service to
the buyers.

Question 14.

‘Shudh Hava Ltd/ is engaged in manufacturing of air conditioners and desert

coolers. The company offers a wide range of products to meet the requirements
of people from varied income groups. Recently the company has developed a
new product, an air purifier that improves the quality of air by filtering out all
allergens and microbes. The company introduced the product on two variants
namely ‘Nano Tech’ and ‘Nano Tech Premium’. In order to persuade people to
buy the product it is offering easy payment options in equal monthly
instalments for different time periods. Moreover, every buyer will be offered
‘scratch a card’ option to win instant gifts like decorative items, T-shirts etc. The
company is also planning to organise competitive events based on skill and luck
in various malls in different cities.

In the context of above case:

1. Name and explain the ‘type of promotion strategy’ adopted by the

company to boost the sales of air purifiers.
2. Also, identify the various techniques of this promotional strategy being
used by the company by quoting lines from the paragraph.
3. “The company offers a wide range of products to meet the requirements
of people from varied income groups.” Name the relevant consumer right
being promoted by the company.

Answer:

1. The type of promotion strategy adopted by the company to boost the

sales of air purifiers is Sales Promotion.
Sales Promotion includes the various types of short term incentives
offered by a marketer to increase the sale of a product or service.
2. The various techniques of sales promotion being used by the company
are listed below:
 ○ Full finance @ 0% – “it is offering easy payment options in equal
monthly instalments for different time periods.”
○ Instant draws and assured gifts – “every buyer will be offered
‘scratch a card’ option to win instant gifts like decorative items,
T-shirts etc.”
○ Contests – “The company is also planning to organise competitive
events based on skill and luck in the various malls in the different
cities.”
3. Right to Choose is the consumer right being promoted by the company

Question 15.

Nischay, after completing his masters in computer engineering decided to start

his own business. Fie visited his uncle Mr.Jaiprakash who has been running a
successful business in web designing. Fie shared with Nischay that the main
reason for his success in the business lies in his approach of building a life time
relation with his clients. Therefore, his business is not only restricted to
designing web sites according to the specifications of the clients but also
providing continuous online assistance to them and handling their grievances
effectively and doing all this at a profit. lie provides these services at
competitive prices. Anybody interested in getting the web solutions can contact
him through his website. Moreover, whenever the market is sluggish he tries to
create demand by offering short-term incentives to the buyers.

In the context of above case:

1. Define the term ‘Marketing Management’.

2. Briefly explain the various elements of marketing mix being pursued by
Mr. Jaiprakash by quoting lines from the para.

Answer:

1. Marketing management is “the art and science of choosing target

markets and getting, keeping, and growing customers through creating,
delivering, and communicating superior customer value”- Philip Kotler
 2. The various elements of marketing mix being pursued by Mr. Jaiprakash
are as follows:
○ Product: “his business is not only restricted to designing “Web sites
according to the specifications of the clients but also providing
continuous online assistance to them and handling their
grievances’ effectively.”
A product is anything of value i.e. a product or service offered to a
market to satisfy needs or wants. A product includes physical
product,after sale service, handling grievances etc. Every marketer
needs to constantly review and revise his products in order to
enhance customer’s satisfaction and have an competitive edge.
○ Price: “doing all this at a profit. He provides these services at
competitive prices.” Price is the monetary value paid in
consideration for purchase of a product or service by a buyer to its
seller. It is a very crucial decision for the marketers as consumers
are very sensitive to the pricing. The factors affecting price
determination are cost of product, the utility and demand, extent of
competition in the market, government and legal regulations,
pricing objectives and marketing methods used.
○ Place: “Anybody interested in getting the web solutions can contact
him through his website.”
It is considered important element of marketing mix because it
includes all those activities that help in making the goods and
services available to the prospective buyers in the right quantity, at
the right time and in right condition. Two main decisions involved in
physical distribution are physical movement of goods from
producers to consumers and choice of channels of distribution.
○ Promotion: “Moreover, whenever the market is sluggish he tries to
create demand by offering short-term incentives to the buyers.”
Promotion refers to the set of activities undertaken by a marketer
to inform the prospective buyers about the product and persuading
them to make a purchase. The various components of promotion
mix are advertising, sales promotion, personal selling and public
relation.

Question 16.
In today’s world, through social media, news spread in a flash. Moreover, if it is
bad news, it acquires a speed that is virtually impossible to stop. Hence, all
corporates are more susceptible to a tarnished image today than in any other
day and age. The loss of goodwill may lead to decreased revenue, loss of clients
or suppliers and fall in market share. Over the years, therefore, most of the
companies have set up a separate department to manage the public opinions
about them. The department works in close coordination with the various
interest groups like consumers, government, suppliers etc. and strives to handle
effectively if any controversies arise.

In the context of above case:

1. Identify the element of promotion mix being referred to in the above lines.
2. Briefly explain any three points highlighting the role of this element of
promotion mix as identified in part (1)

Answer:

1. The element of promotion mix being referred to in the above lines is

Public Relations.
2. The role of public relations as a promotional tool is described below:
○ Public relations helps to create a positive image about the company
in the eyes of various interest holders like consumers, government,
suppliers etc .
○ It helps in launching new products as they may be accepted easily
because of good reputation of business.
○ It helps the business to reinstate itself in wake of controversies or
prejudices etc.

Question 17.

Traditional trade or kirana stores constitute 90% of the FMCG (fast moving
consumer goods) business in India. HUL is the market leader in FMCG with over
60 lakh outlets. According to industry estimates, Patanjali products are
currently available in two lakh traditional retail outlets. ‘Availability of the
product’ is the single largest driver of FMCG sales. A shopper research
suggests that 30%-40% consumers shift preference if their favourite brand is
not available at the store.

In the context of above case:

1. Identify the component of marketing mix being discussed in the above

lines.
2. State the two main decisions related to the concept identified in part (1).
3. Name the type of channel of distribution adopted by HUL.

Answer:

1. The component of marketing mix being discussed in the above lines is

place/physical distribution.
2. The two main decisions involved in physical distribution are:
○ physical movement of goods from producers to consumers
○ choice of channels of distribution
3. Indirect channel of distribution has been adopted by HUL. It is a two level
channel i.e. (Manufacturer – wholesaler- retailer- consumer)

Question 18.

Arun and Rukun are good friends. After doing a fashion designing course from a
reputed institute, they have set up a garment factory in the rural area of
Faridabad to manufacture trendy casual wear like jeans, T-shirts, shirts etc.
under the brand name ‘Swatantra’. They have employed people from the nearby
villages itself in the factory. Moreover, they wish to sell the products through
local retailers in the villages and also through ‘Flipkart’.

In the context of above case:

1. Identify the elements of marketing mix being taken into consideration by

Arun.
2. Name the two methods of marketing adopted by them.
3. State any two values that are being fulfilled by them.
Answer:

1. The elements of marketing mix being taken into consideration by Arun

are product and place.
2. The two methods of marketing adopted by them are both direct and
indirect marketing.
3. Two values that are being fulfilled by them are:
○ Generating employment
○ Raising the standard of living of the people in the village

Question 19.

Yogesh buys a new laptop for his son Mukesh on his birthday from a company
owned retail outlet. After a few months, some parts of the laptop get damaged
in 3, road accident. Yogesh approaches the dealer to get the damaged parts
replaced with the new ones. But, he is told that the company does not provide
any after sale service to the customers. Yogesh feels very dissatisfied as a
consumer and woes that he will never buy this companies product ever again.

In the context of above case:

1. Identify the function of marketing being ignored by the company.

2. As a business advisor, suggest any two services that will be very effective
in enhancing brand loyalty for any such product.
3. Name the appropriate redressal agency that he can approach in case he
decides to file a case against the dealer.

Answer:

1. The function of marketing being ignored by the company is customer

support services.
2. As a business advisor, I would suggest the introduction of the following
services that will be very effective in enhancing brand loyalty for any such
product:
○ Setting up a separate department for handling consumer
complaints.
 ○ Providing 365 days x 24 x 7 online assistance to the buyers for any
maintenance or technical issues.
3. Yogesh can file a complaint in the District forum