Long Answer Type Question- Enterprise Marketing | Entrepreneurship Class 12 - Commerce PDF Download

Marketing and Sales Strategy

Question 1: With the help of a diagram, show the different elements of marketing mix and their components.

Question 2: Why is it important for a business to have an effective sales strategy?

(i) Successful strategies help the sales force focus on target market customers and communicate with them in relevant and meaningful ways.
(ii) Sales representatives need to know how their products or services can solve customer's problems. A successful sales strategy conveys this so that the sales force spends time targeting the correct customers at the right time.
(iii) Planning and creating an effective sales strategy requires looking at long-term sales goals and analyzing the business sales cycle, as well as meeting with sales people about their personal career goals. Going through these exercises helps business owners and managers gain a more intimate knowledge of the sales intervals, seasonal changes and what motivates the sales team.
(iv) After creating the long-term sales strategy based on long-term goals, sales managers should create monthly and weekly sales strategies based on the long-term strategy. This allows for short-term performance measurement of the sales team.

Question 3: Why is packaging considered an important ingredient in the product mix?

Packaging is an important ingredient in the product mix because of following advantages it offers :
(i) Convenience: Packaging adds to tire convenience of the product. It becomes convenient for handling, transporting and storing, e.g., medicines are packed in small packets.
(ii) Branding: A specific packaging becomes a part of a brand. A product gets an identification due to packaging, e.g., Nirma washing powder has a picture of a dancing girl, Tata salt have Tata salt written on its pack
(iii) Convey information: Various details about the product like quantity, expiry date, date of manufacture, procedure of using, etc. are conveyed to the customers for providing better value to the product.
(iv) Eye catchy: A beautiful pack and attractive design of the pack is always eye-catchy. It attracts the customers, e.g. Perfumes are normally packed in beautifully moulded bottles.
(v) Protection: Suitable packaging provides protection to the product. It improves its selflife and maintains its quality for some stipulated time.

Question 4: Explain different types of brand names.

Different types of brand names are as under: 
(i) Individual brand name: Here entrepreneur can choose distinct names for each of his offering, i.e., every product is promoted on the basis of a separate brand name.
(ii) Family brand name: Entrepreneur can opt to use a common or successful family name for several products. Either the entrepreneur's name or the company's name may be used for all the products. It is even referred as umbrella branding.
(iii) Corporate names: Entrepreneur may choose to utilise their corporate name or logo together with some brand names of individual products for example, Godrej, Tata, etc.
(iv) Alpha-numeric names: In many industrial products, an alpha-numeric name often signifies its physical characteristics, thus creating a distinctive identify of the product. Entrepreneur has an option available to brand his products alpha-numerically. For example : SX4, ilO, i20, etc.

Question 5: What are the qualities of a good brand name?

(i) Short, simple and easy to pronounce.
(ii) Noticeable, easy to recognize and remember.
(iii) Pleasing, impressive when uttered.
(iv) Neither obscene, negative, offensive nor vulgar.
(v) Adaptable to packaging, labelling requirements, different advertising media and languages.
(vi) Linked to product, symbolically eye catching.
(vii) Contemporary, capable of being registered and protected legally.

Question 6: Explain any four factors to be taken into consideration while selecting channel's of distribution related to a product.

(i) Unit value of the product: When the product is very costly it is best to use a small distribution channel. On the other hand, for less costly products long distribution channel is used.
(ii) Standardised or customized product : These are those products which are pre-determined and there is no scope for alteration. On the other hand, customized products are those which are made according to the discretion of the consumer and also there is a scope for alteration.
(iii) Perishability : A manufacturer should choose minimum or no middlemen as channel of distribution for such an item or product which is of highly perishable nature. On the contrary, a long distribution channel can be selected for durable goods.
(iv) Technical nature : If a product is of technical nature, then it is better to supply it directly to the consumer. This will help the user to know the necessary technicalities of the product.

Question 7: What is the purpose of designing a Logo for a product or a business ?

Logo gives an identity to a product or business. Its purposes are: 
(i) Logos are a critical aspect of business marketing. As the company's major graphical representation, a logo anchors company's brand. 

(ii) Corporate logos are intended to be the identity of an enterprise because of displaying graphically enterprise's uniqueness. 

(iii) Through a Set colour combination, fonts, images, impression and/or pattern, logos provide essential information about a company that allows customers to relate with the enterprise's core brand.
(iv) Enterprises normally resort to logos as a short path for advertising and other marketing materials.
(v) Logos act as the key visual component of an enterprise's overall brand identity.

Question 8: Differentiate between Trade Mark and Brand Mark.

(i) Trade Markis a legal protection, given to a brand or part of a brand, against its use by other linns,
(ii) Trade mark protects the use of brand mark by any other firms on legal grounds. A Brand Mark is that part of a brand which can be recognized but cannot be vocalized and does not provide any legal protection for its use by other firm.

Question 9: Why is it necessary to know the preferences of buyers in designing a M arket strategy ?

Consumer preferences must be found out due to following reasons :
(i) Selection of Product: Entrepreneur can select the product for his enterprise on the basis of consumer needs.
(ii) Quality: Entrepreneur gets an idea about the quality of the product to be maintained.
(iii) Price: Based on the consumer needs and their paying capacity, the price of the product can be fixed.
(iv) Area: Consumer needs provides the information about the strength of the potential customers. This is used for planning supply.

Question 10: Explain tire important factors affecting tire choice of channels of distribution by the manufacturer. 

While selecting a distribution channel, the entrepreneur should take into account the following factors:

(A) Considerations Related to Product 
(i) Unit value of tire product: When the product is very costly it is best to use a small distribution channel. For example, industrial machinery or gold ornaments are very costly products that is why for their distribution small distribution channel is used. On the other hand, for less costly products long distribution channel is used.
(ii) Standardised or customised product: Standardised products are those for which cost is pre-determined and there is no scope for alteration. For example: utensils of MILTON. To sell this long distribution channel is used. On the other hand, customised products are those which are made according to the discretion of the consumer and also there is a scope for alteration, for example; furniture. 

(iii) Perishability: A manufacturer should choose minimum or no middlemen as channel of distribution for such an item or product which is of highly perishable nature. On the contrary, a long distribution channel can be selected for durable goods.
(iv) Technical nature: If a product is of technical nature, then it is better to supply it directly to the consumer. This will help the user to know the necessary technicalities of the product. 

(B) Considerations Related To Market 
(i) Number of buyers: If the number of buyers is large then it is better to take the services of middlemen for the distribution of the goods.
(ii) Types of buyers: Buyers can be of two types: General Buyers and Industrial Buyers. If the more buyers of the product belong to general category then there can be more middlemen. But in case of industrial buyers there can be fewer middlemen.
(iii) Buying habits: A manufacturer should take the services of middlemen if his/her financial position does not permit him/her to sell goods on credit to those consumers who are in the habit of purchasing goods on credit.
(iv) Buying quantity: It is useful for the manufacturer to rely on the services of middlemen if the goods are bought in smaller quantity.
(v) Size of market: If the market area of the product is scattered fairly, then the producer must take the help of middlemen.
(C) Considerations Related to Manufacturer/ Company 
(i) Goodwill: Manufacturer's goodwill also affects the selection of channel of distribution. A manufacturer enjoying good reputation need not to depend on the middlemen as he can open his own branches easily.
(ii) Desire to control the channel of distribution: A manufacturer's ambition to control the channel of distribution affects its selection. Consumers should be approached directly by such type of manufacturer.
(iii) Financial strength: A company which has a strong financial base can evolve its own channels. On the other hand, financially weak companies would have to depend upon middlemen.
(D) Considerations Related to Government 
Considerations related to the government also affect the selection of channel of distribution. For example, only a license holder can sell medicines in the market according to the law of the government.
(E) Others
(i) Cost: A manufacturer should select such a channel of distribution which is less costly and also useful from other angles.
(ii) Availability: Sometimes some other channel of distribution can be selected if the desired one is not available.

Question 11: Why is'place mix'regarded as an importantelement of marketing mix? How does the considerations related to market have an impact on the selection of a distribution channel? 

It is a distribution network through which the producer puts his products in the market and passes it to the actual users. This channel consists of: producers, consumers or users and the various middlemen like wholesalers, selling agents and retailers (dealers) who intervene between the producers and consumers. Therefore, the channel serves to bridge the gap between the point of production and the point of consumption thereby creating time, place and possession utilities. Considerations related to market are given below:
(i) Number of buyers: If the number of buyers is large then it is better to take the services of middlemen for the distribution of the goods. On the contrary, the distribution should be done by the manufacturer directly if the number of buyers is less.
(ii) Types of buyers: Buyers can be of two types: General Buyers and Industrial Buyers. If the more buyers of the product belong to general category then there can be more middlemen. But in case of industrial buyers there can be fewer middlemen.
(iii) Buying habits: A manufacturer should take the services of middlemen if his/her financial position does not permit him/her to sell goods on credit to those consumers who are in the habit of purchasing goods on credit.
(iv) Buying quantity: It is useful for the manufacturer to rely on the services of middlemen if the goods are bought in smaller quantity.

Question 12: Explain the different channels of distribution.

Channels of distribution are broadly divided into four types. These are :
(i) Producer - Customer (Direct channel-Zero level): This is the simplest and shortest channel in which no middlemen is involved and producers directly sell their products to the consumers. It is fast and economical channel of distribution. Under it, the producer or entrepreneur performs all the marketing activities himself and has full control over distribution. A producer may sell directly to consumers through door-to-door sales persons, direct mail or through his own retail stores. Big firms adopt this channel to cut distribution costs and to sell industrial products of high value. Small producers and producers of perishable commodities also sell directly to local consumers.

(ii) Pioducei-Retailer-Customer (Indirect channelOne level): This channel of distribution involves only one middlemen called "retailer", Under it, the producer sells his/her product to big retailers (or retailers who buy goods in large quantities) who in turn sell to the ultimate consumers. This channel relieves the manufacturer from burden of selling the goods himself and at the same time gives him control over tire process of distribution. This is often suited for distribution of consumer durables and products of high value.

(iii) Producer - Wholesaler - Retailer - Customer (Two level): This is the most common and traditional channel of distribution. Under it, two middlemen, i.e., wholesalers and retailers are involved. Here, the producers sells his product to wholesalers, who in turn sell it to retailers. And, retailers finally sell the product to the ultimate consumers. This channel is suitable for prod ucers who have limited finance, narrow product line and need expert services and promotional support of wholesalers. This is mostly used for the products with widely scattered market.

(iv) Producer - Agent - Wholesaler - Retailer -Customer (Three level): This is the longest channel of distribution in which three middleman are involved. This is used when the producer wants to be fully relieved of the problem of distribution and thus hands over his entire output to the selling agents. The agents distribute the product among a few wholesalers. Every wholesaler distributes the product among a number of retailers who finally sell it to the ultimate consumers. This channel is suitable for wider distribution of various industrial products.

Question 13: 'Mittil Ltd.'is a leading company for manufacturing of soft toys for children. The company is in the process of developing a prototype for a talking pillow, 'Talk O Hug', which would enable parents to convey messages to their children when they are away at work. The mechanism is such that the message is recorded in the device in the pillow and the moment the child touches the pillow, the speaker sensors would repeat the message recorded by the parents for their children. Though an innovation for India, imported versions of this product are already available in the market. The management wanted to device a pricing strategy to target the 'switches' present in tire market. 
(i) Identify the pricing strategy that the management is planning to adopt State the marketing objective of the company behind this pricing decision. 
(ii) State any two advantages and one disadvantage of adopting this pricing policy to 'Mittil Ltd. 
(iii) Keeping in mind the nature of the product, suggest the distribution channel that would suit the company for distributing 'Talk O Hug'.

(i) Penetration Pricing: Penetration pricing is most commonly associated with a marketing objective of increasing market share or sales volume, rather than to make profit in the short term. The price will be raised later once this market share is gained.
(ii) The advantages of penetration pricing to the firm are 
(a) It can result in fast diffusion and adoption. This can achieve high market rates quickly. This can take the competitors by surprise, not giving them time to react.
(b) It can create goodwill among the early adopters segment. This can create more trade by word of mouth.
(c) It creates cost control and cost reduction pressures from the start, leading to greater efficiency.
(d) It discourages the entry of competitors. Low prices act as a barrier to entry
(e) It can create high stock turnover throughout the distribution channel
(f) This can create critically important enthusiasm and support in the channel.
Disadvantages or penetrating price method
(a) The main disadvantage with penetration pricing is that it establishes long-term price expectations for the product and image preconceptions for the brand and company. This makes it difficult to eventually raise prices.
(b) Another potential disadvantage is that the low profit margins may not be sustainable long enough for tire strategy to be effective.
(iii) Direct level.

Question 14: What are the factors to be kept in mind while fixing the price of a commodity or service ?

Factors to be kept in mind while fixing the price of a commodity or service are:
(i) Pricing objectives: What is the objective of a firm, this is a very important factor which helps in deciding the price. If the objective of company is profit maximization then generally high prices are fixed. If the objective is sales maximization then prices are kept low.
If the firm wants to capture big share in the market then it has to keep its price low so that more number of people are attracted to purchase the product. If the firm has to survive in a competitive market then it has to keep its price low by offering discounts.
(ii) Product cost: The price should be fixed in such a manner that it is able to cover the product cost. Product cost comprises of fixed cost and variable cost. Fixed cost remains constant irrespective of change in output whereas variable cost varies with change in output. In case of a competitive market, price should be so fixed that it is able to at least cover the variable cost.
(iii) Extent of the competition in market: When a firm does not face any competition then it can enjoy complete freedom in fixing the price. But when the competition is more then price is fixed keeping in mind, the price of competitor's product. For example : Pepsi company cannot fix the price of its drinks without considering the price of Coke.
(iv) Customer's demand and utility: When demand of a product is inelastic then the company can fix up high prices but if the demand is elastic then the price has to be brought down. If the product is highly demanded then high prices can be fixed but in case of less demand low price have to be fixed. If product is offering higher utility then high price can be charged from customer as customer is ready to pay more. Whereas if utility is low, high price cannot be charged.
(v) Government and legal regulations: To protect the interest of general public, the government has all the right to control the prices of various products and services by including the products in the category of essential commodities. With government intervention there can be a check on a monopolist as he cannot charge unfairly high price for essential commodities.
(vi) Marketing methods used: The price of the product also gets affected by various techniques of methods of marketing used to promote the products. If company is using intensive advertising to promote the sale of product then it will charge high price. Other marketing methods which affect price of a product like type of packing, salesman employed, customer support services, etc.

Question 15: How does Market Mix play an important role in enhancing the sale ?

Marketing Mix plays an important role in enhancing the sales of the enterprise. Its following components help in increasing the sales :
(i) Product: If various features and characteristics of the product are as per the liking of majority of the potential customers, the sales is automatically going to be higher. Effective after sales service, efficient utilization of knowhow, full capacity production will create good support for the product. Consequently sales will be enhanced.

(ii) Price: Favourable and adequate pricing depending on the paying capacity of the customers always appeal the customers. The loyalty towards the product is also enhanced which ensures minimum sales and also attracts new customers, Various pricing methods are available at the disposal of the entrepreneur. Selection of appropriate method can be used as a tool for raising sales.
(iii) Promotion: Publicity plays a leading role in promoting sales. Depending on the nature of the product, the advertisement mode can be selected. Door to door selling, newspaper, radio, pamphlet, ete. are the various methods, which can be used for increasing the number of customers.
(iv) Distribution: Various channels of distribution can be effectively used by an entrepreneur depending on the nature of market, preference of consumers and the nature of the product. Shorter is the channel of distribution more efficient is distribution.

Promotion Strategy

Question 1: Enlist the objectives of Advertising.

(i) To create a need and stimulate demand for the product. 
(ii) To educate and inform the public.
(iii) To facilitate speedy movement of products.
(iv) To create goodwill and build a favourable image.
(v) To help in expansion and diversification. 
(vi) To help in stabilizing the business.

Question 2: 'Floral Art and Craft' opened its first store in Mumbai in the year 2010 with the objective of providing its customers with fresh flowers creatively packed and value for money.
It procures fresh flower directly from the farmers.
The organization makes sure that the farmers adopt organic means to nourish the soil and do not use chemical fertilizers as it degrades the soil fertility.
Packaging material is procured from especially abled craftsman of I CAN. Floral Art and Craft's facebook and twitter page encourages two way communication with its customers. These social media channels provide a platform through which it can interact with customers and access their opinion about the brand. The store also uses direct e-mails to their frequent customers to inform them about different schemes and other promotional messages. Its website promotes the store by organizing different flower decorating classes and competitions using the products of I CAN.
(i) Identify the promotion strategy adopted by I CAN. Also state the lines from the text that helped to identify tire form.
(ii) State any two features of this type promotion strategy.

(i) Below-the-line Promotion Strategy.
'Floral Art and Craft's facebook and twitter page encourages two ways communication with its customer.'
'These social media channels provide a platform through which it can interact with customers and access their opinion about the brand.'
'The store also uses direct e-mails to their frequent customers to inform them about different schemes and other promotional messages.'
'Its website promotes the store by organizing different flower decorating classes and competitions using the products of 'I CAN'.
(ii) (a) Below-the-line methods are very specific, memorable activities focused on targeted groups of consumers. They are under the control of the organization.
(b) This strategy develops the brand by creating awareness and building a brand profile.

Question 3: What are the main public relations tools?

(i) News creation and distribution (media releases).
(ii) Special events such as news conferences, grand opening and product launches. 
(iii) Speeches and presentations.
(iv) Educational programs.
(v) Annual reports, brochures, newsletters, magazines and audio-visual presentations.

Question 4: What are the rules for advertising ?

There are four rules to consider when planning any advertising activity - i.e. before we prepare and book any form of advertising.
(i) Aim: What is the primary purpose of the advertisement? Is it to inform, sell, produce listings or improve the image of the business?
(ii) Target: Who is the target? From which sector of the public are we trying to achieve a response? For example, is it male, female, adult, teenager, child, mother, father etc.
(iii) Media: Bearing the aim and target in mind, which are of the media available is the most suitable - i.e. TV, radio, press or Internet?
(iv) Competitors: What are the competitors doing?
Which media channel do they use? Are they successful? Can you improve on their approach and beat them in competition?

Question 5: Differentiate between ATT and BTL. (TBQ)

Question 6: Explain any six commonly used media options.

Commonly used media options are as follows: 
(i) Window display or office front: It is the external presentation of the firm/enterprise. An attractive, well maintained exterior with clear, bold sign writing is an essential start. Windows should be bright, attractively presented, clean and well lit at night. The display should be arranged neatly so that it has remarkable impact to attract attention. 
(ii) Press advertising: It is a form of general advertising and includes advertising in all press like newspapers, magazines and journals. This form is a key to image building, information dissemination and sales campaigns. It is also a very cheap compared to other forms.
(iii) Radio: Itis an ideal medium due as it has ability to reach specific target groups like teenagers, grocery buyers, etc. It has only sound effect. It covers spot adverts, promotions or talk back/ RJ discussions. Most radio stations offer packages for advertising.
(iv) Television: It is a powerful advertising medium as it creates impact through sight, sound and movement. It has high producing cost which makes it prohibitive for small businesses.
(v) Direct mail: This is a broad category covering direct communication with the consumer through email, post or fax. It can include newsletters, catalogues and letters.
(vi) Outdoor: This advertising is done outdoors, including static advertising such as billboards, backs of street benches and bus shelters or mobile advertising displayed on buses, trains, taxis or towed signage.
(vii) Cinema: Firm can purchase cinema advertising for a set amount of screenings or runs. Most providers of this category offer packages which include production and screening of the advertisement.

Question 7: Aryan started a Super Specialty Store, 'Sampada'. It's products are SOURCED from hand-picked suppliers. These products are sold under Sampada's own brand. Its promotion strategy is very specific and focuses on targeted groups of customers. The purpose of this promotions strategy is to develop the brand 'Sampada' by creating awareness among the customers. To do this, Sampada's Facebook and Twitter pages encourage two-way communication with customers. These social media channels provide a platform through which Sampada can interact with customers. It can then assess their opinions about the brand.
(i) Identify the promotion strategy adopted by Sampada. 
(ii) List the activities that are included in the strategy identified in (i) above for creating brand awareness. 
(iii) Also, explain the promotion strategies other than the one identified in (a) above.

(i) Below-the-line 

(ii) Activities (any four)
(a) sponsorship
(b) sales promotions
(c) public relations
(d) personal selling
(e) direct marketing
(iii) Above-the-line, throug-the-line (suitable explanation desired)
Detailed Answer: 
(i) The promotion strategy adopted is Below-the- line strategy.
(ii) The activities that are included in the strategy are:
(a) Sponsorship
(b) Sales promotion
(c) Public relations
(d) Personal selling
(e) Direct marketing
(iii) Above-the-line promotions use mass media methods. This type of promotion focuses on advertising to a large audience. It includes conventional media like print, online, television and cinema advertising.
Through-the-line refers to an advertising strategy involving both above-and below-the-line communications in which one form of advertising points the target to another form of advertising thereby crossing the "line".

Question 8: Discuss the various approaches a company can use to promote its products.

(i) Above-the-line: These promotions use mass media methods. This type of promotion focuses on advertising to a large audience. It includes conventional media like print, online, television and cinema advertising. The activities include advertisements in the press. They also produce online banner advertisements, place advertisements on billboards and use their website to meet the needs of their consumers.
(ii) Below-the-line: Below-the-line methods are very specific, memorable activities which focus on targeted groups of consumers. They are under the control of the organization. The purpose of these activities are to develop the brand by creating awareness and building a brand profile.
(iii) Through-the-line: It refers to an advertising strategy involving both above-and below-the- line communications in which one form of advertising points the target of another form of advertising thereby crossing the "line".

Question 9: Ankur, an entrepreneur, introduced a new shampoo which will help in reducing hair fall. Inspite of heavy advertisement and publicity he is not able to boost the sales. Suggest any six techniques to Ankur that will help him in boosting the sales.

There are large number of sales promotion techniques: 
(i) Price off or Rebate: It is generally offered to the customers to increase sales. In this, the offered price is less than normal price.
(ii) Samples: An entrepreneur can distribute free samples to the customers to get popularity for his new product.
(iii) Premiums: In this technique, the seller offers a gift for each purchase. It means gift along with the product or inside the product package.
(iv) Quantity Plus: In this seller offers more quantity at no extra cost.
(v) Coupons: In this, seller offers a discount coupon on the purchase of specified product. The holder of the coupons can go to the shopkeeper and get the product at cheaper price.
(vi) Contest: In this technique, the customers are invited to participate in the contest like writing a slogan on the product, suggesting good name for a new product and gain awards for the best one. Such contests are held through radio, T.V, newspapers, magazines, etc. e.g., two free air tickets to Malaysia.
(vii) Buying Allowance: Special discounts are offered to a trade for a specific period.
(viii) Display of Goods: In this, the goods are displayed attractively and artistically in the windows of their shop by the retailer. Special display of goods like banners, etc. can be done which helps the retailer to provide brief information of the available product with him.

Question 10: After working for 5 years with a Tiffin centre, Pradeep opened own 'Tiffin Centre' at Vigyan Nagar in Kota where students are living in rented houses preparing for medical and engineering colleges. Seeing good business opportunity and response from his customers he expanded his business and has started a restaurant also. He hired a experienced team of cooks on high salary who were expert in making sweets, namkeens, fast food, packed vegetable etc. But with tire opening of new tiffin centres he sensed the threat to his business. He decided to create awareness about his tiffin centre as well as restaurant in tire nearby areas with tire help of promotion tools. But he is highly confused between Advertising and Personal selling. Help him understand the difference between the two so that he is above to decide a better mode of promotion for his business in the market.

Negotiations, Customer Relationship Management, Vendor Management

Question 1: Eexplain the importance of negotiation for the success of a business.

(i) Importance while dealing with employees: The process of negotiation starts the moment an employee gets a selection call from an organization. Every organization runs for earning profits, therefore, employees should be recruited at the lowest possible salary, but nothing less than the previous salary.
(ii) Importance while dealing with vendors: Vendor is the third party supplier. The person dealing with the external parties must be a good negotiator else he will end up paying more amount then required. One should never accept terms and conditions verbally.
It is always better to discuss all the terms and conditions in an open forum and should be signed in presence of both the parties so that nobody backs out later.
(iii) Importance while dealing with superiors: While negotiating with superior one need to be polite. Negotiations help to reduce conflicts at work place. Negotiations help in finding out alternatives which benefit all.
(iv) Importance while dealing with customers: While negotiating with customers, it is possible to explain them the smart deal and also the USP of the product.

Question 2: Explain any four benefits of CRM.

The benefits of CRM are:
(i) Storage: By CRM all business data is stored and accessed from a single location.
(ii) Central location: Storing all the data of all departments like sales, marketing, customer service etc. in a central location provide immediate access to the recent data when it is required.
(iii) Collaboration: Departments can collaborate with each other with ease.
(iv) Improvement: It helps the enterprise to develop efficient automated process to improve business processes.
(v) 360-degree view: It provides a 360-degree view of all customer information, knowledge of what customers want and matching it with existing applications to consolidate all business information.

Question 3: Explain the tools of customer relations.

(i) Let customer know what you are doing for them: Dramatically point out the customer what excellent service you are doing for customers.
(ii) Write to old customers: Keep in touch with old customers by sending them catalogues, etc. and inform them about the new variety and goods.
(iii) Remember special occasions: Send old customers greetings on special occasions like their birthday, festivals, etc.
(iv) Feedback form: Ask customers to fill the feedback form so that one can know whether they are satisfied with the services or not and do the follow-up of feedback, respond immediately if some dissatisfaction is shown in feedback form.

Question 4: State the steps involved in planning a negotiation?

(i) Set the objectives clearly in mind.

(ii) Decide in advance, what to do, if negotiation fails.
(iii) Find your needs as well as the needs of other party for negotiation.
(iv) Analyse the key features of other party.
(v) Write topics of discussion, participation schedule of approach, etc.

Question 5: 'Handiwala' is a biryani delivery chain having franchisee outlets all over tire country. They started their operations in the country in the year 2012.
Since Biryani is not a new item for Indian kitchens, they knew that they had to face a lot of challenge from the competitors. Therefore, they decided to maintain highest quality standard to add new customers and retain tire old. Their idea was to collect, manage and link customer information with the goal of marketing the products effectively. For this purpose, they started offering lot of discounts when customers ordered online. They offered free home delivery in case the order exceeded T500. They also offered to supply free-of-cost, tire ordered items of biryani in case of a complaint The company also spent a substantial amount in maintaining the database of all the customers. They were sure that thro ugh these initiati ves they will be able to gain more market share.
(i) Identify and explain this concept
(ii) How is this concept used in the present day? 
(iii) What is the impact of technology on this concept?
(iv) Enlist two benefits of this concept.

(i) Customer Relationship Management: It is the process of carefully managing detailed information about individual customers in order to manage loyalty.
(ii) CRM solutions enable companies to provide excellent real-time customer service through the effective use of individual account information. 

(iii) With each new advancement in technology customer relationship is being managed electronically. Good CRM system will collect, manage and link information about the customer with the goal of letting market and sell services effectively.
(iv) (a) Storing all the data from all departments in a central location gives management and employees immediate access to the most recent data when they need it.
(b) Departments can collaborate with ease.
(c) View of all customer information, knowledge of what customers and the general market wants.