Q1. What are the factors that affect branding ? (CBSE 2009) (4 marks)
Ans. Factors that affect branding are :
(i) It helps in fixing a place for the products among the customers.
(ii) It reflects the quality maintained by the concerned brand.
(iii) It has certain status and recoginition to the product.
(iv) It facilitates in monitoring and identifying the consumers preferences.
Q2. Why is it necessary to know the preferences of buyers in designing a Market strategy ? (CBSE-2010 Comptt.; A. I. 2009) (4 marks)
Ans. Consumer preferences must be found out due to following reasons :
(a) Selection of Product : Entrepreneur can select the product for his enterprise on the basis of consumer needs.
(b) Quality : Entrepreneur gets an idea about the quality of the product to be maintained.
(c) Price : Based on the consumer needs and their paying capacity, the price of the product can be fixed.
(d) Area : Consumer needs provides the information about the strength of the potential coustomers. This is used for planning supply.
Q3. Are the preferences in a Market related to their Psychographic Patterns. How will you justify ? (3 marks)
Ans. Yes, the preferences in a Market are related to their psychographic patterns. It can be justified in the following ways : Fun loving orientation in the locality will observe more growth of restaurants, clubs, parks, and fast food parlours. On the contrary, if the society has more hard-working individuals it will result in less growth of clubs, parks, etc.
Q4. Why is market research an important prelude to a new enterprise ? (4 marks)
Ans. Market research is an important prelude to a new enterprise due to following reasons :
(a) Helps in Systematic Investigation : Systematic investigation provides a detailed information about the product, its quality, packing, etc.
(b) Information about Competitors : Number of competitors can be known by market research. The entrepreneur knows the intensity and type of competition. This helps in planning strategy to an entrepreneur.
(c) Mode of Advertisement : Which mode of advertising is effective, suitable and popular for the product and in the locality ? This idea is used for selecting the appropriate mode of advertisement.
(d) Profile of Potential Customers : Various aspects of the targeted customers can be studied like strength of potential customers, pattern of consumption, income group of the consumers for planning the strategy.
(e) Preference of Customers : Choices and preference are known by the market research. A product fulfilli ng such choices and preferences has more chances of success. (Any four)
Q5. What are the features of market research ? (3 marks)
Ans. Market research must provide :
(a) Information about competitors and their strategies.
(b) Information about the prevalent mode of advertisement.
(c) Data about the strength of potential customers.
(d) Information about the income groups of the area.
(e) Information about the prevalent pattern of marketing.
(f) Information about consumption pattern and choices of the customers.
(g) Information about the basic nature of the product.
Q6. What is meant by Market behaviour ? (3 marks)
Ans. Market behaviour is set of features, which includes demand pattern of the consumers, supply pattern of producers, sensitiveness to changing trends, etc.
Q7. Market behaviours is modified on the basis of pricing. Illustrate with example. (4 marks)
Ans. The supply is always higher when the prices are more. On the contrary, the demand of the product decreases at higher prices. Entrepreneur wishes to encash the higher profit at higher price. The customers would always prefer to maximize their satisfaction at lower price. For example, household prefer to stock the foodgrains when they are cheaper after the harvest.
Q8. What are the important precautions to be taken in a product design ? (4 marks)
Ans. Following precautions are to be taken in a product design :
(a) Flexibility : Design of the product must be flexible. With changing tastes and perferences the modifications should be possible with minimum cost.
(b) Safety : Product design must be capable of providing safety to the product. Product must be protected from wear and tear, environment, etc.
(c) Minimizes loss due to wear and tear : Design must be capable of preventing depreciation of the product.
(d) Environment Friendly : Product design should be such that it can be recycled if possible. Much hurdles should not be there in the way of reselling it if possible.
Q9. Environmental Concerns are important in designing a product ? Why ? Can you illustrate with an example ? (3 marks)
Ans. Environmental Concerns are important in designing a product, it is due to following reasons :
(a) Design of the product must match with the environment e.g. soaps for washing utensils are now available with plastic coating outside. This is done to prevent the wastage.
(b) Proper packing and reusable packing enables the product usage for longer time. Life of the product is enhanced e.g. detergent and salt are available in polythene pack.
Q10. How does branding help in effective Marketing ?
Or
“Branding plays an important role in Marketing.” How ? Explain. (CBSE 2014) (3 marks)
Ans. Branding is useful in the following ways :
1. Identification : A product and its enterprise get its identification by its brand name. This reduces the advertising cost.
2. Differentiation : Brand name helps in differentiating one product with the another. Any particular brand can be easily differentiated from its competitors.
3. Better Understanding : Brands develop better understanding of customers with the product. This increases loyalty and consequently reduces Marketing efforts.
Q11. What factors influence pricing of a product ? (4 marks)
Ans. Following are the main factors that influence pricing of a product :
(a) Per unit cost of Production.
(b) Nature of the Product.
(c) Pricing Policy of the enterprise.
(d) Nature of Competition for Product.
(e) Number of Potential Customers.
(f) Cost of raw material.
(g) Extent of Investment done.
(h) Elasticity of Demand of the Product.
(i) Cost by Storage and Transportation
(j) Per head Expenditure of Producing goods.
Q12. What are the rules for goal setting ? (TBQ) (SQP) (3 marks)
Ans.
(i) Business goals are needed to be relevant.
(ii) Business goal are needed to be actionable.
(iii) Business goals are needed to be of achievable stretches.
Q13. What does the Marketing Strategy of a company include ? (TBQ) (3 marks)
Ans. A Marketing Strategy is composed of several strategies for growth as well as interrelated components called the Marketing Mix.
Q14. Differentiate between Trade Mark and Brand Mark. (TBQ) (4 marks)
Ans. Trade Mark is a legal protection, given to a brand or part of a brand, against its use by other firms.
A Brand Mark is that part of a brand which can be recognized but cannot be vocalized.
Q15. What is the purpose of Logo ? (TBQ) (4 marks)
Ans. Logo gives an identity to a product or business. Its purposes are :
(1) Logos are a critical aspect of business Marketing. As the company’s major graphical representation, a logo anchors company’s brand.
(2) Corporate logos are intended to be the Identity of an enterprise because of displaying graphically enterprise’s uniqueness.
(3) 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.
(4) Enterprises normally resort to logos as a short path for advertising and other marketing materials.
(5) Logos act as the key visual component of an enterprise’s overall brand identity. (Any four)
Q16. Explain in detail SMART goals ? (TBQ) (4 marks)
Ans.
Specific : It means who, what, when, where, why, how ?
Measurable : It means how will we know when we have achieved our goal ?
Attainable : It means, is our goal realistic ?
Relevant : It means how does the goal fit into our lives ?
Time Based : It means when will we achieve our goal ? What is our deadline ?
Q17. What are the qualities of a good brand name ? (TBQ) (4 marks)
Ans.
(a) Short, simple and easy to pronounce.
(b) Noticeable, easy to recognize and remember.
(c) Pleasing, impressive when uttered.
(d) Neither obscene, negative, offensive nor vulgar.
(e) Adaptable to packaging, labelling requirements, different advertising media and languages.
(f) Linked to product, symbolically eye catching.
(g) Contemporary, capable of being registered and protected legally.
Q18. Explain ‘Distribution Mix’ as an element of ‘Market Mix’. (3 marks)
Ans. Distribution Mix : It is also known as place mix. It is concerned with movement of good from the place of production to the place of consumption, at right time.
It consists of producers, consumers or users and the various middlemen like wholesalers, retailers, etc.
Q19. How will you show that Market Mix is dependent on the type of product? (CBSE 2004, A. I.) (4 marks)
Ans. Market Mix is a set of activities. Contribution of each is essential. It can be explained using following example : A toilet soap manufacturer can offer improved quality product at a lower price. He can keep such a low price that it can be penetrating pricing. In the competitive market, he would be able to increase its sale by selecting adequate channel of distribution to reach maximum consumers. Promotion on T. V. and Newspapers for timely information will be beneficial in raising his sales. He will have to keep shorter distribution channel for ensuring easy and quick reach of the product to the customers.
Q20. Given the same product and the same market, is it necessary to adopt different types of Marketing Mix by an entrepreneur. (CBSE 2010, Comptt) (3 marks)
Ans. Different entrepreneur adopt different types of Market Mix for their products because of following :
(a) Target Group : Market Mix is different for different income groups. Higher price is kept for the products meant for rich people. Also, the demands of the customers vary from place to place which ultimately depend on their paying capacity.
(b) Promotional Method : Various types of promotional methods have varying effect in the same locality. Therefore, the selection of the method is guided by the locality.
(c) Distribution : Mode of distribution is different for different areas. If it is city area, then road and air transport is preferable. If supply chain is longer, then it could be a mixture of air, water and land transport. Easily reachable mode is preferred and selected.
Q21. All the four elements of the Market Mix are interdependent. How will you support this statement ? (3 marks)
Ans. Yes, all the four elements of the Market Mix are interdependent. For example, if the quantity of sale is to be increased then the distribution pattern needs to be effective and capable of covering large area. Simultaneously, more advertisement expenditure is required. This will require the introduction of new promotional schemes for the product.
Q22. What do you understand by the term Product Mix? (2004 CBSE, A.I.) (4 marks)
Ans. It is the variety of products or services that are made available for sale by an entrepreneur in the market.
Here, all the decisions regarding marketing are only concerned with the product. Such decisions include change in characteristics of product, product design, change in quantity and quality of the product, warantee services, etc., e.g. a pen and refill at lower price to increase his sale if he provides better look to pen at the same price. This can also enhance sales.
Q23. Why is packaging an important ingredient in the product mix? (4 marks)
Ans. Packaging is an important ingredient in the product mix because of following :
(a) Convenience : Packaging adds to the convenience to the product. It becomes convenient for handling, transporting and storing e.g. medicines are packed in small packets.
(b) Branding : A specific packaging becomes a part of a brand. A product gets identification due to packaging e.g.
Nirma washing powder has a picture of dancing girl, Tata salt have tata salt written on its pack.
(c) 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.
(d) 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.
(e) Protection : Suitable packaging provides protection to the product. It improves its self-life and maintains its quality for some stipulated time.
Q24. What factors affect the policy on packaging ? (3 marks)
Ans. Following factors affect the policy on packaging :
(a) Quantity of the Product.
(b) Quality of the Product.
(c) Safety of the Product.
(d) Choice of the Customers.
(e) Environmental Factors.
(f) Specific requirements of the Product.
(g) Cost of Packaging Material.
Q25. How does packaging support the entrepreneur in enhancing the Market ? (4 marks)
Ans. Packaging supports the entrepreneur in the following ways :
(a) It provides better utility to the customers which enhance the sale of the products.
(b) It provides more aesthetic value to the customers.
(c) It provides basic information about the product to the customers.
(d) Good packaging enables the suppliers to maintain decent stock.
Q26. Why is goal setting important ? (3 marks)
Ans.
(i) Goal setting is an important exercise for ensuring the appropriate performance.
(ii) Goal setting ensures clarity of vision, alignment to the organizational goals, clarity of purpose and higher probability of achieving the goals.
(iii) Goal setting allows us to be proactive, instead of just being reactive.
Q27. Explain the various types of brand names available to an entrepreneur. (4 marks)
Ans. Various types of brand names available to an entrepreneur are :
(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 umberalla 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 identity of the product. Entrepreneur has an option available to brand his products alpha-numerically. For example : SX4, i10, i20, etc.
Q28. Explain the term “Logo”. (4 marks)
Ans. “Logo” (short for Logotype) is an identifying symbol for a product or business. It can be any distinctive design, mark or sign which stands associated with the entrepreneur’s offering. “Logo” is an important feature or part of branding. Thus, a logo is a graphic image or emblem commonly used by commercial enterprises, organizations and even individuals to aid and promote instant public recognition. Logos are either purely graphic (symbols/ icons) or are composed of the name of the organization (a logotype or word mark) when companies get legal protection for their logo than it is called trade mark of the company.
Q29. Explain the word “Tagline”. (4 marks)
Ans. Taglines are simple but powerful messages that help to communicate an enterprise’s goals, mission, distinct qualities and so much more. It is a small amount of text which serves to clarify a thought and is designed with a dramatic effect. They can come in the form of :
(i) Questions.
(ii) Statements.
(iii) Exclamations.
The whole idea behind the concept is to create a memorable dramatic phrase that will sum up the product.
Q30. Explain giving examples that goals must be relevant and time bound. (4 marks)
Ans. Relevant : Goals must be relevant for an organizations as only relevant goals drive the team. Goals must be set up for those areas which matter for organization. For example : a goal to make lunch for 100 employees by 2:00 pm is specific, measurable, attainable and time bound goal but it is not a relevant goal for a bank manager.
Time Bound : Goal must be backed by a time limit. A date to achieve the target must be set up. A deadline always help team to focus on achievement of goal within the time boundary. For example : If the goal is to increase the sale by 10%, employee may take two years to achieve it. So it must be set like increase in sale by 10% by next quarter.
Q31.Write the pillars of marketing. (4 marks)
Ans.
(i) Presence of atleast two parties-buyer and seller or customer and marketer, etc.
(ii) Both parties must have something viewed valuable by each other.
(iii) Both parties are free to accept or reject the offer.
(iv) Each party feels desirable to deal with the other.
(v) Each party is capable of communication and delivery.
Q32. Explain the term marketing mix. (4 marks)
Ans. Marketing mix is a term used to describe the combination of the four inputs which constitute the core of a company’s marketing system, the product, the price structure, the promotional activities and the distribution system. It is a set of marketing tools that firm uses to pursue its marketing objectives in the target market.
Q33. With a diagram explain the elements of marketing mix. (4 marks)
Ans.
Q34. What are the advantages of brand name to customers. (3 marks)
Ans.
(i) Helps in identification of product : Branding helps the customers to select the products easily as the brand which is giving them satisfaction can be selected easily over the competitor product.
(ii) Ensures quality : Brand name gives quality assurance and customers can easily buy branded goods with no doubts about the quality of product.
(iii) Status symbol : Use of branded goods adds to the status symbol of customers and adds to their confidence level.
Q35. What do you mean by labelling ? (4 marks)
Ans. Labelling means putting identification marks on the package. Label is the carrier of information. It provides information like name of the product, name of manufacturer, contents of products, expiry and manufacturing date, general instructions for use, weight, price, etc. Labels are attached on the product to provide some information to customer. Product labels can be :
(i) In simple tag form as in case of local products like rice, pulses, etc.
(ii) Elaborate Labels : As used by reputed companies. These are very attractive and give complete information about product to customer. Apart from the details of product, some statutory warnings which are essential for some products must be printed on label. Example : On tobacco it is compulsory to mention that its consumption is injurious to health.
