Long Type Questions - Enterprise Marketing, Entrepreneurship, Class 12 | Additional Study Material for Commerce PDF Download

Q1. You are planning to open a book shop in a given locality. What point would be covered by you in the market survey to assess its feasibility in the area ? (6 marks)
Ans. Market Survey is done to assess the feasibility of the product. Following points can be covered in the market survey before opening a book shop :
(a) Type of Market : Whether the competition in the locality will be competitive, oligopolistic or monopoly situation. This will be found out.
(b) Population of School Students : Number of school-going children could be found. Student belonging to preprimary, middle school, secondary and senior secondary level could be found out separately.
(c) Number of Schools : Number of schools can be counted. Further, primary schools and secondary schools can be counted separately.
(d) Population of College-going Students : This will help in determining the extent of stock of various books to be kept for sale.
(e) Number of Competitors : Number of book shops in the locality can be found out. What strategies the competitors follow can be determined.
(f) Income Group : The strength of various income groups can be identified.
(g) Pattern of Expenditure : Pattern of expenditure of the household will be identified, the quality of books, copies etc. preferred by majority of households, size of copies preferred, etc. can be included.
(h) Location : Most preferred location for purchasing things could be found out. The shop in that locality will have more chances of success.

Q2. How does Market Mix play an important role in enhancing the sale ? (6 marks)
Ans. Marketing Mix plays an important role in enhancing the sales of the enterprise. Its following components help in raising the sales :
(a) Product : If various features and characteristics of the product are to the liking of majority of the potential customers, the sales is automatically going to be higher. Effective after sale service, efficient utilization of know-how, full capacity production will create good support of the product. Consequently sales will be enhanced.
(b) 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.
(c) 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.
(d) Distribution : Various channels of distribution can be effectively used by entrepreneur depending on nature of market, preference of consumers and nature of the product. Shorter is the channel of distribution more efficient is distribution.

Q3. What is Trade Marking ? Why is it necessary ? (5 marks)
Ans. The process of providing mark of trade by the enterprise to its product is Trade Marking. By this process a sign, symbol, word, asset of words, picture, etc. is provided to the product. The Trade Mark becomes identification Mark of the product.
Trade Marking is necessary because of following :
(1) Essentiality : Some of the products need a Trade Mark for their sale. They may be a product of business house or may be a new enterprise.
(2) Identity : Trade Mark provides identity to the product and product recognition due to Trade Mark.
(3) Reach : An easy and simple Trade Mark always reach to maximum possible customers. The product, thus become famous.

Q4. Explain the rules for goal setting. (6 marks)
Ans.
(i) Business goal need to be relevant : To be relevant, a business goal has to be profitable. That’s not to say that every business goal has to be measurable in rupees, but it does have to possess a clear advantage or benefit to the specific business.
(ii) Business goals need to be actionable : Business goals should be developed from general statements with specific actions that can be performed and evaluated. Goals without action plans are just pretty words.
(iii) Business goals need to be achievable streaches : The purpose of business goal is to move the businesses forward so the bar should be positioned very carefully when setting business goals.

Q5. Explain in detail “Marketing Strategy”. (6 marks)
Ans. Marketing Strategy is a process that can allow an organisation to concentrate its resources on the optimal opportunities with the goals of increasing sales and achieving a sustainable competitive advantage.
Marketing strategy includes all basic and long-term activities in the field of marketing that deal with the analysis, the formulation, evaluation and selection of market-oriented strategies and therefore contributes to the goals of the company and its marketing objectives. A marketing strategy is composed of several strategies for growth as well as interrelated components called the marketing mix.

Q6. Explain the following terms :
(i) Patents.
(ii) Copyright.
(iii) Industrial design.
(iv) Trade Mark.
(v) Price.
(vi) Trade secret.
(6 marks)
Ans.
(i) Patents : It grants an investor the right to exclude others from making, using, selling, offering to sell and importing an invention for a limited period of time, in exchange for the public disclosure of the invention.
(ii) Copyright : It gives the creator of original work exclusive rights to it, usually for a limited time. It applies to a wide range of creative, intellectual or artistic forms or work. For example, musical composition, literary work such as poems, plays, etc.
(iii) Industrial Design : It protects the usual design of objects that are not purely utilitarian. It can be a two or three dimensional pattern used to produce a product, industrial commodity or handicraft.
(iv) Trade Mark : It is a recognizable sign, design or expression which distinguishes products or services of other trades.
(v) Price : Price refers to the value that is put on a product. It depends on cost of production, segment targeted, ability of the market to pay, supply-demand and a cost of other direct and indirect factors.
(vi) Trade Secret : Any confidential business information which provides an enterprise a competitive edge may be considered as a trade secret.

Q7. What are the features of marketing ? (6 marks)
Ans.
(i) Need and want : The focus of marketing is need and want of customers. All the activities in the market are carried out with the main motive of satisfying needs and wants of customers and organizations.
(ii) Creating a market offering : Market offering means offering a product or service by specifying its features, shape, size, colour, etc. A good market offer should keep in mind the satisfaction of customers.
(iii) Customer value : Customer is ready to give a price for the product only when he gets satisfaction or only when product is offering utilities matching to the price. Customer values the product on the basis of satisfaction and service offered by the product. Marketer must add value to the product so that customers prefer his product over the competitor.
(iv) Exchange mechanism : The process of marketing involves exchange of products and services for money or money’s worth. In exchange, customers pay money and in return they take product or services which satisfy their needs and wants. Exchange can take place directly between manufacturer and customer or through middlemen.

Q8. Explain the qualities/features of a good brand name. (6 marks)
Ans. While selecting a brand name, attention must be paid to the following :
(i) Brand name should be short and simple as long and complicated names are difficult to recognise and remember. Example : Lux, Dettol, etc.
(ii) Brand names should be easy to pronounce. If they are difficult, customer may hesitate to demand for it. Example : Product names like Heinz, etc. are difficult to pronounce.
(iii) Brand name should be suggestive, i.e., it must suggest the utility of the product. Example : Hair and Care suggests care of hair, etc.
(iv) Brand name should be unique and distinctive. It should be very different and should not lose its identify. Example : Oral B, Colgate, etc.
(v) Brand name should be selected after considering its meaning in other languages and cultures. Example : brand name Nova (given to Ambassador Car) means “does not go” in Spanish. Such types of names should be avoided.