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

Q1. Identify the intermediaries involved in the indirect selling mode. (CBSE 2011 A.I.) (3 marks)
Ans.

(i) One level channel : Manufacturer → Retailer → Customer.
(ii) Two level channel : Manufacturer → Wholesaler → Retailer → Customer.
(iii) Three level channel : Manufacturer → Agent → Wholesaler → Retailer → Customer.

Q2. What type of distribution would you adopt for consumable and perishable products.  (CBSE 2010 Comptt.) (3 marks)
Ans.
Direct selling mode will be preferred for consumable and perishable goods. Milk is such a product. This mode do not have any wholesaler or mediator. Longer is the chain of distribution greater is the time taken for the distribution. Few persons appointed exclusively for the distribution of product will ensure speedy delivery and quick recovery of the invested money.

Q3. Distinguish between the direct selling mode and the indirect selling mode. (3 marks)
Ans.
Direct selling mode and the indirect selling mode can be distinguished under following headings :
(a) Length of Channel : Direct selling mode has shortest length of channel whereas, indirect selling mode has longer length of channel.
(b) Competition : In case of intense competition in the market, the direct selling mode is preferred whereas in case of less intense competition, indirect selling mode is preferred.
(c) Nature of Product : Product having shorter shelf-life like milk, vegetable etc. are sold through direct selling mode, whereas products with more shelf-life is sold through indirect selling mode.

Q4. When does an entrepreneur employ dealers for sales ? (3 marks)
Ans. 
An entrepreneur can employ dealers for sales when :
(a) The product is having longer shelf life.
(b) The size of market is very large.
(c) Market is spread to larger distances.
(d) The expenditure on the product is very small .
(e) The producer is willing to take less risk.
(f) Large-scale production is undertaken by the producers.
(g) The entrepreneur launches a new product.

Q5. How does the nature of products affect the distribution mix? (3 marks)
Ans.
Nature of product plays an important role in distribution mix. This can be explained using following :
(a) Unit value of the product : When the product is very costly it is best to use a small distribution channel. Whereas, for less costly products long distribution channel is used.
(b) Perishability : For perishable goods direct selling should be preferred whereas for durable goods long distribution channel can be used.
(c) Technical Nature : If a product is of technical nature, then it is better to use direct selling method. This helps the user to know the necessary technicalities of the product.

Q6. Why is direct selling preferred for a competitive market ? (3 marks)
Ans.
Direct selling is preferred in perfect competition due to following reasons :
(a) More Number of Competitors : As the number of competitors are more therefore, direct selling mode is convenient method for reaching the consumers easily and quickly.
(b) Views : Customer’s views can be obtained easily. The feedback of customers can be used to make further changes in the product.
(c) Convenience : It is convenient from the customers point of view. Delay in supply is avoided by using direct method.

Q7. What are the factors you would keep in mind for the distribution of a seasonal good in market ? (3 marks)
Ans.
Following factors would be kept in mind :
(a) Proper planning for the distribution is made in advance.
(b) Financially strong channel members like dealers are appointed.
(c) Quick transportation arrangements are planned.

Q8. Write a short note on distribution/place mix. (3 marks)
Ans.
A channel of distribution or trade channel is defined as the path or route along which goods move from products or manufacturers to ultimate consumers or industrial users. In other words, 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 products, 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.

Q9. What are the three types of flows of a channel of distribution ? (3 marks)
Ans.
A channel of distribution consists of three types of flows :
(i) Downward flow of goods from producers to consumers.
(ii) Upward flow of cash payments for goods from consumers to producers.
(iii) Flow of marketing information in both downward and upward direction, i.e., flow of information on new products new uses of existing products, etc. from producers to consumers. Flow of information is the form of feedback on the wants, suggestions, complaints, etc. from consumers/user to producers.

Q10. How do government related considerations affect the selection of channel of distribution ? (3 marks)
Ans.
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. In this situation, the manufacturer of medicines should take care that the distribution of his product takes place only through such middlemen who have the relevant license.

Q11. Explain three considerations which affect the selection of the channel of distribution. (3 marks)
Ans.
(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.
(iii) Possibilities of sales : Such a channel which has a possibility of large sale should be given weightage.

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FAQs on Short Type Questions - Enterprise Marketing, Entrepreneurship, Class 12 - Additional Study Material for Commerce

1. What is enterprise marketing?
Ans. Enterprise marketing refers to the strategies and activities undertaken by a business organization to promote its products or services to other businesses. It focuses on targeting the needs and preferences of the business-to-business (B2B) market rather than individual consumers.
2. What are the key differences between enterprise marketing and consumer marketing?
Ans. The key differences between enterprise marketing and consumer marketing are: 1. Target audience: Enterprise marketing targets other businesses as customers, while consumer marketing targets individual consumers. 2. Decision-making process: In enterprise marketing, the decision-making process is usually more complex and involves multiple stakeholders, whereas in consumer marketing, the decision is made by the individual consumer. 3. Purchase volume: Enterprise marketing typically involves larger purchase volumes, as businesses often buy in bulk or on a recurring basis, whereas consumer marketing focuses on individual purchases. 4. Marketing channels: Enterprise marketing often utilizes different channels such as trade shows, industry events, and direct sales, while consumer marketing relies heavily on traditional advertising mediums like television, radio, and social media.
3. What are the key components of an enterprise marketing strategy?
Ans. The key components of an enterprise marketing strategy include: 1. Target market analysis: Identifying and understanding the needs, preferences, and characteristics of the target business market. 2. Value proposition: Developing a compelling value proposition that clearly communicates the unique benefits and value that the business offers to its target customers. 3. Marketing channels: Determining the most effective marketing channels to reach the target audience, such as industry publications, trade shows, online platforms, and direct sales. 4. Relationship building: Focusing on building strong relationships with key decision-makers and influencers in the target market through networking, partnerships, and personalized communication. 5. Measurement and optimization: Implementing tracking and measurement systems to assess the effectiveness of marketing efforts and making necessary adjustments to optimize performance.
4. What are the benefits of enterprise marketing for businesses?
Ans. The benefits of enterprise marketing for businesses include: 1. Increased sales and revenue: Effective enterprise marketing strategies can help businesses attract and acquire new customers, leading to increased sales and revenue. 2. Stronger customer relationships: By understanding the needs and preferences of the target business market, businesses can build stronger and more personalized relationships with their customers, leading to customer loyalty and repeat business. 3. Competitive advantage: Well-executed enterprise marketing strategies can differentiate a business from its competitors, allowing it to stand out in the market and gain a competitive advantage. 4. Business growth and expansion: Successful enterprise marketing can open doors to new market opportunities and potential partnerships, enabling business growth and expansion into new territories or industries. 5. Industry influence and thought leadership: Through enterprise marketing efforts, businesses can establish themselves as industry leaders and experts, gaining influence and credibility within their respective markets.
5. How can entrepreneurs leverage enterprise marketing to grow their businesses?
Ans. Entrepreneurs can leverage enterprise marketing to grow their businesses by: 1. Identifying target market segments: Understanding the specific needs and pain points of the target business market and tailoring marketing messages and solutions to address those needs. 2. Building strategic partnerships: Collaborating with other businesses to leverage their existing customer base, industry expertise, or distribution channels, which can help expand reach and accelerate growth. 3. Demonstrating thought leadership: Establishing themselves as industry experts by sharing valuable insights, thought-provoking content, and participating in relevant industry events or forums. 4. Providing exceptional customer experiences: Focusing on delivering exceptional customer service and building long-term relationships to foster customer loyalty and advocacy. 5. Continuously adapting and innovating: Staying updated with industry trends, emerging technologies, and customer preferences to adapt marketing strategies and offerings accordingly, ensuring sustained growth and competitiveness.
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