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

Q1. Define advertising and explain its three features which can be identified through the definition. (4 marks)
Ans. Advertising is a paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor.
Its three features which can be identified by the definition are :
(i) Paid form : The sponsor has to pay for advertising. He has to bear a cost to communicate with others.
(ii) Impersonality : There is no face-to-face contact between customers and advertiser. It creates a monologue and not a dialogue.
(iii) Identified sponsor : Advertisement is given by an identified company or firm or individual.

Q2. State how advertisement empowers the customers. (CBSE 2012, Comptt.) (4 marks)
Ans. An advertisement empowers customers in following manner :
(i) It provides both quantitative and qualitative information about the products to the customers.
(ii) It facilitates the customer to raise his standard of living by knowing and buying the products.
(iii) It enables intelligent buying and thus has an educative value.
(iv) It teaches values to those who are not trained buyers and help them in selecting a product.

Q3. What is Sales Promotion ? State its objective. (CBSE 2009, Comptt.) (4 marks)
Ans. Sales promotion consists of all promotional activities other than advertising, personal selling and publicity that stimulate market demand for products.
Objectives :
(i) To introduce new products in the market.
(ii) It increases sales in the slack season.
(iii) It creates goodwill among the present as well as prospective customers.

Q4. What are the disadvantages of advertising through radio ? (3 marks)
Ans. Though radio is very popular media but it has some disadvantages too :
1. It cannot permit selective advertisement.
2. It has low memory value.
3. The message may be lost if radio is not tuned.

Q5. What mode of advertisement will you use to reach remote rural sectors ? Why ? (3 marks)
Ans. The suitable mode of advertisement to reach remote rural sectors will be radio. It has following merits :
(a) It covers large number of people of the rural sectors.
(b) It reaches to illiterate people who cannot read newspapers and magazines.
(c) As radio is most popular mode in remote areas so advertisement can be included in different programmes meant for people.

Q6. What are the advantages of advertising through the transport system ? (3 marks)
Ans. Transport advertisement is a common type of advertisement in which public transports like trains, buses, and autorickshaws are used for display of advertisement.
(a) It is economical and within the reach of all entrepreneurs.
(b) It connects a wide range of mobile customers.

Q7. What are the disadvantages of advertising through the transport system ? (3 marks)
Ans. Though this mode of advertisement is a common type of advertisement but it has some demerits :
1. Long message cannot be conveyed through this mode.
2. It is useless for illiterate people.
3. If it is overlooked the entire value of advertisement is lost.

Q8. If you were to market a cosmetic item, what steps would you take to optimize your expenditure in advertising with maximum returns ? (3 marks)
Ans. Following steps will be taken :
(a) Electronic displays and hoardings will be used as they remain for longer duration of time.
(b) Advertising on autorickshaw, trucks, city buses, etc. will be undertaken for covering the wider range of customers.
(c) Here, mailing directly to the customers will be undertaken.

Q9. What functions are facilitated by personal selling ? (3 marks)
Ans. Personal selling facilities many functions :
(a) Order Booking.
(b) Enquiry Generation.
(c) Technical Assistance.
(d) Customer Service.
(e) Price Negotiation.
(f) Collection of Payments.
(g) Market Assessment. (Any six)

Q10. Advertising through television is favourable to big enterprise. But, indirectly it affects small emerging entrepreneurs. Do you agree ? Justify your answer. (3 marks)
Ans. Advertising generally means communicating the message of manufacturer or advertiser to the consumers. By advertising producer gives a detailed information about the product. The big enterprise invests huge amount of capital and produces in large scale with the severe competition in the market. For all these advertising is essential to attract the customer towards their product. Advertising through television is costly but it is easily affordable by big enterprise.

Q11. Why should a salesman have an understanding of the consumer’s behaviour ? (3 marks)
Ans. Salesmanship consists of wining the buyer’s confidence for seller’s goods thereby winning a regular and permanent customer. A salesman should have understanding of the consumer’s behaviour and educate the customer and provide a solution which help him to win the buyer’s confidence and satisfy their needs which lead to increase the sales for the salesman.

Q12. Name any five important modes of advertising. (4 marks)
Ans. The important modes of advertising are :
(i) Television,
(ii) Newspapers,
(iii) Radio,
(iv) Direct mail,
(v) Outdoor advertising.

Q13. Why should we advertise ? (TBQ) (4 marks)
Ans.
(i) To create a need and stimulate a demand.
(ii) To minimize the marketing cost.
(iii) To facilitate speedy movement of products.
(iv) To create goodwill.
(v) To help in expansion and diversification.
(vi) To help in stabilizing the business. (Any four)

Q14. What is the difference between ATL & BTL? (4 marks)

Ans.

Q15. What are the rules for advertising ? (4 marks)
Ans.
(i) Aim : What is the primary purpose of advertisement ?
(ii) Target : Who is the target ?
(iii) Media : Which of the available media are most suitable.
(iv) Competitors : Can you improve on the approach of competitors and beat them in competition.

Q16. What is AIDA ? (TBQ) (4 marks)
Ans. AIDA means : Attention : It catches the eye or ear and stands out amid the clutter of competing advertisements.
Interest : It arouses interest and delivers sufficient impact in the message or offering.
Desire : It creates a desire to learn more ownship.
Action : It spurs an action which leads to achievements of original objectives.

Q17. “Personal selling is a better method of sales promotion than advertising”. How ? Explain with the help of any three points. (CBSE 2014) (3 marks)
Ans.
(i) Effective Promotional Tool : Personal selling is a very effective promotional tool, which helps in influencing the prospective buyers about the merits of a product and thereby increasing its sales.
(ii) Two-way communication : Salesman functions as the “eyes and ears” of the producers. He helps in improving the products and sales policies by passing on the information about the likings and dislikings of customers.
(iii) Consumer Attention : Through personal selling it is easy to get the attention of customer as there is face to face interaction between salesman and customers.

Q18. What are the different roles played by a sales person ? (TBQ) (3 marks)
Ans.
(i) Be persuasive.
(ii) A service provider.
(iii) Be informative.

Q19. What are Public Relations ? (3 marks)
Ans. It is the deliberate, planned and sustained effort to establish and maintain mutual understanding between an organization (or individual) and its (or their) public.

Q20. Who is a stakeholder ? (TBQ) (4 marks)
Ans. Stakeholders are various groups in a society which can influence or pressure the business decision making and have an impact on its marketing performance.

Q21. What are the main public relations tools ? (TBQ) (4 marks)
Ans.
(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.
(vi) Community activities and sponsorships.

Q22. What do you mean by promotion ? (3 marks)
Ans. Promotion refers to all the activities undertaken to make the product or service known to the user and trade. This can include advertising, word of mouth, press reports, incentives, commissions and awards to the trade. It can also include consumer schemes, direct marketing, contests and prizes.

Q23. What is sales strategy ? (3 marks)
Ans. Sales strategy is a plan that positions a company’s brand or product to gain a competitive advantage. Successful strategy helps the sales force focus on target market customers and communicate with them in relevant and meaningful ways.

Q24. Explain the different types of sales strategies. (TBQ) (4 marks)
Ans.
(i) Direct sales strategy : In this types sales of strategy people compare their product with competitor’s product. It is referred as “negative selling”.
(ii) Indirect sales strategy : The sale of a good or service by a third party such as partner rather than a company personnel.

Q25. State the benefits of sales promotion techniques. (4 marks)
Ans.
(i) Short and immediate effect on sale.
(ii) Stock clearance is possible with sales promotion.
(iii) Sales promotion techniques include customers as well as distribution channels.
(iv) Sales promotion techniques help to win over the competitors.

Q26. How are public relations significant ? (3 marks)
Ans. Public relations are significant in the following ways :
(i) Help to convey the policies and programs of the organization.
(ii) Help to collect information about public opinion about the organization, management activities, etc.
(iii) To overcome the complaints and dislikes of public.
(iv) To mould people’s attitude in favour of organization.
(v) To maintain goodwill and understanding between organization and public.
(vi) To build an image of the organization.

Q27. State the significance of sales strategy. (3 marks)
Ans.
(i) Effective sales strategy looks at long term sales goals and analysing the business sales cycle.
(ii) Help the managers know the changes and motivate the sales team.
(iii) Along with long-term and short-term sales, strategy such as monthly, weekly, etc. are also made.

Q28. What are the considerations of sales strategy ? (4 marks)
Ans.
(i) Market knowledge.
(ii) Awareness of competitor’s activities.
(iii) Current trends.
(iv) Detailed business analysis.
(v) Hiring professionals for guidance.

Q29. Explain the demerits of above the line promotion strategy. (4 marks)
Ans.
(i) It is difficult to make the message to large audience, a memorable one.
(ii) It is expensive.
(iii) It is difficult to promote the product for a specific group of consumers.
(iv) It is viewed by mass audience and they have different taste and need.