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

Q1. Name and explain the element of promotion mix that would help in making people aware that a branch of a reputed restaurant is opening in their locality. Also mention some other areas in which this element provides help to the entrepreneur. (CBSE 2011, Comptt.) (5 marks)
Ans. Adversiting is the element of promotion mix that would help in making people aware that a branch of a reputed restaurant is opening in their locality. Advertising is used for communicating some business information to the present and prospective customers through some paid media.
Business objectives can be achieved through advertising :
1. To create a need and stimulate a demand.
2. To minimize the marketing cost.
3. To facilitate speedy movement of products.
4. To create goodwill.
5. To help in expansion and diversification.
6. To help in stabilizing the value for the product.
7. To help in stabilizing the business.
8. To create a customer support and customer acceptance for the product.
9. To monitor and control the buying habits of the consumers.

Q2. Name and explain the element of promotion mix that would help in clearing the stock of off-season goods. Also mention the objectives of this element. (CBSE 2011 Comptt.) (6 marks)
Ans. Sales promotion is the element of promotion mix that would help in clearing the stock of off-season goods.
Sales promotion, in a specific sense, refers to those sales actualities that supplement both personal selling and advertising and co-ordinate them and help to make them effective, such as displays, shows and expositions, demonstration and other non-recurrent selling efforts not in the ordinary routine.
Objectives of sales promotion are as follows :
1. To introduce a new product into the market.
2. To build a bridge between the entrepreneur and the customer.
3. To encourage sale of a product.
Sales promotion techniques :
1. Price off or rebate.
2. Samples.
3. Premiums.
4. Quantity plus.
5. Coupons.
6. Contest.
7. Buying allowance.
8. Display of goods.

Q3. What is advertising ? State with reason the mode of advertising you would adopt to sell ‘Fast moving consumer Goods’ in urban centres. (6 marks)
Ans. Advertising : Advertising is used for communicating some business information to the present and prospective customers through some paid media. Advertising usually provide information about the advertising firm, its product depending on product quality, place for availability of its products, etc.
Television : One of the most powerful and popular modes of advertisement is television. It is very useful for ‘FMCG. It has a large coverage and the reach is easy and speedy. The product attributes can be easily communicated even to the illiterate through visuals. But it is expensive and not within the reach of every entrepreneur, manufacturers and traders.
With the help of advertising we would facilitate following functions :
(i) To make an anouncement of the sales promotion scheme.
(ii) To expand the distribution network.
(iii) To support the personal selling efforts.
(iv) To boosts the image of the company.

Q4. How does advertising help an enterprise ? (6 marks)
Ans. Advertising helps an enterprise to achieve the following objectives :
1. Stimulates a Demand : It creates a continuous need and increases the demand for existing product.
2. Marketing Cost : It results in increasing the demand for the product, at the same time increases the volume of production and minimizes the marketing cost.
3. Movement : It facilitates speedy movement of product.
4. Goodwill : It creates a good reputation for the company and the entrepreneur. For example, Lux soap, Tata Tea which have a good impression in the minds of people.
5. Expansion : It helps in expansion and diversification of the products.
6. Stabilization : It helps to maintain the business of an entrepreneur and value of the products.
7. Customer Acceptance : It creates a customer support and customer acceptance for the product. This facilitates enhancing the confidence of the customer in the product. (Any six)

Q5. Write down the features of Personal Selling. (5 marks)
Ans. The features of personal selling or sales-manship are as follows :
(a) Personal Contact : In this both parties have personal contact with each other. It involves personal and individual communication.
(b) Verbal Message : There is an exchange of verbal messages between buyers and the sales personnel about the description of the product i.e., price, colour, shape, design, method of usage, etc.
(c) Flexibility : It is flexible.
(d) Effort : It makes an honest effort to induce the customer to buy the products.
(e) Removal of Doubts : Before purchasing the goods the buyer has many doubts and the salesman clear his doubts by answering to his questions.

Q6. What are the advantages of advertising through the radio ? (5 marks)
Ans. Radio is an important and popular medium for advertisements. It has great advantages :
1. It is economical and easily affordable by the entrepreneurs, manufacturers and traders.
2. It covers large area of the audience.
3. Flexibility of timing.
4. Quick announcement can be made.
5. Easily suitable for illiterates.
6. Different languages can be used for different regions.
7. Repetition of advertisements can be possible at a lesser cost.

Q7. Advertisement through newspapers and magazines is a common method. Analyse its merits and demerits. (6 marks)
Ans. It is very common method of publicity through newspaper and magazines.
Merits of newspaper advertisements are as follows :
1. It circulates in large area by which it can reach millions of persons at insignificant cost.
2. Advertisement can be repeated many times.
3. Easily changeable in size and content whenever required.
4. It is less costlier as per electronic media.
Demerits of newspaper advertisements are :
1. It has short span of life. Once the paper is read its value is over.
2. It is of no use for illiterate consumers.
3. Most of the newspapers do not have coloured and attractive advertisements.
4. Lifetime of newspaper is very short.
Merits of advertisement in magazines are :
1. It can be preserved for longer time.
2. It covers a wide range of customers of all categories.
3. They are expected to give better results than newspapers.
4. It is best for coloured and attractive advertisement.
Demerits of advertisement in magazines are :
1. It is highly expensive.
2. Frequently changing of advertisement cannot be made.

Q8. What are the advantages of advertising through television ? (6 marks)
Ans. Television is one of the most important mode of advertising.
The various advantages are as follows :
1. It has a longer life.
2. It works as a mediator between manufacturer and consumer.
3. It provides opportunity of viewing, listening and understanding the use of the p roduct in a detailed manner.
4. The product attributes can be easily communicated even to the illiterate through visuals.
5. The product can gain quick popularity.
6. Businessman can also sponsor attractive programmes (like cricket match, films, serials, etc.)

Q9. 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. 
Or
Assuming you plan to manufacture detergent powder. How would you assess the size of the market of your locality ? What strategies would you adopt to sell the product ? Explain. (CBSE 2010 Comptt.) (6 marks)
Ans. There are large number of sales promotion techniques :
(1) Price off or Rebate : It is generally offered to the customers to increase sales. In this, the offered price is less than normal price.
(2) Samples : An entrepreneur can distribute free samples to the customers to get popularity for his new product.
(3) Premiums : In this technique, the seller offers a gift for each purchase. It means gift along with the product or inside the product package.
(4) Quantity Plus : In this seller offers more quantity at no extra cost.
(5) 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.
(6) 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.
(7) Buying Allowance : Special discounts are offered to a trade for a specific period.
(8) 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 brief information of the available product with him.

Q10. Distinguish between advertising and sales promotion. (5 marks)
Ans.

Q11. What are the qualities of a good salesman ? (6 marks)
Ans. Salesman is a person who directly makes contacts with the customer. The salesmen of different enterprises perform their task differently in terms of their education, skills and other qualities. Good salesman always considers all these duties while performing his duties.
The qualities of a good salesman are as follows :
(1) Physical Appearance : He should have a good physical appearance and pleasing personality to attract his customers.
(2) Thorough Knowledge of Goods : He should have a through knowledge of the product like its nature, attributes, merits and demerits, price, size and its position in the market compared to others.
(3) Resourcefulness and Enthusiasm : A Salesman is an entrusted person for an entrepreneur. So, to do his job properly, he must show energy, enthusiasm and should have ambition.
(4) Preparation for the Visit : While visiting to his customer he must have complete knowledge of selling techniques, support document, demonstrative items, samples, etc. He must take prior appointment with his customer and elicit positive response from them.
(5) Understand the Buyers : Sellers must go along with the interest of the buyer. While dealing with his customer he should remain courteous and have patience. He should match the interest of the customer. He must clear all the doubts of the customer regarding product and must provide him sound and satisfying answer.
(6) Trust Worthiness : A salesman should be social and have the ability to listen to the customers and should create confidence in the mind of the buyers with fair dealing. He should never give any false assurances to the customers. Developing trustworthiness will help salesman in winning permanent, regular and long standing customers.

Q12. Assuming, as a young entrepreneur, you are investing in floriculture. What types of sales promotion techniques would you adopt ? (6 marks)
Ans. The various types of sales promotion techniques used by an entrepreneur investing in floriculture are as follows :
(a) Price Off : Offers a discount in the price for a special period, e.g., New year, Friendship day, etc.
(b) Premium : Offering aim incentive for each purchase from the wholesalers by retailers and from the retailers by the consumers e.g., purchase of worth ` 1000 by a retailer from a wholesaler, for that wholesaler offers 1 bouquet free.
(c) Quantity Plus : Offering more quantity at no extra cost.
(d) Display of Goods : Special display of goods like racks, window display. By this he can persuade the buyers to buy a product.

Q13. What is sales strategy ? What are its components and considerations ? (6 marks)
Ans. A sales strategy consists of a plan that positions a company’s brand or product to gain a competitive advantage.
Successful strategies help the sales force to focus target market customers and communicate with them in relevant and meaningful ways. 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.
Components of sales strategy are :
(i) Product placement.
(ii) Promotion.
(iii) Testimonials.
(iv) Core selling strategies Considerations : Creating an effective sales strategy requires market knowledge, awareness of competitor activities, awareness of current trends and detailed business analysis. Small business owners wishing to create and implement a sales strategy for the first time may want to hire a professional business consultant to help guide the process.

Q14. Discuss the various approaches a company can use to promote its products. (6 marks)

Ans.
(i) Above-the-line : These promotions use mass media methods. They type of promotion focuses on advertising to a large audience. It includes conventional media like print, online, television and cinema advertising. Abovethe-line activities include advertisements in the press. They are produce online banner advertisements, place advertisements on bill boards and use their website to meet the needs of their consumers. These type of promotions are very expensive.
(ii) Below-the-line : Below-the-line methods are very specific, memorable activities focus on targeted groups of consumers. They are under the control of the organisation. The purpose of these activities has been 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”.

Q15. Explain the features of advertising ? (6 marks)
Ans.
(i) Reach : Advertising can reach a large market. Through various media of advertising there is benefit of mass reach. Example : any message on radio or T.V. can reach in different corners of the country.
(ii) Choice : There is a wide variety of media available for advertising like video, audio, visual audio, print media, etc. This variety or choice helps the marketer to select the media, keeping in mind the targeted customer.
(iii) Legitimacy : In advertisement the messages regarding the product or serivce are given publicly to customers so there is always a proof for it and customers believe that publicly the company will not give false information of the product. The customer feels comfortable to buy a product which is widely advertised.
(iv) Expressiveness : Advertising provides enough opportunities to marketers to dramatise the message with the help of drawings, colours, pictures, music, dance, etc. They can easily express the use of product through various techniques and can add multimedia effect also.
(v) Economy : It is always felt that advertising increases the cost of product or service but advertising is considered economical as compared to other promotional techniques because it reaches masses and if we calculate cost per customer it is very low or nominal.
(vi) Enhancing customer satisfaction and confidence : Customer feel more assured about quality and feel more comfortable if sponsors claim the benefits in advertising.

Q16. What are the factors to be considered while selecting the medium of advertising ? (6 marks)
Ans.
(i) Selectivity : This refers to the ability of a medium to reach a particular audience. The advertisement must reach the customers for which the product is useful. These customers are known as target markets. If target market is people living in rural area then medium should be radio.
(ii) Coverage : This refers to number of audience a particular medium can reach. The marketeer must find out the number of customers it wants to reach.
(iii) Flexibility : This refers to case with which the advertisements can be changed or modified. It is very difficult and costly to make changes in Radio or TV advertisements. If frequent changes in advertisements are needed than banners should be selected.
(iv) Cost : It refers to payment or charges paid by marketeer for certain time and space. The marketer must measure the benefits of advertising and then select the media. The benefits must be more than the cost involved in advertising.
(v) Editorial environment : It refers to nature of information to be given through advertisement. For example the industrial goods are advertised in business magazines and not in comics.
(vi) Permanence : It refers to durability of medium. Generally the advertisements given on TV and Radio are not very long lasting because people often forget about the information given in them. But magazines and journals are kept and collected and subscribers do refer to them later also so advertisements in magazines are more long lasting and durable.

Q17. Explain the different types of media available for advertising along with their advantages and drawbacks. (6 marks)
Ans. The following are the different types of media available for advertising :
(i) Newspapers : Newspapers are one of the most popular print media available to the advertisers.
Advantages :
(a) Newspapers offers mass coverage or reach.
(b) Because of large circulation average cost per paper becomes very low.
(c) Messages given in newspaper tend to be more believable by customers.
(d) Newspapers allow flexibility in message and design, etc.
Drawbacks :
(a) Advertisement of newspaper has very short life of one day only.
(b) Through newspapers firms can reach only literate customers.
(c) The production and print quality of newspaper is poor.
(ii) Magazines : These are another set of print media which focus target group.
Advantages :
(a) Life of advertisement is longer.
(b) Audience spend more time in reading advertisement in magazines.
(c) Magazines add creditability to the message because of their reputation.
Drawbacks :
(a) Magazines have less frequency.
(b) Magazines offer less flexibility in message.
(c) Dramatisation like visual media is not possible.
(iii) Television : Television is the latest and most popular medium of mass-communication.
Advantages :
(a) This medium is audio-visual which combines light, sound and motion.
(b) Great dramatisation is possible.
(c) It has high reach.
(d) Television advertisement has catching power and better impact on customers.
(e) Advertisement through television can reach to illeterate customers also.
Drawback :
(a) It involves high cost.
(b) The advertisements are shown for a short span only.
(iv) Radio : This medium of advertising has been very popular till the middle of last century because of its mass reach.
Advantages :
(a) Messages could reach the remotest area.
(b) Cost is low.
(c) Suitable for illiterate consumers also.
Drawbacks :
(a) It has only audio effect, so less attention is grabbed.
(b) Noise and disturbance bring interruption in message.
(c) It has short message life and leaves less impact.
(v) Outdoor : This medium includes banners, hoardings, bill boards in open spaces, etc.
Advantages :
(a) Some of the hoardings are very attractive when designed with electric display.
(b) They are eye catchy and leave impact over the minds or customers.
(c) Offer benefit of repeated exposures.
(d) High visibility and lower cost.
Drawbacks :
(a) Limited audience.
(b) Short attention span.
(c) Limited creativity.
(vi) Internet : It is the most recent advertising medium. It is an interactive medium and can deliver message more effectively.
Advantages :
(a) It is not very expensive.
(b) Message dramatisation is possible.
(c) Interactive media where two way conversation is possible.
Drawbacks :
(a) It has limited reach.
(b) Being a new medium the users are very few in number.

Q18. Explain the merits and demerits of sales promotion. (6 marks)
Ans.
Merits :
(i) Attention value : The incentives offered in sales promotion attract the attention of the people.
(ii) Useful in new product launch : The sales promotion techniques are very helpful in introducing the new product as it induces people to try new products as they are available at low price or sometimes as free sample.
(iii) Synergy in total promotion efforts : Sales promotion activities supplement advertising and personal selling efforts of the company. Sales promotion adds to the effectiveness of advertisement efforts.
(iv) Aid to other promotion tools : Sales promotion techniques make other promotion techniques more effective. Salesmen find it easy to sell products on which incentives are available.
Demerits :
(i) Reflect crisis : If firm is offering promotion techniques again and again, it indicates that there is no demand of product which can create crisis situation.
(ii) Spoil product image : Use of sales promotion tool may affect the image of product as buyers feel that product is of low quality that is why firm is offering incentives.

Q19. Explain the importance of personal selling to businessmen. (6 marks)
Ans. Personal selling is important to businessmen due to the following reasons :
(i) Effective Promotion Tool : Personal selling is an effective tool to increase the sale of a product. Salesman explain the merits of products to customers.
(ii) Flexible Tool : Personal selling efforts can be changed according to the type of customer salesmen a re attending. They may change the offer in varying purchase situations.
(iii) Minimum Wastage of Efforts : As compared to other methods of promotion in personal selling, the wastage of efforts is minimum.
(iv) Consumer Attention : Through personal selling it is easy to get the attention of customer as there is faceto-face interaction between salesman and customers.
(v) Relationship : Personal selling helps to create lasting relationship between customers and sales persons which help in increasing sale.
(vi) Personal Support : Through personal selling salesman can create personal support with the customers. This can improve competitive strength of the organisation.
(vii) Very Effective to Introduce New Products : Personal selling is very effective to introduce a new product as salesman can explain the merits, show the demonstration and clarify the doubts of customers.

Q20. Explain the importance of personal selling to customers. (6 marks)
Ans. Customers are benefited by personal selling in the following ways :
(i) Helps in identifying needs : Salesmen help the customers to discover their needs and wants and they also help customers to know how these needs and wants can be satisfied.
(ii) Latest market information : In personal selling salesmen provide information regarding the new products available in market, uses of those products, etc.
(iii) Expert advice : Customers can get expert advice and guidance in purchasing various goods and services.
(iv) Induces customers : Personal selling induces customers to buy products for satisfying their needs.

Q21. How is personal selling important to the society ? (6 marks)
Ans. Personal selling is important to the society in the following ways :
(i) Converts latest demand into effective demand : Personal selling create effective demand which results in increasing sale and more income. With more income there will be more products and services which inturn bring economic growth.
(ii) Employment opportunities : Unemployed youth can work as salesman and earn their livelihood.
(iii) Career opportunities : Personal selling offers attractive career with job satisfaction and security.
(iv) Mobility of sales persons : Sales people move from one place to other. This promotes travel and tourism industry.
(v) Product standardisation : With the help of personal selling there can be uniformity of consumption by supplying standardised products.

Q22. Differentiate between advertising and personal selling. (6 marks)
Ans.

Q23. Explain the tools of pubic relations. (6 marks)
Ans.
(i) News : Sometimes companies get involved in such kind of activities or make such policies so that they get some positive coverage in news. For example, a company’s name may be covered in news for reservation of jobs for women or for introducing new technology.
(ii) Speeches : The speeches given by the leaders of corporate sectors influence various members of public specially banks, shareholders, etc. Public relations department creates occasion when the speeches are delivered by the leader of company.
(iii) Events : Events refer to organising press conferences, multimedia presentation, stage shows, etc.
(iv) Written materials : Sometimes written materials such as Balance sheet, Annual Reports, special documents, etc. are circulated to various parties to improve and maintain public image of the company.
(v) Public service activities : Big business houses often associate themselves with various social service projects such as women welfare programmes, charity shows, planting trees on road side, etc.