Case Studies - Marketing Management

Q.1. Zoom Udyog, a car manufacturing Co., has started its business with Zoom 800 and slowly launched Zoom-1000, Wagon-Z, Swy-fy, etc. and offered various services like after-sales services, availability of spare parts, etc. Identify the element of the marketing mix referred to here. (1 mark)

Ans. Product - The different car models (Zoom 800, Zoom-1000, Wagon-Z, Swy-fy) together with associated services such as after-sales support and spare parts form the firm's product offering. This includes the product line, product variants and the product-service mix that delivers value to customers.

Q.2. Radha found a worm crawling out of a newly opened tetra pack of a juice manufactured by a reputed company, Zest, Ltd. She went back to the shopkeeper from whom the pack was purchased, who directed her to call up the customer care centre. When all her efforts failed, she went to a consumer activist group to seek help. The group decided to help Radha and took measures to impose restrictions on the sale of the firm's products of the particular batch and urged customers to refrain from buying the products of the company. Zest Ltd. lost its image in the market. The CEO gives the responsibility of bringing back the lost image of the company to a Manager.

1. Identify the concept of Marketing Management which will help the Manager get the firm out of the above crisis.
2. Also, explain the role of the above-identified concept by stating any two points. (4 Marks)

Ans.

1. Public Relations
2. Role of Public Relations:
   • Regain consumer trust through credible communication: PR arranges timely, factual communication (press releases, media briefings, independent test results) that explains what went wrong, what corrective steps have been taken (such as product recalls or enhanced quality checks) and what compensation or remedies are available. Clear and honest messages rebuild confidence.
   • Manage stakeholders and reputation in crisis situations: PR coordinates with regulators, retailers and consumer groups to contain the damage-issuing apologies if required, facilitating transparent investigations, and demonstrating accountability. These actions help restore the company's public image and protect long-term brand equity.

Q.3. The manager of Impact Enterprise, dealing in cosmetics, is facing the problem of poor sales. Suggest the four promotional measures that he can undertake to improve sales. Also, name the factors affecting their choice. (4 Marks)

Ans. The manager of Impact Enterprise, dealing in cosmetics, should consider the following promotional measures to improve sales:

1. Advertising: Use print, television, digital and social media to build awareness and communicate benefits such as ingredients, suitability and safety.
2. Sales Promotion: Offer short-term incentives like discounts, free samples, trial packs or buy-one-get-one offers to encourage trials and immediate purchases.
3. Personal Selling: Train sales staff to demonstrate products at retail outlets, beauty parlours and exhibitions and to give personalised advice to customers.
4. Publicity / Public Relations: Secure credible media coverage, influencer endorsements and expert reviews; participate in beauty events and public demonstrations to build trust.

Factors affecting the choice of promotional tool:

1. Nature of market: Size, buyer concentration and geographic spread determine media reach and personal selling needs.
2. Nature of product: Products needing demonstration or personal advice favour personal selling; simple mass products suit advertising.
3. Promotion budget: Available funds limit the number, frequency and channels of promotion.
4. Objectives of promotion: Whether the aim is awareness, trial, repeat purchase or repositioning influences which tools are selected.

Q.4. A mobile company is launching a new high-tech mobile phone in the market. Which department is going to look into the techniques of promoting it? (1 Mark)

Ans. Marketing / Advertising Department - The marketing or advertising team will plan and execute promotion techniques such as advertising, product launches, sales promotion and coordination with PR and digital teams to create awareness, generate interest and persuade buyers.

Q.5. Identify the Marketing Management philosophy adopted in the following cases:

1. Mansi, a shoe manufacturer for school students, decided to maximise her profit by producing and distributing on a large scale and thereby reducing the average cost of production.
2. Nisha, a school bag manufacturer, decided to improve the product for profit maximisation and thus added a water bottle holder to the existing design.
3. Jasdeep, a dealer in school uniforms, decided to maximise his profit by using different aggressive promotional efforts.
4. Amar is engaged in the manufacturing of refrigerators. He surveyed the market and found that customers need a refrigerator with a separate provision of water cooler in it. He decided to launch the same refrigerator in the market. (4 Marks)

Ans.

1. Production concept
2. Product concept
3. Selling concept
4. Marketing concept

Q.6. Identify the method of sales promotion in the following cases:

1. A mobile company offers a discount of Rs. 1000 to clear off excess inventory.
2. A customer gets Rs. 5 off on the return of an empty wrapper while making a new purchase of the same product.
3. A Company offers a pack of 1/2kg of sugar with the purchase of a 5 kg bag of wheat flour.
4. A Company offers 40% extra shaving cream in a pack of 500 g.
5. Scratch a card and get a gold coin with the purchase of a cold drink.
6. Purchase goods worth Rs. 50,000 and get a holiday package worth Rs. 10,000 free. (6 Marks)

Ans.

1. Rebate
2. Refund / Return allowance
3. Product combination / Bonus pack (Freebie)
4. Extra quantity / Quantity gift
5. Premium with purchase / Instant win (scratch card)
6. High-value premium / Promotional incentive (usable benefit)

Q.7. 'Various tools of communication are used by the marketers to promote their products.'

1. Why do companies use all tools at the same time?
2. Name and explain the most commonly used non-personal tool of promotion, which is paid for by the marketer.
3. Which tool of promotion will primarily be used for the following?
   A. To promote or protect a company's image or its individual products.
   B. An existing product meant for mass usage by literate people.
   C. To introduce a new product to a particular class of people through door-to-door visits.
   D. To attract the attention of the people by using incentives. (6 marks)

Ans.

1. Companies use multiple promotional tools together because different tools serve different purposes and audiences and complement one another. For example, advertising builds broad awareness while personal selling addresses individual queries; PR manages reputation and sales promotion drives immediate trial. The final mix depends on target audience, product nature, budget and promotional objectives.
2. Advertising: Advertising is a paid, non-personal form of communication sponsored by an identified source. It reaches large audiences, builds brand awareness, communicates product benefits and can be placed across media such as television, print, radio and digital platforms.
3. The tools of promotion used are:
   A. To promote or protect a company's image or its individual products: Public Relations
   B. An existing product meant for mass usage by literate people: Advertisements (print and digital)
   C. To introduce a new product to a particular class of people through door-to-door visits: Personal selling / Direct selling
   D. To attract the attention of the people by using incentives: Sales Promotion (contests, discounts, free samples)

Q.8. Good Living Ltd. manufactures mosquito repellent tables. These tablets are packed in strips of 12 tablets each. Each of these strips is packed in a cardboard box; 48 such boxes are then placed in a big corrugated box and delivered to various retailers for sale. State the purpose of packaging the tablets in a corrugated box. (1 Mark)

Ans. The corrugated box serves storage, protection and transportation purposes. It protects individual retail boxes during handling and transit, allows safe stacking, groups units for efficient distribution and makes identification and labelling easier for wholesalers and retailers.

Q. 9. Shreemaya Hotel in Indore was facing a problem of low demand for its rooms due to the off-season. The Managing Director (MD) of the hotel, Mrs. Sakina, was very worried. She called upon the Marketing Manager, Mr Kapoor, for his advice. He suggested that the hotel should announce an offer of '3 days and 2 Nights hotel stay package with free breakfast and one day religious visit to Omkarehswar and Mahakaleshwar Temples'. The MD liked the suggestion very much. Identify the promotional tool which can be used by the hotel through which a large number of prospective pilgrimage tourists, all over the country and also abroad, can be reached, informed and persuaded to use the incentive.  (1 Mark)
Ans. Sales Promotion - the special package is a short-term incentive designed to stimulate immediate bookings. To reach a large number of prospective pilgrims, the hotel can combine mass advertising, online travel portals and digital marketing to inform and persuade customers nationally and internationally.

Q.10. "Every time I travelled, people asked me to bring them chips, khakra and pickles from all over the country," says Anoushka. Finally, she and her colleague, Sumemet, decided to make out of it. They launched a Facebook page, asked people what they wanted, and came up with a list of about 100 places and tried to work with two dozen vendors to begin with. They were servicing people from Jaipur who wanted spices from Kerala, people from Panipat who wanted halwa from Jammu and people from Delhi who ordered fresh tea leaves from Darjeeling. Through their business, they wished to bridge the gap between sellers nd buyers. The business is now worth millions.

Explain any two important activities that Anoushka and Sumeet will have to be involved in for making the goods available to the customers at the right place, in the right quantity and at the right time. (4 Marks)
Ans. Activities / Components of Physical Distribution: (any two)

1. Order Processing: Efficiently receive, record and fulfil customer orders - including order entry, confirmation, billing and coordination with vendors to ensure accurate packing and timely dispatch.
2. Transportation: Select suitable transport modes and reliable carriers to deliver goods on time while controlling freight costs and protecting product quality (especially for perishable or fragile items).
3. Warehousing: Keep stock at central or regional warehouses to ensure availability and enable quick fulfilment; organise safe handling and proper storage conditions to reduce damage.
4. Inventory Control: Forecast demand, monitor stock levels and schedule replenishment so items are available at the right quantity without excessive holding costs.

Q.11. 'Beauty Products Ltd's is a natural and ethical beauty brand famous for offering organic beauty products for men and women. The company uses plant-based materials for its products and is the No. 1 beauty brand in the country. It does not identify the marketing management philosophy being followed by 'Beauty Products Ltd.' (1 Mark)

Ans. Social marketing concept - The firm balances customer needs with social and environmental welfare by using plant-based, ethical ingredients and focusing on long-term societal and ecological benefits alongside profit.

Q.12. 'Haryaram' is a famous chain selling a large variety of products in the Indian market. Their products include chips, biscuits, sweets and squashes. It charges a comparatively higher price than its competitors as it sells quality products. Besides, it offers regular discounts to its customers and easy credit terms to its retailers. It has five of its own retail shops. It also sells its products through various grocery stores so that the products are made available to customers at the right place, in the right quantity and at the right time. It regularly uses different communication tools to increase its sales.

The above para describes the combination of variables used by Hayaram to prepare its market offering. Identify and explain the variables. (6 Marks)

Ans. The combination of variables used by Hayaram to prepare its market offering is:

1. Product: The tangible goods offered - chips, biscuits, sweets and squashes - are tailored to satisfy consumer tastes and quality expectations.
2. Price: The pricing policy includes charging a premium for perceived quality while using periodic discounts and trade credit to attract customers and support retailers.
3. Place / Physical Distribution: Availability through company-owned retail shops plus distribution via grocery stores ensures products are available to customers at convenient locations and in required quantities.
4. Promotion: Regular use of communication tools - advertising, sales promotion and publicity - to inform consumers, create demand and increase sales.

Q.13. 'Maruti Vega Ltd.' entered the market with coloured television and has now introduced products like audio systems, air-conditioners, washing machines, etc. The company is not only offering the products but also handling complaints and offering after-sales services. Identify the element of the marketing mix discussed here. (1 Mark)

Ans. Product / Product mix - The variety of products (televisions, audio systems, air-conditioners, washing machines) together with after-sales services and complaint handling form the firm's product mix, comprising product range and product-service offerings.

Q.14. Radhika was a student of Business Studies in Class XII. Her father was a farmer who grew different varieties of rice and was well-versed about various aspects of rice cultivation. He was also selected by the government for a pilot project on rice cultivation. As a project work in Business Studies, she decided to study the feasibility of marketing good quality rice at a reasonable price. Her father suggested she use the internet to gather customers' views and opinions. She found that there was a huge demand for packaged organic rice. She knew that there were no pre-determined specifications in the case of rice, because of which it would be difficult to achieve uniformity in the output. To differentiate the product from its competitors, she gave it the name of Malabari Organic Rice' and classified it into three different varieties, namely - Popular, Classic and Supreme, based on the quality. She felt that these names would help her in product differentiation.
Explain the three functions of marketing, with reference to the above paragraph. (6 Marks)

Ans. Functions of marketing, with reference to the above paragraph are:

1. Gathering and analysing market information: Radhika used the internet to collect consumer views and discovered demand for packaged organic rice. This market research identifies customer needs and guides product decisions.
2. Standardisation and Grading: Since rice lacks uniform specifications, dividing produce into grades (Popular, Classic, Supreme) helps set quality standards, guide pricing and assist customers in choosing according to preference and budget.
3. Branding: Naming the product Malabari Organic Rice creates an identity, differentiates it from competitors and helps consumers recognise and trust the product's origin and quality.

Q.15. A Company was marketing water purifiers, which were very popular due to their quality and after-sales services provided to the customers. The company was a leading company in the market and was earning huge profits. Because of huge profits, the company ignored the after-sales services. As a result, its relations with customers were spoiled, and the image of the company was damaged in the public. The top management became concerned when the profits for the current quarter fell steeply. On analysis, it was revealed that ignoring the after-sales services was the reason. Therefore, the company took all possible measures to protect and promote its favourable image in the eyes of the public. As a result, the goodwill of the company improved in society.

1. Name and state the communication tool used by the marketer in the above case to improve its image.
2. Also, explain the role of the tool as identified in part (a)

Ans.

1. Public Relations - used to manage and improve the company's image by communicating corrective actions, engaging with media and rebuilding consumer trust.
2. Role of Public Relations:
   • Create a positive corporate image: PR uses press releases, media interactions and events to highlight remedial measures, reinforce improved service standards and rebuild stakeholder confidence.
   • Support relaunch and reputation repair: Public relations publicise quality improvements, customer compensation schemes and enhanced service processes so customers are reassured and more willing to buy again.
   • Maintain ongoing stakeholder relations: PR maintains communication with regulators, consumer groups and retailers to prevent misinformation and demonstrate transparency.

Q.16. Crackers Ltd., a firecracker manufacturing company, launched some new products on the eve of Diwali, which attracted many buyers. To meet the increased demand, the company employed children from nearby villages. Although the product was in great demand, appropriate safety warnings for use were not mentioned on the packets, which led to many accidents.

1. Identify and explain the important product-related decision that was not taken into consideration by the company.
2. Also, identify any two values which were violated by the company.

Ans.

1. Labelling: The company omitted proper labelling that should include safety instructions, usage warnings, manufacturer details and age restrictions. Correct labelling is essential for user safety and legal compliance; its absence contributed to unsafe use and accidents.
2. Values violated:
   • Compliance with law and ethics: Employing children breaches child labour laws and basic ethical standards.
   • Concern for human life and safety: Failure to provide safety warnings shows disregard for consumers' safety and the company's duty of care.

Q.17. ABC Crackers Ltd., a firecracker manufacturing company, launched some new products on the eve of Diwali in the market, which attracted many buyers. To meet the increasing demand, the company employed people from nearby villages where there was a lot of unemployment. Because of the good behaviour of the management with the employees, more and more people wanted to join the company. As the products were in great demand in the market, a competitor imitated the products. The products of the competitor were not accepted by the consumers, as it was a status symbol to buy the products of ABC Crackers Ltd. because of their quality.

1. Identify and explain the product-related decision because of which consumers prefer the products of ABC Crackers Ltd.
2. Also, identify any two values which ACB Crackers Ltd. wanted to communicate to society.

Ans.

1. Branding: ABC's strong brand name, reputation for consistent quality and perceived status value differentiate its products. Branding builds recognition and consumer preference, making imitations less acceptable.
2. Values communicated:
   • Employment generation: Hiring local villagers demonstrates social commitment and support for the local economy.
   • Respectful treatment of employees: Good management practices and humane treatment communicate fairness and social responsibility.

Q.18. As a project work in Business Studies, the Commerce students of Himachal Public School, Himachal Pradesh, thought of preparing apple jam from the apples grown in their school premises and selling it in the school annual fete. They approached the Principal, who not only appreciated the students but also gave her consent for the same. The school decided to donate 50% of the revenue generated from the sale to a nearby orphanage. After the school fete, the school also decided to extend this project by providing employment to the visually challenged and disadvantaged sections of society on a regular basis.

1. Explain any two product-related decisions which the students had to take.
2. Suggest any two functions that the 'label' of the jam-bottle must perform.
3. Identify two values communicated to society by this project of Himachal Public School, Himachal Pradesh.

Ans.

1. Product-related decisions: Branding - choose a name and identity for the jam to create recall; and Packaging - select bottle type, size, sealing and label design that preserve quality, ensure safety and appeal to buyers.
2. Label functions:

• Describe the product and specify its contents: The label must list ingredients, net quantity, manufacturer (school) details, manufacture/expiry dates and any allergen information.
• Help in identification of the product or brand: Display the brand name, logo and unique selling points to distinguish the jam and help consumers choose with confidence.

Values communicated:

• Generating employment / Inclusion: Providing jobs to visually challenged and disadvantaged groups shows social inclusion and empowerment.
• Social responsibility / Charity: Donating part of the revenue to an orphanage demonstrates concern for community welfare.

Q.19. Ajay was appointed as the marketing head of Alfa Enterprise, a manufacturer of toothpastes and toothbrushes. His target sales were 2000 units a month. Apart from thinking about various channels of distribution to achieve the target, he himself started visiting schools in backward areas. He found that even after taking various steps and counselling, some school children had not started brushing their teeth. He investigated and found that they could not afford to buy a toothbrush and toothpaste. So with due permission, he started donating 200 toothbrushes and toothpastes every month to the school.

1. Identify the channel of distribution Ajay would adopt for the distribution of toothpaste and toothbrushes, and justify it by giving one reason.
2. State any two values which Ajay wants to communicate to society.

Ans.

1. Channel: Indirect channel - Manufacturer → Wholesaler → Retailer → Consumer. Justification: Toothpaste and toothbrushes are mass consumer goods requiring wide retail availability; using wholesalers and retailers ensures the products reach many outlets and are convenient for consumers to buy.
2. Values communicated:

• Good health and hygiene
• Social welfare / Compassion

Q.20. Amar is engaged in the manufacturing of refrigerators. He surveyed the market and found that customers need a refrigerator with a separate provision for a water cooler. He decided and launch the same refrigerator in the market. Identify and explain the marketing philosophy involved.

Ans. Amar is following the marketing concept. This philosophy emphasises understanding customer needs first and designing products to satisfy them. The firm aims to achieve profits by meeting customer requirements (a refrigerator with a water cooler) rather than producing goods first and then seeking buyers.

Q.21. Mansi, a shoe manufacturer for school students, decided to maximise profits by producing and distributing shoes on a large scale and thus reducing the average cost of production.

1. Identify the marketing management philosophy adopted by Mansi.
2. Explain this philosophy on the basis of the following:

• Main Focus
• Means and Ends

Ans.

1. Production philosophy
2. Main focus: Achieve high production efficiency and wide availability to reduce per-unit cost.
   Means: Large-scale production, standardisation and efficient distribution.
   Ends: Higher profits through reduced average costs and increased sales volume.

Q.22. Unilever has found a new way to make ice creams by using an ingredient called 'ice structuring protein', which is widely found in nature, especially in fish, which allows them to survive in freezing arctic waters. Combining ISP with stabiliser technology allows for making ice creams that don't melt so easily, thereby making it more convenient for small children and consumers in hot countries.

In the context of the above case:

1. Identify the component of the marketing mix being taken into consideration by the company.
2. Explain briefly the function of marketing highlighted here.
3. List any two values that the company wants to communicate to society.

Ans.

1. Product
2. Product design and development: Marketers innovate and improve products to meet customer needs. Combining ISP with stabilisers enhances the ice cream's utility by reducing melting, making it more convenient and less messy for children and consumers in hot climates. Such product development adds customer value and competitive advantage.
3. Values communicated:

• Concern for consumers' convenience and safety
• Commitment to research and innovation - investing in technology to improve product performance.

Q.23. Ranger India Limited is an automobile manufacturer in India. It makes 1.5 million family cars every year. That's one car every 12 seconds. It has a sales network of company-approved retailers that spreads across 600 cities.

In the context of the above case:

1. Identify the type of channel of distribution adopted by the company.
2. State the market-related factors that are likely to affect the decision of a marketer about the choice of channel of distribution.

Ans.

1. Indirect channel / One-level channel: Manufacturer → Retailer → Consumer via company-approved retailers.

2. Market-related factors affecting channel choice:

1. Size of market: A large market requires extensive intermediary networks for effective reach.
2. Geographical concentration of potential buyers: Densely populated urban areas may require fewer or shorter channels; widely dispersed rural buyers need more elaborate distribution and local intermediaries.
3. Quantity purchased: Bulk or institutional buyers may prefer direct channels, while retail consumers depend on wholesalers and retailers for convenience.

Q.24. As a global leader in the consumer electronics and entertainment industries, Sony has set forth the 'Road to Zero environmental plan', to achieve a zero environmental effect by the year 2-050 by producing world-class products in a manner that both protects and promotes a healthy and sustainable planet.

In the context of the above case:

1. Identify the marketing philosophy being implemented by the company.
2. Outline the main focus and end of the relevant marketing philosophy.
3. State any two values that the company wants to communicate to society.

Ans.

1. Social marketing concept
2. Main focus: Balancing customer needs with society's long-term welfare.
   Ends: Achieve business objectives and profits through customer satisfaction while ensuring social and environmental welfare and sustainability.
3. Values:
   • Environmental concern
   • Commitment to sustainability and societal welfare

Q.25. As the number of people making online purchases has increased manifold, there is a growing concern about the disposal and management of packaging waste. Every item bought is delivered with excess packaging, and sometimes even non-biodegradable materials are used.

In the context of the above case:

1. Name the other two levels of packaging that the marketers may be using besides the immediate package.
2. Describe briefly any two points highlighting the functions of packaging.
3. State any two factors that should be kept in mind by the marketers while designing the packaging of their products.

Ans.

1. Secondary packaging and transportation (tertiary) packaging
2. Functions of packaging:

• Product identification: Packaging and labels help consumers and retailers recognise the brand quickly and convey crucial information such as brand name and usage.
• Product protection: Packaging safeguards contents from physical damage, contamination and spoilage during storage, handling and transit.

Factors to consider while designing packaging:

• Use of biodegradable / environmentally friendly materials to reduce packaging waste and environmental harm.
• Packaging usability and convenience - ease of opening, re-sealing, storage and safe disposal for consumers.

Q.26. Rastro Inc. is a multinational corporation that creates consumer electronics, personal computers, servers and computer software. The company also has a chain of retail stores known as Restro Stores. Despite high competition, Restro has succeeded in creating demand for its products, giving the company power over prices through product differentiation, innovation, advertising and ensuring brand loyalty.

In the context of the above case:

1. What is product differentiation?
2. Name any one function of marketing that facilitates product differentiation.
3. Identify the component of the promotion mix being used by the company by quoting lines from the paragraph.
4. Describe briefly the pricing objective pursued by the company.

Ans.

1. Product differentiation is the strategy of making a product distinct from competitors' offerings by developing unique features, design, quality or brand image that add perceived value for customers.
2. Branding - a marketing function that creates identity and reputation to differentiate products from competitors.
3. Advertising - quoted line: "giving the company power over prices through product differentiation, innovation, advertising and ensuring brand loyalty."
4. Pricing objective: The company pursues profit maximisation through quality leadership - positioning products as superior, creating brand loyalty and charging premium prices because customers perceive higher value.

Q.27. Reema, Vibha and Ratna are three women entrepreneurs who are engaged in dealing with handicraft goods under the brand name 'Gujkriti' through a chain of retail outlets at five different places in Delhi. They outsource all their products from tribal and rural women in the state of Rajasthan. Reema is of the opinion that in order to increase the sales of their products, they should advertise them on television. But Ratna is arguing that advertisement expenses will add to the cost of operation. Whereas Vibha is insisting that they should set up an online portal to market their products across the globe.

In the context of the above case:

1. Identify the tool of promotion being taken into consideration by Reema by quoting lines from the paragraph.
2. How is the channel of distribution being suggested by Vibha different from the channel of distribution being used by them presently?
3. Do you think that Ratna is justified in her argument that advertisement expenses will add to the cost of operations?

Ans.

1. Tool of promotion (Reema): "they should advertise it on television." - Advertising.
2. Channel difference (Vibha): Vibha suggests an online direct channel (manufacturer → consumer via an e-commerce portal), a zero-level channel. Presently, they use an indirect channel (manufacturer → retailer → consumer) through their own retail outlets and other retailers.
3. About Ratna's objection: Partly justified - advertising increases short-term costs. However, effective advertising can expand demand, increase sales volume and build brand recognition; over time, increased sales may offset advertising expenses and lower average cost per unit.

Q.28. Arvind is planning to start a company manufacturing room fresheners. He intends to use natural fruit extracts to add fragrance to them. He estimates an investment of Rs. 20 crores to set up the factory. As it is difficult for him to raise the entire capital amount alone, he gives a partnership offer to his school friend, Sanjay, who is an angel investor. Sanjay, after being convinced about the feasibility of the project, accepts his offer. Sanjay tells Arvind that they should also focus on other important decisions related to the product 'room fresheners' besides deciding about its features, variety and quality. Branding is one of the important such decisions.

In the context of above case:

1. Name any other two important decisions related to a product.
2. Why is branding considered an important function by marketers? Give any one reason in support of your answer.
3. State any four features of a good brand name.

Ans.

1. Other product decisions: Labelling and Packaging - labelling to state ingredients and safety information; packaging for protection, convenience and shelf appeal.
2. Why branding is important: Branding facilitates product differentiation - it helps customers recognise and prefer the firm's product over substitutes, builds recall and loyalty, and enables the firm to command better prices.
3. Four features of a good brand name:

• Short and easy to pronounce, spell and remember.
• Suggests product benefits or qualities to set the right expectation.
• Distinctive and unique so it is not easily confused with competitors.
• Capable of legal protection and registration (trademarkable).

Q.29. Suraj is a small entrepreneur involved in the manufacturing of hair wax. He finds that the cost of production of 100 gm of hair wax is Rs. 250. He has decided to keep a margin of 15% as profit; moreover, he has assessed that there is free competition in this product segment.

In the context of above case:

1. Identify the function of marketing being performed by Suraj.
2. State briefly the two factors that he is taking into consideration while performing the function as identified in part (a)

Ans.

1. Pricing - Suraj is deciding the selling price by adding a profit margin to the cost of production.
2. Factors considered:

• Cost of product: The production cost (Rs. 250 per 100 g) is the base and determines the minimum selling price to ensure profit.
• Degree of competition: In a market with free competition, competitor prices and market forces limit how high he can set the price; he must remain competitive while securing the desired margin.

Q.30. After doing a diploma in entrepreneurship, Farihad started his own confectionery business. He started doing a lot of hard work and used the recipes taught by his grandmother in various preparations. He also learnt many recipes from online sites and television programmes. He decided to keep the price of the products low initially and also informed his customers about the goodness of the items sold by them. However, he didn't mention on the package of each item whether it contained eggs or not. As a result, vegetarian people became hesitant in buying things from his shop as they had to verbally inquire from him about the inclusion of eggs in the preparation of various items.

In the context of above case:

1. Name the important aspect related to the marketing of products which has been ignored by Farihad.
2. Explain briefly any free functions performed by the aspect as identified in part (a).
3. Mention the right of the consumer being violated by Farihad.

Ans.

1. Labelling - He failed to provide mandatory product information such as whether an item contains eggs, ingredient list and other essential details.
2. Functions of labelling:

• Describe the product and specify its contents: Labels list ingredients, net quantity and manufacture/expiry dates which are essential for dietary, health and safety choices.
• Help in identification of the product or brand: Labels display brand name and distinguishing features that help consumers select the correct product consistently.
• Enable grading and compliance: Labels may show quality grades and regulatory marks that inform consumers about standards and compliance.

Right violated: Right to information - consumers are entitled to accurate and complete information about product contents and use.

Q.31. 'Shudh Hava Ltd.' is engaged in the manufacturing of air conditioners and desert coolers. The company offers a wide range of products to meet the requirements of people from varied income groups. Recently, the company has developed a new product, an air purifier that improves the quality of air by filtering out all allergens and microbes. The company introduced the product in two variants, namely 'Nano Tech' and 'Nano Tech Premium'. In order to persuade people to buy the product, it is offering easy payment options in equal monthly instalments for different time periods. Moreover, every buyer will be offered a 'scratch a card' option to win instant gifts like decorative items, T-shirts, etc. The company is also planning to organise competitive events based on skill and luck in various malls in different cities.

In the context of above case:

1. Name and explain the 'type of promotion strategy' adopted by the company to boost the sales of air purifiers.
2. Also, identify the various techniques of this promotional strategy being used by the company by quoting lines from the paragraph.
3. "The company offers a wide range of products to meet the requirements of people from varied income groups." Name the relevant consumer right being promoted by the company.

Ans.

1. Type of promotion strategy: Sales Promotion - short-term incentives offered to stimulate immediate sales, encourage trial and speed up purchase decisions.

Sales promotion techniques provide immediate value or excitement to customers and help clear inventory, boost trial or improve short-term sales.

2. Techniques used (quoted):

• Easy finance / EMI: "It is offering easy payment options in equal monthly instalments for different time periods."
• Instant draws and assured gifts: "every buyer will be offered a 'scratch a card' option to win instant gifts like decorative items, T-shirts, etc."
• Contests / Events: "The company is also planning to organise competitive events based on skill and luck in various malls in different cities."

3. The consumer right promoted: Right to Choose - offering variants and a wide product range ensures consumers from different income groups have options suitable to their needs and budgets.

Q.32. Nischay, after completing his master's in computer engineering, decided to start his own business. He visited his uncle, Mr Jaiprakash, who has been running a successful business in web design. He shared with Nischay that the main reason for his success in the business lies in his approach of building websites according to the specifications of the clients, but also providing continuous online assistance to them and handling their grievances effectively and doing all this at a profit. He provides these services at competitive prices. Anybody interested in getting the web solutions can contact him through his website. Moreover, whenever the market is sluggish, he tries to create demand by offering short-term incentives to the buyers.

In the context of above case:

1. Define the term 'Marketing Management'.
2. Briefly explain the various elements of the marketing mix being pursued by Mr Jaiprakash by quoting lines from the para.

Ans.

1. Definition: "Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value." - Philip Kotler.
2. Elements of marketing mix used by Mr Jaiprakash (with quotes):

• Product: "his business is not only restricted to designing websites according to the specifications of the clients but also providing continuous online assistance to them and handling their grievances effectively." - Customised services and after-sales support form the product offering.
• Price: "doing all this at a profit. He provides these services at a competitive price." - Competitive pricing to attract clients while remaining profitable.
• Place: "Anybody interested in getting the web solutions can contact him through his website." - Distribution and accessibility via an online presence.
• Promotion: "Moreover, whenever the market is sluggish, he tries to create demand by offering short-term incentives to the buyers." - Use of sales promotion to stimulate demand.

Q.33. In today's world, through social media, news spreads in a flash. Moreover, if it is bad news, it acquires a speed that is virtually impossible to stop. Hence, all corporations are more susceptible to a tarnished image today than in any other day and age. The loss of goodwill may lead to decreased revenue, loss of clients or suppliers and a fall in market share. Over the year, therefore, most of the companies have set up a separate department to manage the public opinions about them. The department works in close coordination with the various interest groups like consumers, government, suppliers, etc. and strives to handle effectively if any controversies arise.

In the context of above case:

1. Identify the element of promotion mix being referred to in the above lines.
2. Briefly explain any three points, highlighting the role of this element of the promotion mix as identified in part (a)

Ans.

1. Public Relations
2. Role of Public Relations (three points):

• Create and maintain a positive image: PR builds trust among consumers, suppliers and regulators through proactive communication, media relations and reputation management.
• Support product launches and marketing campaigns: PR arranges credible coverage, endorsements and demonstrations that help new products gain faster acceptance and add legitimacy to promotional efforts.
• Crisis management: In case of controversies, PR issues clarifications, co-ordinates stakeholder communication and implements corrective measures to restore public confidence and limit reputational damage.

Q.34. Traditional trade or kriana stores constitute 90% of the FMCG (fast-moving consumer goods) business in India. HUL is the market leader in FMCG with over 60 lakh outlets. According to industry estimates, Patanjali products are currently available in two lakh traditional retail outlets. 'Availability of the product' is the single largest driver of FMCG sales. Shopper research suggests that 30% - 40% consumers shift preference if their favourite brand is not available at the store.

In the context of above case:

1. Identify the component of the marketing mix being discussed in the above lines.
2. State the two main decisions related to the concept identified in part (a)
3. Name the type of channel of distribution adopted by HUL.

Ans.

1. Place / Physical distribution
2. Two main decisions in physical distribution:

• Physical movement of goods: Decisions about logistics, transport and warehousing to ensure timely delivery and continuous availability at retail outlets.
• Choice of channels of distribution: Selecting intermediaries (distributors, wholesalers and retailers) and designing the distribution network to achieve wide market coverage.

3. HUL uses an indirect channel - a multi-level distribution system (Manufacturer → Wholesaler → Retailer → Consumer) to reach a very large number of traditional outlets.

Q.35. Arun and Rukun are good friends. After doing a fashion designing course from a reputed institute, they have set up a garment factory in the rural area of Faridabad to manufacture trendy casual wear like jeans, T-shirts, shirts etc. under the brand name 'Swatantra'. They have employed people from the nearby villages in the factory. Moreover, they wish to sell the products through local retailers in the villages and also through "Flipkart'.

In the context of above case:

1. Identify the elements of the marketing mix being taken into consideration by Arun.
2. Name the two methods of marketing adopted by them.
3. State any two values that are being fulfilled by them.

Ans.

1. Elements of marketing mix considered: Product - design and branding (Swatantra), and Place - distribution through local retailers and online marketplace.
2. Methods of marketing: Direct marketing (selling online via Flipkart / own portal) and Indirect marketing (through local retailers).
3. Values fulfilled:

• Generating employment - hiring local villagers supports livelihoods and the rural economy.
• Raising the standard of living - providing income and skill development improves community welfare.