Case Studies - Marketing Management | Business Studies (BST) Class 12 - Commerce PDF Download

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 sale services, availability of spare parts etc. Identify the element of marketing mix referred here.                            (1 mark)

Ans. Product 

Q. 2. Radha found a worm crawling out of 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 taken measures to impose restrictions on the sale of the firm’s products of the particular batch and urge 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 getting the firm out of the above crisis.
2. Also explain the role of above identified concept by stating any two points. (4 Marks)

Ans. 

1. Public Relations
2. Role of Public Relations:

1. Product Publicity:
2. Counseling:

 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 the sales.  Also, name the factors affecting their choice.                         (4 Marks)

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

1. Advertising
2. Sales promotion
3. Personal selling
4. Publicity

Factors affecting choice of promotional tool:

1. Nature of market
2. Nature of product
3. Promotions budget
4. Objectives of promotion

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 iof promoting it? 

   (1 Mark)

Ans. Public Relations (PR) Department

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

1. Mansi, a shoe manufacturer for school students, decided to maximize her profit by producing and distributing at large scale and thereby reducing the average cost of production.
2. Nisha, a school bag manufacturer decided to improve the product for profit maximization and thus added a water bottle holder to the existing design.
3. Jasdeep, a dealer in school uniforms, decided to maximize his profit by using different aggressive promotional efforts.
4. Amar is engaged in 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 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% of extra shaving cream in a pack of 500 gms.
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
3. Product-combination
4. Quantity-gift
5. Instant draws and assigned gift
6. Usable Benefit / Lucky Draw

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?
4. To promote or protect a company’s image or its individual products.
5. An existing product meant for mass usage by literate people.
6. To introduce a new product to a particular class of people through door-to-door visits.
7. To attract attention of the people by using incentives.                       (6 marks)

Ans. 

1. The companies use all tools at the same time because of the nature of market, nature of product, promotion budget and objectives of promotion being different at different times.
2. The most commonly used non-personal tool of promotion which is paid for by the marketer is advertising. It is a paid and non-personal form having an identified sponsor to promote an idea.
3. The tools of promotion used are:

1. Public Relations
2. Advertisements
3. Personal selling
4. Sales Promotion

Q. 8. Good Living Ltd. manufactures mosquito repellent tables.  These tablets are packed in strips of 12 tablets each.  Each of these strips are 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 packaging of tablets in a corrugated box is necessary for the purpose of storage, identification and transportation.

Q. 9. Shreemaya Hotel in Indore was facing  problem of low demand for its rooms due to 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 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

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 face book bags, asked people what they wanted, and they came up with a list of about 100 places and tried up with two dozen vendors to begin with. They were servicing people from Jaipur who wanted spices from Kerala, people form Panipat who wanted halwa from Jammu and people from Delhi who ordered for fresh tea leaves form 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:
2. Transportation;
3. Warehousing:
4. Inventory Control:

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 not Identify the marketing management philosophy being following by ‘Beauty Products Ltd.’                         (1 Mark)

Ans. Social marketing concept.

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 to 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 are:

1. Product     :      ‘their products include chips, biscuits, sweets squashes.’
2. Price         :      ‘It offers regular discounts to its customers and easy credit terms to its retailers’.
3. Place / Physical Distribution     :     five of its own retail  shops.’      or            ‘It also sells its products through various grocery stores …right time.’
4. Promotion   :    ‘It regularly uses different communication tools to increase its sales.’

Q. 13. ‘Maruti Vega Ltd.’ entered into the market with coloured television and have 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 marketing-mix discussed here.                    (1 Mark)

Ans. Product/ Product mix.

Q. 14. Radhika was a student of Business Studies of Call 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 her to use 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 specification in case of rice because of which it would be difficult to achieve uniformity in the output.  To differentiate the product form 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 function of marketing, with reference to the above paragraph.     (6 Marks)

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

1. Gathering and analyzing market information:
2. Standardization and Grading:
3. Branding:

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 earning huge profits.  Because of huge profits, the company ignored the after sales services.  As a result, its relations with customers got 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 its reasons.  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 the society.

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

Ans. 

1. Public Relations is being used as a promotional tool by the marketer.  It refers to the practice of managing communication between an organization and its publics in order to create the maintain a positive image about itself and its products.
2. The role of public relations as a promotional tool is described below:

1. Public relations helps to create a positive image about the company in the eyes of various interest holders like consumers, government, suppliers etc.
2. It helps in launching new products as they may be accepted easily because of good reputation of business.
3. It helps the business to reinstate itself in the wake of controversies or prejudices etc.

Q.16. Crackers Ltd., a fire-cracker manufacturing company launched some new products on 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 warning for use were not mentioned on the packets that 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. The company has ignored ‘Labeling’.  It is an important product-related decision.

Labeling refers to the process of designing a label for a product containing product description and the relevant information which is likely to affect a prospective buyers decision in making a purchase.It may vary from a simple tag to a complex graphic.

1. The two values being violated by the company are:
2. Abiding by law as child labour has been employed
3. Concern for human life as appropriate warnings were not placed on the label.

Q. 17. ABC Crackers Ltd., a fire-cracker 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 behavior 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 preferred the products of ABC Crackers Ltd.
2. Also, identify any two values which ACB Crackers Ltd. wanted to communicate to the society.

Ans. 

1. Branding is the product-related decision because of which consumers preferred the products of ABC Crackers Ltd.

Branding is the process of assigning a name (brand name), sign or symbol (brand mark) or a combination of all to a product.Branding facilitates product differentiation, assists in advertising and display programmes, facilitates differential pricing, promotes consumers loyalty etc.

1. The two values that ABC Crackers Ltd. wants to communicate to the society are:
2. Generating employment opportunities
3. Providing good working environment.

Q. 18. As a project work in Business Studies, the Commerce students of Himachal Public School, Himachal Pradesh though of preparing apple jam from the apples grown in their school premises and sell 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 visually challenged and disadvantaged sections of society or 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. The two product-related decisions which the students had to take are branding and packaging.
2. The two important functions that the label of the jam – bottle must perform are:

• Describe the product and specify its contents:
• Helps in identification of the product or brand:

      3. The two values communicated to the society by the project of Himachal Public School are:

• Generating employment opportunities
• Humanity

Q. 19. Ajay was appointed as the marketing head of Alfa Enterprise, a manufacturer of toothpastes and toothbrushes.  His target sale was 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 counseling, some school children had not started brushing their teeth.  He investigated and found that they could not start brushing their teeth.  He investigated and found that they could not afford to buy 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 ants to communicate to society.

Ans. 

1. Ajay would adopt indirect channels of distribution for marketing of toothpaste and tooth brushes because it is a consumer product.  It can be easily marked through longer channels, for example (Manufacturer – Wholesaler – Retailer – Consumer).
2. The two values that Ajay wants to communicate to the society are:
3. Good health
4. Social welfare

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 of water cooler in it.  He decided and launched the same refrigerator in the market.  Identify and explain the marketing philosophy involved.

Ans. Amar is following the philosophy of marketing concept.  The prime focus of marketing concept is to ‘find wants and fill them’.  Therefore, the marketer first assesses the needs and preferences of its target market and manufacturers products accordingly in order to satisfy their needs and wants optimally.  It aims at profit maximization through customer satisfaction.

Q. 21. Mansi, a shoe manufacturer for school students, decided to maximize 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. Mansi has adopted the production philosophy.
2. Means: The production philosophy can be brought into effect by making products affordable and widely available.

        Ends: The production philosophy aims at maximizing profits through high volume of production.

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 fishes which allows them to survive in freezing arctic waters.  Combining ISP with stabilizer technology allows to make ice creams that don’t melt so easily thereby making it more convenient for small children and consumer in hot countries.

In the context of above case:

1. Identify the component of 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 the society.

Ans. 

1. The component of marketing mix being taken into consideration by the company is ‘Product’.
2. Product designing and development: Every marketer strives to achieve his marketing objectives by creating offerings to satisfy a need or a want.  Therefore one of the core functions of marketing is to develop the product in the most effective and efficient way.  Every marketer endeavours to add value to his product by introducing constant innovations in the product to enhance both its utility and attractiveness in the eyes of the potential buyers and gain a competitive edge.
3. The two values that the company wants to communicate to the society are:

• Responsibility towards consumers
• Technological advancement.

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 above case:

1. Identify the type of the 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 f distribution adopted by the company.

        2. The market related factors that are likely to affect the decision of a marketer about the choice of channel of distribution are explained below:

1. Size of market:
2. Geographical concentration of potential buyers:
3. Quantity purchased:

Q. 24. As a global leader in the consumer electronics and entertainment industries, Sony has set forth ‘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 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 the society.

Ans.

1. Social marketing concept is being pursued by the company.
2. The main focus of this philosophy is on both the needs of the potential buyers as well as concern for the society at large.  The ends include profit maximization through customer satisfaction and social welfare.
3. The two values that the company wants to communicate to the society are:
4. Concern for the environment
5. Welfare of the society

Q. 25. As the number of people making online purchases has increase manifolds, 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 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 its products.

Ans.

1. Secondary packaging and Transportation packaging.
2. The functions of packaging in the marketing of goods and services is explained below:
3. Product Identification:
4. Product Protection:
5. The marketers should use biodegradable packaging material and packaging should enhance the usability of the products.

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 ensured brand loyalty.

In the context of above case:

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

Ans.

1. Product differentiation is a strategy used by the marketers to gain an edge over its competitors by creating a distinguished perception of the product in the minds of the potential buyers in terms of its utilities.
2. Branding is a function of marketing that facilitates product differentiation.
3. Advertising is the component of promotion mix being used by the company “Giving the company power over prices through product differentiation, innovative advertising and ensured brand loyalty.”
4. Attaining product quality leadership: Besides aiming at profit maximization as its pricing objective Rastro Inc. seeks to establish a unique place for its products in the market by offering superior quality products which can be easily distinguished from its competitors.  As a result, it is able to use differential pricing i.e. fixing up relatively higher prices for tits products.

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.  Their 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 sale of their products, they should advertise about it on television.  But, Ratna is arguing that advertisement expenses will add to 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 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 here argument that advertisement expenses will add to cost of operations?

Ans. 

1. The tool of promotion being taken into consideration by Reema is advertising.  (Reema is of the opinion that in order to increase the sale of their products, they should advertise about it on television.)
2. Vibha is insisting that they should set up an online portal to market their products across the globe i.e. adopting direct marketing or zero-level channel (manufacturer – consumer).  Whereas at present they are using indirect channels of distribution i.e. one level channel (manufacturer – retailer – consumer) by operating through a chain of retail outlets at five different places in Delhi.
3. No, Ratna is not fully justified in her argument although advertising as a tool of promotion is often criticized on the ground that it adds to the cost of distribution which is passed on to the consumers in the form of higher prices.  Therefore, it increases the burden on the consumers.  But, this argument is not entirely true because advertisements help to increase demand for the product.  In order to meet the increased demand the production levels have to be raised.  As a result, the business is able to reap advantage of economies of scale and eventually the cost of production per unit comes down and benefits the buyers as the product’s prices are reduced consequently.

Q. 28. Arvind is planning to start a company manufacturing room fresheners.  He intends to use natural fruit extracts for adding 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 decision.

In the context of above case:

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

Ans. 

1. Labeling and Packaging are the two important decisions related to a product.
2. Branding is considered to be a very important decision by the marketers because it facilitates product differentiation.  Through branding the prospective buyers are able to bring about a distinction between a company product and its substitutes available in the market.  This helps the company to obtain a desirable market share.
3. The four features of a good brand name are stated below:
4. The brand name should be short, easy to pronounce, spell, recognize and remember e.g., Ponds.
5. A brand should suggest the product’s benefits and qualities e.g. Sunsilk.
6. A brand name should be distinctive e.g., Lotus.
7. It should be capable of being registered and protected legally.

Q. 29. Suraj is a small entrepreneur involved in the manufacturing of hair wax.  He finds that 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 a 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 is the function of marketing being performed by Suraj.
2. The two factors that he is taking into consideration while performing the pricing function are as follows.
3. Cost of product:
4. Degree of competition:

Q. 30. After doing a diploma in entrepreneurship, Farihad started his own confectionary 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 weather 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 consumer being violated by Farihad.

Ans.

1. The important aspect related to the marketing of products which has been ignored by Farihad is Labeling.
2. The three important functions performed by labeling are:
3. Describes the product and specifies its contents:
4. Helps in identification of  the product or brand:
5. Enables grading of products:
6. The Right to information is being overlooked by the company in the above mentioned case.  According to the right to information, a consumer has the right to get complete information about the product he / she intends to buy including its contents, date of manufacture, date of expiry, price, quantity, directions for use etc.  Also, as per law, it is mandatory for the marketers to provide complete information about the product / service to the buyers.

Q. 31. ‘Shudh Hava Ltd.’ is engaged in 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 on 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 installments for different time periods.  Moreover, every buyer will be offered ‘scratch a card’ option to win instant gifts like decorative items, T-shirts etc.  the company is also planning to organize 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 liens from the paragraph.
3. “The company offers a wide range of products to meet the requirements of people from varied income group.”  Name the relevant consumer right being promoted by the company.

Ans. 

1. The type of promotion strategy adopted by the company to boost the sales of air purifiers is Sales Promotion.

Sales Promotion includes the various types of short term incentives offered by a marketer to increase the sale of a product or service.

1. The various techniques of sales promotion being used by the company are listed below:
2. Full finance @ 0% - “It is offering easy payment options in equal monthly installments for different time periods.”
3. Instant draws and assured gifts – “every buyer will be offered ‘scratch a card’ option to win instant gifts like decorative items, T-shirts etc.”
4. Contests – “The company is also planning to organize competitive events based on skill and luck in the various malls in the different cities.”
5. Right to Choose is the consumer right being promoted by the company

Q. 32. Nischay, after completing his masters in computer engineering decided to start his own business.  He visited his uncle Mr. Jaiprakash who has been running a successful business in web designing.  He shared with Nischay that the main reason for his success in the business lies in his approach of building web sites 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 marketing mix being pursued by Mr. Jaiprakash by quoting liens from the para.

Ans. 

1. 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. The various elements of marketing mix being pursued by MR. Jaiprakash area as follows:
3. Product: “his business is not only restricted to designing web sites according to the specifications of the clients but also providing continuous online assistance to them and handling their grievances’ effectively.”
4. Price: “doing all this at a profit.  He provides these services at competitive price.”
5. Place: “Anybody interested in getting the web solutions can contact him through his website.”
6. Promotion: “Moreover, ,whenever the market is sluggish he tries to create demand by offering short-term incentives to the buyers.”

Q. 33. In today’s world, through social media, news spread in a flash.  Moreover, if it is bad news, it acquires a speed that is virtually impossible to stop.  Hence, all corporate 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 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 liens.
2. Briefly explain any three points highlighting the role of this element of promotion mix as identified in part (a)

Ans.

1. The element of promotion mix being referred to in the above lines is Public Relations.
2. The role of public relations as a promotional tool is described below:
3. Public relations helps to create a positive image about the company in the eyes of various interest holders like consumers, government, suppliers etc.
4. It helps in launching new products as they may be accepted easily because of good reputation of business.
5. It helps the business to reinstate itself in wake of controversies or prejudices etc.

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.  A 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 marketing mix being discussed in the above liens.
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. The component of marketing mix being discussed in the above liens is place / physical distribution.
2. The two main decisions involved in physical distribution are:
   • Physical movement of goods from producers to consumers
   • Choice of channels of distribution
3. Indirect channel of distribution has been adopted by HUL.  It is a two level channel i.e. (Manufacturer – wholesaler – retailer – consumer)

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 itself 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 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. The elements of marketing mix being taken into consideration by Arun are product and place.
2. The two methods of marketing adopted by them are both direct and indirect marketing.
3. Two values that are being fulfilled by the are:
4. Generating employment
5. Raising the standard of living of the people in the village

Q. 36. Yogesh buys a new laptop for his son Mukesh on his birthday from a company owned retail outlet.  After a few months, some parts of the laptop get damaged in a road accident.  Yogesh approaches the dealer to get the damaged parts replaced with the new ones.  But, he is told that the company does not provide any after sale service to the customers.  Yogesh feels very dissatisfied as a consumer and woes that he will never buy this companies product ever again.

In the context of above case:

1. Identify the function of marketing being ignored by the company.
2. As a business advisor, suggest any two services that will be very effective in enhancing brand loyalty for any such product.
3. Name the appropriate redressal agency that he can approach in case he decides to file a case against the dealer.

Ans. 

1. The function of marketing being ignored by the company is customer support services.
2. As a business advisor, I would suggest the introduction of the following services that will be very effective in enhancing brand loyalty for any such product.

1. Setting up a separate department for handling consumer complaints.
2. Providing 365 days × 24 × 7 online assistance to the buyers for any maintenance or technical issues.
3. Yogesh can file a complaint in the District forum.

Q. 37. Mr. Rajiv wants to buy LCD T.V. for his family.  Now he has come to Jagota Electronics, Model Town, after coming to shop he get confused.  Write the name of promotion tool which has brought him to the shop and promotion tool needed now.  Also write the four points of importance of latter tool.

Ans. The just promotion tool which brought Rajiv to the shop is advertisement and the promotion tool required now is personnel selling.

Q. 38. Mr. Rajiv, the sales executive of ABC Ltd. possess good marketing techniques, his techniques involve oral presentation of message, convincing the customer with face to face interaction, etc.

Ans. 

1. Name the element of marketing mix under which the above technique fall.
2. Identify the element used by Rajiv.
3. Give any three merits of that technique:

1. Promotion
2. Personal Selling
3. Merits of Personal Selling

Q. 39. ITC started its business with Jobaico Industry later on its entered in Hotel Industry, Consumer goods industry, stationery, etc. ITC assured quality to customer and kept company’s name as its identity.  This help the customers in product identification and hence ensured quality.  It also built up their confidence and help in increasing their level of satisfaction.

1. Name the element of marketing mix referred in above para.
2. Name the other elements of marketing mix.
3. Name the concept which assure quality and help in identification of product.
4. Identify the value emphasized by ITC.

Ans. 

1. Product Mix.
2. Other elements: Price mix, Place mix, Promotion mix.
3. Concept which help in identifying the product and assure quality is branding.
4. (a) Value of supplying quality product.

(b) Value of building confidence among customers.

Q. 40. Ajay was appointed as a marketing head of Alfa Enterprise manufactures of toothpaste and tooth brushes.  His target sale was zero 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 counseling some school children had not started brushing their teeth.  He investigated and found that they could not afford to buy toothbrush and toothpaste.  So with due permission the started donating 200 toothbrush and toothpaste to schools.

1. Identify the channels of distribution Ajay would adapt for distribution of toothbrush and toothpaste, justify by giving reasons.
2. State any two values which Ajay want to communicate to society.

Ans.

1. The channel of distribution Ajay would adapt is indirect because he is dealing with consumer goods.
2. Values which Ajay wants to communicate to society are:

1. Charity
2. Concern for underprivileged
3. Hygience
4. Sensitivity towards health.

Q. 41. Nisha, a school bag manufacturer decided to improve the product for profit maximization and thus added a water bottle holder to the existing design.

1. Identify the marketing management philosophy adopted by Nisha and
2. Explain this philosophy on the basis of:
3. Main focus and
4. Means and ends.

Ans. Product concept.

Q. 42. Ayesha is manufacturing lunch boxes for school-going children.  To maximize profit she decided to improve the quality and added a warmer for the lunch boxes.  Due to this improvement in the product, the sale is increasing day by day.  Identify and explain the marketing philosophy involved.

Ans. Product concept.

Q. 43. Mansi, a shoe manufacturer for school students, decided to maximize her profit by producing and distributing at large scale and thereby reducing the average cost of production:

1. Identify the marketing management philosophy adopted by Mansi.
2. Explain this philosophy on the basis iof:
3. Main focus
4. Means and ends.

Ans.    (i) Production concept.

            (ii) Give difference,

Q. 44. Vasvi purchased a bottle of pickle from the local grocery shop.  The information provided on the bottle was not clear.  She fell sick on consuming it.  She filed a case in the District forum under the Consumer Protection Act and got the relief.

1. Identify the important aspect neglected by the marketer in the above case.
2. Explain briefly the functions of the aspect identified in (a) above.

OR

Ashima purchased a bottle of tomato-sauce from the local grocery shop.  The information provided on the bottle was not clear.  She fell sick on consuming it.  She filed a case in the District Forum under the Consumer Protection Act and got the relief.

1. Identify the important aspect neglected by the marketer in the above case.
2. Explain briefly the functions of the aspect identified in (a) above.

Ans. 

1. The marketer had overlooked the Labelling as it was not done appropriately for the product.
2. The functions of labeling are detailed below:

1. Describes the product and specifies its contents:
2. Helps in identification of the product or brand:

Q. 45. Radha found a worm crawling out of 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 consumer activist group to seek help.  The group decided to help Radha and take measures to impose restrictions on the sale of the firm’s products of the particular batch and urge customers to refrain from buying the products of the company.  Zest Ltd. lost its image n 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 getting the firm out of the above crisis.
2. Also explain the role of above identified concept by stating any two points.

Ans. 

1. Public Relations.
2. Role of public relations can be discussed with respect to the functions which the department performs: (any two)

1. Press relations
2. Product publicity
3. Corporate communication
4. Lobbying.
5. Counseling.