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2nd PUC Business Studies Entrepreneurship Development Multiple Choice Questions With Answers
Question 1.
Entrepreneurs undertake
(a) Calculated risks
(b) high risks
(c) Low risks
(d) moderate and calculated risks
Answer:
(b) It is generally believed that entrepreneurs take high risks as there is no assured career 10 that and secondly for a higher return the person takes higher risk.
Question 2.
In Economics, which of the following is not a function of the entrepreneur?
(a) Risk-taking
(b) Provision of capital and organisation of production
(c) Innovation
(d) Day-to-day conduct of business
Answer:
(d) Day-to-day conduct of business is not the function of the entrepreneur.
Question 3.
Which of the following statements does not clearly distinguish between entrepreneurship and management?
(a) Entrepreneurs found the business; managers operate it
(b) Entrepreneurs are the owners of their businesses; managers are employees
(c) Entrepreneurs earn profits; managers earn salaries
(d) Entrepreneurship is once for all activity; management is a continuous activity
Answer:
(d) Entrepreneurship is once for all activity, The concept behind this is not clear. Through this point, it is difficult to understand the difference between entrepreneurship and management.
Question 4.
In the roles and functions of the entrepreneur identified by Kilby, which of the following is not an aspect of ’political administration’?
(a) Dealing with public bureaucracy
(b) Managing human relations within the firm
(c) Introducing new production techniques and products
(d) Managing customer and supplier relations
Answer:
(c) Introducing new production techniques and products is not an aspect of political administration. It is come under the ‘Technology’ identified by Kilby.
Question 5.
Which of the following attitudes is not generally associated with successful entrepreneurship?
(a) Investing in R&D
(b) Live your business day-by-day
(c) Innovate and improvise continually
(d) Produce as per customers’requirements
Answer:
(b) Live your business day-by-day is not the attitude associated with successful entrepreneurship.
2nd PUC Business Studies Entrepreneurship Development Short Answer Questions With Answers
Question 1.
Clarify the meaning of the terms ‘entrepreneur’, ‘entrepreneurship’ and ‘enterprise’.
Answer:
Entrepreneur: The owner of a business is known as Entrepreneur or we can say that the person who set-up a business. That person is the co-ordinator, organiser of resources and gives shape to the business.
Entrepreneurship: It is the dynamic process of interaction between the person and the environment. It means starting up one’s own business, concerned with strategic decisions of resource allocation and involves huge risk to create value and earn profit.
Enterprise: The output of the entrepreneurship process is known as the Enterprise. It is something attempted to be performed. It provides employment opportunities, professional opportunities and business opportunities which helps in building up the economy of a nation.
Question 2.
Why is entrepreneurship regarded as a creative activity?
Answer:
Entrepreneurship is a creative activity. As an entrepreneur converts raw materials into useful goods and services, it involves creation of value, introduction of new products, discovery of new markets and technologies. Successful entrepreneurs keep focusing on innovative ideas and skills to produce efficient and effective results. Thus, an entrepreneur is innovator and this process is creative.
Question 3.
Entrepreneurs undertake ‘moderate risk’. Elaborate this statement.
Answer:
Entrepreneurs undertake ‘moderate risks’. It implies that an entrepreneur assures various supply of the projects, agrees to pay salaries, wages, rent whether the venture success or not. Secondly, the person who opted a career in entrepreneurship takes a bigger risk as there is no assured payoff. It is said that it is a 50 : 50 situation means loss and profit both are unpredictable.
Success depends upon the observations, calculations of risk, skills and confidence. Risk is not centred to one problem. It involves many issues like fluctuation in price, taste and preference fashion, risk of strikes, lock outs etc. It becomes the essential feature of the entrepreneurship which is to be focused more and more.
Question 4.
How does entrepreneurship result in increasing the spectrum and scope of economic activities?
Answer:
Development does not mean only the betterment of existing but it means the overall betterment across the geographical, sectoral and technological scope. Entrepreneurship results in diversification of economic activities by creating employment, business opportunities, stabilising the demand and supply factors as underdeveloped countries caught in the vicious cycle of the demand as well as supply side.
Thus, it helps to overcome from this situation. GOP originates from Industry and services increases. Entrepreneurs through their decisions to divert from the stale sectors and invest in green field sectors, bring a virtual transformation of the economy from underdeveloped to developed status. Thus, we can say entrepreneurship results in increasing the spectrum and scope of economic activities.
Question 5.
Describe briefly the role of achievement motivation in entrepreneurship.
Answer:
Entrepreneurial motivation is important to learn, as different individuals are motivated differ-ently and for the success of an enterprise. The following needs are to be focused to motivate an entrepreneur
1. Need for Achievement: It implies a desire to accomplish something. In order to ac-complish the task, one can use the creativity, talent, organise physical resources, explore and use opportunities, overcome from the obstacles and attain a high standard.
2. Need for Power: It is the concern with influencing people or the behaviour of others moving in the same direction to attain the objectives. Need for power means authority required to control the activities of an enterprise.
3. Need for Affiliation, people to conform: It implies among other things, a tendency of the to the wishes and norms of those whom they value. Entrepreneurs are believed to be Iowan affiliation buy they should focus and trace the elements of affiliation for the successful career and for the development of standardised goods and services for others.
4. Need for Autonomy: It means a desire for independence and being responsible and accountable to oneself rather than some external authority for performance-: Everybody needs freedom to some extent as it is very difficult to take orders and work all the time as per the boss.
2nd PUC Business Studies Entrepreneurship Development Long Answer Questions With Answers
Question 1.
Describe briefly the steps involved in starting a new business.
Answer:
Setting up and running of business unit is a very crucial decision which is taken by an entrepreneur. They perform several functions like assembling inputs, market analysis, sales strategy, risk factors financial analysis and many more. But in order to start a new business following steps are to be taken
1. Scanning the Environment: The complete awareness and understanding of business environment Is known as Environment scanning An entrepreneur scan business opportunities and risks involved. After the analysis, they use these opportunities and market them in a much better way.
2. Development of Product: It is the second step after scanning the environment, an entrepreneur starts assessing scarce resources, assembling inputs and starts the production of goods and services.
3. Feasibility Analysis: It refers to the analysis which helps in knowing the practical possibility. An entrepreneur starts looking at the feasibility like technical feasibility. This helps in knowing that the idea should be converted into reality using available technology, Similarly, economic feasibility helps in knowing the cost involved in production and after selling whether it will earn profit or not. The business plan starts after the feasibility report.
4. Funding Agencies: Finance is the backbone for the business activity. An entrepreneur needs finance to carry on the business that is why they prepare business plan which is to be submitted before the financial institutions and if satisfied they fund the project.
5. Establishing an Enterprise: After getting the fund, an entrepreneur have to take legal permission and clearance from various agencies in order to establish an enterprise.
Question 2.
Examine the nature of relationship between entrepreneurship and economic development.
Answer:
There is a mutual relationship between economic development and entrepreneurship. Entrepreneurship development leads to economic development of the country fey contributing in GOP and process of economic development which gives an opportunity for expansion and growth. Following points explain the relationship between economic development and entrepreneurship
1. Contfdarting to Gross Domestic Product (GOP): Income is generated in the process of production. Entrepreneurs generate income via organisation of production, it results in incwMttteg the value of GOPdirecdy
2. Capital Formation: Entrepreneurs use their own funds and encourage various investment opportunities to invest in companies. This leads to capital formation.
3. Generation of Employment: Every new business gives the opportunity of employment to the people with different abilities, skills and qualifications. It becomes a source of livelihood to those who neither have the capital to earn interest nor have the land to earn rent.
4. Improves Economic Efficiency Entrepreneurs improve economic efficiency by improving the process, reducing waste, increasing yield and bringing in technical progress. In this way, entrepreneurship results in economic development. On the other hand, economic development provides following opportunities for the growth and expansion of enterprise.
(a) Well developed financial in the economy
(b) Opportunities to raise and avail funds from various financial institutions.
(c) Lower rate of interest and moderate inflation.
(d) Availability of factors of production. ‘
Question 3.
Clarify how motivation and abilities impact on individuals decision to choose entre-preneurship as a career.
Answer:
Motivation and ability can positively reinforce each other. Persons having abilities search for the exposure and focus to start a new business. They take decisions logically with the personal courage and strive hard to acquire the necessary competencies to realise their dreams. Following competencies contribute towards effective performance and success
On the other hand, motivation is required to understand because entrepreneur’s objective is profit maximisation and it can only be achieved when employees are motivated in such a manner that fulfillment of enterprise’s objective may also lead to satisfy employees basic needs. In this way, entrepreneurship career proves to be a success for an individual motivation and ability both goes hand to hand.
2nd PUC Business Studies Entrepreneurship Development Application Question
Anshuman was a very industrious sales executive with a small herbal cosmetic manufacturer. He earned a good salary and commission on the business he brought for the firm and had very good command over the Delhi market for which he had virtually become indispensable. He was aware of the enviable position he held in the firm and thought aloud “The key to success in any business is the sale of its products. The beginning and end of the business cycle is nothing but sale and ‘other* people working in the factory to manufacture products are mere cogs in the business machine set in motion by sales people. So, why carry this burden and get only a tiny share of the prosperity of the firm? Instead others enjoying the fruits of my labour,
Question 1
why should I not start my own business?” Should Anshuman take a leap? Give reasons for your answer.
Answer:
Anshuman was a good industrious sales executive with a small herbal cosmetics. As per my opinion, Yes, he should start his own business as he is experienced, has a very good command over the market. He can market the products very well, maintain good relations with customers. He is good in marketing management. Thus, he can produce goods as per the customers’ needs, use effective promotional techniques and take care of customers.
2nd PUC Business Studies Entrepreneurship Development Case Problems Studies
Inspiring Feat: Daily wage Labourer turns Entrepreneur
A landless woman from Bihar has been nominated among the top 25 farmers in Asia by a Mexican website.
Forty five years old Lalmuni Devi was a daily wage labourer when she decided to take destiny into her own hands and transformed herself into a successful mushroom farmer. Today she manages to make Rs. 12,000 every year for an investment of only Rs 600.
Her feat finds mention on a Mexican website that has grouped her as the top 25 inspirational farmers in its photo gallery.
“1 am a poor woman. I thought that mushroom farming would profit henceforth I started it. Now, I can earn a living for my family”, said Lalmuni Devi.
Successful Enterprise
The success story has caught on with many women in the Azadpur village on the outskirts of Patna.
“It is effortless farming, which we can even do in our village. Working in the scorching heat is very tiring. Mushroom farming generates more profit”, said Urmila Devi.
Lalmuni and other landless women have been encouraged by the Indian Council for Agriculture Research to take up mushroom farming.
It is to help the poorest of the poor through alternative livelihood support system. For that we have chosen a village where people have no land and they have to share croppers”, said Dr AR Khan, Principal Scientist, ICAR,Patna.
Lalmuni’s efforts have paved the way for many other landless women to take up mushroom farming and earn a livelihood for their family with little effort.
Question 1.
What inspiring feat did Lalmuni Devi perform? Elaborate.
Answer:
A forty five years old woman Lalmuni Devi from Bihar was a daily wage labourer, then she decided to transform herself by starting mushroom farming. This step proved an inspirational feat and she was among the top 25 farmers in Asia by a Mexican website.
Question 2.
Do you feel that you can also become an entrepreneur?
Answer:
Lalmuni efforts have paved the way for others. Similarly, we can also become an entrepreneur and for that we should have following qualities
Question 3.
What qualities of entrepreneur did Lalmuni Devi exhibit?
Answer:
In the given case, Lalmuni have following qualities v
Question 4.
What are the benefits and risks of becoming an Entrepreneur? How can you guard against the risks? What (Teachers should highlight the qualities of an entrepreneur and motivate students to do so. Help that.
Answer:
Benefits of an entrepreneur
Risks of an Entrepreneur
In order to safeguard from the risk, an entrepreneur should analyse the market well, study about the innovative technologies, prepare the business plan so that financial institutions grant the fund, adopt the best ideas for product planning.
2nd PUC Business Studies Entrepreneurship Development One Mark Questions and Answers
Question 1.
What is Entrepreneurship?
Answer:
Entrepreneurship is the process of setting up one’s own business as distinct from pursuing any other economic activity.
Question 2.
What is need for achievement (N-Ach.).
Answer:
Need for Achievement (N-Ach.): Need for achievement implies a desire to accomplish something difficult. To master, manipulate, or organise physical objects, human beings or ideas.
Question 3.
Write a need for power (N-Pow).
Answer:
Need for Power (N-Pow): Need for Power is the concern for influencing people or the behaviour of others for moving in the chosen direction and attaining the envisioned objectives.
2nd PUC Business Studies Entrepreneurship Development Two Marks Questions and Answers
Question 1.
Write a note as entrepreneural values and attitudes.
Answer:
While explaining human behaviour, one often comes across the terms values and attitudes. Rather than attempting to distinguish between these two terms, it would be sufficient to say here that taken together, entrepreneurial values and attitudes refer to the behavioural choices individuals make for success in entrepreneurship.
The word choice is important, as there are alternative ways of behaving too. In entrepreneurship, a host of behavioural tendencies or orientations have been reported as having a bearing on success.
2nd PUC Business Studies Entrepreneurship Development Four Marks Questions and Answers
Question 1.
Explain the concept of Entrepreneurship.
Answer:
The concept of entrepreneurship: entrepreneurship is regarded as one of the four major factors of production, the other three being land, labour and capital. It is derived from French origin, the term ‘entrepreneurship’ (derived from the word ‘entreprende’ meaning ‘to undertake’) pertained not to economics, but to undertaking of military expeditions. So is true of many terms in management (a course of action to beat the competition, the ‘enemy’) and logistics The term ‘entrepreneur’ was first introduced in economics by the early 18th century French economist Richard Cantillon.
He defined the entrepreneur as the “agent who buys means of production at certain prices in order to sell the produce at uncertain prices in the future”In abroader sense it can define entrepreneurship as a systematic, purposeful and creative activity of identifying a need, mobilising resources and organising production with a view to delivering value to the customers, returns for the investors and profits for the self in accordance with the risks and uncertainties associated with business.
Question 2.
Explain the characteristics of entrepreneurship.
Answer:
Characteristics of entrepreneurship :
1. Systematic Activity: Entrepreneurship is a systematic, step-by-step and purposeful activity. It has certain temperamental, skill and other knowledge and competency requirements that can be acquired, learnt and developed, both by formal educational and vocational training as well as by observation and work experience.
2. Lawful and Purposeful Activity: The object of entrepreneurship is lawful business.
3. Innovation: From the point of view of the firm, innovation may be cost saving or revenue enhancing, Entrepreneurship is creative in the sense that it involves creation of value.
4. Organisation of Production: Production, implying creation of form, place, time personal utility, requires the combined utilisation of diverse factors of production, land, labour, capital and technology. Entrepreneur, in response to a perceived business opportunity mobilises these resources into a productive enterprise or firm.
5. Risk-taking: As the entrepreneur contracts for an assured supply of the various inputs for his project, the risk of paying them off whether or not the venture succeeds.
It is generally believed that entrepreneurs take high risks.
Question 3.
Explain the Functions of enterepreneurs.
Answer:
Functions of enterepreneurs in relation to economic development.
1. Contribution to GDP: Increase in the Gross Domestic Product or GDP is the most common definition of economic development.
2. Capital Formation: The entrepreneurial decision, in effect, is an investment decision that augments the productive capacity of the economy and hence results in capital formation.
3. Generation of Employment: Every new business is a source of employment to people with different abilities, skills and qualifications. As such entrepreneurship becomes a source of employees.
4. Generation of Business Opportunities for Others: Every new business creates . opportunities for the suppliers of inputs (this is referred to as backward linkages) and the marketers of the output.
5. Improvement in Economic Efficiency: You are aware that efficiency means to have greater output’ from the same input. Entrepreneurs improve economic efficiency by,
a. Improving processes, reducing wastes, increasing yield ,and,
b. Bringing about technical progress, that is, by altering labour-capital ratios.
6. Increasing the Spectrum and Scope of Economic Activities: Development does not merely mean ‘more’ and ‘better’ of the existing, it also and more crucially means diversification of economic activities- across the geographic, sectoral and technological scope.
7. Impact on Local Communities: Entrepreneurship, in its natural habitat, that is, small business is a great leveler. As there are no entry barriers in terms of educational qualifications, entrepreneurship is an even more attractive career option for such marginalised groups.
8. Fostering the Spirit of Exploration, Experimentation and Daring: Economic development, among other things, requires breaking away from the shackles of traditions and beliefs that restrict growth.
Question 4.
Explain Role of entrepreneurs in relation to their enterprise.
Answer:
Role of entrepreneurs in relation to their enterprise. Opportunity Scouting: Entrepreneurial opportunities have to be actively searched for. One may rely on personal observation, discovery or invention. Personal/professional contacts/ networks and experience or may also help in identifying business opportunities.
Identification of Specific Product Offering: While the environment scan leads to the discovery of more generalised business opportunities, there is a need to zero in on to a specific product or service idea.
Feasibility Analysis: The product offering idea must be technically feasible, that is it should be possible with the available technology to convert the idea into a reality.
Question 5.
Explain the process of entrepreneurship development.
Answer:
The process of entrepreneurship development:
Question 6.
Explain the process of business plan.
Answer:
2nd PUC Business Studies Entrepreneurship Development Eight Marks Questions and Answers
Question 1.
Write a note as Entrepreneural Competecies.
Answer:
Every opportunity and successful performance of every role and function has a competence requirement. Its true of entrepreneurship as well, entitled ‘Cash OR KASH?’
The term ‘competence’ refers to a composite of knowledge, skills and a host of psychosocial attributes in a person that mark his/her effectiveness for a task. The phrase ‘composite’ is crucial.
EDI has identified a set of 15 competencies that contribute toward entrepreneurial performance and success. These are briefly stated hereunder.
Question 5.
Differences enterpreruship and manageent.
Answer:
You can Download Chapter 12 Customer Protection Questions and Answers, Notes, 2nd PUC Business Studies Question Bank with Answers Karnataka State Board Solutions help you to revise complete Syllabus and score more marks in your examinations.
2nd PUC Business Studies Customer Protection True Or False Questions With Answers
I. State whether the following statements are true or false.
Question 1.
Consumer protection has a moral justification for business.
Answer:
True
Question 2.
In addition to rights, a consumer also has some responsibilities.
Answer:
True
Question 3.
A complaint can to be made to a District Forum when the value of the goods or services in question, along with the compensation claimed, exceeds? 20 lakhs.
Answer:
False.In district forum complaint can be made when goods or services, along with the compensation claimed, does not exceed ? 20 lakhs.
Question 4.
The Consumer Protection Act provides for six consumer rights.
Answer:
True
Question 5.
ISI is the quality certificate mark used in case of food products.
Answer:
False.ISI is the certification mark on electrical goods and FPO mark is for food products
Question 6.
Under the Consumer Protection Act, a compliant can be filed by a consumer for a defective good also for deficiency in service.
Answer:
True
2nd PUC Business Studies Customer Protection Short Answer Questions With Answers
Question 1.
Explain the importance of Consumer protection from the point of view of business.
Answer:
A business can not survive without paying attention on protecting the consumers interest and adequately satisfying them. This is important because of the following reasons
1. Long term interest of Business: Business firms should aim at long term profit maximisation through customer satisfaction. Satisfied customers not only lead to repeat sales but also provide good feedback to prospective customers and thus help in increasing the customer base of business.
2. Business uses Society’s Resources: Business organisations use the resources which belong to the society, thus they have a responsibility to supply such products and render such services which are in public interest.
3. Social Responsibility: A business has social resposibility towards various interest groups. Business organisations make money by selling goods and providing services to consumers. Thus, consumers form an important group among the many stakeholders of business and like other stakeholders, their interest has to be well taken care of.
4. Moral Justification: The moral duty of any business is to take care of consumer’s interest and securing them from exploitation. Thus, a business must avoid insecure loss, exploitation and unfair trade practices like defective and unsafe products, adulteration, false and misleading advertising, hoarding, black marketing etc.
5. Government Intervention: A business engaging in any form of exploitation time trade practices would invite government intervention or action. Thus, it is advisable that business organisations voluntarily resort to such practices, where the customers’ needs and interests will be taken care of.
Question 2.
Enumerate the various Acts passed by the Government of India which help in protecting the consumers’ interest.
Answer:
The Indian legal framework consists of a number of regulations which provide protection to consumers. Some of these regulations are as under
1. The Consumer Protection Act, 1986: This Act provides safeguards to consumers against defective goods, deficient services, unfair trade practices etc.
2. The Contract Act, 1982: This Act lays down the conditions in which the promises made by parties to a contract will be binding on each other.
3. The Sale of Goods Act, 1930: This Act provides some safeguards and reliefs to the buyers of the goods in case, the goods purchased does not comply with express or implied conditions or warranties.
4. Essential Commodities Act, 1955: This Act aims at controlling, production, supply, distribution and price of essential commodities.
5. The Agricultural Produce Act, 1937: This Act prescribes grade standards for agricultural commodities and livestock products.
6. The Prevention of Food Adulteration Act, 1954: This Act aims to check adulteration of foods articles and ensure their purity, so as to maintain public health.
7. The Standards of Weights and Measures Act, 1976: It provides protection to consumers against the malpractice of under-weight or under-measure.
8. The Trade Marks Act, 1999: This Act prevents the use of fraudulent marks on products and thus provides protection to the consumers against such products.
9. The Competition Act, 2002: This Act provides protection to the consumers In case of practices adopted by business firms which hamper competition in the market.
10. The Bureau of Indian Standard Act, 1986: The bureau has two major activities: Formulation of quality standards for goods and their certification through the BIS certification scheme. The bureau has also set up a grievance cell, where consumers can make a complaint about quality of products carrying the ISI mark.
Question 3.
What are the responsibilities of a consumer?
Answer:
1. Quality conscious: A consumer must be conscious in respect of the quality of the product like AGMARK, BIS MARK, HALLMARK, etc while purchasing the product.
2. Selection of goods: Consumer must choose only legal goods and services and discourage malpractice like smuggling, black marketing etc.
3. Consumer organization: Consumer must form their own organization to educate and protect their interest against malpractices of the manufactures and sellers.
4. Protection of environment: consumer must have respect for the environment and avoid wastage of resources and work towards protecting the environment and ecology.
5. Demand for Cash memo: The consumer must get a cash memo or bill in respect of the goods purchased or service availed.
Question 4.
Who can file a complaint in a consumer court?
Answer:
A complaint can be made by
Question 5.
What kind of cases can be filed in a State Commission?
Answer:
A complaint can be made to the appropriate State Commission when the value of the goods and services, along with compensation claim exceeds ₹ 20 lakhs but does not exceed ₹ 1 crore. The appeals against the orders of a District Forum can also be filed before the State Commission.
Question 6.
Explain the role of consumer organisations and NGOs in protecting and promoting consumers’ interest.
Answer:
Consumer organisation and NGOs perform several functions for the protection and promotion of interest of consumers. In India, these associations are performing lots of functions some of them are as given below.
2nd PUC Business Studies Customer Protection Long Answer Questions With Answers
Question 1.
Explain the rights and responsibilities of a consumer.
Answer:
The Consumer Protection Act provides six rights to consumers. They are as follows
a. Right to Safety : The consumer has a right to be protected against goods and services which are hazardous to life, e.g., sometimes we purchased the food items of low quality which causes severe problems. Thus, in this case, we should purchased good quality and FPO labelled products,
b. Right to be Informed : The consumer has a right to have complete information about the product, which he intends to buy including its ingredients, date of manufacture, price, quantity, directions for use etc. Under the legal framework of India manufactures have to provide such information on the package and label of the product.
c. Right to Choose : The consumer has the freedom to choose from a variety of products. The marketers should offer a wide variety of products and allow the consumer to make a choice and choose the product which is most suitable.
d. Right to be Heard : The consumer has a right to file a complaint and to be heard in case of dissatisfaction with a good or a service. It is because of this reason that many enlightened business firms have set up their own consumer service and grievance cells.
e. Right to Seek Redressal : The Consumer Protection Act provides a number product, of reliefs to the removal of defect consumer including replacement of the in the product, compensation paid for any loss or injury suffered by the consumer etc.
f. Right to Consumer Education : The consumer has a right to acquire knowledge about products. He should be aware about his rights and the reliefs available to him in case of a product service falling short of his expectations Many consumer organisations and some enlightened businesses are taking an active part in educating consumers in this respect.
Consumer Responsibilities
A consumer must be aware about these responsibilities while purchasing, using and consuming goods and services .
a. Consumer must be aware of all their rights.
b. Consumer must be careful while purchasing a product.
c. He should file complaint for the redressal of genuine grievances.
d. Consumer must buy a standardised good.
e. He should ask for a cash-memo on purchase of goods and services.
Question 2.
What are various ways in which the objective of consumer protection can be achieved? Explain the role of consumer organisations and NGOs in this regard?
Answer:
There are various ways in which the objective of consumer protection can be achieved
1. Self Regulation by Business: Socially responsible firms follow ethical standards and practices in dealing with their customers. Many firms have set up their customer service and grievance cells to redress the problems and grievances of their consumers.
2. Business Associations: The associations of trade, commerce and business like Federation of Indian Chambers of Commerce of India (FICCI) and Conference of Indian Industries (CII) have laid down their code of conduct which lays down for their members the guidelines in their dealings with the customers.
3. Consumer Awareness: A consumer, who is well informed about his rights and the reliefs, would be in a position to raise his voice against any unfair trade practices or exploitation.
4. Consumer Organisations : Consumer organisations play an important protecting role in educating consumers about their rights and providing protection to them. These organisations can force business firms to avoid malpractices and exploitation of consumers.
5. Government: The Government can protect the interests of the consumers by enacting various legislations. The legal framework in India encompasses various legislations which provide protection to consumers. The most important of these regulations is the Consumer Protection Act, 1986. The Act provides for a three-tier machinery at the District, State and National levels for redressal of consumer grievance.
Question 3.
Explain the redressal mechanism available to consumers under the Consumer Protection Act, 1986?
Answer:
For the redressal of consumer grievances, the Consumer Protection Act provides for setting up of a three-tier enforcement machinery at the District, State and the National levels.
1. District Forum: A complaint can be made to the appropriate District Forum when the value of goods or services, along with the compensation claimed, does not exceed ₹ 20 lakhs. In case the aggrieved party is not satisfied with the order of the District Forum. They can appeal before the State Commission within 30 days.
2. State Commission : A complaint can be made to the appropriate State Commission when the value of the goods or services, along with the compensation claimed, exceeds ₹ 20 lakhs but does not exceed ₹ 1 crore. The appeals against the orders of District Forum can also be filed before the State Commission. In case the party is not satisfied with the order of the State Commission. They can appeal before the National Commission within 30 days of the passing of the order by State Commission.
3. National Commission : A complaint can be made to the National Commission when the value of the goods or services, along with the compensation claimed exceeds ₹ 1 crore. The appeals against the orders of a State Commission can also be filed before the National Commission. An order passed by the National Commission in a matter of its original justification is appealable before the Supreme Court. This means that only those appeals, where the value of goods + services in question, along with the compensation claimed, exceeded ₹ 1 crore and where the aggrieved party was not satisfied with the order of the National Commission, can be taken to the Supreme Court of India.
2nd PUC Business Studies Customer Protection Case Problems
Now, filing a complaint is just, a click away. Filing a complaint in A consumer court is going to get a lot easier by the end of this year, virtually. No matter which part of the country you’re in, it’s going to happen at the click of a mouse.
The project, called Confonet (Computerisation and Computer Networking of Consumer Fora), is being executed on A turnkey basis by the National Informatics Centre (NIC).
“Online registration of complaints, the government hopes, will promote e-governance, transparency, efficiency and streamlining of consumer fora”, said an official in the consumer affairs ministry. of ₹ 48.64 Crore set aside for the project, the government has released ₹ 30.56 crore so far, the official added.
“Besides software development and testing, networking and project implementation, integration and site preparation, it will include purchase of hardware for all the 600 District Fora, 35 State Commissions and the National Commission”, the official said.
At present, computer systems and system software have been delivered to 25 state commissions and 300 District For a never mind the fact that it’s sometimes a long wait before the hardware is finally unpacked and set up in some of the districts. Meanwhile, training of staff, sometimes in the classroom and sometimes through elearning sessions, are in full swing.
“But just setting up an online complaint filing system won’t ensure a strong consumer protection movement in the country for that we’re working on GenNext and the best way to do that is to go to schools”, the official said.
The government is, therefore, involving school children to form consumer clubs, so as to involve them in various consumer welfare activities.
Part of the funding for running the clubs is to come from various state governments, with an equally matching grant from the Centre. However, a number of state governments are yet to sanction the fund – some of these include Uttar Pradesh, Madhya Pradesh and Kerala.
Question 1.
What new measure is the ministry of consumer affairs taking to make filing a complaint easy?
Answer:
Online registration of complaints has been initiated by the ministry of consumer affairs to make filing of complaint easy.
Question 2.
What roll can you as a student play to contribute to the cause of consumer protection?
Answer:
A student can play an active role in bringing out an awareness campaign on ‘Consumer Protection’.
Question 3.
What scenario of consumer protection do you foresee when the measures proposed in the above news report are implemented?
Answer:
With the. Implementation of online registration, educated and technology friendly consumer will gain but in my opinion the unaware, ignorant and Simple consumers who still are far away from e-governance would stand in need of the 3 forums working-efficiently and effectively Thus both the systems should work parallel, hand in hand to protect the interests of different types of consumers.
2nd PUC Business Studies Customer Protection One Mark Questions and Answers
Question 1.
Who is a consumer?
Answer:
Consumer is a person who buys goods or services to be consumed by himself or someone else on behalf of the buyer
Question 2.
When is consumers rights day observed?
Answer:
15th march of every year is observed as consumers rights day all over world
Question 3.
State any one consumer right.
Answer:
Right to safety
Question 4.
Name any one consumer grievances redressal agency.
Answer:
District consumer disputes redressal agency.
Question 5.
State any one remedy available to a consumer under the act.
Answer:
To replace the goods.
Question 6.
State any one consumer responsibility.
Answer:
Awareness of rights.
Question 7.
State any one reason for consumer protection.
Answer:
To protect the consumer from malpractices.
Question 8.
State the monetary limit for claim under the district forum.
Answer:
District Forum-Not exceeding 20 Lakhs
Question 9.
State the monetary limit for claim under the State Commission.
Answer:
State Forum – Exceeding 20 Lakhs less than 1 crore
Question 10.
State the monetary limit for claim under the National Commission.
Answer:
National Forum-Exceeding 1 crore.
Question 11.
When was Consumer Protection Act enacted?
Answer:
Consumer protection act was enacted in the year 1986.
Question 12.
What do you mean by consumer protection?
Answer:
Consumer Protection refers to protection of physical, economic, other interest of consumer from exploitation by the business community.
Question 13.
State any two features of consumer Protection.
Answer:
Consumer protection is viewed from the view point of Consumer, business
Question 14.
Mention any two rights of consumer.
Answer:
Right to safety & Right to be information
Question 15
State any two responsibilities of consumer.
Answer:
Selection of goods & Awareness of right
Question 16.
What is consumer Court?
Answer:
It is special purpose court mainly in India that deals with cases regarding consumer dispute and grievances.
Question 17.
What new measure is the ministry of consumer affairs taking to make filing a complaint easy?
Answer:
Online registration of complaints has been initiated by the ministry of consumer affairs to make filing of complaint easy.
2nd PUC Business Studies Customer Protection Two Marks Questions and Answers
Question 1.
Define consumer.
Answer:
A consumer may also be defined as “anybody who chooses goods and services, spend money to obtain them and used them to satisfy his or her own needs.
Question 2.
Name any two consumer grievances redressal agencies.
Answer:
Question 3.
List any two importance of consumer protection.
Answer:
Question 4.
Mention any two needs of consumer protection.
Answer:
Question 5.
State the composition of members of National Commission.
Answer:
Five members: a president & four members including one women member.
Question 6.
Write any two remedies available to the aggrieved consumer as per the Act.
Answer:
Question 7.
Name any two persons who can file a complaint with the redressal agencies.
Answer:
Question 8.
What scenario of consumer protection do you foresee when the measures proposed in the above news report are implemented?
Answer:
With the Implementation of online registration, educated and technology friendly consumer will gain but in my opinion the unaware, ignorant and Simple consumers who still are far away from e-governance would stand in need of the 3 forums working efficiently and effectively Thus both the systems should work parallel, hand in hand to protect the interests of different types of consumers.
2nd PUC Business Studies Customer Protection Four Marks Questions and Answers
Question 1.
Explain any five consumer rights.
Answer:
1. Right to Safety: According to this right, every consumer has right to be protected against. the marketing of goods and services which are hazardous to life and property.
2. Right to be informed: Every consumer has the right to be informed about the quality, quantity, purity, standards and price of goods so as to protect them against unfair trade practices.
3. Right to choose: The consumer has the right to choose the product independently, their choice out of the available alternative products.
4. Right to seek redressal: Every consumer has the right to seek redressal against any defect in the product or deficiency in the service.
5. Right to consumer education: Consumer must be educated against frauds, and about their rights and reliefs available to them in case of a product or service falls short of the required level.
Question 2.
Explain the importance of consumer protection.
Answer
1. Ignorance of consumers: Most of the consumer are ignorant and are not aware of their rights, hence a proper system is required to protect them against unfair trade practices.
2. Unorganized consumer: Consumer are not well organized, but producers and traders are well organized. As a result consumers are being exploited by the big business houses.
3. Deceptive advertising: Many business organizations deliberately cheat consumers through misleading advertisements about Quality, safety and utility of the products.
4. Malpractices of Businessmen: Businessmen indulge in malpractice such as adulteration and black marketing etc to maximize profit therefore consumers are exploited.
5. Freedom of Enterprise: For the survival and growth of business in the long run the business must ensure customer satisfaction so as to earn goodwill and support of consumer.
Question 3.
State the feature of district forum.
Answer:
1. Composition: Each district forum consists of a committee of three persons. A president and two members out of whom, one must be women who are being nominated by the state government for a term of 5 years.
2. Qualification: The president should have the qualification to be of a district judge and out of the two members one should be an eminent person from the field of education, trade or commerce with a bachelors degree.
3. Powers: Each district redressal agency is being given the powers of that of a civil court for enquiring into any complaints.
4. Jurisdiction: The district redressal agency is empowered to receive such complaints where the value of goods or service and compensation claimed in is not exceeding rupees twenty lakhs.
5. Redressal Proceeding: upon the receipt of the complaint, the agency serves a notice to the opposite party referred in the complaint, such opposite party may be a seller, a distributer or a manufacturer. If needed the agency sends the sample of goods for analysis and testing in a laboratory in respect of the defect raised in the complaint.
Question 4.
State the features of state commission.
Answer:
1. Composition: A state commission consists of a committee of 3 persons – a president two member out of whom, one must be a woman who are being nominated by the state government for a term of 5years.
2. Qualification: President should have the qualification to be of High court judge should possess bachelors degree & should have adequate knowledge & good experience in dealing with problems relating to Economics, commerce, Law, Accountancy, public affairs, Administration etc.
3. Jurisdiction: It is empowered to receive such complaints where the value goods & services & the compensation claimed is exceeding Rs.20 lakhs but less than Rs. 1 crore & the appeals against’ order of any District redressal Agencies.
4. Redressal Proceeding: upon the receipt of the complaint, the State commission serves a notice to a opposite party referred in the complaint, such opposite party may be a seller, a distributer or a manufacturer, if needed the commission further sends the sample of goods for analysis and testing in a laboratory in respect of the defect raised in the complaint.
5. Remedy: if it is found that the product has some defect or there is some unfair trade practice, the commission can direct the accused to:
Question 5.
State the features of National Commission.
Answer:
1. Composition: A National commission consists of a committee of 5 persons – a president & 4 member including one woman member, who are being nominated by the central government. For a term of 5years
2. Qualification: President should have the qualification to be of supreme court judge should possess bachelors degree & should have adequate knowledge & good experience in dealing with problems relating to Economics, commerce, Law, Accountancy, public affairs, Administration etc..
3. Jurisdiction: It is empowered to receive such complaintsWhere the value of the goods & services & the compensation paid exceeding Rs.1, crore. The appeals against the order of any State Commission.
4. Redressal Proceeding: upon the receipt of the complaint, the National commission serves a notice to a opposite party referred in the complaint, such opposite party may be a seller, a distributer or a manufacturer, if needed the commission further sends the sample of goods for analysis and testing in a laboratory in respect of the defect raised in the complaint.
5. Remedy: if it is found that the product has some defect or there is some unfair trade practice, the commission can direct the accused to:
Question 6.
What are the remedies available to a consumer as per consumer protection Act?
Answer:
The remedies are available as per the act are :
2nd PUC Business Studies Customer Protection Eight Marks Questions and Answers
Question 1.
Explain the features of District Forum and State Commission?
Answer:
Features of district forum are ;
1. Composition: Each district forum consists of a committee of three persons. A president and two members out of whom, one must be women who are being nominated by the state government for a term of 5 years.
2. Qualification: The president should have the qualification to be of a district judge and out of the two members one should be an eminent person from the field of education, trade or commerce with a bachelors degree.
3. Powers: Each district redressal agency is being given the powers of that of a civil court for enquiring into any complaints.
4. Jurisdiction: The district redressal agency is empowered to receive such complaints where the value of goods or service and compensation claimed in is not exceeding rupees twenty lakhs.
5. Redressal Proceeding: upon the receipt of the complaint, the agency serves a notice to the opposite party referred in the complaint, such opposite party may be a seller, a distributer or a manufacturer. If needed the agency sends the sample of goods for analysis and testing in a laboratory in respect of the defect raised in the. complaint.
Features of state commission forum are;.
1. Composition: A state commission consists of a committee of 3 persons – a president two member out of whom, one must be a woman who are being nominated by the state government for a term of 5years.
2. Qualification: President should have the qualification to be of High court judge should possess bachelors degree & should have adequate knowledge & good experience in dealing with problems relating to Economics, commerce, Law; Accountancy, public affairs, Administration etc..
3. Jurisdiction: It is empowered to receive such complaints where the value goods & services & the compensation claimed is exceeding Rs.20 lakhs but less than Rs. 1 crore & the appeals against order of any District redressal Agencies.
4. Redressal Proceeding: upon the receipt of the complaint, the State commission serves a notice to a opposite party referred in the complaint, such opposite party’ may be a seller, a distributer or a manufacturer, if needed the commission further sends the sample of goods for analysis and testing in a laboratory in respect of the defect raised in the complaint.
5. Remedy: if it is found that the product has some defect or there is some unfair trade practice, the commission can direct the accused to:
Question 2.
Explain the features of national commission?
Answer:
1. Composition: A National commission consists of a committee of 5 persons -a president & 4 member including one woman member, who are being nominated by the central government. For a term of Syears
2. Qualification: President should have the qualification to be of supreme court judge should possess bachelors degree & should possess bachelors degree & should have adequate knowledge & good experience in dealing with problems relating to Economics, commerce, Law, Accountancy, public affairs, Administration etc..
3. Jurisdiction: It is empowered to receive such complaints Where the value of the goods & services & the compensation paid exceeding Rs.1 crore. The appeals against the order of any State Commission.
4. Redressal Proceeding: upon the receipt of the complaint, the National commission serves a notice to a opposite party referred in the complaint, such opposite party may be a seller, a distributer or a manufacturer, if needed the commission further sends the sample of goods for analysis and testing in a laboratory in respect of the defect raised in the complaint.
5. Remedy: if it is found that the product has some defect or there is some unfair trade practice, the commission can direct the accused to:
2nd PUC Business Studies Customer Protection Five Marks Questions and Answers
question 1,
As an aggrieved consumer, write a complaint to District Forum seeking redressal.
Answer:
31st July 2017
Bangalore
From,
Mr. Rajeev Yadav,
#63, 5th Cross, 9th Main,
BM Temple Road
Bangalore – 560887
To,
The Registrar (KSCDRC)
Karnataka State Consumer Dispute Redressal Commission
Cunningham Road,
Bangalore.
Dear Sir,
Sub: Compliant against the CDFL Electronics – BMC Road, RR Pet, Bangalore.
With reference to the above subject, I would like to bring to your kind notice that, I had purchased a T.V set (32 Inches, LCD TV) on 26th July 2013 for Rs. 45000/- for which a warrantee of 1 year was provided( copy Bill attached for quick reference) On 13th July 2014 I had filed a complaint about the performance of the T.V to the customer care centre. A service personal had visited our place and resolved the issue.
Weeks later on 21st July 2014 the same problem with T.V set raised and the complaint was registered on the same day. The company provided the service personal on 25th July 2014 and refused to provide the service under warrantee and demanded for the service fees.
Though complaint was registered before the closure of the warrantee period the company fails to provide the service as promised. Till today the problem is unsolved in spite of repeated complaints. I hereby request you to kindly look in to the issue and provide redressal.
Thanking you
Yours truly
Rajeev Yadav
You can Download Chapter 11 Marketing Questions and Answers, Notes, 2nd PUC Business Studies Question Bank with Answers Karnataka State Board Solutions help you to revise complete Syllabus and score more marks in your examinations.
2nd PUC Business Studies Marketing Management Very Short Answer Questions With Answers
Question 1.
Explain the advantages of branding to marketers of goods and services.
Answer:
Branding is an important function performed by a marketer. It has following advantages to the marketers
Question 2.
List the characteristics of a good brand name.
Answer:
Following are the characteristics of a good brand name
Question 3.
What is the societal concept of marketing?
Answer:
The societal concept of marketing means an extension of marketing concept. Apart from the consumer satisfaction, it pays attention to the social, ethical and ecological aspects of marketing.
Question 4.
List the characteristics of convenience products.
Answer:
Following are the characteristics of convenience products
Question 5.
Enlist the advantages of packaging of a consumer products.
Answer:
Importance of packaging are as given below.
Question 6.
What are the limitations of advertising as a promotional tool? Enlist.
Answer:
Following are the limitations of advertising
Question 7.
List five shopping products purchased by you or your family during the last few months.
Answer:
2nd PUC Business Studies Marketing Management Short Answer Questions With Answers
Question 1.
What is marketing? What functions does it play with process of exchange of goods and services? Explain.
Answer:
Marketing is a total system of business activities designed to plan, price, promote and distribute want satisfying goods and services to present and potential customers. Marketing is concerned with exchange of goods and services from producer to consumers which involves many activities.
1. Gathering and Analysing Market Information: This is done to identify the needs of the customers and take various decisions for the successful marketing of the products and services.
2. Marketing Planning Another important activity or area of work of a marketer is to develop appropriate marketing plans, so that the marketing objective of the organisation can be achieved.
3. Product Designing and Development The design of the product contributes to make the product attractive to the target customers.
A good design can improve performance of a product and also give it a competitive edge in the market.
4. Standardisation and Grading: Standardisation refers to producing goods to predetermined specification which helps in achieving uniformity and consistency in the output which reduces the need for Inspection, testing and evaluation of the products.
Grading is the process of classification of products into different groups, on the basis of its features such as quality, size etc. It ensures that goods belong to a particular quality help in releasing higher prices for high quality output.
5. Packaging and Labelling: Packaging refers to designing the package for the products. Labelling refers to designing the label to be put on the package. Packaging provides protection to the product and also helps in its promotion. Labelling helps in self service.
6. Branding: Brand names help in creating product differentiations i.e., how the product can be distinguished from its competitors.
7. Customer Support Service: Marketing management relates to developing customer support service such as after sales services and handling customer complaints. All these aim at providing customer satisfaction which is a key to marketing success.
8. Pricing of Product: Price is an important factor affecting the success or failure of a product in the market. The marketers have to analyse properly the factors determining the price of a product.
9. Promotion: Promotion of products and services involves informing the customers about the firm’s product, its features etc and persuading them to purchase these products. It includes four methods: advertising, sales promotion, personal selling and publicity.
10. Physical Distribution: The important decision areas under physical distribution include managing inventory, storage, warehousing and transportation of goods from one place to another.
11. Transportation: Transportation involves physical movement of goods from one place to another. A marketer has to perform this function very efficiently keeping in mind the nature of product, cost, location of target market etc.
12. Storage or Warehousing: In order to maintain a smooth flow of products in the market, there is a need for proper storage of the products. Further, there is a need for storage of adequate stock of goods to protect against unavoidable delays in delivery or to meet out contingencies in the demand. Wholesalers and retailers play an important role in this.
Question 2.
Distinguish between the product concept and production concept of marketing.
Answer:
Difference between Product and Production Concepts are as given below.
| Basis | Product concept | Production concept |
| Main focus | The focus of the product concept is on quality of the product | The focus here is an quantity of the product |
| Means | It is achieved through continuous improvement in the quality | It is achieved through increased production leading to lower costs |
| Objective | Profit maximization through quality improvement | Profit maximization through increased production |
Question 3.
Product is a bundle of utilities. Do you agree? Comment.
Answer:
Yes, product is a bundle of utilities, which is purchased because of its capability to provide satisfaction of certain needs. A buyer buys a product or service for what it does for them or the benefits it provides. There can be three types of benefits, it provides to a customer.
e.g., the purchase of a motorcycle provides functional utility of transportation, but at the same time satisfies the need for prestige and esteem and provides social benefit by the way of acceptance from a group by riding it.
Question 4.
What are industrial products? How are they different from consumer products? Explain.
Answer:
Industrial products are those products, which are used as inputs in providing other products e.g., raw material, engines, tools, lubricants etc.
| Basis | Consumer product | Industrial product |
| Buyer | Consumer is the buyer | Industrial units and the processors are the buyers |
| Motive | It is purchased for personal consumption | It is bought and used for making other products |
| Number of buyers | Number of buyers of consumer products is large | Number of buyers is limited in case of industrial products |
The difference between consumer products and industrial products is based on their ultimate use and nature of purchases.
Question 5.
Distinguish between convenience product and shopping product.
Answer:
Difference between Convenience and Shopping Product
| Basis | Convenience product | Shopping product |
| Shopping efforts |
No or very little efforts are made in purchasing such products | Considerable time is devoted in purchasing such products |
| Cost | these products have low per unit cost | Unit price of such products is high |
| Retail outlets |
Number of retailers is large | Number of retailers is less |
| Customerbase | There is regular and continuous demand from the same set of customers | They cater to a large customer base |
Question 6.
Products is a mixture of tangible and intangible attributes. Discuss.
Answer:
In marketing, product is a mixture of tangible and intangible attributes which are capable of being exchanged for a value, with ability to satisfy customer needs. Beside physical objects, include services, ideas, persons and places in the concept of product. Thus, product may be defined as anything that can be offered in a market to satisfy a want or need. It is offered for attention, acquisition, use or consumption.
Question 7.
Describe the functions of labelling in the marketing of products.
Answer:
Label on a product provides detailed information about the product, its contents, methods of use etc. The various functions performed by a label are as follows
1. Describe the Product and Specify its Contents: One of the most important functions of labels is that it describes the product, its usage, cautions in use etc and specify its contents.
2. Identification of the Product or Brand: A label helps in identifying the product or brand e.g., we can easily pick our favourite soap from a number of packages, only because of its label.
3. Grading of Products Labels help grading the products into different categories. Sometimes, marketers assign different grades to indicate features or quality of the product e.g., different type of tea is sold by some brands under Yellow, Red and Green label categories.
4. Help in Promotion of Products An important function of label is to aid in promotion of the products. A carefully designed label can attract the customer to purchase. So, many labels provide promotional messages, some show discount or other schemes etc.
5. Providing Information Required by Law Another important function of labelling is to provide information required by law. e.g., the statutory warning on the package of cigarette or pan masala – ‘Smoking is injurious to health’ or ‘Chewing tobacco causes cancer.’
Question 8.
Discuss the role of intermediaries in the distribution of consumer non- durable products.
Answer:
The term channels of distribution refers the facilitate to the movement of goods and services and their title between the point of production and point of consumption, by performing a variety of marketing activities. Following are the functions performed by the channels of distribution
1. Accumulation: It aims at holding the stock to match between consumer demand and supply condition. Warehousing helps in maintaining continuous flow of goods and services.
2. Promotion: The marketing channels also help in promoting the demand for the product by displaying, demonstrating and participating in various promotional activities organised by the producers.
3. Negotiating: The marketing channels are the intermediaries between the producers and the consumers. They attempt to reach final agreement on price and other terms of the offer, so that transfer of ownership is properly effected.
4. Risk-taking: Risk taking is the basic responsibility of the intermediaries. It may arise out of physical deteriorations, changes in price levels, natural calamities, change in fashion etc. These are unavoidable as they hold sufficiently large and variety of inventories till the sale of stock.
5. Grading/Sorting: Grading is the process whereby they sort the products on the basis of different sizes, qualities, moisture contents and so on. It helps in realising the time value on shelf life for the product and at the same time the ultimate consumer feels satisfied with the uniform quality of the product.
6. Packaging: The products are packed in the small tradable lots for the convenience of the consumer.
7. Assembling/Assortment: Marketing channels aim at satisfying the needs of the customers. The products desired by the consumer may not be available in the market. They procure such goods from different sources, assemble or assort them as per the requirements of the consumers.
Question 9.
Explain the factors determining choice of channels of distribution.
Answer:
The choice of channels depend on various factors, which are discussed as follows
1. Product Related Factors The important product related considerations is deciding the channels. It includes whether the’ product is an industrial product or a consumer product. Industrial product require shorter channel and consumer products require longer channel.
2. Company Characteristics The important company characteristics affecting the choice of channels of distribution include the financial strength of the company and the degree of control it wants to hold on other channel member. Direct selling involves lot of foods to be invested in fixed assets say starting own retail outlets or engaging large number at sales force. Similarly if the management want to have greater control on the channel number, short channels are used but if the management do not want more control over the middlemen, it can go in for longer channel or large number of intermediaries.
3. Competitive Factors The choice of channel is also affected by what the competitor has selected as its channel. Sometimes, firm may decide to go for the same channel and sometimes absolutely opposite.
4. Market Factors Important market factors affecting the choice of channel of distribution include size of market, geographical concentration of potential buyers and quantity purchased.
5. Environmental Factors Sometimes environmental factors also helps in deciding the channel of distribution, e.g., in a depressed economy, marketers use shorter channels to distribute their goods In an economical way.
Question 10.
Explain briefly the components of physical distribution.
Answer:
The main components of physical distribution are as follows
1. Order Processing If a firm takes more time to process the order, then the consumer remains dissatisfied. Therefore, order processing has to made faster by using information technology.
2. Inventory Control Inventories ensure the availability of the product as and when consumer demand arises. There are various factors which influence a firm decision regarding the level of inventory e.g., degree of accuracy of sales forecast, cost of blocking of the working capital etc.
3. Warehousing It refers to the storage of goods from the time of production to the time of consumption, Warehousing is important as it creates time utility.
4. Transportation It creates place utility, It refers to the carrying of raw materials or finished goods from one place to another, The most important thing to be kept in mind is that the value addition by transportation should be greater than the cost of transportation.
Question 11.
Define advertising. What are its main features? Explain.
Answer:
Advertising is defined as the impersonal form of communication which is paid form by the marketer to promote some goods or services, It is commonly use as the promotional tool of the company, The important features of advertising are as follows
1. Paid Form Advertising is a paid form of communication which means the sponsor has to” bear the cost of communication with the prospects.
2. Impersonality There is no direct face to face contact between the prospect and advertiser, It is therefore, referred as the impersonal method of promotion.
3. Identified Sponsor Advertising is undertaken by some Identified individual or company, who makes the advertising efforts and also bears the cost of it.
Question 12.
Discuss the role of ‘Sales Promotion’ as an element of promotion mix.
Answer:
Sales promotion includes those marketing activities other than personal selling, advertising and publicity that stimulate consumer purchasing and dealer effectiveness, such as display, shows and exhibitions, demonstrations and various non-current selling efforts not in the ordinary routine, The main objectives of sales promotion activities are
2nd PUC Business Studies Marketing Management Long Answer Questions With Answers
Question 1.
Define Marketing. How is it different from selling? Discuss.
Answer:
Marketing is a total system of business activities designed to plan, price, promote and distribute want, satisfying goods and services to present and potential customers, difference between selling and marketing
| Basis | Selling | Marketing |
| Starting point | The selling starts after production has taken place | It stars even before goods are produced. |
| Main focus | To sell the product | To satisfy the consumer |
| Means | it is achieved through advertisement personal selling and sales promotion | It is achieved through integrated marketing |
| Ends /profit maximization | Profit maximization is achieved through volume of sales | Profit maximization is achieved through customer satisfaction |
Question 2.
What is the marketing concept? How does it help in the effective marketing of goods and services?
Answer:
Orientation of marketing implies that focus on the satisfaction of customers need, is the key to the success of any organisation in the market. All the decisions in the firm are taken from the point of view of the customers, e.g., What product will be produced, with what features and at what price shall it be sold or where shall it be made available for sale will depend on what do the customers want.
Marketing concept helps in effective marketing of goods and services by using the following.
Question 3.
What is marketing mix? What are its main elements? Explain.
Answer:
Marketing mix refers to the combination of four basic elements known as four P’s – Product, Price, Promotion and Place.
1. Product Mix: Product mix basically concerns with the features related to a product e.g., range, quality, size, labelling, packaging, branding etc. All products must satisfy consumer needs and expectations. It aims at providing good quality products at fair prices.
2. Price Mix: It includes decisions relating to price determination, discounts and allowances credit terms. It covers pricing objectives and pricing policies. Price should cover not only cost of production and selling expenses but also a reasonable profit margin. The price policy adopted by the enterprise should not only be cost based but also demand based and competition based.
3. Place Mix: Place mix links the seller and the buyer. The choice of channels of distribution and transport are the two major issues here. There are various factors which help in deciding the channel e.g., the time and the place, where the goods have to reach or transportation. It is the nature of goods, place of destination, cost and availability etc.
4. Promotion Mix: It refers to all marketing activities to increase the volume of sales of the product of an enterprise. It consists of means of marketing communication with a view to informing and persuading the prospective buyers to buy a certain product. It includes advertising, personal selling, publicity and sales promotion.
Question 4.
How does branding help in creating product differentiation? Does it help in marketing of goods and services? Explain.
Answer:
Branding helps a firm in distinguishing its products from that of its competitors. This helps the firm to secure and control the market for its products. If products were sold by generic names, it would be very difficult for the marketers to distinguish their products from their competitors. Thus, most marketers give a name to their product, which helps in identifying and distinguishing their products from their competitors’ products. This process of giving a name or a sign or a symbol etc to a product is called Branding.
Question 5.
What are the factors affecting determination of the price of a product or service? Explain.
Answer:
The factors affecting pricing decisions can be classified into two categories as under:
Internal Factors: These are controllable factors which exist within the company’s environment. They are:
1. Business Objectives: The pricing decision should always be in accordance with the business objectives like growth an expansion and customer satisfaction.
2. Cost of the product: This is the most important factor that determines the pricing decision. The price = Cost + profit. Thus the price for the product or service should cover the entire cost to the manufacturer as well as reasonable profits.
3. Quality of the product: High quality products give rise to higher cost and demands for higher price. But low quality products give rise to low cost and reduces the price.
4. Marketing Mix: The other elements of the marketing mix also influence the pricing decisions. If the other elements ail well co-ordinate, even a high-priced product can be sold easily.
5. Product differentiation: If a business concern differentiate its products from that of the competitors in terms of style, design, colour, package etc., it can change its prices easily than a firm which is too rigid in its product.
External Factors: These are the uncontrollable factors which exist outside the company’s environment. They are:
1. Elasticity of demand: A product that has inelastic demand, higher price may be fixed for that product. But if the demand for the product is elastic the price of the product must be kept flexible.
2. Pricing policy of competitors: The number of competitors and pricing strategies also will have a bearing on the pricing decisions of a concern.
3. Distribution channels: A lengthy distribution channel demands for higher price. On the other hand a shorter distribution channel reduces the price of the product.
4. Government policy: The government policies regarding certain products influence the pricing decision of the concern. Accordingly price needs to be adjusted.
Question 6.
What do you mean by ‘Channels of distribution’? What functions do they play in the distribution of goods and services? Explain.
Answer:
People, institutions, merchants and functionaries, who take part in the distribution of goods and services are called ‘Channels of Distribution’. Channels of distribution are set of firms and individuals that take title or assist in transferring title; to particular goods or services as it moves from the producers to the consumers.
Channels of distribution smoothen the flow of goods by creating possession, place and time utilities. They facilitate movement of goods by overcoming various barriers The important function performed by middlemen are the following.
1. Sorting: Middlemen procure supplies of goods from a variety of sources, which is often not of the same quality, nature and size. These goods are sorted into homogeneous groups on the basis of the size or quality.
2. Accumulation: This function involves accumulation of goods into larger homogeneous stock, which helps in maintaining continuous flow of supply.
3. Allocation: Allocation involves breaking homogeneous stock into smaller, marketable lots to sell them to different types of buyers.
4. Assorting: Middlemen build assortment of products for resale. There is usually a difference between the product lines made by manufacturers and the assortment or combinations desired by the users. Middlemen produce variety of goods from different sources and deliver them in combinations as desired by the customers.
5. Product Promotion : Middlemen also participate in some sales promotion activities, such as demonstration, special display, contests etc., to increase the sales of products.
6. Negotiation: Channels operate with manufacturers on the one hand and customer on the other. They negotiate the price, quality, guarantee and other related matters with customers, so that transfer of ownership is properly effected.
7. Risk-taking : In the process of distribution of goods, the merchant middlemen take title of the goods and thereby assume risks on account of price and demand fluctuations, spoilage, destruction etc.
Question 7.
Explain the major activities involved in the physical distribution of products.
Answer:
Physical distribution covers all the activities required to physically move goods from manufacturer to the customers. Important activities involved in the physical distribution include transportation, warehousing, material handling and inventory control.
1. Order processing: In a typical buyer-seller relationship, order placement is the first step. Products flow from the manufacturers to customers via channel members while orders flow from customers to manufacturers. Therefore, a good speedy and accurate system of order processing becomes a necessity.
2. Transportation: Transportation is the means of carrying goods and raw materials from the point of production to the point of sale. It is one of the major element in the physical distribution of goods. It is important because unless the goods are physically made available, the sale can not be completed.
3. Warehousing: Warehousing refers to the act of storing and assorting products in order to create time utility in them. The basic purpose of warehousing activities is to arrange placement of goods and provide facilities to store them. The need for warehousing arises because there may be difference between the time a product is produced and the time it is required for consumption. Generally, the efficiency of a firm in serving its customers will depend on, where these warehouses are located and where these are to be delivered.
4. Inventory Control: A very important decision to be made in respect of inventory is deciding about the level of inventory. Higher the level of inventory, higher will be the level of service to customers but the cost of carrying the inventory will also be high because a lot of capital would be tied up in the stock. The decision regarding level of inventory involves prediction about the demand for the product. A correct estimate of the demand helps to hold inventory and cost level down to a minimum. The major factors determining inventory levels include the following.
(a) Firm’s policy regarding the level of customer service. Higher the level of service, greater will be the need to keep more inventories.
(b) Degree of accuracy of the sales forecast: In case more accurate estimates are available, the need for keeping very high level of Inventory can beminimised.
(c) Responsiveness of the distribution system i.e., ability of the system to transmit inventory needs back to the factory and get products to the market.
(d) Cost of inventory, which includes holding cost, such as cost of warehousing, tied up capital etc and the manufacturing cost
Question 8.
‘Expenditure on advertising is a social waste’. Do you agree? Discuss.
Answer:
The opponents of advertising say that the expenditure on advertising is a social waste as it adds to the cost, multiplies the needs of the people and undermines social values. The proponents, however argue that advertising is very useful as it increases the reach, brings the per unit cost of production down and adds to the growth of the economy.
Following are the points of criticism and arguments against them.
1. Adds to cost: The opponents of advertising argue that advertising unnecessarily adds to the cost of product, which is ultimately passed on to the buyers in the form of high prices. It is line that advertisement of a product cost lots of money but it helps to increase the demand for the product as large number of potential buyers come to know about the availability of the products, its features etc and are persuaded to buy it. This increases the demand and therefore the production. As a result, the per unit cost of production comes down as the total cost is divided by larger number of units.
2. Undermines Social values: Advertising undermines social values and promotes materialism. It breeds discontentment among people as they come to know about new products and feel dissatisfied with their present state of affairs. This criticism is not entirely true. Advertisement in fact helps buyer by informing them about the new products which may be an improvement over the existing products.
3. Confuses the buyers: Another criticism against advertisements is that so many products are being advertised with similar claims, that the buyer gets confused as to which one is true and which can be relied upon, e.g., There are so many brands of soaps, shampoos, cars. TVs. cell phones etc which are hieing advertised. The supporters of advertisement, however argue that we are all rational human beings who make our decisions for purchase of products on factors, such as price, style, size, etc. Thus the buyers can clear their confusion by analysing the information provided on the advertisements and other sources before taking a decision to purchase a product.
4. Encourages sales of inferior products: Advertising does not distinguish between superior and inferior products and persuade people to purchase even inferior products. The desired level of quality will depend on the economic status and preferences of the target customers. Advertisements sell products of a given quality and the buyers will buy, if it suits their requirements.
5. Some Advertisements are in bad taste: Another criticism against advertising is that some advertisements are in bad taste. They show something which is not approved by some people. Some advertisement spoil the relationship between employer and employee, husband and wife etc.
Conclusion: From the above discussion, we learn that though advertisements are criticised, they still have their own advantages. It is not a complete social waste, rather it adds value to the social cause by giving a boost to production and generating employment.
Question 9.
Distinguish on advertising is a social waste: Do you agree? Discuss.
Answer:
Following are the differences between Advertising and Salesmanship:
| Basis | Advertising | Salesmanship |
| Nature of communication | It involves impersonal and mass one way communication. | It involves direct face to face two way communication. |
| Coverage | It has a wider coverage at a time. | It covers only individual or a small group of people at a time. |
| Flexibility | It is less flexible. | It is more flexible. |
| Feedback | It does not provide feedback immediately. | It provides feedback immediately. |
| Object | It aims at creation of customers. | It aims at selling the product or service. |
| Clarification of doubts. | Doubts cannot be clarified easily. | Here doubts can be clarified easily. . |
| Cost and Time | It is less costly and less time consuming. | It is more costly and more time consuming. |
| Media/Tools | It uses TV, Radio, Newspapers, Journals etc | Sales representatives are the only tool used here. |
2nd PUC Business Studies Marketing Management Application Based Problems
Question 1.
As marketing manager of a big hotel located at an important tourist destination, what societal concerns would be faced by you and what steps would you plan to take care of these concerns? Discuss.
Answer:
The societal marketing concept holds that the task of any organisation is to identify the needs and wants of the target market and deliver the desired satisfaction in an effective and efficient manner, so that the long term well-being of the consumers and the society is taken care of. In case any business activity encourages pollution, deforestation, storage of resources, population explosion, then its benefits cannot be justified. As marketing manager of a big hotel located at an important tourist destination certain care need to be taken regarding environment.
Question 2.
Suppose you are the Marketing Vice President of an Insurance Company, planning to design a new mediclaim policy for senior citizens. What information would you like to collect to perform this task and how will you collect such information? Discuss.
Answer:
The following information about the senior citizens should be collected
There are various sources of collecting the above information – personal visits, questionnaires, medical reports from nursing homes, doctors, clinics etc.
Question 3.
What shopping products have been purchased by you/your family in the last six months? Make a list and specify what factors influenced the purchase of each of these products.
Answer:
The following shopping goods were purchased by my family
Question 4.
What information is generally placed on the package of a food product? Design a label for one of the food product of your choice.
Answer:
The following information is normally placed, on the package of good product
Question 5.
For buyers of consumer durable products, what ‘customer care services’ would you plan as a manager of a firm marketing new brand of motorcycle. Discuss.
Answer:
For marketing motorcycles, the following customer care services can be planned
2nd PUC Business Studies Marketing Management Case Problems Studies
Nokia takes four-lane road to consumers.
NEW DELHI After having grabbed a king size 79% share of the 15,000 crore mo-bile handset market in India, Nokia India has found a new way of connecting people.
The mobile handset manufacturer has embarked upon a brand new retail strategy that is based on a classification of its consumers into four major groups that separates people in terms of usage, income level and lifestyle.
The classification is based on an extensive survey- the Nokia Segmentation Study – that was carried over two years involving 42,000 consumers from 16 countries. It studied the impact lifestyle choices and attitudes have on the mobile devices consumers buy and how they use them.
The strategy, which was announced globally in June last year, is being unfolded in India now. While the nitty-gritty of the new strategy is still being worked out, it is likely that the company would follow separate marketing strategies for the four different segments. The advertising campaigns could be different for the segments.
Nokia’s entire product portfolio has now been re-aligned towards these four groups to address the specific needs of each. The first of these segments Live, aimed at first time users whose basic need is to stay in touch with voice as the main driver, would have basic handsets low on features and price.
“These may be functional phones but the target group for these phones range from SEC C (low socio-economic class) to SEC A1 4- (very high socio-economic class) markets”, says Nokia India marketing head Devinder Kishore. The second segment Connect looks at more evolved users who look- for more functionality and features and connectivity. Accordingly, phones in this segment would have GPRS, camera and music capabilities.
The next two categories, Achieve and Explore, are aimed at high-end users and have Nokia’s top-end handsets, e.g., Achieve segment looks at enterprise users who need to have business functionalities in their phones. Nokia’s new E-series has been put under this segment with handsets having QWERTY keyboards and full Internet capabilities.
Aimed at high-end lifestyle users, Explore would be the most prominent segment for the company in the coming years. Says Nokia India multimedia business director Vineet Taneja, “This segment would see the most vibrant growth in the coming year. It will look at five different areas-applications, imaging, mobile, TV, music and gaming. We are fast developing (the ecosystem to support these areas.”
Nokia acquired music solution and content provider LoudEye and GPS solution provider Gate5. It is all slated to launch its most high-profile handset, which boasts of having a 5 mega pixel camera and GPS capabilities apart from iPod quality music, in February.
Says Taneja, “There is increasing demand for convergence and multiple functionalities, in high-end handsets. The N-series will try to address that”. Nokia feels that the new platform strategy wherein different handsets are launched under a platform, like the N- Series, will become a status and style statement and drive numbers.
Question 1.
Identify the four market segments that Nokia plans to address as per the news report above.
Answer:
Live, Connect, Achieve and Explore.
Question 2.
What is the basis of classification of the market used by the company?
Answer:
SEC Socio-Economic Class, usage and lifestyle
Question 3.
What do you mean by realignment of product portfolio? Illustrate this from the case above.
Answer:
It means that whatever product Nokia is planning to develop now, it will be according to the needs of the consumers. The four different handsets are Live, Connect, Achieve and Explore, being planned keeping the needs of four different types of users.
Question 4.
Identify the points that can be highlighted in marketing campaigns for each segment.
Answer:
The points that can be highlighted in marketing campaigns for each segment can be
Question 5.
What are the different considerations in the mind of consumers of each segment while purchasing mobile phones as given in the above case?
Answer:
The different considerations in the mind of each segment while purchasing mobile phones are these.
1. The first of these segments Live, aimed at first time users whose basic need is to stay in touch with voice as the main driver, So, here price of the phone is the main consideration.
2. The second segment Connect looks at more evolved users who look for more functionality and features and connectivity. So, here the features of the phone as well as an economic price tag are considered.
3. The next two categories, Achieve and Explore, are aimed at high end users. So, here the uniqueness of the handset and its business functionalities are the main points considered by the consumer.
2nd PUC Business Studies Marketing Management One Mark Questions and Answers
Question 1.
What is market?
Answer:
Market is place where buyers and sellers meet to effect purchase and sales
Question 2.
Name any one element of marketing mix.
Answer:
Product mix
Question 3.
Mention one function of marketing.
Answer:
Gathering and analyzing market information
Question 4.
State a factor affecting pricing decision.
Answer:
Cost of the product
Question 5.
Name a middleman in the channel of distribution.
Answer:
Wholesaler & retailer
Question 6.
Name any one features of advertisement.
Answer:
To inform the people about the introduction of the new product/service in the market.
Question 7.
Mention any one essential of an advertisement copy.
Answer:
Attention value
Question 8.
State a feature of personnel selling.
Answer:
Informative
Question 9.
What is a brand?
Answer:
Brand is a name, letter, term, symbol, mark, or design or a combination of these, intended to identify the goods or services
Question 10.
What is a Price?
Answer:
Price is a value of product expressed in terms of money
Question 11.
State any one method of sales promotion.
Answer:
Rebate of discount or offers.
Question 12.
State any one channel of distribution?
Answer:
Retailer or wholesaler
Question 13.
Mention any one objective of advertising?
Answer:
To create demand
Question 14.
Give an example for quantity gift?
Answer:
Pepsodent Tooth Paste – Buy 250 grams and get 100 grams FREE!!!
Question 15.
What is product?
Answer:
A product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or a need.
Question 16.
State any one of the element of product.
Answer:
Brand
Question 17.
State any one of the element of promotion.
Answer:
Publicity
Question 18.
State any one of the objectives of the advertising.
Answer:
Creation of monopoly.
Question 19.
State any one of the advantage of advertising.
Answer:
Advertising helps to maintain steady and regular demand for the product or service of a concern.
Question 20.
State any one of the qualities of a successful salesman,
Answer:
Physical Qualities.
Question 21.
State any one of the objectives of sales promotion.
Answer:
To attract the. potential customers.
2nd PUC Business Studies Marketing Management Two Marks Questions and Answers
Question 1.
What is marketing?
Answer:
It is human activity directed at satisfying the needs and wants through exchange process.
Question 2.
Name any two elements of marketing mix.
Answer:
Product mix, price mix
Question 3.
What is branding?
Answer:
Banding is a distinctive processing of assigning as brand by whicha product can be identifies and remembered easily by the customer.
Question 4.
State the meaning of grading.
Answer:
Grading is the process of sorting out individual unit of a product in to well defined classes that possess similar characteristics of size & quality.
Question 5.
What is packing?
Answer:
It refers to placing product in suitable packages for safe & easy, handling
Question 6.
What do you mean by packaging?
Answer:
It involves designing & producing such appropriate packages for each unit of the product as well as for the bulk unit of the product.
Question 7.
What is warranty?
Answer:
It is a promise made by the producer that any repair, exchange or to replace the product if any manufacturing defect is found in the product with in mentioned time period from the date of purchase.
Question 8.
What is guaranty?
Answer:
It is a guaranty given by the marketer that the quality, durability of a product is good and free from any manufacturing defects and that the product will be replaced/ repaired at free of cost.
Question 9.
What do you mean by labeling?
Answer:
It refers to designing and affixing appropriate label to a product or its container.
Question 10.
Give the meaning of product.
Answer:
A product is bundle of utilities consisting of various product features and accompanying sendees.
Question 11.
What is pricing?
Answer:
It is process of fixing or determining reasonable price to the product or service.
Question 12.
Give the meaning of publicity.
Answer:
Publicity is used to promote different brands, product, persons, places, ideas and activities.
Question 13.
What is advertising?
Answer:
Any paid from of non personal presentation & promotion of ideas, goods or services by an identified sponsor.
Question 14.
What do you mean by sales promotion?
Answer:
It refers to all those activities designed to boost the sales of a product or services.
Question 15.
What do you mean by personnel selling?
Answer:
Personal selling is also known as salesmanship. It is an art of making prospective buyers to buy the product or service.
Question 16.
What do you mean by advertisement copy?
Answer:
The advertising message is known as advertisement copy.
Advertisement copy is taken as the life or the physical form to the idea of advertisement.
Question 17.
Write any two differences between advertising & personnel selling.
Answer:
| SL.No | Advertising | Personal Selling |
| 1. | It is impersonal in Nature | It is personal in Nature |
| 2. | It is Expensive | It is comparatively Economical |
Question 18.
Mention any two channels of distribution.
Answer:
Direct selling or channel – Selling Without Middlemen Indirect selling or channel – Selling through Middlemen
Question 19.
What is sweeps takes?
Answer:
It is a promotional tactic in which the prizes ranging from small items to bigger items or services are offered to the winner chosen through lucky draw.
Question 20.
Define marketing.
Answer:
Marketing is that phases of business activity through which human wants are satisfied by the exchange of goods and services.
Question 21.
Define market.
Answer:
Market is an area or atmosphere for a potential exchange.
Question 22.
State any two difference between marketing & selling.
Answer:
| SL. No | Marketing | Selling |
| 1. | It is Focused Towards Customer Needs | It is Product Focused |
| 2. | It is concerned with the Needs of the Customers | It is concerned with the necessities of the seller |
Question 23.
State any two functions of marketing.
Answer:
Question 24.
What is marketing mix?
Answer:
Marketing mix refers to aggregate of strategies formulated to achieve various marketing objectives.
Question 25.
State any two factors which affects pricing decision.
Answer:
1. Business Objectives: The pricing decision should always be in accordance with the business objectives like growth an expansion and customer satisfaction.
2. Cost of the product: This is the most important factor that determines the pricing decision. The price = Cost + profit. Thus the price for the product or service should cover the entire cost to the manufacturer as well as reasonable profits.
Question 26.
What do you mean by channels of distribution?
Answer:
It refers to the route or path, over which the products flow from the producer to the consumer.
Question 27.
Define promotion.
Answer:
It is a process of communication with the potential buyers involving information, persuasion & influence.
Question 28.
State any two objectives of advertising.
Answer:
To support personal selling programme.
2nd PUC Business Studies Marketing Management Four Marks Questions and Answers
Question 1.
Write any five factors affecting pricing decisions.
Answer:
The factors affecting pricing decisions can be classified into two categories as under:
Internal Factors: These are controllable factors which exist within the company’s environment. They are Business Objectives, Cost of the product, & Quality of the product.
1. Business Objectives: The pricing decision should always be in accordance with the ‘ business objectives like growth an expansion and customer satisfaction.
2. Cost of the product:- This is the most important factor that determines the pricing decision. The price = Cost + profit. Thus the price for the product or service should cover the entire cost to the manufacturer as well as reasonable profits.
3. Quality of the product: High quality products give rise to higher cost and demands for higher price. But low quality products give rise to low cost and reduces the price.
External Factors: These are the uncontrollable factors which exist outside the company’s environment. They are Elasticity of demand, Pricing policy of competitors etc
1. Elasticity of demand: A product that has inelastic demand, higher price may be fixed for that product. But if the demand for the product is elastic the price of the product must be kept flexible.
2. Pricing policy of competitors: The number of competitors and pricing strategies also will have a bearing on the pricing decisions of a concern.
3. Distribution Channels: A lengthy distribution channel demands for higher price. On the other hand a shorter distribution channel reduces the price of the product.
Question 2.
Explain briefly the channels of distribution.
Answer:
The Channels of distribution refer to the route or path, over which the products flow from the producer to the consumer. It can be classified into two main categories as under:
1. Direct Channel/Selling without middlemen: It is one of the channels of distribution under which the manufacturer sells his products directly to the ultimate consumers without the help of any middlemen. E.g Industrial goods and agricultural goods follow this channel.
2.Indirect Channels: Here the producer sells his products to the ultimate consumer through one or more middlemen. This indirect channel consists of the following distribution channels:
Question 3.
State the objectives of advertising.
Answer:
The objectives of advertising are:
Question 4.
What are the merits of advertising?
Answer:
Some of the general merits of advertising are given below:
Question 5.
Give the limitations of advertising.
Answer:
Some of the limitations of advertising are:
Question 6.
What are the arguments raised against advertising?
Answer:
The following arguments are raised against advertising:
Question 7.
What are the essentials of a good advertisement copy?
Answer:
Some the essentials of a good advertisement copy are:
Attention Value: Every advertisement copy should be designed with a high degree of attraction of the viewers. Use of catchy slogans, colorful picture, design borders etc in the ad copy will attract the attention of the viewers, towards product or service.
Memorizing value: The advertisement copy should be such that it should last for long in the minds of people. For example the advertisement for. “Washing powder Nirma” is remembered even today.
Suggestive value: The ad copy should highlight the need and necessity of the product/ service. For example, “Boost is the secret of my energy.” Suggests that boost is a healthy drink and gives good energy throughout the day.
Educational value: The ad copy should educate the customers by giving useful information about the usage of the product. For eg.advertisement for “Iodex” in TV gives the various purpose for which it can be used and how to use it.
Sentimental Value: Human behavior is affected by sentiments. Hence the ad copy should be prepared in such a way that it does not cause any damage to their sentiments.
Simplicity: The ad copy should be simple to understand and convincing to the people. Vague and confusing texts in advertisements should be avoided.
Question 8.
What are the features of Personal Selling?
Answer:
Informative: Personal selling is informative in nature. The seller or his representatives provide information about the product and its use.
Persuasive: It involves the act of persuasion by the salesmen to but products or services by a prospective buyer.
Demonstrative: The salesmanship allows for demonstration of the working of the product in the presence of the customer.
Creative: Personal selling is creative in nature. The salesman should be creative in increasing the demand for the product or service.
Face to face contact: Personal selling involves direct face to face contact between the buyers and sellers and influence better sales.
Flexibility: Personal selling is highly flexible in nature. The salesman can adjust their way of approach and attitudes according to the customers.
Question 9.
What are the objects of Sales Promotion?
Answer:
Some of the objects of sale promotion are:
Question 10.
Briefly explain any 5 sales promotion methods.
Answer:
Some of the commonly used sales promotion methods are as follows:
(a) Rebate/Discount: Rebate refers to discount. Many producers offer products at special prices in order to clear their excess stock.
(b) Refunds: Producers may offer to refund a part of price paid by customer. For this the customers are required to send to the producer some proof of purchase like duly filled in refund offer card or wrapper etc.
(c) Product Complement: Producers offer another product at free of cost upon purchase of the main product kept for sale.
(d) Quantity Gift: Under this sales promotion method, the producers offer extra quantity of the same product/service to the buyers upon purchase.
(e) Instant Draws and Assured Gifts: Under this method producers try to win customers by offering assured prizes on purchase of their particular product or on minimum purchase of their range of products.
2nd PUC Business Studies Marketing Management Eight Marks Questions and Answers
Question 1.
What do you mean by Marketing Mix? Explain briefly the elements of marketing mix. ,
Answer:
Marketing Mix is the combination of four inputs that revolve around the consumer satisfaction as the focal point. These.four elements are product, price, promotion and the place, known as 4 p’s of marketing mix.
Product Mix: Product is one of the main elements of the marketing mix. It occupies a dominant position. A product refers to anything that satisfies the needs of the consumers.
It may be a good, a service or an idea. The product mix has the following elements-
Price Mix: Price represents the value of a product expressed in terms of money. The actual profits accrue to the producer/seller only through the price. The price mix is concerned with fixing a reasonable price to the product / service that covers the cost and distribution expenses as well gets reasonable profits to the manufacturer. The elements of Price Mix are-
Promotion Mix: The promotion mix mainly deals with informing about company’s products or services to the potential consumers and stimulating them to purchase the same. The promotion mix includes the following elements:
Place Mix: Place or physical distribution mix is concerned with making available of the goods and services at right time, at right place and in right quantity. It enables for the smooth flow of goods & services from the producers to consumers. It creates place, time and possession utilities. The place mix includes the following elements:
Question 2.
What are the qualities of a successful salesman?
Answer:
The basic qualities which every salesman should possess in order to be a successful salesman
are:
(a) Good health and appearance: The salesman should have good health. There can be sound mind only in a sound body and health gives energy to work hard. Good appearance includes pleasant facial expressions, smart dress, personal cleanliness, good habits etc. which attracts the attention of customers towards the salesman.
(b) Good Posture: Good posture means upright bearing and carriage. A salesman should have a good posture which ensures confidence and commands respect from the customers.
(c) Voice and Conversational habits: A salesman should modulate his voice to be natural so as to attract the attention of customers.
(d) Cheerfulness: A salesman should possess a smiling face to attract all types of customers to him.
(e) Initiative: A salesman’s job needs considerable amount if initiative unlike, other jobs. It means an ability to work without continuous direction.
(f) Intelligence and imagination: Intelligence means quickness in understanding, better selling methods. Salesman should have imagination to look at things from the consumer’s point of view.
(g) Presence of mind:Presence of mind is the quickness in grasping the situation and handling it according to the needs of the time.
(h) Sharp memory: A good salesman should possess sharp memory which helps to recognize his customers and remember their requirements.
(i) Sociability: A salesman should have a liking for people to mix with them.
(j) Courtesy with good manners: He should be courteous in his behavior with all customers and especially with women customers.
(k) Honesty and Loyalty: A salesman should be honest in making representation about the products to the customers. He must be loyal to his employer.
Question 3.
Bring out the merits and demerits of advertising.
Answer:
Some of the general merits of advertising are given below:
Some of the limitations of advertising are:
Question 4.
Briefly explain the methods of sales promotion.
Answer:
Some of the commonly used sales promotion methods are as follows:
Rebate/Discount: Rebate refers to discount. Many producers offer products at special prices in order to clear their excess stock.
Refunds: Producers may offer to refund a part of price paid by customer. For this the customers are required to send to the producer some proof of purchase like duly filled in refund offer card or wrapper etc.
Product Complement: Producers offer another product at free of cost upon purchase of the main product kept for sale. ,
Quantity Gift: Under this sales promotion method, the producers offer extra quantity of the same product/service to the buyers upon purchase.
Instant Draws and Assured Gifts: Under this method producers try to woo customers by offering assured prizes on purchase of their particular product or on minimum purchase of their range of products.
Lucky Draw: Under this method, the producers/retailers offer many gifts that may have very high for too low value purchase.
Usable Benefit: Under this method the customers are offered some benefit on every purchase to be used in the subsequent purchase with the same seller.
Full finance at lower rates: Many marketers of consumer durables such as Electronic goods, Automobiles etc., offer easy financing schemes at lower rates.
Free samples: When a new product of lesser economic value is launched, the producers offer free sample of such products to the visiting customers to the visiting customers at noted outlets.
Sweepstakes and Contests: Sweepstakes is a promotional tactic in which the prizes ranging from small items to bigger items or services are offered to the winners chosen through lucky draw. Contests are the tests of skills or talent conducted among the visitors to the shops by the sponsor. The tests may vary as per the age group.
2nd PUC Business Studies Marketing Management Five Marks Questions and Answers
Question 1.
As an advertiser, what essentials do you expect in a good advertisement copy?
Answer:
Some the essentials of a good advertisement copy are:
Attention Value: Every advertisement copy should be designed eith a high degree of attraction of the viewers. Use of catchy slogans, colorful picture, design borders etc in the ad copy will attract the attention of the viewers, towards product or service.
Memorizing value: The advertisement copy should be such that it should last for long in the minds of people. For example the advertisement for. “Washing powder Nirma” is remembered even today.
Suggestive value: The ad copy should highlight the need and necessity of the product/ service. For example, “Boost is the secret of my energy.” Suggests that boost is a healthy drink and gives good energy throughout the day.
Educational value: The ad copy should educate the customers by giving useful information about the usage of the product. For eg. advertisement for “Iodex” in TV gives the various purpose for which it can be used and how to use it.
Sentimental Value: Human behavior is affected by sentiments. Hence the ad copy should be prepared in such a way that it does not cause any damage to their sentiments.
Simplicity: The ad copy should be simple to understand and convincing to the people. Vague and confusing texts in advertisements should be avoided.
