Sssss - in .In .In .In .In: Marketing

Chapter : 11
Marketing
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Market - introduction
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• The word ‘Market’ has its origin in the Latin word ‘Marcatus’ which means
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merchandise or trade. Market in common language is used for a place where
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buyers and sellers meet and conduct buying and selling activities. In nowadays,
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market has replaced the ‘place’ to structure as the business can be done through
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internet.
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• In layman language, market is divided into two categories on the basis of volume
traded. These are wholesale market and retail market. The place where goods are
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traded in bulk is known as Wholesale Market and where goods are sold in small
quantities is known as Retail Market.
• In market, customer seeks satisfaction and marketer provides satisfaction.
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Marketing
• Marketing is a social process whereby people exchange goods and services against
consideration. Anything for which customers are ready to pay can be marketed. It
can be Physical Product, Services, Person, Place visit, Events etc.
• In simple words, it is the process of distribution of goods and services by marketer
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which are needed and desired by the customers. Its main features are:
(a) Need and Want : The focus of the marketing process is satisfaction of various
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needs and wants of potential customers. In marketing various needs and wants
are identifies and thereafter product is developed.
(b) Creating a market offering : Market offering refers to deciding size, quality
etc. with brand name, packaging, price so that potential customers can be
influenced and perused to buy the product. In marketing, after developing the
product communication is made with customers.
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(c) Customer value : A product is purchased by customer only when utility from
such product exceeds money value spend on such product. Role of marketer
is to provide highest utility against money spend by customers.
(d) Exchange mechanism : The process of marketing involves exchange between
buyers and sellers against consideration. In nowadays, consideration is money
for marketer and goods or services for customers.
Marketing Management
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• Marketing management refers to the process of management of marketing activities
i.e., planning, organising, staffing, directing and controlling.
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• This includes forming market strategies, arranging marketing material and staff,
motivating and leading the marketing team through effective communication and
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supervising them in the light of organisational objectives.
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• Process of marketing management includes :
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(a) Selection of target market.
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(b) Creating market and thereafter attracting more customers in target market.
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(c) Creating superior values by providing higher utilities than rival firms.
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Marketing Management Philosophies

1. Production concept
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• Starting point : Factory.

• Main Focus : Quantity of product.
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• Method : Availability and affordability of product.

• Aim : Profit through volume of production.
2. Product concept
• Main Focus : Quality, performance, features of product.
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• Method : Product improvement.

• Aim : Profit through product quality.
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3. Selling concept
• Main Focus : Existing product.
• Method : Selling and promotion.
• Aim : Profit through sales volume.
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4. Marketing concept
• Starting point : Market
• Main Focus : Customers’ needs
• Method : Integrated marketing
• Aim : Profit through customer satisfaction
5. Social concept
• Starting point : Market, Society
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• Main focus : Customers’ needs and society well being
• Method : Integrated marketing
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• Aim : Profit through customer satisfaction and social welfare
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Marketing vs. Selling
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Basis Selling Marketing
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Meaning Selling is concerned with Marketing is a wider term

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promoting and transferring consisting of number of activities
ownership of goods from seller to such as identification of
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the buyer. customers’ needs, developing the

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product to satisfy these needs,

fixing prices and persuading the
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potential buyers to buy the same.

Start and End of Selling starts with the product and Starts with identification of needs
activities ends when it is sold. and remains continue with after
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sales services.
Strategies Promotion and only promotion Marketing uses integrated
marketing effor ts involving
strategies for product, promotion,
pricing and physical distribution.
Priority Product is given priority. Customer is treated as a king.
Aim/Objective Selling aims at profits through Marketing aims at profits through
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sales volume. customer satisfaction.

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Focus Bending the customer according To develop the product as per the
to the product. customer needs.
Functions of Marketing
1. Marketing Research: It includes gathering information about market i.e. what
the customers want to buy, place from which they prefer to buy, quantity purchased
by customers, additions which the customers want in existing products etc. and
thereafter such information is analysed.
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2. Marketing Planning : This includes “How to capture the target customers”.

Marketing strategies are formed for pricing, promotions. distributions etc. for
increasing (for existing product) or creating (for new product) the market share.
3. Product designing and Development : This includes designing of product as
per customers’ requirements or enhancing the existing model to increase its utility
for customers. Main focus is put on packaging, quality, model etc. so that customers
needs can be satisfied.
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4. Standardisation and Grading : Standardisation refers to the process of
producing uniform goods or services so that same level of utility can be provided
to all customers. Grading refers to the process of dividing the goods and services
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into different groups so that customer can select the product according to his/her
requirements.
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5. Packaging and Labelling : Packaging refers to the act of designing and
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producing the container or wrapper of a product. The objective of packaging is to
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protect the product for distribution, store, usage and sell. Labelling means putting
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identification marks on the package. The purpose of labelling is to give the consumer
information about the product he is buying and what it will do for him.
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6. Branding : Brand is a name, term, design, symbol, or other feature that

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distinguishes an organisational product from its competitors before customers. For

example: Various Brands are Bata, Red-tape, Puma, Adidas, Nike etc..
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7. Pricing of Products : This includes deciding the price of product by considering

various factors like product cost, utility of product, pricing objectives, extent of
competition in market etc.
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8. Customer support services : This function of marketing includes after sales

services which helps in increasing brand loyalty and furtherance of business.
9. Promotion : Promotion is simply informing the target audience about
organisation’s product and influence them to buy the same on merit basis. Merit
basis means the advantages which the product offers.
10. Physical distribution : Physical distribution is concerned with availability of
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product at right place so that customers can buy it. This function adds ‘place utility’
by moving the product in market and ‘time utility’ by making the goods available
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as per customers’ demand.

11. Transportation : It is the process of movement of goods from one place to another
through various modes like air, land (rail and road) and water. Goods are generally
produced in factories located in specific areas but consumed by wider region.
Therefore, these goods need to made available in different markets so that buyers
can easily buy it.

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12. Storage and Warehousing: It is the process of storing goods at specific locations
with the objective to ensure availability at right time. Need for warehousing arises
because there may be timing difference between timing of production and timing
of consumption.
Marketing Mix
• Marketing mix is the set of marketing tools which the organisation uses to pursue
its marketing objectives in the target market.
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• The variables of Marketing mix have been classified into four categories called the
“Four P’s of Marketing mix”, i.e. Product, Price, Place and Promotion.
• Let us discuss the four elements of marketing mix in detail.
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PRODUCT MIX
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• In marketing ‘product’ means anything that can be offered to customers that might
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satisfy want or need.
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• Product mix is the combination of products offered by organisation in market. For
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example : Hindustan Unilever ltd. offers a range of bathing soaps like Lux, Lifebuoy,
Rexona, Liril etc. which indicates its product mix.
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• In respect of product, marketer needs to take decisions in respect of branding,

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labelling and packaging.
Branding
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Concept
(a) Brand is a name, term, design, symbol, or other features that
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distinguishes an organisational product from its competitors. For example:

Various Brands are Bata, Red-tape, Puma, Adidas, Nike etc. Brand has two parts
(i) Brand name (ii) Brand mark
(b) Brand name : Verbal component of brand is known as brand name i.e.
that part of brand which can be spoken. Brand name not only identifies the
product but also its manufacturer. For example : Apple, Amul etc.
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(c) Brand Mark : Symbols or images used to identify a brand is known as

brand mark. For example: Company’s Logo, design or picture etc..
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(d) That part of brand which is given legal protection to avoid its unauthorise use is
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known as trade mark. Word ‘TM’ is attached with a brand which are under the
process of registration whereas ‘R’ indicates trademark which is already registered.
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Trademark :
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Registered Trademark :
Characteristics of a Good Brand Name

(a) Brand name should be short, easy to pronounce, recognise and remember. For
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example: Paytm, Ola etc.

(b) Brand name should be unique and distinctive. For example: Titan, Syska etc.
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(c) Brand name should be suggestive i.e. it must suggest the utility of the product. For
example: Bookmyshow.com, Makemytrip.com
(d) It should be capable of being registered and protected legally. For example: Brand
name with suffix or Prefix ‘India’ cannot be registered.
(e) Chosen name should have staying power i.e. it should not get out of date. For
example: USHA.

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(f) The brand name should be adaptable to packing or labelling requirements, to

different advertising media and to different languages.
(g) The brand name should be flexible to accommodate new products of the
organisation. For example: Kurkure, Samsung etc.
Advantages of Branding
(a) Branding helps in product differentiation. By spending money on promotional
activities brand name can be created which further helps in differentiating the
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product with products of rival firms.
(b) Once the brand name gets established, it further helps in launching new product
with minimum platform. For example: Syska created the brand in LED lights and
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now dealing in other electronic items.
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(c) Branding helps in charging higher prices. Customers pay for status and branding
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encash the same. For example: Customers are ready to pay higher amount for
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smartphones of Apple or Samsung but not for other brands like Micromax, Lava
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etc.
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(d) Branding provides feel of qualitative product. At the same price, one may be
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ready to buy Shoes of ‘Puma’ instead of ‘Action’ just because of the fact former
has more brand value than latter.
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(e) Once the brand name or mark is start recognising by customers, it further increases
the weightage of promotional activities. For example: For customers, discount
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offer of 20% by Big Bazaar has more credibility than 20% discount by local
shopkeeper.
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Packaging
Concept
(a) Packaging refers to the act of designing and producing the container or wrapper
of a product.
(b) It is more than the pretty face of product.
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(c) The objective of packaging is to protect the product for distribution, store, usage
and sell.
(d) It is considered as ‘silent salesman’.
Levels of Packaging
(a) Primary Package : Product’s immediate container is known as primary package.
It may be kept till consumer is ready to use the product as in case of plastic packet
for socks. However, it may be kept throughout the whole life of the product (For
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Example: Tea bags, Toothpaste tube).
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(b) Secondary Package: It refers to additional layers of protection that are kept till
the product is ready to use. For Example: Mobile phones usually comes in a card
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board box.
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(c) Transportation package: It refers to further packaging components

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necessary for storage and transportation.

Functions of Packaging : Packaging often serves the given basic
functions:
(a) Identification of the Product:
✓ Proper packaging helps in identification of the products. Whenever a person sees
a package, he can immediately recall the concerned product. Manufacturers choose
attractive packages so that the users are able to remember and identify their product.
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✓ For example : Cadbury Dairy Milk in purple colour, or Fogg deodorants spray can
be easily identified.
(b) Product Protection
✓ The basic function of the package is to protect the product from breakage or
damage due to mishandling, extremes of temperature, pilferage, spoilage etc.
✓ For example : Thermocol package for LED TV, Nitrogen filled package for snacks,
air-tight container for Horlicks etc.
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(c) Facilitating Use of the Product
✓ Packaged goods should be easy to handle, open and use. The information related
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to this can also be mentioned on the package to ensure safety while dealing with
the product.
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✓ For example : “Glass, Handle with care”, or Dettol liquid comes in a package that
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facilitates easy pressing of the top portion by thumb and ultimate release of the
liquid.
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(d) Product Promotion
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✓ Packaging helps in pushing up the sales promotion as it beautifies the product so

as to attract the customers. The use of a picture, graphics, and colour always seeks
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attention towards the products. A good packaging catches most of the eye-balls in
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a self-service outlet.
✓ For example : Attractive package of ‘Kinder joy chocolates’ attracts kids.
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Importance of Packaging
Packaging has become one of the essential services of modern marketing because of
the following reasons :
(a) Rising Standards of Health and Sanitation: The standard of living is
increasing all over the world and thus there is a greater concern for health and
lifestyle. The tendency of people has shifted towards buying packed goods as there
are less chances of adulteration.
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(b) Self Service Outlets: The self-service outlets are gaining much popularity in
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present day scenario. The packaging acts as a silent salesman of the manufacturer,
particularly at a place where there is widespread use of self-service, automatic
vending and other self-selection methods of retail selling.
(c) Innovational Opportunity: Lots of new innovation have come in respect of
packaging. In many cases, innovative packaging (small pouches and sachets) has
enabled the firms to expand their market to rural areas.

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(d) Product Differentiation: Packaging helps in creating product differentiation.

Through packaging, the customers can easily differentiate between two alike
products. The differentiation is made on the basis of size, shape, colour and material.
The customers make their perception regarding the quality of the product through
product differentiation.
Labelling
Concept
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(a) Labelling means putting identification marks on the package. It is that part of a
product which contains information about the producer, brand, grade and other
information about the product.
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(b) The purpose of labelling is to give the information about the product to
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customers.
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(c) A label may be a part of package or it may be attached directly to the product.
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Functions of Labelling
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(a) Describe the Product and Specify its Contents:
✓ Label contains the essential information about the product.
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✓ The labels should contain information about the product, manufacturer, price, date
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of manufacturer, date of expiry and must describe its usage, cautions in use etc.
✓ For example : The package of Maggi describes the procedure of cooking it in 2
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minutes, or pharmaceutical tablets specifying number of intakes as per different

age group, etc.
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(b) Helps in Identification of the Product or Brand

✓ Labelling gives a unique identity to the product. It makes it easier to identify the
product with a distinct label.
✓ For example : It’s easy to identify biscuits containing Choco-chips in it with the
help of label.
(c) Helps in Grading of Products
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✓ Labelling helps in grading the products into different categories. Grading helps to
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indicate different features or quality of the product.

✓ For example : Fair & Handsome cream for men and Fair & Lovely cream for
women.
(d) Helps in Promotion of Products
✓ Labelling helps as an effective tool in sales promotional schemes. A good label
can attract customers and thus helps in promoting the product.
✓ For example : The label on the package of a Kurkure mentions ‘20% Extra Free’.
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(e) Providing Information Required by Law

✓ Labelling performs the function of providing information required by law. It must
incorporate the customers’ right to be informed and so must incorporate the
necessary information.
✓ For example : The warning on the package of Medicine, ‘Not for intake of children
below 5 years of age’.
Price Mix
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• Price is the amount charged for product. The price of a product is mix result of:
(a) Utility to the consumer,
(b) Its expected demand,
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(c) Its quality,
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(d) The competition it faces,
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(e) The desired profit etc..
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• Generally, following rules are followed while deciding the prices of products:
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➣ Products which provide higher utility are priced higher.
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➣ High pre-booking of a product pushes the market price.

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➣ Qualitative products are highly priced due to involvement of huge research and
development cost.
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➣ In case of intense competition prices are kept lower.

• Therefore, price mix is deciding the price of a product by giving proper
ratio to its expected utility, demand, quality, competition, profits and other
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factors as required to be consider. (Example of other factors can be government

intervention in the form of price ceiling, pricing of complementary goods etc.).
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• While pricing a new product, at least three objectives must be kept in mind:
(a) Making the product acceptable to the customers.
(b) Producing a reasonable margin over cost.
(c) Achieving a market that helps in developing market share.

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Factors affecting Price Determination

1. Product cost
(a) Product cost includes cost of production/ purchase price and operating expenses
like selling and distribution expenses and office and administrative expenses. Target
of organisation remains to sell the product above the cost of production/ purchase
price with the objective to cover operating expenses and desired profits.
(b) For example: Grooming limited deals in electronic appliance which costs ` 10,000
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per unit and its operating expenses and desired profits are ` 50,000 and ` 25,000
per month respectively, then organisation can charge minimum price above `
10,000 from which it can cover ` 75000 per month (say ` 15000 if expected sales
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are 15 units per month).
(c) Cost of production/ purchase price is ‘units based cost’ or ‘variable cost’ whereas
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operating expenses are considered as ‘period cost’ or ‘fixed cost’. For example: If
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product costs ` 15 per unit and the organisation has to buy 100 units then it will
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spend 1500 (100 × 15) i.e. on the basis of units purchased whereas sales staff
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salary, office rental i.e. operating expenses will be on monthly basis.
(d) However, sometimes cost can be both fixed and variable known as semi variable
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cost like sales staff salary of ` 25,000 per month plus 2 percent commission on
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sales.
(e) Thus, the product cost sets the lower limit for price i.e., the organisation
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will not charge the price below the variable cost. But, its objective will
always be to recover operating expenses and desired profits.
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2. The utility and demand

(a) Utility means ‘satisfaction from usage of product’. Willingness to pay is directly linked
with satisfaction from usage of product.
(b) Higher the satisfaction level, higher will be the customers’ willingness to pay and
lower the satisfaction level, lower will be the customers’ willingness to pay.
(c) For example: Customers want to pay less for local restaurants than Five star rated
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restaurants. This can be due to interiors of restaurants, food quality, service etc..
(d) Thus, utility helps in deciding the maximum price that can be charged
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from customers. However, due to law of demand, quantity demanded

for the product can be lower at higher prices and higher at lower prices.
(e) In general, utility not helps in deciding the minimum price of the product because
of two reasons
(a) Firm will not sell the product below cost and
(b) In marketing concept, products are developed after identifying customers’ needs.

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3. Extent of competition in the market

(a) Extent of competition helps in determining whether movement of price will be towards
upper limit or lower limit. Higher competition slips the price towards lower limit
whereas lower competition provides freedom to set the price towards upper limit.
(b) Competition can be from perfect substitute goods like competition of Pepsi with
Coke- Cola or it can be with substitute goods like competition of Pepsi with other
category beverages like Real fruit juice, Orange Pulp etc.
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(c) Organisations put prime focus on competition with perfect substitute goods whereas
in case of new products, competition with substitute goods need to be consider.
For example: In India, initially Dabur’s ‘Real’ packaged fruit juices brand was facing
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competition with packaged beverages (substitute goods) like Fanta, Mirinda, Slice
etc. but now it is facing competition with (perfect substitute goods) Tropicana,
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Patanjali fruit juices etc..
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4. Government and legal regulations
(a) In case of social goods i.e. goods which are of social importance, government or
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approved authority can intervene to regulate their prices through price ceiling. Price
ceiling is the maximum price decided by the government or approved authority
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which can be charged for goods.

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(b) Generally, government do so to protect the interest of public from unfair trade
practices and controlling monopolist to charge higher prices for essential goods.
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(c) For example: The National Pharmaceutical Pricing Authority has capped the prices
of 51 essential formulations, including those used for the treatment of cancer, pain,
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heart conditions and skin problems. The prices have been slashed in the range of
6 to 53 per cent.
(d) In case of government intervention or legal regulations, freedom to decide the
price gets considerably reduced and also it puts the upper limit below
the upper limit decided by utility level.
5. Pricing objectives
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Pricing objectives are the criteria which the organisation considers while deciding the
price of product. Some of them are listed below :
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(a) Profit maximisation : If purpose is to maximise profits in short run, higher prices
will be charged from beginning, (For example: Starbucks, Volkswagen). Whereas,
if purpose is to maximise profits in long run, lower prices can be charged in
beginning (For example: Maruti Suzuki).
(b) Market capture : Second objective can be market capture. If the organisation
wants to capture the market, it may offer its products at lower prices so that large
number of customers can afford to buy it. For example: Micromax, Flipkart.

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(c) Fighting competition : Third objective can be fighting competition. If the firm
wants to give tough fight to its competitors then it will opt for pricing policy with
nominal/normal profits only. For example: Reliance Jio.
(d) Product leadership : Next objective can be attainment of product leadership.
For this organisation needs to spend huge amount on research and development
and for the recovery of such R&D cost it will opt for higher pricing. For example:
Apple, Fed-ex.
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6. Expenditure on other elements of marketing-mix
(a) Apart from factors discussed above, price of product is affected by expenditure on
other elements of marketing mix i.e. product mix, physical mix and promotional
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mix.
(b) For example: An attractive packaging can cost higher, making product available at
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door-step can increase the distribution cost, intensive advertisement campaign will
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increase the promotion cost. All these will ultimately affect the product pricing.
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Place Mix / Physical Distribution Mix

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• Physical distribution is concerned with availability of product at right place so that
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customers can buy it.

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• Physical distribution mix is concerned with selection and arrangement of activities

like transportation, warehousing etc. so that products can be made available to
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customers either directly or through intermediaries.

• This function adds ‘place utility’ by moving the product in the market and ‘time
utility’ by making the goods available as per customers’ demand.
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• Twin objectives of place mix are:

(a) Physical movement of goods from place of production to place of consumption.
(b) Involvement of intermediaries in distribution process i.e. channel of distribution.
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Components of Physical distribution

Main components of physical distribution mix are discussed below :
1. Order- processing
(a) It refers to the process of separating, packaging and shipping the product to
customers in right quantity and at right place.
(b) Once the product is ordered by customer it need to be separated from the bulk
goods available and earmarked for such customer, thereafter such goods are packed
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and shipped to customers.
(c) Strong business policies are required to handle order processing otherwise business
may face customer dissatisfaction. For example: E-commerce websites like Amazon,
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Flipkart, Paytm etc. update their customers at every point regarding goods
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packaged, goods shipped, goods out for delivery etc.
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2. Transportation
(a) It is the process of movement of goods from one place to another through various
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modes like air, land (rail and road) and water.

(b) This component helps in adding place utility by moving the goods from place of
production to the place of consumption.
(c) Goods are generally produced in factories located in specific areas but are consumed
by wider region. Therefore, these goods needs to be made available in different
markets so that buyers can easily buy it. For example : Maggi is manufactured only

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at five locations but available at all locations of India. So, transportation plays a
critical role in physical distribution.
2. Warehousing
(a) It is the process of storing goods at specific locations with the objective to ensure
availability at right time.
(b) This component helps in adding time utility by making the goods available at the
time desired by the customers. Bulky as well as perishable products can be stored
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near market whereas products which requires long storage can be stored near
production sites.
(c) Need for warehousing arises because there may be timing difference between
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the timing of production and the timing of consumption. Also, production speed
cannot be same as consumption speed. For example : On Dussehra, ‘Ravan
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Putala’ are highly demanded but all these cannot be produced in a single day,
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so production of such goods start much before and stored in warehouses after
production.
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(d) Generally, firms with higher number of warehouses can serve their customers better
by reducing the delivery time. For example: Amazon has large number of
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warehouses than Paytm in India, this provides an edge to Amazon in servicing its
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customers. But at the same time, costs of maintaining such large number of
warehouses are too high. Thus, a balance is required to be maintained between
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number of warehouses required and company’s capacity to spend.

3. Inventory control
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(a) It is the process of maintaining sufficient stock with the objectives to fulfill customers’
demand on time and minimising holding cost of inventory.
(b) Holding cost of inventory include warehousing cost, manufacturing / procurement
cost and interest cost of capital tied up.
(c) Higher the level of inventory, higher will be the level of service to customers but
the holding cost of inventory will also be high and vice- versa.
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(d) Apart from holding cost and level of service, inventory level depends upon following
two factors:
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➣ Extent of accuracy in sales forecast: Degree of accuracy about sales forecast

can minimise inventory levels.
➣ Extent of production/procurement time: Long production/procurement time,
increases the requirement of maintaining higher inventories and vice- versa.
However, Just-in time- approach has drastically reduced the requirement of
maintaining higher inventories.

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Just in time (JIT)

JIT means the purchase of goods such that delivery immediately precede their use. This
will ensure that stocks are as low as possible. JIT purchasing is implemented by developing
closer relationship with supplier so that the company and supplier work together
cooperatively. In JIT purchasing arrangement is made with supplier for more frequent
deliveries of smaller quantities of materials so that each delivery is just sufficient to meet
immediate requirements.
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Channels of Distribution
Meaning
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Channel of distribution is chain of intermediaries through which good passes till it
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reaches customers. It includes agency, wholesalers, retailers etc..
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Types of Channels of Distribution

Broadly, channel of distribution is divided into two categories :
1. Direct channel of distribution
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(a) In this organisation sells products directly to the customers without involving any
intermediary.
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(b) This is also called zero level channel.

(c) For example : KFC, Subway selling products through own retail outlets.

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2. Indirect channel of distribution

(a) In this, organisation sells products to customers by involving intermediaries. In other
word, intermediaries are involved for distributing the product to end customers.
(b) Various types of indirect channel are:
✓ One-level Channel : In this method of distribution, one intermediary (known
as retailer) is used between manufacturer and customers. For example:
Smartphones exclusively available on Flipkart.
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✓ Two- Level Channel : In this method of distribution, two intermediaries
(known as wholesaler and retailer) are used between manufacturer and
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customers. For example: Books distribution system.
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✓ Three- Level Channel : In this method of distribution, three intermediaries

(known as Agency, wholesaler and retailer) are used between manufacturer and
customers. For example: Distribution of confectionary items.
O
N

Marketing 303
Functions of Channels of Distribution (For Reference Only)

1. Sorting: The channels of distribution procure goods from variety of sources. For
example: Retailer of confectionary items procure large quantity of different items from
various locations.
2. Accumulation: They accumulate goods into larger homogenous stocks which helps
in maintaining continuous flow of supply. For example: After sorting, retailer will
form the homogeneous groups on the basis of various categories like biscuits,
ED
beverages, chips etc..
3. Allocation: It involves breaking homogenous stock into smaller marketable lots.
For example: Small quantities of goods available are displayed in front to aware the
H
customers about availability of goods.
S
4. Assorting: It involves delivering the goods in combinations desired by customers.
n
For example: A customer may ask for 2 packets of biscuits, 1 Pepsi, 5 Maggi etc..
LI
PU .i
5. Product promotion: Middleman participates in product promotion activities
E rs
through demonstrations, special displays etc..

B
6. Negotiation: Intermediaries acts as a link between consumers and manufacturers.
B a
They negotiate the price, quality, guarantee and other related matters with
manufacturers and customers.
ol
7. Risk taking: Intermediaries buy goods from manufacturer and thereby assumes
TO ch
risk on account of price and demand fluctuations, spoilage etc.
Factors determining Choice of Channels of Distribution

T es
The choice of channels depends on various factors which are discussed as below:
1. Product related factors : While deciding the channel of distribution, product
related factors like nature of product, perishability, unit value and complexity also
plays crucial role :
(a) Nature of Product : Industrial products are made to order and purchased by
few customers therefore, requires shorter channels. On the other hand, consumer
O
products are frequently bought products and purchased by large number of

customers therefore, requires longer channel.
N
(b) Perishable vs. Non-perishable products : Perishable products like fruits,

vegetables and dairy products require shorter channels. On the other hand, non-
perishable products like toiletry products can be distributed through longer
channels.
(c) Unit value of the product : In case of costly goods like Gold jewellery, shorter
channel should be used. On the other hand, for low priced goods like
confectionary items longer channel can be used.

304 : XII
(d) Product complexity : Products requiring technical knowledge, expert advice

or counselling at the point of sales can be better sold through shorter channel.
For example: Cars. On the other hand, in case there is no or very less need for
counselling or expert advice, longer channel can be used.
2. Company related factors: Size of channel of distribution depends upon following
two factors related to company:
(a) Financial strength of the company : Financially strong companies can open
ED
its own retail outlets. For example: Max Lifestyle. On the other hand, financially
weak companies needs to use intermediaries for selling products.
H
S
n
(b) Core- competency : If the management wants to focus on core competency
LI
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of manufacturing then it may opt for longer channel. For example: Apollo
tyres.
E rs
B
B a
ol
TO ch
T es
(c) Degree of control : If the management needs control on channel members

to avoid adulteration or misuse of product, shorter channels are used. For
example: Dairy products, Cars etc. On the other hand, products which needs
lesser control, attracts longer channel.
3. Competitive factors
(a) In most of the cases, channel of distribution selected by competitors is likely to
be adopted by organisation. For example: Channel of distribution of both Pepsi
O
and Coke is same.

N
(b) However, organisation may use different channel of distribution as its distribution
policy. For example: Amway sell products through chain marketing.
4. Environmental factors
(a) Environmental factors include economic environment and legal environment
of business. For example : Pistol cannot be sold through longer channels due
to legal restrictions. In India, supply of goods through Drone is not allowed
except in certain cases.

Marketing 305
(b) Similarly, in depressed economic conditions organisation will prefer to use shorter
channel to cut down the selling and distribution cost.
5. Market Related Factors
(a) Size of the market : In case, size of the market is small (i.e. few customers, as in
case of industrial products) shorter channels can be used. However, in case of large
market size (i.e. large number of customers, as in case of consumer goods) longer
channel can be used.
ED
(b) Geographical concentration of potential buyers : If customers are located
in limited boundaries shorter channel can be used. However, if the customers are
spread in large region, longer channel can be used.
H
(c) Quantity purchased : If the size of the order is small, longer channel can be used
(For example: Maggi). But if the size of the order is large, shorter channels can be
S
n
used. (For example: Raw material)
LI
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Promotion Mix
E rs
• Promotion is simply informing the target audience about organisation’s product

B
and influence them to buy the same on merit basis.
B a
• Merit basis means the advantages which the product offers. In case of existing
ol
product, it can be on comparative basis whereas in case of new product it can be

on absolute basis.
TO ch
• For example : Promotion of detergent powder may be on comparative basis i.e.

why our product is better than others whereas promotion of new smartphone with
absolute new feature (like phone that can take the selfie in air and need not to use
T es
selfie stick) can be on the basis of such new feature.

• Promotion mix refers to selection and arrangement of various promotion tools like
advertising, personal selling, sales promotions, public relations etc.
• Twin objectives of promotion mix are :
(a) Informing potential customers about a product.
O
(b) Persuading them to buy it.

• Elements of promotion mix are:
N
(a) Advertisement
(b) Personal selling
(c) Sales Promotion
(d) Public relations
• Let us discuss all the elements of promotion mix in brief :

306 : XII
Advertisement
Meaning
Advertisement is paid source of spreading information about organisation
and its product through impersonal method. Organisations spend huge amount on
advertisement to aware the public about their products. A good advertisement campaign
enhances customers satisfaction about product and helps organisation in generating higher
revenues. Some common modes of advertisement are radio, television, newspapers,
ED
magazines, social networking websites etc.
H
S
n
LI
PU .i
E rs
B
B a
ol
TO ch
T es
Features of Advertising
1. Paid form
(a) Organisations spend huge amount on various modes of advertisement like
newspapers, television etc. for reflecting their advertisements before target
audience.
(b) Incurring expenditures to promote the product through advertisement makes it a
O
paid form.
N
2. Impersonal method of promotion

(a) Advertisement is a one-way communication i.e. organisations convey their
messages to the outside world by displaying their advertisements through various
modes.
(b) In advertisement, there is no personal interaction between buyer and seller, which
generates monologue not dialogue and makes it an impersonal method of
promotion.

Marketing 307
3. Identified sponsor
(a) Every advertisement that we see belongs to any particular organisation. Such
organisation designs advertisement and bears cost of reflecting such advertisement
before audience.
(b) In short, behind every advertisement organisation can be identified who is
undertaking entire efforts i.e. identified sponsor.
Role/ Merits of Advertising
ED
1. Mass Reach
(a) Advertisement helps in promoting the product among masses. For example: A
advertisement on Youtube or Facebook can create awareness about product across
H
the world in just few days.
S
(b) Although, it is important to decide the target geographical boundary and
n
accordingly select suitable advertisement mode. For example: For targeting ‘Delhi’
LI
PU .i
advertisement can be made live on ‘Delhi Aajtak’.
E rs
B
B a
ol
TO ch
T es
2. Enhancing customer satisfaction

(a) Advertisement introduces the product in the market and public becomes aware of
it. This avoids hesitation of buyers in buying the new product as they feel it to be
known.
(b) For example : ‘Syska’ is not an unknown brand for buyers, though it was
incorporated in 2012. Company is dealing in LED lights, Power banks, trimmers
etc. and has significant market share. Entire credit goes to their advertisements
O
strategy.
N

308 : XII
3. Expressiveness
(a) We know “What is seen is sold”. With the help of modern technology, advertisement
can be made expressive. This helps in quick recapitulation of brand by the buyers
at the time of purchases.
(b) Higher will be the expressiveness of advertisement, higher will be the impact on
buyers.
ED
H
S
n
LI
PU .i
E rs
B
B a
ol
4. Economy
(a) Advertisement is one of the economical source of promoting the product. Absolute
TO ch
amount of advertisement may be higher but when we compute the cost per
customer it comes out to be very low.
T es
(b) For example: If by running advertisement of ` 1,00,000 we can target 10,00,000

people of specific region then cost per customer comes out to be 10 paise per
customer.
Limitations of Advertising
1. Less forceful
(a) Organisation can display the advertisements on hoardings or through other modes
O
but can’t compel the public to pay attention on such advertisement. If advertisement
is highly expressive or of customers use only then customers pay attention on same.
N
(b) In advertisement, there is no personal interaction between buyer and seller, which
generates monologue not dialogue and makes it less forceful.
2. Low effectiveness
(a) Apart from less forceful, advertisement also carry the demerit of low effectiveness.
This is due to the various types of advertisement that a person across on day to
day basis.

Marketing 309
(b) For example: In a newspaper generally 15-20 advertisements are placed on different
pages. Thus, due to heavy volume of advertisement it becomes difficult to approach
target customers unless the advertisement is exceptionally influencing.
ED
H
S
n
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PU .i
E rs
B
3. Lack of feedback
B a
(a) Advertisement is done with twin objectives i.e. informing and influencing. It is
ol
successful only when it informs and influence customers to buy the product.
(b) As such there is no direct mechanism to know the success ratio of advertisement
TO ch
on these two aspects i.e. informing and influencing. Therefore, advertisement lacks
feedback procedure.
T es
4. Inflexibility
(a) Due to lack of knowledge about generic product or difficulty in understanding the
specific language, one may not get the advertisement in the same sense in which
it is communicated. For example: One may not have knowledge about mutual funds
then for him advertisements of financial assets management companies like Aditya
Birla, Reliance capital etc. are useless.
(b) Whereas, advertisement is standardised i.e. it is made in specific language (generally
O
in regional language) and promoting the product against competitive product. This
N
might create problems for individuals not having knowledge of such generic product
or their inability in understanding such language.
Objections to Advertising
1. Adds to cost
(a) Argument in favour : Huge expenditures are incurred by organisations on signing
the contract with brand ambassadors, making of advertisement and then showing
it before the public. These expenditures increase operating expenses of the

310 : XII
organisation which is passed to the customers in the form of higher prices. For
example: In beverages, Pepsi and Coke has superstars as their brand ambassadors
who charge huge amount for promoting these brands which is ultimately recovered
from customers.
(b) Argument against : However, one should note that advertisement helps in
branding which increase the demand for product. Increasing demand leads to bulk
production and the organisation gets benefits in the form of reducing cost of raw
material, specialisation etc.. Thus, reduction in cost due to bulk production
ED
compensates the advertisement cost.
2. Undermines social Values
H
(a) Argument in favour : Advertisements have increased the pace of human wants.
Advertisements of new products indicate the present life of people in such a manner
S
n
that they feel dissatisfied without using such product. For example : Advertisement
LI
of Milk powders like Bournvita, Horlicks etc. have created the image that drinking
PU .i
pure milk is not enough for children and it has unnecessarily increased the family
E rs
B
cost of living. These types of advertisements lead to refusal of customs prevailing
in society.
B a
(b) Argument against : The role of advertisement is to inform the customers about
ol
products that may help in improving their standard of living. Advertisement helps
in educating the customers and never force them to buy the product. Customers
TO ch
buy the product only when they think its utility will be higher than its price. Also, it
motives the people to earn more income to have better standard of living. For
example: Advertisement of Milk powders Bournvita, Horlicks etc. never undermines
T es
social customs rather provides an opportunity to accept better practices for healthy
lifestyle.
3. Confuses the buyers
(a) Argument in favour : Today, so many brands of generic product are advertised
through various modes and every brand claims itself to be superior in terms of
quality and services. This confuses the buyers in shopping decisions. For example:
O
Claims of ‘whiteness’ or ‘stain removing abilities’ in competing brands of detergent

powders like Tide, Ariel etc.. Another example can be of toothpaste brands like
N
Colgate, Close-Up regarding claims of ‘whiteness of tooth’ or ‘feelings of

freshness’.
(b) Argument against : Consumer being a rational human being compare various
brands of product in respect of utility offered by them with corresponding prices.
For this consumer gathers information from various sources (like internet) and takes
the decision on the basis of his/her budget and requirements. For example: If the
customers budget is 10 lakhs for buying the car then he will select the car in this

Marketing 311
budget that will mostly suit his requirement in respect of services, warranty, leg
space, version – Diesel/ Petrol / CNG, 5 seater or 7 seater etc..
4. Encourages sale of inferior goods
(a) Argument in favour : Here inferior goods refer to economic bad goods i.e.
goods which provides negative utility. Advertisement promotes sale of such goods
by presenting the facts in manipulative manner or hiding the negative parts. For
example: All of us know that beverages like coke and Pepsi are not good for health
ED
still such brands are enjoying monopoly status because of emotional
advertisements.
H
S
n
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PU .i
E rs
B
B a
ol
TO ch
(b) Argument against : No advertisement promotes sale of hazardous goods.

Products are manufactured on the basis of set norms and the necessary information
T es
is provided on packages. If some wrong information has been provided or the

organisation is not following set norms in manufacturing products then it can be
sued. Advertisements objective is only to aware the customer about particular
brand.
5. Advertisements are in bad taste

(a) Argument in favour : Sometimes advertisements cross the boundaries and directly
O
attacks culture. For example: Advertisement of many perfumes showing attraction

of women towards men or vice-versa are presented in very bad manner which are
N
not acceptable in various cultures. These advertisements are harming society

adversely.
(b) Argument against : Not all the advertisements are of bad taste. What may be
bad for one may not be bad for another. For example: Advertisements of family
planning methods may not be acceptable for some people on their cultural grounds
but it is acceptable on social grounds.

312 : XII
Personal selling
Meaning
Personal selling is face to face selling
whereby salesmen communicate with
prospective customers with the objective to
sell the product. As an element of promotion
mix, personal selling focus on involving people
ED
(known as sales force) for the purpose of making
sales. These people target prospective customers and encourage them to buy product through
their skills.
H
Personal selling involves two-way communication between buyers and sellers, hence,
it is more effective than advertisement.
S
n
Characteristics of Personal Selling
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PU .i
1. Personal form (Two-way communication)
E rs
B
(a) Personal selling involves personal interaction between buyers and sellers.
(b) This leads to two-way communication process hence, personal form.
B a
2. Development of relationship of trust

ol
(a) Buyer interacts with sales person in the sales process. This provide signals to
salesperson regarding the exact requirement of customer and if the sales person is
TO ch
able to deliver the product according to buyer’s requirement then it creates a

relationship of trust.
T es
(b) This relationship of trust helps in making further sales.

O
N
Qualities of a Good Salesman

1. Salesman must have good stamina, tolerance and a cheerful smile on his face.
He/she should possess good personality.
2. Salesman should be intelligent and mentally alert. He/she should be imaginative
and self-confident.
Marketing 313
3. Salesman should carry deep knowledge about the industry and the organisational
product. This helps in handling customers’ grievances in better way.
4. Salesman should have good communication skills to convince customers.
5. Salesman should be diplomatic and polite while dealing with customers.
6. To boost up the sales in dynamic business environment salesman should adopt
new practices for dealing with customers.
ED
Importance/ Merits of Personal Selling (For Reference)
1. Flexibility
(a) Flexibility in personal selling implies adjustments for making sales. These
H
adjustments can be in the terms of negotiation with different buyers according
to quantity purchased, special requirement of customers, method of dealing with
S
n
customers according to their age group.
LI
PU .i
(b) These helps in generating higher revenues and enhancing image of organisation.
E rs
2. Direct feedback
B
(a) Personal selling is a personal form of communication which allows two-way
B a
communication between both buyer and seller. Two-way communication

provides direct feedback about the product.
ol
(b) These feedbacks can be about quality, pricing etc. and helps in adopting better
practices.
TO ch
3. Minimum wastage:
(a) Personal selling allows the organisation to approach target customers directly at
T es
their location. For example: For selling desks, concern authorities in schools can
be directly approached. Another example can be of logistics businesses which
can directly approach manufacturing units for distributing products across the
nation.
(b) Thus, personal selling minimise selling efforts and saves cost which leads to
efficiency.
O
Sales Promotion
N
Meaning
Sales Promotion refers to short term incentives which
are planned and implemented to boost up the sales for a
specific time interval. For example: Dominos ‘Wednesday’ in
which company allows buy and get one free scheme to all its
customers on Wednesday.

314 : XII
These schemes may be designed for customers, agency, wholesalers, retailers, sales-
man etc. For example : Suppose in Diwali Samsung offered free international holiday packages
for agency, retailers etc. on achieving specific targets.
Sales promotion includes providing cash discounts, free samples, free gifts, sales contests
etc. with a purpose to supplement other promotional tools like advertisement and personal
selling.
For Reference
ED
Merits of Sales Promotion
(a) Attracts attention : Sales promotion activities attract attention of the people because
H
of the use of incentives.
S
(b) Usefulness in new product launch : Sales promotion helps in starting the sales
n
engine of new products by providing heavy discounts and other attractive schemes.
LI
PU .i
(c) Assistance to other promotional measures : Sales promotion increases worth
E rs
of other promotion tools like advertising and personal selling by offering benefits to
B
customers for limited period.
B a
Limitations of Sales Promotion

ol
(a) Reflects Crisis : If a firm frequently relies on sales promotion, it may give the
impression that it is unable to manage its sales or that there are no buyers of its
TO ch
product.
(b) Spoils product image : Use of sales promotion tools may affect the image of a
product. The buyers may form the opinion that product is overpriced and thereafter
T es
discounts are provided to get their attention.
Sales Promotion Activities/Techniques/Methods/Tools

1. Rebates
(a) Offering products at special prices to clear off excess inventory. For Example : Offer
of Maruti to sell Alto K10 car at discount of ` 50000 for a limited period. Generally,
O
rebate is provided on purchasing specific quantity and flat rate is offered that are
much below the market value.
N
(b) The main aim while providing the rebate is to clear off
old and outdated stock. For example : With the
introduction of 4G internet, all mobile phone companies
cleared off the 3G supported phones at heavy discounts.
Therefore, under rebate heavy discounts are offered with
the objective to clear off excess inventories.

Marketing 315
2. Discounts
(a) Certain percentage of price is reduced from the list price
in order to induce buyers to buy more. For example: Peter
England offered discount up to 50%.
(b) Here the purpose is not to clear off excess inventory or outdated stock rather the
purpose is to generate more revenue by reducing prices for certain period of time.
3. Refunds
ED
(a) Refunding a part of price paid by customer on producing some proof of purchase.
For example : Biscuit manufacturer offers to refund ` 5 on sending the empty cover
of the pack.
H
(b) This method is generally used for
confectionary products or products which are
S
n
generally purchased on recommendation of
LI
PU .i
labour. For example: In case of electrical wires
for getting recommendations from electricians,
E rs
B
many companies offer refund on showing
coupons inside the roll of wires.
B a
4. Product combinations:
ol
(a) Offering another product as gift along with the purchase of a product. For example:
Offering car with purchase of home in real estate project. This provides the
TO ch
psychological impact on customers as they think that they are getting two or more
items in a price of one.
(b) This method can also be used to promote other products of the organisation. For
T es
example: Offering Bournvita biscuits with ½ kg pack of Bournvita milk powder.

O
N
5. Quantity Gift:
(a) Offering extra quantity of a product in the
same amount. For example: Special Diwali
pack of 2-liter Pepsi offering extra 33.33%.
Another example can be “Take a 2 Night 3
Days package at the Hotel and get an extra
night stay at just ` 500”
316 : XII
(b) This method is generally used by toiletry product manufacturer. For example: Buy
three and get one free’ offer currently available for soaps like Lux.
6. Usable benefit:
(a) When services are offered with product purchased it is termed as usable benefit.
For example: Purchase goods worth ` 3000 and get a holiday package of ` 1000
free. Buy new Skoda car and get free 4 services.
(b) Here, you should note that if additional services are offered with services it will be
ED
a part of either product combination or quantity gift. For example: Buy Goa tour
package of 3 days and 4 nights and get stay of additional 1 day and 1 night
absolutely free is part of quantity gift.
H
7. Instant draws and assigned gifts:
S
For example : scratch a card or burst a cracker and instantly win a refrigerator, car,
n
computer with the purchase of any electronic appliance.
LI
PU .i
E rs
B
B a
ol
TO ch
8. Lucky draw:
Under this coupon is allotted against shopping of specified
T es
amount and a lucky winner is selected on random basis. For example:

Indian oil announced coupon against minimum petrol filling of ` 2000
and some lucky winners are selected to whom vouchers worth
` 50000 are provided free of cost.
9. Full finance @ 0%
Under this seller allows the payment in certain number of installments without charging
O
any interest. For example: Apple I-phone valued ` 80,000 is available in 8 installments of
` 10000/-.
N

Marketing 317
10. Sampling
Under this, free samples are offered in potential market. For example: Publication houses
provide free sample books to the teachers on whom recommendations students buy books
from the market.
11. Contests
Under this, contests are organised and winners are sponsored with
free unit of product. For example: Adventure island (amusement park) used
ED
to conduct contests in main markets of Delhi where by people used to get
free tickets by answering some simple questions.
Public relations
H
Meaning
S
n
Public relation is a process to convince the population that may be your
LI
prospective customers, investors, suppliers etc. but they are outside the circle
PU .i
of your influence. It is different from advertising. Advertising is paid media whereas public
E rs
B
relations are earned media. In the business language of business, you can simply understand
“Advertising is what you pay for, publicity is what you pray for.”
B a
The Chartered Institute of Public Relations defines Public relations as “a strategic

ol
management function that adds value to an organisation by helping it to manage its

reputation.”
TO ch
Tools of public relations

PR tools include:
T es
(a) Write and distribute press releases.

(b) Speech writing.
(c) Create and execute special events designed for public and media relations.
(d) Conduct market research on the
firm or the firm’s messaging.
O
(e) Expansion of business contacts via

personal networking or
N
attendance and sponsoring at

events.
(f) Writing and blogging for the web
(internal or external sites).
(g) Social media promotions and
responses to negative opinions.

318 : XII
Role of public relations
ED
H
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n
LI
1. Helps in image building of organisation
PU .i
(a) Good public relations help in building positive image before stakeholders. The main
E rs
B
aim of activities related to public relations is to increase organisation’s acceptance
among target population.
B a
(b) For example : South Korean company Samsung has opened technological schools
ol
in India whereby they are educating girls at concessional fees and highlighting the
same before Indian audience. This is to increase the brand loyalty of Indian
TO ch
customers towards an international brand.

2. Increase market of organisational products
T es
(a) Creating positive image through public relations help in increasing market of
organisation’s product.
(b) For example : Patanjali market share in confectionery products is increasing day
by day. This is because of the fact that it is able to link its product manufacturing
and consumption with patriotism.
3. Provides positive image if product is facing adverse publicity
(a) Public relations projects create positive image before public by encountering the
O
bad messages delivered to them by external forces.

N
(b) For example : Maggi after getting banned from Indian market (due to usage of
certain chemicals in excess quantity in noodles) is still able to comfortably comeback
due to its positive image before public.
4. Smooth functioning of organisation
(a) As we have discussed, image building increases the market share of organisation.
This leads to smooth functioning of organisation and helps in achieving
organisational goals in better manner.
Marketing 319
(b) For example : Tata group is dealing in almost all types of product i.e. from jewellery
to trucks manufacturing. It’s almost all the products have good market share in
total demand.
5. Supplement of advertising
(a) Strong public relations create trust among public towards organisational brand and
thus leads to brand building. Due to this, organisation gets more response on
advertisements related to its existing as well as new products.
ED
(b) Also, marketing managers need to put less efforts while launching new products
or boosting sales of existing products in new regions.
☞ Previous Years Examination Questions
H
S
1. What is meant by ‘Production concept’ of marketing ? (CBSE Delhi 2010)
n
2. ‘An important task in the marketing of goods relates to designing the label as it provides
LI
PU .i
useful and detailed information about the product.’
E rs
In the light of the above statement draw a label for a ‘liquid soap’ and highlight the important
B
information to be provided on it. (CBSE Delhi & Outside 2010)
3. Name that element of marketing-mix which affects the revenue and profits of a firm. Explin
B a
any five factors which help in determining this element. (CBSE Delhi & Outside 2010)
ol
4. “Generally consumers prefer to buy goods directly from the producers but it is not always
possible.” Give reasons why is it so by explaining four different factors responsible for this.
TO ch
(CBSE Delhi & Outside 2010)

5. What is meant by ‘Product Concept of marketing’ ? (CBSE Delhi & Outside 2010)
6. What is meant by ‘selling concept’ of marketing ? (CBSE Delhi & Outside 2010)
T es
7. Explain any two functions of ‘marketing’. (CBSE Delhi 2011)

8. What is meant by ‘Brand Name’ ? State any four characteristics of a good ‘Brand Name’.
(CBSE Delhi 2011)
9. Name the element of Marketing-mix in which a set of firms and individuals creates
possession, place and time utility and helps in market offering. Also explain any five
important functions performed by this element. (CBSE Delhi & Outside 2011)
10. Identify and explain the promotional tool of Marketing-mix which plays a persuasive, service
O
and informative role and thereby links a business firm to its customers. Also explain by
giving any four reasons how this tool helps in increasing the sales of businessmen.
N

11. What is meant by Packaging ? State any four functions of Packaging.
12. Differentiate between marketing and selling on any three bases.
(CBSE Delhi 2011, 2012)
13. What is meant by ‘Labelling’ ? State any four functions of ‘Labelling’.

320 : XII
14. Explain the role of marketing in a firm. (CBSE Outside 2011)

15. Explain any three functions of Marketing. (CBSE Outside 2011)
16. Nisha, a school bag manufacturer, decided to improve the product for profit maximization
and thus added a water bottle holder to the existing design.
(i) Identify the marketing management philosophy adopted by Nisha.
(ii) Explain this philosophy on the basis of (a) main focus and (b) means and ends.
(CBSE Delhi 2012)
17. Choice of channels of distribution depends on various factors. Explain any four factors which
ED
affect the choice of distributors. (CBSE Delhi 2012)
18. Explain ‘Market Planning’ and ‘Product Designing and Development’ as functions of
Marketing. (CBSE Delhi & Outside 2012)
H
19. Differentiate between advertising and personal selling on any five bases.
(CBSE Delhi & Outside 2012; Delhi (Comptt.) 2012)
S
n
20. Mansi, a shoe manufacturer for school students, decided to maximise her profit by producing
LI
and distributing at a large scale and thereby reducing the average cost of production.
PU .i
(i) Identify the marketing management philosophy adopted by Nisha.
E rs
B
(ii) Explain this philosophy on the basis of (a) main focus and (b) means and ends.
(CBSE Outside 2012)
B a
21. Physical distribution includes some components for physically moving the goods from
manufactures to the consumers. Explain these components. (CBSE Outside 2012)
ol
22. Differentiate between ‘Marketing’ and ‘Selling’ on any five bases.

(CBSE Outside 2012 & Delhi (Comptt.) 2012)
TO ch
23. Amar is engaged in manufacturing of refrigerators. He surveyed the market and found that
customers need a refrigerator with a separate provision of water cooler in it. He decided
T es
and launched the same refrigerator in the market. Identify and explain the marketing
philosophy involved. (CBSE Delhi (Comptt.) 2012)
24. “The elements of marketing mix are popularly known as 4 Ps of marketing.” Explain briefly
these elements of marketing mix. (CBSE Delhi (Comptt.) 2012)
25. ‘Expenditure on advertising is a social waste.’ Explain any four reasons in support of this
statement. (CBSE Delhi (Comptt.) 2012)
26. Briefly explaian the factors that affect the determination of the channels of distribution.
O
(CBSE Delhi (Comptt.) 2012)

27. Ayesha is manufacturing lunch-boxes for school-going children. To maximise profit she
N
decided to improve the quality and added a warmer for the lunch-boxes. Due to this
improvement in the product, the sale is increasing day-by-day. Identify and explain the
marketing philosophy involved. (CBSE Outside (Comptt.) 2012)
28. ‘Price occupies an important place in the marketing of goods and its determination is affected
by many factors.’ Explain any four such factors. (CBSE Outside (Comptt.) 2012)
29. ‘Personal selling is a powerful tool for a business organisation.’ Do you agree ? Explain
anyfour reasons in support of your answer. (CBSE Outside (Comptt.) 2012)
30. Why is marketing called a social process ? (CBSE Delhi 2013)

Marketing 321
31. Distinguish between ‘Selling Concept’ and ‘Marketing Concept’ of Marketing Management
Philosophies on the basis of ‘main focus’. (CBSE Delhi 2013)
32. Ajay was appointed a marketing head of ‘Alfa Enterprise’ manufacturers of toothpaste and
toothbrushes. His target sale was 2,000 units a month. Apart from thinking about various
channels of distribution to achieve the target he himself started visiting schools in backward
areas. He found that even after taking various steps and counseling, some school children
had not started brushing their teeth. He investigated and found that they could not afford
to buy toothbrush and toothpaste. So with due permission he started donating 200
ED
toothbrushes and toothpastes every month to the school.
(i) Identify the channel of distribution ‘Ajay’ would adopt for distribution of toothpaste
and toothbrushes and justify it by giving one reason.
(ii) State any two values which Ajay wants to communicate to the society.
H
(CBSE Delhi 2013)
S
33. ‘Though branding adds to the cost, it provides several advantages to the consumers’. In
n
the light of the statement, state any three advantages of branding to customers.
LI
PU .i
(CBSE Delhi 2013)
E rs
34. Explain the concept of personal selling and any four qualities of a good salesman.
B
(CBSE Delhi 2013)
35. Explain any four factors which affect the determination of the price of a product.
B a
(CBSE Delhi 2013)

ol
36. ‘Though branding adds to cost, it provides several advantages to the marketers.’ In the
light of the statement state any three advantages of branding to marketers.
TO ch
(CBSE Delhi 2013)

37. ‘Packaging has acquired great significance in the marketing of goods.’ In the light of this
statement state any three functions of packaging. (CBSE Delhi 2013)
T es
38. What is the advantage of registering ‘trade mark’ ? (CBSE Outside 2013)
39. State the meaning of ‘Product Identification’ function of packaging.
(CBSE Outside 2013)
40. ‘Choice of an appropriate channel of distribution is a very important marketing decision
which depends on various factors’. Explain any three such factors.
(CBSE Outside 2013)
41. ‘Pricing of a product is an important and effective competitive weapon in marketing which
O
depends upon various factors’. Explain any three such factors. (CBSE Outside 2013)
N
42. Explain the role of ‘Advertising’ in marketing management. (CBSE Outside 2013)
43. Explain the role of ‘Public-Relations’ in marketing management. (CBSE Outside 2013)
44. State the meaning of ‘Product Promotion’ function of packaging. (CBSE Outside 2013)
45. Differentiate between ‘Marketing Concept Philosophy’ and ‘Production Concept Philosophy’
on the basis of :
(a) Meaning ; (b) Main focus ; (c) Means. (CBSE Delhi & Outside (Comptt.) 2013)
46. As a project-work in Business Studies subject, the Commerce students of ‘Creative Public
School’ thought of setting up a recycling plant to recycle all the waste papers from the

322 : XII
school and prepare registers and exercise books to be used by the school students. They
approached their Principal who not only appreciated the idea of the students but also gave
her consent for the same. The school also decided to donate 50% of the revenue generated
from the sale of registers and exercise books to a nearby Blind school
(a) Explain any two product-related decisions which the children have to take.
(b) Suggest any two factors children should keep in mind while choosing the right name
for their exercise books and registers.
(c) Identify ‘two values’ communicated to the society by this project of ‘Creative Public
ED
School’. (CBSE Delhi & Outside (Comptt.) 2013)
47. What is meant by ‘Sales Promotion’ ? Explain any five sales promotion techniques with an
example of each. (CBSE Delhi (Comptt.) 2013)
H
48. Explain the following functions of ‘Marketing’ :
(a) Gathering and Analysing Market Information
S
n
(b) Standardization and Grading
LI
(c) Customer Support Services (CBSE Delhi (Comptt.) 2013)
PU .i
49. What is meant by ‘Personal Selling’ ? Explain any five qualities of a good salesman.
E rs
(CBSE Outside (Comptt.) 2013)

B
50. Explain the following functions of ‘Marketing’ :
B a
(a) Product Designing and Development

(b) Marketing Planning
ol
(c) Physical Distribution (CBSE Outside (Comptt.) 2013)

51. Differentiate between ‘Production-Concept-Philosophy’ and ‘Product-Concept-Philosophy’
TO ch
on the basis of :
(a) Meaning ; (b) Main focus ; (c) Ends (CBSE Outside (Comptt.) 2013)
T es
52. Crackers Ltd., a fire cracker manufacturing company launched some new products on eve
of Diwali which attracted many buyers. To meet the increased demand, the company
employed children from nearby villages. Although the product was in great demand,
appropriate safety warnings for use were not mentioned onthe packets that led to many
accidents.
(i) Identify and explain the important product related decision that was not taken into
consideration by the company.
(ii) Also, identify any two values which were violated by the company.
O
(CBSE Delhi 2014)

N
53. Explain ‘Price’ as an element of marketing-mix. Also, explain any four factors that affect
the fixation of price of a product. (CBSE Delhi 2014)
54. Explain the following functions of marketing :
(i) Gathering and analysing market information;
(ii) Marketing planning;
(iii) Customer support services; and
(iv) Physical distribution. (CBSE Delhi 2014)

Marketing 323
55. ‘Though advertising is one of the most frequently used medium of promotion of goods
and services, yet it attracts lot of objections’. Explain any four such objections.
(CBSE Delhi 2014)
56. Explain the factors that determine the choice of channels of distribution.
(CBSE Delhi 2014; Delhi (Comptt.) 2014)
57. ABC Crackers Ltd., a fire-cracker manufacturing company launched some new products
on the eve of Diwali in the market, which attracted many buyers. To meet the increased
demand the company employed people from nearby villages where there is a lot of
ED
unemployment. Because of the good behaviour of the management with the employees,
more and more people wanted to join the company. As the products were in great demand
in the market, a competitor imitated the products. The products of the competitor were
H
not accepted by the consumers as it was a status symbol to buy the products of ABC
Crackers Ltd. because of their quality.
S
(i) Identify and explain the product-related decision because of which consumers preferred
n
the products of ABC Crackers Ltd.
LI
PU .i
(ii) Also identify any two values which ABC Crackers Ltd. wanted to communicate to the
E rs
society. (CBSE Outside 2014)

B
58. What is meant by ‘Personal Selling’ ? Explain any three qualities of a good salesman.
(CBSE Outside 2014)
B a
59. Explain the following functions of marketing :

ol
(i) Product designing and development;

(ii) Standardization and grading;
TO ch
(iii) Customer Support Services;

(iv) Pricing of products (CBSE Outside 2014)
60. Identify and explain the marketing management philosophy which implies that products
T es
and services are bought not merely because of their quality or brand name but because
they satisfy a specific need of a customer. (CBSE Delhi (Comptt.) 2014)
61. State any five characteristics of a good brand name. (CBSE Delhi (Comptt.) 2014)
62. Explain the four important elements of marketing mix.
(CBSE Delhi & Outside (Comptt.) 2014)
63. State any five functions of Labelling. (CBSE Delhi (Comptt.) 2014)
64. What is meant by ‘Packaging’ ? State any four functions of packaging.
O

N
65. ‘You don’t close a sale, you open a relationship, if you wantto build a long-term successful
enterprise.’ Identify the communication tool used by the marketer. State any two features
of this communication tool. (CBSE Outside (Comptt.) 2014)
66. There are a number of factors that affect the fixation of price of a product. State any five
such factors. (CBSE Outside (Comptt.) 2014)
67. Describe the role of ‘Public Relations’ in the promotion of products and services.

324 : XII
68. State the factors determining the choice of channels of distribution.

69. What is meant by ‘advertising’ ? State the role of advertising in marketing.
70. ‘Beauty Products Ltd.’ is a natural and ethical beauty brand famous for offering organic
beauty products for men and women. The company uses plant based materials for its
products and is the No. 1 beauty brand in the country. It not only satisfies its customers
but also believes in overall protection of the planet. Identify the marketing management
ED
philosophy being followed by ‘Beauty Products Ltd.’. (CBSE Delhi 2015)
71. Explain how the ‘product related factors’ affect the choice of channels of distribution.
(CBSE Delhi 2015)
H
72. ‘Hayaram’ is a famous chain selling a large variety of products in the Indian market. Their
products chips, biscuits, sweets and squashes. It charges a comparatively higher price than
S
it competitors as it sells quality products. Besides, it offers regular discounts to its customers
n
and easy credit terms to its retailers. It has five of its own retail shops. It also sells its products
LI
PU .i
through various grocery stores so that the products are made available to customers at the
right place, in the right quantity and at the right time. It regularly uses different
E rs
B
communication tools to increase its sales.
The above para describes the combination of variables used by Hayaram to prepare its
B a
market offering. Identify and explain the variables. (CBSE Delhi 2015)
73. ‘Maruti Vega Ltd.’ entered into the market with coloured television and have now introduced
ol
products like audio system, air-conditioners, washing machines, etc. The company is not
only offering the products but also handling complaints and offering after-sales services.
TO ch
Identify the element of marketing-mix discussed here. (CBSE Outside 2015)

74. How do the ‘Company-related factors’ affect the choice of channels of distribution ? Explain.
T es
(CBSE Outside 2015)

75. Radhika was a student of Business Studies of Class XII. Her father was a farmer who grew
different varieties of rice and was well-versed about various aspects of rice cultivation. He
was also selected by the government for a pilot-project on rice cultivation. As a project-
work in Business Studies she decided to study the feasibility of marketing good quality rice
at a reasonable price. Her father suggested her to use the internet to gather customers’
views and opinions. She found that there was a huge demand for packaged organic rice.
She knew that there were no predetermined specifications in case of rice because of which
O
it would be difficult to achieve uniformity in the output. To differentiate the product from
its competitors, she gave it the name of ‘Malabari Organic Rice’ and classified it into three
N
different varieties namely—Popular, Classic and Supreme, based on the quality. She felt
that these names would help her in product differentiation.
Explain the three functions of marketing, with reference to the above paragraph.
(CBSE Outside 2015)
76. A TV manufacturing company is spending substantial amount of money to persuade the
target customers to buy its T.V. sets through advertisements, personal selling and sales
promotion techniques. Identify the element of marketing mix referred here.
Marketing 325
77. There are some characteristics that should be kept in mind while choosing a brand name.
Explain any two such characteristics that a good brand name should have.
78. Your company has set up a food processing unit in Kashmir with a production capacity of
10,000 litres of apple juice per day. The company plans to market the apple juice in tetra
pack of 100 mililitres. Design a label for the same. (CBSE Delhi (Comptt.) 2015)
79. There are number of factors which affect the fixation of the price of a product. Explain
any four such factors. (CBSE Delhi (Comptt.) 2015)
ED
80. ‘Sometimes advertising confuses the buyers’. Do you agree with this ? Give reasons in
support of your answer. Also state the arguments of supporters of advertisements regarding
the above statement. (CBSE Delhi (Comptt.) 2015)
H
81. The choice of an appropriate channel of distribution depends upon a number of factors.
Explain any four such factors. (CBSE Delhi (Comptt.) 2015)
S
82. Describe the role of public relations in sales promotion. (CBSE Delhi (Comptt.) 2015)
n
83. A consumer products manufacturing company is offering a number of consumer product
LI
PU .i
like toiletries, detergent powder, food products etc. Identify the element of marketing mix
E rs
referred here. (CBSE Outside (Comptt.) 2015)

B
84. There can be three different levels of packaging. Explain any two of them.
B a
85. Your company has set up a coconut hair-oil factory in Coastal Kerala, with a production
ol
capacity of 10,000 bottles of 100 mililitres per day. The company plans to market the hair-
oil with the brand name ‘Kale Kesh’. Design a label for the hair oil bottles.
TO ch

86. Name the marketing function which is concerned with informing the customers about the
firm’s products. (CBSE Delhi 2016)
T es
87. A company was marketing ‘water purifiers’ which were very popular due to their quality
and after sales services provided to the customers. The company was a leading company
in the market and earning huge profits. Because of huge profits the company ignored the
after sales services. As a result its relations with the customers got spoiled and the image
of the company was damaged in the public. Top management became concerned when
the profits for the current quarter fell steeply. On analysis it was revealed that ignoring the
after sales services was its reason. Therefore the company took all possible measures to
O
protect and promote its favorable image in the eyes of the public. As a result the goodwillof
the company improved in the society.
N
(a) Name and state the communication toolused by the marketer in the above case to
improve its image.
(b) Also explain role of the tool as identified in part (a) (CBSE Delhi 2016)
88. Ashima purchased a bottle of tomato-sauce from the local grocery shop. The information
provided on the bottle was not clear. She fell sick on consuming it. She filed a case in the
District Forum under Consumer Protection Act and got the relief.
(a) Identify the important aspect neglected by the marketer in the above case.
(b) Explain briefly the functions of the aspect identified in (a) above. (CBSE Delhi 2016)
326 : XII
89. Name the function of marketing which is concerned with the cost and location of target
market. (CBSE Outside 2016)
90. A company was marketing ‘Juicers’ which were very popular due to their quality and after-
sale services provided to the customers. The company was a leading company in the market
and earning huge profits. Because of huge profits the company ignored the after sales
services. As a result its relations with the customers got spoiled and the image of the
company in the public was damaged. Top management became concerned when the profits
for the current quarter fell steeply. On analysis it was revealed that ignoring the after sales
ED
services was its reasons. Therefore the company took all possible measures to protct and
promote its favorable image. As a result the goodwill of the company improved in the
society.
(a) Name and state the communication tool used by the marketer in the above case to
H
improve its image.
S
(b) Also explain role of the tool as identified in Part (a). (CBSE Outside 2016)
n
91. ‘A marketer of televisions, before making the sale, does a lot of other activities such as
LI
PU .i
planning the type and model of televisions to be produced, the price at which it would be
sold and selecting the distribution outlets at which the same would be available’. Based
E rs
B
on the statement give any one difference between ‘marketing’ and ‘selling’.
B a
92. ‘GATA Ltd.’ is a large multinational company and operates in many countries of the world.
ol
The company is in the business of Insurance, Health care, Business Process Outsourcing,
Computer Education, Security, etc. What is being marketed by the Company ?
TO ch
93. Name and state the process that it used by a producer when he wants to market his products
by a name other than its generic name. Also state any two terms that are related to the
T es
process. (CBSE Delhi (Comptt.) 2016)

94. ‘Energy drinks India Ltd.’ has scanned a profitable opportunity for marketing of soft drinks
with ‘Indian Traditional Flavour’. The company wants to market its products in India and
in neighbouring countries. A Board meeting of the company was held on India and in
neighbouring countries. A Board meeting of the company was held on 14.12.2015 wherein
the marketing manager was asked to give a presentation to develop this market offering.
For this it was also decided to set-up its manufacturing unit in a village of Bihar. This will
not only help in the development of the village but will also provide employment to the
O
youth of the village. The marketing manager chooses a combination of variables to prepare
N
its market offering. He used a set of marketing tools that firm will use to pursue its marketing
objectives in the target market.
(a) Name and state the concept of marketing used by the marketing manager for creating
its market offering.
(b) Also, explain briefly the various elements of this concept.
(c) State any two values that the company wants to communicate to the society.

Marketing 327
95. ‘Garima Ltd.’ a manufacturer of car engines achieves a breakthrough by developing a car
engine which runs on water. This development is effectively communicated by the company
to its dealers and prospective customers. Because of this breakthrough the image of the
company has gone up. The company has also set-up a department that advices its top
management to adopt such programmes which will add to its public image. Name and
state the term that is used for this activity. (CBSE Outside (Comptt.) 2016)
96. The advertisement of a travel agency states the following :
‘Visit Agra—The city of Love’, ‘Udaipur—The city of Lakes’ and ‘Mysore—The city of
ED
Gardens’. What is being marketed by the agency through the advertisement ?
97. ‘Branding adds to the cost e.g., to the cost of packaging, labelling, legal protection and
H
promotions. However, it provides several advantages to the sellers as well as the customers’.
Do you agree ? State any three reasons in support of your answer.
S
n
98. ‘Energy drinks India Ltd.’ has scanned a profitable opportunity for marketing of soft drinks
LI
PU .i
with ‘Indian Traditional flavour’. The company wants to market its products in India and
E rs
in neighbouring countries. A Board meeting of the company was held on 14.12.2015

B
wherein the marketing manager was asked to give a presentation to develop this market
offering. For this it was also decided to set-up its manufacturing unit in a village of Bihar.
B a
This will not only help in the development of the village but will also provide employment
ol
to the youth of that village. The marketing manager chooses a combination of variables to
prepare its market offering. He used a set of marketing tools that firm will use to pursue its
marketing objectives in the target market.
TO ch
(a) Name and state the concept of marketing used by the marketing manager for creating
its market-offering.
T es
(b) Also, explain briefly,the various elements of this concept.

(c) State any two values that the company wants to communicate to the society.
99. State the three functions of marketing that are performed before goods are actually
produced. (CBSE Outside (Comptt.) 2016)
100. Sunita took her niece, Aishwarya for shopping to ‘Benetton’ to buy her a dress on the
occasion of her birthday. She was delighted when on payment for the dress she got a
O
discount voucher to get 20% off for a meal of 500 or above at a famous eating joint. Identify
the technique of sales promotion used by the company in the above situation.
N
(CBSE Delhi 2017)

101. Ginika, Tanish and Rohit were friends from college days and now they are doing different
kinds of business. They regularly meet and discuss their business ideas and exchange notes
on customer satisfaction, marketing efforts, product designing, selling techniques, social
concerns etc.
In one of such meetings, Ginika drew the attention of Tanish and Rohit towards the
exploitation of consumers. She told that most of the sellers were exploiting the consumers

328 : XII
in various ways and were not paying attention towards the social, ethical and ecological
aspects of marketing, whereas she was not doing so.
Tanish told that they were under pressure to satisfy the consumers, but stated that the
consumers would not buy or not buy enough unless they were adequately convinced and
motivated for the same.
Rohit stressed that a company cannot achieve its objectives without understanding the needs
of the customers. It was the duty of the businessmen to keep consumer satisfaction in mind
because business in run by the resources made avilable to them by the society. He further
ED
stated that he himself was taking into consideration the needs of the customers.
Identify the various types of thinking that guided Ginika, Tanish and Rohit in the marketing
efforts of their business. Also, state one more feature of the various types of thinking
identified that is not given in the above para. (CBSE Delhi 2017)
H
102. Mansi took her niece, Ridhima, for shopping to ‘Mega Stores’ to buy her a bag for her
S
birthday. She was delighted when on payment of the bag she got a pencil box along with
n
the bag free of cost.
LI
PU .i
Identify the technique of sales promotion used by the company. (CBSE Outside 2017)
103. Hemant, Guddu and Toshita were friends from college days and presently they were doing
E rs
B
different kinds of business. They regularly meet and discuss their business ideas, and
exchange notes on customer satisfaction, marketing efforts, product designing, selling
B a
techniques, social concerns, etc.

In one of such meeting, Hemant drew the attention of Guddu and Toshita towards the
ol
exploitation of consumers. He told that most of the sellers were exploiting the consumers
in various ways and were not paying attention towards the social, ethical and ecological
TO ch
aspects of marketing, whereas he was not doing so. Guddu told that they were under
pressure to satisfy the consumers but stated that the consumers would not buy or not buy
enough unless they were adequately convinced and motivated for the same.
T es
Toshita stressed that a company cannot achieve its objectives without satisfying the needs
of the customers. It was the duty of the businessmen to keep consumer satisfaction in mind,
because business is run by the resources made available by the society. She further stated
that she herself was takinginto consideration the needs of the customers.
Identify the various types of thinking that guided Hemant, Guddu and Toshita in the
marketing efforts of trheir business. Also,state one more feature each of the various types
of thinking identified that is not given in the above paragraph. (CBSE Outside 2017)
O
104. Medi Instruments Ltd. is a company dealing in the distribution of medical instruments. The
company recently imported 15000 units of sugar testing machines to test the sugar levels
N
without taking blood samples. For deciding the marketing strategy, the Chief Executive
Officer of the company called a meeting of the marketing heads of different zones.
In the meeting Sanjay, the North Zone Marketing Head, suggested that since the machines
were sophisticated they need to visit hospitals personally to explain its working to the hospital
staff who would beusing the machines. He also suggested that additional trained people
may be recruited for the same. Hitesh, another Zonal Head, added that since lot of money
had been spent on the import of the machines, the company was short of funds to pay
the additional staff, as suggested by Sanjay.

Marketing 329
Revansh, a newly appointed Zonal Head of South Zone, suggested that since the size of
the order was large, a detailed study of the factors determining the choice of channels of
distribution was required before making the right choice.
(a) Identify the factors influencing the choice of chanels of distribution which were discussed
in the meeting.
(b) Also, explain brieflythe other considerations to be taken care of in each factor identified
in part (a). (CBSE Outside 2017)
105. Sindhu Ayurved Ltd., a new and leading manufacturer of herbal and ayurvedic medicines
ED
and grocery products has captured a large share of the market in a short span of time.
The Research and Development (R&D) department of the company spends considerable
time and effort in developing eco-friendly,chemical-free and healthy alternatives for a variety
of products of daily use, like toothpastes, biscuits, noodles, soaps, shampoos and detergents
H
etc. Their business orientation differs from competitors who are short sighted and serve
S
only consumers’ needs. Instead Sindhu Ayurved Ltd. considers larger issues of long-term
n
social welfare, paying attention to social, ethical and ecological aspects of marketing.
LI
PU .i
(i) Identify and explain the marketing management philosophy adopted by Sindhu Ayurved
Ltd.
E rs
B
(ii) State any two values that are being promoted by the company.
(CBSE Delhi & Outside (Comptt.) 2017)
B a
106. Shyam bought a pain relieving ointment after seeing it being displayed in the chemist’s
ol
shop. The ointment tube was packed in a cardboard box.Identify the different levels of
packaging of the pain relieving medicine, when it was purchased by Shyam. Also state the
functions of packaging. (CBSE Delhi & Outside (Comptt.) 2017)
TO ch
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Quick Test-1
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12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567
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T es
1. What is the social concept of marketing ?

2. Price of product is affected by many factors. Explain any three such factors.
3. Explain briefly the functions of labelling.
4. ‘It pays to advertise.’ Advertisement is a social waste.’ Comment.
5. ‘A toy car free with ‘Maggi Noodles’ is an example of one of the techniques of sales
promotion.’ Name the technique and explain two other techniques with examples.
O
6. Difference between sales promotion and personal selling. (Any three).

7. Explain the following functions of marketing:
N
(a) Product planning

(b) Standardisation and grading
(c) Transportation
8. Which mix of marketing management adds ‘Place utility’ ? Explain its three components.
9. What is the role of Public relations in promoting the product ?
10. Is it right to say that marketing starts much before the production of goods ? Comment.

330 : XII
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12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567
12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567
Quick Test-2
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12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567
12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567
1. Define marketing. How it is different from selling concept ?

2. What is the meaning of product mix ? Explain the elements of marketing mix.
3. Is primary packaging enough to sell the product ? If not, why ?
4. What are the factors that the organisation must consider while selecting the channel of
distribution ? (Any three).
ED
5. Difference between advertising and public relations. (any three).
6. Sales promotion techniques makes the advertisement more effective. Comment.
7. As a marketing expert you are appointed in Modi limited for assisting in pricing of product.
H
What factors you will consider while deciding the price of product.
8. Define the term Brand and its components.
S
n
9. What are the functions of labelling ?
LI
PU .i
10. Explain any three market management philosophies other than marketing and selling.
E rs
B
❏❏
B a
ol
TO ch
T es
O
N

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Chapter : 11

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Marketing Management Philosophies

• Starting point : Factory.

• Method : Availability and affordability of product.

• Method : Product improvement.

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Meaning Selling is concerned with Marketing is a wider term

the buyer. customers’ needs, developing the

product to satisfy these needs,

potential buyers to buy the same.

sales volume. customer satisfaction.

2. Marketing Planning : This includes “How to capture the target customers”.

6. Branding : Brand is a name, term, design, symbol, or other feature that

distinguishes an organisational product from its competitors before customers. For

7. Pricing of Products : This includes deciding the price of product by considering

8. Customer support services : This function of marketing includes after sales

as per customers’ demand.

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• In respect of product, marketer needs to take decisions in respect of branding,

labelling and packaging.

distinguishes an organisational product from its competitors. For example:

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(c) Brand Mark : Symbols or images used to identify a brand is known as

Characteristics of a Good Brand Name

example: Paytm, Ola etc.

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(f) The brand name should be adaptable to packing or labelling requirements, to

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(c) Transportation package: It refers to further packaging components

necessary for storage and transportation.

✓ Packaging helps in pushing up the sales promotion as it beautifies the product so

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(d) Product Differentiation: Packaging helps in creating product differentiation.

minutes, or pharmaceutical tablets specifying number of intakes as per different

(b) Helps in Identification of the Product or Brand

indicate different features or quality of the product.

(e) Providing Information Required by Law

➣ High pre-booking of a product pushes the market price.

➣ In case of intense competition prices are kept lower.

factors as required to be consider. (Example of other factors can be government

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Factors affecting Price Determination

2. The utility and demand

from customers. However, due to law of demand, quantity demanded

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3. Extent of competition in the market

which can be charged for goods.

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Place Mix / Physical Distribution Mix

customers can buy it.

• Physical distribution mix is concerned with selection and arrangement of activities

customers either directly or through intermediaries.

• Twin objectives of place mix are:

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Components of Physical distribution

modes like air, land (rail and road) and water.

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number of warehouses required and company’s capacity to spend.