Chapter-11-Marketing 

(c)

Explanation: Marketing helps to move goods from the place, where they are produced to another place, where they are needed for consumption. Thus, marketing creates place utility.

(b)

Explanation: Selling is a part of marketing and means transferring the product or service to the person who needs it.

(b)

Explanation: These are the concepts or philosophies of marketing management. Every concept stresses the need of a particular approach on the part of producers to achieve profit maximisation.

(c)

Explanation: Selling starts after goods are produced. It ends as soon as goods are transferred to the buyers.

(b)

Explanation: Price is the value of a commodity that it will yield in terms of money when sold in the market.

(a)

Explanation: Channel of distribution means the type and number of middlemen through whom the final products are transferred to consumers. The examples of middlemen are wholesalers, retailers and agents. Too many middlemen can unnecessary inflate the price of the product, and too few middlemen can cause unavailability of goods at all the places and all the time.

(c)

Explanation: It is an objective of marketing to inform the public about the products of an enterprise and induce them to buy these products for satisfaction of their needs.

(a)

Explanation: The object of selling is to increase the sales and earn profits. Selling means transferring ownership. It doesn’t involve knowing what buyers want rather it aims at selling what producers have.

(c)

Explanation: Pricing is the process of deciding the value a product will generate in terms of money when it will be sold in the market.

(a)

Explanation: Preserving the goods produced up to the time they are used by the consumers is called creating place utility in the goods. Marketing creates place utility by storage and warehousing.

(a)

Explanation: Promotion means assisting and inducing the customers to buy a product. It includes informing the consumers about the product-line of an enterprise and influencing their behaviour to buy these products.

(a)

Explanation: Promotion means influencing the behaviour of the customers. It involves making a favourable image for the product. Generally consumers prefer the products, which are heavily advertised.

(b)

Explanation: Advertisement involves non-personal contact. Face-to-face contact is a part of personal selling where salesmen interact directly with the customers.

(d)

Explanation: Marketing mix includes all the activities, which are undertaken in the marketing management. These activities are broadly classified into four categories, namely, planning mix, management mix, financial mix and marketing mix.

(c)

Explanation: Storage and warehousing help in keeping the finished goods in fine conditions from the time they are produced upto the time they are purchased by the consumer. They are a part of place mix.

(c)

Explanation: The purpose of doing marketing research is to get an idea about the customers’ tastes and preferences, so that goods can be manufactured as per the needs of the customers.

(b)

Explanation: Branding means making the goods look unique in the eyes of the customers. Branding helps a customer to easily locate a particular product from a group of similar products.

(b)

Explanation: Promotion mix consists of different techniques of promotion, viz. personal selling, advertising, publicity and sales promotion. It is advisable not to use only one of these techniques but a combination of these to get maximum benefits.

(c)

Explanation: In place mix of marketing, we ensure that excess goods are not stored, or say, the actually needed goods are stored for production. This will avoid the unnecessary locking of working capital of the company in raw materials.

(b)

Explanation: Marketing not only involves selling but also aims to ensure that the selling is actually resulting in customers’ satisfaction. In marketing, we analyse what customers want and how their wants can be satisfied in the best possible manner.

(b)

Explanation: Physical distribution mix is also called marketing logistics or logistic management.

(b)

Explanation: Through marketing management, an enterprise informs its existing and prospective consumers about its existing and new products. It helps the consumers to analyse different products and buy the one, which best suits their requirements.

(d)

Explanation: All these decisions are taken in product mix, which is a part of marketing mix. It is one of the four Ps of marketing.

(b)

Explanation: Marketing means knowing the demands of customers. This means before producing the producers should know about the product to be produced and its specifications as well. Marketing continues even after selling because after-sale-service is also a part of marketing.

(a)

Explanation: Product mix includes branding, a process of giving a unique name, symbol, design or a combination of these to the product. A good brand name is easy to remember and customers don’t forget it easily. Good brand makes it easy for the consumers to locate the product easily among similar other products.

(c)

Explanation: Every organisation wants to earn profits that will help it sustain and grow in the ever changing and challenging business environment. Pricing mix helps an organisation to fix the prices at such a level that will enable it to sustain and develop. It will also make the products cost effective for the consumers.

(b)

Explanation: When the ownership of a product is changed to make it useful for other people, it is referred as creating possession utility. The goods are not of much value to a producer but they become useful as soon as the possession is transferred to the consumers.

(d)

Explanation: Product line is the word used for similar products, which serve same purpose. The examples of product line are cars, cosmetics and electrical equipments, etc. We can say that the product line of Maruti Suzuki is cars as it produces different categories of cars as per the needs of the buyers.

(c)

Explanation: As per the selling concept, buyers buy those products for which they are persuaded. This concept stresses the need of convincing and motivating the buyers to purchase a product. Selling here means selling either by hook or crook. This concept may help the organisation to earn profits in the short-term but in the long-term, unsatisfied customers may ruin the image of the organisation.

(a)

Explanation: Selling is producer oriented because it is the producer who decides what has to be produced and in which way.

(b)

Explanation: Convenient goods are normally daily-use goods, viz. toothpaste, soaps, edible oils, vegetables, etc.

(d)

Explanation: All the activities, which increase sales and do not come under personal selling, publicity and advertisements, are a part of sales promotion. It is not a continuous process and is used occasionally by organisations.

(c)

Explanation: According to societal concept, giving consumers all that they want is not right. Consumers should be discouraged to use the products, which are unethical and can harm the environment. If a consumer wants to consume drugs, he should not be supplied the drugs just for the sake of satisfying him.

(b)

Explanation: Labelling contains the information regarding the name of the product, the address of manufacturer, the date of manufacture, the expiry date, the maximum retail price, the ingredients, the warning, etc.

(d)

Explanation: In physical distribution, we decide about the channel of distribution, i. e. , whether an organisation wants to sell it directly to the consumers or through one or more middlemen such as wholesalers, retailers and agents.

(c)

Explanation: Trade mark is always registered so that it cannot be copied. Trade mark sets a distinct image of the organisation as well as its product. The examples of trade mark are Dalda, Lux, Tide, Cinthol, etc.

(b)

Explanation: Publicity means creating news, which favourably impact the business. This is called non-paid form of promotion because a company doesn’t spend money on publicity. It just spreads news via radio, events, etc. which make a good image for the organisation.

(a)

Explanation: A good packaging should be safe and convenient to handle.

(b)

Explanation: With the help of transport, a produce can supply his goods to distant areas. In this way, the market is increased and the company is able to earn more profits due to increased demand.

(c)

Explanation: Caveat emptor means “let the buyer beware”. This is a principle of selling because selling is not concerned about informing the buyers about various conditions of buying and usage of the product. It is the responsibility of the buyer to apprise himself of the conditions of buying and usage of the product.

(c)

Explanation: Advertisement helps to increase the image of the organisation. Good image and reputation helps secure more demand for the product.

(b)

Explanation: Promotion mix includes all the activities, which induce the customers to buy the products of an organisation.

(b)

Explanation: Product life cycle means the duration of the life of a product in the market. The stages in the life cycle of a product include introduction stage, growth stage, maturity stage and decline stage.

(b)

Explanation: Advertising means non-personal contact with the consumers. It is done through television, newspapers, magazines, hoardings, etc. Advertising means one-way communication.

(a)

Explanation: Labelling involves informing customers about the quantity, quality, price, manufacturing date, expiry date etc.

(d)

Explanation: Requirements of the customers are of utmost importance in marketing concept because the goods are designed and produced keeping in mind the needs and wants of the consumers. In marketing concept, producers try to produce what the customers want.

(d)

Explanation: In production concept of marketing, the key to earn higher profits is to produce in large quantities.

(a)

Explanation: Shopping goods last longer compared to convenient goods. The examples of shopping goods are TV, Furniture, Car, Motor bike, etc.

(b)

Explanation: Transportation moves goods from producers’ place to consumers’ place. It creates place utility by removing place barrier of producer and consumer.

(b)

Explanation: Branding is a part of labeling, which means providing information to the customer about the product. Branding makes a product identifiable and unique among several similar products.

(c)

Explanation: The place mix or physical distribution mix of marketing mix consists of the activities, which are involved in deciding the number of middlemen in the distribution channel, and the mode of transport to be used while moving the goods from one place to another place.

(c)

Explanation: Advertisement helps in informing the customers about the product and its different uses. It saves shopping time of the customers because they already know everything about the product.

(b)

Explanation: Personal selling is a promotion technique where a seller convinces a potential consumer in face-to-face contact.

(c)

Explanation: In distribution mix, a company decides whether it wants to distribute goods directly to the customers through its authorised showrooms just like Bata India Ltd sells its shoes. The company may also decide to distribute its goods through dealers, e.g., publishers sell books through wholesalers and retailers.

(d)

Explanation: Companies normally exaggerate the benefits of their products and put false claims to influence the consumer so that they buy their products. The consumer thinks that companies are providing authentic information in their advertisement and fall in their trap.

(a)

Explanation: Packing means putting the finished product into bags, packets and boxes to protect them from physical damage. Packing helps the product to reach the target consumer without loss in quantity and in good condition.

(b)

Explanation: Advertisement helps inform the consumers about the product of the company. When a product is popular among the consumers, it is not necessary to provide incentives to middlemen to increase the sales of the product.

(c)

Explanation: Transportation means moving goods from the centre of production to different geographically located centres of consumption. An organisation has to decide whether it would use its own transport facilities or hire transporting agencies for the same. An organisation also decides whether the goods would be transported by road, sea or air.

(b)

Explanation: Promotion of a product helps the customers to know about the product, and companies to induce them to buy the products.

(d)

Explanation: Product concept of marketing recommends an organisation to produce high quality goods. It is assumed that customers will buy superior quality goods.

(c)

Explanation: The organisations spending heavily on advertising ultimately recover this money from the consumers. The companies such as Coco cola or Pepsi spend a huge amount on advertising their soft drinks. They recover this amount ultimately from the consumers. In this way, the consumer has to bear the advertising costs of a company.

(c)

Explanation: Advertising increases materialism and spoils the lifestyle of the people. Advertising stresses on selling a product to the consumers whether they actually need it or not. Tobacco chewing, smoking and drinking wine are social evils that are advertised in one way or the other.

(a)

Explanation: In skimming price strategy, the prices are set high in the starting to make a higher image of the product. The companies, which want to set a high impression of their product in the market, follow this strategy. Rolls Royce cars, Rolex watches, etc. are the brands, which follow skimming price strategy.

(c)

Explanation: Trademark is a kind of brand, which cannot be copied. A brand, which cannot be simulated, is called trademark. The examples of trademark are Lux, Surf, Amul, Ariel, Perk, etc.

(b)

Explanation: Marketing philosophy says that products should be designed as per the needs and requirements of the customers. For this, a producer should know the customer requirements before starting the production. He should avoid producing as per his personal choice and preference and then selling it as it is to the customers without trying to know what they want.

(b)

Explanation: Advertisement creates monopoly of a few rich companies. Small companies do not have as much funds to spend on advertising as big organisations have. In this way, small companies find it difficult to sustain and grow in an environment, whereas big organisations spend a lot of money on advertising.

(a)

Explanation: Personal selling is a technique of promotion mix or marketing. In this technique, the salesman directly interacts with the potential consumer to convince and motivate him to buy the desired product.

(c)

Explanation: Packaging is the container used in the packing of the goods and is also called silent salesman. Selection of correct packaging is very important as it helps the customers in handling the product.

(c)

Explanation: Inventory control ensures that no excess funds are invested in the stock of goods and that the production process is not hampered by the shortage of inventory.

(d)

Explanation: Warehousing helps in maintaining an adequate supply of the product at all times. It helps to avoid out of stock situation, which improves the image of the enterprise and its product. Adequate availability also removes black-marketing.

(a)

Explanation: Packaging means not only packing the product but also selecting the best wrapper or container so that the product is made attractive and convenient for the customer.

(b)

Explanation: Advertisement is one of main sources of income for the media such as newspapers, televisions, etc. Printing newspapers and running televisions channels will not be a profitable venture, if there is no advertisement in these medias.

(b)

Explanation: Publicity is a non-paid form of promotion. It involves mention of the organisation in the print or electronic media to improve its image. Normally companies organise events to gain publicity. For example, some companies organise marathons in big cities and media covers these events free of cost.

(b)

Explanation: In this pricing strategy, initially prices are set low to gain as much market share as possible. Reliance communications launched its mobile services following this strategy. Normally the companies producing daily-use items follow this strategy. The main objective of this strategy is to make the product reach a large population in a very short time after its launch.

(b)

Explanation: As per the marketing concept of marketing management, products should be designed to fulfill the needs of the consumers. Higher profits can be earned in the long-term only if consumers are satisfied at the first place.

(c)

Explanation: A company produces several products of same categories. Every company claims its product to be better than those of others. In this scenario, it becomes difficult for the consumers to find out the product, which he should actually buy to satisfy his needs.

(b)

Explanation: One of the advantages of personal selling or salesmanship is that it facilitates face-to-face communication with the customers. This helps to clarify the doubts and objections of the customers on the spot.

(a)

Expln. In modern marketing sense, market refers to a set of actual and potential buyers of a product or service.

(a)

Expln. Marketing includes many activities that are performed even before goods are actually produced and continue even after the goods have been sold.

(c)

Expln. Marketing helps individuals and groups in obtaining what they need and want.

(c)

Expln. Exchange is vital for the process of marketing, without which marketing will not be possible.

(d)

Expln. Marketing helps these organisations in achieving their goals such as spreading the message of family planning, improving the literacy standards of people and providing medication to the sick.

(d)

Expln. According to marketing concepts, anything that can be of value to the buyer can be termed as a product.

(a)

Expln. Marketing Management refers to planning, organizing, directing and control of the activities which facilitate exchange of goods and services between producers and consumers or users of products and services.

(b)

Expln. Selling is only a part of the process of marketing.

(c)

(a)

(c)

(b)

(d)

Expln. Marketing Planning, Standardisation and Grading, Packaging and Labelling, Branding, Customer Support Services, Pricing of products, Promotion, Physical distribution and warehousing are also functions of marketing.

(b)

(a)

Expln. Marketing Mix is the set of marketing tools that a firm uses to pursue its marketing objectives in a target market.

(d)

(d)

Expln. Industrial products are meant for non-personal and business use for producing other products.

(c)

Expln. Brand or part of a brand that is given legal protection is called trademark.

(a)

Expln. Packaging is also helpful in the marketing of goods.

(d)

Expln. Labelling also aids in promotion of the products.

(c)

Expln. Generally, if the price of a product is increased, its demand comes down.

(b)

Expln. Channels of distribution are set of firms and individuals that take title or assist in transferring title, to particular goods or servicesas it moves from producers to consumers.

(d)

Expln. Apart from the above, accumulation, allocation, assorting and negotiating are also important functions performed by middlemen.

(a)

(c)

(d)

Expln. Advertising is also a very economical mode of communication if large number of people are to be reached.

(d)

Expln. Most of the criticisms against advertising are not fully true. Advertising is therefore, considered an essential function of marketing.

(b)

Expln. Personal Selling involves oral presentation of messages in the form of conversation with one or more prospective customers for the purpose of making sales.

(a)

Expln. Sales promotion refers to short-term incentives like rebate, discount, etc.

(c)

Expln. Publicity generally takes place when favourable news is presented in the mass media about a product or service.