CBSE Class 12 Case Studies In Business Studies - Marketing Management

CBSE Class 12 Case Studies In Business Studies – Marketing Management

MARKETING
Marketing: Definition
Marketing is a social process by which individual groups obtain what they need and want through creating offerings and freely exchanging products and services of value with others. – Philip Kotler
Marketing management is “the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value”.
– Philip Kotler

Elements of marketing mix

Product
Price
Place
Promotion

Market: Definition
A market consists of all the potential customers who have both the ability and willingness to buy a product or service to satisfy their needs or wants

Features of marketing

It seeks to provide what individuals or groups need or want
A market offering is created by the marketer.
It adds value toa product by increasing its utility
It is facilitated through the exchange mechanism

What can be Marketed?

Physical product
Services
Ideas
Persons
Place
Experience
Properties
Events
Infomation
Organisations

Functions of Marketing

Gathering and analysing market information is done to know the taste and preference of the target market.
Marketing planning is needed to meet the marketing objectives of the firm effectively and efficiently.
Product designing and development is carried out to make the product innovative and attractive.
Packaging and labelling are needed for product protection, product identification and product differentiation.
Branding helps to createa unique identity of the products.
Customer support services help to create a good image of the marketer in the eyes of consumers.
Pricing of product is a crucial decision as it may greatly influence the demand for a product.
Promotion helps to boost the sales of a product.
Physical distribution ensures the availability of the product at the right place, at the right time and in right condition so as to facilitate its purchase.
Transportation creates place utility through movement of goods from the production of goods to the place of distribution.
Warehousing creates time utility by providing for the storage during the time gap between the production and distribution of goods.
Standardisation helps to produce goods as per predetermined specifications and grading facilitates their classification into groups on the basis of some criterion like quality, size etc.

MARKETING MANAGEMENT PHILOSOPHIES/CONCEPTS

Basis	The Production Concept	The Product Concept	The Selling Concept	The Marketing Concept	The Societal Marketing Concept
Starting point	Factory	Factory	Factory	Market	Market and society
Main focus	Quantity of product	Quality performance, features of product	Existing product	Customer needs	Customer needs and society’s welfare
Means	Availability and affordability of product	Product improvements	Selling and promoting	Integrated marketing	Integrated market
Ends	Profit through volume of production	Profit through product quality	Profit through sales volume	Profit through customer’s satisfaction	Profit through customer’s satisfaction and social welfare

PRODUCT
Product: Definition
A product is anything of value i.e. a product or service offered to a market to satisfy needs or wants.

Important product decisions include

Determining its layout, features, quality, design etc.
Branding
Labelling
Packaging

A Product includes

Physical product
After sale services
Handling grievances
Replacement of parts etc.

Types of utilities offered by a product

Functional utility
Psychological utility
Social utility

PACKAGING
Packaging: Definition
Packaging is the process of desiging a suitable wrapper or container for a product.

Importance of Packaging

Rising standards of health and sanitation
Useful in self service outlets
Innovative packaging adds value to a product
Facilitates product differentiation

Levels of Packaging

Primary package refers to the immediate container of a product.
Secondary packaging refers to the additional protection provided besides primary package.
Transportation packaging refers further packaging that helps in storage, identification of transportation of the product.

Functions of Packaging

Helps in product identification
Provides protection to the product
Facilitates the use of product
Assists in promotion of the product

BRANDING
Branding: Definition
Branding is the process of assigning a name (brand name), sign or symbol (brand mark) or a combination of all to identify the products of a seller or a group of sellers and to distinguish them from those of the competitors.

Brand Mark: Definition
A brand mark is that part of a brand can be recognised but is not utterable.

Brand Name: Definition
A brand name is that part of a brand which can be spoken.

Trade Mark: Definition
Trade mark is used in context of a registered brand.

Advantages of branding to the customers

Supports in product identification
Certifies quality
Considered to bea status symbol

Advantages of branding to the manufacturers

Facilitates product differentiation
Assists in advertising and display programmes
Facilitates differential pricing
Ease in the launching of new products

Qualities of a good brand name

Short and easy to pronounce, spell and remember
Reflects the functions of the product
Distinctive/easily identifiable
Adaptable can be used in labelling or packaging
Versatile can be used for brand extension
Should not become outdated soon
Capable of being registered

LABELLING
Labelling: Definition
Labelling refers to the process of designing a label for a product which may vary from a simple tag to a complex graphic.

Functions of labelling

Describes the product and specifies its contents
Helps in identification of the product or brand
Enables grading of products
Assists in promotion of products
Provides information required by law

PRICE
Price: Definition
Price is the monetary value paid in consideration for purchase ofa product or service by a buyer to its seller.

Factors affecting price determination

Cost of product
The utility and demand
Extent of competition in the market
Government and legal regulations
Pricing objectives
Marketing methods used.

PHYSICAL DISTRIBUTION
Physical Distribution: Definition
Physical distribution includes all those activities that ensure the availability of the product at the right place, at the right time and in right condition so as to facilitate its purchase.

Determining the components of physical distribution

Order Processing
Inventory
Warehousing
Transportation

Functions of distribution channels

Sorting
Accumulation
Allocation
Assorting
Product Promotion
Negotiation
Risk Taking

Factors determining choice of channel

Product related factors
- Type of product
- Nature of product
- Degree of complexity of product
- Unit value of the product
Company characteristics
- Financial strength of the firm
- Degree of control desired on channel members
Competitive factors
- Policy of firm
Market factors
- Geographical concenteration of buyers
- Quantity purchased
- Size of the market
Environmental factors
- Economic conditions
- Legal constraints

Two main decisions involved in physical distribution

Physical movement of goods from producers to consumers
Choice of channels of distribution

Channels of Distribution: Definition
Channels of distribution refers to the set of individuals and firms that act as intermediaries in the form of agents, wholesalers, retailers etc. that help to transfer the title of ownership to the buyer and also facilitate physical movement of the products.

Types of channels of distribution

Direct channel:
- Manufacturer- consumer (zero level)
Indirect channels:
- Manufacturer- retailer consumer (one level channel)
- Manufacturer- wholesaler- retailer consumer(two level channel)
- Manufacturer-agent wholesaler retailer consumer(three level channel)

PROMOTION
Promotion: Definition
Promotion refers to the set of activities undertaken by a marketer to inform the prospective buyers about the product and persuading them to make a purchase.

Promotion mix

Advertising
Personal selling
Sales promotion
Public relations

ADVERTISING
Advertisement: Definition
Advertisement is a paid form of non¬personal communication undertaken by the marketers to boost the sale of a product or a service.

Objections to Advertising

Adds to cost
Undermines social values
Encourages sale of inferior products
Some advertisements are in bad taste
Confuses the buyers

Features of Advertising

Paid form
Impersonality
Identified sponsor

Role of Advertising

Enhancing customers awareness about the product
Helps in creating demand for both old and new products
Repeated advertisements increases the confidence of the consumers
Improves the public image of the company
Helps to create employment opportunities

PERSONAL SELLING
Personal Selling: Definition
Personal selling refers to a personal form of communication between the seller and the prospective buyer.

Merits of personal selling

It isa flexible tool of promotion
It seeks to provides direct feedback from the prospective buyers

Features of Personal selling

Involves personal form of communication
May lead to the development of long term relationship between the company and a buyer

Qualities of a Good Salesman

He should havea neat and tidy appearance.
He should be decently dressed up and carry himself well.
He should be cheerful and confident in his dealings.
He should be able to communicate assertively.
He should be alert and intelligent so that he is able to mould his sales talk as per the need of the situations.
He should also passess good knowledge about the product that he is selling.

SALES PROMOTION
Sales promotion: Definition
Sales promotion refers to the short term incentives offered by the marketers to promote the sale Of their products

Commonly used Sales Promotion activities

Rebate
Discount
Refunds
Product combinations
Quality gift
Instant draws and assigned gift
Lucky draw
Usable benefit
Full finance @ 0%
Sampling
Contests

PUBLIC RELATIONS
Public Relations: Definition
Public relations refers to the practice of managing communication between an organisation and its public in order to create and maintain a positive image about itself and its products

Roles of Public Relations

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

Functions of the Public Relation Department

It manage relations with the press to present true and correct information about the company.
It undertakes product publicity for new products through sponsorships.
It is proactive in promoting or defending regulations that affect business by maintaining healthy relationships with associations of commerce and industry etc. through newsletters, brochures, articles or arranging for talk shows or speeches of high officials of the company.
It initiates or supports various kinds of corporate social activities.

MIND MAP
cbse-class-12-case-studies-in-business-studies-marketing-management-1

LATEST CBSE QUESTIONS

Question 1.
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 discount voucher to get 20% off for a meal of Rs. 500 or above at a famous eating joint.
Identify the technique of sales promotion used by the company in the above situation.
(CBSE, Delhi 2017)
Answer:
Useable benefits is the technique of sales promotion used by the company in the above situation.

Question 2.
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 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 is run by the resources made available to them by the society. He further 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)
Answer:
The various types of thinking that guided Ginika, Tanish and Rohit in the marketing efforts of their business are described below:

(Ginika) Societal marketing concept: The main focus of this philosophy is on both the needs of the potential buyers as well as concern for the society at large. The ends include profit maximisation through customer satisfaction and social welfare.
(Tanish) Selling concept: The main focus of this philosophy is on existing products. The ends include profit maximisation through sales volume.
(Rohit) Marketing concept: The main focus of this philosophy is on customers needs. The ends include profit maximisation through customer’s satisfaction.

Question 3.
Mediquip Ltd. is a company dealing in distribution of medical equipments. The company recently imported 15000 units of sugar testing machines to test the sugar levels 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, Sandeep, 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 be using the machines. He also suggested that additional trained people may be recruited for the same.
Himanshu, 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 to the additional staff as suggested by Sandeep.
Rahul, a newly appointed Zonal Head of South Zone suggested that since the size of the order is not large, a detailed study of the factors determining the choice of channels of distribution is required before making the right choice.

Identify the factors influencing the choice of channels of distribution which were discussed in the meeting.
Also, explain briefly the other consideration to be taken care of in each factor identified in part (1). (CBSE, Delhi 2017)

Answer:

The factors influencing the choice of channels of distribution which were discussed in the meeting are listed below:
- Product related factors: It has been mentioned that the machines were sophisticated.
- Market related factors: It has been mentioned that the size of the order is not large. (in)
- Company related factors: It has been mentioned that the company was short of funds
  to pay the additional staff which had to be recruited to personally visit and train the hospital staff.
The other considerations to be taken care of in each of these factors is explained below:
- The market related factors:
  - Geographical concentration of potential buyers: If the potential buyers for the firm’s product are geographically concentrated at a few specific places, it is advisable for the marketer to adopt direct channels of distribution. If the market for the product is widely scattered, indirect channels of distribution will be more effective.
  - Size of market: If the size of the target market is small, it is advisable that the marketer adopts methods of direct channels of distribution like online selling, mail order house, personal selling etc. wherein there are no intermediaries between the manufacturer and the consumers. However, if the marketer intends to target larger markets he should adopt indirect channels of distribution (one level, two level or three level) by using intermediaries like wholesalers , retailers etc.
    
    S.No Type of channel Size of market Geographical concentration of potential buyers
    
    1. Direct Small Concentrated
    
    2. Indirect Large Widely scattered
- Product related factors:
  - Nature of product: Considering the technical nature of the industrial products they require short channels i.e., direct channel or involving few middlemen. Moreover, they are made to order and expensive products purchased by selective buyers. Whereas the consumer products, being standardised, less expensive, less bulky, non-technical can be better distributed by long network of channels, involving many middlemen. Moreover they are purchased frequently.
  - Type of product: If the product under consideration is perishable like fruits, vegetables, and dairy products short channels should be adopted in order to preserve their quality. Whereas non-perishable products like toiletry products (e.g., shampoo , toothbrush, deodorants etc.), groceries (cooking oil, pulses etc.), fabrics can be best marketed through longer channels so as to reach wide spread consumers.
  - Unit value of the product: If the unit value of a product is low as in case of most convenience products, long channels are considered more appropriate whereas products of high value should be sold through shorter channels.
    
    S.No Type of channel Nature of product Type of product Unit value of the product
    
    1. Direct Perishable Industrial More
    
    2. Indirect Non- perishable Consumer Less
- Company related factors:
  - The degree of control it wants to hold on other channel members: Short channels may be used if the management of the firm desires to have greater control on the channel members, but if the management does not plan to exercise strict control over the middlemen indirect channels or large number of intermediaries may be opted for.
    
    S.No Type of channel The degree of control it wants to hold on other channel members
    
    1. Direct Concentrated
    
    2. Indirect Widely scattered

Question 4.
Mansi took her niece Ridhima for shopping to ‘Mega Stores’ to buy her a bag for her birthday. She was delighted when on payment of the bag she got a pencil box along with the bag free of cost. Idenfity the technique of sales promotion used by the company. (CBSE, OD 2017)
Answer:
Product combination

Question 5.
“Time Line” watch manufacturing company is a renowned company marketing watches. It performs various activities like, market analysis, product designing or merchandising,
packaging, warehousing, branding, pricing, promotion and selling. The company maintains good customer relations through various follow up activities. This helps the company in procuring repeat sales orders.

Name the concept related to the activities mentioned in the above paragraph.
Explain any two features of the concept identified in part (1) (CBSE, Sample Paper, 2017)

Answer:

Marketing is the concept related to the activities mentioned in the above paragraph.
The two features of marketing are described below:
- Needs and wants: Marketing is a social process that seeks to satisfy the needs and wants of individuals and organisations. Needs are basic to human beings like food, clothing and shelter and do not relate to a particular product. Whereas wants are culturally defined human needs which are shaped by multiple factors like personality, religion, culture etc. Needs are limited whereas wants are unlimited. Therefore, the success of marketing lies in the competence of the marketer to identify needs of target customers and develop products to satisfy such needs effectively.
- Creating a market offering: The complete offer for a product or service possessing certain specific features like size, quality, colour etc. is known as a market offering. Thus, the success of the marketers lies in their proficiency to create a market offering in accordance with the needs and wants of the target market. For example a pack of 100 ml of mango juice is available for ? 20.

Question 6.
“Coconut Joy Ltd.” are the manufacturer of vegetarian frozen dessert food products made with coconut milk, agave syrup and other certified ingredients. The founders of the company Lovely and Lalita originally developed this treat to meet their own needs but found that their friends and families around were also keen to use the products. It was not only the vegetarians, but also those who could not get enough environment friendly sustainable food, that appreciated the product. It did not take long for Lovely and Lalita to recognise the potential of their little venture. In the beginning they started from their home with the product being sold through local family parties that enable guests to personally meet the owner. This helped to establish strong connections with the prospective buyers and the company could put the product on shelves of natural food store. The company used* all marketing activities to grow and expand. The company began sponsoring booths at festivals, drawing attention to its newly created vegetarian products. It also disseminated relevant information to media about its products and the people who helped in building the company’s reputation. Lovely and Lalita were invited for an interview with one of the leading TV channels in which they talked about their environment friendly vegetarian products. To show its gratitude to customers, local business and government officials who supported the company from the beginning, “Coconut Joy Ltd.” hosted a gala event and involved all of them to raise funds for a few local NGO’s. The company also asked its fans and customers to send songs and poetry conveying their impression about “Coconut ‘Joy’s Ltd.” products.

Identify and explain the communication tool used by “Coconut Joy Ltd”. .
Briefly explain the role of the tool identified in (1) above. (CBSE, Sample Paper, 2017)

Answer:

Public relations is the communication tool used by “Coconut Joy Ltd”. Public relations refers to the practice of managing communication between an organisation and its publics in order to create and maintain a positive image about itself and its products.
The role of public relations department is described below:
- Press Relation: It manages relations with the press to present true and correct information about the company. Thus, public relations helps to create a positive image about the company in the eyes of various interest holders like consumers, government, suppliers etc.
- Product Publicity: It undertakes product publicity for new products through sponsorships. Thus, it helps in launching new products as they may be accepted easily because of good reputation of business.
- Corporate Communication: It promotes image of the company through different ways of corporate communication like publication of newsletters, brochures, articles or arranging for talk shows or speeches of high officials of the company.
- Lobbying: It is proactive in promoting or defending regulations that affect business by maintaining healthy relationships with associations of commerce and industry, government officials and different ministers in charge of corporate affairs etc.

Question 7.
Good Living Ltd. manufactures mosquito repellent tablets tables. These tablets are packed in strips of 12 tablets each. Each of these strips is packed in a cardboard box, 48 such boxes are then placed in a big corrugated box and delivered to various retailers for sale. State the purpose of packaging the tablets in a corrugated box. (CBSE, Sample Paper 2016)
Answer:
The purpose of packaging the tablets in a corrugated box is to facilitate their transportation, warehousing and easy identification.

Question 8.
Shreemaya Hotel in Indore was facing a problem of low demand for its rooms due to off¬season. The Managing Director (MD) of the hotel, Mrs. Sakina was very worried. She called upon the marketing Manager, Mr. Kapoor for his advice. He suggested that the hotel should announce an offer of ‘3 Days and 2 nights hotel stay package’ with free breakfast and one-day religious visit to Omkareshwar and Mahakaleshwar Temples. The MD liked the suggestion very much. Identify the promotional tool which can be used by the hotel through which large number of prospective pilgrimage tourists all over the country and abroad can be reached, informed and persuaded to use the incentive.
(CBSE, Sample Paper 2016)
Answer:
Advertising is the promotion tool that can be used by the hotel.

Question 9.
“Every time I travelled, people asked me to bring them chips, khakra and pickles from all over the country,” says Anoushka. Finally, she and her colleague, Sumeet, decided to make a business out of it. They launched a Facebook page, asked people what they wanted, and they came up with a list of about 100 places and tied-up with two dozen vendors to begin with. They were servicing people from Jaipur who wanted spices from Kerala, people from Panipat who wanted halwa from Jammu and people from Delhi who ordered fresh tea leaves from Darjeeling. Through their business, they wished to bridge the gap between sellers and buyers. The business is now worth millions.
Explain any two important activities that Anouskha and Sumeet will have to be involved in for making the goods available to customers at the right place, in the right quantity and at the right time.
(CBSE, Sample Paper 2016)
Answer:
Anoushka and Sumeet need to perform the activities involved in physical distribution of goods.
Two such activities are explained below:

Transportation: It creates place utility by facilitating the movement of goods from the place of production to the place of distribution. In the absence of efficient, reliable and cost effective transportation, facility marketing of goods is difficult.
Warehousing: It creates time utility by providing for the storage of goods from the time they are produced till the time they are sold. Every marketer needs to take this decision wisely in order to create a balance between the level of customer service and cost of warehousing.

Question 10.
A company was marketing juicers which were very popular due to their quality and after sales services provided to the customers. The company was a leading company in the market and earning huge profits. Because of huge profits, the company ignored the after sales services. As a result, its relations with customers got spoiled and the image of the company in the public was damaged. The top management became concerned when the profits for the current quarter fell steeply. On analysis, it was revealed that ignoring the after sales services was its reason. Therefore, the company took all possible measures to protect and promote its favourable image. As a result, the goodwill of the company improved in the society.

Name and state the communication tool used by the marketer in the above case to improve its image.
Also explain the role of the tool as identified in part (1). (CBSE, OD 2016)

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

Name and state the communication tool used by the marketer in the above case to improve its image.
Also explain role of the tool as identified in part (1). (CBSE, Delhi 2016)

Answer:

Public Relations is being used as a promotional tool by the marketer. It refers to the practice of managing communication between an organisation and its publics in order to create and maintain a positive image about itself and its products.
The role of public relations as a promotional tool is described below:
- Public relations helps to create a positive image about the company in the eyes of various interest holders like consumers, government, suppliers etc .
- It helps in launching new products as they may be accepted easily because of good reputation of business.
- It helps the business to reinstate itself in the wake of controversies or prejudices etc.

Question 11.
Maruti Vega Ltd. entered into the market with coloured televisions and have now introduced products like audio systems, air-conditioners, washing machines, etc. The company is not only offering the products but also handling complaints and offering after-sales services. Identify the element of marketing mix discussed here. (CBSE, OD 2015)
Answer:
Product is the element of marketing mix discussed here.

Question 12.
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 in the 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 Internt 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 it was difficult to achieve uniformity in the output. To differentiate the product from its competitors, she gave it the name of ‘Malabari Organic Rice’ and classified it into three different varieties, namely — Popular, Classic and Supreme, based on the quality. She felt that these names would help her in product differentiation.
Explain the three functions of marketing with reference to the above paragraph (CBSE, OD 2015)
Answer:
The three functions of marketing with reference to the above paragraph are described below:

Gathering and analyzing market information: The prime focus of marketing is to ‘find wants and fill them’. Therefore, it is absolutely essential for a company to study the needs and preferences of its target market in order to satisfy their needs and wants optimally.
Standardisation and grading: Standardisation refers to the process of manufacturing goods as per predetermined specifications. Grading refers to the process of classifying goods on the basis of certain criteria like quality, size etc. Usually, agricultural products are subject to grading.
Branding: Branding is the process of assigning a name (brand name), sign or symbol (brand mark) or a combination of all to a product. It is considered to be a very important decision by the marketers because it facilitates product differentiation. This helps the company to obtain a desirable market share.

Question 13.
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 the overall protection of the planet.
Identify the marketing management philosophy being followed by ‘Beauty Product Ltd’.
(CBSE, Delhi 2015)
Answer:
Societal Marketing Concept

Question 14.
‘Haryaram’ is a famous chain selling a large variety of products in the Indian market. Their products include chips, biscuits, sweets and squashes. It charges a comparatively higher price than its competitors as it sells quality products. Besides, it offers regular discounts to its customers and easy credit terms to its retailers. It has five of its own retail shops. It also sells its products through various grocery stores so that the products are made available to customers at the right place, in the right quantity and at the right time. It regularly uses different communication tools to increase its sales.
The above paragraph describes the combination of variables used by Haryaram to prepare its market offering. Identify and explain the variables. (CBSE, Delhi 2015)
Answer:
The combination of variables used by Haryaramto prepare its market offerings are described below:

Product: “Their products include chips, biscuits , sweets and squashes.”
A product is anything of value i.e. a product or service offered to a market to satisfy its needs or wants. A product includes physical product, after ..sale service, handling grievances etc. Every marketer needs to constantly review and revise its products in order to enhance customer’s satisfaction and have a competitive edge.
Price: “It charges a comparatively higher price than its competitors.”
Price is the monetary value paid in consideration for purchase of a product or service by a buyer to its seller. It is a very crucial decision for the marketers as consumers are very sensitive to the pricing. The factors affecting price determination are cost of product, the utility and demand, extent of competition in the market, government and legal regulations, pricing objectives and marketing methods used.
Place: “It has five of its own retail shops.”Or “It also sells its products through various
grocery shops.”
It is considered an important element of marketing mix because it includes all those activities that help in making the goods and services available to the prospective buyers in the right quantity, at the right time and in right condition. The two main decisions involved in physical distribution are physical movement of goods from producers to consumers and choice of channels of distribution.
Promotion: “It regularly uses different communication tools to increase its sales.”
Promotion refers to the set of activities undertaken by a marketer to inform the prospective buyers about the product and persuading them to make a purchase. The various components of promotion mix are advertising, sales promotion, personal selling and public relation.”

Question 15.
Radha found a worm crawling out of newly opened tetra pack of juice manufactured by a reputed company, Zest Ltd. She went back to the shopkeeper from whom the pack was purchased who directed her to call up the customer care centre. When all her efforts fell free, she went to a consumer activist, group to seek advice. The group decided to help Radha and take measures to impose restrictions on the sales of the firm’s products of the particular batch and urge customers to refrain from buying the products of the company. Zest Ltd. lost its image in the market. The CEO gave the responsibility of bringing back the lost image of the company to the Manager.

Identify the concept of marketing management which will help the Manager to get the firm out of the above crisis.
Also explain the role of above identified concept by stating any two points.
(CBSE, Sample Question Paper 2015)

Answer:

Public relations will help the manager to get the firm out of the above crisis.
The role of public relations as a promotional tool is described below:
- Public relations helps to create a positive image about the company in the eyes of various interest holders like consumers, government, suppliers etc.
- It helps in launching new products as they may be accepted easily because of good reputation of business.
- It helps the business to reinstate itself in wake of controversies or prejudices etc.

Question 16.
Zoom Udyog, a car manufacturing company, has started its business with Zoom-800 and slowly launched Zoom-1000, Wagon-Z, Swy-fy etc. and offered various services like after sales services, availability of spare parts, etc. Identify the element of marketing mix referred here.
(CBSE, Sample Question Paper 2015)
Answer:
Product is the element of marketing mix referred here.

Question 17.
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 on the packets that led to many accidents.

Identify and explain the important product-related decision that was not taken into consideration by the company.
Also, identify any two values which were violated by the company. (CBSE, Annual 2014)

Answer:

The company has ignored ‘Labelling’. It is an important product-related decision. Labelling refers to the process of designing a label for a product containing product description and other relevant information which is likely to affect a prospective buyers decision in making a purchase. It may vary from a simple tag to a complex graphic.
The two values being violated by the company are:
- Abiding by law as child labour has been employed
- Concern for human life as appropriate warnings were not placed on the label.

Question 18.
ABC Crackers Ltd., a fire-cracker manufacturing company, launched some new products on the eve of Diwali in the market which attracted many buyers. To meet the increasing demand, the company employed people from nearby villages where there was a lot of unemployment. Because of the good behaviour of the management with the employees, more and more people wanted to join the company. As the products were in great demand in the market, a competitor imitated the products. The products of the competitor were not accepted by the consumers as it was a status symbol to buy the products of ABC Crackers Ltd. because of their quality.

Identify and explain the product-related decision because of which consumers preferred the products of ABC Crackers Ltd.
Also, identify any two values which ABC Crackers Ltd. wanted to communicate to the society. (CBSE, OD 2014)

Answer:

Branding is the product-related decision because of which consumers preferred the products of ABC Crackers Ltd.
Branding is the process of assigning a name (brand name), sign or symbol (brand mark) or a combination of all to a product. Branding facilitates product differentiation, assists in advertising and display programmes, facilitates differential pricing , promotes consumers loyalty etc.
The two values that ABC Crackers Ltd. wants to communicate to the society are:
- Generating employment opportunities
- Providing good working environment.

Question 19.
As a project work in Business Studies, the Commerce students of Himachal Public School, Himachal Pradesh thought of preparing apple jam from the apples grown in their school premises and sell it in the school annual fete. They approached the Principal who not only appreciated the students but also gave her consent for the same. The school decided to donate 50% of the revenue generated from the sale to a nearby orphanage. After the school fete, the school also decided to extend this project by providing employment to visually challenged and disadvantaged sections of society on regular basis.

Explain any two product-related decisions which the students had to take.
Suggest any two functions that the ‘label’ of the jam-bottle must perform.
Identify two values communicated to society by this project of Himachal Public School, Himachal Pradesh. (CBSE, OD 2013)

Answer:

The two product-related decisions which the students had to take are branding and packaging.
The two important functions that the label of the jam -bottle must perform are:
- Describe the product and specify its contents: The label on the jam bottle must provide information about the core function of the product i.e. how and why is the product is likely to be beneficial to the prospective buyer. It should educate them about the usage and precautions related to the product. It also gives detailed information about the ingredients of the product.
- Helps in identification of the product or brand: The label should contain the logo, brand name, tagline, name and address of the manufacturer etc. of the product for easy identification of the product.
The two values communicated to the society by the project of Himachal Public School are:
- Generating employment opportunities
- Humanity

Question 20.
Ajay was appointed as the marketing head of Alfa Enterprise, a manufacturer of toothpastes and toothbrushes. His target sale was 2000 units a month. Apart from thinking about various channels of distribution to achieve the target, he himself started visiting schools in backward areas. He found that even after taking various steps and counselling, some school children had not started brushing their teeth. He investigated and found that they could not start brushing their teeth. He investigated and found that they could not afford to buy toothbrush and toothpaste. So with due permission, he started donating 200 toothbrushes and toothpastes every month to the school.

Identify the channel of distribution Ajay would adopt for the distribution of toothpaste and toothbrushes and justify it by giving one reason.
State any two values which Ajay ants to communicate to society. (CBSE, Delhi 2013)

Answer:

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

Question 21.
Amar is engaged in the manufacturing of refrigerators. He surveyed the market and found that customers need a refrigerator with a separate provision of water cooler in it. He decided and launched the same refrigerator in the market. Identify and explain the marketing philosophy involved.
(CBSE, Delhi 2012)
Answer:
Amar is following the philosophy of marketing concept. The prime focus of marketing concept is to ‘find wants and fill them’. Therefore, the marketer first assesses the needs and preferences of its target market and manufactures products accordingly in order to satisfy their needs and wants optimally. It aims at profit maximization through customer satisfaction.

Question 22.
‘An important task in the marketing of goods relates to designing a label as it provides useful and detailed information about a product.’ In the light of the above statement, draw a label for a ‘liquid soap’ and highlight the important information to be provided on it. (CBSE, Delhi 2010)
Answer:
A label for a ‘liquid soap’.
cbse-class-12-case-studies-in-business-studies-marketing-management-4

Question 23.
Mansi, a shoe manufacturer for school students, decided to maximise profits by producing and distributing shoes on a large-scale and thus reducing the average cost of production.

Identify the marketing management philosophy adopted by Mansi.
Explain this philosophy on the basis of the following:
- Main Focus
- Means and Ends (CBSE, OD 2012)

Answer:

Mansi has adopted the production philosophy.
The main focus of this philosophy is on the quantity of products produced.
Means: The production philosophy can be brought into effect by making products affordable and widely available.
Ends: The production philosophy aims at maximizing profits through high volume of production.

ADDITIONAL QUESTIONS

Question 1.
Unilever has found a new way to make ice creams by using an ingredient called ‘ice structuring protein’ which is widely found in nature especially, in fishes which allows them to survive in freezing arctic waters. Combining ISP with stabiliser technology allows to make ice creams that don’t melt so easily thereby making it more convenient for small children and consumers in hot countries.
In the context of above case:

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

Answer:

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

Question 2.
Ranger India Limited, is an automobile manufacturer in India. It makes 1.5 million family cars every year. That’s one car every 12 seconds. It has a sales network of company approved retailers that spreads across 600 cities.
In the context of above case:

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

Answer:

Indirect channel: One level channel of distribution adopted by the company

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

Size of market: If the size of the target market is small, it is advisable that the marketer adopts methods of direct channels of distribution like online selling, mail order house, personal selling etc. wherein there are no intermediaries between the manufacturer and the consumers. However, if the marketer intends to target larger markets he should adopt indirect channels of distribution (one level, two level or three level) by using intermediaries like wholesalers, retailers etc.
Geographical concentration of potential buyers: If the potential buyers for the firm’s product are geographically concentrated at a few specific places, it is advisable for the marketer to adopt direct channels of distribution. If the market for the product is widely scattered, indirect channels of distribution will be more effective.

Quantity purchased: If the potential customers are likely to buy the firm’s product in small quality, indirect channels of distribution should be used by the marketer whereas if the order size is expected to be big, direct channels of distribution may be adopted.

S.No	Type of channel	Size of market	Geographical concentration of potential buyers	Quantity purchased
1.	Direct	Small	Concentrated	Size of order is large
2.	Indirect	Large	Widely	Size of order is small

Question 3.
As a global leader in the consumer electronics and entertainment industries, Sony has set forth ‘Road to Zero environmental plan’, to achieve a zero environmental’ effect by the year 2050 by producing world-class products in a manner that both protects and promotes a healthy and sustainable planet.
In the context of above case:

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

Answer:

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

Question 4.
As the number of people making online purchases has increased manifolds, there is a growing concern about the disposal and management of packaging waste. Every item bought is delivered with excess packaging and sometimes even non-biodegradable materials are used.
In the context of above case:

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

Answer:

Secondary packaging and Transportation packaging.
The functions of packaging in the marketing of goods and services is explained below:
- Product Identification: Packaging facilitates the identification of the product with the use of different colours like wrapper of maggi noodles is red whereas yippe noodles are sold in orange colour packaging. Also, the shape of different brands of cold drinks bottles is different.
- Product Protection: One of the basic purposes of packaging is to safeguard the contents of a product from any kind of damage due to mishandling, adverse weather conditions etc. during the activities related to physical distribution like storing, transportation etc.
- The marketers should use biodegradable packaging material and packaging should enhance the usability of the products.

Question 5.
Rastro Inc., is a multinational corporation that creates consumer electronics, personal computers, servers and computer software. The company also has a chain of retail stores known as Restro Stores. Despite high competition, Restro has succeeded in creating demand for its products, giving the company power over prices through product differentiation, innovative advertising and ensured brand loyalty.
In the context of above case:

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

Answer:

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

Question 6.
Rupali intends to start an enterprise that produces chocolates. Initially, in order to assess the taste and preferences of the people about the chocolates. She used social media and online surveys. Thereafter, she prepared a detailed SWOT (strengths, weaknesses, opportunities and threatsjanalysis of her enterprise to devise a strategy that will give her an edge over the competitors. Based on her analysis of the market, she decided to launch sesame and jaggery based chocolates under the brand name ‘Desi Delight’. She has decided to fix up the price of chocolates relatively at lower level in the beginning and later on as the demand picks up she may revise the prices.
In the context of above case:

Identify the elements of marketing mix being taken into consideration by Rupali.
Explain briefly the functions of marketing highlighted here.
Do you think she has selected an appropriate brand name for her product? Why or why not? Give a reason for your answer.

Answer:

The elements of marketing mix being taken into consideration by Rupali are Product and Price.
The functions of marketing highlighted here are explained below:
- Gathering and analysing market information: The prime focus of marketing is to ‘find wants and fill them’. Therefore, it is absolutely essential1’for a company to study the needs and preferences of its target market in order to satisfy their needs and wants optimally.
- Product designing and development: Every marketer strives to achieve his marketing objectives by creating offerings to satisfy a need or a want. Therefore, one of the core function of marketing is to develop the product in the most effective and efficient way. Every marketer endeavours to add value to his product by introducing constant innovations in the product to enhance both its utility and attractiveness in the eyes of the potential buyers and gain a competitive edge.
- Pricing: Price is the monetary value paid in consideration for purchase of a product or service by a buyer to its seller. The process of determining the price of a product or service is called pricing. It is a crucial decision for the marketers as consumers are very sensitive to the pricing. The factors affecting price determination are cost of product, the utility and demand, extent of competition in the market, government and legal regulations, pricing objectives and marketing methods used.
Yes, she has selected an appropriate brand name ‘Desi Delight’ for her product as the name reflects on the product’s benefits and qualities. The word ‘Desi’ indicates that the product contains indigenous ingredients like sesame and jiggery and Delight denotes the pleasure that the person is going to get on consuming the delicious chocolates.

Question 7.
Reema, Vibha and Ratna are three women entrepreneurs who are engaged in dealing with handicraft goods under the brand name ‘Gujkriti’ through a chain of retail outlets at five different places in Delhi. They outsource all their products from tribal and rural women in the state of Rajasthan. Reema is of the opinion that in order to increase the sale of their products, they should advertise about it on television. But, Ratna is arguing that advertisement expenses will add to cost of operation. Whereas Vibha is insisting that they should set up an online portal to market their products across the globe.
In the context of above case:

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

Answer:

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

Question 8.
Ravi has decided to set up a small factory to manufacture hand wash and toilet soaps in a rural area in Haryana. In order to promote the product initially, he plans to distribute small sachets of the hand wash as free samples, besides deploying a team of salesmen to sell the product door to door in the different parts of the city. Moreover, he has decided to conduct a hygiene camp in rural areas wherein he will distribute a kit comprising of hand wash and soap and also plans to organize street plays to highlight the importance of hygiene and sanitation in our daily lives.
In the context of above case:

Identify the tools of promotion being taken into consideration by Ravi.
What are the qualities that he should consider while selecting salesmen? (any three)
List any two values that the he wants to communicate to the society.

Answer:

The tools of promotion being taken into consideration by Ravi are Sales Promotion and Personal Selling.
Some of the qualities that he should consider while selecting salesmen are described below:
- Physical appearance: A salesman should have a neat and tidy appearance. He should be decently dressed up and carry himself well.
- Social qualities: A salesman should be cheerful and confident so that he is able to communicate assertively without loosing his temper easily.
- Tactfulness and knowledgeable: A good salesman should be alert and intelligent so that he is able to mould his sales talk as per the need of the situation. He should also possess good knowledge about the product he will be selling.
The two values that the he wants to communicate to the society are:
- Improvement in the standard of living of the people
- Educating them about hygiene/cleanliness

Question 9.
The Fancy Store’ is a popular retail shop dealing in all kinds of fashionable items. Harish, the owner of the store believes in pushing the sale of his products through aggressive sales promotion techniques. Therefore, throughout the year he keeps offering various kinds short¬term incentives to the buyers like discounts, quantity gifts, product combinations etc. On the contrary, his brother Ramesh who also runs a retail shop dealing in all kinds of fashionable items in the nearby market tries to first assess the needs and wants of the buyers while deciding upon the product range. He also believes in building long term relations with the buyers and therefore offers only good quality products and handles the complaints of the buyers if any with politeness and patience.
In the context of above case:

Identify the two different marketing concepts discussed in the above para.
Distinguish between them on the basis of meaning, scope and strategies used.

Answer:

The two different marketing concepts discussed in the above paragraph are:
- The Selling concept
- The Marketing concept

Difference between Selling and Marketing is given below:

S. No	Basis	Selling	Marketing
1.	Meaning	Selling involves promoting the products and transferring their possession and title of ownership from the seller to the buyer.	Marketing is a social process by which individual groups obtain what they need or want through creating offerings and freely exchanging products and services of value with others.
2.	Scope	Selling is a narrow term. It is part of marketing.	Marketing is a wider term and includes selling.
3.	Strategies used	Selling involves use of aggressive promotional techniques to increase the sale of products and services.	Marketing adopts an integrated approach which gives equal importance to the strategies with regard to all the variables of marketing mix i.e. product, price, place and promotion.

Question 10.
Arvind is planning to start a company manufacturing room fresheners. He intends to use natural fruit extracts for adding fragrance to them. He estimates an investment of Rs. 20 crores to set up the factory. As it is difficult for him to raise the entire capital amount alone, he gives a partnership offer to his school friend, Sanjay who is an angel investor. Sanjay, after being convinced about the feasibility of the project, accepts his offer. Sanjay tells Arvind that they should also focus on other important decisions related to the product ‘room fresheners’ besides deciding about its features, variety and quality. Branding is one of the important such decision.
In the context of above case:

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

Answer:

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

Question 11.
Somya Patel, 35, a fitness trainer, woes about a popular consumer durable brand saying that “They show a lot of advertisements for their products on television , but when you go to the store, you find these things out of stock all the time. Then why should the company put advertisements when they can’t meet the demand,” she questions.
In the context of above case:

Identify the tool of promotion mix being referred to in the above lines.
List any two product related factors that are likely to affect the choice of channel of distribution.
Which element of marketing mix is being overlooked by the company? Why is it considered as an important element?

Answer:

The tool of promotion mix being referred to in the above lines is Advertisement.
The two product related factors that are likely to affect the choice of channel of distribution are:
- Type of product (consumer or industrial)
- Unit value of product (low or high)
Place is the element of marketing mix being ignored by the company. It is considered important because it relates to making the goods and services available to the prospective buyers in the right quantity at the right time and in right condition.

Question 12.
Suraj is a small entrepreneur involved in the manufacturing of hair wax. He finds that cost of production of 100 gm of hair wax is Rs. 250. He has decided to keep a margin of 15% as profit. Moreover, he has assessed that there is a free competition in this product segment.
In the context of above case:

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

Answer:

Pricing is the function of marketing being performed by Suraj.
The two factors that he is taking into consideration while performing the pricing function are as follows:
- Cost of product: The price of the product is determined by adding the desired profit margin to the cost of production, selling and distribution. The cost is of three types namely the fixed cost, variable cost and semi-variable cost.
- Degree of competition: The nature and extent of competition in the market is another key factor relating to the pricing decision. If the firm faces free competition in the market it is likely to fix the price of the product at lower levels. But if it enjoys monopoly, then the prices are likely to be fixed at higher levels.

Question 13.
After doing a diploma in entrepreneurship, Farihad started his own confectionary business. He started doing a lot of hard work and used the recipes taught by his grandmother in various preparations. He also learnt many recipes from online sites and television programmes. He decided to keep the price of the products low initially and also informed his customers about the goodness of the items sold by them. However, he didn’t mention on the package of each item weather it contained eggs or not. As a result, vegetarian people became hesitant in buying things from his shop as they had to verbally inquire from him about the inclusion of eggs in the preparation of various items.
In the context of above case:

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

Answer:

The important aspect related to the marketing of products which has been ignored by Farihad is Labelling.
The three important functions performed by labelling are :
- Describes the product and specifies its contents: Labelling provides information about the core function of the product i.e. how and why the product is likely to be beneficial to the prospective buyer. It educates them about the usage and precautions related to the product. It also gives detailed information about the ingredients of the product.
- Helps in identification of the product or brand: The label contains the logo, brand name, tagline, name and address of the manufacturer etc. of the product which helps in easy identification of the product.
- Enables grading of products: Different coloured labels are also used by the marketers for grading of the products on the basis of flavours, quality etc. so that the buyers can easily choose a product as per their requirements.
The Right to information is being overlooked by the company in the above mentioned case. According to the Right to information, a consumer has the right to get complete information about the product he /she intends to buy including its contents, date of manufacture, date of expiry, price, quantity, directions for use etc. Also, as per law, it is mandatory for the marketers to provide complete information about the product/ service to the buyers.

Question 14.
‘Shudh Hava Ltd/ is engaged in manufacturing of air conditioners and desert coolers. The company offers a wide range of products to meet the requirements of people from varied income groups. Recently the company has developed a new product, an air purifier that improves the quality of air by filtering out all allergens and microbes. The company introduced the product on two variants namely ‘Nano Tech’ and ‘Nano Tech Premium’. In order to persuade people to buy the product it is offering easy payment options in equal monthly instalments for different time periods. Moreover, every buyer will be offered ‘scratch a card’ option to win instant gifts like decorative items, T-shirts etc. The company is also planning to organise competitive events based on skill and luck in various malls in different cities.
In the context of above case:

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

Answer:

The type of promotion strategy adopted by the company to boost the sales of air purifiers is Sales Promotion.
Sales Promotion includes the various types of short term incentives offered by a marketer to increase the sale of a product or service.
The various techniques of sales promotion being used by the company are listed below:
- Full finance @ 0% – “it is offering easy payment options in equal monthly instalments for different time periods.”
- Instant draws and assured gifts – “every buyer will be offered ‘scratch a card’ option to win instant gifts like decorative items, T-shirts etc.”
- Contests – “The company is also planning to organise competitive events based on skill and luck in the various malls in the different cities.”
Right to Choose is the consumer right being promoted by the company

Question 15.
Nischay, after completing his masters in computer engineering decided to start his own business. Fie visited his uncle Mr.Jaiprakash who has been running a successful business in web designing. Fie shared with Nischay that the main reason for his success in the business lies in his approach of building a life time relation with his clients. Therefore, his business is not only restricted to designing web sites according to the specifications of the clients but also providing continuous online assistance to them and handling their grievances effectively and doing all this at a profit. lie provides these services at competitive prices. Anybody interested in getting the web solutions can contact him through his website. Moreover, whenever the market is sluggish he tries to create demand by offering short-term incentives to the buyers.
In the context of above case:

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

Answer:

Marketing management is “the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value”- Philip Kotler
The various elements of marketing mix being pursued by Mr. Jaiprakash are as follows:
- Product: “his business is not only restricted to designing “Web sites according to the specifications of the clients but also providing continuous online assistance to them and handling their grievances’ effectively.”
  A product is anything of value i.e. a product or service offered to a market to satisfy needs or wants. A product includes physical product,after sale service, handling grievances etc. Every marketer needs to constantly review and revise his products in order to enhance customer’s satisfaction and have an competitive edge.
- Price: “doing all this at a profit. He provides these services at competitive prices.” Price is the monetary value paid in consideration for purchase of a product or service by a buyer to its seller. It is a very crucial decision for the marketers as consumers are very sensitive to the pricing. The factors affecting price determination are cost of product, the utility and demand, extent of competition in the market, government and legal regulations, pricing objectives and marketing methods used.
- Place: “Anybody interested in getting the web solutions can contact him through his website.”
  It is considered important element of marketing mix because it includes all those activities that help in making the goods and services available to the prospective buyers in the right quantity, at the right time and in right condition. Two main decisions involved in physical distribution are physical movement of goods from producers to consumers and choice of channels of distribution.
- Promotion: “Moreover, whenever the market is sluggish he tries to create demand by offering short-term incentives to the buyers.”
  Promotion refers to the set of activities undertaken by a marketer to inform the prospective buyers about the product and persuading them to make a purchase. The various components of promotion mix are advertising, sales promotion, personal selling and public relation.

Question 16.
In today’s world, through social media, news spread in a flash. Moreover, if it is bad news, it acquires a speed that is virtually impossible to stop. Hence, all corporates are more susceptible to a tarnished image today than in any other day and age. The loss of goodwill may lead to decreased revenue, loss of clients or suppliers and fall in market share. Over the years, therefore, most of the companies have set up a separate department to manage the public opinions about them. The department works in close coordination with the various interest groups like consumers, government, suppliers etc. and strives to handle effectively if any controversies arise.
In the context of above case:

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

Answer:

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

Question 17.
Traditional trade or kirana stores constitute 90% of the FMCG (fast moving consumer goods) business in India. HUL is the market leader in FMCG with over 60 lakh outlets. According to industry estimates, Patanjali products are currently available in two lakh traditional retail outlets. ‘Availability of the product’ is the single largest driver of FMCG sales. A shopper research suggests that 30%-40% consumers shift preference if their favourite brand is not available at the store.
In the context of above case:

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

Answer:

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

Question 18.
Arun and Rukun are good friends. After doing a fashion designing course from a reputed institute, they have set up a garment factory in the rural area of Faridabad to manufacture trendy casual wear like jeans, T-shirts, shirts etc. under the brand name ‘Swatantra’. They have employed people from the nearby villages itself in the factory. Moreover, they wish to sell the products through local retailers in the villages and also through ‘Flipkart’.
In the context of above case:

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

Answer:

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

Question 19.
Yogesh buys a new laptop for his son Mukesh on his birthday from a company owned retail outlet. After a few months, some parts of the laptop get damaged in 3, road accident. Yogesh approaches the dealer to get the damaged parts replaced with the new ones. But, he is told that the company does not provide any after sale service to the customers. Yogesh feels very dissatisfied as a consumer and woes that he will never buy this companies product ever again.
In the context of above case:

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

Answer:

The function of marketing being ignored by the company is customer support services.
As a business advisor, I would suggest the introduction of the following services that will be very effective in enhancing brand loyalty for any such product:
- Setting up a separate department for handling consumer complaints.
- Providing 365 days x 24 x 7 online assistance to the buyers for any maintenance or technical issues.
Yogesh can file a complaint in the District forum

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Refer for an excellent marketing business with nr7 pattern.

CBSE Class 12 Case Studies In Business Studies – Marketing Management

CBSE Class 12 Case Studies In Business Studies – Marketing Management

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