CUET Entrepreneurship-Chapter-Marketing Function

(c)

Exchange function of marketing includes buying and selling, as they are concerned with the transfer of goods from the producer to the consumer.

(a)

Market research is an important activity for an entrepreneur, which helps in the systematic investigation of facts relating to the market.

(b)

The marketing begins with market research, as an entrepreneur needs to conduct detailed analysis with regard to various aspects of the market behavior.

(b)

The marketing functions can be broadly classified into three components: Exchange functions, functions of physical supply and facilitating functions.

(c)

Facilitation function of marketing includes packaging, which is the process of designing and producing a container for the product.

(b)

The main purpose of the storage of goods is minimizing the risks in the market because if, the goods are not stored properly, then the goods may get damaged.

(d)

The process of designing and producing a container for the product is called packaging. Packaging is done to protect the product from wear and tear and to make it look attractive.

(a)

Pricing is a process of fixing a monetary value to the product or the service against the utility of the product or service. The process of pricing directly depends on cost of overheads.

(b)

ISI mark is an example of standardization. This mark is used for goods like fire extinguishers, building material, PVC Pipes, Medical Instruments (such as syringes, needles, BP apparatus etc.), and all electrical goods.

The domestic consumer is familiar with the ISI mark on a product which is an assurance that the product conforms to the requirements as laid down in the specification.

(c)

The process, which helps in distinguishing and identifying the product from other products of similar nature, is called branding. It is the process of giving a name, sign or a symbol referring to the product to distinguish it from products of similar nature.

(d)

Promotion of the product is the responsibility of the sales and marketing function as it creates an influence on the buyer for the product.

(d)

Marketing is where one person is required for exchange to take place.

(a)

Marketing functions are part of the marketing mix. Marketing mix refers to the ingredients or the tools or the variables, which the marketer mixes in order to interact with a particular market.

(c)

Customer’s satisfaction occurs, when the value customers receive from a product equals or exceeds their expectation and they get what they exactly want.

(c)

The process that accords certain status and recognition to the product is called branding. It is the process of giving a name, sign, or a symbol referring to the product to distinguish it from products of similar nature.

(a)

The process of fixing a monetary value to the product or the service against the utility or the experience of product or service is pricing. It is the most crucial element of marketing as customer is highly sensitive; a little variation in price may take the customer to competitor’s product.

(d)

Facilitation function of marketing is financing. An entrepreneur should make provision for money and credit necessary for him to make the products or services available to the consumer.

(c)

The function that creates an influence on the buyers for the product relates to promotion. Through promotion the entrepreneur can modify consumer’s behavior and create a need of his product.

(d)

Ascertaining the needs of the customer and designing a product that would offer maximum customer satisfaction at optimal cost relates to product planning and development. It includes the decisions like what should be the quality standards used in product, what shape or design would be used etc., to make it better then the competitor’s product.

(a)

AGMARK stands for agricultural marketing. It is a quality standard for food products in India. Quality standards for agricultural commodities are framed based on their intrinsic quality. Food safety factors are being incorporated in the standards to compete in World trade. Standards are being harmonized with international standards keeping in view the WTO requirements. Certification of agricultural commodities is carried out for the benefit of producer/manufacturer and consumer.

(c)

The process, which facilitates classification of products in terms of its quality and price is grading. Grading is necessary when companies are not following the techniques of standardization.

(b)

ISI mark is an example of standardization. This mark is used for goods like fire extinguishers, building material, PVC Pipes, Medical Instruments (such as syringes, needles, BP apparatus etc.), and all electrical goods.

The domestic consumer is familiar with the ISI mark on a product which is an assurance that the product conforms to the requirements as laid down in the specification.

(d)

The exchange function of marketing includes assembling. It means collection of similar category of goods at one place to facilitate exchange.

(c)

The process that acts as the most important lubricant, which facilitates the operation of the marketing machine, is financing, as finance is required by the entrepreneur at all the stages of the operation.

(b)

Risk can be minimized if the goods are stored. It is necessary to keep the goods safe, as goods need to be protected from moisture, insects, rodents, thefts etc.

(b)

The process, which is also called silent salesman, is packaging. It plays an important role in selling as attractive packing induces the customers to buy the product.

(b)

HALLMARK is a quality mark for jewellery. It is the mark, which sets quality standards for gold.

(c)

A part of brand, which is given legal protection, is called trademark. No other firm can use the name or sign for which a company gets legal protection.

(c)

An entrepreneur can differentiate his product from the competitor’s product with the help of packaging as it refers to designing of packets, wrappers, cartons, etc., which distinguishes one product from the other.

(b)

Storage facilities especially help in protecting goods from wear and tear. It helps in the proper maintenance and safety of the goods.

(d)

The main support systems for effective marketing strategies are facilitating functions as these functions facilitate the operations of the firm.

(a)

The systematic investigation of facts relating to the market is called market research, which includes research related to nature of the market, income groups, impact of advertisements, nature of competition, etc.

(c)

ISO stands for International Organisation for Standardization. This organisation gives international certification for quality.

(b)

The objective of minimizing the risk in the market can be achieved through storage as goods can be protected from spoilage if they are stored properly.

(a)

Publicity is one of the techniques used for promotion of the product.It includes all the activities, which are undertaken to communicate with the consumer and increase the sales.

(c)

The Nike sign that is prominent on all of the firm's packaging, products, and advertising is a brand name, as it is the part of brand, which can be spoken.

(d)

The label on a soft drink reads, "cool and refreshing." The reason for using these words is to promote the product. This promotional communication aims at informing and persuading the customers to buy the product and informing about the qualities of the product.

(c)

A brand can be BEST defined as name, symbol, design, or combination of these that identifies a seller's products. For example: Detol, Nike, etc. are the brands.

(b)

Some of the major packaging considerations that marketers take into account include cost, consumer safety, size, shape, color, texture, graphics, and consistency in package designs, environmental responsibilities and competitor's packaging, as every product has to compete with the other players in the market.

(c)

Physical distribution involves the movement of products from producers to end-users. It involves physical handling and movement of goods from place of production to the place of consumption.

(d)

For most companies, the main objective of physical distribution is to balance costs and market coverage. All the companies in order to recur the cost incurred on the production of the goods supply them in the market.

(a)

The basic role of promotion is information and for this the companies use various methods like advertising, publicity, sponsorships, etc.

(c)

The element of promotion used by P & G is sales promotion. This promotional tool is generally used, when a new product is launched in the market.

(b)

The promotion methods, which it will most likely use, will be personal selling, as the sales man will be able to demonstrate the use of the product and will get the direct feedback from the consumer.

(a)

characterizes marketing research is that research is the basis for making recurring marketing decisions.

(a)

The perception of price depends on a product's actual price and consumer’s expectations regarding price. If the product is as per the consumer’s requirement, then its cost may be a bit high or vice versa.

(b)

Price is the value that is exchanged for products in a marketing transaction. It means the money, which a customer has to pay to buy a product or service.

(a)

When establishing prices, a marketer's first step is to determine demand, as this will decide the quality and the quantity to be produced.

(d)

One distinguishing factor between a brand name and a brand mark is that a brand name implies an organization’s name, which can be spoken. In other words we can say it is the verbal part of the brand.

(b)

The label on a pack of frozen peas says, “packed within an hour of picking”. These words are used to provide information. This promotional communication aims at informing and persuading the customers to buy the product and informing about the qualities of the product.

(a)

FPO is a quality mark for foodstuff. It is the symbol, which ensures the quality of food products.

(b)

Finance required to be used within a year is called short-term finance. Short-term finance enables businesses and investors to take advantage of opportunities, which require transactions to be completed quickly. The focus on this type of finance is speed. It is about “getting the deal done” as quickly as required.

(c)

Packaging can prevent the degradation of product due to weather, as appropriate packaging protects the product from spoilage.

(d)

Functions of exchange are concerned with the transfer of goods from the producer to consumer. The activities related to this function are buying and assembling and selling.

(a)

Advertising is a part of promotion. It is an impersonal presentation, where a standard or common message regarding the merits, price and availability of product or service, is given by the producer or marketer.

(c)

The identification of the sources of raw material helps an entrepreneur in the estimation of transportation cost, as this will be taken into consideration while fixing the price of the product.

(d)

The function of distribution manages transportation and warehousing functions. This function relates to the movement of the finished product or services to the dealers, retailers, customers, etc.

(b)

Planning a good transportation strategy helps in timely supply of goods, which reduces any wastage of time at any stage of production.

(d)

International quality mark is known by ISO9000. ISO 9000 applies to all types of organizations. It doesn't matter what size they are or what they do. It can help both product and service oriented organizations achieve standards of quality that

are recognized and respected throughout the world.

(a)

Grading helps in segregation of products on the basis of size, quality and price. It facilitates classification of products in terms of its quality, price and other comparable qualities.

(d)

Raising funds by issue of debentures is an example of long-term finance as it is a long-term liability for the firm.

(c)

Sales Promotion aims at encouraging buyers to make immediate purchase so that the firm can make profits and incur cost.

(b)

The national mark of quality is BIS. The Bureau of Indian Standards (BIS), the National Standards Body of India, resolves to be the leader in all matters concerning Standardization, Certification and Quality.

(c)

Personal selling involves oral presentation. It is very effective to introduce a new product as salesman can explain the merits, show the demonstration and clarify the doubts to customers.

(a)

Facilitating functions are support systems for effective marketing strategies. This function includes market research, product planning and development, standardization, packaging, etc.

(d)

The activity included in buying and assembling is planning the production. The other three are the part of selling.

(b)

Market research should include details of quality and volume of the products, as this will decide the quality of the product, which will be produced.

(a)

Another name for this consistency of service is accessibility. It means making the product accessible to all people on time.

(c)

Brand name means name, symbol, design, or combination of these that identifies a seller's products. It is the verbal part of a brand.

(c)

Physical distribution functions influence all elements of the marketing mix i.e. product, price, place and promotion.

(b)

Product planning and development includes designing of the product offering maximum customer satisfaction as the main aim to earn profits with complete customer satisfaction.

(b)

The first step of the marketing process is market research. It is an important activity for an entrepreneur, which helps in systematic investigation of facts relating to the market.

(c)

The Mc Donald’s sign that is prominent on all of the firm's packaging, products and advertising is a brand name as it helps in the identification of the product.

(b)

Facilitating function of marketing excludes buying and assembling, as this is the function of exchange.

(a)

Name, symbol or design that distinguishes a product from products of the similar nature is called branding. It is the identification of a product, which can be in the form of name, symbol or design, etc.

(d)

The process that facilitates the classification of products in terms of its quality, price etc. is grading. It helps in the identification of the product.

(c)

Advertising is one of the tools used for promotion. It is a paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor.

(d)

Branding helps an entrepreneur in according certain status and recognition to the product. It is much more than the identification mark.

(a)

Packaging facilitates the entrepreneur in ensuring and sustaing quality of the product as in a packed good there are less chances of contamination of product.

(b)

International organisation for standardization is ISO. It is the quality standard for the international goods.

(c)

Buying and assembling includes planning the production. The other three are the parts of selling.

(a)

Functions of exchange include movement of goods from the producer to consumer. It involves physical handling and movement of goods from place of production to the place of consumption.

(b)

The first step while establishing prices is to determine demand so that the quantity and the quality to be produced can be decided.

(d)

An entrepreneur has to identify the source of raw material for the estimation of transportation cost because the price of the product will be fixed on the basis of overhead costs.

(c)

The quality mark for jewellery is HALLMARK. This mark sets quality standard for jewellery.

(d)

Market research includes quality of the product as it involves systematic investigation relating to the market.

(b)

Personal selling is a tool used for promotion. It involves face-to-face interaction between the seller and buyer of the purpose of sale.

(d)

Financing that is provided for a period of more than a year is calledlong term financing. Long-term financing services are provided to those business entities that face a shortage of capital. It is necessary for all kinds of business entities irrespective of their sizes or stature. These companies need to avail the long term financing resources from the lenders when they have to pay off a debt.

(c)

The quality mark for electrical goods is ISI. This mark sets quality standard for all electrical goods.

(d)

Packaging can differentiate a product from others, as all the goods are supplied in packed form, which helps in the differentiation.

(a)

Pricing of the product depends on overhead costs. More the overhead costs more will be the price of the product.

(d)

Designing of the product offering maximum customer satisfaction is a part of product planning and development. Proper planning is conducted so that the best product can be produced, which gives or offers maximum customer satisfaction.

(a)

Market refers to a place, where buyers and sellers gather to enter into transactions involving the exchange of goods and services. It is the place, where buying and selling of goods take place.

(b)

The function that is called the essence of marketing is exchange function. As through this function the goods are made available to the ultimate users i.e. the customers.

(a)

Functions of marketing exclude product planning and development function, as Product planning is a part of facilitation function.

(b)

Intermediate financing is also called medium term financing. It is defined as the finance, which is raised for more than a year but less than ten years.

(c)

Marketing functions can be divided into 3 parts:

Functions of physical supply,

Functions of exchange and

Facilitation function.

(c)

Buying and assembling includes production planning. The other three are part of selling.

(b)

Marketing process begins with market research as it helps in the systematic investigation of facts relating to the market.

(a)

Product planning and development includes designing of the product offering maximum customer satisfaction. The other three are the part of market research.

(b)

Explanation: In the marketing mix, place represents distribution. It shows where can the customers buy the product from and how does the product reach that place. Distribution can be done through different channels, like internet, wholesalers and retailers.

(c)

Explanation: Promotions are the incentives designed to stimulate the purchase or sale of a product, usually in the short term. For example: Coupons, sweepstakes, contests, product samples, rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins, and exhibitions.

(a)

Explanation: Consumer products are purchased by individual households and do not require further processing. Among consumer products, products that are not consumable and last for a long period of time are known as durable products. Other examples are refrigerator, computer, washing machine, etc.

(d)

Explanation: Any material or service offered for sale at a price is called a product. Among these there are many intangible things, and they are called services, e.g., beauty treatments, tourism etc. Some of these may be wholly intangible like telecommunication and some partly intangible like restaurants.

(a)

Explanation: Branding is defined as the various methods of promoting the product, brand, or company. And a brand is a name or trademark connected with a product or producer.

(b)

Explanation: Small entrepreneurs with single or limited product lines, have no options for the product mix. They will be able to undertake these activities once they grow in scale and have more products or a larger marketing domain.

(c)

Explanation: Consumer products are purchased by individual households and do not require further processing. Among consumer products, products that offer us convenience and we neither consume them nor do they last for a very long period of time are called convenience products. Another example is a newspaper.

(c)

Explanation: Provision for spares is a part of product services, also known as after sales service. They also include installation, repair, maintenance, training the user on usage of the product. They play a key role in customer’s decision making. Therefore, companies spend large amounts on these support systems.

(d)

Explanation: Convenience products like newspapers do not need after sales service or support while durable products like refrigerators would definitely need it. The price of the products, tools used for promoting them and their distribution network for the two may not necessarily be different.

(b)

Explanation: Raw material and parts like nuts & bolts, steel rollings, etc. are a part of industrial products. These products are sold to other firms for use in their production.

(a)

Explanation: All the elements of the marketing mix are interrelated. Change in one leads to some amount of change in all the others. If product undergoes a change, i.e., if a feature is added to a product, price too will undergo a change. An additional product feature will result in an increase in the price.

(d)

Explanation: The marketing mix is a function of a company’s product and its target customers. In most cases, it is likely to be different.

(d)

Explanation: Travel & tourism are intangible things sold for a price. These are called services.

(b)

Explanation: Post is an example of services. Services are intangible things sold for a price.

(b)

Explanation: A treadmill is an example of specialty products. These are products that are not routine purchases and sold through special stores and by qualified sales persons.

(c)

Explanation: Schools, our institutions that impart us knowledge are also selling a service. Education is a service and we pay a price for it in the form of fees.

(d)

Explanation: Advertising is a component of the promotion mix. Promotion is a tool to promote one’s product and service and tell the buyers about it. Other main aspects of promotion are: personal selling, promotions & public relations.

(a)

Explanation: Nuts & bolts and machinery are both industrial products. Nuts & bolts are consumable while machinery is not. Also machinery cannot be sold in wholesale while nuts & bolts are sold in wholesale. Neither of the two are specialty products.

(d)

Explanation: Non durable products do not need after sales service or support which is vital for durables. The price of the products, tools used for promoting them and their distribution network for the two may not necessarily be different.

(d)

Explanation: In the marketing mix, place represents distribution. It shows where can the customers buy the product from and how does the product reach that place. Therefore the choice of retail outlets to use for selling the product is a decision related to the Place Mix.

(d)

Explanation: A decision to expand the area of sales will impact all the elements of the marketing mix. All the four elements are interrelated. Change in any one of them affects all the others. To expand the area, one would have to increase distribution. This will affect the price. It may also need more advertising and promotions. The product too may need to be changed to suit a wider market segment.

(d)

Explanation: Since specialty products are not routine purchases and involve more research before the purchase decision is made, it’s important to have skilled and knowledgeable sales persons selling these products. The sales persons will have to recommend and customise products as per the specific requirements of the buyers.

(d)

Explanation: Capital goods are products like industrial plant and machinery. These are high value items and will therefore require more investment for distributing these products.

(a)

Explanation: Product features are within the scope of product mix. Product mix covers areas like brand, quality, quantity, features, design, packaging, guarantees, after sales services and different product lines.

(a)

Explanation: Branding is a part of product mix. Product mix covers areas like brand, quality, quantity, features, design, packaging, guarantees, after sales services and different product lines.