Business Studies Part I
Business Studies Part II

Solution of Question Paper

1 Mark Question Solutions

Q1 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.

Answer: Useable benefits is the technique of sales promotion used by the company in the above situation.

Q2 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.

Answer: Product combination

Q3 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 bobox and delivered to various retailers for sale. State the purpose of packaging the tablets in a corrugated box.

Answer: The purpose of packaging the tablets in a corrugated box is to facilitate their transportation, warehousing and easy identification

Q4 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.

Answer: Advertising is the promotion tool that can be used by the hotel.

Q4 What is the societal concept of marketing?

Answer: The societal concept of marketing means an extension of marketing concept. Apart from the consumer satisfaction, it pays attention to the social, ethical and ecological aspects of marketing.

5 Mark Question Solutions

Q6 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:

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

Answer:

  1. 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.

2..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.

‘Q7 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:

  1. Name and explain the ‘type of promotion strategy’ adopted by the company to boost the sales of air purifiers.
  2. Also, identify the various techniques of this promotional strategy being used by the company by quoting lines from the paragraph.
  3. “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:

  1. 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.
  2. 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.”
  3. Right to Choose is the consumer right being promoted by the company.