Please refer to the Enterprise marketing Class 12 Entrepreneurship Exam Questions provided below. These questions and answers for Class 12 Entrepreneurship have been designed based on the past trend of questions and important topics in your class 12 Entrepreneurship books. You should go through all Class 12 Entrepreneurship Important Questions provided by our teachers which will help you to get more marks in upcoming exams.
Class 12 Entrepreneurship Exam Questions Enterprise marketing
Class 12 Entrepreneurship students should read and understand the important questions and answers provided below for Enterprise marketing which will help them to understand all important and difficult topics.
VERY SHORT ANSWER TYPE QUESTIONS
Question. Define branding.
Answer: ‘Branding’ is a process, a tool, a strategy, an orientation whereby a name, a sign, or a symbol etc. is given to a product by the entrepreneur so as to differentiate his/her product from the rival products.
Question. Give the meaning of BTL.
Answer: BTL refers to Below the line which targets identified small groups and aimed at leading to an actual sale.
Question. What is negotiation?
Answer: Negotiation is a process where two or more parties with different needs and goals discuss an issue to find a mutually common and acceptable solution.
Question. What are smart goals?
Answer: S.M.A.R.T. is an acronym for the 5 steps of specific, measurable, achievable, relevant, and time-based goals. It’s a simple tool used by businesses to go beyond the realm of fuzzy goal-setting into an actionable plan for results.
Question. Define logo.
Answer: ‘Logo’ is an identifying symbol design, mark, sign for a product or business which stands associated with the entrepreneur’s offering. ‘Logo’ is an important feature or part of branding.
Question. Mention two factors on which the channel of distribution depends.
Answer: Channel of distribution depends on nature of market, choice and preferences of consumers, types of competition, types of market, etc.
Question. What is a trademark?
Answer: Trademark is a recognizable sign, design or expression which distinguished products or services of a particular trades from the similar products or services of other traders.
Question. Define marketing mix.
Answer: “Marketing mix is the term used to describe the combination of the four inputs which constitute the core of a company’s marketing system: the product, the price structure, the promotional activities, and the distribution system.”—W. J. Stanton Or “A marketing mix is the mixture of controllable marketing variables that the firm uses to pursue the sought level of sales in the target market.”—Philip Kotler
Question. What does the industrial design protect?
Answer: Industrial design protects the visual design of objects that are not purely utilitarian.
Question. 15. Explain the following term: ATL.
Answer: ATL refers to above the line which targets mass audience and aims at establishing brand identity.
Question. Why is a logo important for a company?
Answer: Logo is important for a company as it imparts a distinct identity to entrepreneur’s own brand.
Question. What are the components of marketing mix?
Answer:The 4Ps that make up a typical marketing mix are — Price, Product, Promotion and Place.
Question. Define advertising.
Answer: Advertising is a paid form of communication designed to attract or persuade potential customers to choose the product or service over that of a competitor.
Question. Give the meaning of tagline with the help of an example.
Answer: Taglines are simple but powerful messages that help to communicate an enterprise’s goals, mission, distinct qualities and so much more. Balsara Hygiene products, launched their ‘Promise toothpaste in 1978 and took an aggressive stand against its competitors. It then secured the second highest market share. It was due to the tagline—“The unique toothpaste with time-tested clove-oil.”
SHORT ANSWER TYPE QUESTIONS
Question. What is sales strategy?
Answer: 1. A sales strategy is a plan that places a company’s brand or product to gain a competitive advantage in the market.
2. It help the sales to focus on target market customers and communicate with them in desired and required ways.
3. It is aimed at targeting the correct customers at the right time.
Question. Is vendor management different from employee management? Enumerate.
Answer: Employee relationship management is a process that is directed to effectively manage all interactions with employees, ultimately to achieve the goals of the organisation. Where as vendor management is used to describe the process of finding, qualifying and doing business with vendors.
Question. What is the purpose of logo?
Answer: 1. Anchor: A logo anchors company’s brand.
2. Identification: Corporate logo are intended to be the “Identity” of an enterprise because of displaying graphically enterprise’s uniqueness
3. Information: Using colour combination, fonts, images, impression or pattern, logos provide essential information about a company which allows customers to relate with the enterprise’s core brand.
4. Visual effect: Logos act as the key visual component of an enterprise’s overall brand identity.
Question. Differentiate between ATL and BTL.
SHORT ANSWER TYPE
Question. What is AIDA?
Answer: Developing effective advertising (AIDA): Good advertising elicits the following four responses:
Attention: It catches the eye or ear and stands out amid the clutter of competing advertisements.
Interest: It arouses interest and delivers sufficient impact in the message or offering. Desire: It creates a desire to learn more or crave ownership.
Action: It spurs an action which leads to achievement of the ad’s original objective
Question. What are the different roles played by a salesperson?
Answer: A salesperson plays three different roles:
1. Be persuasive: Salesmen have to persuade the customers to purchase the commodity. This effort is expected to be sincere. It may involve various aspects like clearing the queries of the customers, providing credit facilities, etc.
2. A service provider: All the services related to the product are to be facilitated by the sales person. These services are related to various aspects like maintenance, repair, operation, etc.
3. Be informative: Salesperson have to provide genuine information to the potential customers. Use of unfair information to the customers is not desired and not expected from thesalesperson.
Question. Who is a stakeholder?
Answer: Stakeholders are the different groups in a society which can affect the business decision: making and have an impact on its marketing performance. These groups include: Clients/customers, shareholders, media, financial institutions, community groups, etc.
Question. What are the main public relations tools?
Answer: The main public relations tools include:
1. News creation and distribution (media releases)
2. Special events such as news conferences, grand openings and product launches
3. Speeches and presentations
4. Educational programs
5. Annual reports, brochures, news-letters, magazines and audio-visual presentations Community activities and sponsorships.
Question. What are the rules for advertising?
Answer: There are four rules for advertising:
1. Aim: It means the primary purpose of the advertisement and it aims to inform, sell, produce listings or improve the image of the business.
2. Target: Who is targeted, i.e. which group of customers are targeted. For example, is it male, female, adult, teenager, child, mother, father, etc.
3. Media: Based on aim and target which media is available and is most suitable i.e. TV, radio, press, etc.
4. Competitors: Here, various aspects of the competitors are to be studied like moves of the competitors, media channel used, etc.
Question. What are the qualities of a good brand name?
Answer: A good brand name should have following qualities:
1. Short, simple and easy to pronounce.
2. Noticeable, easy to recognize and remember.
3. Pleasing, impressive when uttered.
4. Neither obscene, negative, offensive or vulgar.
5. Adaptable to packaging, labelling requirements, to different advertising media and languages.
6. Linked to product and eye catching.
7. Contemporary, capable of being registered and protected legally.
Question. Explain the benefits of CRM.
Answer: The benefits of CRM are:
1. Storage: By CRM all business data is stored and accessed from a single location.
2. Central location: Storing all the data of all departments like sales, marketing, customer service etc. in a central location provide immediate access to the recent data when it is required.
3. Collaboration: Departments can collaborate with each other with ease.
4. Improvement: It helps the enterprise to develop efficient automated process to improve business processes.
5. 360-degree view: It provides a 360-degree view of all customer information, knowledge of what customers want and matching it with existing applications to consolidate all business information.
LONG ANSWER TYPE QUESTIONS
Question. How is vendor management done?
Answer:1. Meaning: Vendor management is the process of finding, qualifying and doing business with vendors.
2. Activities: Common activities of vendor management include researching vendors, negotiating contracts, obtaining quotes, evaluating performance, creating and updating vendor files, and ensuring that payments are made properly.
3. Outsourcing: Vendor management begins with the decision of outsourcing.
4. Finding vendors: The company then have to find one or more vendors that can supply the good or service needed.
5. Evaluation of vendors: Next thing is to evaluate each vendor based on pricing, capabilities, turn-around time, quality of work, etc. This involves requesting pricing, checking references, and researching the company through online resources.
6. Contract: After vendors are selected, contract terms are followed. Certain vendors might be preferred. Others might be backup vendors in case of further requirement.
7. Vendor files: It often involves a great deal of electronic or manual paperwork. As it include vendor contact information, certificates of insurance and taxpayer identification numbers. Many firms require vendor files to be updated annually in such case it is ensured to obtain the details every year.
Question. What are the various types of brand names from the entrepreneur’s perspective?
Answer: Various types of brands available are:
1. Individual brand name: Here, every product is promoted by the entrepreneur on the basis of a separate brand name, like: Liril—brand name with the “freshness” concept. Lux — brand name for “beauty soap for film stars”
2. Family brand name (Umbrella branding): Here, the entrepreneur’s name or the company’s name is used for all the products, like: Kissan, is brand name for jam, sauces, etc. AMUL, has been used to market a large variety of dairy products viz. milk, ghee, butter, chocolates, etc.
3. Corporatenames: Here, entrepreneur can choose their corporate name or logo together with some brand names of individual products for example, Godrej, Tata, Bajaj, etc.
4. Alpha-numeric names: It is mainly for industrial products. An alpha¬numeric name signifies its physical characteristics. For example, SX4, Liv52, ANX Grindlay, ilO, i20, etc.
VERY LONG ANSWER TYPE QUESTIONS
Question. Explain the important factors affecting the choice of channels of distribution by the manufacturer.
Answer: While selecting a distribution channel, the entrepreneur should take into account the following factors:
1. Considerations related to product: It includes the following:
(a) Unit value of the product: When the product is very costly distribution channel is preferred. For example, industrial machinery or gold ornaments. On the other hand, for less costly products long distribution channel is used.
(b) Standardised or customised product: Such products have pre-determined cost and there is no scope for alteration. For example: Utensils of MILTON, for these long distribution channel is used. On the other hand, customised products are those which are made according to the discretion of the consumer and also there is a scope for alteration, for example; furniture. For such products face-to-face interaction between the manufacturer and the consumer is essential. So for these direct sales is a good option.
(c) Perishability: Highly perishable goods should have short channel. On the contrary, a long distribution channel can be selected for durable goods.
(d) Technical nature: If a product is of technical nature, direct channel should be preferred. This will help the user to know the necessary technicalities of the product.
2. Considerations related to market:
(a) Number of buyers: If the number of buyers is large then it is better to take indirect and long channel of distribution. On the contrary, the distribution should be done by the manufacturer directly if the number of buyers is less.
(b) Types of buyers: If the more buyers belong to general category then there can be more middlemen. But in case of industrial buyers there should be fewer middlemen.
(c) Buying habits: Manufacturer can take the services of middlemen if financial position does not permit to sell goods on credit to those consumers who are in the habit of purchasing goods on credit.
(d) Buying quantity: If the goods are bought in smaller quantity then middlemen can be employed. (e) Size of market: If the market area of the product is scattered then the producer must take the help of middlemen, i.e., long channel.
3. Considerations related to manufacturer/company:
(a) Goodwill: Good reputation need not depend on the middlemen as the firm can open his own branches easily.
(b) Desire to control the channel of distribution: A manufacturer’s ambition to control the channel of distribution affects its selection. Consumers should be approached directly by such type of manufacturer. For example, electronic goods sector with a motive to control the service levels provided to the customers at the point of sale are resorting to company owned retail counters.
(c) Financial strength: A strong financial base of a company can have its own channels. On the other hand, financially weak companies would have to depend upon middlemen.
4. Considerations related to government: Only a license holder can sell medicines in the market according to the law of the government. In this situation, the manufacturer should take sell through middlemen who have the relevant license.
5. Others: (a) Cost: A manufacturer should select such a channel of distribution which is less costly and also useful from other angles. (b) Availability: Other channel of distribution can be selected if the desired channel is not available. (c) Possibilities of sales: Such a channel which has a possibility of large sale should be given weight age.
Question. Explain promotional mix in detail.
Answer: Promotion refers to all the activities undertaken to make the product or service known to the user and trade. It is a method to spread the word about the product or service to customers, stakeholders and the broader public. This can include advertising, word of mouth, press reports, incentives, commissions and awards to the trade. It can also include consumer schemes, direct marketing, contests and prizes. Various approaches a company can use to promote its products are:
1. Above-the-include: It use mass media methods and focuses on advertising to a large audience. It include print, online, television and cinema advertising, press, online banner advertisements, place advertisements on billboards, etc. Above-the-line promotion is very expensive so before taking it a lots of thought must be given. Also at times they are not under the control of organisation.
2. Below-the-line: These are very specific, memorable activities focused on targeted groups of consumers. They remain under the control of the organisation. It deals with developing the brand by creating awareness and building a brand profile. It include the activities like sponsorship,sales promotions, public relations, personal selling, direct marketing, etc.
3. Through-the-line: It refers to an advertising strategy involving both above-and below-the-line communications in which one form of advertising points the target to another form of advertising thereby crossing the “line”.
Question. Explain the methods of negotiation.
Answer: Methods of negotiation are as follows: Integrative or win-win: Here each side is working towards a solution where everyone wins something. They can make trade offs and look at multiple issues. The involved parties may try to expand the pie rather than divide it. This method fosters trust and good working relationships.
Distributive or win-lose: Here one party gets what it wants, and the other party has to give something up. This type of negotiation does not lead to lasting or positive relationships. Here one party remains unsatisfied and so it does not lead to a healthy relationship. Inductive: This method involves starting on small details and working upward until a settlement is reached. Here the solution is sought from the grass root level by understanding each and every minute detail. For example, an employer and labour union are negotiating the details of an employee pension and investment plan. Small details are addressed one at a time. Deductive: Deductive negotiations start with an agreed upon strategy. They rely on established principles and a formula to frame the negotiation while the parties work out the details. Here each parties is the gainer and jointly the result is met. It is based on the mutual agreement. Mixed: Mixed negotiations are the most common, they are a blend of inductive and deductive methods.
Question. Enlist some typical sales promotion activities.
Answer: 1. Consumer promotions:
(a) Point of purchase display material
(b) In-store demonstrations, samplings and celebrity appearances
(c) Competitions, coupons, sweepstakes and games
(d) On-pack offers, multi-packs and bonuses
(e) Loyalty reward programmes
2. Business promotions:
(a) Seminars and workshops
(b) Conference presentations –
(c) Trade show displays
(d) Telemarketing and direct mail campaigns
(f) Event sponsorship
(g) Capability documents
3. Trade promotions:
(a) Reward incentives linked to purchases or sales
(b) Reseller staff incentives
(d) Corporate entertainment
(e) Bonus stock
4. Sales force promotions:
(b) Sales competitions with prizes or awards
(c) Back to top
SHORT ANSWER TYPE QUESTIONS
Question. How does the nature of products affect the DistributionMix?
Answer: Nature of product plays an important role in Distribution Mix. This can be explained using following:
1. Shelf-life: Normally shorter is the shelf-life quicker is the distribution. As more and more time is consumed while distributing, more is the loss in quality and quantity of the product. Thus perishable goods are distributed quickly through direct mode whereas non-perishable items are distributed through indirect mode.
2. Capital goods: Goods manufactured by producers for producers are normally sold directly. Here direct mode of selling is preferred for avoiding delay in supply, for taking the maximum share of the profit and for providing efficient after sales service.
3. Size of product: Larger is the size of product; shorter is the channel of distribution. This is preferred for quick delivery, safe transportation and easy approach to the customers
Question. Describe the various terms related to tagline in the world.
Answer:1. ‘Tagline’, ‘tag line’ and ‘tag’ are American terms. In U.K., they are called ‘end lines’, ‘end lines’, or ‘strap lines’.
2. Germans call them as ‘Claims’,
3. French refer them as ‘Signatures’ 4. Belgians call them ‘baselines’.
Question. What is importance of Intellectual Property for an entrepreneur?
Answer: Intellectual Property (IP) rights are the legally recognized exclusive
rights to creations of the mind.By this, owners are granted some exclusive rights to a variety of intangible assets. For example, copyrights, trademark, patents, industrial design rights, trade secrets, etc.
Question.Enlist the various brands of Hindustan Unilever and also the impression that is made on the consumers.
Answer: Lifebuoy — It stands for ‘Good health’ Lifebuoy liquid, Lifebuoy Personal, Lifebuoy Plus and Lifebuoy Gold to cover various price sub-segments in the health segment. Liril — brand name with the “freshness” concept. Lux — brand name for “beauty soap for film stars”.
Question. What is the importance of Copyright?
Answer: Copyright gives the creator of the original work exclusive rights to it, usually for a limited period of time. It is applicable to creative, intellectual or artistic forms or work. For example, musical composition, literary work such as poems, plays, etc.
Question. In U.K., they are called ‘end lines’, ‘endlines’, or ‘straplines’. Germans call them as ‘claims’, French refer them as ‘signatures’, while Belgians call them ‘base lines’. Identify the concept and name its forms
Answer:1. The concept is Taglines.
2. It’s various forms are: questions, statements and exclamations.
Question. All the four elements of the market mix are interdependent. How will you support this statement?
Answer: Yes, all the four elements of the market mix are interdependent. For example, if the quantity of sale is to be increased then the distribution pattern needs to be effective and capable of covering larger area. Simultaneously more advertisement expenditure is required. This will require the introduction of new promotional schemes for the product.
Question. What is the cost plus pricing method?
Answer: In this method the cost of production of one unit of the product is calculated. This cost covers all the types of costs including explicit cost, variable cost, fixed cost, etc. to this is now added the preplanned profit margin. Price = cost of production + profit Here, costs of production as well as profit both are determined separately in advance. This is the most common method used by the entrepreneurs.
Question.Give some methods of classifying the product.
Answer: Products can be classified as:
1. Consumer products: It includes fans, vegetables, toothpaste, fruits, soaps, shampoos etc. these include final goods.
2. Capital goods: It includes all those goods needed by the producers for producing goods e.g. tools, equipment, nut-bolts, machines, etc.
3. Services: These are invisible and intangible goods provided by various entrepreneurs to the customers. For example, banking, transportation, tourism, movies, etc.
Question. What are the factors you would keep in mind for the distribution to a seasonal goods market?
Answer: Following factors would be kept in mind:
1. Proper planning for the distribution is made in advance.
2. Financially strong channel members like dealers are appointed.
Question. Why do customers prefer enterprises with assured after sales service?
Answer: Customers prefer enterprises with assured after sales service because of following reasons:
1. Durability: The durability of the product increases when an effective after sale service is available. This point is stronger in the mind of the consumer.
2. Convenient: The use of the product becomes more convenient when it runs with less problems or hurdles.
3. Maintenance: The maintenance of the product becomes easy as this responsibility is passed on to the seller when after sale service is prompt.
Question. What does the following signify? Amul’s message — “A gift for someone you love.”Rasna — “I love you, Rasna.” “I’m lovin it” — McDonald Weekender — “Wear your attitude.” Raymond’s Suiting — “The complete man.” “Yamaha Bike—“The rugged personality.”
Answer: These represent taglines. Taglines are simple but powerful messages that help to communicate an enterprise’s goals, mission, distinct qualities and so much more. These are small amount of text which serves to clarify a thought. These are in the form of Questions, Statements, Exclamations, etc.
LONG ANSWER TYPE QUESTIONS
Question. State the advantages of‘Good Negotiations’.
Answer: Following are the advantages of‘Good Negotiations’:
1. Helps in building better relationships.
2. Delivers lasting, quality solutions rather than poor short-term solutions that do not satisfy the needs of either party.
3. Helps in avoiding future problems and conflicts.
Question. What is trade discounting? Why is it done?
Answer: Trade discounting is the method of discounting in which the supplier offers a decent profit margin to retailer on the sale. Entrepreneur can also provide this to wholesaler. This can be done by deducting the percentage of discount from the wholesalers’ or retailers’ price. Mostly this type of discount is offered on volume purchase or for sales promotion. Such discount is mostly offered to the members of same trade and not to the final consumers. Advantages of trade discounting:
1. Increase in trade satisfaction as the members of trade receive satisfactory discount.
2. It reduces the chances of loss as the costs are covered.
3. Profit margin of wholesaler and retailer is maintained.
Question. What major considerations affect the variable price method?
Answer: Following are the major considerations which affect the variable price method:
1. Paying capacity of the customers.
2. Volume of the product purchased by the customer.
3. Bargaining power of the customers.
4. Choice and preference of the customers.
5. Expectation about changes in demand of the product in the future.
6. Acquaintance of the firms with the customers.
Question. When does an entrepreneur employ dealers for sales?
Answer: An entrepreneur can employ dealer for sales when:
1. The product is having longer shelf- life.
2. The size of market is very large.
3. Market is spread to larger distances.
4. The expenditure on the product is very small e.g., spoons, shampoos, etc.
5. The producer is willing to take less risk.
6. The large-scale production is undertaken by the producers.
7. The entrepreneur launches a new product.
8. Quick transportation arrangements are planned.
Question. Will you, as an entrepreneur, use the base pricing method for consumable items? Justify your answer.
Answer: Yes, an entrepreneur, could use the base pricing method for consumable item. This is because of following reasons:
1. Raising the sales: When the discount is assured on the consumable item, customers will be attracted towards the item. This will increase the sales.
2. Easy promotion: Due to varying discount, the promotion of the product becomes easy, as discount rates can be made public easily and effectively.
3. Customers will not be lost: If one rate of discount is not acceptable then the other and more effective discount can be offered.
4. Scope for bargain: Bargain on price or discount is possible in this method. This bargain can be initiated by entrepreneur and also by the customers leading to productive transaction for the entrepreneur.
Question. How does market mix play an important role in enhancing the sale?
Answer: Marketing mix plays an important role in enhancing the sales of the enterprise. Its following components help in raising the sale:
1. Product: If various features and characteristics of the product are of the liking of majority of the potential customers, the sales is automatically going to be higher. Effective after sale service, efficient utilization of know-how, full capacity production will create good rapport of the product. Consequently sales will be enhanced.
2. Price: Favourable and adequate pricing depending on the paying capacity of the customers always appeal the customers. The loyalty towards the product is also enhanced which ensures minimum sales and also attracts new customers. Various pricing methods are available at the disposal of the entrepreneur. Selection of appropriate method can be used as a tool for raising sales.
3. Promotion: Publicity plays a leading role in promoting sales. Depending on the nature of the product the advertisement mode can be selected. Door to door selling, newspaper, radio, pamphlet, etc. are the various methods, which can be used for increasing the number of customers.
4. Distribution: Various channels of distribution can be effectively used by entrepreneur depending on nature of market, preference of consumers and nature of the products. Shorter is the channel of distribution more efficient is distribution.
VERY LONG ANSWER TYPE QUESTIONS
Question. Raghav after doing his B. Pharma, degree from a reputed government college started two chemist shops in two different localities of his home town. Encouraged with the success of these shops, he started six more shops in different cities of the State. His strategy was to cut price, focus on lower and middle class patients and open shops near hospitals. He operated on very thin margins. But he was not able to maintain sufficient funds to meet the day to day expenses of the business. The staff of the shops did not give much attention to the customers and there was very poor system of control. Because of this mismanagement he started incurring huge losses and his business failed. Based on the above para identify and explain any four causes of business failure of Raghav.
Answer: Causes of business failure of Raghav:
1. Lack of adequate cash flow: Many small businesses fail because owners have a difficult time projecting what cash will come in every month, and thus, how much can go out. Raghav failed to estimate the correct expense which is required to run the business on a daily basis.
2. Management incompetence: Raghav worked on very thin margins which led to huge losses as well as he did not have control over his staff.
3. Diminished customer base: Raghav did not keep a track of his customer base. Competition can cause the customer base to diminish.
4. Poor system of control: Raghav could not have proper internal control over activities which led to the failure of his business.