Introduction to Marketing Short Answer Type Questions

Question 1.
What is marketing? What are the features of marketing?
Answer:
Marketing includes all those activities have, to do with effecting Changes in ownership and possession of goods and services. It is the part of economic activities which deals with time place and possession utilities and that phase of economic activity through which human wants are satisfied by the exchange of goods and services for some valuable consideration. It is the management function which promotes trade employment and satisfy consumer needs.

Features of marketing:

Marketing includes set of activities.
Marketing ensures optimum use of recourses.
Marketing gives customer satisfaction by supplying goods and services.
Marketing aims at developing economy of nation.
Marketing includes both national and international marketing.
Marketing gives scope of development of new product.
Marketing gives employment opportunity.
Marketing helps for use of resources available for production.
It is an act of creating customer needs and demand for the product.
If focuses on the customer needs.
It satisfy the needs of customer and there by satisfy the needs of marketer.

Question 2.
Explain approaches to the study of marketing?
Answer:
The following are the most important approaches to the study of marketing.
(a) Commodity approach:
This approach focus on the study of specific commodity. In this approach the subject matter of discussion centers around the specific commodity selected for the study and also includes the sources and condition of supply nature and extent of demand the distribution channel used etc., performed by various agencies.

(b) Institutional approach:
This approach focus on the study of various middle men and agencies such as wholesalers retailers etc., this approach also explains the position of middlemen in the channels of distributions.

(c) Functional approach:
This approach focus on the different kinds of functions like selling storage and warehousing transportation financing etc-, this approach gives importance to various functions of marketing in relation to given commodities.

(d) Managerial approach;
This approach focus on the social contribution and cost created by various marketing activities and institution. This study is the interaction between the various environmental factors and their impact on the well being of society.

(e) Societal approach:
This approach focus on the social contribution and cost created by various marketing activities and institution. This study is the interaction between the various environmental factors and their impact on the well being of society.

(f) System approach:
This approach focus on the study of inter connection among the components of a marketing system in which products, services, money equipment, and information flow from marketers to consumers.

Question 3.
Write a note on function of marketing?
Answer:
The main aim of marketing is to maximize the profit by selling goods and services to the customers. Following are the main functions of marketing.

Functions of exchange:
(a) Buying and assembling:
Buying is the main function of marketing. Raw materials are purchased for production by industrial enterprises and semi finished and finished goods are purchased for resale by the commercial enterprises; Purchasing goods for different purposes requires scientific and managerial skill in modern marketing. Purchasing is very different from assembling. Assembling means collection of goods already purchased from different sources at a common point. This function helps for further work of an enterprises.

(b) Selling:
Selling is an important aspect of marketing. According to this functions ownership of goods are transferred from the seller to the buyer at a profitable prices. It also includes personal and impersonal efforts made in persuading the prospective customers to buy a commodity and service.

Functions of physical supply:
(i) Transportation:
Transportation is the physical means to move the goods’and people from a place to another. The goods are moved from a place where they are not required to the place where they are demanded. This function creates the place utility. Goods are sent to the market place of in number of ways like railways, roadways, airways, and water ways. The speed and the cost determines the selection of a particular type of transportation.

(ii) Storage:
This function of marketing creates time utility. The products are to be preserved from the time of production to the time of consumption as they cannot be sold immediately. This function of marketing helps the business men to earn more profit by selling the goods only according the consumer demand. Storage also helps the consumers to postpone their needs for the product.

Facilitating functions:
(i) Financing:
Finance is the base the for all marketing functions. Every business requires short term or long term finance to run their business smoothly. Business collects long term capital by issue of debentures arid shares. Organization gets credit from banks and other trading concerns to tide over seasonal difficulties.

(ii) Risk bearing:
Risk is a danger of loss arising out of unforeseen circumstances in the future. There are two types of risks. They are transferable risk and non-transferable risk. Transferable risks are possible to shift but non-transferable risks are not possible to shift which is barred by the businessman himself.

(iii) Market information:
Market information includes all facts estimates opinions views regarding the market weather. This function is having three aspects viz. collection interpretation and dissemination. But this Collected information must be adequate timely and accurate. Therefore business must have up-to-date information about customers dealers and internal operations to achieve ultimate goal.

(iv) Standardisation:
It is related with division of commodities into distinct groups, each having . common characteristics. This function involves fours steps viz. fixing the standard, grading, inspecting and labeling. Standardization function helps the customers and businessmen for easy purchase and sale of product.

Question 4.
‘What are marketing processes? Explain each in brief.
Answer:
Marketing processes are Concentration Equalization and Dispersion:
(a) The process of concentration:
It is the first process of marketing. It means bringing the goods at a single point to make possible convenient and economical distribution. Therefore collection of goods for the purpose of distribution is called as concentration. It is essential to collect all the goods from small scale agriculturist before they are transported to the wholesale markets from where they can be sent to different consuming centre.

(b) The process of equalization:
It is the activity occurs between the processes of concentration and dispersions. It means adjustment of supply to demand on the basis of time, through this process goods supply is adjusted with the customer demands. Storage and transportation plays an important role in this process.

(c) The process of dispersion:
Goods are concentrated at market place for dispersion of it through various channels of trade to final customers. Raw materials are dispersed to manufacturers for further process and final products are dispersed to middlemen to supply it to final consumers.

Question 5.
What is B₂B model? What are its merits and demerits?
Answer:
B₂B means the transaction between two businessman. It includes limited number of transaction traded between two businessman for business use. The transaction made between two parties is generally large in volume.

Benefits:

It reduces the manual work and replace a number of people like accountants, ware house managers with auto material intelligent system.
It helps to perform the functions of marketing efficiently, quickly and securely.
It save the time and allows the manager to concentrate on some other important work of business.
It reduces operating cost and respond to market demand and trends quickly.
It increases customer loyally.
It is a charge in business culture and implementation of this network up-grade the knowledge of work.
It also facilitates for improvement in productivity.

Demerits:

It is costly method.
Running and maintenance cost is also high.
It required-expert staff to operate this system.
It requires separate software system to work with other business.

Question 6.
What is retailing? Explain its features.
Answer:
Retailing means set of all those business activities that are involved in’the sale of goods or services to the final user directly. A retailer is a person performs the functions of retailing. Therefore retailing is concerned with selling goods and services to final consumers.

Characteristics of retailing:
(a) Small lot and frequent sales: Seller sells goods to final consumer is small quantity on a frequent basis. Therefore retailer should keep ready stock to meet the needs of final consumer.

(b) Retail prices are higher: Usually retailer is selling goods at high price. Because he is keeping large variety of goods in stock at his shop. There is a risk of storage and marketing in retail business. To cover these risk retailer fixes high rate.

(c) Retailer always depends on consumer: Retailing business is always depend on consumers. It is the duty of retailer to maintain good relationship with them.

(d) Running and maintenance cost is high: There is direct relationship between retailers and customer retailers should display all the products to his customer to attract their attention. Displaying the goods is routine work of retailer. He requires heavy, establishment expenditure to run the business in large scale manner.

(e) Retailer follows one price policy: Manufacturers and wholesales are selling goods on the basis of discount. But retailer must adopt single price policy under similar circumstances because customers observe these keenly.

Question 7.
Briefly explain the modem concept of marketing?
Answer:
According to modern concept of marketing it includes all those activities connected with Identifying the needs of the consumers, and then, organizing the business accordingly to meet the needs of the consumers. It analyses the needs of the consumers before products are produced and offered to them.

In the words of W.J. Stanton, “Marketing is a total system of interacting business activities designed to plan, price, promote and distribute want satisfying products and services to the present and potential customers.” According to Philip Kotler, “Marketing is specifically concerned with how transactions are created, stimulated, facilitated and valued.”

Some of the important points which can be highlighted are –

It is long term oriented.
It aims at establishing customer relationship.
It aims at customer satisfaction and is delight oriented.
Here, sellers focus is on customers needs and wants.
Here, there is an ample scope for professionalism.
It is a broader and comprehensive concept.
It is an integrated marketing approach.
It includes lot of promotional activities.

Question 8.
Mention any five differences between selling and marketing.
Answer:
The term selling & marketing are not synonymous. They differ from each other in many respects.
The main differences between them are :
(i) Selling is the mere exchange of goods for money between the sellers & buyers It is only a part of the marketing process. On the other hand, marketing is a more comprehensive term. It includes not only selling, but also other activities which help the movement of goods from the centres of production to the centres of consumption.

(ii) Selling comes at the end of the manufacturing cycle. But marketing comes at the beginning of the manufacturing cycle.

(iii) Selling is concerned with the creation of mere possession or ownership utility. But marketing is concerned with creation of place, time & possession utilities.

(iv) Selling is concerned with transfer of the goods which the seller has. But real marketing is concerned with marketing available to the consumers the goods which they want.

(v) Selling focusses on the product where as marketing focusses on the customers.

(vi) Selling emphasises the needs of the sellers whereas marketing emphasises the needs of buyers/consumers.

(vii) Selling is product oriented. Where as marketing is consumer oriented.

Question 9.
Distinguish between‘market’,‘marketing’.
Answer:
Market:
In literal sense the term ‘market’ refers to a certain place where buyers and sellers personally meet each other and make their purchases and sales. In other words, it is a place where goods are brought and sold. In economic sense the term ‘market’ does not refer to any particular place where buyers and sellers meet face to face and make their purchases and sales, but covers the whole of any region where the buyers and seller are in such free intercourse with one another that a single price prevails for a certain commodity at a certain point of time throughout the region. It means getting together of buyers and sellers in person or by mail, telephone, telegraph, cable or through any other means of communication. According to Prof. Seligman, “A market means a coming together of offers and parties.”

Marketing –
Marketing includes all these activities connected with identifying the needs of the consumers, and then, organizing the business accordingly to meet the needs of the consumes. It analyses the needs of the consumers before the products are produced and offered to them.

According to Philip Kotter, “Marketing is specifically concerned with how transactions are created, stimulated, facilitated and valued.” In the words of W.J. Stanton, “Marketing is a total system of interacting business activities designed to plan, price, promote and distribute want satisfying products and services to the present and potential customers.”

Question 10.
What is green marketing? explain green marketing.
Answer:
Green marketing includes all the activities intended to generate as well as facilitate any exchange in order to satisfy human needs such that satisfying those needs happen with the most minimal input in the environment.
(a) Product:
The ecological objectives in planning products are to resource consumption and pollution and to increase conservation of scare resource

(b) Price:
Consumers are ready to pay extra value to their product only when the product has extra product value this value may be improved performance function designer visual appear or taste, green marketing gives importance to these values.

(c) Promotion:
In green marketing promotional activities are in combination of a product and biophysical environment. It also gives information about environmental responsibility.

(d) Place:
The choice of where and when to make a product available will have significant impact on customers. Very few customers will go out of their way to buy green product.

Question 11.
What are the salient features of green product.
Answer:
Following are the important features of green product:

They promote clean air quality
Green products are durable and have a low maintence requirements
They are recyclable and reusable
They are made using natural renewable or environment friendly resources
They do not contain any ozone -depleting substances like green house gases
Green products do not contain highly toxic compounds
Green products are biodegradable