Ans. 3. (a), 2013.<\/strong><\/a><\/p>\nQuestion 3:<\/strong>
\n(a)<\/strong> Why is it said that Marketing is Pervasive? [2]<\/strong>
\n(b)<\/strong> Explain Promotion Mix. [2]<\/strong>
\n(c)<\/strong> Give two features of Salesmanship. [2]<\/strong>
\n(d)<\/strong> Describe the. importance of Public Relations to a business enterprise [2]<\/strong>
\n(e)<\/strong> Give two differences between Direct and Indirect Labour Cost. [<\/strong>2]<\/strong><\/p>\nAnswer:<\/strong>
\n(a)<\/strong> Marketing operates within the framework of total environment which comprises economic, social, legal, political and other forces. Marketing is required in business as well as in social and other organisations.<\/p>\n(b)<\/strong> Promotion Mix<\/strong> consists of all the. activities aimed at persuading customers to buy the product. The various elements of promotion mix are:<\/p>\n\n- Advertising.<\/li>\n
- Personal Selling.<\/li>\n
- Sales Promotion.<\/li>\n
- Publicity.<\/li>\n<\/ol>\n
(c) <\/strong><\/p>\n\n- Salesmanship involves direct, personal or face-to-face contact between the\u00a0seller or his representative and the buyers.<\/li>\n
- It involves contact with a limited number of persons.<\/li>\n<\/ol>\n
(d)<\/strong> The need for communication between business enterprises and their public is being increasingly recognised. Public relations functions is required to bridge this communication gap.<\/p>\n(e)<\/strong><\/p>\n\n- The labour which can be wholly and directly identified with a particular product is called direct labour whereas indirect labour means the labour which cannot be wholly and directly identified with a particular product.<\/li>\n
- Direct labour includes labour engaged in actual production of the product whereas indirect labour is the labour employed for performing tasks incidental to manufacture.<\/li>\n<\/ol>\n
Question 4:<\/strong>
\nGive two reasons either for<\/strong> or against<\/strong> each of the following:
\n(a)<\/strong> Ethics has no place in public relations. [2]<\/strong>
\n(b)<\/strong> Every transaction has four effects on accounting records. [2]<\/strong>
\n(c)<\/strong> Training is very costly. [2]<\/strong>
\n(d)<\/strong> Banking is a relationship oriented industry. [2]<\/strong>
\n(e)<\/strong> Public relations is just a gimmick. [2]<\/strong><\/p>\nAnswer:<\/strong>
\n(a) Against:<\/strong><\/p>\n\n- Publicity not backed by good action is unethical. It will damage rather than improve the image of the organization.<\/li>\n
- Accurate and timely communication with the public is essential for good public relations.<\/li>\n<\/ol>\n
(b) Against:<\/strong><\/p>\n\n- Every business transaction has a double effect on the business. This double effect can be recognised only by recording both the aspects of energy transaction. If one account is debited, any other account must be credited and vice-versa.<\/li>\n
- It is due to the principle of Dual Aspect that the two sides of Balance Sheet are always equal.<\/li>\n<\/ol>\n
(c) Against:<\/strong><\/p>\n\n- Training helps to improve the quantity and quality of work performance. Well-trained employees produce more and better goods.<\/li>\n
- By training, employees learn new and better methods of doing jobs. They make better use of materials and machinery. As a result, wastage of resources and cost of production are reduced<\/li>\n<\/ol>\n
(d) For:<\/strong><\/p>\n\n- Banking is a service based industry trying to satisfy the needs of the customer.<\/li>\n
- Banking is relationship oriented as there is an agency relationship between the banker and the customer based on mutual trust and confidence.<\/li>\n<\/ol>\n
(e) Against:<\/strong><\/p>\n\n- Public relations is an essential element in the communication system that enables individuals to be informed on many aspects of subjects that affect their lives.<\/li>\n
- Public relations helps promotion of a company s goods oi services and builds up image.<\/li>\n<\/ol>\n
Section – B (60 Marks)<\/strong><\/span>
\n(Attempt any four<\/strong> questions from this section)<\/em><\/p>\nQuestion 5:<\/strong>
\n(a)<\/strong> How does open market operations help m credit control ? ** [5]<\/strong>
\n(b)<\/strong> What is place mix? State its components. [5]<\/strong>
\n(c)<\/strong> What are the qualities of a good salesman? Explain any three in detail [5]<\/strong>
\n** Answer has not given due to out of present syllabus<\/p>\nAnswer:<\/strong>
\n (b)<\/strong> Place mix<\/strong> relates to distribution of products is an important element of marketing mix. A channel of distribution or trade channel is the route or path along which products flow from the point of production to the point of ultimate consumption or use. It starts with the producer and ends with the consumers. In between there may be several intermediaries or middlemen who operate to facilitate the flow of the physical product or its ownership from the producer to the consumer.
\nComponents of Place Mix:<\/strong> (1) Channels of distribution and (2) Physical distribution.<\/p>\n\n- Channels of distribution:<\/strong> Channels of distribution are the routes through which goods move from the producer to consumers. A firm has to decide whether to sell directly or to sell through middlemen. The number and type of middlemen have also to be decided.<\/li>\n
- Physical distribution:<\/strong> Physical distribution includes all those activities which are involved in moving products or services from manufacturers to consumers. It consists of transportation and storage of goods.<\/li>\n<\/ol>\n
(c)<\/strong> The qualities of a good salesman are:<\/p>\n\n- Good physique<\/li>\n
- Cheerful<\/li>\n
- Sincerity<\/li>\n
- Sensitiveness<\/li>\n
- Knowledge<\/li>\n<\/ol>\n
A good salesman should possess:<\/p>\n
\n- Good Physique:<\/strong> A good salesman must have sound health, good appearance, cheerful disposition and an impressive voice. He should be properly dressed.<\/li>\n
- Cheerful:<\/strong> Pleasing manners and a smiling face are necessary for a successful salesman. He should be polite and courteous.<\/li>\n
- Sincere:<\/strong> A good salesman is always loyal and committed to his work. He is dependable and courageous.<\/li>\n<\/ol>\n
Question 6:<\/strong>
\n (a)<\/strong> Mention two advantages and two disadvantages of cost plus pricing strategy of product life cycle. [5]<\/strong>
\n(b)<\/strong> Explain Asset and Liability. Name the different types of Liabilities. ** [6]<\/strong>
\n(c)<\/strong> Distinguish between Advertising and Sales Promotion. [5]<\/strong><\/p>\nAnswer:<\/strong>
\n (a) Two Advantages:<\/strong><\/p>\n\n- It is a safe approach to pricing. It ensures full coinage of cost and helps in achieving a reasonable return on capital employed.<\/li>\n
- The method is logical and can be defended on moral grounds. It discourages cut-throat competition in the market.<\/li>\n<\/ol>\n
Two Disadvantages:<\/strong><\/p>\n\n- It is very often difficult to determine accurately the cost per unit due to common overheads and joint products.<\/li>\n
- It fails to reflect competition in the market.<\/li>\n<\/ol>\n
(c)<\/strong> Difference between Sales promotion and Advertising:<\/p>\n\n\n\n\n Basis of Distinction<\/strong><\/p>\n<\/td>\nSales Promotion<\/strong><\/td>\n\n Advertising<\/strong><\/p>\n<\/td>\n<\/tr>\n\n\n 1. Meaning<\/strong><\/p>\n<\/td>\nMarketing activities which stimulate consumer buying and dealer effectiveness.<\/td>\n | Any paid form of imper\u00adsonal presentation and promotion of a product, service or idea by an identified sponsor.<\/td>\n<\/tr>\n | \n2. Time Horizon<\/strong><\/td>\nShort-term Perspective<\/td>\n | \n Long-term Perspective<\/p>\n<\/td>\n<\/tr>\n | \n\n | | | | | |