Short Answer TypeDistinguish between 'Selling Concept' and 'Marketing Concept' of Marketing Management Philosophies on the basis of 'main focus'.
Under three-tier machinery where can a legal heir or representative of a deceased consumer file a complaint when the compensation claimed is 25 Lakhs?
Pragya bought an iron of a reputed brand for 1,500 but it caused an electric shock while it was being used. Pragya wants to exercise her 'Right'. Identify the 'Right' under which she can be protected.
Ajay was appointed a marketing head of 'Alfa Enterprise' manufacturers of toothpaste and toothbrushes. His target sale was 2000 units a month. Apart from thinking about various channels of distribution to achieve the target he himself started visiting schools in backward areas. He found that even after taking various steps and counselling, some school children had not started brushing their teeth. He investigated and found that they could not afford to buy toothbrush and toothpaste. So with due permission he started donating 200 toothbrushes and toothpastes every month to the school.
(i) Identify the channel of distribution 'Ajay' would adopt for distribution of toothpaste and toothbrushes and justify it by giving one reason.
(ii) State any two values which Ajay wants to communicate to the society.
'Though branding adds to the cost, it provides several advantages to the consumers'. In the light of the statement, state any three advantages of branding to customers.
What is meant by 'Long-term Investment Decision? State any three factors which affect the long-term investment decision.
Explain any four points of importance of consumer protection from the point of view of business.
Long Answer TypeDifferentiate between ‘capital-market’ and ‘money-market’ on the following basis:
(i) Participants;
(ii) Instruments;
(iii) Investment outlay;
(iv) Duration and
(v) Liquidity.
Explain ‘Price’ as an element of marketing– mix. Also, explain any four factors that affect the fixation of price of a product.
Price is one of the most important elements of marketing mix. Price is the amount of money expected, required, or given in payment for something. It represents the sum of values that consumers exchange for the benefit of having or using the product The marketers have not only to decide about the objectives of price setting but to analyse the factors determining the price and fix a price for the firm’s products.
Factors Affecting Price Determination
There are number of factors which affect the fixation of the price of a product and they are:
1. Product Cost: One of the most important factors affecting price of a product or service is its cost. This includes the cost of producing, distributing and selling the product. The cost sets the minimum rate at which the product may be sold. There are broadly three types of costs: viz., Fixed Costs, Variable Costs and Semi Variable Costs. A product’s price must at least cover the variable cost to get a marginal profit.
2. The Utility and Demand: While fixing price, the utility and demand for the product must be taken into consideration. While the product costs set the minimum limit of the price, a demand of the buyer sets the upper limit of price.
3. Extent of Competition in the Market: The pricing of a product also depends upon the competition for the product. If the product have close substitutes, it cannot fix high price as customers will leave the product and buy its substitute.
4. Government and Legal Regulations: In order to protect the interest of public against unfair practices in the field of price fixing, Government can intervene and regulate the price of commodities. Government can declare a product as essential product and regulate its price. They can also fix price limits within which only one can charge for a product.
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