Crackers Ltd., a fire cracker manufacturing company launched some new products on eve of Diwali which attracted many buyers. To meet the increased demand, the company employed children from nearby villages. Although the product was in great demand, appropriate safety warnings were not mentioned on the packets that led to many accidents.
(i) Identify and explain the important product-related decision that was not taken into consideration by the company.
(ii) Also, identify any two values which were violated by the company.
(i) The important product-related decision the company failed to consider is labelling. Labelling refers to designing and developing the label to be put on the package. It gives all the details of the product like date of manufacture, details about the manufacturer, safety warnings, etc.
(ii) The two values violated by the company here is:
a) Duty to follow the laws of the country. In India, child labour is banned under various Acts.
b) The company’s duty to protect consumer and ensure their safety by making quality products and by giving the necessary information about their products.
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 element 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 factor 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, the 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.
A TV manufacturing company is spending substantial amount of money to persuade the target customers to buy its T.V. sets through advertisements, personal selling and sales promotion techniques. Identify the element of marketing mix referred here.
The marketing mix referred here is promotional mix.
Your Company has set up a food processing unit in Kashmir with a production capacity of 10,000 litres of apple juice per day. The company plans to market the apple juice in tetra pack of 100 millilitres. Design a label for the same.
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Name of the product/ Appyju |
There are some characteristics that should be kept in mind while choosing a brand name. Explain any two such characteristics that a good brand name should have.
Brand Name is a part of a brand consisting of words, letters and a group of words or letters comprising a name which is intended to identify the goods or services of a seller or a group of sellers and to differentiate them from those of competitors.
Following are the characteristics a good brand name should have.
(i) The brand name should be short, easy to pronounce, spell, recognise and remember e.g., lux, VIP, Rin, Vim, etc.
(ii) A brand should suggest the product’s benefits and qualities. It should be appropriate to the product’s function. e.g. all out, Promise ,Fair and lovely and Boost.
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