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Enterprise Marketing Class 12 Entrepreneurship Important Questions

Please refer to Enterprise Marketing Class 12 Entrepreneurship Important Questions with answers below. These solved questions for Chapter 3 Enterprise Marketing in NCERT Book for Class 12 Entrepreneurship have been prepared based on the latest syllabus and examination guidelines issued by CBSE, NCERT, and KVS. Students should learn these solved problems properly as these will help them to get better marks in your class tests and examinations. You will also be able to understand how to write answers properly. Revise these questions and answers regularly. We have provided Notes for Class 12 Entrepreneurship for all chapters in your textbooks.

Important Questions Class 12 Entrepreneurship Chapter 3 Enterprise Marketing

All Enterprise Marketing Class 12 Entrepreneurship Important Questions provided below have been prepared by expert teachers of Standard 12 Entrepreneurship. Please learn them and let us know if you have any questions.

Short Answer Type Questions

Question. Explain the disadvantages of skimming price method.
Answer :
Explain the disadvantages of skimming price method.
1. If the competitors start selling the same products at a lower price, it will let the consumers think that the company sells the products at high prices. This will result in consumer dissatisfaction and affects the reputation. The consumers might also stop purchasing the other products of the company thinking that they too are high in prices.
2. When the legal and government policies are stringent, price skimming result in legal issues.
3. There is a danger of losing reputation among the consumers. So, the consumers will wait and keep a watch on the price. This results in consumers purchasing a new product not immediately but after few months when the price is fallen.

Question. What are the rules for advertising?
Answer :
 Organizations usually follow the four rules provided below before considering any form of advertising. 
1. Aim: The central aim of the company will be analyzed. Need to decide on the aim of the advertising like
a. is it for providing information and inform the consumers?
b. Is it for improving the image of the business?
c. Improving the sales
d. Improving the produce listings.
2. Target: The primary target need to be determined. Based on that a specific segment of customers like
a. Youngsters
b. College Going Students
c. Male
d. Female
e. Kids
f. Working professional
3. Media: Considering the aim of the advertising and the targeted segment determin which media best suits for advertising. The media like
a. Internet
b. Print
d. Movies
e. Banner posters/hoardings
4. Competitors: Compare with the advertising strategies followed by the competitors.
Based on the results achieved by the competitors, a decision will be taken regarding the approach to be followed.

Question. What are the different roles played by a salesperson?
Answer :
 The following are the roles played by a sales person.
a. Be Persuasive: Sales persons meet the customers in-person. They should be effective in communication and ensure that they are able to persuade the potential customer to buy the product. They directly communicate with the customers and provide an oral presentation about the product to generate a sale. Good communication skills plays significant role in this regard.
b. A service provider: They offer the sale of service and create awareness about the product there by generating interest in the customer to buy the product.
c. Be informative: The should have substantial information about the product and be able to answer any questions the customer has about the product. This ensures that the customer is impressed by the information about the product and this in turn will lead to a sale.

Question. Who is a stakeholder?
Answer :
 Stakeholders refer to different segments in a society who have direct impact on the business decision making process and can directly impact the marketing performance of the business. Various groups that fall into the category of stakeholders are as follows:
a. Clients/Customers
b. Community Groups
c. Employees/Staff
d. Financial institutions
e. Government
f. Local communities
g. Media
h. Shareholders
i. Strategic partners
Maintaining good public relations with all the stake holders help the company to increase the goodwill which help in improving the business through referrals.

Question. Explain the benefits of CRM?
Answer :
The following are the advantages that the organizations experience when using CRM.
a. All the business data is maintained and accessed from a central location.
b. Availability of all the data related to various departments like customer service, HR, marketing and sales at a central location helps the management and the employees to have immediate access to the up-to-date information whenever they want it.
c. Collaboration among various departments in the organization becomes easier.
This in turn help the organization to come up with efficient automated processes. This intern result in efficient business processes.
d. Round the clock availability of information related to customers, customer needs and market needs.
e. All the available data can be integrated with the current system to achieve consolidation of all the business information.

Very Long Answer Type Questions

Question. Explain the important factors affecting the choice of channels of distribution by the manufacturer.
Answer :
While choosing a distribution channel, the manufacturer usually evaluates it from the following factors perspective.
1. Unit value of the product: Expensive products like diamond ornaments or industrial equipment use a small distribution channel. Less expensive products use long distribution channels.
2. Customized or Standard size product : When the product is customized then the manufacturer should be directly in touch with the customer to ensure that the product is matching the customized requirements of the customer. So a small distribution channel is used. On the other-hand standard products are distributed through long distribution channels.
3. Perish-ability of the products: Perishable products like food items etc choose shortest distribution channel so as to deliver the product to the customer. On the otherhand if the product is durable then long distribution channel is used.
4. Technical nature: When the product is technically more complex then the product is directly delivered to the customer so as to give them good insight into the technical intricacies of the product. On the other hand a product which is technically not so complicated is delivered through long distribution channels.

Question. Explain any 6 commonly used media options.
Answer :
The following media options are used for advertising.
1. Ambient: Ambient advertising is any type of advertising to target the potential
customers outside the home. Examples include the the ads that appear behind the utility bills, the ad that appears when the lift door in the shopping mall is closed, displaying the branded coasters at a local club, projections onto the buildings, distribution of branded mugs etc. The scope is as limitless as the imagination.
2. Directory listing: The business details are printed in yellow or white pages, local business directories, trade or union directories. The business reaches the customers who use this media.
3. Direct mailing: Catalogues, pamphlets, newsletters or letters are sent to the customer through email or post or fax. This form of advertising is broadly used by the businesses.
4. Internet: Now-a-days, Internet became a widely adopted media for advertising. Ads are placed on the websites. These ads are in the form of links from one website to the other. Other forms include publishing the content on the blogs, providing online games, social networks, forums and search engines.
5. Movies: Businesses purchase cinema advertising for a number of screenings or “runs”. This can be either on a particular cinema or screen. The advertisers usually offer the production and screening of the advertisement. In addition to this, businesses sponsor movies and include their advertising as part of the movie itself.
6. Office front or window display: In this form of advertising, the business office or shop’s exterior is very well maintained with clear and bold sign. The windows are maintained bright and attractive and well lit during the night hours. It projects the business logo and stresses on the fact that why their product or service is worth trying.
To summarize, it should have very good impact to grab the attention from onlookers.
7. Outdoor: This form of advertising displays static advertising in the form of billboards, backside of street benches, bus shelters. In some other form it appears as mobile advertising with the ads displayed on autos, buses, trains, taxis etc.
8. Point of sale: Customers are targeted through floor stickers, digital advertising in the store or super markets, signage attached to the shopping carts, posters at the billing counters, posters in the shelf, conducting surveys about the product in the store. This helps the business to change customer decision and make them think to buy the product or service.
9. Press: Ads are displayed in the journals, magazines and news papers. Businesses adopt this form of advertising to build the image, spreading of information and to conduct the sales campaigns. This is more suitable for small businesses.
10. Radio: Radio advertising is effective to reach targeted audience like teenagers, racing followers or book lovers etc. It is usually in the form of spot advertisements (spanning 15 to 30 seconds), promotions or talk-shows/RJ discussions. Many radio stations offer production and extension of these campaigns through their websites too.
11. Stationary: Businesses print stationary like business cards, envelops, letterheads etc to promote their business image or to spread the name of their business. The stationary used is of good quality and will provide everyday presentation of the business image.
12. Television: Television if one of the most powerful advertising medium as it uses sight, sound and movement to grab the attention of the viewers. Due to high cost involved in producing and getting the airtime to play the ads, this form of advertising is mostly suitable for well established businesses.

Question. Explain the methods of negotiation.
Answer : Negotiation is a process in which two or more parties, having different needs and goals, discuss about an issue to arrive at a mutually acceptable solution. Negotiation skills are very critical in business environment which involves
1. Informal day-to-day interactions
2. Formal transactions (for instance negotiations related legal contracts, sale agreement, lease agreement, service delivery requirements etc) Good negotiations play a critical role in business success as they help in
1. Avoiding conflicts or issues in the future
2. Build and maintain good relations
3. Providing long-term, quality solutions
The following are the various negotiation techniques.
1. Integrative: Integrative negotiations, also known as win-win, requires the parties involved to arrive at a solution which makes everyone a winner. This might require that the parties involved make a trade off, consider multiple issues and try to enlarge the pie instead of dividing it. Integrative negotiations promote the development of good working relations and trust
2. Distributive: Distributive negotiations, also known as win-lose, are the ones in which one party wins and gets what it needs while the other party loses and has to give up something. Consider the case of buying an asset like a land for the firm. In this case the buyer will try to reduce the price as much as possible while the seller will try to get as much as possible. It appears that the parties have conflicting interests. Distributive negotiations will not promote lasting/good working relations.
3. Inductive: This type of negotiation start with working on small details and continue to work upwards until an agreement is made. An example is the case where the labour union is negotiating with the factory management regarding the provision of facilities for the employees, employee pension scheme and investment plan. They start with negotiating small details initially and then start moving up onto the bigger things.
4. Deductive: In this case, the involved parties arrive at an agreed upon strategy to start the negotiations, these negotiations start in accordance with the established principles and considering a formula to arrive at a negotiation while working out the details.
5. Mixed: This is most commonly used form of negotiation and is a mix of both the inductive and deductive methods of negotiation.

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