1.Explain the functions of marketing.
Ans :-
(1) Market Research:

• The first and initial work in marketing is market research.
• In simple words it can be said that it is a process of collecting information regarding consumers taste and preferences.
• In large scale production, risk is higher in the present days.
• It is essential to have knowledge regarding consumer’s preference.
• Whether the product will be accepted or not by consumers.
• On this basis future forecast can be done. We get information regarding demand, price competition etc.
• For this there are number of methods observation method etc. sto collect data e.g. questionnaire method,

(2) Collection of Product:

• In many cases products are manufactured at different place and they need to be collected centrally which is known as collection of products.
• Producers are scattered. Some products are seasonally produced, some products are produced on a small scale and some products need further processing and for all these reasons product collection is required.

(3) Transformation of Raw Materials into Consumable Products:

• In many products it becomes necessary for further processing to make it consumable.
• These process are executed at the place where raw material is stored. By making product consumable its market value enhances.
• Care should be taken to see whether the processing is done according to the consumer’s requirement.
• For E.g. cleaning of cereals, pulses, and ripening of fruits, etc.

(4) Standardisation and Gradation of Product:

• Products standardisation is a process in which it is determined that how goods should be.
• The quality of the product standards regarding size, colour, smell, taste, nutrients etc. are there,
• Many products requires government standardisation too.
• Standardisation procedure is done along with gradation.
• In gradation different quality products are classified differently.
• Through that different prices are fixed for different quality products.
• Appropriate price can be charged from the consumers.
• Due to product standardisation and gradation, consumers develop faith on the quality of the product.
• The gradation of agricultural products is done in India by Market Department of Government and the Bureau of Indian Standard does it for Industrial products.

(5) Labelling of the Products:

• A label differentiates the product of one producer from that of other competitors.
• Label is a unique identity of that product.
• Consumer identifies the product only through that label.
• Consumers are not cheated by fake products because of a label.
• Advertisement become easy because of the labeled product.
• Labeling ensure that product quality.
• Often, producer gives a name for the product which is known as brand.
• Brand can be in the form of name, symbol, number, producers name or a design.
• Brand name is kept on label of product.

(6)Price Determination:

• A producer obtains various estimation of expenses regarding his production of goods which includes production cost, product packing, insurance, distribution, advertisement etc.
• To this basic cost, profit component is added to determine the sale price.
• While determining the price, demand for the product and price of the competitor’s product also is considered.
• Price determination should be done before packing because it is mandatory to print the price of the product on the pack.

(7) Packing the Product:

• Packing provides protectionto the product as well as attract consumers towards product.
• The direction for use of the product is also sometimes written on a packing.
• Packing can be also called as a garment for the product.
• Packing makes the use of product easier.
• Products can be easily transferred from one place to another place due to packing.
• Packing helps to preserve product quality and its features.
• Consumers become aware of the price from the packing itself.
• Different materials are used for packing different products, e.g., paper, plastic jars, tinned boxes, glass far, etc.

(8) Storage of Products:

• It is essential to place products in the market on the basis of the demand for the product.
• It become necessary to build a balance between demand and supply of goods.
• Production is done on the basis of future demand.
• This results in the need for storing.
• While storing it becomes necessary to maintain the quality of the product.
• Storage makes movement of product easier and helps in availability of products in the market.

(9) Transportation Service:

• Different types of transport services are used to ensure constant supply of raw materials and to enable finished product to reach the consumer.
• The movement of products take place through road ways, railways, waterways and airways.
• For eg, car manufacturing company transport cars in containers

(10) Take Insurance of the Product:

• In present time, number of risks arise while storing and transporting the product like theft, fire, decoit, lass due to riots, sinking of product in water etc.
• Producers and distributers insure against such risks.
• Modern producers and distributors take different types of insurance like fire insurance, property insurance, accident insurance, marine insurance, riot insurance etc.

(11) Financial Arrangement:

• For all activities of marketing management, working capital has to be arranged.
• To satisfy these requirements well planned financial arrangement is required.
• A financial manager has to take decisions on how much finance is required?
• For which marketing activity? And when is it required?
• For certain seasonal product, advertisements are required in particular season only and so financial arrangement can be done well in advance.
• Marketing manager’s main duties are to create financial availability at the right time and organize advertisement campaigns, distribution channels, branding of the product and market research etc. and to synchronize all these activities.

(12) Advertisement:

• Advertisement strategy is based on the expected demand and availability of finance.
• The process and functioning of marketing depends on the type of product, strategy of advertisement of competitors and to extent of effectiveness of media.
• Advertisement contributes towards creating demand for product.
• This is the reason why after advertising, the demand for such products and services increase.
• In most cases, local advertisement campaign proves to be more effective.

(13) Sales and Distribution System:

• It is essential that products must reach to the consumers from the producer’s place speedily and economically.
• For which appointment of distributors is necessary.
• In most cases producers arrange this through a centralized agency (for an entire district or a state) and reduces the burden of the sales.
• According to the type of product the system of sales and distribution is created.
• If demand for products is very high and continuous in nature, then all the methods are adopted simultaneously.
• In the distributionship, it is necessary that the products must reach to the wholesalers and retailers on time.
• In some cases producers are selling the product at the place of promotion.

(14)Selling:

• Selling refers to a process of exchange in marketing management in which the product is handed over to the consumer in exchange for money.
• The role of middlemen is very important in selling function.
• More aggressive distributor can generate more sales.
• Very often, the producer directly sells the products to the consumer.
• Personal selling is the most effective form of selling

2.Explain the factors affecting the price of a product.
Ans :-

1. Production Cost:

• The most important aspect in price determination is production cost.
• It includes, raw material cost, production cost, administrative cost, sales and distribution expenses etc.
• While determining price of a product, cost of production is considered.
• While a new product is launched, number of expenses are incurred.
• Such expenses are included in the selling price of the product.
• No price can be fixed lesser than the cost of production.

2. Demand for the Product:

• Demand for the product and the price of that product are directly related.
• Factors like consumers taste and preference, number of consumers, their purchasing power, number of competitors in the market affect the demand for a product.
• When demand for a product is high, the price of the product can be kept high but when the demand for the product is low, price is to be kept low.
• When competitors are more or when the demand of a product of competitors is high, the producer has to fix the price in such a way that it is same as that of competitors.
• When competitors are less, price can be kept high and more profit can be earned.

3. Competition in the Market:

• The extent of competition affects the product price directly.
• Producer fixes competitive price when the number of competitors are more and competition is high.
• Price is fixed on the basis of the objectives like to beat competitors or to make their entry difficult or to expel them from the market.
• If the prestige of the firm is high in the market, it can charge more price from the consumers than the competitors.

4. Governmental and Legal Controls:

• Those business units which enjoy monopoly usually charge high price.
• Government imposes control on such business units to protect the interest of the people.
• Prices of many products are highly fluctuating, and therefore number of legal controls are imposed.
• These factors have to be taken into consideration while determining product price.
• Government imposes certain regulatory control on product which are essential for life e.g. lifesaving drug, petrol, diesel, paper for daily newspaper etc.

5. Price Determination on the Basis of Objectives:

• A. Maximum Profit: This objective is aimed, when monopoly is in existence and when the product is produced after having incurred heavy research expenses.
• B. To Acquire Dominant Position in the Market: In most cases to acquire dominant market share, prices are kept at a very low level to attract consumers. E.g. Jio
• C. To Sustain Competition: When competitors are more and when competition is high, the business firms are ready to fix prices lower than or at par with that of his competitors.

6. Economic Condition:

• Existing economic condition plays an important role in determining the price of the product.
• If the economic condition of the country is good, price can be fixed at a higher level and if there is a recession, product price is reduced.

7. Buying Behaviour:

• Consumer behaviour plays an important role in product price determination.
• Factors that determining consumers’ behaviour include, consumers’ habits, social, cultural, individual, personal and economic condition.
• Due to these factors, the attitude towards the product may change and ultimately product do not get desired or expected response from the consumers.
• It is desirable to determine the price of the product after considering all these factors.

3.Explain the sales-promotion techniques.
Ans :-
Concept:

• Sales promotion is an important concept utilized along with advertisement and personal selling in promotion.
• Advertisement and personal selling mainly give information about the product while sales promotion gives prompt reason to buy the product.
• Sales promotion is a group of techniques which quickly attracts the customers and results into sales.

Definition

• According to Kotler, sales promotion are short term incentives that encourage the customer to buy the product or service. Sales promotion have quick effects on customers.

Sales Promotion Techniques:

1.  Sale: When the product is offered at lower price than its actual price, it is known as 1 sale. Generally such techniques used by business units to reduce closing stock.
2. Discount: When actual price charged for a product is less than its original price it is known as discount. Sometimes defective products are sold at discount so that customer would get attracted.
3. Advertisement Coupon: In this technique the marketing manager checks the effectiveness of the advertisement and customers are also given the benefits. Here, the customers are told to bring the cutting of the advertisement or the packing material on which they are given monetary benefit on their purchasing.
4. Gift: Sometimes a small gift is given along with the main product. For eg giving 1 4 soap free on purchasing 3 soap bars. Sometimes more quantity is given in the same price for e.g. giving 20% more shampoo/tooth paste at the same price.
5. Additional Gift: Looking at the requirement of the customers free additional gifts are given along with the main product. For e.g. giving toothbrush with a toothpaste. Sometimes, product not related with the main product is given as a gift. For e.g giving one ball pen free on purchasing four units of a soap.
6. Lucky Draw: In this technique the customer is given a coupon as a code and on a particular day results are declared and prizes are given to the winners. For e.g Bharat petroleum gives prize winning coupons on buying of petrol of Rs 200/-or more.
7. Facility of Interest Free Loans: This technique is used when the product is high priced and the customer cannot afford to pay the amount all together. For e.g. giving interest free loans on buying a television set. Here a customer can begin the usage of product by paying a small amount for it.
8. Distributing Samples: Sometimes samples are distributed for good items or low price products. Generally the samples are distributed only for the customer to experience the product. Shampoo, soap, oil, etc. distributed free of cost in small sachet.
9. Organizing Competition: The producers organise competition in order to promote his new product. For e.g. the company making crayons for children would collect information about the customer by organizing drawing competition for them before launching new colors in the market. Here the winner gets the new products as a prize.

4.Explain in detail the role of advertisement.
Ans :-
Role (Functions) of advertisement:

1. Creates demand:

• Advertisement provides information about products to the consumers in the market.
• The information might be in the form of utility of the product, its features, how is it better than others, etc.
• All such information creates a sense of buying and using the product in the minds of people. This is how the demand of the product is created.
• Initially, people might buy the product on trial basis. Once they get used to it, they keep on demanding the product.

2. Benefit of large scale production:

• Advertisement can be targeted to a very large number of consumers at one go. This increases the demand many-folds.
• In order to meet the huge demand, the company has to undergo large-scale production. Large scale production reduces production cost and increases profitability.
• As a result, the company earns more return as compared to the advertisement cost.

3. Product awareness:

• Advertisement helps in providing information about the product to the consumer. The information can be utility of the product, features, how to use the product, etc.
• When a product has more than one usage then through advertisement such information is passed on to the potential consumers.
• Producer also creates a trust in consumer’s mind regarding the quality of the product.
• By sharing the trust and satisfaction of current consumers, new consumers can be convinced to purchase the product.
• Thus, there are several ways in which advertisement creates awareness about the product.

4. Helpful in employment generation:

• Due to advertisement, demand for a product or service increases. This leads to rise in employment in several sectors such as production, logistics, service and repair, etc.
• Also, severalemployment opportunities are created in the field of advertisement itself. This includes employment as copy writers, advertising distributors, film makers, artists, etc.

5. Betterment of standard of living:

• Advertisement creates awareness about new and innovative products in the market. Over and above fulfilling basic needs, consumers buy the products for living a comfortable life, a life where in their work can be done faster, and improve their standard of living.

6. Maintenance of quantum of sales:

• When a product is been advertised and repeated over and over several times, it creates a lasting impression and remembrance on the minds of consumers. This is the reason why at the time of purchase, consumer shows a prompt preference for these products.
• Such a policy of advertisement keeps sale at consistent level.
• In fact, products that are continuously advertised generate better sale than competitor’s products.