CHAPTER – 11
Value
MARKETING
1. Traditionally, marketing has been described in
terms of its functions or activities. In this
respect, marketing has been referred to as
performance of business activities that direct
the flow of goods and services
a. From producers to consumers
b. From consumers to producers
c. From producers to intermediaries
d. From Society to manufacturers
2. In modern times, emphasis is placed on
describing marketing as a ______ process. It
is a process whereby people exchange goods
and services for money or for something of
value to them.
a. Personal
b. Social
c. Marketing
d. Selling
3. Taking the social perspective, Phillip Kolter
has defined marketing as, “a social process by
which individual groups obtain what they
need and want through creating offerings and
freely exchanging products and services of
value with others”. True or False
4. The primary reason or motivation for people
to engage in the process of marketing is to
satisfy some of their ___________.
a. Ego
b. Needs or wants
c. Sales
d. Sales
5. Statement I - Wants are basic to human
beings and do not pertain to a particular
product.
Statement II - Needs, on the other hand, are
culturally defined objects that are potential
satisfiers of needs.
a. Statement I is correct and II is wrong
b. Statement II is correct and I is wrong
c. Both the statements are correct
d. Both the statements are incorrect
6. A ______ is a state of felt deprivation or
feeling of being deprived of something. If
unsatisfied, it leaves a person unhappy and
uncomfortable.
a. Need
b. Want
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c.
d. Offer
7. A good ___________ is the one which is
developed after analysing the needs and
preferences of the potential buyers.
a. Market offer
b. Understanding
c. Need
d. Want
8. Assertion - The buyers make buying decisions
on their perceptions of the value of the
product or service in satisfying their need, in
relation to its cost.
Reason - A product will be purchased only if
it is perceived to be giving greatest benefit or
value for the money.
a. Both (A) and (R) are correct
b. (A) is correct (R) is incorrect
c. Both (A) and (R) are correct, and R
is the correct explanation of R
d. Both (A) and (R) are correct, and R is
not the correct explanation of R
9. ________ refers to the process through which
two or more parties come together to obtain
the desired product or service from someone,
offering the same by giving something in
return.
a. Exchange
b. Market offering
c. Customer values
d. Needs and wants
10. Assertion - All the decisions in a firm are
taken from the point of view of the customers.
Reason - It assumes that in the long run an
organisation can achieve its objective of
maximisation of profit by identifying the
needs of its present and prospective buyers
and satisfying them in an effective way.
a. Both (A) and (R) are correct
b. (A) is correct (R) is incorrect
c. Both (A) and (R) are correct, and R
is the correct explanation of R
d. Both (A) and (R) are correct, and R is
not the correct explanation of R
11. Assertion - The societal marketing concept is
the extension of the marketing concept as
supplemented by the concern for the long-
term welfare of the society.
Reason - The task of any organisation is to
identify the needs and wants of the target
 market and deliver the desired satisfaction in
an effective and efficient manner so that the
long-term well-being of the consumers and
the society is taken care of.
a. Both (A) and (R) are correct
b. (A) is correct (R) is incorrect
c. Both (A) and (R) are correct, and R
is the correct explanation of R
d. Both (A) and (R) are correct, and R is
not the correct explanation of R
12. _____________ is important for making an
analysis of the available opportunities and
threats as well as strengths and weaknesses of
the organisation and help in deciding what
opportunities can best be pursued by it.
a. Creating market offering
b. Pricing decision
c. Gathering and Analysing Market
Information
d. Customer support services
13. Statement I - The design of the product
contributes to making the product attractive to
the target customers.
Statement II - A good design can improve
performance of a product and also give it a
competitive advantage in the market.
a. Statement I is correct and II is wrong
b. Statement II is correct and I is wrong
c. Both the statements are correct
d. Both the statements are incorrect
14. __________ refers to producing goods of
predetermined specifications, which helps in
achieving uniformity and consistency in the
output.
a. Branding
b. Packaging
c. Labelling
d. Standardisation
15. __________ is the process of classification of
products into different groups, on the basis of
some of its important characteristics such as
quality, size, etc.
a. Grading
b. Guarantee
c. Warranty
d. Services
16. Grading is particularly necessary for products
which are not produced according to
predetermined specifications, such as in the
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case of agricultural products, say wheat,
oranges, etc. True or False.
17. Assertion - Packaging is important not only
for protection of the products but also serves
as a promotional tool.
Reason - Packaging have become so
important in modern day marketing that is
considered as one of the pillars of marketing.
a. Both (A) and (R) are correct
b. (A) is correct (R) is incorrect
c. Both (A) and (R) are correct, and R
is the correct explanation of R
d. Both (A) and (R) are correct, and R is
not the correct explanation of R
18. Branding is the process of providing a unique
identity of the product.
a. Branding
b. Brand name
c. Trade mark
d. Brand mark
19. Customer support services are very effective
in bringing repeat sales from the customers
and developing brand loyalty for a product.
True or False.
20. Assertion - Price of product refers to the
amount of money customers have to pay to
obtain a product.
Reason - Price is an important factor affecting
the success or failure of a product in the
market.
a. Both (A) and (R) are correct
b. (A) is correct (R) is incorrect
c. Both (A) and (R) are correct, and R is
the correct explanation of R
d. Both (A) and (R) are correct, and R
is not the correct explanation of R
21. __________ of products and services involves
informing the customers about the firm’s
product, its features, etc., and persuading
them to purchase these products.
a. Product
b. Price
c. Place
d. Promotion
22. The two major decision areas under
____________ function include (a) decision
regarding channels of distribution or the
marketing intermediaries (like wholesalers,
retailers) to be used and (b) physical
movement of the product from where it is
 produced to a place where it is required by the B Brand name ii
customers for their consumption or use.
a. Product
b. Price C Brand mark iii Car
c. Physical distribution
a. A – i, B – ii, C – iii
d. Promotion
b. A – i, B – iii, C – ii
23. A marketing firm has to analyse its
c. A – ii, B – iii, C – i
__________ needs after taking into
d. A – iii, B – i, C – ii
consideration various factors such as nature of
29. The process of giving a name or a sign or a
the product, cost and location of target
symbol etc., to a product is
market.
called___________.
a. Product
a. Branding
b. Price
b. Packaging
c. Transportation
c. Labelling
d. Promotion
d. Marketing
24. In the process of marketing, what is the
30. A _______ is a name, term, sign, symbol,
purpose of having proper storage of the
design or some combination of them, used to
products?
identify the products— goods or services of
a. To maintain smooth flow of
one seller or group of sellers and to
products in the market
differentiate them from those of the
b. To distinguish products from different
competitors.
brands
a. Brand
c. For attractive packaging
b. Brand name
d. For advertising the products
c. Brand mark
25. Which out of the three, is not included in the
d. Trade mark
benefits that a customer may seek to satisfy
31. That part of a brand, which can be spoken, is
from the purchase of a product
called a________. In other words, brand name
a. Functional benefits
is the verbal component of a brand.
b. Psychological benefits
a. Brand
c. Social benefits.
b. Brand name
d. Physiological benefits
c. Brand mark
26. Arvind bought a smart watch for himself. He
d. Trade mark
uses to wear it all the time to track his all day
32. That part of a brand which can be recognised
activities. Which product benefit he is getting
but which is not utterable is called
out of this?
_________. It appears in the form of a
a. Functional benefit
symbol, design, distinct colour scheme or
b. Psychological benefit
lettering.
c. Social benefit
a. Brand
d. Physiological benefit
b. Brand name
27. which name refers to the name of the whole
c. Brand mark
class of the product?
d. Trade mark
a. Brand name
33. A brand or part of a brand that is given legal
b. Generic name
protection is called ___________.
c. Class name
a. Brand
d. Product name
b. Brand name
28. Match the following: (Unsolved)
c. Brand mark
A Generic name i BMW d. Trade mark
34. __________ refers to the act of designing and
producing the container or wrapper of a
product.
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 a. Branding advertising. This is the role of which element
b. Packaging of product mix?
c. Labelling a. Packaging
d. Marketing b. Labelling
35. Match the following (Unsolved) c. Branding
d. Promotion
A Primary i Further packaging
38. Labels are useful in providing detailed
Packaging components
information about the product, its contents,
necessary for
method of use, etc. True or False
storage,
39. Match the following (Solved)
identification or
transportation. A The label on the i Describe the
A toothpaste package of a Product and
manufacturer may local tea specify its
send the goods to company contents
retailers in describes the
corrugated boxes company as
containing 10, 20, ‘Mohini Tea
or 100 units. Company, an
B Secondary ii Product’s ISO 9001:200C
Packaging immediate Certified
container. Company’
plastic packet for B The brand name ii Identification of
socks; toothpaste of any product, the Product or
tube, a match box, say Biscuits or brand
etc. Potato Chips
C Transportation iii Additional layers imprinted on its
Packaging of protection that package helps us
are kept till the to identify, from
product is ready number of
for use. packages, which
A tube of shaving one is our
cream usually favorite brand.
comes in a card C A popular brand iii Grading of
board box. of Hair Products
a. A – i, B – ii, C – iii Conditioners
b. A – i, B – iii, C – ii comes in
c. A – ii, B – iii, C – i different
d. A – iii, B – i, C – ii categories for
36. Milk can now be stored for 4-5 days without different hair,
refrigeration in the recently developed say for ‘normal
packing materials. This is the example for – hair’ and for
a. Innovation other categories.
b. Protection D The pack of a iv Helps in
c. Promotion popular Amla Promotion of
d. Identification Hair Oil states, Products
37. A startling colour scheme, photograph or ‘Baalon mein
typeface may be used to attract attention of Dum, Life mein
the people at the point of purchase. Fun’.
Sometimes it may work even better than E Packaged food v Providing

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 articles must Information 45. Normally _________ prices are charged to
have list of Required by Law cover high quality and high cost of research
ingredients and Development.
declaration a. Higher
regarding b. Lower
vegetarian or c. Moderate
non-vegetarian d. Equal
food additives 46. Price fixation process is also affected by other
40. Those costs which vary in direct proportion elements of marketing such as distribution
with the level of activity are system, quality of salesmen employed, quality
called___________. For example, the costs of and amount of advertising, sales promotion
raw material, labour and power. efforts, the type of packaging, product
a. Fixed costs differentiation, credit facility and customer
b. Variable costs services provided. True or False
c. Semi variable costs 47. Once goods are manufactured, packaged,
d. Total costs branded, priced, and promoted, these must be
41. __________ costs are those costs which vary made available to customers at the
with the level of activity but not in direct _________________
proportion with it. a. Right place, in right quantity and
a. Fixed costs at the right time
b. Variable costs b. Right place, in right Weight and at the
c. Semi variable costs right time
d. Total costs c. Right place, in right quantity and at
42. ___________ are those costs, which do not the right Size
vary with the level of activity of a firm say d. Right quality, in right quantity and at
with the volume of production or sale. the right time
a. Fixed costs 48. Promotion mix refers to combination of
b. Variable costs promotional tools used by an organisation to
c. Semi variable costs achieve its ____________ objectives.
d. Total costs a. Transportation
43. Assertion: Government can intervene and b. Advertisement
regulate the price of commodities. c. Communication
Reason: In order to protect the interest of d. Physical distribution
public against unfair practices in the field of 49. Various tools of communication are used by
price fixing. the marketers to inform and persuade
a. Both (A) and (R) are correct customers about their firm’s products. True/
b. (A) is correct (R) is incorrect False
c. Both (A) and (R) are correct, and R 50. __________ is the most commonly used tool
is the correct explanation of R of promotion. It is an impersonal form of
d. Both (A) and (R) are correct, and R is communication, which is paid for by the
not the correct explanation of R marketers (sponsors) to promote some goods
44. If a firm’s objective is to obtain larger share or service.
of the market; it will keep the price of its a. Advertising
products at __________ so that greater b. Personal selling
number of people are attracted to purchase the c. Publicity
products. d. Sales promotion
a. Higher level 51. Statement – I Advertising is a non-paid form
b. Lower level of communication.
c. Moderate Statement – II The sponsor has to bear the
d. Equal cost of communicating with the prospects.
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 a. Statement I is correct and II is wrong
b. Statement II is correct and I is
wrong
c. Both the statements are correct
d. Both the statements are incorrect
52. Assertion - It is therefore, referred to as
impersonal method of promotion. Advertising
creates a monologue and not a dialogue.
Reason - There is no direct face-to-face
contact between the prospect and the
advertiser.
a. Both (A) and (R) are correct
b. (A) is correct (R) is incorrect
c. Both (A) and (R) are correct, and R
is the correct explanation of R
d. Both (A) and (R) are correct, and R is
not the correct explanation of R
53. ___________ involves oral presentation of
message in the form of conversation with one
or more prospective customers for the
purpose of making sales.
a. Advertisement
b. Personal selling
c. Public relation
d. Sales promotion
54. Assertion - Personal selling is a personal form
of communication.
Reason – In personal selling a direct face-to-
face dialogue takes place that involves an
interactive relationship between the seller and
the buyer.
a. Both (A) and (R) are correct
b. (A) is correct (R) is incorrect
c. Both (A) and (R) are correct, and R
is the correct explanation of R
d. Both (A) and (R) are correct, and R is
not the correct explanation of R
55. Personal selling allows a salesperson to
develop personal relationships with the
prospective customers, which may become
important in making sale. True or False
56. ___________ refers to short- term incentives,
which are designed to encourage the buyers to
make immediate purchase of a product or
service.
a. Advertisement
b. Personal selling
c. Public relation
d. Sales promotion
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57. __________ activities include offering cash
discounts, sales contests, free gift offers, and
free sample distribution.
a. Advertisement
b. Personal selling
c. Public relation
d. Sales promotion
58. The main task of public relation is to
disseminate information and build
__________ about the business.
a. Goodwill
b. Status
c. Identification
d. Differentiation
59. Zoom Udyog, a car manufacturing Co., has
started its business with Zoom 800 and slowly
launched Zoom-1000, Wagon-Z, Swy-fy etc.
and offered various services like after sale
services, availability of spare parts etc.
Identify the element of marketing mix
referred here.
a. Product
b. Price
c. Place
d. Promotion
60. Radha found a worm crawling out of newly
opened tetra pack of a juice manufactured by
a reputed company, Zest, Ltd. She went back
to the shopkeeper from whom the pack was
purchased who directed her to call up the
customer care center. When all her efforts
failed, she went to a consumer activist group
to seek help. The group decided to help Radha
and taken measures to impose restrictions on
the sale of the firm’s products of the
particular batch and urge customers to refrain
from buying the products of the company.
Zest Ltd. lost its image in the market. The
CEO gives the responsibility of bringing back
the lost image of the company to a manager.
a. Sales promotion
b. Advertisement
c. Public Relation
d. Publicity
61. Identify the Marketing Management
philosophy adopted in the following cases:
A. Mansi, a shoe manufacturer for school
students, decided to maximize her profit
by producing and distributing at large
 scale and thereby reducing the average
cost of production.
a. Product concept
b. Production concept
c. Selling concept
d. Marketing concept
B. Nisha, a school bag manufacturer decided
to improve the product for profit
maximization and thus added a water
bottle holder to the existing design.
a. Product concept
b. Production concept
c. Selling concept
d. Marketing concept
C. Jasdeep, a dealer in school uniforms,
decided to maximize his profit by using
different aggressive promotional efforts.
a. Product concept
b. Production concept
c. Selling concept
d. Marketing concept
D. Amar is engaged in manufacturing of
refrigerators. He surveyed the market and
found that customers need a refrigerator
with a separate provision of water cooler
in it. He decided to launch the same
refrigerator in the market.
a. Product concept
b. Production concept
c. Selling concept
d. Marketing concept
62. Shreemaya Hotel in Indore was facing
problem of low demand for its rooms due to
off season. The Managing Director (MD) of
the hotel, Mrs. Sakina was very worried. She
called upon the Marketing Manager, Mr.
Kapoor for his advice. He suggested, that the
hotel should announce an offer of ‘3 days and
2 Nights hotel stay package with free
breakfast and one day religious visit to
Omkarehswar and Mahakaleshwar Temples’.
The MD liked the suggestion very much.
Identify the promotional tool, which can be
used by the hotel through which large number
of prospective pilgrimage tourists, all over the
country and also abroad, can be reached,
informed and persuaded to use the incentive.
a. Advertisement
b. Sales Promotion
c. Personal selling
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d. Publicity
63. ‘Beauty Products Ltd’s is a natural and ethical
beauty brand famous for offering organic
beauty products for men and women. The
company uses plant-based materials for its
products and is the No. 1 beauty brand in the
country. It not Identify the marketing
management philosophy being following by
‘Beauty Products Ltd.’
a. Societal Marketing
b. Marketing
c. Selling
d. Production
64. Radhika was a student of Business Studies of
Call XII. Her father was a farmer who grew
different varieties of rice and was well-versed
about various aspects of rice cultivation. He
was also selected by the government for a
pilot-project on rice cultivation. As a project-
work in Business Studies she decided to study
the feasibility of marketing good quality rice
at a reasonable price. Her father suggested her
to use internet to gather customers’ views and
opinions. She found that there was a huge
demand for packaged organic rice. She knew
that there was no pre-determined specification
in case of rice because of which it would be
difficult to achieve uniformity in the output.
To differentiate the product, form its
competitors, she gave it the name of Malabari
Organic Rice’ and classified it into three
different varieties namely – Popular, Classic
and Supreme, based on the quality. She felt
that these names would help her in product
differentiation. Explain the three functions of
marketing, with reference to the above
paragraph.
a. Gathering and analyzing market
information; Standardization and
Grading and Branding
b. Gathering and analyzing market
information; Packaging and Branding
c. Gathering and analyzing market
information; Standardization and
Grading and Customer support
services
d. Marketing planning; Standardization
and Grading and Branding
65. 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 warning for use were not
mentioned on the packets that led to many
accidents. Identify and explain the important
product-related decision that was not taken
into consideration by the company.
a. Branding
b. Labelling
c. Packaging
d. Channels of distribution