This page contains the CBSE entrepreneurship class 12 chapter Enterprise Marketing notes. You can find the questions/answers/solutions for the chapter 3 (Unit 3) of CBSE class 12 entrepreneurship in this page. You can also find the videos for the problems in this lesson.
A. Very Short Answer Questions
Question 1
1. What is meant by goal setting?
Answer 1
Goal setting means establishing short-term or long-term objectives with deadlines and measurable targets.
Question 2
2. What is marketing strategy?
Answer 2
Marketing strategy is the action plan used to achieve business goals through the 4 P’s.
Question 3
3. What are the components of marketing mix?
Answer 3
The components of marketing mix are Product, Price, Place and Promotion.
Question 4
4. Which is the shortest channel of distribution?
Answer 4
The shortest channel is the direct channel (zero-level): Producer to Customer.
Question 5
5. What are the components to a successful sales strategy?
Answer 5
Its key components are product placement, promotion, customer acquisition and customer retention.
Question 6
6. Define branding.
Answer 6
Branding is giving a product a name, sign or symbol to distinguish it from rivals.
Question 7
7. Why is a logo important for a company?
Answer 7
A logo is important because it acts as the identifying symbol of the business or product.
Question 8
8. Give the meaning of tagline with the help of an example.
Answer 8
A tagline is a short, memorable phrase that communicates the enterprise’s message; for example, “Just Do It.”
Question 9
9. Explain the term packaging.
Answer 9
Packaging means the pack design and material used to present and protect a product. It also helps create comparative advantage.
Question 10
10. What is labelling?
Answer 10
Labelling is the display of product information on the container, packaging, or the product itself.
Question 11
11. Define advertising.
Answer 11
Advertising is a form of communication that persuades customers to choose a product or service.
Question 12
12. What is negotiation?
Answer 12
Negotiation is a process in which parties discuss an issue to reach a mutually acceptable solution.
Question 13
13. Explain the meaning of CRM.
Answer 13
CRM means Customer Relationship Management—managing customer information and interactions to build loyalty.
Question 14
14. When do we conclude that a business has failed? Watch Video
Answer 14
A business is considered failed when it cannot earn profit or enough revenue to cover expenses.
Question 15
15. Explain the following term: ATL.
Answer 15
ATL means Above-the-Line promotion that uses mass media to reach a large audience.
Question 16
16. Give the meaning of BTL. Watch Video
Answer 16
BTL means Below-the-Line promotion aimed at specific, targeted groups of consumers.
Question 17
17. What is TTL? Watch Video
Answer 17
TTL means Through-the-Line promotion, which combines both ATL and BTL communication.
B. Short Answer Questions
Question 1
1. What are the rules for goal setting? Watch Video
Answer 1
The rules for goal setting are that business goals should be:
•
relevant
•
actionable
•
achievable stretches
This means the goals should be useful for the business, clearly linked with action, and challenging but still possible to achieve.
Question 2
2. What does the marketing strategy of a company include? Watch Video
Answer 2
The marketing strategy of a company includes all the basic and long-term marketing activities related to:
•
analysing the company’s situation,
•
formulating and selecting market-oriented strategies,
•
and achieving marketing objectives.
At this level, it mainly includes the marketing mix, especially the 4 Ps — Product, Price, Promotion, and Place.
Question 3
3. What is sales strategy? Watch Video
Answer 3
A sales strategy is a plan that positions a company’s brand or product to gain a competitive advantage. It helps the sales team focus on the target market and communicate with customers in a relevant and meaningful way.
Question 4
4. Explain the different types of sales strategies. Watch Video
Answer 4
There are two basic types of sales strategies mentioned:
1.
Direct sales strategy – the salesperson compares the product directly with the competitor’s product and may even discuss the competitor’s features.
2.
Indirect sales strategy – the salesperson focuses more on the strengths of his/her own product instead of directly attacking the competitor.
Question 5
5. Differentiate between trade mark and brand mark. Watch Video
Answer 5
Basis
Brand Mark
Trade Mark
Meaning
It is the part of a brand that can be recognized but cannot be spoken.
It is a brand or part of a brand that gets legal protection.
Form
It appears as a symbol, design, or distinct colour scheme.
It is a legal identity protected against use by other firms.
Nature
It is mainly a visual identity.
It is mainly a legal protection term.
Example style
Example: symbol/mascot/design.
Example: legally protected brand name or mark.
Question 6
6. What is the purpose of logo? Watch Video
Answer 6
The purpose of a logo is to act as an identifying symbol for a product or business. It helps customers recognize the enterprise easily and supports product identification in the market.
Question 7
7. Why should we advertise? Watch Video
Answer 7
We should advertise because advertising is a form of communication designed to persuade potential customers to choose a product or service over that of competitors. It helps spread the message about the product to customers, stakeholders, and the broader public.
Question 8
8. What is employee management? Watch Video
Answer 8
Employee management means managing human resources properly so that the organisation can succeed. It includes recruiting, training, developing, motivating, and paying the right people appropriately so that they stay with the organisation and add value.
Question 9
9. Is vendor management different from employee management? Enumerate. Watch Video
Answer 9
Yes, vendor management is different from employee management.
•
Vendor management deals with outside suppliers and procurement. Its focus is on sourcing raw materials and getting the best possible quality at the best possible price within budget.
•
Employee management deals with the people working inside the organisation. Its focus is on recruitment, training, motivation, and retention of employees.
So, vendor management is about managing supply sources, while employee management is about managing human resources.
Question 10
10. Differentiate between ATL and BTL. Watch Video
Answer 10
Basis
ATL
BTL
Full form
Above-the-Line
Below-the-Line
Main focus
Reaches a large audience through mass media
Targets specific groups of consumers
Nature
Broad and general communication
Specific and memorable activities
Common methods
Print, online media, television, cinema
Sponsorship, sales promotion, public relations, personal selling, direct marketing
C. Short Answer Questions
Question 1
1. Explain in detail SMART goals. Watch Video
Answer 1
SMART goals are goals that are clear and practical. In simple terms, they should be:
•
Specific – clearly defined
•
Measurable – capable of being checked
•
Achievable – possible to attain
•
Realistic / Relevant – useful for the business
•
Time-bound – linked to a deadline
The business goals should be relevant, actionable, and achievable stretches. So, SMART goals help the entrepreneur move with clarity, direction, and proper control.
Question 2
2. Explain the disadvantages of skimming price method. Watch Video
Answer 2
In the skimming price method, the product is introduced at a high price to earn higher profit from early buyers. Its main disadvantage is that the product may remain high-priced compared to competitors, which can reduce wider market acceptance. Skimming is usually for a limited period, and later the seller may need to shift to other pricing methods like penetration or economy pricing to gain more market share.
Question 3
3. What are the qualities of a good brand name? Watch Video
Answer 3
A good brand name should be short, sweet, and catchy. It should be easy to speak, easy to remember, and capable of attracting public attention. The new product is given a name so that it can get public attention, and the entrepreneur should be very careful while choosing a brand strategy. Therefore, a good brand name should be simple, memorable, meaningful, and suitable for the product’s image.
Question 4
4. What are the rules for advertising? Watch Video
Answer 4
successful advertising should:
•
make the product or service positively known to the section of the public most likely to buy it,
•
be a planned activity,
•
be consistent,
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keep the name of the business and the benefits of the product uppermost in the consumer’s mind.
So, advertising should not be random. It should be regular, target the right audience, and clearly communicate the value of the product or service.
Question 5
5. What is AIDA? Watch Video
Answer 5
AIDA is a commonly used selling and promotion formula. It stands for:
•
A – Attention
•
I – Interest
•
D – Desire
•
A – Action
In simple words, good selling or advertising should first attract the customer’s attention, then create interest, develop desire for the product, and finally lead the customer to take action, such as making a purchase. This fits well with the focus on promotion and customer communication.
Question 6
6. What are the different roles played by a salesperson? Watch Video
Answer 6
A salesperson plays an important role in both customer acquisition and customer retention. The potential customers need communication that introduces the brand and shows how the product or service solves their problems, while existing customers need more personal communication about new features and benefits. A salesperson also helps with promotions and referrals.
So, the main roles of a salesperson are:
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introducing the brand,
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explaining product benefits,
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convincing customers,
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helping in sales promotions,
•
maintaining customer relationships.
Question 7
7. What are Public Relations? Watch Video
Answer 7
Public Relations means the deliberate, planned, and sustained effort to establish and maintain mutual understanding between an organisation and its public. In simple words, it means building good relations with stakeholders by obtaining favourable publicity, creating a good corporate image, and handling unfavourable rumours or events properly.
Question 8
8. Who is a stakeholder? Watch Video
Answer 8
A stakeholder is any person or group in society that can influence, pressure, or affect the business and its marketing performance. Examples include:
•
clients/customers,
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staff,
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shareholders,
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strategic partners,
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media,
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government,
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local community,
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financial institutions,
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community groups.
Question 9
9. What are the main public relations tools? Watch Video
Answer 9
Here is a list of the common public relations tools:
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news creation and distribution (media releases)
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special events such as news conferences, grand openings, and product launches
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speeches and presentations
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educational programs
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annual reports, brochures, newsletters, magazines, and audio-visual presentations
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community activities and sponsorships
These tools help the business build a positive image and maintain good relations with the public.
Question 10
10. Explain the benefits of CRM? Watch Video
Answer 10
CRM (Customer Relationship Management) helps the business manage customer interaction in a better way. CRM enables a business to:
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understand the customer
•
retain customers through better customer experience
•
attract new customers
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win new clients and contracts
•
increase profitability
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decrease customer management costs
So, CRM is useful because it improves customer loyalty as well as overall business performance.
D. Long Answer Questions
Question 1
1. What is penetration pricing method and enlist its advantages and disadvantages. Watch Video
Answer 1
Penetration pricing is a pricing strategy in which a product is introduced at a low price so that it can enter the market quickly and attract a large number of customers in the beginning. It is one of the pricing strategies listed.
Advantages:
•
It helps in fast diffusion and adoption.
•
It can achieve high market share quickly.
•
It can create goodwill among early adopters.
•
It puts pressure on the firm to improve cost control and efficiency.
•
It can discourage competitors from entering.
•
It can create high stock turnover in the distribution channel.
Disadvantages:
•
It creates long-term low-price expectations.
•
It becomes difficult to raise prices later.
•
It may attract mainly bargain hunters.
•
Low profit margins may not remain sustainable for long.
Question 2
2. What are the various types of brand names from the entrepreneur’s perspective? Watch Video
Answer 2
From the entrepreneur’s perspective, brand naming is an important decision because the product is given a name to attract public attention, and the entrepreneur must choose the brand strategy carefully. The three main types of brand names are as follows:
1. Individual brand name
In this method, each product is given a separate brand name. Every offering is promoted independently.
2. Family brand name
Here, the entrepreneur uses one common family or umbrella brand name for several products. It may be the company name or another common brand name.
3. Corporate names
In this case, the entrepreneur uses the corporate name or logo along with the individual product name. Examples mentioned include names like Godrej, Tata, and Bajaj.
Question 3
3. What are the various factors which help in employee management? Watch Video
Answer 3
Human resource management is essential because the organisation must recruit, train, and develop the right people for success. Employees should also be motivated and paid the market rate so that they stay with the organisation and add value.
So, the main factors that help in employee management are:
•
Recruitment of the right people
•
Training and development
•
Motivation
•
Proper pay / market rate compensation
•
Clear company policies and benefits information
•
Conflict management support through HR
•
A positive organisational culture and attitude that helps attract and retain good employees.
These factors help the business build a stable and productive workforce. Good employee management improves efficiency, loyalty, and the overall performance of the organisation.
Question 4
4. How is vendor management done? Watch Video
Answer 4
Vendor management is done mainly through proper procurement. The procurement department must source raw materials for the business and obtain the best price for doing so. At the same time, the challenge is to get the best possible quality available in the market within the available budget.
So, vendor management is done by:
•
identifying the right suppliers,
•
comparing price and quality,
•
purchasing within budget,
•
ensuring continuous supply of needed materials,
•
maintaining coordination so that production is not disturbed.
In simple words, vendor management means choosing and handling suppliers in such a way that the enterprise gets the right materials, at the right quality, and at the right cost. This supports production and helps the business maintain competitiveness.
E. Very Long Answer Questions
Question 1
1. Explain in detail any 3 pricing strategies. Watch Video
Answer 1
Price is the value put on a product and that different pricing methods may be used depending on the product, market, and business plan.
1. Cost-plus pricing
This is the most common method. In this method, the manufacturer fixes a price that covers the cost of producing the product plus a reasonable profit. It is simple and easy to use, but it does not strongly encourage efficient use of resources.
2. Penetration pricing
In this method, the product is introduced at a low price so that it enters the market quickly and attracts many customers. Its benefits include fast market acceptance, high market share, goodwill among early buyers, and even discouraging competitors. However, it can create long-term low-price expectations and low profit margins.
3. Skimming (Creaming) pricing
In this method, the product is introduced at a high price so that the firm can recover investment quickly from early buyers. It is often used for new or innovative products. It helps recover research and development cost, but it may leave the product highly priced compared to competitors, which can reduce wider market acceptance later.
Question 2
2. Explain the important factors affecting the choice of channels of distribution by the manufacturer. Watch Video
Answer 2
The entrepreneur must choose a channel of distribution that is flexible, effective, and consistent with the firm’s marketing policies. While choosing a channel, the entrepreneur should compare cost, expected sales volume, and profits from different alternatives.
The important factors are:
A. Product-related factors
•
Unit value of product: costly products usually use shorter channels.
•
Standardised or customised product: customised products often need direct selling.
•
Perishability: perishable products need minimum or no middlemen.
•
Technical nature: technical products are better supplied directly so the user can understand them properly.
B. Market-related factors
•
Number of buyers: if buyers are many, middlemen are useful; if buyers are fewer, direct distribution is better.
•
Type of buyers: industrial buyers usually require fewer middlemen than general consumers.
The channels may be direct, one-level, two-level, or three-level depending on the product and market situation.
Question 3
3. Explain Promotional mix in detail. Watch Video
Answer 3
Promotion is the method through which the business spreads the word about the product or service to customers, stakeholders, and the broader public.
The promotion mix has four main components:
1. Advertising
A paid form of communication used to persuade customers to choose the product or service over competitors. It helps make the product known and keeps it in the consumer’s mind.
2. Personal selling
This means selling products personally through oral presentation and direct conversation with prospective customers. The salesperson mainly plays persuasive, service, and informative roles.
3. Sales promotion
These are short-term incentives or activities that encourage purchase or sale. These are often below-the-line activities and include schemes for consumers, trade, and sales force.
4. Public relations
This is the deliberate, planned, and sustained effort to maintain mutual understanding between the organisation and its public. It helps build goodwill, corporate image, and favourable publicity.
So, promotional mix is the complete set of tools used to communicate, persuade, and build relationships in the market.
Question 4
4. Explain any 6 commonly used media options. Watch Video
Answer 4
Several media are commonly used in advertising such as stationery, window display, press advertising, radio, television, direct mail, outdoor, ambient, cinema, point of sale, online, and directory listings.
Any six can be explained as follows:
1.
Press advertising: Advertisements given in newspapers and magazines to reach readers widely.
2.
Radio: Useful for reaching a large audience through audio messages, especially for repeated recall.
3.
Television: Very effective because it combines sight, sound, and movement, making the message more attractive.
4.
Cinema: Ads shown in cinema halls before or during films, useful for local or mass audience impact.
5.
Outdoor: This includes hoardings, posters, banners, and similar outdoor displays visible in public places.
6.
Online: Online options are growing rapidly and include ads on one’s own website, other websites, links, blogs, online games, social networks, and forums.
These media options help the entrepreneur choose the best way to reach the target audience depending on budget and market need.
Question 5
5. Enlist some typical sales promotion activities. Watch Video
Answer 5
sales promotion consists of short-term incentives that encourage the purchase or sale of a product or service. It further says that these activities may target final buyers, business customers, retailers and wholesalers, or the sales force.
Some typical sales promotion activities are:
Consumer promotions
•
point of purchase display material
•
in-store demonstrations, samplings, and celebrity appearances
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competitions, coupons, sweepstakes, and games
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on-pack offers, multi-packs, and bonuses
•
loyalty reward programmes
Business promotions
•
seminars and workshops
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conference presentations
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trade show displays
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telemarketing and direct mail campaigns
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newsletters
•
event sponsorship
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capability documents
Trade promotions
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reward incentives linked to purchases or sales
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reseller staff incentives
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competitions
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corporate entertainment
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bonus stock
Sales force promotions
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commissions
•
sales competitions with prizes or awards
Question 6
6. Explain the methods of negotiation. Watch Video
Answer 6
negotiation is a process where two or more parties with different needs and goals discuss an issue to find a mutually acceptable solution. It also says good negotiation helps build better relationships, gives lasting solutions, and avoids future conflicts.
The methods of negotiation are:
1.
Integrative negotiation (Win-Win): In this method, both sides work toward a solution where everyone gains something. The parties make trade-offs, consider multiple issues, and try to expand the benefit instead of fighting over one fixed share. It builds trust and good long-term relationships.
2.
Distributive negotiation (Win-Lose): In this method, one party gains more and the other gives something up. The interests of both sides appear opposed. It may settle the issue, but it usually does not create a strong long-term relationship.
3.
Inductive negotiation: This method starts with small details and moves upward step by step until settlement is reached.
4.
Deductive negotiation: This starts with an agreed strategy or principle, and then the parties work out the details within that framework.
5.
Mixed negotiation: This is the most common form and is a blend of both inductive and deductive methods.
Question 7
7. Explain the reasons for business failures. Watch Video
Answer 7
Business failure can happen for many reasons and even gives examples like Subhiksha and Boo.com. It says the broad causes include the following.
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Lack of industry experience: If the entrepreneur does not understand the industry properly, the business may be poorly organised and unable to match its environment.
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Inadequate financing: Finance is the lifeblood of business. Many firms fail because they do not plan funding properly or do not arrange suitable sources of capital in time.
•
Lack of adequate cash flow: Many small businesses fail because owners cannot estimate monthly cash inflow and outflow properly. Without enough cash to meet daily expenses, operations suffer.
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Poor business planning: Many failures happen because of lack of management skills and planning. A good business plan helps identify mission, cost structure, market, and risks.
•
Management incompetence: Even a good strategy fails if management cannot implement and monitor it properly. Management inadequacy is a major reason for failure.
The Subhiksha example also highlights additional practical causes such as rapid expansion without funds, poor customer service, weak supply chain, debt pressure, and poor inventory management.
F. HOTS (High Order Thinking Skills)
Question 1
1. Varshini started her high-end boutique in a posh locality, but she was not aware of how to make her boutique popular in the area. Suggest some measures. Watch Video
Answer 1
Varshini should focus on a proper marketing and promotion strategy. Marketing strategy is the action plan used to achieve business goals, and it is built around the 4 Ps — Product, Price, Place, and Promotion. It also explains that promotion helps spread the word about the product or service to customers and the public.
Some practical measures are:
1.
Create a strong brand identityShe should give the boutique a stylish brand name, logo, and tagline so that people can identify and remember it easily. Branding helps differentiate a product or service from competitors.
2.
Use attractive visual presentationGood window display, elegant packaging, and premium labelling will suit a high-end boutique and attract attention.
3.
Use ATL and BTL promotion togetherShe can use ATL methods like print, online, and local media ads for wider visibility, and BTL methods like sponsorships, direct marketing, public relations, and personal selling for targeted customers.
4.
Build customer relationshipsShe should maintain customer records, offer personalized service, and use CRM to retain buyers and create loyalty. CRM helps businesses understand customers, retain them, and attract new ones.
5.
Run boutique-specific promotionsFor example: preview events, festive launches, referral discounts, style consultations, and limited-edition collections.
So, to become popular, Varshini must combine branding, visibility, customer experience, and regular promotion.
G. Application-based Questions
Question 1
1. Arvind has started his Italian food based restaurant. Does he have to register his trademark? And give the reasons for the same.
Answer 1
Yes, Arvind should register his trademark.
Branding is used to identify goods or services and differentiate them from competitors. A brand may be a name, term, sign, symbol, design, or a combination of these.
Registering a trademark is useful because:
1.
It protects the restaurant’s identityIf Arvind has a unique restaurant name, logo, or symbol, trademark registration helps protect it from imitation.
2.
It helps create a distinct brand imageIn the food business, many restaurants compete in the same market. A protected name and logo help customers identify the business clearly.
3.
It supports long-term goodwillOnce customers start recognizing the restaurant, the name itself becomes valuable.
4.
It reduces misuse by othersLegal registration gives stronger protection if another business copies the same or a confusingly similar identity.
So, even if the restaurant can operate without immediate registration, it is a wise entrepreneurial decision to register the trademark early.
Question 2
2. Imagine that you have started selling FMCG goods then what kind of promotional strategies will you be using?
Answer 2
If I started selling FMCG goods, I would use a combination of ATL, BTL, and sales promotion strategies.
ATL promotions use mass media and are useful for reaching a large audience, while BTL promotions are more targeted and memorable. It also explains that TTL combines both.
My promotional strategy would include:
1. ATL promotion
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newspaper ads
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online ads
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local TV/radio spots
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billboards
These help create quick awareness among a large audience.
2. BTL promotion
•
in-store displays
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free samples
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demonstrations
•
direct marketing
•
retailer schemes
•
personal selling
These help convert awareness into actual sales.
3. Consumer sales promotion
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combo packs
•
introductory discounts
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coupons
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buy-one-get-one offers
•
loyalty rewards
4. Public relations
•
product launch events
•
local community activities
•
favourable publicity
5. CRM
•
maintain customer data
•
encourage repeat buying
•
send offers to existing customers
So, for FMCG products, I would use high visibility + frequent offers + strong retail presence.
H. Activities
Question 1
1. Create your own product with a brand name, logo and tagline.
Answer 1
Activity 1: Create My Own Product with Brand Name, Logo, and Tagline
Activity Task
Create your own product with a brand name, logo and tagline.
Student Activity Record
Product Chosen:
Herbal energy drink
Product Name:
NaturaSip
Reason for Name:
Branding helps identify a product and differentiate it from competitors. I chose the name NaturaSip because it sounds natural, fresh, and easy to remember.
Tagline:
“Refresh Naturally, Move Energetically.”
Reason for Tagline:
A tagline should be short, memorable, and should communicate the product’s value.
Logo Idea:
A green leaf inside a circular water-drop shape, with the brand name NaturaSip below it.
Meaning of Logo:
•
the leaf shows herbal / natural quality
•
the water drop shows refreshment
•
the circular shape gives a neat and modern identity
My Actions Performed
1.
I selected a product category.
2.
I thought about the target customer.
3.
I created a simple but memorable brand name.
4.
I designed a logo concept matching the product.
5.
I wrote a tagline that highlights the product benefit.
Conclusion
This activity helped me understand that branding, logo, and tagline are important for product identity and market recall.
Logo – NaturaSip
Question 2
2. Pick any two rival companies (for example, Coke and Pepsi) and find their marketing and promotional strategies.
Answer 2
Activity 2: Pick Any Two Rival Companies and Find Their Marketing and Promotional Strategies
Activity Task
Pick any two rival companies (For example, Coke and Pepsi) and find their marketing and promotional strategies.
Student Activity Record
I selected Coke and Pepsi as rival companies.
1. Company Comparison
Basis
Coke
Pepsi
Brand image
Classic, emotional, widely familiar
Youthful, energetic, trend-driven
Main appeal
Happiness, sharing, celebration
Youth, fun, pop culture
Promotion style
Strong emotional advertising
Celebrity and youth-centered promotion
Visibility
Mass media and wide retail reach
Mass media plus trend-focused campaigns
2. Marketing Strategies Observed
Coke
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Strong brand identity
•
Emotional advertisements
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Wide distribution
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Consistent packaging and recall
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Strong festive and occasion-based campaigns
Pepsi
•
Youth-focused positioning
•
Strong use of celebrities and sports/music tie-ups
•
Trend-based messaging
•
Fast-moving campaign style
•
Strong competitive brand comparison in the market
3. Promotional Strategies Observed
Both brands use:
•
ATL promotion
TV, online, cinema, print, and outdoor advertising for large audience reach.
•
BTL promotion
Sponsorships, sales promotions, direct marketing, and public relations.
•
TTL approach
They combine mass promotion with targeted campaigns.
4. My Learning
This activity showed me that even rival companies selling similar products can create different identities through:
•
branding
•
promotion style
•
customer targeting
•
consistent communication
Conclusion
I concluded that strong rivalry in the market does not depend only on the product. It also depends on how effectively a company uses branding, advertising, public relations, and promotion mix.