Students can refer to Advertising and Sales Promotion ICSE Class 10 notes and exam questions provided for ICSE students. This is an important chapter in ICSE commercial studies class 9. We have provided here questions and answers which are expected to come in the upcoming ICSE exams for class 10th. Prepared based on the latest examination pattern and guidelines issued by ICSE. You can also refer to ICSE Books in pdf available for the latest academic session.
ICSE Class 10 Commercial Studies Advertising and Sales Promotion Important Questions
Students should learn the important questions and answers given below for Chapter Definitions From Topo Maps in Commercial Studies for ICSE Class 10. These board questions are expected to come in the upcoming exams. Students of ICSE Class 10th should go through the Important questions and answers ICSE Class 10 Commercial Studies which will help them to get more marks in exams.
Board Exam Questions Advertising and Sales Promotion ICSE Class 10 Commercial Studies
Question: Define advertising.
Ans. Large -scale production of goods and services requires mass selling. Advertising is the most popular method to generate mass selling. According to the American Marketing, Association, advertising is “any paid form of non-personal presentation or promotion of ideas, good or services by an identified sponsor.”
Question: Advertising encourages unhealthy consumption. Explain.
Ans. Advertising multiplies the needs of people and encourages unhealthy consumption. By exploiting human sentiments, it presuades people to buy products which they do not need or cannot afford. Advertising promotes artificial living and extravagance and creates demand for trivial goods.
Question: What is advertising copy?
Ans. The advertisement is technically known as advertising copy. It consists of the written or spoken message.
Question: Define advertising agency.
Ans. Advertising agency is a specialised organisation which provides all advertising related services for some fee/commission. When it is owned and operated by the advertiser himself, it is called in-house agency.
Question: Define sales promotion.
Ans. Sales promotion consists of all promotional activities other than advertising, personal selling and publicity that help to increase sales through nonrepetitive and one-time communciation. According to the American Marketing Association, sales promotion includes “those marketing activities other than personal selling, advertising and publicity, that stimulate consumer purchasing and dealer effectiveness, such as point of purchase displays, shows and exhibitions, demonstrations and various non-recurring selling efforts not in the ordinary routine.”
Question: Explain the types of advertising.
Ans. 1. Product Advertising : This types of advertising focuses on a particular product or brand or service of an enterprise.
2. Institutional Advertising : This type of advertising is used to build the goodwill or image of an organisation in public.
Question: State any five provisions in the code for commercial advertising laid down by ASCI.
Ans. (i) Which describes any race, caste, colour, creed, nationality except for the specific purpose of effective dramatisation, such as combating prejudice.
(ii) Which is against any of the objectives principles, or provision of the constitution of India;
(iii) Which will tend to incite people to crime or to promote disorder, violence, or breach of law;
(iv) Which exploits the national desires or furnishes, details of crime or limitation thereof;
(v) Which would adversely affect friendly relations with foreign states;
Question: Mention any two benefits which advertising provides to society.
Ans. Advertising provides direct employment to a large number of people engaged in designing, writing and issuing advertisements. Indirectly, advertising increases employment opportunities by increasing the volume of production and distribution. Advertising improves the standard of living of the people by promoting variety and quality in consumption.
Question: State any two objectives of sales promotion.
Ans. Sales promotion activities are designed to achieve the following objectives:
(a) to introduce new products.
(b) to attract new customers and stimulate demand.
Question: “It pays to advertise.” Do you agree? Give reasons.
Ans. Money spent on advertising is not wasteful or unnecessary provided it is spent in a scientific and responsible manner. The drawbacks of advertising can be removed through concerted action on the part of advertisers, public and the Government. Businessmen should avoid wasteful and excessive advertising. Trade associations and chambers of commerce should set up better business bureaus to exercise self-regulation and control over obscene and deceptive advertising. A suitable code of conduct may be formulated to ensure that all advertisers follow ethical standards in their advertisements. Newspapers, radio and television authorities should not accept undesirable advertisements. Consumers’ associations can act as a countervailing force against manipulating and misleading advertising. Consumers should not get carried away by advertisements.
Question: What is meant by sales promotion? Explain its importance.
Ans: Sales promotion consists of all promotional activities other than advertising, personal selling and publicity that help to increase sales through nonrepetitive and one-time communication. The ultimate aim of sales promotion is increasing the sales and profits. But it is different from advertising and personal selling in approach and techniques. The importance of sales promotion is as follows :
(i) Provides Information : Sales promotion tools help to inform the
prospective buyers about the availability, features and uses of a product. Due to the diversity of market, need for spreading information has increased. Sales promotion provides support to marketing efforts.
(ii) Stimulates Demand : Sales promotion activities help to create interest in new products and increase demand. It is a persuasive tool.
(iii) Creates Product Identity : In sales promotion literature, a firm can explain how its product is better than competitive brands. It can differentiate its product and create brand preference among consumers.
(iv) Meets Competition : By offering various types of incentives, a firm can maintain its sales volume in the face of cut throat competition. The stock of existing variety/quality can be sold before introducing the new one.
(v) Satisfies Customers : A large number of customers seek greater quantity at a given price. Sales premiums and other incentives help to satisfy these customers. Sales promotion devices are the only promotional tools at the point of purchase. These devices help to remove customer dissatisfaction about a product.
Question: Mention two objectives of advertising.
Ans. (i) To introduce a new product by creating awareness and interest for it among the prospective customers.
(ii) To enter a new market or attract a new group of customers.
Question: State two methods or techniques of sales promotion.
Ans. (i) Distribution of Free samples
Question: (8) Mr. Lewis is the Marketing Manager of a leading fast-moving consumer goods company. He observes that a particular brand of shampoo manufactured by the company is not prefered in the market. As a result, the sale has declined over a period of time. It is found that dealers are unwilling to stock the shampoo.
(a) Suggest five techniques of sales promotion to induce dealers to stock the shampoo.
(b) How would you recruit and select new sales representative to persuade the dealers.
Ans. (a) In these programmes, sales promotional activities are conducted to induce dealers to keep a large stock with them. Extra cash or trade discount is offered to dealers on the basis of orders placed. Premiums, contests, advertising material, store demonstration and special displays, are the main techniques used for dealers.
(a) Dealer premiums : Certain premiums are offered to the retailers for stocking and selling the product.
(b) Dealer contests : In these contests, additional incentives are offered for attaining predetermined sales targets and for arranging attractive demonstration or display of the products. Prizes offered include car, foreign travel and expensive gifts.
(c) Advertising material : The producer provides signboards, banners, cutouts, shelf signs and other material for point of purchase (PoP) display. Such point of sale material acts as the silent salesman. It attracts customers attention and initiates buying action. Such material induces dealers to stock new products, to introduce special offers, and to increase the size of retail orders.
(b) There are three board methods of recruitment as shown in the following chart:
(i) Direct Recruitment : In this method of recruitment, the employer directly approached the principles/directors of the
educational/professional/technical institutions. The students in the final year/term of the course are selected with the help of the placement cell of the institute/university.
(ii) Indirect Recruitment : This method of recruitment involves advertisements in newspapers, journal, radio and television. Government and semi-government agencies advertise job vacancies in Employment News. All important national dailies carry job advertisements under ‘Situations Vacant’, ‘Job Vacancies’ columns. Job seekers read these advertisements and offer themselves for selection.
(iii) Third Party Recruitment : In this method, recruiters take the help of Government-run employment exchanges and private placement agencies. Unemployed and educated persons register their names in these employment exchanges. Whenever a firm asks for suitable candidates for a particular job, the employment exchange prepares and sends a list of the right candidates from its registers. Thus, in this way Mr. Lewis would recruit and select new sales representative to persuade the dealers.
Question: Advertising encourages artificial living. Do you agree with this statement? Why?
Ans. Critics argue that advertising encourages artifical living. It multiplies the needs of people and encourages unhealthy consumption. By exploting human sentiments, it persuades people to buy products which they do not need or cannot afford. Advertising promotes artificial living and extravagance and creates demand for trival goods. Modern society has become a society of chocolate, Campa Cola and lolipops instead of natural and wholesome food largely because of advertising. This allegation may be true to some extent but it is based on the assumption that satisfaction of psychological needs is not as important as that of physiological needs. Moreover, new tastes and finer emotional experience of life are necessary for the progress of civilisation. By itself, advertising cannot force people to buy things which they consider unnecessary.
Question: How would you combat the argument that advertising is untruthful, wasteful and unnecessary?
Ans. Advertising is benefical to consumers due to the following reasons:
(i) Convenience : Advertising makes shopping easy by reducing the time and effort involved in shopping. People become aware of the source and availability of different products and need not search them out. They can make better choice among different varieties.
(ii) Education of consumers : Advertising provides education and knowledge to consumer about new product and their diverse uses. Consumers get the benefit of better advice in safe and proper use of products and develop new ways of life. In this way advertising makes for better living.
(iii) Lower prices : Effective advertising reduces costs due to large scale production and elimination of wholesalers. As a result customers get goods at lower prices. Prices of advertised goods fluctuate less widely and unscrupulous traders cannot easily exploit consumer by overcharging.
(iv) Better quality : Advertising is generally done through brand names. Producers try to create special features in their products to successfully communicate product differentiation. Need to find arguments in advertising and desire to live upto the image, leads them to improve quality and product design. Consequently, consumers get better quality and variety of goods.
(v) Consumers’ surplus : Advertising brings the customer closer to the producer so that each can fully apperciate the needs of the other. Through advertising, consumers better appreciate the utility of products and derive height satisfaction from their consumption. This satisfaction and pleasure derived by them from the products is called consumers’ surplus. Thus, the argument that advertising is untruthful, wasteful and unnecessary is false.
Question: “All advertising is a social waste.” Discuss.
Ans. Modern advertising exerts such a corrupting influence on cultural and social life that it is not only wasteful but immoral. It degrades ethical and aesthetic values through nude photographs and indecent language. Many advertisements are highly objectionable and socially undesirable as they encourage social evils like drinking and smoking. To some extent advertising spoils the landscape and diverts attention of drivers. Some advertisements may really be in poor taste but majority of them help to improve social standards. The improved attitude towards hygiene is attributable in no small measure to the extensive advertising of detergents.
Question: Distinguish between advertising and sales promotion.
Question: Explain in brief various methods of sales promotion used at the level of consumers.
Ans: (i) Distribution of Free Samples : Free samples of low-priced and repeat sales items are distributed to selected people to gain consumer acceptance and to popularise the product. This is an effective device of sales promotion as consumers can test the product before buying it. It is particularly useful in the introduction of new products and frequently purchased convenience goods such as tea, coffee, detergent, ketchup, etc. However, this device is costly and can be used by big firms. It is not suitable for products which are very expensive or do not give repeated sales.
(ii) Coupons : Some firms issue coupons to prospective buyers through newspapers, direct mail, dealers, package and door-to-door salesmen. A coupon is a certificate that entitles its holder to a discount or gift on the purchase of a particular product. Coupons are used to introduce new products and to increase sales of established products or to increase sales during the slack period.
(iii) Premiums or Bonus Offers : A sales premium or bonus offer is the offer of an article free of cost or at a nominal price on the purchase of a specified product. For instance, one `Lux’ toilet soap may be given free on the purchase of an economy pack of `Surf’ detergent powder. A premium is also known as a combination offer.
(iv) Trading Stamps : Trading or bonus stamps are issued by retailers to customers who buy goods from them. The number of stamps given to a buyer depends upon the amount of purchases made by him. This technique induces customers to buy their requirements from the retailers. The purpose is to increase customer loyalty.
(v) Prize Contests : Under this device, consumers are given rewards for analytical or creative thinking about the product in the form of slogan writing, sentence completion, problem solving quiz, etc. Such contests help to create consumers’ interest in the product, provide new ideas for advertising and may reveal buying motives.
Question: Suggest any five ways society benefits from advertising.
Ans. (i) Employment generation : Advertising provides direct employment to a large number of people engaged in designing, writing and issuing advertisements. Indirectly, advertising increases employment opportunities by increasing the volume of production and distribution. By promoting exports advertising helps the country in earning valuable foreign exchange.
(ii) Higher standard of living : Advertising improves the standard of living of the people by promoting variety and quality in consumption. It educates people about new uses of products and provides information for developing better ways of life.
(iii) Sustains the press : Advertising provides an important source of revenue to newspapers, magazines, radio and television. As a result public gets news at lower rates and the circulation of newspapers and magazines increases. Press is the guardian of public opinion and by helping it to remain independent, advertising promotes liberty and democracy in the country.
(iv) Stimulates research and development : Advertising can be successful only when it is backed by new and better products. To derive maximum benefit from advertising in the competitive market, every producer tries to differentiate his products from the competitive products which needs research and development to develop new products and new uses for the existing products.
(v) Incentive to progress : Advertising is a great motivating force and creates a desire for better standard of living. People are induced to work hard and earn more to buy new products brought to their knowledge through advertising.
Question: Distinguish between Sales Promotion and Advertising .
Question: Explain the functions of advertising agency.
Ans. The main functions of an advertising agency are given below
(i) Planning – The advertising agency plans the advertising campaign. A client firm delegates the responsibility of advertising planning and execution to the agency.
(ii) Creation and Execution – Specific advertisements are created. The advertising copy is written; the layout is prepared; illustrations are drawn; photographs are finalised; and a correct mechanical form for running it in the selected media is produced.
(iii) Co-ordination – The advertising agency co-ordinates several activities. It often works with the client’s sales force and distribution network to ensure the long-run success of the advertising programme. Ideas, media, copy and decisions are co-ordinated properly to project and implement the advertising programme.
(iv) Accounting – The advertising agency maintains proper accounts in co-operation with the client. The account executives see to it that the agency keeps to the stated plan. The amount of fees received from the client and the payment of taxes, bills and other charges are accounted for by the accountant.
(v) Media Planning – The advertising agency selects the media or a set of suitable media for the client to reach the right type of audience which is an important factor in media selection. The rates, circulation, population, audience, income and other important information are collected for the purpose.
(vi) Research- Research is a key function in an advertising campaign. The decisions on creativity and media selection are taken on the findings uncovered for research.
Question: Distinguish between Advertising and Publicity.
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