Students can refer to Marketing and Sales 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 Marketing and Sales 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 Marketing and Sales ICSE Class 10 Commercial Studies
Question: Explain the various objectives of pricing
Ans. (i) Target Rate of Return : An adequate return on investment or net sales is an important pricing objective. The idea is to secure a sufficient return on capital employed after covering costs of production and distribution. An estimate is made of the profits required to yield the expected rate to return over the long run. Prices are so set that
the total sales revenue exceeds the total costs by the estimated profit amount. In other words, this objective leads to cost plus pricing.
(ii) Price Stability : In this objective, a firm seeks to cut or eliminate cyclical price fluctuations and to void price wars. This goal is used in an industry having a few firms. In an oligopolistic situation where one firm is very big and all others are small, the big firm acts as the price leader and other firms follow it. All the firms try to avoid price wars. Price stability helps in planned and regular production in the long run However, it may create rigidity in pricing.
(iii) Market Share : Market share (sales of a firm in relation to those of competitors) is a very meaningful mark for measuring the market position or success. When the market has a potential for growth over earning a reasonable return on investment may be declining if its market share maintained.
(iv) Meet or Prevent Competition : In a market characterised by cutthroat competition, firms often take pricing decision to meet or present competition. Established firm may cut prices drastically to prevent competitors from entering a market. A company adopts below cost pricing to fight competition.
(v) Profit Maximisation : Firms pursuing this objective try to earn as much money as possible. Small and little known firms may try to chgge as much price as the customer can bear. Due to high profits, new entrepreneurs will be attracted into the industry and prices will come down in the long run.
Question: Give two differences between marketing and sales.
Ans.
Question: Define marketing.
Ans. According to William Stanton, “Marketing is a total system of interacting business activities designed to plan, price, promote and distribute want satisfying goods and services to the benefit of present and potential customers.”
Question: Marketing is essential for the success of a business organisation. Give five reasons to support your answer.
Ans. Marketing offers the following benefits.
(i) Generation of Revenue : Marketing is the only source from which business can generate revenue to meet its expenses and to earn profits. The survival and growth of a business enterprise depends on the effectiveness and efficiency of marketing.
(ii) Customer Satisfaction : Marketing helps to identify and satisfy the needs and wants of consumers. Modern marketing begins and ends with the customers.
(iii) Employment Generation : Marketing offers challenging and rewarding jobs to a large number of persons. It also generates employment in production by enlarging the scale of distribution and production.
(iv) Higher Standard of Living : Marketing is helpful in improving the standard of living of people by offering a wide variety of goods and services with freedom of choice. It has modernised the living standards of people through the supply of quality products at reasonable prices.
(v) Large Scale Production : Marketing makes mass selling possible and thereby facilitates large scale production. Economies of large scale production help to reduce the cost of production per unit.
Question: Distinguish between a product and a service.
Ans.
Question: Briefly explain any five objectives of marketing.
Ans. According to William Stanton, “Marketing is a total system of interacting business activities designed to plan, price, promote and distribute want satisfying goods and services to the benefit of present and potential customers.”
The main objectives of marketing are as follows :
(i) Creation of Demand : A business firm can sell goods and services only when there are customers willing to buy them. Therefore, the first purpose of marketing is to create demand for goods and services. For this purpose, marketing finds out the needs and preferences of customers. Then advertising, personal selling, sales promotion and
other methods are used to create demand and to persuade customers to buy.
(ii) Customer Satisfaction : Modern marketing is customer oriented. All marketing activities begin and end with the customers. The focus is on selling satisfaction rather than on selling a specific product or service.
(iii) Market Share : Every business firm seeks to have a reasonable share of the total demand. In a competitive market, aggressive selling efforts are necessary to make products and services popular. Good quality goods are offered at reasonable prices to capture a large share in the market.
(iv) Profitability and Growth : Marketing seeks to achieve long-term goals of profitability and growth by satisfying the wants of customers. In order to survive and grow, a good business must create and satisfy customers. If the customers are not satisfied, business will fail to earn and survive. Therefore, modern marketing begins and ends with the customers.
(v) Goodwill : Marketing aims at building the reputation of the enterprise over a time. The enterprise attempts to earn a name for itself and build its position in the market by selling quality products at reasonable prices, and through efficient after sales services.
Question: Give two objectives of marketing.
Ans. (i) Creation of Demand : A business firm can sell goods and services only when there are customers willing to buy them. Therefore, the first purpose of marketing is to create demand for goods and services. For this purpose, marketing finds out the needs and preferences of customers. Then advertising, personal selling, sales promotion and
other methods are used to create demand and to persuade customers to buy.
(ii) Customer Satisfaction : Modern marketing is customer oriented. Today, all marketing activities begin and end with the customers. The focus is on selling satisfaction rather than on selling a specific product or service.
Question: Distinguish clearly between marketing and sales.
Ans.
Question: What is meant by pricing ?
Ans. The term ‘price’ denotes the money value of a product or service. It is the amount of money a seller is asking for the product or service he offers for sale or the amount which buyer are to pay for it. Clark, “ The price of an article or service is its market value expressed in the terms of money.”
Question: What is a product? Explain the difference between products and services.
Ans. A product means a set of tangible and physical attributes (such as materials, colour, design, size weight, etc.) assembled in an identifiable form that a seller offers to the customers for sale, For example, a ball pen is a product consisting of plastic, metal, ink and other components.
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