Please refer to Enterprise Marketing Class 12 Entrepreneurship Important Questions with solutions provided below. These questions and answers have been provided for Class 12 Entrepreneurship based on the latest syllabus and examination guidelines issued by CBSE, NCERT, and KVS. Students should learn these problem solutions as it will help them to gain more marks in examinations. We have provided Important Questions for Class 12 Entrepreneurship for all chapters in your book. These Board exam questions have been designed by expert teachers of Standard 12.
Class 12 Entrepreneurship Important Questions Enterprise Marketing
Very Short Answer Type Questions
Question. What is marketing strategy?
Answer : As per David Aaker defined marketing strategy as A process what would allow an organization to concentrate its resources on the optimal opportunities with the goals of increasing sales and achieving a sustainable competitive advantage.
Question. Which is the shortest channel of distribution?
Answer : The producer to consumer (also know as Direct channel-zero level) is the shortest and simplest of all the four types of distribution channels. In this type of channel the producer can directly reach the consumer without involving any middlemen.
Question. Define branding.
Answer : Branding is defined as
a. a tool
b. a strategy
c. a process
d. an orientation, followed by the entrepreneurs to differentiate they products or services from those of the competitors where in the product / service is either of
a. a logo b. a sign
c. a name d. a symbol
Question. Give the meaning of tagline with the help of an example.
Answer : Tagline is a message that communicates the enterprise’s goals, mission, unique features and any other important message through simple yet powerful wording. It is usually a short sentence that delivers a thought and framed with a dramatic impact.
For instance, a while ago (around in 2018), Samsung launched its mobile phone with the tagline Next is Now. This gives a message that the future generation mobile technology is available now itself and what the competitors are going to achieve in the future is achieved now itself.
Question. What is labelling?
Answer : Labelling is that component that is used for displaying the product related information. Labelling resides on either of
a. the product itself
b. or the container of the product
c. or the packaging
Question. What is negotiation?
Answer : The process in which a mutually acceptable solution is agreed upon after discussion between multiple parties whose goals and needs are different is termed as negotiation.
Question. When do we conclude that a business has failed?
Answer : When a business stops its ongoing operations due to one of the following reasons, we can say that the business has turned out to be a failure.
a. The business is not able to make any profits.
b. The business is not able to generate substantial income to meet its expenses.
Question. Give the meaning of BTL.
Answer : BTL is the acronym for Below-the-line. BTL is a promotion strategy used by the companies to promote their products using specific, memorable strategies through the following channels
a. Direct marketing
b. Personal Selling
c. Public relations
d. Sales Promotions
BTL primarily promotes to a targeted group of audience. The companies using these strategies will have a complete control on these strategies.
Short Answer Type Questions
Question. What are the rules for goal setting?
Answer : Entrepreneurs typically follow the following rules for setting their goals.
1. Relevant: The business goals set should be completely relevant to the business under consideration. In other words, the goal should be profitable in someway or the other. It doesn’t necessarily generate monetary benefit but should be oriented towards benefiting the business in some way or the other.
2. Actionable: The business goals should be definable in terms of specific actions. These actions should be such that they can be executed and evaluated for their impact. Due to this fact the goals should be neither too abstract nor vague. They should be very clear.
3. Achievable Stretches: A too ambitious goal will result in disappointment and failure. On the other hand a low ambitious goal will not bring enough motivation to achieve this. Due to this fact the business goal should have an achievable stretch which will motivate us to achieve it. It should be worth considering and at the same time achievable.
Question. What is sales strategy?
Answer : Sales strategy comprises the plan to place the enterprise’s product or brand so that it has a competitive advantage. The sales department follows these strategies to focus on the target market consumers. The sales strategy helps the sales personnel to gain knowledge about their products or services and it in turn help them to target the right consumers at the right time.
Question. Differentiate between trade mark and brand mark.
Answer : Trade mark and brand mark differ in the following ways.
1. Trade mark is a brand or part of the brand which legally prevents other firms from using it.
2. It is a legal term. It provides a firm exclusive ownership of the brand name or symbol.
3. Examples include ‘Girl’ of Amul, ‘Maharaja’ of Air India
1. Brand mark is a recognizable but non-localizable part of the brand.
2. It is a logo or design or a specific colour scheme that help to immediately recognize the firm.
3. Examples include Swoosh Symbol of Nike, the striped logo of Adidas, Puma cat of Puma
Question. Why should we advertise?
Answer : Businesses spend money in advertising because advertising primarily increase their product sales and thereby generating more profits. Other reasons include
1. To popularize the product or service and hence the business in the public.
2. Develop a good image and increase goodwill.
3. Provide information to the public about their products or services and inform them.
4. Make the public know that their business is selling specific products or services.
5. Create enthusiasm in the customers to get more information about their product or services
Question. Is vendor management different from employee management? Enumerate.
Answer : Employee Management :
1. Employee management refers to the process of effectively managing the human resources or employees
2. Employee management is handled by the human resource managers.
3. Employee management is an ongoing operation in the business.
Vendor Management :
1. Vendor management refers to the process of researching, evaluating and finalizing the business with the vendors.
2. Vendor management is handled by the vendor managers.
3. Vendor management will be required only when a business process/product need to be outsourced or purchased from the external vendors.
Long Answer Type Questions
Question. What is penetration pricing method and enlist it’s advantages and disadvantages.
Answer : What is penetration pricing method and enlist it’s advantages and disadvantages.
Penetration pricing refers to the pricing strategy where in a new product is initially offered at a lower price than the market price to attract new customers. The lower price attract the customers and persuade them to adopt the new product. Companies follow this strategy to increase their market share or increase their sales volume. Proft making is not the primary objective of this strategy. Once the market share reaches to the desired levels, the companies increase the price of the product.
Advantages of penetration pricing:
1. Faster reach to the customer base and helps in increasing the market share at a faster pace. The desired market rates can be achieved before the competitors notice and take appropriate measures.
2. It will lead to good will among the customers who adopt the product or service.
This will lead to more referrals.
3. The organization is relieved from the cost control and cost reduction pressures right from the beginning. This intern lead to higher efficiency.
4. Due to lower cost, the competitors stay away from entering this segment.
5. Stock turnover is increased throughout the various distribution channels.
6. Generates significant enthusiasm and support in the channel.
Demerits of penetration pricing:
1. Once the lower price of the product is determined, it becomes difficult to increase the price at a later point of time. Few of the consumers can switch away to a competitor products as soon as the price is increased.
2. It becomes complicated regarding deciding whether to increase the prices in steps over a number of years or to increase the price to a higher value instantaneously.
However, to overcome this dilemma, organizations will release the product at a regular price but offer the product at a lower price through discount coupons.
3. This works only for short term. As the primary goal of the organization is to generate profits quickly, this penetration pricing will not be suitable for long term goals.
Question. What are the various factors which help in employee management?
Answer : The following factors enable the organizations to effectively manage their employees.
1. Identifying the objectives: The objective of employee relationship management are first identified and determined. Once these objectives are identified all the employee relationship management revolves around attracting talented employees and taking measures to retain them. The success of this effectiveness depends on how much time it takes to hire, turnover time and overall satisfaction among employees.
2. Deciding on the employee needs: The needs of employees change depending on the age, gender, marital status, role played in the organization etc. The best way to find the needs of an employee is to directly discuss with the employees by setting up a one to one conversation and ask about what their needs are. Organizations do this continuously through various means like polls, surveys etc.
3. Work-life balance: Ensuring that the employees get enough work life balance is the modern factor to be considered for effective employee relationship management.
Organizations achieve this through various means like part-time, flexi hours, off-site assignments etc.
4. Open and honest communication: Communication plays a key role to achieve effective employee management. Managers should occasionally communicate with the employees about the issues that affect their work. This communication should be as honest as possible. The effectiveness of employee relationship management depends on to what extent the organizations are being open and honest to their employees. This strategy helps in building strong employee relationship and loyalty, improve the productivity of the employees. It will also reduces the turnover and dissatisfaction.
5. Measuring and monitoring the impact: The management should be vigilant and attentive to recognize discontent. They should also monitor the results of assessment more seriously and share these results with employees.
6. Maintaining Interpersonal relationships: The effectiveness of the employee relationship management depends on how effectively the management is understanding the needs and desires of the employees and how well they strive to meet these needs and desires. Management should interact with the employees both inter-personally and also formally. They should put contiguous efforts to improve the results.