Target Exam

CUET

Subject

Business Studies

Chapter

Marketing

Question:

Read the following passage and answer the question.

Mr. X is working as a manager at 'Cheezy's Pizza's' at Pali Hills, Mumbai. He has a good command over his employees as well as customers. One of his sub-ordinates Mr. Y left his company and opened up a similar pizza chain called 'Mozzy's Pizzas' opposite to 'Cheezy's Pizzas' as a new competitor. 'Mozzy's' copied the recipes and the business model of Cheezy's' and started selling pizzas @50% discount as an introductory offer. Mr. X was losing his sales, so he called up the team meeting with the executives to discuss this issue. The team meeting concluded with certain suggestions like protecting the brand name with necessary Intellectual Property Rights. The company decided to give a new look to the logo and colors of brand name and then giving it legal protection. The operation executive suggested Mr. X to add more variety in their current menu e.g. more pizza toppings, more flavours of pastas and soups, etc. The marketing executive provided an idea to distribute free slices of pizza at malls and gaming areas for children in order to attract more customers. The marketing executive also suggested to provide free 'home delivery' to increase customer base. In order to develop goodwill, the company also decided to print the list of ingredients outside the package to inform the customers about product contents. The marketing executive also came up with a plan to provide gifts to customer who buy in bulk e.g. 2 soups, free with 01 large pizza, 01 pasta free with 02 medium pizzas.

Select the elements of promotion mix out of the following.

A. Transportation

B. Advertising

C. Inventory Control

D. Personal selling

E. Warehousing

Choose the correct answer from the options given below :

Options:

A and D only

A and B only

C and D only

B and D only

Correct Answer:

B and D only

Explanation:

The correct answer is option (4)- B and D only.

B. Advertising and D. Personal selling are both elements of the promotion mix.

  • Advertising- Advertising is perhaps the most commonly used tool of promotion. It is an impersonal form of communication, which is paid for by the marketers (sponsors) to promote some goods or service. The most common modes of advertising are ‘newspapers’, ‘magazines’, ‘television’, and ‘radio’.
  • Personal selling involves oral presentation of message in the form of conversation with one or more prospective customers for the purpose of making sales. It is a personal form of communication. Companies appoint salespersons to contact prospective buyers and create awareness about the product and develop product preferences with the aim of making sale.

A. Transportation, C. Inventory Control, and E. Warehousing are not considered elements of the promotion mix. Transportation, inventory control, and warehousing are related to physical distribution mix.

  • Transportation: Transportation involves physical movement of goods from one place to the other. As generally the users of products, particularly consumer products are wide spread and geographically separated from the place these are produced, it is necessary to move them to the place where it is needed for consumption or use.
  • Warehousing: Usually there is a time gap between the production or procurement of goods and their sale or use. It may be because of irregular demand for the products such as in the case of woollen garments or raincoats, or there may be irregular supply because of seasonal production such as in the case of agricultural products (sugarcane, rice, wheat, cotton, etc.). In order to maintain smooth flow of products in the market, there is a need for proper storage of the products. Further, there is a need for storage of adequate stock of goods to protect against unavoidable delays in delivery or to meet out contingencies in the demand.
  • Inventory control: Inventory control refers to the process of managing and overseeing the inventory of goods and materials within a business. The goal of inventory control is to ensure that a company maintains the right amount of inventory to meet customer demand without overstocking or understocking, which could lead to unnecessary costs or lost sales.