UNIT : 5 CONCEPT OF MARKET

FILL IN THE BLANKS

1. In traditional markets the agriculturist disposed ofthe _______in his immediate

neighbourhood.
2. At every point where a specific commodity e is concentrated for sale a _______is
found.
3. In the modernised version of market every business activity is_______oriented.
4. Carrying on business activities through internet is called _______.
5. Conduct of industry trade and Commerce using computer network is called as_____.
6. The interaction of the firm with its customers and suppliers over the internet is called
as___.
7. Business is an_______ activity which involves sale or exchange of goods and services
at regular basis.
8. Economic activity involved in converting raw materials into finished products is
referred to as________.
9. The type of goods used by final consumers for deriving personal satisfaction is called
as_______.
10. Activities concerned with extraction of natural resources are part of ____ industry.
11. Rearing and breeding of animals and birds and growing plants is concerned
with_______ industry.
12. The industries engaged in conversion of raw materials into semi finished or finished
goods are said to be_______ industry.
13. Market intermediaries are _______that facilitate the flow of goods and
servicesbetween company and final market.
14. Cultural environment consists of values and________ of a group of people.
15. Market research_______ the danger of making wrong choices between alternative
courses of action.
16. Research instruments are tools, methods or _______employed to gather information.
17. Market survey is a _______of market research.
18. The summary of key findings of survey is called a_________.
19. The systematic survey can reduce __________of uncertainty.
20. The ______and _____________are two common types of market survey.
21. Competitors are such factors in micro environment that provide __________offerings
of goods and services.
22. Some companies hire the service of ________to conduct survey on their behalf.
23. The raw data of market survey needs to be______, tabulated and analysed to prepare a
report.
24. The basic objective of any market survey is  to collect __________on various aspects
of business.
25. "Successful business strategy is about actively shaping the game you play not just
playing game you find", is said by____________.
26. Market expansion grid is also referred as_____________.
27. Market Development Strategy involves new demographic market, new product use
and ________________for expansion.
28. Hindustan Lever adopted the strategy of _____________with an aim of capturing the
market by winning the customers of their competitors.
29. The________ licenses a foreign company to use a manufacturing process, trademark,
patent, trade secret of value for a fee or___________.
30. Joint venture is a _____________partnership between two or more firms to undertake
jointly to complete a specific venture.
31. In ___________integration, the firm becomes it's own buyer.
32. Changing one's line of production is termed as________________.
33. Another method in which the firm engages local manufacturers to produce the product
for them is_____________.
34. Nirma company used an important raw material 'Linear Alkaline Benzyme (LAB) '
which was earlier purchased is now manufactured by Nirma itself is an example of
_____________integration.
35. Stability maintain strategies, expansion-growth strategies,combination strategies,
_____________strategies is also a method for expansion.
36. Shifting from local to global markets is a/an__________ sign.
37. The channel which facilitates the smooth and timely transmission of goods from the
producer to the consumer is called _________.
38. Transport helps in removing the hindrance of ________in exchange of goods and
services.
39. Insuranceremoves thehindrance of ________by providing cover against it.
40. Physical distribution creates both theplace and _______utility.
41. Under physical distribution entrepreneur generally decides upon channel of
distribution and __________.
42. Under zero level channel produces supply the product directly to the __________.
43. Under indirect channel produces supply their product through one or more_______
44. Activities which are undertaken to boost the sale are knownas_______mix.
45. Pricerevolves around utility and _________.
46. Anart to persuade the people is known as _______.
47. Starting public contact programs to introduce the product in the market is known as
________.
48. An effort to stimulate people to buy more and more of a particular commodities by
offering various schemes is known as _________ .
Answers

1. Surplus
2. Market
3.Consumers
4. E- business
5. E-business
 6. E-commerce
7. Economic
8. Industry
9. Consumer goods
10. Primary
11. Genetic
12. Manufacturing
13. Institutions
14. Beliefs
15. Reduces
16. Techniques
17.Technique
18. Report
19. Risk
20. Census, sample
21. Similar
22. Professionals
23. Edited
24. Information
25.Gary Hamel

26. Ansoff Product Grid

27. New geographical market
28. Multi-branding
29. Licensor,royalty
30. Restricted or temporary
31. Forward
32. Diversification
33. Contract Manufacturing
34. Backward
35. Retrenchment/divestment
36. Expansion
37.Trade
38. Place
39. Risk
40.Time
41. Mode of Transportation
42. Consumer
43. Middlemen
44. Promotion
45.Value
46. Personal Selling
47. Public relations
48.Sales promotion
 TRUE OR FALSE
1. At every point where a specific commodity is concentrated for sale a market is found.
_____
2. Modern business is facing Global competition due to globalisation and increased
customer expectations. ______
3. As per emerging markets the markets are suppliers with money to spend and desire to
spend it. _______
4. Business is a wide term which includes Commerce and trade._____
5. E-Commerce is defined as the conduct of industry trade and Commerce. ________
6. E-business is offering great opportunities to developed countries._______
7. E-business provides quick solution to doubts. ________
8. E-business has helped in shortening of distribution channels.______
9. With e-business the number of people required increases thereby enhancing personnel
cost. ______
10. Business is a non economic activity done with an aim to satisfy the needs of poor.
_____
11. Industry refers to all economic activities involved in in converting raw materials into
finished goods._______
12. Goods are the final outcome of any industrial activity. ______
13. Customer satisfaction is the foundation stone of a successful business
14. Market research starts with developing the research design.
15. The market survey includes all the research activities involving extraction of
information directly from the sources.
16. Market intermediaries facilitate free flow of goods and services between company and
final market.
17. Macro factors are the forces that operate close or within the organization.
18. Survey is a customized technique.
19. The field work does not need any managerial or administrative skill.
20. The report of market survey includes summary, key findings and commendation
related to the venture.
21. The buying behavior of customer gets affected by the economic growth of the
country.
22. Market research is a tool of definite success for an Enterprise.
23. Editing, analysis and interpretation of data collected from survey needs expert
knowledge or software program.
24. Market research provides basis for finalizing business plan.
25. Is divestment strategy also referred to as retrenchment strategy.
26. A company needs growth to decrease it's market share.
27. "Ansoffs product grid" is a very useful framework for detecting new intensive growth
opportunities.
28. Integrative expansion means the enterprise increase the sales of its existing product
by enlarging the existing markets.
29. Dove, Lifebuoy, Rexona, Liril, are the brand's of Hindustan Lever.
30. Godrej-GE is a joint venture of Godrej and Boyee with GE (USA).
31. Forward integration refers to taking a step back (up) on the value-added chain
towards the raw materials.
32. Direct investment is direct ownership of foreign-based manufacturing facilities.
33. The licensee licenses a foreign company to use a manufacturing process, trademark,
patent, trade secret or other item of value for a fee or royalty.
34. Advertising is one of the modes to attract new clientele.
35. Internal expansions, mergers and acquisitions are used to achieve stability.
36. It is better to plan sharper,focused,competitive strategies to face the new competition.
37. Commerce is concerned with all those activities which are related to the transfer of
good from one place to another.
38. Buying and selling of goods between two or more nation is called internal trade.
39. Transport helps in removing the hindrance of place in exchange of goods and
services.
40. Bank removes the hindrance of finance.
41. Insurance removes the hindrance of time.
42. Warehousing removes the hindrance of time .
43. Advertising and salesmanship increases the knowledge of the customer about the
products available in the market .
44. Marketing mix includes the P’s that is product, price, public and promotion marketing
mix .
45. Distribution channel is concerned with supplying the right quantity of the right product
to the right location.
46. One Level channel includes wholesaler and retailer as middleman.
47. Two level channel includes wholesaler and retailer as middleman.
48. Buy one get one free is one of the personal selling promotion technique.
Ans:
1. True
2. True
3. False
4. False
5. False
6. False
7. True
8. True
9. False
10. False
11. True
12. True
13. True
14. False
15. True
16. True
17. False
18. True
19. False
20. True
21. True
 22. False
23. True
24. True
25. True
26. False
27. True
28. False
29. True
30. False
31. True
32. False
33. True
34. False
35. True
36. False
37. True
38. False
39. True
40. True.
41. False
42. True
43. True
44. False
45. True
46. False
47. True
48. True

MULTIPLE CHOICE QUESTIONS

1. The interaction of the firm with its customers and suppliers is called as:
a.E-commerce b. E-business
c.Commerce d. Business
2. Every point at which a specific commodity is concentrated for sale a market is found.
This definition of market goes best with which of the following:
a.Traditional market b. Modernised market
c. Emerging Markets d. Market of seventies
3. Which of the following is not a role of e business or e commerce:
a. Quick solution to doubts b.Higher personnel cost
c.Short name of distribution channel d.Saving time and cost

4. Which of the following is not a characteristic of business:

a.Regular basis b.Non economic activity
c.Profit earning d.Deals in production or procurement of goods.
 5. Which of the following is not a secondary industry:
a.Processing b.Integration
c.Insurance d.Synthetic
6. Which of the following is not a consumer good
A.Jam b.Clocks
c.Machinery d.Edible oils
7. Which industry helps in removing hindrance which arise during the production and
distribution of goods and services:
a.Synthetic industry b.Analytical industry
c.Tertiary industry d.Primary industry
8. Marketing intermediaries is a force comprised of
(a)Micro environment (b)Macro environment

(c)Research report (d) Market survey

9. Environmental Force consisting of human population in terms of size, density, age,

race and occupation

(a)Demographic (b) Economics

(c) Natural (d) Technology

10.Which of the following forces is not a component of micro environment?

(a) Customer (b) Supplier
(c)Government Policies (d) Marketing intermediaries
11. Cultural forces comprises of
(a) Political system (b) Customs and traditions
(c)Development of technology (d)Occupation of people
12. Good market information must be
(a) Lengthy (b)Reliable
(c) Incomplete (d)Irrelevant

13.Which of the following is not a tool of market survey

(a) Questionnaire (b)Field work

(c)Personal interview (d)Companies internal record

14.'Analysing information' in market survey does not include

(a)Compilation (b)Collection

(c)Tabulation (d)Summarization
15.Market expansion grid has which of the following expansion options:
(a) Intensification (b) Integration
(c ) Diversification (d) All of these
16. Expansion strategy includes:
( a.)Unconsciously pursued strategy (b)Easier and comfortable strategy
(c)Defensive and satisfactory strategy (d)None of the above
 17 . Which of the following is not an internal expansion strategy?
(a)Market Penetration (b)Market Leadership
(c)Product Development (d)Diversification strategy
18. A strategy to grow by encouraging existing customers to buy more of the firm's
current product is:
(a) Stability strategy (b)Diversification strategy
(c)Market development strategy (d)Penetration strategy
19. Contract manufacturing method:
(a) Engages local manufacturers to produce the product for them.
(b) Offers the company a chance to take more risks.
(c) Offers the company a chance to start late.
(d) Both (b) and (c ).
20. Which of the following refers to taking a step-back on the value-added chain towards the
raw-materials?
(a) Forward integration (b)Horizontal Integration
(c)Backward Integration (d)General integration
21. We can't enter the foreign market by
(a) Indirect exports (b)Direct investment
(c)Licensing (d)Stability strategies
22.It involves purchase of goods in large quantity from the producer and to resale in small
quantity to the consumers within the country itself.

(a) Wholesale Trade (b) Retail trade

(c) Import Trade (d) Export trade

23. It involves removing the hindrance of risk .Select the correct one

(a) Transportation (b) Insurance

(c) Warehousing (d) Advertising and Salesmanship

23.Identify the channel of distribution with involves Agents, Wholesalers and Retailers as

middleman .

(a) Zero level channel (b) One Level channel

(c) TwoLevel channel (d) Three level channel.

25.Identify the channel which involves no middleman between producer and consumer .

(a) One Level channel (b)Two Level channel

(c) Three Level channel (d) Zero level channel.

26.An activity which established non-personal contact with the customers regarding the
 product Idea and services is known as

(a) Publicity (b) Advertising

(c)Sales promotion (d) Personal selling

27. The enterprise may start public contact programs to introduce the product in the market

Identity the promotion mix

(a) Sales promotion (b) Public relation

(c) Personal selling (d) Publicity

28. It is the only element in the marketing mix which involves revenue. Identify the

marketing mix variable.

A) Product (b) Place

C) Price (d) Promotion

Ans:

1. A
2. A
3. B
4. B
5. C
6. C
7. C
8. A
9. A
10. C
11. B
12. B
13. D
14. B
15. D
16. D
17. B
18. D
19. A
20. C
21. D
22. A
23. B
24. D
25. D
26. B
27. B
28. C

MATCH THE COLUMNS

1.Match the following industries to the most appropriate meaning:

COLUMN A COLUMN B
i. Construction a. Product passes through various processes to become a final product.
Industry
b. It is grouping of various raw materials.
ii. Processing c. It is engaged in creation of infrastructure.
Industry
d. It is concerned with separating basic materials for getting final product.
2.Match the following tertiary industries in column A to the hindrance it removes in column B.

COLUMN A COLUMN B
i. Transport a. Provides storage facility
b. Provides information to consumers
ii. Warehousing c. Provides credit facilities
d. Facilitates movement of goods
3.Match the following industries in Column A to its correct type in Column B:

COLUMN A COLUMN B
i. Primary industry a. Genetic
b. Advertising
ii. Secondary c. Processing
d. Insurance
4.Match the concept:

COLUMN A COLUMN B
i. E -Business a. It is an economic activity done on
regular basis
b. It is conduct of industry trade and
commerce.
ii. E-Commerce c. It covers the interaction of firm with its
customers and suppliers over the
internet.
d. It is concerned with transformation of
materials.
5. Match the type of industry in column A to its most appropriate example in column B

COLUMN A COLUMN B
i. Extractive Industry a. Cement Industry
b. Computer
ii. Genetic Industry c. Poultry Farms
d. Fishing
 6. Match the form of industry in Column A to the role it plays in Column B

COLUMN A COLUMN B
i. Primary Industry a. It plays the role of creation of
infrastructure for smooth development
of economy
b. It plays the role of removing hindrances
which arise during production and
distribution
ii. Tertiary Industry c. It plays the role of assembling various
components together
d. It plays the role of extraction of natural
resources.
7. Match the concept

COLUMN A COLUMN B
i. Traditional Markets a. Market is not restricted to a particular
place but to a region
b. Market is not a geographical place but
meeting of buyers and sellers.
ii. Emerging Markets c. Markets are people with money and
desire to spend it
d. Market is found at every point where
specific commodity is concentrated for
sale.
8. Match the following factors with their relevant environment:

(i) Age of the population (a) Technological Environment

(ii) Pollution (b) Demographic Environment

(c) Natural Environment

13. Match the following terms with their features:

(a) Secondary Factor

(i) Micro Environment (b) Research Instrument

(ii) Macro Environment (c) Keeping itself aware of market

needs & trends.

14. Match the following terms with their appropriate term:

(a) Research Instrument

(i) Technique of collecting (b) Market research

information

(ii) Tools to collect information (c) Market survey

15. Match the following steps of survey with their suitable content :

(a) Statistical analysis of data

(i) Planning the Survey (b) Deciding / Selecting

appropriate method

(ii) Field Work (c) Recording of responses

accurately & honestly

16. Match the following terms with their meanings:

(a) Does not affect any type of
business

(i) Micro Environment (b) Operates close or within

organization

(ii) Macro Environment (c) Part of larger society and are

beyond control of any enterprise.

17. Match the following terms with their meanings:

(a) Provides different products

(i) Competitors (b) Provides similar offerings of

goods & services

(ii) Market Intermediaries (c) Facilitate flow of goods &

services.

14.Match the following with appropriate step in which it is involved

(a) Provides different products

(i) Statistical Competitors (b) Provides similar offerings of

goods & services

(ii) Market Intermediaries (c) Facilitate flow of goods &

services.

15. Match the different types of Integrative expansion:

(a) Diagonal Integration

(i) Vertical expansion (b) Forward Integration

(ii) Horizontal expansion (c ) Acquisition of competitors at the same

level of business.
 (d) Mergers with different level.

16. Product Development strategies for growth involves:

(a) Surf excel, surf ultra,etc.

(i) Adding new features (b) Nirma using LAB material

(ii) Different quality levies (c )Pen with a torch

(iii) Alternative technology (d) CDMA and GPRS mobiles

17.We can enter the foreign market through:

(a) Subsidiary establishment

(i) Licensing. (b) sharing profit or losses

(ii) Direct export (c )Direct ownership of foreign company.

(iii) Joint venture (d) Licensor licenses a foreign

company.

18. For market development strategy, new groups of customers can be searched in terms of:

(a) New knowledge of product use

by customers.

(i) New demographic market (b) Competitors market.

(ii) New product use (c )Standard of living

(d) Regional Differences

(iii) New Geographical market

19. Different approaches are used for penetration strategies:

(a) Multi- branding

(i) Encourage frequency of (b) Income

use.
 (ii) Attract new clientele. (c )Usage per use

(d) Advertising
(iii) Attract competitors

20. Match the different corporate strategies that a firm can adopt:

(a) Mergers and Acquisitions

(i) Stability strategies (b) Divestment strategies

(ii) Expansion strategies (c )Defensive and satisfactory

(d) Combination strategies

21. Enterprises pursue internal expansion strategy by:

(a) Market development

(i) Current market (b) Market leadership

(ii) New market. (c )Market penetration

(d) Market risks

22.Match the following on the basis of type of utility created

(A) Transportation (1) Hindrance of time

(B) Warehousing (2) Hindrance of place
(3) Hindrance of risk
23. Match the following on the basis benefits from marketing mix

(A) Product oriented (1) Advertising

(B) Price oriented (2) Credit facility
(3) Saleable quality
24. Match the following on the basis of members of channel distribution

(A) Zero level channel (1) Wholesaler and Retailer

(B)Two level channel (2) Agent, Wholesaler & retailer
(3) No middle man
25. Match the following on the basis of factors affecting marketing mix

(A) Consumer buying behavior (1) financial strength of dealer

(B) Competitors behavior (2) Restrictive trade practices
(C) Government behavior (3) Trends in demand & supply
(4) Purchasing power
 26. Match the following on the basis of elements of promotion mix.

(A) Advertising (1) Starting public contact programme

(B)Personal selling (2) Persuade customer to buy more & more
of a particular product
(c) Sales promotion (3) Establishes non personal contacts with the
customer
27. Match the following on the basis of type of internal trade

(A) Wholesale trade (1) Purchasing from wholesaler & supplying

it in smaller quantity to customers with in the
country itself.
(B) Retail trade (2) Purchasing from producer & supplying it
to retailer with in the country itself.
(3) Purchasing from producer & supplying to
customers with in the country itself.
28. Match the following on the basis of members of channel distribution

(A) One level channel (1) Wholesaler aAnd Retailer

(B)Two level channel (2) Agent, Wholesaler & retailer
(3) Retailer only

Ans:
1.i-c,ii-a
2.i-d,ii-a
3. i-a,ii-c
4.i-b,ii-c
5.i-d,ii-c
6.i-d,ii-b
7.i-d,ii-c
8.(i)-(b), (ii)-(c)
9. (i)-(c), (ii)-(a)
10.(i)-(c), (ii)-(a)
11.(i)-(b), (ii)-(c)
12.(i)-(b), (ii)-(c)
13.(i)-(b), (ii)-(c)
14.(i)-(c), (ii)-(a)
15.(i)-(b), (ii)- (c )
16.(i)-(c ), (ii)- (a ), (iii)-(d)
17.(i)-(d), (ii)- (a ), (iii)-(b)
18.(i)-(c ), (ii)- (a ), (iii)-(d)
19.(i)-(c ), (ii)- (d), (iii)-(a)
20.(i)-(c ), (ii)- (a )
21.(i)-(c ), (ii)- (a )
22.(A) – (2), (B)- (1)
23.(A) – (3) , (B)- (2)
24.A) – (3) , (B)- (1)
25.A) – (4) , (B)- (3), (C)- (2)
26.(A)– (3), (B) - (4), (C)- (2)
27.(A)– (2) , (B)- (1)
28.A-3 , B-1

PICTORIAL QUESTIONS

1.Complete the following chart with steps involved in market research:

Define the market problem to be tackled

Specify the information requirement

Develop the research Design

(A)

(B)

Summarize the findings

Prepare the Research Report

Ans: (A) Select the research instrument and collect information,

(B) Analysing the information and interpreting in terms of problem

 2. Identify the type of environment to which the followingforces belong

customers
Suppliers

Seller
Market intermediaries

Competitors

Ans:Micro Environment

3. Complete the chart with forces of Macro environment:

?
Natural
Macro
Environment

Technological
?

Political

Ans: Economical,Technical

4.Complete the following three level indirect channels

Manufacturer ______________ Customer

: Ans Retailer

5. Identify the following promotion mix tools

+ (free)
 Ans:Sales promotion

6. Name the missing industry:

_____________________

Tertiary Industry
Manufacturing Industry

___________________________

Ans: Constructive Industry

7. Name the missing Strategy

Market Development Strategy

_________________________ ______________________

New Product Use

Ans: New Demographic Market, New Geographical Market

8. Fill the missing channel to enter into the foreign market:

Channel to enter foreign market

 Contract Manufacturing
Indirect Export

_______________________ ______________________

Licensing
Joint Venture
Ans: Direct Export, Direct Investment

9.Name the type of Vertical Expansion:

Vertical Expansion

______________ Intergration ________________Intergration

Ans: Forward,Backward

10.In which strategy is the following approach Used?

__________________________

Encourage frequency of use __________________________ Attract Competitors’ customer

Ans: Penetration strategy, attract new clientele