RBSE Solutions for Class 12 Business Studies Chapter 8 Advertisement

Rajasthan Board RBSE Class 12 Business Studies Chapter 8 Advertisement

RBSE Class 12 Business Studies Chapter 8 Textbook Exercise

RBSE Class 12 Business Studies Chapter 8 Very Short Answer Type Questions

Question 1.
Define advertisement.
Answer:
Advertisement is a non-personal presentation and promotion of ideas, goods and services of an identified sponsor.

Question 2.
Give two objectives of advertisement.
Answer:

First objective of advertising is to create a desire for the product in the consumer’s mind to buy it.
The objective of advertising is to increase demand for the product.

Question 3.
State any two purposes of advertisement.
Answer:

To increase the sale of product.
Create new customers.

Question 4.
Mention two merits of advertisement.
Answer:

Advertising is a very economical mode of communication.
Advertising has a mass reach.

Question 5.
What is meant by ‘Classified Advertisement’?
Answer:
This advertisement is printed in the newspapers in special columns at specified space under specific heading like tenders, auctions, etc.

Question 6.
What do you mean by Sandwichman Advertisement?
Answer:
In this, person-sized wearable bill board or advertisement consisting of two printed boards are strung together, so that they hang over the shoulders, thereby sandwiching the wearer.

Question 7.
Give any two limitations of advertisement.
Answer:

It is less forceful.
Not suitable for seller market.

Question 8.
State any two points of importance of advertisement for producers.
Answer:

Means for facing competition.
Helps in introducing new products in the market.

Question 9.
Give two benefits of Advertisement to the Society.
Answer:

Advertisement increases employment and job opportunities.
Advertisement improves standard of living of the people.

Question 10.
List the benefits of advertisement for middlemen by giving any two points.
Answer:

Advertisement lowers the risk.
Advertisement increase in profits as it boosts up the sales.

Question 11.
What are the benefits of advertisement for customers ? Give any two points.
Answer:

Advertisement helps in educating the consumers about a product.
Advertisement helps in improving the standard of living.

Question 12.
Explain any two techniques of advertisement.
Answer:

Emotional appeal :
This technique of advertising is done with the help of two factors-needs of consumer and fear factor. Most common appeals are-need for something new, need to become attractive, etc.
Facts and statistics :
Here, advertisers use numbers, proofs and real examples to show how good their product works.

RBSE Class 12 Business Studies Chapter 8 Short Answer Type Questions :

Question 1.
What do you understand by Advertisement ? Explain briefly any five objectives of advertisement.
Answer:
Advertisement is a non-personal presentation and promotion of ideas, goods and services of an identified sponsor. It is regarded as a prominent tool of marketing.

Objectives of Advertisement

The main objective of advertisement is to increase the sales.
It plays an important role in creating new customers.
To overcome and face competition and to sustain demand.
To enhance goodwill of the enterprise by promising better-quality products and services.
To reach people inaccessible to salesmen, advertising is done.

Question 2.
Explain any five advertising medias.
Answer:

Outdoor advertising :
Outdoor advertising is done to attract the attention of the people at busy roads and the markets. It includes posters & hoardings, sign boards, etc.
Press advertising or print media :
Press advertising is advertising done through newspapers, magazines, etc. It is commonly used by modern businessmen.
Magazines and Journals :
Advertisements published in weekly, monthly, annual magazines are known as Magazine Advertisements.
Audio and Visual advertising :
The main forms of this type of advertising are radio advertising, television advertising, etc.
Purchase point advertising :
Diaries, key chains, pen holders, etc. are offered as presents to potential customers to advertise certain products.

Question 3.
Write a short note on newspaper advertising.
Answer:
Newspaper advertising :
Newspapers reach almost every place and are read by all kinds of people. Newspapers can be used as a good medium of advertisement with great advantage.
They are of two types :

Classified advertisement :
These advertisements are printed in the newspaper in special columns of specified space under specific heading like the tenders, etc. Limited words are used for such advertisement.
Non-classified advertisement :
In such kind of advertisement, there is no specific space reserved. It can be printed on any page of newspaper, according to the advertiser’s wishes.

Question 4.
Explain briefly the merits of advertisement as a tool of promotion.
Answer:

Economy :
Advertising is very economical mode of communication if large number of people are to be targeted.
Mass reach :
Advertising is a medium through which a large number of people can be reached over a vast-geographical area.
Enhancing customer satisfaction and confidence :
Advertising creates confidence among prospective buyers as they feel more comfortable and assured about the product’s quality and hence feel more satisfied to buy it.
Information :
Advertisement is a means of communication which provides information to consumers about the available goods which can satisfy their needs.
Convenience :
Advertising creates good image of the brand in the mind of people which is very important for increasing sale§. Since the consumer has the necessary information about the brand of the product, he does not waste his time is choosing and comparing the product with similar products of other competitors.

Question 5.
Write a note on outdoor advertisement.
Answer:
Outdoor Advertising :
Outdoor advertising has gained wide popularity these days. Its purpose is to attract the attention of the people at busy roads and in the markets. It includes use of poster displays, bill board displays, electric displays, etc.

Different types of outdoor advertising are :

Wall painting for mural advertising :
Under it, the advertiser sets the required message and slogans about the products. Mural advertisements are painted in bold letters on walls of shops, houses and bridges, etc.
Posters and hoardings :
posters are pasted on walls of building, bridges and other public places to convey the message to the people passing through nearby places, such as main crossings, etc.
Electrical Sign boards displays :
These involve the use of lights or neon tubes to attract the attention of people, specially during night.
Signage advertising :
Includes ‘Sky’ writing, where aeroplanes use special chemicals to form words :
1. Plane banners where large signs are pulled behind an aeroplane.
2. Mobile bill boards.
3. Plastic bags used to cover the newspapers.
4. Advertisement attached to grocery carts.

Question 6.
Mention any four limitations of Advertisement.
Answer:

Less Forceful :
Advertisement is a non-personal form of communication. It is less effective for personal selling.
Lack of Feedback :
The evaluation of the effectiveness of advertisement message is very difficult as there is no immediate and accurate feedback mechanism of the message that is delivered.
Inflexibility:
Advertising is less flexible.
Inferior goods :
If the commodities are of inferior and cheaper quality, they can’t sustain for long in the market through advertising.

Question 7.
State any four points stating the need and functions of Advertisement.
Answer:

Information about new products :
The main function of advertisement it to provide information about the new products entering the market.
Creates new customers:
The main concern of advertisement for any organisation is to create new customers and to retain the older ones.
To educate / inform the consumers :
To educate the customer about the product, its benefits and other useful information, advertisement is needed.
Price change information :
To make the customer aware about the price change of the product is also a function of advertisement.

Question 8.
Explain briefly the benefits offered by advertisement to manufacturers.
Answer:

Facing competition :
Advertisement is an important means for facing competition. By creating brand loyalty, telling unique and new uses of product, sales promotion, etc.
Support to Salesman :
Advertisement simplifies the work of salesmen as the customers are already familiar with the product and its uses.
Retailers Interest :
The increased goodwill and image of the firms giving effective and continuous advertisement of product, provides a sense of security and honour to the middlemen and salesmen because of which they are always ready to provide their services to such enterprises.
Higher sales volume :
Advertisement helps to increase demand, expand markets and enhance sales of existing products.

Question 9.
Explain briefly the benefits offered by advertisement to consumers.
Answer:

Education to the consumers :
Advertisement provides education and knowledge to consumers about new products and their diverse uses.
Saving time :
A consumer can know easily about the availability, features, price, any scheme on product, etc. sitting back at home.
Convenience :
Advertisement makes purchasing easier by reducing the time and effort evolved in shopping.
Standard of living :
Advertisement improves the standard of living of the people by providing variety and quality in consumption.

Question 10.
What are the benefits of advertisement to the society at large ?
Answer:

Advertisement reflects / provides glimpse of the lifestyle of a nation, thus promoting the art and culture of the nation.
Advertisement increases employment and job opportunities.
Advertisement improves the standard of living of the people by providing better quality goods at reasonable price, giving maximum satisfaction to consumers.
Advertisement stimulates research and development to develop new products and new
uses.

Question 11.
Explain how middlemen tend to benefit by advertisement.
Answer:

Contact with producers :
The producers / marketeers advertise their products through different channels, so that middlemen can contact them for taking the product’s distribution agency. Similarly, wholesaler advertises the products, so that the retailers if interested, can contact them.
Helps in sales :
Advertisement mentions the name of dealer / agent, wholesaler, etc. of the product, so the customers can directly approach these middlemen.
Lowers the risk :
Due to constant advertising, describing the unique features and uses of products, repeated buying is encouraged. Adventure goods enjoy a ready market and little sales effort is required for selling them. Because of high sales turnover of advertised goods, dealer’s risk of unsold stock is reduced.

Question 12.
Discuss any five techniques of advertisement.
Answer:

Weasel words :
In this technique, the advertisers don’t say that they are the best, but they don’t deny this also.
Unfinished Advertisement :
The advertisers here just play with words by saying that their product works better, but don’t tell how much more than the competitor.
Facts and Statistics :
Here, advertisers use numbers, proofs and real examples to show how their product works.
Promotional advertising :
This technique involves giving away samples of the product free to the consumers. Such samples are mostly offered in trade fairs, etc.

RBSE Class 12 Business Studies Chapter 8 Long Answer Type Questions

Question 1.
Explain the meaning of advertisement. Elucidate the role of advertisement in growth and expansion of business.
Answer:
Meaning of Advertisement :
Advertisement is a non-personal presentation and promotion of ideas, goods and services of an identified sponsor. It is regarded as a prominent tool of marketing.

Definition of Advertisement :
According to American Marketing Association, “Advertising means any paid non-personal presentation and promotion of ideas, goods and services by an identified sponsor.”

According to Boyard O’ Wheeler :
“Advertising is non-personal presentation of ideas, goods or services for the purpose of inducing people.”

Role of Advertisement in Growth and Expansion of Business

Helpful in facing competition :
Advertisement helps in fighting the cut-throat competition prevailing in the market. Because of the advertisement only, a product exists and prevails in the market.
Information about new products :
Advertising is very helpful in launching a new product and making it popular in the market. If the marketeer wants to introduce his new product for a geographically-wide segment, it becomes essential for him to use aggressive and continuous advertising campaign.
To create demand :
Advertisement is aimed at stimulating demand by making people aware about new products and new uses of an existing product. It attracts attention, creates interest and by influencing the buyer’s behaviour, it stimulates demand.
To discover prospective buyers :
In today’s large-scale production of a variety of goods, this is through advertisement only that new customers can be persuaded to give boost to the sales of a company’s products.
To educate the consumer :
In the market, so many products are being advertised, which make similar claims. This confuses the buyer as to which one is true and which one should be relied upon. All such information is communicated by advertising only, on the basis of which, a customer takes decision to buy and how much quantity to buy to avail maximum benefit.
To support salesmen :
Advertisement creates awareness about the merits of advertised products. By describing the unique features and uses of products, repeated buying is encouraged. Advertised goods enjoy a ready market and little sales effort is required to sell them. Advertising makes the process of selling easier.

Question 2.
Explain in detail the different advertisement media.
Answer:
Advertising media :
It is a means through which a trader / manufacturer can spread his message to public. Following advertising media can be used by the manufacturers:
I. Outdoor advertising :
Outdoor advertising has gained wide popularity these days. Its purpose is to attract the attention of the people at busy roads and the markets. It includes use of poster displays, bill-board displays, electric displays, etc.

II. Press advertising or print media :
Press advertising is the advertising done through newspapers, magazines, etc. It is commonly used by modern businessmen. Some of these are :
(а) Newspaper advertising :
Newspapers reach almost every place and are read by all kinds of people. Therefore, newspaper can be used as a strong medium of advertisement with great advantage. It is of two types:

Classified advertisement :
This type of advertisement is printed in the newspapers in special columns at specified space under specific heading, like tenders, etc.
Non-classified advertisement :
For such kinds of advertisement, no specific space is reserved. It can be printed on any page of newspaper, according to the advertiser’s wishes.

III. Magazines and Journals :
Periodicals are a powerful and popular media of advertisement. Several type of magazines, economic, religious political, entertainment, etc. are in circulation. Advertisement can be published in relevant magazines. Technical and trade journals are useful for advertising books and products meant for a particular profession.

IV. Audio and Visual advertising :
Audio (voice) and visual advertising has gained popularity. The main forms of this type of advertising are radio advertising, television advertising, etc.

V. Purchase point advertising :
Point of purchase or point of sale displays, often referred as POP and POS displays, are put in retail stores to attract consumer interest and promote the sales of product. These displays are usually created and prepared by product manufacturers for distribution to wholesalers or retailers who sell the merchandise.

VI. Speciality advertising :
Diaries, key chains, purses, pen holder, desk trays, paper weights, carry bags and other novelties are offered as presents to potential customers to advertise certain products. The name, address of the advertiser and brand name of the products is printed or inscribed on these novelties.

VII. Direct mail advertising :
Under this medium, a mailing list of potential customers is prepared. The message is sent directly to individual customers through mail in the form of circular letters, booklets, leaflets, folders, etc, so that they know about the availability of new or improved products and can be persuaded to buy them.

Question 3.
Explain the concept of advertisement and discuss various techniques of advertisement commonly used by manufacturers.
Answer:
Advertising is a subtle strategy of communicating information for promoting, alluring and convincing people to act accordingly and expectedly to achieve satisfying results in form of generation of sale of ideas, goods, services and for events.

Definitions of Advertising :
According to Albert Ferry :
“Advertising is the preparation of visual or oral messages and their dissemination through print media for the purpose of making people aware of and favourably inclined towards a products, brand, service, institution, idea or point of view”.

According to Boyard O’ Wheeler :
“Advertising is a non-personal presentation of ideas, goods or services for the purpose of inducing people.”

Techniques of Advertisement :

Emotional appeal :
This technique of advertising is done with the help of two factors : need of consumer and fear factor. Most common appeals under these are : need for something new, need to become attractive, etc., need for getting acceptance, need for not being ignored, need for replacing of old things, need for security.
Promotional advertising :
This technique involves giving away samples of the product free to the consumer. These items are offered in trade fairs, promotional events, and ad campaigns, in order to gain attention of the customers.
Bandwagon advertising :
This type of technique involves convincing the customers to join the group of people who have bought this product and be on the winning side.
Facts and Statistics :
Here, advertisers use numbers, proofs and real examples to show how well their product works.
Unfinished advertisement :
The advertisers just play with words by saying that their product works better, but don’t answer how much more than the competitor. For example : Ad of Lays says -“No one can eat just one.”
Weasel words :
In this technique, the advertisers don’t say that they are the best, but they don’t deny this also.
For example, : The ad of Sunsilk hairfall solution says that it reduces hairfall, but the advertisement doesn’t say that it stops hairfall.
Endorsements :
The advertisers use celebrities to advertise their product. The celebrities or stars endorse the product by telling their own experiences associated with the product.
Complimenting the customers :
Here, the advertisers use punch lines which compliment the consumers who buy their products. For example : Gamier says – “Take care.”

Question 4.
Write an essay on the importance of Advertising.
Answer:
Importance of Advertising :
The modem age is the age of advertisement. In every sphere of life, influence and reflection of advertising can be seen. Therefore, it is not a social waste, but an investment. It offers several benefits:
(1) Benefits to Businessmen/manufacturers.
(2) Benefits to consumers.
(3) Benefits to the middlemen.
(4) Benefits to the society.

Let’s, explain all of these one by one :
(1) Benefits to the Businessmen / Manufacturers :
Advertisement is beneficial to the manufacturers and traders in the following ways:

Facing competition :
Advertisement is an important means for facing competition. By creating brand loyalty, telling novel and new uses of product, sales promotion schemes, etc., it helps to maintain sales and market share. It enhances personal selling and sales promotion.
Support to salesmen :
Advertisement simplifies the work of salesmen as the customers are already familiar with the product and its uses.
Higher profits :
Rapid sales turnover, reduction in cost of production, etc. result in higher profits for the advertiser.
Enhances goodwill :
Advertisement helps in creating a good image of the firm and reputation for its product. A favourable image increases the capacity of the firm to survive competition and economic depression.

(2) Benefits to the Consumers :
It is beneficial to the consumers for the following reasons :

Education to consumers :
Advertisement provides education and knowledge to consumers about new products and their diverse uses.
Saves time :
A consumer can know easily about the availability, feature, price, any scheme on product, etc. sitting back at home.
Improves Standard of living :
Advertisement improves standard of living of the people by providing variety and quality in consumption.
Better quality:
Advertisement creates confidence amongst buyers about the quality of advertised products. They get good quality goods and chances of cheating are reduced.

(3) Benefits to the Middlemen :
Advertisements are beneficial to the middlemen in the following ways:

Help In sales :
Advertisement gives detailed information about price, quality, usage, instruction, etc. about a product, so a large sales-force is not required to make efforts to increase the sales.
Lowers the risk :
Due to constant advertising, describing the unique features and use of product, repeated buying is encouraged. Because of high sales turnover, dealer’s risk of unsold stock is reduced.
Increase in profits :
The middlemen automatically get the gains of goods advertised by the manufacturers. They don’t have to spend money in advertising. This results into savings in costs and increase in profits.
End of unhealthy competition :
The manufacturers offer incentives and commissions on the basis of quantity of goods bought by middlemen. These incentives encourage them to make more sales, and as a result, their income rises.

(4) Benefits to the Society :

Advertisement reflects and provides glimpse of the lifestyle of a nation, thus promoting art and culture of the nation.
Advertisement increases employment & job opportunities.
Advertisement improves the standard of living of the people by providing better quality goods at reasonable price, giving maximum satisfaction to consumers.
Advertisement stimulates research & development to develop new products and its new uses.

Question 5.
Explain in detail the benefits offered by advertisement and the limitations of advertisement.
Answer:
Merits of Advertisement

Economy :
Advertising is a very economical mode of communication, if large number of people are to be reached. Because of its wide reach, the overall cost of advertising gets distributed over numerous communication links established.
Mass reach :
Advertising is a medium through which a large number of people can be reached over a vast geographical area.
Enhancing customer satisfaction and confidence :
Advertising creates confidence among prospective buyers as they feel more comfortable and assured about the product’s quality and hence feel more satisfied.
Expressiveness :
With the development in art, computer designing and graphics, advertising has emerged as one of the most forceful mediums of communication. With the special effects that can be created, even simple products and messages can look very attractive.
Information :
Advertising is a means of communication which provides information to consumer about available goods which can satisfy their needs.

Demerits of Advertisement

Less forceful :
Advertising is a non-personal form of communication. It is less forceful than personal selling as there is no compulsion on the prospective buyer to pay attention.
Lack of feedback :
The evaluation of the effectiveness of advertisement message is very difficult as there is no immediate and accurate feedback mechanism of the message that is delivered.
Inflexibility :
Advertising is less flexible as the message is standardised and is not tailor – made to the requirement of different customer groups.
Inferior goods :
If the commodities are of inferior and cheaper quality, they can’t sustain in market through advertising. Such goods of low / inferior quality can be sold only for once in the market. Through false advertising, such goods can’t be sold for long in the market.
Not suitable for goods having inelastic demand :
Those goods whose demand does not change along with the change in their price are said to have inelastic demand. So, goods whose demand is perfectly inelastic, their demand / supply can’t be boosted by advertising.

RBSE Class 12 Business Studies Chapter 8 Additional Questions

RBSE Class 12 Business Studies Chapter 8 Objective Type Questions

Question 1.
From where has the word ‘advertisement’ originated?
(a) Latin word “Adverto”
(b) French word “Adverto”
(c) Both (a) & (b)
(d) None of these
Answer:
(a) Latin word “Adverto”.

Question 2.
“Adverto” means “to turn attention towards something”.
(a) True
(b) False
(c) All of these
(d) None of these
Answer:
(a) True.

Question 3.
Which is regarded as a prominent tool of marketing?
(a) Motivation
(b) Sales promotion
(c) Advertisement
(d) None of these
Answer:
(c) Advertisement.

Question 4.
Advertisement is a ______ form of communication :
(a) Personal
(b) Non-personal
(c) Both (a) & (b)
(d) All of these
Answer:
(b) Non-personal.

Question 5.
“Advertising is salesmenship in print.” Who said this?
(a) R. V. Zacher
(b) Boyard O’ Wheeler
(c) John. E. Kennedy
(d) None of these
Answer:
(c) John. E. Kennedy.

Question 6.
Advertisement is done by sponsor :
(a) Identified
(b) Unidentified
(c) Both (a) & (b)
(d) All of these
Answer:
(a) Identified.

Question 7.
Advertisement can be of these types :
(a) Oral
(b) Written
(c) Visual
(d) All of these.
Answer:
(d) All of these.

Question 8.
Advertisement is a form of communication :
(a) Paid
(b) Unpaid
(c) Both (a) & (b)
(d) None of these
Answer:
(a) Paid.

Question 9.
Objectives of advertisement are :
(a) To increase sales
(b) Create new customers
(c) Entry in new markets
(d) All of these.
Answer:
(d) All of these.

Question 10.
Types of outdoor advertising are :
(a) Wall painting
(b) Posters and hoarding
(c) Both (a) & (b)
(d) None of these
Answer:
(c) Both (a) & (b).

Question 11.
Newspaper advertising are of ______ types:
(a) Two
(b) Three
(c) Four
(d) Five
Answer:
(a) Two.

Question 12.
Demerits of outdoor advertising are :
(a) Low retention value
(b) Temporary appeal
(c) Both (a) & (b)
(d) None of these
Answer:
(c) Both (a) & (b).

Question 13.
For this type of advertisement a special column at specified space under specific heading is given. It is known as :
(a) Classified advertisement
(b) Non-classified advertisement
(c) Both (a) & (b)
(d) None of these
Answer:
(a) Classified advertisement.

Question 14
Techniques of advertisement used by markets are :
(a) Emotional appeal
(b) Promotional advertising
(c) Bandwagon advertising
(d) All of these
Answer:
(d) All of these.

RBSE Class 12 Business Studies Chapter 8 Very Short Answer Types Questions

Question 1.
From where has the word advertisement originated and what does it mean?
Answer:
Latin word ‘Adverto’, which means “to turn attention towards something.”

Question 2.
What do you mean by advertisement?
Answer:
Advertisement is a non-personal presentation and promotion of ideas, goods services of an identified sponsor.

Question 3.
Which is regarded as prominent tool of marketing?
Answer:
Advertisement.

Question 4.
“Advertisement is non-personal presentation of ideas, goods or services for the purpose of inducing people.” Who said this?
Answer:
Boyard O’ Wheeler.

Question 5.
State any two features of advertisement:
Answer:

Advertisement is done by an identified sponsor.
Advertisement can be oral, written or visual.

Question 6.
What is the prime objective of advertisement?
Answer:
To increase sales of the company.

Question 7.
Mention any two objectives of advertisement.
Answer:

To Increase sales.
To create new customers.

Question 8.
What do you mean by outdoor advertising?
Answer:
Outdoor advertising refers to advertisement at busy roads and in market places to attract the attention of the people.

Question 9.
Enlist two types of outdoor advertising.
Answer:

Posters and hoardings.
Vehicular displays.

Question 10.
Write two merits of outdoor advertising.
Answer:

It is highly flexible.
It attracts attention quickly.

Question 11.
Write two demerits of outdoor advertising.
Answer:

It has low retention value.
It can cause pollution.

Question 12.
What do you mean by press advertising or print media?
Answer:
Press advertising is the advertising through newspapers, magazines, etc. It is commonly used by businessmen.

Question 13.
What are the two types of newspaper advertising?
Answer:

Classified advertising.
Non-classified advertising.

Question 14.
Mention two types of classified advertisements published in newspaper.
Answer:

Auctions.
Tenders.

Question 15.
Write two advantages of non-classified advertisement.
Answer:

Wide circulation is economical.
Flexibility.

Question 16.
Write two dis – adventages of non-classified advertisement.
Answer:

Casual attention.
Not suitable for illiterates.

Question 17.
Write the full forms of POS and POP.
Answer:

POS — Point of sale.
POB — Point of purchase.

Question 18.
Write two types of Audio and Visual advertising.
Answer:

Radio advertising.
Television advertising.

Question 19.
Write two merits of advertisement.
Answer:

Advertisement is a very economical mode, if large number of people are to be reached.
Mass reach.

Question 20.
Why is advertising said to be less forceful?
Answer:
Advertising is a non-personal form of communication, so, there is no compulsion on the prospective buyer to pay attention to the message.

Question 21.
Why is advertising not suitable for seller market?
Answer:
Advertising is not suitable for seller market because there exists automatic demand for such goods in the market. Therefore, sellers are not required to make extra efforts to sell such goods.

Question 22.
What do you mean by Inelastic demand?
Answer:
The goods whose demand does not change along with the change in their price are said to have inelastic demand.

Question 23.
Write any two needs for advertisement.
Answer:

It provide information about new products to the customers.
It helps in creating demand for products.

Question 24.
How does advertisement help businessmen to fight the competition?
Answer:
By creating brand loyalty, telling novel and new uses of product, sales promotion, etc. advertisement helps to maintain sales and market share. It supplements personal selling and performs sales promotion.

Question 25.
How can businessmen earn higher profits through advertising?
Answer:
Rapid sales turnover, reduction in the cost of production, etc. results in higher profits for the businessmen.

Question 26.
What is meant by ‘Weasel Words’?
Answer:
In this technique, the advertisers don’t say that they are the best from the rest, but they don’t deny it also.

Question 27.
Give any one example of ‘Weasel Word’ Technique.
Answer:
Example : The ad of Sunsilk hairfall solution says that it reduces hairfall, but the advertisement doesn’t say that it stops hairfall.

Question 28.
What is meant by Bandwagon Advertising?
Answer:
This type of technique involves convincing the customers to join the group of those people who have bought this product and be on the winning side.

Question 29.
What is Endorsement Technique?
Answer:
In this, advertisers use celebrities to advertise their product. The celebrities or stars endorse the product by telling their own experiences associated with the product.

Question 30.
What is Promotional Technique of Advertising?
Answer:
It involves giving away samples of the product free to the consumers in order to gain attention of the customers.

Question 31.
What is complimenting the customers technique?
Answer:
In this, advertisers use punch lines which compliment those consumers who buy their products : For example the ad of: Gamier says ‘Take care’.

RBSE Class 12 Business Studies Chapter 8 Short Answer Types Questions (SA – I)

Question 1.
Give the major definitions of advertisement.
Answer:
According to American Marketing Association :
“Advertising means any paid, non-personal presentation and promotion of ideas, goods or services by an identified sponsor.”

According to R. V. Zacher :
“Advertisement is a means of communicating information pertaining to products, services or ideas by other than direct personal contact and on an openly paid basis, with an intent to sell or otherwise obtain favourable consideration.

Question 2.
State four features of Advertisement.
Answer:

It is a paid form of communication, as the advertiser has to pay for the space or time hired by him for advertising.
It is done by an identified sponsor.
It can be oral, written or visual.
It is done through media such as press, radio, TV, etc.

Question 3.
What do you understand by advertisement media?
Answer:
Advertisement media refers to that means through which a trader / manufacturer can spread his message to public. Example of media of advertising are : audio-visual advertising, print media, etc.

Question 4.
What do you understand by electrical sign board displays?
Answer:
Electrical signboard displays involve the use of lights or neon tubes to attract the attention of people, particularly during the night. Generally, a short message is illuminated in tubes of different colours so that it appears attractive. Electrical displays are fixed at heavy traffic centers.

Question 5.
Explain newspaper advertising.
Answer:
Newspapers reach almost every place and are read by all kinds of people. Therefore, newspapers can be used as a medium of advertisement with great advantage. While selecting a newspaper for this purpose, an advertiser has to take into consideration the strength of circulation, the class of readers its serves, the geographical cover, etc. Newspaper advertisement are of two types :

Classified advertisement
Non-classified advertisement.

Question 6.
Explain the types of Newspaper Advertising.
Answer:

Classified advertisement :
This type of advertisement is printed in newspaper in special columns at specified space under specific heading like tenders, auctions, etc. Limited words are used for such advertisement.
Non-classified advertisement :
For such kinds of advertisements, there is no specific space reserved. It can be printed on any page of newspaper, according to the advertiser’s wishes. Attractive colours and pictures, letters are used and information is given regarding the availability and features of the product advertised.

Question 7.
Explain purchase point advertising.
Answer:
Point of purchase or point of sale displays, often referred as POP and POS display, are put in retail stores to attract consumer’s interest and to promote sales of product. These displays are usually created and prepared by product manufacturer for distribution to wholesaler or retailer who sells the merchandise.

Question 8.
What do you understand by speciality advertising.
Answer:
Diaries, key chains, purses, penholders, desk trays, paper weight, carry bags and other novelties are offered as presents to potential customers to advertise certain products. The name, address of the advertiser and brand name of the product is printed or inscribed on these novelties. The article remains with the customers for a long time and constantly reminds them of the product.

Question 9.
How does advertisement educate a consumer?
Answer:
In the market, so many products are being advertised which make similar claims. This confuses the buyers as to which one is true and which one should be relied upon. Whereas other incentives, like premium, discount gift, etc. are offered by the manufacturers on their purchase of various products. All such information is communicated by advertising only, on the basis of which, a customer takes decision to buy and how much quantity to buy to avail maximum benefit.

Question 10.
What do you understand by patriotic advertisement?
Answer:
These type of advertisements show how one can support their country while one uses some product or service. For example, some products together formed a union and are chained in their advertisement that if you buy any one of these products, you are going to help a child to go to school.
Example : ITC (Classmate brand registers), etc.

Question 11.
What do you understand by Surrogate Advertising?
Answer:
It is generally used by the companies which cannot advertise their product directly. Such advertisements use indirect advertisement method to advertise their products, so that the customers know about the actual product. For example: a liquor ad never shows anyone drinking actual liquor, they show some one drinking soft drink or soda.

Question 12.
What is Bribe Technique?
Answer:
This technique is used to bribe the customers with something extra if they buy the product, using lines like – “buy one shirt and get one free.” Or “be the member of the club for two years and get 20% off on all services.”

RBSE Class 12 Business Studies Chapter 8 Short Answer Types Questions (SA – II)

Question 1.
Explain the term ‘Advertisement’. State its features.
Answer:
Advertisement is a non-personal presentation and promotion of ideas, goods or services of an identified sponsor.

According to American Marketing Association :
“Advertising means any paid non-personal presentation and promotion of ideas, goods or services by an identified sponsor.”

According to R. V. Zacher :
“Advertising is a means of communicating information pentaining to products, services or ideas by other than direct personal contact and on an openly paid basis, with an intent to sell or otherwise obtain favourable consideration.”

Features of Advertisement

It is a paid form of communication, as the advertisor has to pay for the space or time hired by him for advertising.
It is done by an identified sponsor.
It can be in oral, written or visual form.
It is different from publicity.

Question 2.
What do you understand by Vehicular Displays?
Answer:
Vehicular displays are those advertisements which are done on inner and outer side of public vehicles. It has become a fashion these days to use modes of public transport to attract the attention of people by advertising the space outside and inside the buses, railway carriages and other vans that may be hired by the businessmen to spread their message. Vehicles gives mobility to the message.

Question 3.
‘Modern age is the age of advertisement’. Comment.
Answer:
Modern age in the age of advertisement. Yes, it is true because in every sphere of life, influence and reflection of advertising can be seen. It is not only important for businessmen to improve sales and profits, but it also informs, guides and educates the consumers. People are inspired to fight for their rights, needs and against social evils. Advertising adds value to the social cause by giving boost to production and generating employment, and improving the standard of living.

Question 4.
What is the role of advertisement in today’s world?
Answer:
In today’s scientific age, every day, several new products are produced on discovered. Manufacturers want to inform the public about their products, which requires a good communication system. This need is fulfilled by advertisement, as a promotion tool. A manufacturer always wants to increase the sale of his product by creating and increasing demand. By advertising the information about his products, features, usefulness, etc. in a very effective manner, a seller arouses interest in the consumers thereby creating demand, and finally sales.

RBSE Class 12 Business Studies Chapter 8 Long Answer Type Questions

Question 1.
Explain the meaning of advertisement and mention it objectives.
Answer:
Meaning of Advertisement :
The dictionary meaning of advertisement is ‘to give public notice or announce publicly.’ But in business world, its meaning is very comprehensive. It is a non-personal form of communicating information related to promotion of an idea, presentation of goods and services, with an objective to create demand. The common public is persuaded to buy the goods and services through this effective medium of communication. It is regarded as a prominent tool of marketing.

Objectives of Advertisement :

To increase sales :
The first and last objective of advertising is to create a desire for the product among the consumers to buy the product. It creates awareness among potential customers regarding the products, thereby creating demand on continuous basis, which in turn, increases sales.
Creates new customers :
Advertising plays an important role in creating demand for existing and potential buyers. Through rigorous, wide-area campaigning undertaken for the sale of the product, it persuades the consumers to try the product and helps them in taking decision.
Entry in new markets :
The objective of advertising is to increase demand and persuade people to use new improved products by changing their old consuming habits and interests. Consequently, the consumer base increases and it becomes possible to enter into a new market, thus increasing market share.
To educate consumers :
Advertising provides useful information about the use, features, benefits of a product. The buyers can clear their confusion by analysing the information provided. Thus, it educates the consumers to take the most appropriate decision for buying and about functional utility of goods.
To develop brand preference and brand loyalty :
Well-planned advertising programmes help to convince the customers about the superiority of their product over the other competitive products. By this, advertising helps in developing brand presence and brand loyalty.
To increase the frequency of use and to create habit of repeated purchase or repeated use of the company’s product, advertising is done by the marketeers.
To overcome and face competition and to sustain demand by creating confidence in consumers.
To enhance goodwill of the enterprise by promising better quality products and services.
To reach people inaccesible to salesmen, advertising is done.

Question 2.
What is outdoor advertisement ? Explain its sources, merits and demerits.
Answer:
Outdoor Advertisement
Outdoor advertisement has gained immense popularity these days. Its purpose is to attract the attention of the people at busy roads and in marketplaces, It includes use of poster displays, bill-board displays, etc.

Wall painting :
Under this, the advertiser gets the required message and slogans about the products painted in bold letters on walls of shops, houses and bridges, etc.
Posters and hoardings :
Posters are pasted on walls of buildings, bridges and other public places to convey the message to the people passing by, such as main crossings, bus stands, railway stations, etc.
Electrical signboard displays :
It involves the use of light or neon tubes to attract the attention of people, particularly during night. Generally, a short message is illuminated in tubes of different colours, so that it appears attractive. Electrical displays are fixed at heavy traffic centers.
Vehicular displays :
In this, for advertisement, modes of public transport are used. Advertisement is done in space outside and inside the buses, railway carriages and other vans that may be hired by the businessmen to spread their message.
Signage advertising :
Includes ‘sky’ writing where aeroplanes use special chemicals to form words.
- Plane banners where large signs are pulled behind an aeroplane.
- Mobile billboards.
- plastic bags used to cover newspapers delivered to homes.
- Advertisement attached to grocery carts.

Merits of outdoor advertising :

It is highly flexible.
Attracts attention quickly.
Requires less time and efforts on the part of readers.
It has wide public appeal.
High flexibility.

Demerits of outdoor advertising :

It has low retention value.
It has temporary appeal.
It can cause pollution and health hazards.
It can sometimes create public nuisance.