I. Choose the Correct Answer
1. The person who identifies goods/services desired by consumers is called Answer: (a) Marketer
2. Marketing aims at satisfying Answer: (b) Needs of the customers
3. A trade between buyer and seller is called Answer: (c) Transaction
4. A market for buying and selling shares and debentures is Answer: (d) Stock Exchange Market
5. A market for buying and selling government securities is Answer: (e) Security Market
I-A. Additional MCQs
1. The person who takes goods and services to the consumer is Answer: (a) Marketer
2. A market is defined as Answer: (b) A place where business is transacted
3. The functions of a market include Answer: (c) All of the above — To Exchange, adjust price mechanism, improve quality
4. A market where shares and debentures are traded is Answer: (d) Stock Exchange Market
5. A market where goods are exchanged with immediate physical delivery is Answer: (e) Spot Market
6. A market dealing with short-term financial instruments is Answer: (f) Money Market
7. A market covering the entire country is Answer: (g) Security Market / National Market
8. Which pair is incorrectly matched? Answer: (h) Regulated Market — "No statutory measures" is incorrect; regulated markets have statutory measures
9. Which statements about imperfect market are correct? Answer: (i) All correct — Products similar not identical; Prices not uniform; Lack of communication
II. Matching
Q1. Match the following
| |
|---|
| i. Perfect market | 2. Large number of buyers and sellers |
| ii. Imperfect market | 1. Prices not uniform |
| iii. Regulated market | 4. Statutory measures |
| iv. Money market | 3. Short term securities |
Q2. Match the following
| |
|---|
| i. Stock market | 4. Shares and Debentures |
| ii. Bullion market | 3. Gold and Silver |
| iii. Very short period market | 2. Fruits and Fish |
| iv. Secondary market | 1. Semi-finished goods |
III. Assertion and Reason
Assertion (A): A perfect market has a large number of buyers and sellers. Reason (R): In a perfect market, no single buyer or seller can influence the price.
AnswerBoth A and R are true, and R is the correct explanation of A. A perfect market is characterised by a large number of buyers and sellers, which ensures that no individual can influence the market price.
IV. Very Short Answer Questions
Q1. What is the origin of the word 'Market'? The word 'Market' is derived from the Latin word 'Marcatus' which means trade, commerce, or a place of business. It refers to a location or arrangement where buyers and sellers interact.
Q2. Who is a Marketer? A marketer is a person who identifies goods and services desired by consumers and markets them on behalf of a company. The marketer acts as a link between the producer and the consumer.
Q3. What is a Regulated Market? A regulated market is one where trading practices are controlled by statutory measures and government regulations to protect the interests of both buyers and sellers.
Q4. What is a Spot Market? A spot market is a market where goods are exchanged with immediate physical delivery. The buyer pays cash and takes possession of the goods on the spot.
Q5. What is a Commodity Market? A commodity market is a place where produced goods and consumer goods are bought and sold. It includes markets for agricultural products, manufactured goods, and raw materials.
V. Short Answer Questions
Q1. What can be marketed? (S.GOPI PEEPI) The following can be marketed:
- Services
- Goods
- Organization
- Persons
- Ideas
- Places
- Events
- Experiences
- Properties
- Information
Q2. Explain the three roles of a marketer.
Answer
1. Instigator: The marketer watches market developments, identifies customer needs, and initiates the process of creating products to satisfy those needs.
2. Innovator: The marketer distinguishes products from competitors by adding new features, improving quality, and offering better pricing and delivery options.
3. Implementer: The marketer converts market opportunities into marketable products by planning and executing strategies to reach the target customers.
Q3. Is the marketer an innovator? Yes, the marketer is an innovator. The marketer agrees with the views of customers and distinguishes products by adding features, changing pricing, improving delivery, and modifying business models. Innovation helps the marketer create unique value propositions and stay ahead of competitors.
Q4. Explain time-based markets.
Answer
1. Very Short Period Market: Deals with perishable goods like fruits, fish, and vegetables that must be sold immediately.
2. Short Period Market: Deals with goods like rice, wheat, and other semi-durable items that can be stored for a short duration.
3. Long Period Market: Deals with durable goods like television, refrigerator, and furniture that can be stored and sold over a longer period.
Q5. What are the functions of a marketer? The functions of a marketer include: 1. Gathering and Analysing market information 2. Market planning 3. Product Designing and Development 4. Standardisation and Grading 5. Packaging 6. Branding 7. Customer Support Services 8. Pricing 9. Promotion 10. Physical Distribution 11. Transportation 12. Storage and Warehousing
VI. Long Answer Questions
Q1. Explain the classification of markets. (GTTV RICE)
Answer
I. Based on Geographical Area: 1. Family Market: Limited to a small family group. 2. Local Market: Confined to a particular locality or town. 3. National Market: Extends throughout the country. 4. International Market: Spans across nations globally.
II. Based on Commodities: 1. Commodity Market:
2. Capital Market:
- Produce Exchange: Deals with agricultural products like rice, wheat, cotton.
- Manufactured Goods Market: Deals with manufactured products like textiles, machinery.
- Bullion Market: Deals with precious metals like gold and silver.
- Money Market: Deals with short-term financial instruments.
- Foreign Exchange Market: Deals with currencies of different countries.
- Stock Market: Deals with shares and debentures of companies.
III. Based on Economics: 1. Perfect Market: Large number of buyers and sellers, uniform prices, perfect knowledge, free movement. 2. Imperfect Market: Products are similar but not identical, prices are not uniform, lack of communication.
IV. Based on Transaction: 1. Spot Market: Goods are exchanged with immediate physical delivery. 2. Future Market: Goods are contracted for delivery at a future date.
V. Based on Regulation: 1. Regulated Market: Controlled by statutory measures and government regulations. 2. Unregulated Market: No government intervention; trading is free.
VI. Based on Time: 1. Very Short Period Market (perishable goods) 2. Short Period Market (semi-durable goods) 3. Long Period Market (durable goods)
VII. Based on Volume: 1. Wholesale Market: Deals in large quantities; links producers to retailers. 2. Retail Market: Deals in small quantities; sells directly to consumers.
VIII. Based on Importance: 1. Primary Market: Producers sell directly to wholesalers. 2. Secondary Market: Semi-finished goods are traded. 3. Terminal Market: Central assembly point, usually in metropolitan areas.
Q2. Distinguish between Perfect Market and Imperfect Market.
Answer
| Basis | Perfect Market | Imperfect Market |
|---|
| Number of buyers and sellers | Large number | Limited number |
| Product | Identical/homogeneous | Similar but not identical |
| Price | Uniform across the market | Not uniform |
| Knowledge | Perfect knowledge about market | Lack of communication and knowledge |
| Entry and exit | Free entry and exit | Restricted entry |
| Influence | No single buyer or seller can influence price | Some buyers or sellers can influence price |
| Example | Agricultural commodity market | Real-world markets with branding |
Q3. Explain the classification of markets based on commodities.
Answer
I. Commodity Market: A market where physical goods are bought and sold.
1. Produce Exchange: Deals with agricultural products like rice, wheat, cotton, and jute. These are usually organised markets where grading and standardisation exist.
2. Manufactured Goods Market: Deals with manufactured products such as textiles, machinery, and consumer goods. These markets may be local, national, or international.
3. Bullion Market: Deals with precious metals like gold and silver. Prices are influenced by global demand and supply.
II. Capital Market: A market for financial instruments.
1. Money Market: Deals with short-term financial instruments like treasury bills, commercial papers, and certificates of deposit.
2. Foreign Exchange Market: Deals with buying and selling of foreign currencies. Exchange rates are determined by demand and supply.
3. Stock Market: Deals with shares and debentures of companies. It facilitates capital formation and investment.
Q4. Explain the classification of markets based on importance.
Answer
1. Primary Market: This is the market where producers sell their goods directly to wholesalers. It is the first point of sale after production. Examples include agricultural markets where farmers sell their produce.
2. Secondary Market: This market deals with semi-finished goods. Goods that have undergone some processing but are not yet finished products are traded here. It serves as a link between primary producers and final consumers.
3. Terminal Market: This is a central assembly market usually located in metropolitan areas. It is the final point where goods are gathered from various sources, graded, and then distributed to retailers or consumers. Examples include major wholesale markets in cities like Chennai, Mumbai, and Delhi.
Q5. Distinguish between Wholesale Market and Retail Market.
Answer
| Basis | Wholesale Market | Retail Market |
|---|
| Link | Links producers to retailers | Links retailers to consumers |
| Product range | Deals in large variety of products | Deals in limited product range |
| Quantities | Deals in bulk quantities | Deals in small quantities |
| Location | Located in central business areas | Located near residential areas |
| Price | Lower per unit price | Higher per unit price |
| Customers | Retailers and other businesses | Individual consumers |
| Capital | Requires large capital | Requires less capital |
| Storage | Requires large storage facilities | Requires small storage |
