NCERT Solutions Entrepreneurship Class 12 Chapter 11 Notes PDF

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Entrepreneurship Class 12 Chapter 11 Notes PDF, NCERT Solutions Entrepreneurship Class 12 Chapter 9 Notes PDF

Entrepreneurship Class 12 Chapter 11 Notes PDF

Class12th 
Chapter NameAdvertising and sales promotion 
Chapter number11
Book NCERT
SubjectEntrepreneurship
Medium English
Study MaterialsImportant questions answers
Download PDFEntrepreneurship Class 12 Chapter 11 Notes PDF

Advertising and sales promotion 

Nowadays advertising has become an essential part of business organizations. The English word Advertise comes from the Greek words Adverte meaning Add, Borrow and Verte meaning actually turning. It means to divert people’s attention towards a particular object. 

William J. According to Stanton, “Advertising includes all those activities in which a message about a product or service is given to a group by impersonal verbal or visual means.” In fact, attracting customers to increase the sales of goods is called advertising. Sales of goods increase through advertising. Due to which the businessman benefits.

Entrepreneurship Class 12 Chapter 11 Notes PDF

Advertising expands the knowledge of the customers and the consumer gets the necessary goods without wasting time. Producers get various benefits from advertising, such as increase in sales and information about new products. 

Increase in credibility, stability, awareness of changes in production, getting more profits and benefits of specialization. Besides, consumers also benefit from advertising, such as increase in knowledge, easy selection of goods, availability of good quality goods at low prices, information about prices, improvement in quality, improvement in standard of living. , getting rid of middlemen etc. 

Apart from this, advertising also has importance or various benefits for the middlemen, such as facilitating sales, getting more employment due to increase in sales, motivation for sellers, reduction in risk, stability in sales and prices, etc. to the society.

Also get benefits from advertising. Advertising has various objectives and functions. The main objective of advertising is to communicate between consumers and producers. But some people consider advertising as a waste. They argue that advertising increases spending. 

As a result the price of goods increases and customers receive expensive goods. There are various means of advertising, such as advertising is done through newspapers, magazines, cinema slides, pamphlets, advertisement boards, exhibitions etc. Similarly, nowadays advertising work is being done more through radio and television.

Promotion means increasing the interest of customers towards the product and service and providing information about the product. Sales promotion includes everything except personal selling and advertising. This affects consumers and increases the influence of middlemen and traders. 

This includes freebies, samples, fairs, exhibitions, competitions and demonstrations. In fact, sales promotion means all those steps which are taken to increase sales. Sales promotion can be done in various ways. Such as giving coupons at the time of sale, providing free samples, selling at reduced prices, arranging free services and special discounts, giving gifts, organizing fairs and exhibitions etc. 

Salesmanship is an art in which ideas and products are presented to the consumer and he gets ready to buy them. Efforts are made to win the trust of the consumer on the basis of salesmanship. Through salesmanship, sales of goods increase which brings profit to the businessman. 

A successful salesman has various qualities, such as

Attractive personality, awareness towards work, good behaviour, dedication to work, being honest and hardworking, having good behaviour, having patience and self-confidence and having foresight etc. property of

In today’s circumstances, personal selling is an essential tool to increase the sales of goods. In this, there is personal contact between the seller and the buyer and the work of buying and selling is done through mutual conversation. Nowadays personal selling has great importance from the point of view of business development.

Sales promotion and advertising both are means of increasing sales. Still, there is a difference between them on some special grounds. Despite this difference, the main objective of sales promotion and advertising is to increase sales and earn maximum profit so that the business can grow.


VERY SHORT ANSWER TYPE QUESTIONS


1. What is advertising?

Ans. Advertisement is a method according to which to attract people’s attention towards something. People get ready to buy their favorite items after reading or listening to advertisements. Therefore, sales increase through advertising.

2. Write two benefits of advertising received by producers. 

Ans. The two benefits that producers receive from advertising are as follows- 

(i) Increase in sales volume – The sales volume of goods increases through advertising because people get attracted by advertisements and buy the goods. 

(ii) Increase in demand – Advertising increases the demand for goods because the main objective of advertising is to create the right environment to increase sales. 

3. Write two benefits of advertising to the consumer.

Ans. The two benefits that consumers get from advertising are as follows- 

(i) Increase in knowledge – Consumers’ knowledge increases through advertising because they get necessary information regarding the goods on the basis of advertisement.

(ii) Best product at low price – Demand increases through advertising, production increases. Due to which producers sell their goods at reasonable prices. Due to this, consumers get good goods at lower prices. 

4. Write two objectives of advertising.

Ans. The two objectives of advertising are as follows-

(i) Information about new products: People get information about new products through advertising. People get ready to buy a new item after seeing the advertisement. 

(ii) Generation of demand – Demand is generated for a particular item through advertising. 

5. Write the names of the means of advertising.

Ans. There are various means of advertising which are- 

(i) Advertisement through newspaper, (ii) Advertisement through magazines, (ii) Broadcast advertisement, (iv) Cinema advertisement, (v) Advertisement through advertisement board, (vi) Advertisement through cinema slide, (vii) Fair exhibition. Advertisement through, (viii) Advertisement through pamphlet or handbill and advertisement through loudspeaker etc.

6. What is promotion?

Ans. Promotion means increasing the customer’s interest towards the product and service and providing information about the product.

7. What do you understand by sales promotion?

Ans. Sales promotion is an activity based on which efforts are made to increase the sales of goods. It includes everything other than personal selling and advertising that influences consumers and makes them ready to buy the product. Sales promotion includes free gifts, product samples, fairs, exhibitions and demonstrations.

8. What is the meaning of salesmanship?

Ans. Salesmanship is an art based on which sellers sell goods. Through this art, sellers persuade customers to buy goods. In this, the hearts and trust of customers are won.


SHORT ANSWER TYPE QUESTIONS


1. Give different definitions of sales promotion. (Define Sales Promotion.) 

Ans. Sales promotion means any action that can increase sales and increase the value of goods to the customer. Value creation increases profits by giving discounts to wholesalers or retailers. Therefore, sales promotion directly encourages specific orders. If the entrepreneur promotes through wholesalers then the entrepreneur has to pay for sales promotion.

Efforts must be made for which he has to select the appropriate distribution system. Definitions of Sale Promotion: Many authors have given definitions of sales promotion as follows-

(i) William J. According to William J. Stanton, “Sales promotion is a practice of providing information, suggestion and influence.”

(ii) According to Philip Kotler, “Promotion includes all the instruments of marketing mix whose main objective is persuasion.”

(iii) In the words of the American Marketing Council, “All marketing activities, except personal selling, advertising and broadcasting, and presentation-shows and exhibitions and other non-normal selling efforts aimed at promoting consumer purchasing and shopper effectiveness” “Called sales promotion.”

The above definitions summarize that selling and promotion includes all activities (except advertising, personal selling and broadcasting) whose objective is to increase the volume of sales. Following are the main features of sales promotion-

(i) Sales promotion does not include advertising, personal selling and broadcasting. 

(ii) Sales promotion activities are not routine activities. These are absolutely momentary and are carried out on special occasions like demonstrations, free samples etc. 

(iii) It makes advertising and personal selling more effective.

(iv) Sales promotion encourages shopkeepers, distributors and consumers.

2. Write the objectives of sales promotion. (Write sown the objectives of sales promotion.)

Ans. The main objectives of sales promotion are as follows-

(i) To generate inquiries regarding any product or service.

(ii) To ensure product success by providing free samples and additional items.

(iii) To develop brand loyalty through promotions, coupons, special sales.

(iv) To excite new customers by giving them retail coupons and premiums.

(v) Motivating retailers to keep more stock by giving them more concessions

(vi) To provide promotional assistance to traders through sales competitions, special cash and trade discounts etc.

(vii) To promote incoming decisions of goods to retailers.

(viii) To strengthen the products and increase their utility.

(ix) Developing competitive products and running stock sale campaigns before introducing new products and

(x) To encourage sales.

3. What is advertising? Give different definitions of it. (What is advertisement? Define advertisement.)

Ans. Advertising is a non-personal form of presentation or promotion of ideas, goods or services by an identified promoter. Advertisement advertises facts about the products and services offered to consumers and also about the manufacturer. This is how advertising disseminates information. The message presented is called advertising.

In today’s marketing, advertising is an integral part of business marketing activities. It is impossible to imagine any business in the modern world without advertising. However, the format of advertising varies according to the business.

Advertisement has been defined by many scholars as follows-

(i) According to Wheeler, “Advertising is a non-personal form of providing ideas, goods or services so that people buy more.”

(ii) According to Ricard Buskirk, “Advertising is a form of presentation of ideas, goods or services for a fee by an identified promoter.”

(iii) C.L. According to CL Bolling, “Advertising can be defined as the art of creating demand for a product or service.”

On analyzing the above definitions the following characteristics of advertising come to light-

(i) It is non-copyrighting of goods, services or ideas towards one group of persons.

(ii) It has given many messages to all the people.

(iii) The message is about the type and utility of goods or services etc.

(iv) Advertisement is paid and responsible.

(v) To commit to conduct as per the intention of the advertiser behind the advertisement.

4. Describe the objectives of advertising. (Discuss the objects of advertisement.)

Ans. The main objectives of advertising are as follows-

(i) To give information regarding existence: The first objective of advertising is to inform the customers about the launch of a specific product in the market and its availability in the market.

(ii) To create Demand – Another objective is to attract people for the new product to generate demand for it.

(iii) To maintain the created demand: To maintain the created demand through continuous promotion is another objective of advertising.

(iv) To instruct about the use of goods: Advertisement not only gives information to people about new goods but also teaches them how to use them.

(v) To remove competition: Competition can be removed through advertising. With the help of advertising, we can promote the qualities of a particular product and remove unnecessary competition by providing information in comparison to rival products in the market.

(vi) To remove Doubts and Confusion: To maintain the popularity of a product, it is necessary to remove doubts and doubts regarding that product, for which advertising is necessary.

(vii) To encourage consumers – The intention of advertising is to increase the number of existing consumers. Also, they have to be encouraged by satisfying them with the consumption of goods.

(viii) Help to Sellers: Advertisement brings consumers closer to the advertiser. Thus advertising simplifies the work of sellers.

(ix) To make caution: One function of advertising is to warn the public and businessmen about intoxicating substances and substitutes.

(x) To reach the people whom salesmen could not reach: Advertising means sending messages to remote places. Apart from this, information can be offered to a wide area. In this way, information is conveyed through advertising even to those people whom the seller cannot meet.

(xi) To Increase the goodwill of Advertiser – One objective of advertising is to increase the goodwill of the advertiser. For example, “Lipton means good tea”, an advertisement which also aims to promote the reputation of the advertiser, Lipton Tea Company.

(xii) To reduce the Production and Sales Cost —— One objective of advertising is to reduce production and sales costs. This is because advertising increases the quantity of demand as a result of which larger production reduces the cost of production per unit.

(xiii) To make the selection of Commodity Easy – Advertisement clarifies the utilities of the commodities due to which the selection of a particular commodity becomes easy by doing a comparative study of their utilities.

5. Describe the importance of advertising. (Discuss the importance of advertising.) 

Ans. Advertising expands consumer knowledge. With the help of advertising, consumers consume these essential items in no time. Due to this the sale of goods increases rapidly. The main benefits of advertising are as follows-

(i) Benefits to Manufacturers— 

(a) It increases the sales volume of the product by creating attraction towards it.

(b) New products can be easily introduced in the market.

(c) Enhances the image and prestige of the product.

(d) Establishes direct relationship between producer and consumer.

(c) Demand for the product increases.

(D) It creates a responsive market.

(E) Reduces per unit selling cost by increasing sales volume.

(F) Inspires employees and workers to increase their efficiency. 

(i) Helps the producers to face competition.

(ii) Importance to Wholesaler and Retailers 

(a) Because consumers know about the product and its variety through advertising, sales increase.

(b) Increase the turnover of stock.

(c) It complements selling activities.

(d) Retailers and wholesalers do not need advertising because the product advertises its production.

(e) It is sold cheaper.

(f) This keeps everyone getting product information.

(iii) Importance to consumers – (a) It provides high quality goods to the consumer at low prices. (b) Advertising establishes a direct relationship between the product and the consumer and removes the middleman. (c) It gives information about where and when their goods are available.

(d) It conducts comparative study of certain goods and products.

(e) Gives information about new uses of objects.

(iv) Importance to salesmen—

(a) It helps the salesman to start his work effectively. (b) Introduces new products in a simple and convenient manner.

(c) The relationships built by the seller with the customers remain intact.

(v) Importance to Society – (a) Advertisement is generally educational in nature.

(b) Due to this, production becomes larger.

(c) It raises the standard of living of people by satisfying their infinite desires.

(d) It increases employment opportunities.

(c) It provides a glimpse of the lifestyle of the country.

(i) It creates healthy competition among the manufacturers. 

6 . Describe the means of advertising.

Ans. There are two mediums of advertising- 

(i) Indoor Advertising Media – It is related to the messengers through which advertisers deliver messages to the homes of target groups. These are as follows-

(a) Newspaper Advertising 

(b) Magazine Advertising

(c) Radio Advertising

(d) Television Advertising

(c) Films Advertising

(ii) Outdoor Advertising Media – These are those techniques which contact the customers when they are outside the home. Such mediums are as follows:

(a) Poster Advertising

(b) Print Display Advertising

(c) Electric Signs Advertising 

(d) Traveling Display Advertising

(e) Sky Writing Advertising.

7. What things are kept in mind while choosing the medium of advertising? 

Ans. Selection of Media – While choosing the medium, the following things should be kept in mind-

(i) Cost of Advertising: Expensive advertising reduces the profit of the owner, hence it should be reasonable and low cost.

(ii) Simplicity of Advertisement – ​​Simple advertisements are easily understood. Cinema advertising is simple and cheap.

(iii) Comparative Advertisement – ​​While choosing the advertising medium, it should be kept in mind which medium the competing producer is using. (iv) Scope – It should be kept in mind how many people the advertisement will reach. When local, local newspapers are best. If the area is large then radio and television are fine.

(v) The educational medium should be such that it has an impact on the viewers.

8. Is advertising wasteful?

Ans. Although advertising has many benefits, it is still criticized-

(i) Advertising is not productive – It is true that advertising does not lead to much production. This also increases the cost of production.

(ii) Advertisement forces the desire to buy – It is true that advertising arouses interest in purchasing a product when there is no need for it.

(iii) Multiplies the needs: It unnecessarily spoils people’s budget by increasing their desires.

(iv) Advertising increases the cost – Advertising expenses are added to the cost of production. Customers have to bear this burden.

(v) Monopoly advertising emphasizes on the brand. Due to this the consumer becomes a slave of a brand. The producer starts demanding higher prices. 

(vi) Encourages Waste – People are forced to finish the product quickly because the new product is going to be released in the market soon. Hence unnecessary consumption occurs. 

(vii) Misrepresentation – Most advertisements make false claims. Therefore advertising does not provide full benefit.

(viii) Consumer’s Deficit: Some people who have low income are not able to buy the product but advertising forces them to do so. Due to this they have to cut down on family expenses and face various problems.


LONG ANSWER TYPE QUESTIONS


1. Define advertising and explain its importance. (Define advertisement. Discuss its importance.) 

Ans. Modern business or any business in the world cannot survive without advertising. No one can deny the importance of advertising. The problem is how to increase the income from the money spent on advertising. Advertisement is effective only if it is done in a planned manner. How to accomplish this and how to evaluate it are important. 

Therefore, advertising is an important decision because it influences and reflects the entire marketing method. Nowadays advertising has become an essential part of business organizations. Is. The English word Advertise comes from the Greek word Adverte meaning Add there and Verte meaning actually turning. It means to divert people’s attention towards a particular object. Definition of Advertisement: Following are the definitions of Advertisement:

William J. According to Stanton, “Advertising includes all those activities in which an overt message about a product or service is given to a group through impersonal verbal or visual means.” (Advertising consists of all activities involved in presenting to a group a non-personal, oral or visual, openly sponsored message regarding product, service or idea.)

According to Richard Buskirk, “Advertising is a paid, impersonal presentation or promotion of an idea, product or service by a known advertiser. ” (Advertising is a paid form of non-personal presentation or promotion of ideas goods or services by an identified sponsor.)

Importance and Benefits of Advertisement – ​​Advertisement expands the knowledge of the customers and the consumer gets the required product without wasting time.

Those who get benefits from advertising are as follows – Benefits to Producers

He gets the following benefits- 

(i) Increase in sales volume: Advertisement increases attraction towards the product, which increases sales.

(ii) Introduction to new products: A new product of the same product is introduced in the market through advertising.

(iii) Increase in Good Will: Continuous advertising increases the goodwill of the product. This also brings fame to the builder.

(iv) Creation of Demand – The main objective of advertising is to create the right environment to increase sales.

(v) Facing Competition: Many times advertising is not used to tell people about a product but to increase demand by diverting people from other products.

(vi) Availability of efficient staff: Advertisement increases goodwill for the company. Such a company has skilled staff.

(vii) Price Stability – Continuous advertising maintains demand which leads to price stability. product

(viii) Information of change in products: Advertisement is done by the product to inform the consumer about the change in the product, its price, increase in quality, measurement weight etc.

(ix) Higher Profits Advertising creates, increases and maintains demand for products and services. Hence it increases the sales and profits of the owners.

(x) Benefits of specialization: Advertising brings specialty in production by making any product popular. Importance/Benefits to Consumers: These are the following-

(i) Addition in knowledge – Its benefit to the consumer is that it provides information about where, when and at what price the product is available. This saves their time in shopping.

(ii) Easy selection of product: This gives the customer an opportunity to compare the merits and demerits of different similar products so that he can take the right decision.

(iii) Best product at low cost: This increases demand, increases production so that the producer can sell the product at low cost.

(iv) Improvement in standard of living: Advertisement gives new developed product. Therefore, using a good product at a reasonable price improves the quality of life of the customer.

(v) Easy availability of products: Advertisement makes it easier for the customer to find the product because he knows its quality, price and place of purchase.

(vi) Knowledge of price – Generally, the price of the product is known through advertising and the customer is not cheated. (vii) Improvement in Quality – Compared to others

To defeat the producers, all the producers try to provide new improved type of product to their customers. They explore and develop the market and try to provide the latest products to the customers. 

(viii) Low price advertising increases demand for which production has to be increased. As a result the price decreases.

(ix) Elimination of middlemen: Through advertising, the product can be sold directly to the customer and there is no need for middlemen. The customer also benefits from this.

(x) Comparative Study: Consumer can compare prices, quality, place of purchase and decide which product is best for him.

Importance of advertising for middlemen: Middlemen have the following benefits:

(i) Permanent source of livelihood: Advertising brings stability in the demand for production. Sales increase and more people get employed

(ii) Convenient Sale: Customers are created through advertising and sales automatically increase. Therefore, middlemen do not have to worry about this. 

(iii) Stimulation to sellers This encourages intermediaries.

(iv) Increases Sales: Increase in sales helps the middlemen

(v) Reduction in Risk: Due to increase in sales due to advertising, there is no need to worry about stocking, changing fashion etc. There is benefit.

(vi) Stability in sales and prices: Advertising increases and maintains demand. Hence advertising brings stability. In this way, it leads to stability in sales and prices due to which maximum profits accrue to the middlemen. Benefits to Society (Importance to Society) Advertisement provides the following benefits to the society:

(i) Many people, including working professionals and artists, benefit from advertising. They earn their living from this.

(ii) Reduction in Middlemen: Middlemen are removed from advertising and the customer has direct contact with the producer. Society benefits from this.

(ii) Increase in standard of living——This increases desires for things and their satisfaction and the standard of living becomes higher.”

According to Winston Churchill, “Advertising increases the consumption power of people. It creates a desire to live a good life.”

(iv) Healthy Competition: Advertisement increases competition among different producers. This benefits the business and ultimately benefits the society. 

(v) Increases the Income of Newspapers – According to a recent investigation, 75% of the income of newspapers comes from advertisements and only 25% of the income comes from readers. This makes publishing the newspaper cheaper.

(vi) Development of Culture: General advertisements are educational. American President Roosevelt once said, “Advertising brings precisely the information about beneficial things to the greatest number of people. It is basically a type of education and the progress of civilization depends on education.”

(vii) Economic Development of the Country – Advertisement gives a glimpse of the life of any country. Advertisement is like a continuous commentary on people’s lifestyle. It is beneficial in new industries. Its production is identified through advertising.

2. Describe the functions and objectives of advertisement. 

Ans. Its aim is only to sell the product. It can be a product, service or idea. The main objective of advertising is communication between consumers and producers. It has the following objectives-

(i) Information/Introduction of New Products—Advertising is the only means of launching a new product in the market. The introduction of a new product is necessary because customers have never used it, and advertising forms the ‘base’ for that product.

(ii) Creation of Demand – Creates a good environment for increasing or maintaining sales. By giving information about the features of the product, advertising creates new customers for that product and customers may switch their brand.

(iii) To force middlemen to handle the products: Advertisement increases the credibility of the brand of the product and creates loyalty towards it. When customers become loyal to the brand, the intermediaries have to change and they have to carry the product of that brand because the customers start demanding that product.

(iv) To Remind the customers – Through repeated advertising, customers are reminded to choose the brand and they start buying the product of their choice. 

(v) Creation or enhancing good will: The purpose of advertising done in large quantities is to create and maintain goodwill for the advertising company.

(vi) To inform about change – Advertisements provide information to the customers about the price, distribution source, measurement and packing of the product. 

(vii) To Neutralize competitors advertising – Most of the advertisements are not done to increase sales but to cancel the advertisements of others.

(viii) Rationalization of Buying: Some people think that consumers are rational. Advertisement strengthens their understanding and they take decisions after thinking on the basis of advertisement.

3. Discuss the demerits of advertising. (Explain the demerits of advertisement.) 

Ans. Following are the demerits of advertising-

(i) Wastage of Money – Advertisement forces consumers to buy those things which they do not need. They are only a means of opulence. Hence the money spent on them is wasted.

(ii) Advertisement increases costs: The cost of advertising is passed on to the consumer.

(iii) Monopoly prices – Intensive advertising forces the consumer to buy a specific item. The producer knows this very well and starts demanding higher prices.

(iv) Misleading advertisement – ​​Most of the advertisements are wrong and false. The facts are presented in one’s own way and the customer is unable to understand them. (v) Loss due to Obscenity: Sexual aspect is given in some advertisements. Such advertisements affect the decency of the public.

*(vi) Instability: Many times advertising arouses interest in purchasing. Actually the consumer does not need such goods. 

(vii) Birth of Social Evils: Social evils flourish through the means of opulence. For example, an advertisement of a liquor company links drinking with social prestige and encourages drinking. People think it’s okay to drink alcohol.

Start drinking. This is a wasteful expenditure, harms health and disturbs the peace at home. 

(viii) Monopoly Argument: Advertisements promote their brands. Due to this the customer becomes a slave of that grand. In such a situation producers start paying higher prices.

(ix) Wastage of National Resources: People are forced to consume the produce as quickly as possible because they are less likely to produce good produce. If fashion changes, the person keeping the product in stock may suffer losses. Producers and shopkeepers will also suffer losses. Because the product sells cheaper. In this way these national resources are destroyed.

(x) Difficulty in decision making – Many times the consumer is not able to take a logical decision. For example, there are many types of toothpaste in the market and the prices of all are almost the same. Due to this the consumer gets confused as to what to buy.

NCERT Solutions for Class 12 Commerce Stream


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