Important Questions and answers: Launching of Small Business

1. What is Market survey?

Before the production actually starts, the entrepreneur needs to anticipate the possible market for the product. He has to anticipate who will be the possible customer for his product.

2. What is market assessment?

Different customer requires different types or qualities of a product. A small scale unit cannot meet the requirement of all types of customers. Therefore, it has to choose a target market or group of customers. After identifying the target market it should estimate the total demand.

3. What is market segmentation?

A market consists of heterogeneous customers who differ in terms of their needs, preference and buying capacity. A different marketing approach is necessary for every customer group.

4. What is pricing policy?

Price is an important element of marketing mix as it influences the profit margin and the sales volume. Pricing involves not only fixing the base price but also deciding the discount structure mode of payment, currency to be used, etc.

5. Define co-operative organization.

It is an association of person, usually of limited means who have voluntarily joined together to achieve a common economic end through the formation of a democratically controlled business organization, making equitable contributions of the capital required and accepting a fair share of risk and benefits of the undertaking.

6. What are the types of co-operatives?

·        Producers

·        Consumers

·        Marketing

·        Co-operative credit societies

7. What are the types of growth strategy?

·        Expansion

·        Diversification

·        Mergers

·        Sub contraction

8. What is diversification?

It is no longer possible for a firm to expand in the basic product market. Therefore the firm must add new products or markets to its existing business line this approach towards the growth is called as diversification.

9. What is Joint Stock Company?

It is a voluntary association of individuals for profit having a capital divided in to transferable

shares.

10. What is marketing mix?

The entrepreneur always tries to choose a mix of alternatives/decisions amongst the alternatives that may yield the maximum returns for him/her. There are usually four main decision areas. Viz. products, price, promotion and place which constitute a mix of decisions.

11. Define Branding.

“A brand is a name, term, sign, symbol or design or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.

12. What is Packaging?

Packaging is considered as an important element of product mix. Some marketers even consider it as a fifth „p‟ along with product, price, promotion and physical distribution. Packaging has been variously defined.

13. What is distribution channel?

A channel of distribution or marketing channel is the structure of intra company organization units and extra-company agents and dealers, wholesale and retail through which a commodity, product or service is marketed.

14. How to select a suitable channel?

The success or failure of an enterprise inter alia depends upon to a great extent, the selection of a suitable channel of distribution. There are a number of factors that must be considered when a channel of distribution is to be selected.

15. What is Man power planning?

Under Man power planning the management needs to ask itself two basic questio9ns of

(i) What kind of people do we need?

(ii) How many people to do we need?

16.            What is the identification of job requirements?

1. Conducting job analysis

2. Job Description

3. Job satisfaction