Q.1. Can profits be the sole objective of a business? Justify your answer by giving suitable reasons.
Ans: A layman may say that profits are the only objective with which a business is cariedon but a good business man cannot keep profits as his only motive. A business organization is an economic unit which makes use of various factors of production. Capital is one of the factors of production. It pays interest in the form of profits. Uí wick has put it beautifully, “Earning of profits cannot be objective of business any more than eating is the objective of living.” there must be other objectives of a business which Eiíe non monetary but as important as monetary, like employee satisfaction, innovation, productivity, consumersatisfaction, etc. Following reasons can be given to justify our opinion that profits cannot be the soleobjective of a business.
1. If we make profits to be only objective then interests of consumers,employees and society will be ignored.
2. Maximum profits in the short run, may result worse for long term interest of the company.
Q.2. Advertising’ and ‘Personal Selling’ both are communication tools used by the marketers to promote their products. Yet they differ in their approach. Differentiate between the two by giving any six differences.
Ans: The fundamental difference between advertising and personal selling, are as follows:
1. Advertising alludes to paid form of communication, which
commercializes product or service, offered by an identified sponsor, to
increase sales. On the other hand, a form ofpromotion, wherein the
sales personnel sells the product to customers, by directly visiting
them, is known as personal selling.
2. While advertising is a one-way communication, wherein the message
is transmitted tothe customers, personal selling is a two-way communication, wherein the message is transmitted to customers, as
well as feedback is provided simultaneously.
3. Advertising is a non-personal form of communication the message
reaches the targetaudience after it is being aired. On the contrary,
personal selling, as the name suggest involves salesman visit to
customer’s place individually, which is a personal form of
4. Advertising uses pull strategy, which draws public attention and
persuades them to buythe product. As against, personal selling uses
push strategy, which induces them to buythe product.
5. In advertising, the flexibility is missing, as the message is
standardized and cannot bechanged according to customers. In
contrast, personal selling uses customized messages. Advertising uses mass media, like radio, television, hoardings, the internet, blogs, apps,newspaper, etc. On the flip side, in personal selling, salesman
delivers the message, personally to the target audience.