Business Studies class 12 chapter 10 questions and answers Marketing

Class 12 business studies chapter 10 ncert solutions: Marketing class 12 questions and answers

Textbook	Ncert
Class	Class 12
Subject	Business Studies
Chapter	Chapter 10
Chapter Name	Marketing class 12 ncert solutions
Category	Ncert Solutions
Medium	English

Are you looking for business studies class 12 chapter 10 questions and answers? Now you can download Marketing class 12 questions and answers pdf from here.

Very Short Answer Type:

Question 1: State any two advantages of branding to marketers of goods and services?

Answer 1: The advantages of branding to marketers of goods and services are as follows:

• 1. It enables a firm to distinguish its product from the competitor firm.
• 2. A product, when provided with branding, will make it known among customers and will attract new business. Branding makes advertising the product easier.

Question 2: How does branding help in differential pricing?

Answer 2: The brand name creates a perception about the quality of the product and helps consumers know about the quality of different brands offered by different firms when the customer is able to differentiate, a marketer can charge different prices from their competitor, and a good brand can charge a premium over the competitor.

Question 3: What is the societal concept of marketing?

Answer 3: The societal concept of marketing is an expansion of marketing concept. Apart from the consumer satisfaction, it pays attention to the social, ethical and ecological aspects of marketing.

Question 4: Enlist the advantages of packaging of consumer products.

Answer 4: Importance of Packaging:
(i) Helps in raising the standard of health and sanitation.
(ii) Helps in self service outlets as consumer can easily decide on his own what to buy.
(iii) Innovational opportunity e.g., new types of packaging availability have made it easier to market the product.
(iv) Product Differentiation Packaging is one of the very important means creating product differentiation.

Question 5: List five shopping products purchased by you or your family during the last few months.

Answer 5: The 5 shopping products purchased during last few months are :-

• 1. Watch
• 2. Mixer Grinder
• 3. Electric Iron
• 4. Clothes
• 5. Laptop Accessories

Question 6: A marketer of colour TV having 20% of the current market share of the country aims at enhancing the market share to 50 per cent in next three years. For achieving this objective he specified an action programme. Name the function of marketing being discussed above. (Ans. Marketing planning.)

Answer 6: The most important activity that a marketer needs to develop is an appropriate marketing plan that will help in achieving the objectives. In this question, it is marketing planning that needs to be implemented so as to decide on the strategies that should be put into action for achieving the objectives.

Short Answer Type:

Question 1: What is marketing? What functions does it perform in the process of exchange of goods and services? Explain.

Answer 1: Marketing is the process of identifying, creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Functions of Marketing in the Exchange Process:

1. Market Research – Identifies customer needs and market trends.
2. Product Development – Designs and improves products/services.
3. Pricing – Sets competitive and profitable pricing strategies.
4. Promotion – Advertises and informs customers (e.g., ads, sales promotions).
5. Distribution (Place) – Ensures goods/services reach the right customers.
6. Customer Relationship Management – Builds long-term customer loyalty.
7. Sales & Negotiation – Facilitates transactions between buyers and sellers.
8. After-Sales Services – Ensures customer satisfaction post-purchase.

Question 2: Distinguish between the product concept and production concept of marketing.

Answer 2: Difference Between Product Concept and Production Concept:

Basis	Product Concept	Production Concept
Focus	Quality and features of the product	Mass production and efficiency
Main Idea	“Customers prefer high-quality, innovative products.”	“Customers prefer affordable and widely available products.”
Approach	Improves product quality, design, and performance	Reduces production costs and increases output
Customer Priority	Assumes customers value superior products	Assumes customers prioritize low cost and easy availability
Example	Apple focusing on premium features in iPhones	Ford’s early mass production of Model T cars

Question 3: Product is a bundle of utilities. Explain.

Answer 3: A customer, at the time of purchasing a product, will look forward to the utility that the product offers. Customers seek many types of benefits from a product which can be social, psychological or functional. Therefore, it can be said that the product is a bundle of utilities as there are many benefits of owning the product.

Question 4: What are industrial products? How are they different from consumer products? Explain.

Answer 4: Industrial products are goods used by businesses or industries for production, operations, or resale rather than for direct consumption by individuals. Examples include machinery, raw materials, and tools.

Difference Between Industrial and Consumer Products

Basis	Industrial Products	Consumer Products
Purpose	Used for production, manufacturing, or business operations	Used for personal consumption
Buyers	Businesses, industries, and manufacturers	Individual consumers
Purchase Volume	Bought in bulk	Bought in small quantities
Decision-Making	Involves multiple decision-makers and complex buying processes	Individual or family-based decision-making
Examples	Machines, raw materials, office supplies	Clothing, food, smartphones

Question 5: Distinguish between convenience product and shopping product.

Answer 5: Difference Between Convenience Product and Shopping Product

Basis	Convenience Product	Shopping Product
Definition	Frequently purchased, low-cost items with minimal buying effort	Less frequently purchased, higher-cost items requiring comparison
Buying Behavior	Impulse or routine buying	Careful selection and comparison of alternatives
Price	Generally low	Moderate to high
Purchase Frequency	Frequently purchased	Occasionally purchased
Consumer Involvement	Low involvement, quick decisions	High involvement, detailed evaluation
Examples	Snacks, toiletries, newspapers	Clothing, electronics, furniture

Question 6: Describe the functions of labeling in the marketing of products.

Answer 6: Labelling is an important part of the packaging process. It gives the product users a basic idea of what the product is all about. Here are the functions of labelling:

• 1. It provides a small description of the product where it mentions the application, warnings, directions of use etc.
• 2. It helps to identify the product easily. It helps consumers to differentiate between products.
• 3. It helps in easy classification into different categories of the same product.
• 4. It helps businesses to promote their product. Attractive labelling is a great way to promote any product.
• 5. It provides the necessary information as mandated by law regarding the product.

Question 7: Discuss the role of intermediaries in the distribution of consumer non-durable products.

Answer 7: Intermediaries play a crucial role in ensuring the smooth flow of consumer non-durable goods (e.g., food, beverages, toiletries) from manufacturers to consumers. Their key functions include:

• Sorting and Arranging
  • Intermediaries collect goods from different sources and sort them into uniform categories based on size, quality, or other attributes.
  • Example: A grocery wholesaler sorts fruits and vegetables based on freshness and quality.
• Bulk Breaking (Allocation & Packing)
  • Large quantities of goods are divided into smaller, consumer-friendly units.
  • Example: A wholesaler receives a bulk supply of packaged biscuits and repacks them into smaller units for retailers.
• Assortment and Variety Building
  • Intermediaries assemble products from different manufacturers to offer a variety in one place.
  • Example: A supermarket stocks different brands of soap, shampoo, and detergents to provide choices for customers.
• Promotion of Products
  • Intermediaries help manufacturers in marketing through in-store displays, discounts, and promotional campaigns.
  • Example: A retailer places promotional banners for a new soft drink or offers discounts on a detergent brand.
• Negotiation and Mediation
  • Intermediaries act as a link between producers and consumers, negotiating prices, terms, and conditions.
  • Example: A wholesaler negotiates with manufacturers to secure better prices for bulk purchases.
• Risk Bearing
  • Since intermediaries store goods until they are sold, they bear risks such as demand fluctuations, price drops, perishability, and damage.
  • Example: A retailer stocking dairy products risks losses if they expire before being sold.

Question 8: Define advertising? What are its main features? Explain.

Answer 8: Advertising is defined as the impersonal method of promotion which is paid by the marketer to promote some goods or services. It is commonly use as the promotional tool of the company. The important features of advertising are as follows:

(i) Paid Form: Advertising is a paid form of communication which means the sponsor has to bear the cost of communication with the prospective buyers.

(ii) Impersonality: There is no direct face to face contact between the prospect and advertiser. It is therefore, referred as the impersonal method of promotion.

(iii) Identified Sponsor: Advertising is undertaken by some identified individual or company, who makes the advertising efforts and also bears the cost of it.

Question 9: Discuss the role of ‘sales promotion’ as an element of promotion mix.

Answer 9: Sales promotion includes those marketing activities other than personal selling, advertising and publicity that stimulate consumer purchasing and dealer effectiveness, such as display, shows and exhibitions, demonstrations and various non-current selling efforts not in the ordinary routine.

The main objectives of sales promotion activities are:
(i) Creation of demand for the product.
(ii) Educating the consumers about new products or new uses of the old product.
(iii) Building the brand loyalty for the product among the consumers.

Question 10: As the marketing manager of a big hotel located at an important tourist destination, what societal concerns would be faced by you and what steps would you plan to take care of these concerns? Discuss.

Answer 10: As a marketing manager of a hotel in a popular tourist city, I will have a certain societal concern

1. Activities of the hotel should not harm the tourist place, should not affect locals, and should not cause any pollution.
2. To maintain ethics and fair pricing of hotel rooms

Steps: We will ensure that the activities of the hotel do not harm the environment and locality, we will have a proper process for waste management, sustainable use of natural resources like water electricity, etc. and will make guests also aware of it.

We will also ensure that our room prices are priced appropriately and we should not take advantage of guests in peak season by pricing rooms inappropriately.

Question 11: What information is generally placed on the package of a food product? Design a label for one of the food products of your choice.

Answer 11: Information Generally Placed on a Food Product Package:

A food product package typically includes the following details:

1. Brand Name & Logo – Identifies the product and manufacturer.
2. Product Name & Description – Specifies the type of food (e.g., “Organic Honey”).
3. Ingredients List – Lists all ingredients in descending order by quantity.
4. Nutritional Information – Provides details on calories, proteins, fats, carbohydrates, etc.
5. Manufacturing & Expiry Date – Indicates production and best-before dates.
6. Net Weight/Quantity – Specifies the amount of product inside.
7. Storage Instructions – Guides consumers on proper storage conditions.
8. Usage Instructions – Explains how to consume or prepare the product.
9. Allergen Warning – Highlights potential allergens (e.g., nuts, dairy).
10. FSSAI/Certification Marks – Ensures product quality and safety compliance.
11. Barcode & Price – For retail scanning and pricing.
12. Manufacturer Details – Name, address, and contact information.

Example Label Design – Organic Honey Jar

🌿 Nature’s Pure Honey
✔️ 100% Organic | No Added Sugar | Raw & Unfiltered

📦 Net Weight: 500g
📅 Best Before: 12 Months from Mfg. Date
🏭 Manufactured By: Nature Foods Pvt. Ltd.
📍 Address: 123, Green Street, New Delhi, India

🍯 Ingredients: Pure Organic Honey
⚠️ Allergen Info: May contain traces of pollen.
🛑 Storage: Keep in a cool, dry place. Do not refrigerate.

🔍 Nutritional Facts (per 100g):

• Energy: 320 kcal
• Carbohydrates: 80g
• Natural Sugars: 78g
• Proteins: 0.3g
• Fats: 0g

✅ FSSAI License No.: 123456789
📞 Customer Care: 1800-XXX-XXXX

📌 Scan the QR Code for Recipes & More!

Question 12: For buyers of consumer durable products, what ‘customer care services’ would you plan as a manager of a firm marketing new brand of motorcycle. Discuss.

Answer 12: Customer care services for the marketing of motorcycles are as follows:

• 1. Support for EMI payments
• 2. Support for an extended warranty on bikes
• 3. Zero finance schemes
• 4. Servicing reminders
• 5. Two-wheeler insurance schemes support

Long Answer Type:

Question 1: What is marketing concept? How does it help in the effective marketing of goods and services.

Answer 1: The marketing concept is a part of marketing management that puts more emphasis on customer satisfaction. It is the belief that customer satisfaction is vital for the success of any business. A business can grow if only it identifies the needs of customers and works towards getting those needs fulfilled.

The business will maximise profits if it is customer-centric. The marketing concept is that people purchase a product to satisfy a need which can be social, psychological etc. Therefore, all the decisions must be taken by the organisation with the customer’s needs in mind.

Marketing concept puts emphasis on the customer, and therefore all the activities related to marketing of goods and services will be targeted towards the customer. As the customer is the focus, the goods or services will be very effectively sold.

Question 2: What is marketing mix? What are its main elements? Explain.

Answer 2: The Marketing Mix is a set of controllable business tools that a company uses to influence consumer purchasing decisions and successfully market its products or services. It helps businesses create the right strategy to meet customer needs and achieve organizational goals.

The traditional marketing mix consists of four key elements:

1. Product
   • Refers to the goods or services offered to customers.
   • Includes product design, quality, features, branding, packaging, and after-sales service.
   • Example: A smartphone brand offering different models with unique features.
2. Price
   • The amount customers pay for the product or service.
   • Includes pricing strategies like penetration pricing, competitive pricing, and discounts.
   • Example: A company offering seasonal discounts on clothing.
3. Place (Distribution)
   • The process of making the product available to customers at the right location.
   • Includes distribution channels like retailers, wholesalers, online platforms, and direct sales.
   • Example: A company selling products through both physical stores and e-commerce websites.
4. Promotion
   • Activities that communicate and promote the product to consumers.
   • Includes advertising, sales promotions, public relations, and personal selling.
   • Example: A brand running TV commercials and social media campaigns to attract customers.

Question 3: How does branding help in creating product differentiation? Does it help in marketing of goods and services? Explain.

Answer 3: Branding helps a firm in distinguishing its products from that of its competitors. This helps the firm to secure and control the market for its products. If products were sold by generic names, it would be very difficult for the marketers to distinguish their products from its competitors.

Thus, most marketers give a name to their product, which helps in identifying and distinguishing their products from the competitors product. This process of giving a name or a sign or a symbol etc., to a product is called Branding.

Question 4: What are the factors affecting determination of the price of a product or service? Explain.

Answer 4: The price of a product or service is influenced by several internal and external factors. These factors determine how a company sets its pricing strategy to achieve profitability and market competitiveness.

1. Internal Factors (Controlled by the Business)

1. Cost of Production
   • Includes raw materials, labor, manufacturing, and overhead costs.
   • Higher costs lead to higher prices to ensure profitability.
2. Business Objectives
   • Pricing depends on whether the goal is profit maximization, market penetration, or cost recovery.
   • Example: A company may set low prices initially to gain market share.
3. Product Features & Quality
   • Premium products with advanced features are priced higher than basic ones.
   • Example: Luxury brands like Rolex charge more due to superior craftsmanship.
4. Marketing and Distribution Expenses
   • Advertising, packaging, and logistics costs impact the final price.
   • Example: Products with heavy promotional campaigns have slightly higher prices.
5. Brand Image & Perceived Value
   • Well-established brands can charge higher prices based on reputation and consumer trust.
   • Example: Apple products are priced higher due to brand value.

2. External Factors (Market-Driven Influences)

6. Market Demand
   • High demand allows higher prices, while low demand forces price reductions.
   • Example: Airline ticket prices increase during peak travel seasons.
7. Competition
   • Prices are influenced by competitors’ pricing strategies.
   • Example: A company may offer discounts if competitors reduce prices.
8. Economic Conditions
   • Inflation, recession, and overall economic health impact pricing decisions.
   • Example: During a recession, companies may reduce prices to attract buyers.
9. Government Regulations & Taxes
   • Laws on price controls, GST, import duties, and subsidies affect pricing.
   • Example: Tobacco products have high taxes, increasing their price.
10. Customer Preferences & Purchasing Power
    • Prices must align with target consumers’ willingness and ability to pay.
    • Example: Luxury cars are priced higher because their target audience has higher income levels.

Question 5: Explain the major activities involved in the physical distribution of products.

Answer 5: The movement of products from the place of production to the place of consumption is called physical distribution. The major activities involved in the physical distribution of products are as follows:

1. Order processing: Order processing consists of steps such as order placement, order transmission, inventory maintenance, goods delivery etc. As such processes are time-consuming, a physical distribution system must ensure proper order processing. Customer satisfaction can be achieved by fast and accurate order processing.

2. Product transportation: Product transportation is the physical movement of goods from the production unit to the consumers.

3. Warehousing: It is the process of storing the goods obtained from manufacturers before being introduced for sale to the customers. Warehouses provide ready stock of goods that can be made available in the market.

4. Inventory maintenance: Inventory is maintained to provide a timely supply of goods; it promotes customer satisfaction. Inventory maintenance is cost intensive; therefore, a firm must find the balance between inventory and customer satisfaction.

Question 6: ‘Expenditure on advertising is a social waste.’ Do you agree? Discuss.

Answer 6: The opponents of advertising say that the expenditure on advertising is a social waste as it adds to the cost, multiplies the needs of the people and undermines social values. The proponents, however argue that the advertising is very useful as it increases the reach, brings the per unit cost of production down and adds to the growth of the economy. Following are the points of criticism:

(i) Adds to Cost: Opponents argue that advertising raises the cost of products, which is passed on to consumers in the form of higher prices. However, advertising helps create demand for products, leading to higher production volumes. This increased demand can result in economies of scale, reducing the per-unit cost of production over time.

(ii) Undermines Social Values: Advertising undermines social values and promotes materialism. It breeds discontentment among people as they come to know about new products and feel dissatisfied with their present state of affairs. Advertisement in fact helps buyer by informing them about the new products which may be improvement over the existing products.

(iii) Confuses Buyers: The large number of similar products in the market often confuses consumers. For example, the abundance of soap, shampoo, or smartphone brands can be overwhelming. However, proponents argue that consumers are rational and make informed decisions based on factors like price and quality, aided by the information in advertisements.

(iv) Encourages Sale of Inferior Product: Advertising does not distinguish between superior and inferior products and persuade people to purchase even the inferiors products. The desired level of quality will depend on the economic states and preferences of the target customers. Advertisements sell products of a given quality and the buyers will buy, if it suits their requirements.

(v) Some Advertisements are in Bad Taste: Another criticism against advertising is that some advertisements are in bad taste. They show something which is not approved by some people. Some advertisements spoil the relationship between employer and employee, husband and wife etc.

From the above discussion, we have learnt that though advertisements are crticised but still they have their own advantages. It is not a social waste, rather it adds value to the social cause by giving a boost to production and generating employment.

Question 7: Distinguish between advertising and personal selling.

Answer 7: Difference Between Advertising and Personal Selling

Aspect	Advertising	Personal Selling
Definition	A form of communication where businesses promote products or services to a large audience through mass media.	A direct, personalized communication method where a salesperson interacts with potential customers to persuade them to purchase.
Nature	Impersonal and one-way communication.	Personal and two-way communication.
Target Audience	Large, broad audience (e.g., television, radio, online ads).	Individual or small group of potential customers.
Cost	Typically involves high fixed costs for media placement (e.g., TV ads, online banners).	Generally, higher variable costs due to individual salesperson compensation (commissions, salaries).
Message Delivery	Standardized message sent to many people simultaneously.	Customized message tailored to each customer’s needs.
Control	Limited control over how the message is received or interpreted by the audience.	High control as the salesperson can respond to questions and adjust the message during the interaction.
Interaction	No direct interaction with the audience.	Direct interaction and personal communication.
Time Frame	Can have both short-term and long-term effects, often ongoing.	Typically, immediate and short-term (e.g., during a sales pitch).
Examples	TV commercials, billboards, social media ads.	One-on-one sales meetings, phone calls, in-store selling.

Question 8: Explain the factors determining the choice of channel of distribution.

Answer 8: The choice of channels depend on various factors, which are discussed as follows:

(i) Product Related Factors: The important product related considerations is deciding the channels. It includes whether the ‘ product is an industrial product or a consumer product. Industrial product require shorter channel and consumer products require longer channel.

(ii) Company Characteristics: The important company characteristics affecting the choice of channels of distribution include the financial strength of the company and the degree of control it wants to hold on other channel member. Direct selling involves lot of foods to be invested in fixed assets say starting own retail outlets or engaging large number of sales force. Similarly if the management want to have greater control on the channel number, short channels are used but if the management do not want more control over the middlemen, it can go in for longer channel or large number of intermediaries.

(iii) Competitive Factors: The choice of channel is also affected by what the competitor has selected as its channel. Sometimes, firm may decide to go for the same channel and sometimes absolutely opposite.

(iv) Market Factors: Important market factors affecting the choice of channel of distribution include size of market, geographical concentration of potential buyers and quantity purchased.

(v) Environmental Factors: Sometimes environmental factors also helps in deciding the channel of distribution, e.g., in a depressed economy, marketers use shorter channels to distribute their goods in an economical way