This page contains the NCERT Business Studies class 12 chapter 10 Marketing from Part 2 Business Finance and Marketing. You can find the solutions for the chapter 10 of NCERT class 12 Business Studies, for the Short Answer Questions, Long Answer Questions and Projects/Assignments Questions in this page. So is the case if you are looking for NCERT class 12 Business Studies related topic Marketing question and answers.
Very Short Answer Type
1. State any two advantages of branding to marketers of goods and services?
The following are two advantages of branding to marketers of goods and services.
1.
Product Differentiation: Branding helps in creating product differentiation, i.e., providing a basis for distinguishing the product of a firm from that of the competitor. This differentiation aids in building customer loyalty and promoting sales.
2.
Legal Protection: A brand or part of a brand that is given legal protection is called a trademark. This protection is provided against its use by other firms, ensuring that the firm which got its brand registered gets the exclusive right for its use. This prevents other firms from using such a name or mark in the country.
2. How does branding help in differential pricing?
Branding allows companies to differentiate their products from competitors, enabling them to set different prices based on the perceived value and brand equity of their products.
3. What is the societal concept of marketing?
The societal concept of marketing holds that the task of any organization is to identify the needs and wants of the target market and deliver the desired satisfaction in an effective and efficient manner so that the long-term well-being of the consumers and the society is taken care of. It emphasizes not only customer satisfaction but also the social, ethical, and ecological aspects of marketing, ensuring the long-term welfare of society.
4. Enlist the advantages of packaging of consumer products.
The advantages of packaging of consumer products are enlisted below:
1.
Product Identification: Packaging greatly helps in the identification of products. For instance, specific colors or designs can make a product instantly recognizable.
2.
Product Protection: Packaging ensures that the product is protected from spoilage, breakage, leakage, pilferage, damage, and climatic effects during storage, distribution, and transportation.
3.
Facilitating Use of the Product: Good packaging design ensures that the product is easy to open, handle, and use for consumers.
4.
Product Promotion: Packaging can be used as a promotional tool. Eye-catching designs, colors, or typography can attract attention and influence purchase decisions.
5. List five shopping products purchased by you or your family during the last few months.
The following is the list five shopping products purchased by me or my family during the last few months.
1.
Clothes
2.
Shoes
3.
Jewellery
4.
Furniture
5.
Television
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.)
The function of marketing being discussed is Marketing planning.
Short Answer Type
1. What is marketing? What functions does it perform in the process of exchange of goods and services? Explain.
Marketing is a social process wherein people interact with others to persuade them to act in a particular way, such as purchasing a product or service, rather than forcing them to do so. It involves a set of activities that facilitate the exchange of products and services between buyers and sellers. The primary functions of marketing in the process of exchange include:
1.
Gathering and Analysing Market Information: This involves identifying the needs of customers and analyzing market trends to make informed decisions for successful marketing.
2.
Creating a Market Offering: Marketers develop a complete offer for a product or service based on the needs and preferences of potential buyers.
3.
Customer Value: Marketing facilitates the exchange of products and services based on the perceived value by the customers. A product will be purchased if it offers the greatest benefit for its price.
4.
Exchange Mechanism: Marketing operates through an exchange mechanism where individuals obtain what they need and want. This process involves both buyers and sellers coming together to facilitate the exchange.
2. Distinguish between the product concept and production concept of marketing.
The product concept and production concept of marketing are distinguished below:
Basis of Comparison
Product Concept
Production Concept
Starting Point
Factory
Factory
Main Focus
Quality, performance, features of the product
Quantity of the product
Means
Product improvements
Availability and affordability of the product
Ends
Profit through product quality
Profit through volume of production
3. Product is a bundle of utilities. Explain.
Product is a bundle of various utilities as specified below. The explanation of each of this utilities is also providied.
Aspect
Explanation
Definition
A product, from the customer’s perspective, is a collection of utilities or benefits that satisfy their needs.
Types of Benefits
Products can offer functional, psychological, and social benefits.
Functional Benefits
These relate to the core purpose of the product, like transportation for a motorcycle.
Psychological Benefits
Products can offer a sense of prestige or esteem, enhancing the buyer’s self-worth.
Social Benefits
Products can provide acceptance or recognition in a social group, like the status associated with riding a specific brand of motorcycle.
4. What are industrial products? How are they different from consumer products? Explain.
Industrial products are those products used as inputs in producing other products. Examples include raw materials, engines, lubricants, machines, and tools. These products are meant for non-personal and business use, primarily for producing other products. The market for industrial products consists of manufacturers, transport agencies, banks, and other businesses.
In contrast, consumer products are purchased by the ultimate consumers or users for satisfying their personal needs and desires, such as soap, toothpaste, and clothes. They are meant for personal and non-business use.
The industrial products and consumer products are distinguished as below:
Basis of Comparison
Industrial Products
Consumer Products
Purpose
Used as inputs in producing other products.
Purchased for personal use and satisfaction.
Target Market
Manufacturers, transport agencies, banks, and other businesses.
Ultimate consumers or end-users.
Usage
Non-personal and business use, primarily for producing other products.
Personal and non-business use.
Purchase Frequency
Often bought in bulk and less frequently, based on production needs.
Can be bought frequently, depending on the nature of the product (e.g., daily for food items, occasionally for clothes).
Buying Decision
Based on technical specifications, bulk pricing, and long-term relationships.
Based on personal preferences, brand loyalty, and immediate needs.
Examples
Raw materials, engines, lubricants, machines, tools.
Soap, toothpaste, clothes, shoes, food items.
5. Distinguish between convenience product and shopping product.
Convenience products and shopping products are distinguished specified below:
Basis of Comparison
Convenience Product
Shopping Product
Purchase Frequency
Purchased frequently and immediately.
Purchased less frequently, with considerable time spent on comparison.
Effort in Purchase
Requires least time and effort.
Buyers devote considerable time to compare quality, price, style, suitability, etc., before buying.
Value
Low unit-value and bought in small quantities.
Higher value, and buyers often compare different options before making a purchase.
Examples
Cigarettes, ice creams, medicines, newspaper, stationery items, toothpaste.
Clothes, shoes, jewellery, furniture, radio, television.
6. Describe the functions of labeling in the marketing of products.
The following are the functions of labeling in the marketing of products.
1.
Describe the Product and Specify its Contents: Labels provide detailed information about the product, its contents, method of use, and other relevant details.
2.
Identification of the Product or Brand: Labels help in identifying the product or brand, showcasing the brand name, manufacturer’s details, and other identification information.
3.
Grading of Products: Labels assist in grading products into different categories, indicating different features or quality levels.
4.
Helps in Promotion of Products: Labels can contain promotional messages that attract attention and influence purchase decisions.
5.
Providing Information Required by Law: Labels provide essential information mandated by law, such as ingredients, manufacturing date, safety warnings, and more.
7. Discuss the role of intermediaries in the distribution of consumer non-durable products.
The role of intermediaries in the distribution of consumer non-durable products is discussed below:
1.
Making Products Available: Intermediaries ensure that non-durable products are available to consumers at the right place and right time.
2.
Inventory Management: They maintain adequate stock levels, ensuring that products are available even when there’s a gap between production and consumption.
3.
Wide Reach: Intermediaries help in distributing products to a wide geographical area, reaching out to various retail outlets.
4.
Promotion and Support: They often undertake promotional activities, offer discounts, and provide support to both manufacturers and consumers.
8. Define advertising? What are its main features? Explain.
Advertising: Advertising is a paid form of communication where an identified sponsor promotes ideas, goods, or services to a target audience.
The following are the main features of advertising:
1.
Paid Form: Advertising is a paid medium, meaning the sponsor bears the cost of communicating with potential customers.
2.
Impersonality: Advertising is impersonal, lacking direct face-to-face contact between the advertiser and the audience. It creates a monologue rather than a dialogue.
3.
Identified Sponsor: Every advertisement has an identified sponsor or advertiser who undertakes the advertising effort and bears its cost.
4.
Expressiveness: With advancements in art, graphics, and technology, advertising can be highly expressive, making even simple products appear attractive.
5.
Mass Reach: Advertising can reach a large number of people across vast geographical areas, making it effective for mass communication.
9. Discuss the role of ‘sales promotion’ as an element of promotion mix.
Sales promotion refers to short-term incentives designed to encourage the immediate purchase of a product or service. These incentives complement other promotional tools such as advertising and personal selling, enhancing their overall effectiveness. Sales promotion activities, due to their incentive nature, grab the attention of potential buyers. They are particularly effective during the introduction of a new product in the market, as they induce people to try the new offering and break away from their regular buying behavior.
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.
As the marketing manager of a hotel in a tourist destination, I’d face societal concerns like environmental degradation, cultural insensitivity, economic disparities, and overcrowding. To address these, I’d implement sustainable hotel practices, organize cultural awareness programs for tourists, collaborate with local businesses to ensure shared economic benefits, and work with local authorities to improve infrastructure.
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.
Food product packages typically display the product description, ingredients, manufacturer details, net weight, manufacturing date, maximum retail price, batch number, and vegetarian or non-vegetarian status.
Label for “Organic Almond Butter”:
–
Name: Organic Almond Butter
–
Ingredients: 100% Organic Almonds
–
Weight: 250g
–
Price: ₹500
–
Manufacturer: Healthy Foods Pvt. Ltd.
–
Vegetarian Symbol: [Green dot]
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.
As a manager marketing a new brand of motorcycle, the following customer care services would be essential:
1.
After-Sales Services: Offering regular servicing, maintenance checks, and timely repairs to ensure the motorcycle remains in optimal condition.
2.
Handling Customer Complaints: Establishing a responsive helpline and service centers to address any issues or complaints promptly.
3.
Warranty and Guarantees: Providing a comprehensive warranty on the motorcycle, covering major parts and services.
4.
Technical Services: Offering technical support for any complexities related to the motorcycle’s operation or features.
5.
Consumer Information: Providing detailed manuals, online resources, and tutorials to educate consumers about the motorcycle’s features, safety precautions, and best practices.
Long Answer Type
1. What is marketing concept? How does it help in the effective marketing ofgoods and services.
The marketing concept is an orientation that believes the key to achieving organizational goals lies in identifying and satisfying the needs and wants of target customers. It emphasizes the importance of understanding and responding to customer needs as the primary focus of all business activities.
The marketing concept aids in the effective marketing of goods and services in the following ways:
1.
Customer-Centric Approach: It ensures that products and services are designed based on customer preferences, ensuring higher acceptance in the market.
2.
Building Long-Term Relationships: By prioritizing customer satisfaction, businesses can foster long-term relationships, leading to repeat purchases and brand loyalty.
3.
Enhanced Promotion: Products and services are promoted in ways that resonate with the target audience, ensuring better reach and impact.
4.
Competitive Edge: By consistently meeting and exceeding customer expectations, businesses can achieve a competitive advantage in the market.
5.
Sustainable Success: Prioritizing customer needs and wants ensures sustainable growth and profitability for businesses.
2. What is marketing mix? What are its main elements? Explain.
The marketing mix refers to the combination of strategies and tactics a company uses to promote and sell its products or services. It is a foundational concept in marketing that ensures the right product is marketed in the right place, at the right price, and with the right promotion strategy.
The main elements of the marketing mix, often referred to as the “Four Ps” are:
1.
Product: This pertains to what the company offers to its target market. It includes decisions related to product design, features, branding, packaging, and labeling. The product should meet the needs and wants of the target customers.
2.
Price: This relates to the pricing strategy for the product. It involves decisions about setting the price level, offering discounts, credit terms, and other pricing-related factors. The price should reflect the perceived value of the product to the customers and be competitive in the market.
3.
Place: This involves decisions about the distribution channels through which the product will be made available to the customers. It includes selecting the right intermediaries, retailers, and distribution strategies to ensure the product reaches its intended audience.
4.
Promotion: This encompasses the various strategies used to promote the product. It includes advertising, personal selling, sales promotion, and public relations. The promotion strategy should effectively communicate the product’s features and benefits to the target audience.
By effectively blending these four elements, companies can ensure that their products reach their target audience in the most efficient and effective manner, leading to increased sales and brand loyalty.
3. How does branding help in creating product differentiation? Does it help in marketing of goods and services? Explain.
Branding is the process of giving a name, symbol, or design to a product, which helps in distinguishing it from the products of competitors. It plays a pivotal role in creating product differentiation in the following ways:
1.
Unique Identity: Branding provides a unique identity to a product, making it distinct from other similar products in the market. For example, while there are numerous cola drinks, brands like “Coca-Cola” or “Pepsi” stand out due to their distinct branding.
2.
Perceived Value: A strong brand often adds to the perceived value of a product. Customers may perceive branded products as being of higher quality or more reliable than unbranded or lesser-known branded products.
3.
Emotional Connection: Brands often resonate with customers on an emotional level. Successful branding can evoke feelings of trust, loyalty, and nostalgia among consumers.
4.
Consistency: Branding ensures consistency across all touchpoints. Customers know what to expect when they purchase a branded product, leading to increased trust and loyalty.
In terms of marketing goods and services, branding is immensely beneficial:
1.
Customer Loyalty: A strong brand often leads to customer loyalty, ensuring repeat purchases and reducing the cost of acquiring new customers.
2.
Competitive Advantage: Branding provides a competitive edge in the market. A strong brand can command higher prices and ensure higher sales volumes.
3.
Easier Introduction of New Products: Established brands find it easier to introduce new products under the same brand umbrella, leveraging the existing brand equity.
4.
Effective Promotion: Branded products can be promoted more effectively, as the promotional efforts leverage the brand’s existing reputation and recognition.
In conclusion, branding is crucial for creating product differentiation and plays a significant role in the successful marketing of goods and services, ensuring long-term business success.
4. What are the factors affecting determination of the price of a product or service? Explain.
The determination of the price of a product or service is influenced by a multitude of factors. Some of the key factors are:
1.
Product Cost: The cost of producing, distributing, and selling the product sets the minimum level or the floor price at which the product may be sold. In the long run, a firm needs to cover all its costs and aim for a profit margin. There are different types of costs involved, such as fixed costs, variable costs, and semi-variable costs.
2.
Utility and Demand: The utility provided by the product and the intensity of its demand set the upper limit of the price. The price should reflect the perceived utility of the product to the consumer. According to the law of demand, a lower price generally attracts more buyers than a higher price.
3.
Extent of Competition in the Market: The nature and degree of competition influence where the price settles between its upper and lower limits. The prices of competitors and the quality of their products must be considered. In a highly competitive market, the price tends to be set at a lower level.
4.
Government and Legal Regulations: The government can intervene to regulate the price of commodities, especially if they are deemed essential. This is done to protect the public against unfair pricing practices.
5.
Pricing Objectives: The objectives behind pricing, whether it’s to penetrate a new market, achieve a certain market share, or maximize profits, play a significant role in determining the price.
6.
Marketing Methods Used: The price is also influenced by other elements of marketing such as distribution systems, quality of sales personnel, advertising quality and quantity, sales promotion efforts, packaging, product differentiation, credit facilities, and customer services provided.
In conclusion, pricing is a complex process influenced by both internal and external factors. An effective pricing strategy considers all these factors to ensure that the product is priced optimally in the market, balancing both profitability for the company and value for the customers.
5. Explain the major activities involved in the physical distribution of products.
Physical distribution is a crucial component of the marketing mix that encompasses all activities required to physically move goods from manufacturers to customers. The main objective is to ensure that products are available at the right place, in the right quantity, and at the right time. The major activities involved in the physical distribution of products are:
1.
Order Processing: This is the initial step in a typical buyer-seller relationship. Once an order is placed by the customer, it needs to be processed accurately and swiftly by the seller. Efficient order processing ensures that the goods reach the customers as per the specified quantity and specifications, leading to customer satisfaction.
2.
Transportation: Transportation involves the physical movement of goods from the production site to the place where customers need them. It’s essential to choose the right mode of transportation based on the nature of the product, cost considerations, and the location of the target market. Efficient transportation ensures timely delivery and reduced costs.
3.
Warehousing: Warehousing pertains to the storage of products until they are needed in the market. It’s essential for products that have a gap between their production time and consumption time. Efficient warehousing ensures that products are stored under optimal conditions, reducing wastage and ensuring availability when needed.
4.
Inventory Control: This involves managing the levels of stock of goods. Effective inventory control ensures that there is neither an excess nor a shortage of products in the warehouse. It helps in reducing storage costs and ensures product availability.
5.
Material Handling: This refers to the movement of products within the warehouse or between different transportation vehicles. Efficient material handling reduces damages and ensures that products are loaded and unloaded efficiently.
In conclusion, an effective physical distribution system ensures that products are available where and when they are needed, leading to increased customer satisfaction and reduced costs for the company.
6. ‘Expenditure on advertising is a social waste.’ Do you agree? Discuss.
The statement that expenditure on advertising is a social waste has been a topic of debate for many years. Let’s discuss the various perspectives on this issue:
Arguments in Favor of the Statement (Criticism of Advertising):
1.
Adds to Cost: Critics argue that advertising unnecessarily adds to the cost of a product. Advertising campaigns, especially those on TV or in print media, can be expensive. This cost is often passed on to consumers in the form of higher prices.
2.
Undermines Social Values: Advertising is sometimes said to promote materialism and can breed discontent among people. Some advertisements showcase lifestyles or values that may not align with societal norms or could lead to unrealistic expectations and desires.
3.
Confuses the Buyers: With multiple products being advertised with similar claims, buyers can get confused. For instance, multiple detergent brands might claim superior stain-removing abilities, making it challenging for consumers to make an informed choice.
4.
Encourages Sale of Inferior Products: Advertising does not necessarily distinguish between superior and inferior products. An effective advertisement can persuade people to buy even inferior products.
Arguments Against the Statement (Merits of Advertising):
1.
Mass Reach: Advertising allows companies to reach a large number of people over vast geographical areas. This wide reach can lead to economies of scale, reducing the per-unit cost of products.
2.
Enhancing Customer Satisfaction and Confidence: Well-executed advertising can create confidence among prospective buyers. It can assure them of product quality, leading to increased satisfaction.
3.
Expressiveness: Modern advertising, with advancements in graphics and design, can make even simple products look attractive, thereby enhancing their appeal.
4.
Economy: While advertising is an expenditure, it can be economical in the long run. By reaching a vast audience, the per-unit cost of reaching each individual can be low.
5.
Informative Role: Advertising informs potential customers about new products, their features, and benefits. It educates the market, leading to informed purchasing decisions.
In conclusion, while there are valid criticisms of advertising, it plays a crucial role in the modern market system. It’s essential to strike a balance, ensuring that advertising is done ethically and responsibly, providing genuine information to consumers without misleading them.
7. Distinguish between advertising and personal selling.
Advertising and personal selling are distinguished as specified below:
Basis of Distinction
Advertising
Personal Selling
Nature
Impersonal form of communication.
Personal form of communication.
Message
Transmission of standardized messages to all.
Sales talk is adjusted to customer’s needs.
Flexibility
Inflexible; can’t adjust to individual needs.
Highly flexible; can adjust the message.
Reach
Reaches masses; large number of people.
Limited reach; contacts a limited number of people.
Cost
Low cost per person reached.
High cost per person contacted.
Time
Can cover the market in a short time.
Takes longer to cover the entire market.
Medium
Uses mass media like TV, radio, newspapers.
Uses sales staff with limited reach.
Feedback
Lacks direct feedback; needs market research.
Provides direct and immediate feedback.
8. Explain the factors determining the choice of channel of distribution.
The choice of the channel of distribution is a crucial decision in the marketing process, and it is determined by various factors:
1.
Nature of the Product: Perishable products like fruits and dairy products might require shorter channels or direct marketing, while durable goods can afford longer channels.
2.
Market Considerations: If the market is geographically concentrated, direct selling might be more feasible. In contrast, a widely dispersed market might require the services of intermediaries.
3.
Company Objectives: A company aiming for rapid market penetration might prefer a longer channel with more intermediaries to ensure wider market coverage.
4.
Cost Considerations: The financial strength of the company can influence the choice. A company with more resources might establish its own retail outlets, while others might rely on intermediaries.
5.
Environmental Factors: Economic conditions, political stability, and other environmental factors can influence the choice of distribution channels.
6.
Intermediary Consideration: The reputation, financial strength, and efficiency of available intermediaries play a significant role in the decision-making process.
7.
Product Complexity: Technical products requiring demonstration, installation, or after-sales service might be better sold directly or through specialized dealers.
8.
Customer Buying Habits: If customers are accustomed to buying a particular product from certain outlets, it makes sense to use those outlets as distribution channels.
9.
Degree of Control: Companies desiring greater control over the distribution of their products might prefer shorter channels or even direct marketing.
10.
Availability of Intermediaries: The presence or absence of suitable intermediaries in the desired market area can influence the choice.
In conclusion, the choice of distribution channel is influenced by a combination of product, company, market, and environmental factors. An effective distribution strategy considers all these factors to ensure that the product reaches the target market efficiently and effectively.
Project Work
Identify a product or service for a new launch for attracting potential consumers for your product. Prepare a project file to—
(a)
Advertise the product or service selected.
(b)
Write a Press Release for the launch of new product or service.
(c)
Publicity of your product as a PR tool.
Project Work: Launch of a New Product
Product Selected: Eco-Friendly Reusable Water Bottle with Built-in UV-C Sterilization
A. Advertisement for the Product
Headline:
“Stay Hydrated, Stay Safe: Introducing the Future of Water Bottles!”
Visual:
A sleek, modern-looking water bottle with a UV light glowing from the cap. Background shows a park setting with people jogging, indicating outdoor use.
Body Copy:
“Experience the perfect blend of sustainability and safety with our new Eco-Friendly Reusable Water Bottle. Not just any bottle – it comes with built-in UV-C sterilization, ensuring every sip you take is from pure, germ-free water. Join the revolution and make single-use plastics a thing of the past. Stay eco-friendly, stay hydrated, and most importantly, stay safe.”
Call to Action:
“Pre-order now and get 20% off your first purchase!”
B. Press Release for the Launch
FOR IMMEDIATE RELEASE
Introducing the Eco-Friendly Reusable Water Bottle with UV-C Sterilization – A Leap Towards Sustainable Living
[City, Date] – In a bid to promote sustainable living and ensure health safety, [Company Name] is thrilled to announce the launch of its innovative product – the Eco-Friendly Reusable Water Bottle with built-in UV-C Sterilization.
This state-of-the-art water bottle is designed for the environmentally conscious consumer who doesn’t compromise on health. The built-in UV-C sterilization ensures that the water is free from harmful germs and bacteria, providing pure water with every sip.
“[Company CEO/Spokesperson Quote]” – “We believe in a world where sustainability and health go hand in hand. Our new product is a testament to this vision, and we’re excited to share it with the world.”
The product will be available for pre-order from [Date] on our official website and selected retail partners.
For media inquiries, please contact:
[PR Contact Name]
[Email]
[Phone Number]
C. Publicity of the Product as a PR Tool
1.
Influencer Collaborations: Partner with eco-conscious influencers and celebrities to showcase the product. They can share their experience using the bottle, emphasizing its eco-friendliness and health benefits.
2.
Sponsorship: Sponsor eco-friendly events or marathons, providing participants with the water bottle. This not only promotes the product but also emphasizes the brand’s commitment to sustainability.
3.
Workshops: Organize workshops on sustainable living and the importance of hydration. Use these platforms to introduce the product and its unique features.
4.
Customer Testimonials: Share testimonials and reviews from early users on social media platforms, emphasizing the product’s dual benefits.
5.
Environmental Impact Reports: Publish reports on the potential reduction of plastic waste if a significant number of people switch to using the reusable water bottle.
6.
Engage with Eco-Friendly Communities: Engage with online communities and forums dedicated to sustainable living, introducing them to the product and its benefits.
By leveraging these PR tools, the product can gain significant traction among the target audience, emphasizing its unique selling points and the brand’s commitment to a sustainable future.
