Important Questions for CBSE Class 12 Business Studies Chapter 10 - Marketing

Very Short Answer Questions                               (1 or 2 Mark Questions)

1. A TV manufacturing company is spending a substantial amount of money to persuade the target customers to buy its T.V. sets through advertisements, personal selling and sales promotion techniques. Identify the element of the marketing mix referred here. 

Ans: Promotional mix is a term that refers to a combination of promotions.

2. From producer to retailer to consumer identify the type of channel of distribution.

Ans: Channel with only one level.

3. Why is "Marketing'' called a social process?                                      

Ans: Because today's organisations work according to the requirements and wishes of their target market, marketing is referred to as a social process. A corporation that adopts the societal notion must strike a balance between profitability, customer pleasure, and the interests of society.

4. Name the concept of marketing which pays attention to the Social, Ethical and ecological aspects of marketing along with consumer satisfaction.

Ans: Marketing as a societal idea.

5. How does labeling act as a silent Salesman?

Ans: Labeling functions as a quiet salesman since it aids in product promotion by drawing clients' attention and delivering necessary information.

6. Name the marketing function which is concerned with the important decision of managing inventory.

Ans: The 'Physical Distribution' marketing function is associated with the crucial choice of inventory management.

7. Name the function of marketing which is concerned with the cost and location of the target market.  

Ans: The function "transportation" is concerned with the target market's cost and location.

8. Name the marketing function which is concerned with informing the customers about the firm's products.                                               

Ans: The marketing function of promotion is focused on alerting clients about a company's products.

9. Sunita took her niece, Aishwarya for shopping to 'Benetton' to buy her a dress on the occasion of her birthday. She was delighted when on payment for the dress she got a discount voucher to get 20% off for a meal of Rs 500 or above at a famous eating joint. Identify the technique of sales promotion used by the company in the above situation.                                                         

Ans: The company's sales marketing strategy is called Usable Benefits.

10. Mansi took her niece, Ridhima, shopping to 'Mega Stores' to buy her a bag for her birthday. She was delighted when on payment of the bag she got a pencil box along with the bag free of cost. Identify the technique of sales promotion used by the company.

Ans: The technique of sales promotion being used by the company is 'Product Combination".

Short Answer Questions (3 or 4 Marks Questions)

11. Ajay was appointed as a marketing head of "Alfa Enterprise' manufacturers of toothpaste and toothbrushes. His target sale was 2,000 units a month. Apart from thinking about various channels of distribution to achieve the target he himself started visiting schools in backward areas. He found that even after taking various steps and counselling, some school children had not started brushing their teeth. He investigated and found that they could not afford to buy toothbrushes and toothpaste. So with due permission he started donating 200 toothbrushes and toothpastes every month to the school.

i. Identify the channel of distribution Ajay would adopt for distribution of toothpaste and toothbrushes and justify it by giving one reason.

Ans. 

i. Ajay should use the zero-level distribution route. This is due to the fact that he may directly market things to schoolchildren and establish a direct relationship with them.

ii. State any two values which Ajay wants to communicate to the society. 

Ans: Ajay wants to instil the following values in society:

a. Instilling sanitary and healthful practises in schoolchildren

b. Fulfillment of a company's social obligation.

12."Though branding adds to the cost, it provides several advantages to the consumers", In the light of the statement, state any three advantages of branding to customers. 

Ans: Advantages of branding to customers:

• Assists Customers in Product Identification: Assists customers in recognising products.

• Assures Product Quality: Assures product quality.

• Status Symbol: brands become status symbols because of their quality Eg: Benz cars

13. There are some characteristics that should be kept in mind while choosing a brand name. Explain any two such characteristics that a good brand name should have.

Ans: Characteristics to consider while selecting a good brand name include:

i. It's short, simple to say, spell, recognise, and remember.

ii. Mention the product's advantages and features.

iii. Stand out from the competition

iv. Adaptable to diverse packaging or labelling needs, as well as different advertising media and languages.

v. Versatile, allowing for the addition of additional items.

vi. Legally registered and protected.

14. Diksha Ltd. was marketing 'Dish-Washers' which were very popular due to their quality and after-sale services provided to the customers. The company was a leading company in the market and earning huge profits. Because of huge profits the company ignored its after-sale services. As a result its relations with the customers got spoiled and the image of the company was damaged in the eyes of the public. Top management became concerned when the profits for the current quarter fell steeply. On analysis it was revealed that ignoring after-sale services was the reason. Therefore, the company took all possible measures to protect and promote its image. As a result the goodwill of the company improved in the society.

(a) Name and state the communication tool used by the marketer in the above case to improve its images.

Ans: The marketer's communication technique for improving its image is "public relations." It refers to the activities carried out by a firm in order to promote and defend the image of the company or product. Its goal is to improve the organization's relationships with its stakeholders.

(b) Also explain the role of the tool as identified in part(a).

Ans: The importance of public relations is highlighted in the following aspects.

1. Developing public relations aids an organization's seamless operation and achievement of its goals.

2. Public relations aids the organisation in generating interest in its existing offerings among customers. This also aids the company in establishing a consumer base for its new items.

3. It helps to create a positive image for a company's products. In addition, a corporation that has received negative news may use public relations to improve its image and reputation.

4. Promotion through advertising is supplemented by public relations.

15. Your company has set up a food processing unit in Kashmir with a production capacity of 10,000 litres of apple juice per day. The company plans to market the apple juice in tetra packs of 100 milliliters. Design a label for the same. 

Ans: In any Form, The Following Information must be Included on the label.

The product's name is Real Apple Juice, and the manufacturer's name is Fine Juice Ltd.

54, Chandni Chowk, Chandni Chowk, Chandni Chowk, Chandni Chowk, Chan

200ml / net weight when packed

Date of manufacture: July 20, 2015

Expiration date: December 2nd, 2015

MRP (maximum retail price)/ 30

D 4567/Batch number

To be consumed within 3 days of opening, follow the directions on the package.

Juice concentrate, sugar, and preservatives are among the ingredients.

16. Ginika, Tanish and Rohit were friends from college days and now they are doing different kinds of business. They regularly meet and discuss their business ideas and exchange notes on customer satisfaction, marketing efforts, product designing, selling techniques, social concerns etc.

In one of such meetings, Ginika drew the attention of Tanish and Rohit towards the exploitation of consumers. She said that most of the sellers were exploiting the consumers in various ways and were not paying attention towards the social, ethical and ecological aspects of marketing. whereas she was not doing so. Tanish said that they were under pressure to satisfy the consumers, but stated that the consumers would not buy or not buy enough unless they were adequately convinced and motivated for the same. Rohit stressed that a company cannot achieve its objectives without understanding the needs of the customers. It was the duty of the businessmen to keep consumer satisfaction in mind because business is run by the resources made available to them by the society. He further stated that he himself was taking into consideration the needs of the customers. Identify the various types of thinking that guided Ginika, Tanish and Rohit in the making efforts of their business. Also, state one more feature of the various types of thinking identified that is not given in the above para.                                                                      

Ans: Ginika's thought process is based on the Societal Marketing Concept. Businesses should consider not only the target market's immediate needs, but also their long-term well-being and interests, according to this philosophy.

Feature: This way of thinking emphasises the necessity of the organisation paying attention to social and environmental issues such as pollution, deforestation, population explosion, and inflation.

Tanish's thought process is based on the Selling concept. According to this theory, a consumer will only buy a product if he is sufficiently convinced of its features, quality, and other attributes.

Feature: This way of thinking highlights the importance of organisations focusing on strict selling and advertising strategies in order to enhance product sales.

Rohit's way of thinking is based on the marketing philosophy. Customer pleasure, according to the marketing notion, is critical to any company's long-term success. In this case, businesses must focus on understanding and addressing customers' demands in a timely and efficient manner. Feature: This way of thinking emphasises that a company should not only work for customer pleasure on its own, but also strive to satisfy customers better than its competitors.

17. Crackers Ltd., a firecracker-manufacturing company, launched some new products on the eve of Diwali, which attracted many buyers. To meet the increased demand, the company employed children from nearby villages. Although the product was in great demand, appropriate safety warnings for use were not mentioned on the packets that led to many accidents.

(i) Identify and explain the important product-related decision that was not taken into consideration by the company.

Ans:  Labeling refers to delivering product information in the form of a tag and graphic on the product's package. It explains the product and specifies its components, as well as other essential information like the precautions to be taken when using it and how to utilise it. The manufacturer failed to provide adequate instructions on how to use crackers, which could result in mishaps.

(ii) Also, identify any two values that were violated by the company. 

Ans:  The company's values were violated in the following ways:

(a) Employing children, which is against the child labour law, and

(b) Not protecting the safety of consumers.

Long Answer Questions                                    (5 or 6 Marks Questions)

18. There are a number of factors which affect the fixation of the price of a product. Explain any four such factors.                                                            

Ans: The following are the primary elements that influence price determination: 

Product Cost: The cost of a product is the most essential element influencing its pricing. The total of fixed, variable, and semi-variable expenses incurred throughout the manufacture, distribution, and sale of a product is referred to as the product cost. Fixed costs are those that do not change at any point throughout manufacturing or sales. For example, building rent, salary, and so forth. Costs that are directly connected to production or sales levels are referred to as variable costs. For example, raw material expenses, labour costs, and so on. Semi variable costs are those that fluctuate in direct proportion to the amount of activity but not in a direct proportion to the level of activity.

Utility and Demand: When a product's price is low, consumers typically desire more units of that product, and vice versa. When demand for a product is elastic, however, a little change in price might result in significant changes in the quantity requested. In the situation of inelastic demand, a change in pricing has little impact on demand. Inelastic demand allows a company to charge larger profits. Furthermore, the customer is willing to spend up to the point where he believes the product's utility is at least equivalent to the price paid. As a result, a product's price is influenced by both its utility and demand.

Government and Legal Regulations: Monopolistic businesses in the market generally charge a premium price for their goods. In order to safeguard the public's interests, the government intervenes and regulates commodity pricing. For this reason, it defines some items as vital products, such as life-saving medications. 

Marketing Techniques Employed: The price of a product is also affected by different marketing strategies such as distribution system, salesperson quality, promotion, kind of packaging, customer service, and so on. For example, if a company uses expensive material to package their goods, it would charge a premium.

19. Mediquip Ltd. is a company dealing in distribution of medical equipment. The company recently imported 15000 units of sugar testing machines to test the sugar levels without taking blood samples. For deciding the marketing strategy, the Chief Executive Officer of the company called a meeting of the marketing heads of different zones.In the meeting, Sandeep, the North Zone Marketing Head, suggested that since the machines were sophisticated they need to visit hospitals personally, explain its working to the hospital staff who would be using the machines. He also suggested that additional trained people may be recruited for the same. Himanshu, another Zonal Head, added that since a lot of money had been spent on the import of the machines, the company was short of funds to pay to the additional staff as suggested by Sandeep. Rahul, a newly appointed Zonal Head of South Zone suggested that since the size of the order is not large, a detailed study of the factors determining the choice of channels of distribution is required before making the right choice.

(a) Identify the factor influencing the choice of channels of distribution which were discussed in the meeting.

Ans: The following are the three factors that influence the choice of distribution channels in the given question:

1. Factors related to the product (as the machinery is sophisticated)

2. Features of the business (as the company do not have enough funds to pay for more employees)

3. Aspects of the market (as the size of the order is not large)

(b) Also, explain briefly the other consideration to be taken care of in each factor identified in part (a).                                                                                     

Ans: Other factors to examine in the circumstances are:

1. Product-related factors: The classification or kind of a product has a significant impact on the channel of distribution that is chosen. It is critical to determine whether the product is perishable or non-perishable, whether it is an industrial or consumer product, and the product's degree of complexity. For example, if a product is complex or sophisticated in nature, it will necessitate shorter distribution channels and cautious handling.

2. Company attributes: A company's qualities play a vital influence in determining which distribution channel to use. The distribution channels that a corporation chooses are influenced by its financial strength and the level of control it seeks over intermediaries. Keeping the first in mind, a company that is financially sound and has extra cash to spend would choose a shorter distribution channel. This is because the shorter distribution routes often necessitate more cash for operations such as recruiting more salespeople or opening a larger number of retail shops. Similarly, a corporation that wants to have more control over middlemen should choose shorter distribution networks. The rationale for this is that direct or shorter lines have fewer intermediaries and are thus easier to regulate. Companies with less control over middlemen, on the other hand, can choose longer distribution networks.

3. Market-related considerations: Size of the market, geographical concentration of buyers, amount demanded, and other aspects influence channel selection. For example, when the order size is small, shorter channels should be used, and when the order size is huge, long channels should be used. In the same way, if the market is small, shorter channels should be used, and if the market is huge, long channels should be used.

20. After acquiring the necessary knowledge and skills on starting an Aloe Vera Farm. Ashok wanted to be the leading manufacturer of Aloe Vera products worldwide. He observed that the products were expensive as the demand of the products was more than supply. He was also keen to promote methods and practices that were economically visible, environmentally sound and at the same time protecting public health.

Ashoka's main consideration was about the amount of money paid by the consumers in consideration of the purchase of Aloe Vera products. He also thought that competitors' prices and their anticipated reactions should be considered for this.

After gathering and analysing information and doing correct market planning, he came to know that the consumers compare the value of a product to the value of money which they are required to pay. The consumers will be ready to buy a product when they perceive that the value of the product is at least equal to the value of money which they would pay.

Since he was entering into a new market, he felt that he may not be able to cover all costs. He knew that in the long run the business will not be able to survive unless all costs are covered in addition to a minimum profit.

He examined the quality and features of the products of the competitors and the anticipated reactions of the consumers. Considering the same he decided to add some unique features to the packaging and also decided to provide free home delivery of the products.

The above case relates to a concept which is considered to be an effective competitive marketing weapon. In conditions of perfect competition most of the firms compete with each other on this concept in the marketing of goods and services.

(a) Identify the concept.

Ans: The price of the product is the notion stated in the preceding paragraph.

(b) Explain briefly any four factors discussed in the above case related to the concept so identified.                                                                                                 

Ans: The following are the four elements described in the preceding case:

i. Quoted Line: After collecting and analysing data, as well as proper marketing planning.

Customers value a thing based on the value of the money they must spend, he discovered. Consumers will buy a thing if they believe the value of the product is at least equivalent to the amount of money they will pay.

Factor: Demand and Utility

ii. Quoted Line: He looked at the quality and characteristics of competitors' products, as well as consumer reactions.

Factor: The market's level of competitiveness.

iii. Quoted Line: Taking this into account, he decided to add some distinctive characteristics to the package as well as offer free home delivery of the products.

Factor: The marketing strategies used

iv. Quoted Line: He was concerned that because he was entering a new market, he might not be able to cover all costs. He understood that the business would not be able to exist in the long run unless all costs were covered in addition to a minimum profit.

Cost of the product is a factor.

21. Explain any four factors which affect the determination of the price of a product 

Ans: Factors influencing a product's pricing determination include:

1. Product Cost: The most essential component in deciding the pricing is the product cost. The cost of a product can fall into one of three categories:

•  Fixed costs: These are costs that always remain constant or fixed regardless of production level, such as the cost of machinery or a building.

•  Variable costs: These are the costs that vary directly in relation to output. Variable costs rise as output rises, and vice versa; for example, as output rises, labour and raw material costs climb.

•  Semi-variable expenses: These are costs that alter in direct proportion to the level of output, such as commission paid to intermediaries.

2. Product Demand: The elasticity of product demand is another essential aspect in influencing the price of a product. The price elasticity of demand refers to how responsive demand is to price fluctuations.

• Price inelastic demand occurs when a proportionate change in price does not result in a meaningful change in demand. It is conceivable for a company to charge a higher fee in this situation. This is because demand will remain roughly consistent even at a higher price. As a result, items with elastic demand have a lower price than commodities with inelastic demand.

• Price elastic demand occurs when a proportionate change in price results in a greater than proportionate change in demand. The firm's decision to charge a higher price would result in a major decline in demand in this case.

3. Market Rivalry: When there is a lot of competition in the market, it's impossible for a company to charge a higher price. This is because if the company charges a greater price, customers will go to its competitors instead.

4. Government Regulations: The government regulates the prices of various commodities from time to time. The government, for example, intervenes in the price determination of agricultural items such as wheat and rice.

22. Explain the following functions of marketing:

(i) Gathering and analysing market information

Ans:  Gathering and analysing market data: A marketer examines the current market trend and seeks out the greatest opportunities. Gathering information on the target market sector, such as its size and behaviour, culture, and customer needs and wants.

(ii) Marketing planning

Ans: Marketing planning: Creating a market plan to fulfil the organization's marketing goals and objectives. Market research is carried out in order to determine the preferences of clients in order to develop an appropriate strategy.

(iii) Customer support services

Ans: Customer support services: These services include dealing with complaints and feedback from customers. Credit, maintenance, technical services, consumer information, and other customer support services are being developed. These customer services are supplied in order to gratify clients and turn them into long-term customers of the company's products.

(iv) Physical distribution

Ans: Physical distribution: The channels of distribution by which products are conveyed from the point of production to the point of consumption must be determined. It is more vital to choose an appropriate distribution channel since an ineffective distribution channel might result in an increase in the price of the good or a deterioration in the quality of the product.

23. "Though advertising is one of the most frequently used mediums of promotion of goods and services, it attracts a lot of objections.' Explain any four such objections.

Ans: When it comes to advertising spending, there are a variety of viewpoints. On the one hand, it is considered a social waste because it increases manufacturing costs, lowers social values, and expands consumer requirements and desires. On the other hand, it is considered as advantageous because it aids in raising sales and earnings.

Points arguing that advertising is a waste of money for a business:

• Higher Cost: Advertising costs contribute to the cost of the product and the firm, which is subsequently passed on to customers as an additional cost in the form of higher pricing.

•  Advertising: on the other hand, aids in drawing customers to the product. As a result, there is a rise in demand for the product. To accommodate the increased demand, production expands. An increase in production lowers the cost of manufacturing per unit.

•  Causes Confusion: It is said that when a huge number of comparable products are advertised, the consumer is frequently confused. Those who support commercials, on the other hand, claim that they assist consumers to have a better understanding of the many products available on the market. As a result, their options broaden, and they are better able to make informed decisions about the products they wish to purchase.

• Promotes Substandard Products: Advertisements persuade consumers to buy the product. Even inferior products can be advertised and persuaded to sell. Quality, on the other hand, is thought to be a subjective concept. Advertisements tell consumers about a wide range of products. Consumers must decide whether or not to purchase the product.

• Offending Advertisements: Advertisements can occasionally be offensive in the sense that they undermine social values. In certain commercials, for example, women are portrayed in an unpleasant light. The language, graphics, and content of advertisements may not always be appealing to society.

Key Benefits of Solving Important Questions for CBSE Class 12 Business Studies Chapter 10 Marketing

• Solving important questions for CBSE Class 12 Business Studies Chapter 10 Marketing helps you to analyse your chapter performance in a better way.

• Boost your confidence to tackle any type of questions asked from the chapter during the exam.

• You can analyse your weaker areas of the chapter and rectify the mistakes accordingly.

• You can also prepare Business Studies Chapter 10 Marketing chapter notes from these important questions and even highlight the important topics of the chapter.

Conclusion 

The important questions for CBSE Class 12 Business Studies Chapter 10 - Marketing are invaluable resources that aid students in comprehending the complexities of marketing concepts. These questions are carefully curated to cover various aspects of marketing, including product life cycle, pricing strategies, branding, and promotional techniques. By solving these questions, students can gain a deeper understanding of marketing principles, enhance their analytical skills, and prepare effectively for their examinations. The comprehensive coverage of important topics through these questions enables students to approach marketing challenges with confidence and lays a strong foundation for a successful career in the business world.