NCERT Solutions Class 12 Business Studies Chapter 10 Marketing
NCERT Solutions Class 12 Business Studies Chapter 10 Marketing: National Council of Educational Research and Training (NCERT) Class 12 Business Studies Chapter 10 Solutions – Marketing.
Board |
NCERT |
Class |
12 |
Subject |
Business Studies |
Chapter |
10 |
Chapter Name |
Marketing |
Topic |
Exercise Solutions |
Very Short Answer Questions :
1.) State any two advantages of branding to marketers of goods and services.
Ans – Any two advantages of Branding to the marketers are as follows:
i) Enables Product Differentiation.
ii)Differential Pricing.
2.) How does branding help in differential pricing?
Ans – Branding enables differential pricing because customers are always preferring a particular brand if they like it irrespective of its price.
3.) What is the societal concept of marketing?
Ans- The societal marketing concept holds that the task of any organisation 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.
4.) Enlist the advantages of packaging of consumer products.
Ans -Rising Standards of Health and Sanitation: Because of the increasing standards of living in the country, more and more people have started purchasing packed goods as the chances of adulteration in such goods are minimised.
5.) List five shopping products purchased by you or your family during the last few months.
Ans – List of five shopping products purchased by our family – Rice , Refrigerator , Air Condition Machine , Toiletries, Furniture.
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 – The name of the function of Marketing discussed above is – Marketing Planning.
Short Answer Questions:
1.) What is marketing? What functions does it perform in the process of exchange of goods and services?explain.
Ans- Marketing is a social process where in people interact with others, in order to persuade them to act in a particular way, say to purchase a product or a service, rather than forcing them to do so.
Functions of marketing in exchange of Goods and services are as follows:
The process of marketing works through the exchange mechanism. The individuals (buyers and sellers) obtain what they need and want through the process of exchange. In other words, the process of marketing involves exchange of products and services for money or something considered valuable by the people. Exchange refers to the process through which two or more parties come together to obtain the desired product or service from someone, offering the same by giving something in return.
2.) Distinguish between the product concept and production concept of marketing.
Ans – PRODUCTION CONCEPT – During the earlier days of industrial revolution, the demand for industrial goods started picking up but the number of producers were limited. It was believed that profits could be maximised by producing at large scale, thereby reducing the average cost of production. It was also assumed that consumers would favour those products which were widely available at an affordable price. Thus, availability and affordability of the product were considered to be the key to the success of a firm.
PRODUCT CONCEPT : As a result of Production concept , emphasis on production capacity during the earlier days, the position of supply increased over period of time. Mere availability and low price of the product could not ensure increased sale and as such the survival and growth of the firm. Thus, with the increase in the supply of the products, customers started looking for products which were superior in quality, performance and features. Therefore, the emphasis of the firms shifted from quantity of production to quality of products.
3.) Product is a bundle of utilities. explain.
Ans – In common parlance, the word ‘product’, is used to refer only to the physical or tangible attributes of a product. In marketing, product is a mixture of tangible and intangible attributes, which are capable of being exchanged for a value, with ability to satisfy customer needs. It is anything that can be offered to a market to satisfy a want or need. Products may broadly be classified into two categories—industrial products and consumers’ products. Products, which are purchased, by the ultimate consumers or users for satisfying their personal needs and
desires are referred to as consumer products. On the basis of shopping efforts involved, the products are classified as Convenience Product, Shopping Products and Speciality Products.
On the basis of their durability, consumer products have been classified into categories—
Durable, Non-durable, and Services. Those activities, benefits or satisfactions, which are offered for sale, e.g., dry cleaning, watch repairs, hair cutting, are called services. Industrial products are those products, which are used as inputs in producing other products. These are broadly classified in to (i) Materials and Parts, (ii) Capital Items, and (iii) Supplies and Business Services.
4.) What are industrial products? How are they different from consumer products? explain.
Ans – Industrial products are those products, which are used as inputs in producing other products. The examples
of such products are raw materials, engines, lubricants, machines, tools, etc. In other words, industrial products are meant for non-personal and business use for producing other products.
Difference between Consumer products and Industrial product is that consumer products are purchased by ultimate consumers or users and industrial products are used for producing the consumer products.
5.) Distinguish between convenience product and shopping product.
Ans – The difference between convenience product and shopping product is as follows:
Those consumer products, which are purchased frequently, immediately and with least time and efforts are referred to as convenience goods. examples of such products are cigarettes, ice creams, medicines, newspaper etc whereas , Shopping products are those consumer goods where buyers devote considerable time, to compare the quality, price, style, suitability, etc., at several stores, before making final purchase. Some of the examples of shopping products are clothes, shoes, jewellery,etc.
6.) Describe the functions of labeling in the marketing of products.
Ans – The functions of labeling in the marketing of products are as follows:
i)Describe the Product and specify its contents: one of the most important functions of labels is to describe the product, its usage, cautions in use, etc. and specify its contents.
ii) Identification of the Product or brand: The other important function performed by labels is to help in identifying the product or brand.
iii) Grading of Products: Another important function performed by labels is to help grading the products intodifferent categories. Sometimes marketers assign different grades to indicate different features or quality of the product.
iv) Helps in Promotion of Products: An important function of label is to aid in promotion of the products. A
carefully designed label can attract attention and give reason to purchase.
7.) Discuss the role of intermediaries in the distribution of consumer non-durable products.
Ans – The role of intermediaries in the distribution of consumer non-durable products are as follows:
i)Sorting : Middlemen procure supplies of goods from a variety of sources which s often not the same quality ,nature , size etc.
ii) Accumulation: This function involves accumulation of goods into larger homogeneous stock which help in maintaining continuous flow of supply.
iii) Allocation : This involves breaking homogeneous stocks into smaller , marketable lot.
iv) Assorting : Middlemen build assortment of products for resale .
8.) Define advertising? What are its main features? Explain.
Ans – Advertising is perhaps the most commonly used tool of promotion. It is an impersonal form of communication, which is paid for by the marketers (sponsors) to promote some goods or service. The most common modes of advertising are ‘newspapers’, ‘magazines’, ‘television’, and ‘radio’.
The features of Advertising are as follows:
i)Paid Form: Advertising is a paid form of communication. That is, the sponsor has to bear
the cost of communicating with the prospects.
(ii) Impersonality: There is no direct face-to-face contact between the prospect and the advertiser. It is therefore, referred to as impersonal method of promotion.
(iii) Enhancing Customer Satisfaction and Confidence: Advertising creates confidence amongst prospective buyers as they feel more comfortable and assured about the product quality and hence feel more satisfied.
(iv) Expressiveness: With the developments in art, computer designs, and graphics, advertising has developed into one of the most forceful medium of communication.
9.) Discuss the role of ‘sales promotion’ as an element of promotion mix.
Ans – The role of ‘sales promotion’ as an element of promotion mix are as follows:
i) Attention Value: Sales promotion activities attract attention of the people because of the use of incentives
(ii) Useful in New Product Launch: Sales promotion tools can be very effective at the time of introduction of a new product in the market. It induces people to break away from their regular buying behaviour and try the new product.
(iii) Synergy in Total Promotional Efforts: Sales promotion activities are designed to supplement the personal selling and advertising efforts used by a firm and add to the overall effectiveness of the promotional efforts of a firm.
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.
Ans- Societal problems faced in a tourist destination are as follows:
i) Problem of creation of high price of land.
ii) Problem of having a skilled labour.
iii) lack of resources in facilitating proper communication .
Steps taken to overcome these problems are as follows:
i) Arranging of funds at a cheaper cost from various financial institutions.
ii) Outsourcing of skilled labourers at an affordable cost.
iii) Establishing a good network system for building an effective communication .
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.
Ans – The information generally placed on the package of a food product are as follows:
i) Package of fast food products like ready to eat Dosa, Idli or Noodles, describe the procedure of
cooking these products;
ii) The Manufacturing Date and the expiry date of the product.
iii) The ingredients used in making of the product.
iv) To provide information required by law. For example, packaged food articles must have list
ingredients declaration regarding vegetarian or non-vegetarian food additives and date of manufacturing
or packing on the label. Such information is required on processed foods, drugs and tobacco products.
In case of hazardous or poisonous material, appropriate safety-warning need to be put on the label.
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.
Ans – The “ Customer Care Services” designed for marketing of a brand new motorcycle are as follows:
i) Providing repair services for a period of time .
ii) Attractive sales promotion offers for the customers .
iii) Providing warranty and guarantee services for repair and replacement of the parts of the product.
Long Answer Type
1.) What is marketing concept? How does it help in the effective marketing of goods and services.
Ans – Marketing orientation implies that focus on satisfaction of customer’s needs is the key to the success of any organisation in the market. It assumes that in the long run an organisation can achieve its objective of maximisation of profit by identifying the needs of its present and prospective buyers and satisfying them in an effective way.
Marketing Concept helps in effective marketing of goods and services in the following ways :
i) All the decisions in a firm are taken from the point of view of the customers.
ii) It assumes that in the long run an organisation can achieve its objective of maximisation of profit by identifying the needs of its present and prospective buyers and satisfying them in an effective way.
iii) The product which will be produced, with what features and at what price shall it be sold, or where shall it be made available for sale will depend on what do the customers want.
iv) The concept implies that products ad-services are bought not merely because of their quality, packing or brand name, but because they satisfy a specific need of a customer.
2.) What is marketing mix? What are its main elements? Explain.
Ans- Marketing Mix is a set of marketing tools that the firm uses to pursue its marketing objectives in a target market.
The variables or elements of marketing mix popularly known as four Ps of marketing viz., Product, Price, Place and Promotion. These elements are combined to create an offer.
i) Product – In common parlance, the word ‘product’, is used to refer only to the physical or tangible attributes of a product. In marketing, product is a mixture of tangible and intangible attributes, which are capable of being exchanged for a value, with ability to satisfy customer needs. It is anything that can be offered to a market to satisfy a want or need.
Products may broadly be classified into two categories—industrial products and consumers’ products.
ii) Price : It may be defined as the amount of money paid by a buyer or received by a seller in consideration of the
purchase of a product or service. Generally, if the price of a product is increased, its demand comes down, and viceversa. The factors affecting price determination are (i) Product Cost (ii) The Utility and Demand (iii) Competition (iv) Government and Legal regulations and (v) Marketing Methods Used.
iii) Place: It refers to Physical Distribution or physical movement of goods and the channels ofDistribution . Physical Distribution covers all the activities required to physically move goods from manufacturers to the customers. The main component of physical distribution are (i) Order Processing; (ii) Transportation; (iii) Warehousing; and (iv). Inventory
Control: Just-in-Time-Inventory.
iv) Promotion: Promotion refers to the use of communication with the twin objective of informing potential customers about a product and persuading them to buy it. There are four major tools, or elements of promotion mix, which are —
(i) Advertising, (ii) Personal Selling, (iii) Sales Promotion, and (iv) Publicity.
3.) How does branding help in creating product differentiation? Does it help in marketing of goods and services? Explain.
Ans – If products were sold by generic names, it would be very difficult for the marketers to distinguish their products from that of their competitors. Thus, most marketers give a name to their product, which helps in identifying and distinguishing their products from the competitors’ products. This process of giving a name or a sign or a symbol etc., to a product is called branding.
A brand is a name, term, sign, symbol, design or some combination of them, used to identify the products— goods or services of one seller or group of sellers and to differentiate them from those of the competitors. For example, some of the common brands are Bata, Lifebuoy, Dunlop,etc.
4.) What are the factors affecting determination of the price of a product or service? Explain.
Ans – The factors affecting determination of the price of a product or service are as follows:
i) Product cost: One of the most important factor affecting price of a product or service is its cost. This includes the cost of producing, distributing and selling the product. The cost sets the minimum level or the floor price at which the product may be sold. Generally all marketing firms strive to cover all their costs, at least in the long run.
ii)utility or Demand of the Product: While the product costs set the lower limits of the price, the utility provided by the product and the intensity of demand of the buyer sets the upper limit of price, which a buyer would be prepared to pay.
In fact the price must reflect the interest of both the parties to the transaction—the buyer and the seller. The buyer may be ready to pay up to the point where the utility from the product is at least equal to the sacrifice made in terms of the price paid.
iii)Competition in the market : The price will tend to reach the upper limit in case there is lesser degree of competition while under conditions of free competition, the price will tend to be set at the lowest level Competitors’ prices and their anticipated reactions must be considered before fixing the price of a product.
iv)Legal Regulations : In order to protect the interest of public against unfair practices in the field of price fixing, Government can intervene and regulate the price of commodities. Government can declare a product as essential product and regulate its price.
5.) Explain the major activities involved in the physical distribution of products.
Ans – The major activities involved in the physical distribution of products are as follows:
i) Order Processing: In a typical buyer-seller relationship, order placement is the first step. Products flow from manufacturers to customers via channel members while orders flow in the reverse direction, from customers to the manufacturers. A good physical distribution system should provide for an accurate and speedy processing of orders.
ii)Transportation: Transportation is the means of carrying goods and raw materials from the point of production to the point of sale. It is one of the major elements in the physical distribution of goods. It is important because unless the goods are physically made available, the sale cannot be completed.
iii) Warehousing: Warehousing refers to the act of storing and assorting products in order to create time utility in them.
The basic purpose of warehousing activities is to arrange placement of goods and provide facilities to store them. The need for warehousing arises because there may be difference between the time a product is produced and the time it is required for consumption.
iv) Inventory control: Linked to warehousing decisions are the inventory decisions which hold key to success for many manufacturers, especially those where the per unit cost is high. A very important decision in respect of inventory is deciding about the level of inventory. Higher the level of inventory, higher will be the level of service to customers.
6.) ‘Expenditure on advertising is a social waste.’ Do you agree? Discuss.
Ans – No , I do not agree with the above statement . The reasons for this are as discussed below as advertising offers various benefits to the firm .
i) Mass Reach: Advertising is a medium through which a large number of people can be reached over a vast geographical area.
ii) Enhancing Customer Satisfaction and Confidence: Advertising creates confidence amongst prospective buyers as they feel more comfortable and assured about the product quality and hence feel more satisfied.
iii) ) Expressiveness: With the developments in art, computer designs, and graphics, advertising has developed into one of the most forceful medium of communication. With the special effects that can be created, even simple products and messages can look very attractive.
iv) Economy: Advertising is a very economical mode of communication if large number of people are to be reached.
Because of its wide reach, the overall cost of advertising gets spread over numerous communication links established.
7.) Distinguish between advertising and personal selling.
Ans – The difference between Advertising and Personal Selling are as follows:
8.) Explain the factors determining the choice of channel of distribution.
Ans – The factors determining the choice of channel of distribution are as follows:
i) Product Related Factors : The choice of channels of distribution depends on the nature of products – like industrial or consumer products , perishable or non – perishable products . Industrial products require shorter channels of distribution than consumer products and perishable products are best sold through short channel s.
ii) Company Characteristics : Important company characteristics affecting choice of channels of distribution include financial strength and degree of control of the business . If the firm wants to have a greater control on the channels members , then short channels are used and vice versa.
iii) Competitive Factors : The choice of channels of distribution is affected by the channels chosen by the competitor.
iv) Market Factors : Important market factors affecting the choice of channels of distribution includes size of the market , geographical concentration of buyers , quantity purchased etc. if the number of buyers are small and they are concentrated in a small area then short channels are chosen and vice versa.