case study on marketing management class 12

CBSE Class 12 Case Studies In Business Studies – Marketing Management

MARKETING Marketing: Definition Marketing is a social process by which individual groups obtain what they need and want through creating offerings and freely exchanging products and services of value with others. – Philip Kotler Marketing management is “the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value”. – Philip Kotler

Elements of marketing mix

Market: Definition A market consists of all the potential customers who have both the ability and willingness to buy a product or service to satisfy their needs or wants

Features of marketing

• It seeks to provide what individuals or groups need or want
• A market offering is created by the marketer.
• It adds value toa product by increasing its utility
• It is facilitated through the exchange mechanism

What can be Marketed?

• Physical product
• Organisations

Functions of Marketing

• Gathering and analysing market information is done to know the taste and preference of the target market.
• Marketing planning is needed to meet the marketing objectives of the firm effectively and efficiently.
• Product designing and development is carried out to make the product innovative and attractive.
• Packaging and labelling are needed for product protection, product identification and product differentiation.
• Branding helps to createa unique identity of the products.
• Customer support services help to create a good image of the marketer in the eyes of consumers.
• Pricing of product is a crucial decision as it may greatly influence the demand for a product.
• Promotion helps to boost the sales of a product.
• Physical distribution ensures the availability of the product at the right place, at the right time and in right condition so as to facilitate its purchase.
• Transportation creates place utility through movement of goods from the production of goods to the place of distribution.
• Warehousing creates time utility by providing for the storage during the time gap between the production and distribution of goods.
• Standardisation helps to produce goods as per predetermined specifications and grading facilitates their classification into groups on the basis of some criterion like quality, size etc.

MARKETING MANAGEMENT PHILOSOPHIES/CONCEPTS

  PRODUCT Product: Definition A product is anything of value i.e. a product or service offered to a market to satisfy needs or wants.

Important product decisions include

• Determining its layout, features, quality, design etc.

A Product includes

• After sale services
• Handling grievances
• Replacement of parts etc.

Types of utilities offered by a product

• Functional utility
• Psychological utility
• Social utility

PACKAGING Packaging: Definition Packaging is the process of desiging a suitable wrapper or container for a product.

Importance of Packaging

• Rising standards of health and sanitation
• Useful in self service outlets
• Innovative packaging adds value to a product
• Facilitates product differentiation

Levels of Packaging

• Primary package refers to the immediate container of a product.
• Secondary packaging refers to the additional protection provided besides primary package.
• Transportation packaging refers further packaging that helps in storage, identification of transportation of the product.

Functions of Packaging

• Helps in product identification
• Provides protection to the product
• Facilitates the use of product
• Assists in promotion of the product

BRANDING Branding: Definition Branding is the process of assigning a name (brand name), sign or symbol (brand mark) or a combination of all to identify the products of a seller or a group of sellers and to distinguish them from those of the competitors.

Brand Mark: Definition A brand mark is that part of a brand can be recognised but is not utterable.

Brand Name: Definition A brand name is that part of a brand which can be spoken.

Trade Mark: Definition Trade mark is used in context of a registered brand.

Advantages of branding to the customers

• Supports in product identification
• Certifies quality
• Considered to bea status symbol

Advantages of branding to the manufacturers

• Assists in advertising and display programmes
• Facilitates differential pricing
• Ease in the launching of new products

Qualities of a good brand name

• Short and easy to pronounce, spell and remember
• Reflects the functions of the product
• Distinctive/easily identifiable
• Adaptable can be used in labelling or packaging
• Versatile can be used for brand extension
• Should not become outdated soon
• Capable of being registered

LABELLING Labelling: Definition Labelling refers to the process of designing a label for a product which may vary from a simple tag to a complex graphic.

Functions of labelling

• Describes the product and specifies its contents
• Helps in identification of the product or brand
• Enables grading of products
• Assists in promotion of products
• Provides information required by law

PRICE Price: Definition Price is the monetary value paid in consideration for purchase ofa product or service by a buyer to its seller.

Factors affecting price determination

• Cost of product
• The utility and demand
• Extent of competition in the market
• Government and legal regulations
• Pricing objectives
• Marketing methods used.

PHYSICAL DISTRIBUTION Physical Distribution: Definition Physical distribution includes all those activities that ensure the availability of the product at the right place, at the right time and in right condition so as to facilitate its purchase.

Determining the components of physical distribution

• Order Processing
• Warehousing
• Transportation

Functions of distribution channels

• Accumulation
• Product Promotion
• Negotiation
• Risk Taking

Factors determining choice of channel

• Type of product
• Nature of product
• Degree of complexity of product
• Unit value of the product
• Financial strength of the firm
• Degree of control desired on channel members
• Policy of firm
• Geographical concenteration of buyers
• Quantity purchased
• Size of the market
• Economic conditions
• Legal constraints

Two main decisions involved in physical distribution

• Physical movement of goods from producers to consumers
• Choice of channels of distribution

Channels of Distribution: Definition Channels of distribution refers to the set of individuals and firms that act as intermediaries in the form of agents, wholesalers, retailers etc. that help to transfer the title of ownership to the buyer and also facilitate physical movement of the products.

Types of channels of distribution

• Manufacturer- consumer (zero level)
• Manufacturer- retailer consumer (one level channel)
• Manufacturer- wholesaler- retailer consumer(two level channel)
• Manufacturer-agent wholesaler retailer consumer(three level channel)

PROMOTION Promotion: Definition Promotion refers to the set of activities undertaken by a marketer to inform the prospective buyers about the product and persuading them to make a purchase.

Promotion mix

• Advertising
• Personal selling
• Sales promotion
• Public relations

ADVERTISING Advertisement: Definition Advertisement is a paid form of non¬personal communication undertaken by the marketers to boost the sale of a product or a service.

Objections to Advertising

• Adds to cost
• Undermines social values
• Encourages sale of inferior products
• Some advertisements are in bad taste
• Confuses the buyers

Features of Advertising

• Impersonality
• Identified sponsor

Role of Advertising

• Enhancing customers awareness about the product
• Helps in creating demand for both old and new products
• Repeated advertisements increases the confidence of the consumers
• Improves the public image of the company
• Helps to create employment opportunities

PERSONAL SELLING Personal Selling: Definition Personal selling refers to a personal form of communication between the seller and the prospective buyer.

Merits of personal selling

• It isa flexible tool of promotion
• It seeks to provides direct feedback from the prospective buyers

Features of Personal selling

• Involves personal form of communication
• May lead to the development of long term relationship between the company and a buyer

Qualities of a Good Salesman

• He should havea neat and tidy appearance.
• He should be decently dressed up and carry himself well.
• He should be cheerful and confident in his dealings.
• He should be able to communicate assertively.
• He should be alert and intelligent so that he is able to mould his sales talk as per the need of the situations.
• He should also passess good knowledge about the product that he is selling.

SALES PROMOTION Sales promotion: Definition Sales promotion refers to the short term incentives offered by the marketers to promote the sale Of their products

Commonly used Sales Promotion activities

• Product combinations
• Quality gift
• Instant draws and assigned gift
• Usable benefit
• Full finance @ 0%

PUBLIC RELATIONS Public Relations: Definition Public relations refers to the practice of managing communication between an organisation and its public in order to create and maintain a positive image about itself and its products

Roles of Public Relations

• Public relations helps to create a positive image about the company in the eyes of various interest holders like consumers, government, suppliers etc.
• It helps in launching new products as they may be accepted easily because of they may be accepted easily because of good reputation of business.
• It helps the business to reinstate itself in wake of controversies or prejudices etc.

Functions of the Public Relation Department

• It manage relations with the press to present true and correct information about the company.
• It undertakes product publicity for new products through sponsorships.
• It is proactive in promoting or defending regulations that affect business by maintaining healthy relationships with associations of commerce and industry etc. through newsletters, brochures, articles or arranging for talk shows or speeches of high officials of the company.
• It initiates or supports various kinds of corporate social activities.

LATEST CBSE QUESTIONS

Question 1. 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. (CBSE, Delhi 2017) Answer: Useable benefits is the technique of sales promotion used by the company in the above situation.

Question 2. 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 told 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 told 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 marketing efforts of their business. Also, state one more feature of the various types of thinking identified that is not given in the above para. (CBSE, Delhi 2017) Answer: The various types of thinking that guided Ginika, Tanish and Rohit in the marketing efforts of their business are described below:

• (Ginika) Societal marketing concept: The main focus of this philosophy is on both the needs of the potential buyers as well as concern for the society at large. The ends include profit maximisation through customer satisfaction and social welfare.
• (Tanish) Selling concept: The main focus of this philosophy is on existing products. The ends include profit maximisation through sales volume.
• (Rohit) Marketing concept: The main focus of this philosophy is on customers needs. The ends include profit maximisation through customer’s satisfaction.

Question 3. Mediquip Ltd. is a company dealing in distribution of medical equipments. 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, to 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 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.

• Identify the factors influencing the choice of channels of distribution which were discussed in the meeting.
• Also, explain briefly the other consideration to be taken care of in each factor identified in part (1). (CBSE, Delhi 2017)
• Product related factors: It has been mentioned that the machines were sophisticated.
• Market related factors: It has been mentioned that the size of the order is not large. (in)
• Company related factors: It has been mentioned that the company was short of funds to pay the additional staff which had to be recruited to personally visit and train the hospital staff.
• Geographical concentration of potential buyers: If the potential buyers for the firm’s product are geographically concentrated at a few specific places, it is advisable for the marketer to adopt direct channels of distribution. If the market for the product is widely scattered, indirect channels of distribution will be more effective.
• Nature of product: Considering the technical nature of the industrial products they require short channels i.e., direct channel or involving few middlemen. Moreover, they are made to order and expensive products purchased by selective buyers. Whereas the consumer products, being standardised, less expensive, less bulky, non-technical can be better distributed by long network of channels, involving many middlemen. Moreover they are purchased frequently.
• Type of product: If the product under consideration is perishable like fruits, vegetables, and dairy products short channels should be adopted in order to preserve their quality. Whereas non-perishable products like toiletry products (e.g., shampoo , toothbrush, deodorants etc.), groceries (cooking oil, pulses etc.), fabrics can be best marketed through longer channels so as to reach wide spread consumers.

Question 4. Mansi took her niece Ridhima for 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. Idenfity the technique of sales promotion used by the company. (CBSE, OD 2017) Answer: Product combination

Question 5. “Time Line” watch manufacturing company is a renowned company marketing watches. It performs various activities like, market analysis, product designing or merchandising, packaging, warehousing, branding, pricing, promotion and selling. The company maintains good customer relations through various follow up activities. This helps the company in procuring repeat sales orders.

• Name the concept related to the activities mentioned in the above paragraph.
• Explain any two features of the concept identified in part (1) (CBSE, Sample Paper, 2017)
• Marketing is the concept related to the activities mentioned in the above paragraph.
• Needs and wants: Marketing is a social process that seeks to satisfy the needs and wants of individuals and organisations. Needs are basic to human beings like food, clothing and shelter and do not relate to a particular product. Whereas wants are culturally defined human needs which are shaped by multiple factors like personality, religion, culture etc. Needs are limited whereas wants are unlimited. Therefore, the success of marketing lies in the competence of the marketer to identify needs of target customers and develop products to satisfy such needs effectively.
• Creating a market offering: The complete offer for a product or service possessing certain specific features like size, quality, colour etc. is known as a market offering. Thus, the success of the marketers lies in their proficiency to create a market offering in accordance with the needs and wants of the target market. For example a pack of 100 ml of mango juice is available for ? 20.

Question 6. “Coconut Joy Ltd.” are the manufacturer of vegetarian frozen dessert food products made with coconut milk, agave syrup and other certified ingredients. The founders of the company Lovely and Lalita originally developed this treat to meet their own needs but found that their friends and families around were also keen to use the products. It was not only the vegetarians, but also those who could not get enough environment friendly sustainable food, that appreciated the product. It did not take long for Lovely and Lalita to recognise the potential of their little venture. In the beginning they started from their home with the product being sold through local family parties that enable guests to personally meet the owner. This helped to establish strong connections with the prospective buyers and the company could put the product on shelves of natural food store. The company used* all marketing activities to grow and expand. The company began sponsoring booths at festivals, drawing attention to its newly created vegetarian products. It also disseminated relevant information to media about its products and the people who helped in building the company’s reputation. Lovely and Lalita were invited for an interview with one of the leading TV channels in which they talked about their environment friendly vegetarian products. To show its gratitude to customers, local business and government officials who supported the company from the beginning, “Coconut Joy Ltd.” hosted a gala event and involved all of them to raise funds for a few local NGO’s. The company also asked its fans and customers to send songs and poetry conveying their impression about “Coconut ‘Joy’s Ltd.” products.

• Identify and explain the communication tool used by “Coconut Joy Ltd”. .
• Briefly explain the role of the tool identified in (1) above. (CBSE, Sample Paper, 2017)
• Public relations is the communication tool used by “Coconut Joy Ltd”. Public relations refers to the practice of managing communication between an organisation and its publics in order to create and maintain a positive image about itself and its products.
• Press Relation: It manages relations with the press to present true and correct information about the company. Thus, public relations helps to create a positive image about the company in the eyes of various interest holders like consumers, government, suppliers etc.
• Product Publicity: It undertakes product publicity for new products through sponsorships. Thus, it helps in launching new products as they may be accepted easily because of good reputation of business.
• Corporate Communication: It promotes image of the company through different ways of corporate communication like publication of newsletters, brochures, articles or arranging for talk shows or speeches of high officials of the company.
• Lobbying: It is proactive in promoting or defending regulations that affect business by maintaining healthy relationships with associations of commerce and industry, government officials and different ministers in charge of corporate affairs etc.

Question 7. Good Living Ltd. manufactures mosquito repellent tablets tables. These tablets are packed in strips of 12 tablets each. Each of these strips is packed in a cardboard box, 48 such boxes are then placed in a big corrugated box and delivered to various retailers for sale. State the purpose of packaging the tablets in a corrugated box. (CBSE, Sample Paper 2016) Answer: The purpose of packaging the tablets in a corrugated box is to facilitate their transportation, warehousing and easy identification.

Question 8. Shreemaya Hotel in Indore was facing a problem of low demand for its rooms due to off¬season. The Managing Director (MD) of the hotel, Mrs. Sakina was very worried. She called upon the marketing Manager, Mr. Kapoor for his advice. He suggested that the hotel should announce an offer of ‘3 Days and 2 nights hotel stay package’ with free breakfast and one-day religious visit to Omkareshwar and Mahakaleshwar Temples. The MD liked the suggestion very much. Identify the promotional tool which can be used by the hotel through which large number of prospective pilgrimage tourists all over the country and abroad can be reached, informed and persuaded to use the incentive. (CBSE, Sample Paper 2016) Answer: Advertising is the promotion tool that can be used by the hotel.

Question 9. “Every time I travelled, people asked me to bring them chips, khakra and pickles from all over the country,” says Anoushka. Finally, she and her colleague, Sumeet, decided to make a business out of it. They launched a Facebook page, asked people what they wanted, and they came up with a list of about 100 places and tied-up with two dozen vendors to begin with. They were servicing people from Jaipur who wanted spices from Kerala, people from Panipat who wanted halwa from Jammu and people from Delhi who ordered fresh tea leaves from Darjeeling. Through their business, they wished to bridge the gap between sellers and buyers. The business is now worth millions. Explain any two important activities that Anouskha and Sumeet will have to be involved in for making the goods available to customers at the right place, in the right quantity and at the right time. (CBSE, Sample Paper 2016) Answer: Anoushka and Sumeet need to perform the activities involved in physical distribution of goods. Two such activities are explained below:

• Transportation: It creates place utility by facilitating the movement of goods from the place of production to the place of distribution. In the absence of efficient, reliable and cost effective transportation, facility marketing of goods is difficult.
• Warehousing: It creates time utility by providing for the storage of goods from the time they are produced till the time they are sold. Every marketer needs to take this decision wisely in order to create a balance between the level of customer service and cost of warehousing.

Question 10. A company was marketing juicers which were very popular due to their quality and after sales 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 the after sales services. As a result, its relations with customers got spoiled and the image of the company in the public was damaged. The top management became concerned when the profits for the current quarter fell steeply. On analysis, it was revealed that ignoring the after sales services was its reason. Therefore, the company took all possible measures to protect and promote its favourable image. As a result, the goodwill of the company improved in the society.

• Name and state the communication tool used by the marketer in the above case to improve its image.
• Also explain the role of the tool as identified in part (1). (CBSE, OD 2016)

OR A company was marketing water purifiers which were very popular due to their quality and after sales 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 the after sales services. As a result, its relations with customers got spoiled and the image of the company was damaged in the public. The top management became concerned when the profits for the current quarter fell steeply. On analysis, it was revealed that ignoring the after sales services was its reason. Therefore, the company took all possible measures to protect and promote its favourable image in the eyes of the public. As a result, the goodwill of the company improved in the society.

• Also explain role of the tool as identified in part (1). (CBSE, Delhi 2016)
• Public Relations is being used as a promotional tool by the marketer. It refers to the practice of managing communication between an organisation and its publics in order to create and maintain a positive image about itself and its products.
• Public relations helps to create a positive image about the company in the eyes of various interest holders like consumers, government, suppliers etc .
• It helps in launching new products as they may be accepted easily because of good reputation of business.
• It helps the business to reinstate itself in the wake of controversies or prejudices etc.

Question 11. Maruti Vega Ltd. entered into the market with coloured televisions and have now introduced products like audio systems, air-conditioners, washing machines, etc. The company is not only offering the products but also handling complaints and offering after-sales services. Identify the element of marketing mix discussed here. (CBSE, OD 2015) Answer: Product is the element of marketing mix discussed here.

Question 12. Radhika was a student of Business Studies of Class XII. Her father was a farmer who grew different varieties of rice and was well-versed in the various aspects of rice cultivation. He was also selected by the government for a pilot-project on rice cultivation. As a project work in Business Studies, she decided to study the feasibility of marketing good quality rice at a reasonable price. Her father suggested her to use the Internt to gather customers’ views and opinions. She found that there was a huge demand for packaged organic rice. She knew that there were no predetermined specifications in case of rice because of which it was difficult to achieve uniformity in the output. To differentiate the product from its competitors, she gave it the name of ‘Malabari Organic Rice’ and classified it into three different varieties, namely — Popular, Classic and Supreme, based on the quality. She felt that these names would help her in product differentiation. Explain the three functions of marketing with reference to the above paragraph (CBSE, OD 2015) Answer: The three functions of marketing with reference to the above paragraph are described below:

• Gathering and analyzing market information: The prime focus of marketing is to ‘find wants and fill them’. Therefore, it is absolutely essential for a company to study the needs and preferences of its target market in order to satisfy their needs and wants optimally.
• Standardisation and grading: Standardisation refers to the process of manufacturing goods as per predetermined specifications. Grading refers to the process of classifying goods on the basis of certain criteria like quality, size etc. Usually, agricultural products are subject to grading.
• Branding: Branding is the process of assigning a name (brand name), sign or symbol (brand mark) or a combination of all to a product. It is considered to be a very important decision by the marketers because it facilitates product differentiation. This helps the company to obtain a desirable market share.

Question 13. Beauty Products Ltd. is a natural and ethical beauty brand famous for offering organic beauty products for men and women. The company uses plant-based materials for its products and is the No.1 beauty brand in the country. It not only satisfies its customers but also believes in the overall protection of the planet. Identify the marketing management philosophy being followed by ‘Beauty Product Ltd’. (CBSE, Delhi 2015) Answer: Societal Marketing Concept

Question 14. ‘Haryaram’ is a famous chain selling a large variety of products in the Indian market. Their products include chips, biscuits, sweets and squashes. It charges a comparatively higher price than its competitors as it sells quality products. Besides, it offers regular discounts to its customers and easy credit terms to its retailers. It has five of its own retail shops. It also sells its products through various grocery stores so that the products are made available to customers at the right place, in the right quantity and at the right time. It regularly uses different communication tools to increase its sales. The above paragraph describes the combination of variables used by Haryaram to prepare its market offering. Identify and explain the variables. (CBSE, Delhi 2015) Answer: The combination of variables used by Haryaramto prepare its market offerings are described below:

• Product: “Their products include chips, biscuits , sweets and squashes.” A product is anything of value i.e. a product or service offered to a market to satisfy its needs or wants. A product includes physical product, after ..sale service, handling grievances etc. Every marketer needs to constantly review and revise its products in order to enhance customer’s satisfaction and have a competitive edge.
• Price: “It charges a comparatively higher price than its competitors.” Price is the monetary value paid in consideration for purchase of a product or service by a buyer to its seller. It is a very crucial decision for the marketers as consumers are very sensitive to the pricing. The factors affecting price determination are cost of product, the utility and demand, extent of competition in the market, government and legal regulations, pricing objectives and marketing methods used.
• Place: “It has five of its own retail shops.”Or “It also sells its products through various grocery shops.” It is considered an important element of marketing mix because it includes all those activities that help in making the goods and services available to the prospective buyers in the right quantity, at the right time and in right condition. The two main decisions involved in physical distribution are physical movement of goods from producers to consumers and choice of channels of distribution.
• Promotion: “It regularly uses different communication tools to increase its sales.” Promotion refers to the set of activities undertaken by a marketer to inform the prospective buyers about the product and persuading them to make a purchase. The various components of promotion mix are advertising, sales promotion, personal selling and public relation.”

Question 15. Radha found a worm crawling out of newly opened tetra pack of juice manufactured by a reputed company, Zest Ltd. She went back to the shopkeeper from whom the pack was purchased who directed her to call up the customer care centre. When all her efforts fell free, she went to a consumer activist, group to seek advice. The group decided to help Radha and take measures to impose restrictions on the sales of the firm’s products of the particular batch and urge customers to refrain from buying the products of the company. Zest Ltd. lost its image in the market. The CEO gave the responsibility of bringing back the lost image of the company to the Manager.

• Identify the concept of marketing management which will help the Manager to get the firm out of the above crisis.
• Also explain the role of above identified concept by stating any two points. (CBSE, Sample Question Paper 2015)
• Public relations will help the manager to get the firm out of the above crisis.

Question 16. Zoom Udyog, a car manufacturing company, has started its business with Zoom-800 and slowly launched Zoom-1000, Wagon-Z, Swy-fy etc. and offered various services like after sales services, availability of spare parts, etc. Identify the element of marketing mix referred here. (CBSE, Sample Question Paper 2015) Answer: Product is the element of marketing mix referred here.

Question 17. Crackers Ltd., a fire-cracker manufacturing company launched some new products on 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.

• Identify and explain the important product-related decision that was not taken into consideration by the company.
• Also, identify any two values which were violated by the company. (CBSE, Annual 2014)
• The company has ignored ‘Labelling’. It is an important product-related decision. Labelling refers to the process of designing a label for a product containing product description and other relevant information which is likely to affect a prospective buyers decision in making a purchase. It may vary from a simple tag to a complex graphic.
• Abiding by law as child labour has been employed
• Concern for human life as appropriate warnings were not placed on the label.

Question 18. ABC Crackers Ltd., a fire-cracker manufacturing company, launched some new products on the eve of Diwali in the market which attracted many buyers. To meet the increasing demand, the company employed people from nearby villages where there was a lot of unemployment. Because of the good behaviour of the management with the employees, more and more people wanted to join the company. As the products were in great demand in the market, a competitor imitated the products. The products of the competitor were not accepted by the consumers as it was a status symbol to buy the products of ABC Crackers Ltd. because of their quality.

• Identify and explain the product-related decision because of which consumers preferred the products of ABC Crackers Ltd.
• Also, identify any two values which ABC Crackers Ltd. wanted to communicate to the society. (CBSE, OD 2014)
• Branding is the product-related decision because of which consumers preferred the products of ABC Crackers Ltd. Branding is the process of assigning a name (brand name), sign or symbol (brand mark) or a combination of all to a product. Branding facilitates product differentiation, assists in advertising and display programmes, facilitates differential pricing , promotes consumers loyalty etc.
• Generating employment opportunities
• Providing good working environment.

Question 19. As a project work in Business Studies, the Commerce students of Himachal Public School, Himachal Pradesh thought of preparing apple jam from the apples grown in their school premises and sell it in the school annual fete. They approached the Principal who not only appreciated the students but also gave her consent for the same. The school decided to donate 50% of the revenue generated from the sale to a nearby orphanage. After the school fete, the school also decided to extend this project by providing employment to visually challenged and disadvantaged sections of society on regular basis.

• Explain any two product-related decisions which the students had to take.
• Suggest any two functions that the ‘label’ of the jam-bottle must perform.
• Identify two values communicated to society by this project of Himachal Public School, Himachal Pradesh. (CBSE, OD 2013)
• The two product-related decisions which the students had to take are branding and packaging.
• Describe the product and specify its contents: The label on the jam bottle must provide information about the core function of the product i.e. how and why is the product is likely to be beneficial to the prospective buyer. It should educate them about the usage and precautions related to the product. It also gives detailed information about the ingredients of the product.
• Helps in identification of the product or brand: The label should contain the logo, brand name, tagline, name and address of the manufacturer etc. of the product for easy identification of the product.

Question 20. Ajay was appointed as the marketing head of Alfa Enterprise, a manufacturer of toothpastes and toothbrushes. His target sale was 2000 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 start brushing their teeth. He investigated and found that they could not afford to buy toothbrush and toothpaste. So with due permission, he started donating 200 toothbrushes and toothpastes every month to the school.

• Identify the channel of distribution Ajay would adopt for the distribution of toothpaste and toothbrushes and justify it by giving one reason.
• State any two values which Ajay ants to communicate to society. (CBSE, Delhi 2013)
• Ajay would adopt indirect channels of distribution for marketing of toothpaste and tooth brushes because it is a consumer product. It can be easily marketed through longer channels, for example (Manufacturer – Wholesaler – Retailer – Consumer).
• Good health
• Social welfare.

Question 21. Amar is engaged in the manufacturing of refrigerators. He surveyed the market and found that customers need a refrigerator with a separate provision of water cooler in it. He decided and launched the same refrigerator in the market. Identify and explain the marketing philosophy involved. (CBSE, Delhi 2012) Answer: Amar is following the philosophy of marketing concept. The prime focus of marketing concept is to ‘find wants and fill them’. Therefore, the marketer first assesses the needs and preferences of its target market and manufactures products accordingly in order to satisfy their needs and wants optimally. It aims at profit maximization through customer satisfaction.

Question 23. Mansi, a shoe manufacturer for school students, decided to maximise profits by producing and distributing shoes on a large-scale and thus reducing the average cost of production.

• Identify the marketing management philosophy adopted by Mansi.
• Means and Ends (CBSE, OD 2012)
• Mansi has adopted the production philosophy.
• The main focus of this philosophy is on the quantity of products produced. Means: The production philosophy can be brought into effect by making products affordable and widely available. Ends: The production philosophy aims at maximizing profits through high volume of production.

ADDITIONAL QUESTIONS

Question 1. Unilever has found a new way to make ice creams by using an ingredient called ‘ice structuring protein’ which is widely found in nature especially, in fishes which allows them to survive in freezing arctic waters. Combining ISP with stabiliser technology allows to make ice creams that don’t melt so easily thereby making it more convenient for small children and consumers in hot countries. In the context of above case:

• Identify the component of marketing mix being taken into consideration by the company.
• Explain briefly the function of marketing highlighted here.
• List any two values that the company wants to communicate to the society.
• The component of marketing mix being taken into consideration by the company is ‘Product’.
• Product designing and development: Every marketer strives to achieve his marketing objectives by creating offerings to satisfy a need or a want. Therefore, one of the core functions of marketing is to develop the product in the most effective and efficient way. Every marketer endeavours to add value to his product by introducing constant innovations in the product to enhance both its utility and attractiveness in the eyes of the potential buyers and gain a competitive edge.
• Responsibility towards consumers
• Technological advancement.

Question 2. Ranger India Limited, is an automobile manufacturer in India. It makes 1.5 million family cars every year. That’s one car every 12 seconds. It has a sales network of company approved retailers that spreads across 600 cities. In the context of above case:

• Identify the type of the channel of distribution adopted by the company.
• State the market related factors that are likely to affect the decision of a marketer about the choice of channel of distribution.
• Size of market: If the size of the target market is small, it is advisable that the marketer adopts methods of direct channels of distribution like online selling, mail order house, personal selling etc. wherein there are no intermediaries between the manufacturer and the consumers. However, if the marketer intends to target larger markets he should adopt indirect channels of distribution (one level, two level or three level) by using intermediaries like wholesalers, retailers etc.

Question 3. As a global leader in the consumer electronics and entertainment industries, Sony has set forth ‘Road to Zero environmental plan’, to achieve a zero environmental’ effect by the year 2050 by producing world-class products in a manner that both protects and promotes a healthy and sustainable planet. In the context of above case:

• Identify the marketing philosophy being implemented by the company.
• Outline the main focus and ends of the relevant marketing philosophy.
• State any two values that the company wants to communicate to the society.
• Societal marketing concept is being pursued by the company.
• The main focus of this philosophy is on both the needs of the potential buyers as well as concern for the society at large. The ends include profit maximisation through customer satisfaction and social welfare.
• Concern for the environment
• Welfare of the society

Question 4. As the number of people making online purchases has increased manifolds, there is a growing concern about the disposal and management of packaging waste. Every item bought is delivered with excess packaging and sometimes even non-biodegradable materials are used. In the context of above case:

• Name the other two levels of packaging that the marketers may be using besides the immediate package.
• Describe briefly any two points highlighting the functions of packaging.
• State any two factors that should be kept in mind by the marketers while designing the packaging of its products.
• Secondary packaging and Transportation packaging.
• Product Identification: Packaging facilitates the identification of the product with the use of different colours like wrapper of maggi noodles is red whereas yippe noodles are sold in orange colour packaging. Also, the shape of different brands of cold drinks bottles is different.
• Product Protection: One of the basic purposes of packaging is to safeguard the contents of a product from any kind of damage due to mishandling, adverse weather conditions etc. during the activities related to physical distribution like storing, transportation etc.
• The marketers should use biodegradable packaging material and packaging should enhance the usability of the products.

Question 5. Rastro Inc., is a multinational corporation that creates consumer electronics, personal computers, servers and computer software. The company also has a chain of retail stores known as Restro Stores. Despite high competition, Restro has succeeded in creating demand for its products, giving the company power over prices through product differentiation, innovative advertising and ensured brand loyalty. In the context of above case:

• What is product differentiation?
• Name any one function of marketing that facilitates product differentiation.
• Identify the component of promotion mix being used by the company by quoting lines from the paragraph. .
• Describe briefly the pricing objective pursued by the company.
• Product differentiation is a strategy used by the marketers to gain an edge over its competitors by creating a distinguished perception of the product in the minds of the potential buyers in terms of its utilities.
• Branding is a function of marketing that facilitates product differentiation.
• Advertising is the component of promotion mix being used by the company “giving the company power over prices through product differentiation, innovative advertising and ensured brand loyalty.”
• Attaining product quality leadership: Besides aiming at profit maximisation as its pricing objective Rastro Inc. seeks to establish a unique place for its products in the market by offering superior quality products which can be easily distinguished from its competitors. As a result, it is able to use differential pricing i.e. fixing up relatively higher prices for its products.

Question 6. Rupali intends to start an enterprise that produces chocolates. Initially, in order to assess the taste and preferences of the people about the chocolates. She used social media and online surveys. Thereafter, she prepared a detailed SWOT (strengths, weaknesses, opportunities and threatsjanalysis of her enterprise to devise a strategy that will give her an edge over the competitors. Based on her analysis of the market, she decided to launch sesame and jaggery based chocolates under the brand name ‘Desi Delight’. She has decided to fix up the price of chocolates relatively at lower level in the beginning and later on as the demand picks up she may revise the prices. In the context of above case:

• Identify the elements of marketing mix being taken into consideration by Rupali.
• Explain briefly the functions of marketing highlighted here.
• Do you think she has selected an appropriate brand name for her product? Why or why not? Give a reason for your answer.
• The elements of marketing mix being taken into consideration by Rupali are Product and Price.
• Gathering and analysing market information: The prime focus of marketing is to ‘find wants and fill them’. Therefore, it is absolutely essential1’for a company to study the needs and preferences of its target market in order to satisfy their needs and wants optimally.
• Product designing and development: Every marketer strives to achieve his marketing objectives by creating offerings to satisfy a need or a want. Therefore, one of the core function of marketing is to develop the product in the most effective and efficient way. Every marketer endeavours to add value to his product by introducing constant innovations in the product to enhance both its utility and attractiveness in the eyes of the potential buyers and gain a competitive edge.
• Pricing: Price is the monetary value paid in consideration for purchase of a product or service by a buyer to its seller. The process of determining the price of a product or service is called pricing. It is a crucial decision for the marketers as consumers are very sensitive to the pricing. The factors affecting price determination are cost of product, the utility and demand, extent of competition in the market, government and legal regulations, pricing objectives and marketing methods used.
• Yes, she has selected an appropriate brand name ‘Desi Delight’ for her product as the name reflects on the product’s benefits and qualities. The word ‘Desi’ indicates that the product contains indigenous ingredients like sesame and jiggery and Delight denotes the pleasure that the person is going to get on consuming the delicious chocolates.

Question 7. Reema, Vibha and Ratna are three women entrepreneurs who are engaged in dealing with handicraft goods under the brand name ‘Gujkriti’ through a chain of retail outlets at five different places in Delhi. They outsource all their products from tribal and rural women in the state of Rajasthan. Reema is of the opinion that in order to increase the sale of their products, they should advertise about it on television. But, Ratna is arguing that advertisement expenses will add to cost of operation. Whereas Vibha is insisting that they should set up an online portal to market their products across the globe. In the context of above case:

• Identify the tool of promotion being taken into consideration by Reema by quoting lines from the paragraph.
• How is the channel of distribution being suggested by Vibha different from the channel of distribution being used by them presently?
• Do you think that Ratna is justified in her argument that advertisement expenses will add to cost of operations?
• The tool of promotion being taken into consideration by Reema is advertising. (Reema is of the opinion that in order to increase the sale of their products, they should advertise about it on television.)
• Vibha is insisting that they should set up an online portal to market their products across the globe i.e. adopting direct marketing or zero-level channel (manufacturer – consumer). Whereas at present they are using indirect channels of distribution i.e. one level channel (manufacturer – retailer – consumer)by operating through a chain of retail outlets at five different places in Delhi.
• No, Ratna is not fully justified in her argument although advertising as a tool of promotion is often criticised on the ground that it adds to the cost of distribution which is passed on to the consumers in the form of higher prices. Therefore, it increases the burden on the consumers. But, this argument is not entirely true because advertisements help to increase demand for the product. In order to meet the increased demand the production levels have to be raised. As a result, the business is able to reap advantage of economies of scale and eventually the cost of production per unit comes down and benefits the buyers as the product’s prices are reduced consequently.

Question 8. Ravi has decided to set up a small factory to manufacture hand wash and toilet soaps in a rural area in Haryana. In order to promote the product initially, he plans to distribute small sachets of the hand wash as free samples, besides deploying a team of salesmen to sell the product door to door in the different parts of the city. Moreover, he has decided to conduct a hygiene camp in rural areas wherein he will distribute a kit comprising of hand wash and soap and also plans to organize street plays to highlight the importance of hygiene and sanitation in our daily lives. In the context of above case:

• Identify the tools of promotion being taken into consideration by Ravi.
• What are the qualities that he should consider while selecting salesmen? (any three)
• List any two values that the he wants to communicate to the society.
• The tools of promotion being taken into consideration by Ravi are Sales Promotion and Personal Selling.
• Physical appearance: A salesman should have a neat and tidy appearance. He should be decently dressed up and carry himself well.
• Social qualities: A salesman should be cheerful and confident so that he is able to communicate assertively without loosing his temper easily.
• Tactfulness and knowledgeable: A good salesman should be alert and intelligent so that he is able to mould his sales talk as per the need of the situation. He should also possess good knowledge about the product he will be selling.
• Improvement in the standard of living of the people
• Educating them about hygiene/cleanliness

Question 9. The Fancy Store’ is a popular retail shop dealing in all kinds of fashionable items. Harish, the owner of the store believes in pushing the sale of his products through aggressive sales promotion techniques. Therefore, throughout the year he keeps offering various kinds short¬term incentives to the buyers like discounts, quantity gifts, product combinations etc. On the contrary, his brother Ramesh who also runs a retail shop dealing in all kinds of fashionable items in the nearby market tries to first assess the needs and wants of the buyers while deciding upon the product range. He also believes in building long term relations with the buyers and therefore offers only good quality products and handles the complaints of the buyers if any with politeness and patience. In the context of above case:

• Identify the two different marketing concepts discussed in the above para.
• Distinguish between them on the basis of meaning, scope and strategies used.
• The Selling concept
• The Marketing concept

Question 10. Arvind is planning to start a company manufacturing room fresheners. He intends to use natural fruit extracts for adding fragrance to them. He estimates an investment of Rs. 20 crores to set up the factory. As it is difficult for him to raise the entire capital amount alone, he gives a partnership offer to his school friend, Sanjay who is an angel investor. Sanjay, after being convinced about the feasibility of the project, accepts his offer. Sanjay tells Arvind that they should also focus on other important decisions related to the product ‘room fresheners’ besides deciding about its features, variety and quality. Branding is one of the important such decision. In the context of above case:

• Name any other two important decisions related to a product.
• Why is branding considered as an important function by the marketers? Give any one reason in support of your answer.
• State any four features of a good brand name.
• Labelling and Packaging are the two important decisions related to a product.
• Branding is considered to be a very important decision by the marketers because it facilitates product differentiation. Through branding the prospective buyers are able to bring about a distinction between a company product and its substitutes available in the market. This helps the company to obtain a desirable market share.
• The brand name should be short, easy to pronounce, spell, recognise and remember e.g., Ponds.
• A brand should suggest the product’s benefits and qualities e.g Sunsilk.
• A brand name should be distinctive e.g., Lotus.
• It should be capable of being registered and protected legally.

Question 11. Somya Patel, 35, a fitness trainer, woes about a popular consumer durable brand saying that “They show a lot of advertisements for their products on television , but when you go to the store, you find these things out of stock all the time. Then why should the company put advertisements when they can’t meet the demand,” she questions. In the context of above case:

• Identify the tool of promotion mix being referred to in the above lines.
• List any two product related factors that are likely to affect the choice of channel of distribution.
• Which element of marketing mix is being overlooked by the company? Why is it considered as an important element?
• The tool of promotion mix being referred to in the above lines is Advertisement.
• Type of product (consumer or industrial)
• Unit value of product (low or high)
• Place is the element of marketing mix being ignored by the company. It is considered important because it relates to making the goods and services available to the prospective buyers in the right quantity at the right time and in right condition.

Question 12. Suraj is a small entrepreneur involved in the manufacturing of hair wax. He finds that cost of production of 100 gm of hair wax is Rs. 250. He has decided to keep a margin of 15% as profit. Moreover, he has assessed that there is a free competition in this product segment. In the context of above case:

• Identify the function of marketing being performed by Suraj.
• State briefly the two factors that he is taking into consideration while performing the function as identified in part (1).
• Pricing is the function of marketing being performed by Suraj.
• Cost of product: The price of the product is determined by adding the desired profit margin to the cost of production, selling and distribution. The cost is of three types namely the fixed cost, variable cost and semi-variable cost.
• Degree of competition: The nature and extent of competition in the market is another key factor relating to the pricing decision. If the firm faces free competition in the market it is likely to fix the price of the product at lower levels. But if it enjoys monopoly, then the prices are likely to be fixed at higher levels.

Question 13. After doing a diploma in entrepreneurship, Farihad started his own confectionary business. He started doing a lot of hard work and used the recipes taught by his grandmother in various preparations. He also learnt many recipes from online sites and television programmes. He decided to keep the price of the products low initially and also informed his customers about the goodness of the items sold by them. However, he didn’t mention on the package of each item weather it contained eggs or not. As a result, vegetarian people became hesitant in buying things from his shop as they had to verbally inquire from him about the inclusion of eggs in the preparation of various items. In the context of above case:

• Name the important aspect related to the marketing of products which has been ignored by Farihad.
• Explain briefly any three functions performed by the aspect as identified in part (1).
• Mention the right of consumer being violated by Farihad.
• The important aspect related to the marketing of products which has been ignored by Farihad is Labelling.
• Describes the product and specifies its contents: Labelling provides information about the core function of the product i.e. how and why the product is likely to be beneficial to the prospective buyer. It educates them about the usage and precautions related to the product. It also gives detailed information about the ingredients of the product.
• Helps in identification of the product or brand: The label contains the logo, brand name, tagline, name and address of the manufacturer etc. of the product which helps in easy identification of the product.
• Enables grading of products: Different coloured labels are also used by the marketers for grading of the products on the basis of flavours, quality etc. so that the buyers can easily choose a product as per their requirements.
• The Right to information is being overlooked by the company in the above mentioned case. According to the Right to information, a consumer has the right to get complete information about the product he /she intends to buy including its contents, date of manufacture, date of expiry, price, quantity, directions for use etc. Also, as per law, it is mandatory for the marketers to provide complete information about the product/ service to the buyers.

Question 14. ‘Shudh Hava Ltd/ is engaged in manufacturing of air conditioners and desert coolers. The company offers a wide range of products to meet the requirements of people from varied income groups. Recently the company has developed a new product, an air purifier that improves the quality of air by filtering out all allergens and microbes. The company introduced the product on two variants namely ‘Nano Tech’ and ‘Nano Tech Premium’. In order to persuade people to buy the product it is offering easy payment options in equal monthly instalments for different time periods. Moreover, every buyer will be offered ‘scratch a card’ option to win instant gifts like decorative items, T-shirts etc. The company is also planning to organise competitive events based on skill and luck in various malls in different cities. In the context of above case:

• Name and explain the ‘type of promotion strategy’ adopted by the company to boost the sales of air purifiers.
• Also, identify the various techniques of this promotional strategy being used by the company by quoting lines from the paragraph.
• “The company offers a wide range of products to meet the requirements of people from varied income groups.” Name the relevant consumer right being promoted by the company.
• The type of promotion strategy adopted by the company to boost the sales of air purifiers is Sales Promotion. Sales Promotion includes the various types of short term incentives offered by a marketer to increase the sale of a product or service.
• Full finance @ 0%  – “it is offering easy payment options in equal monthly instalments for different time periods.”
• Instant draws and assured gifts – “every buyer will be offered ‘scratch a card’ option to win instant gifts like decorative items, T-shirts etc.”
• Contests – “The company is also planning to organise competitive events based on skill and luck in the various malls in the different cities.”
• Right to Choose is the consumer right being promoted by the company

Question 15. Nischay, after completing his masters in computer engineering decided to start his own business. Fie visited his uncle Mr.Jaiprakash who has been running a successful business in web designing. Fie shared with Nischay that the main reason for his success in the business lies in his approach of building a life time relation with his clients. Therefore, his business is not only restricted to designing web sites according to the specifications of the clients but also providing continuous online assistance to them and handling their grievances effectively and doing all this at a profit. lie provides these services at competitive prices. Anybody interested in getting the web solutions can contact him through his website. Moreover, whenever the market is sluggish he tries to create demand by offering short-term incentives to the buyers. In the context of above case:

• Define the term ‘Marketing Management’.
• Briefly explain the various elements of marketing mix being pursued by Mr. Jaiprakash by quoting lines from the para.
• Marketing management is “the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value”- Philip Kotler
• Product: “his business is not only restricted to designing “Web sites according to the specifications of the clients but also providing continuous online assistance to them and handling their grievances’ effectively.” A product is anything of value i.e. a product or service offered to a market to satisfy needs or wants. A product includes physical product,after sale service, handling grievances etc. Every marketer needs to constantly review and revise his products in order to enhance customer’s satisfaction and have an competitive edge.
• Price: “doing all this at a profit. He provides these services at competitive prices.” Price is the monetary value paid in consideration for purchase of a product or service by a buyer to its seller. It is a very crucial decision for the marketers as consumers are very sensitive to the pricing. The factors affecting price determination are cost of product, the utility and demand, extent of competition in the market, government and legal regulations, pricing objectives and marketing methods used.
• Place: “Anybody interested in getting the web solutions can contact him through his website.” It is considered important element of marketing mix because it includes all those activities that help in making the goods and services available to the prospective buyers in the right quantity, at the right time and in right condition. Two main decisions involved in physical distribution are physical movement of goods from producers to consumers and choice of channels of distribution.
• Promotion: “Moreover, whenever the market is sluggish he tries to create demand by offering short-term incentives to the buyers.” Promotion refers to the set of activities undertaken by a marketer to inform the prospective buyers about the product and persuading them to make a purchase. The various components of promotion mix are advertising, sales promotion, personal selling and public relation.

Question 16. In today’s world, through social media, news spread in a flash. Moreover, if it is bad news, it acquires a speed that is virtually impossible to stop. Hence, all corporates are more susceptible to a tarnished image today than in any other day and age. The loss of goodwill may lead to decreased revenue, loss of clients or suppliers and fall in market share. Over the years, therefore, most of the companies have set up a separate department to manage the public opinions about them. The department works in close coordination with the various interest groups like consumers, government, suppliers etc. and strives to handle effectively if any controversies arise. In the context of above case:

• Identify the element of promotion mix being referred to in the above lines.
• Briefly explain any three points highlighting the role of this element of promotion mix as identified in part (1)
• The element of promotion mix being referred to in the above lines is Public Relations.

Question 17. Traditional trade or kirana stores constitute 90% of the FMCG (fast moving consumer goods) business in India. HUL is the market leader in FMCG with over 60 lakh outlets. According to industry estimates, Patanjali products are currently available in two lakh traditional retail outlets. ‘Availability of the product’ is the single largest driver of FMCG sales. A shopper research suggests that 30%-40% consumers shift preference if their favourite brand is not available at the store. In the context of above case:

• Identify the component of marketing mix being discussed in the above lines.
• State the two main decisions related to the concept identified in part (1).
• Name the type of channel of distribution adopted by HUL.
• The component of marketing mix being discussed in the above lines is place/physical distribution.
• physical movement of goods from producers to consumers
• choice of channels of distribution
• Indirect channel of distribution has been adopted by HUL. It is a two level channel i.e. (Manufacturer – wholesaler- retailer- consumer)

Question 18. Arun and Rukun are good friends. After doing a fashion designing course from a reputed institute, they have set up a garment factory in the rural area of Faridabad to manufacture trendy casual wear like jeans, T-shirts, shirts etc. under the brand name ‘Swatantra’. They have employed people from the nearby villages itself in the factory. Moreover, they wish to sell the products through local retailers in the villages and also through ‘Flipkart’. In the context of above case:

• Identify the elements of marketing mix being taken into consideration by Arun.
• Name the two methods of marketing adopted by them.
• State any two values that are being fulfilled by them.
• The elements of marketing mix being taken into consideration by Arun are product and place.
• The two methods of marketing adopted by them are both direct and indirect marketing.
• Generating employment
• Raising the standard of living of the people in the village

Question 19. Yogesh buys a new laptop for his son Mukesh on his birthday from a company owned retail outlet. After a few months, some parts of the laptop get damaged in 3, road accident. Yogesh approaches the dealer to get the damaged parts replaced with the new ones. But, he is told that the company does not provide any after sale service to the customers. Yogesh feels very dissatisfied as a consumer and woes that he will never buy this companies product ever again. In the context of above case:

• Identify the function of marketing being ignored by the company.
• As a business advisor, suggest any two services that will be very effective in enhancing brand loyalty for any such product.
• Name the appropriate redressal agency that he can approach in case he decides to file a case against the dealer.
• The function of marketing being ignored by the company is customer support services.
• Setting up a separate department for handling consumer complaints.
• Providing 365 days x 24 x 7 online assistance to the buyers for any maintenance or technical issues.
• Yogesh can file a complaint in the District forum

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Marketing Management Class 12 Business Studies Notes and Questions

Please refer to Marketing Management Class 12 Business Studies notes and questions with solutions below. These revision notes and important examination questions have been prepared based on the latest Business Studies books for  Class 12 . You can go through the questions and solutions below which will help you to get better marks in your examinations.

Class 12 Business Studies Marketing Management Notes and Questions

Q. 1. Zoom Udyog, a car manufacturing Co., has started its business with Zoom 800 and slowly launched Zoom-1000, Wagon-Z, Swy-fy etc. and offered various services like after sale services, availability of spare parts etc. Identify the element of marketing mix referred here.  Ans.  Product Q. 2. Radha found a worm crawling out of newly opened tetra pack of a juice manufactured by a reputed company, Zest, Ltd. She went back to the shopkeeper from whom the pack was purchased who directed her to call up the customer care centre. When all her efforts failed, she went to a consumer activist group to seek help. The group decided to help Radha and taken measures to impose restrictions on the sale of the firm’s products of the particular batch and urge customers to refrain from buying the products of the company. Zest Ltd. lost its image in the market. The CEO gives the responsibility of bringing back the lost image of the company to a Manager. 1. Identify the concept of Marketing Management which will help the Manager getting the firm out of the above crisis. 2. Also explain the role of above identified concept by stating any two points.  Ans. 1. Public Relations 2. Role of Public Relations: 1. Product Publicity: 2. Counseling: Q. 3. The manager of Impact Enterprise, dealing in cosmetics, is facing the problem of poor sales. Suggest the four promotional measures that he can undertake to improve the sales. Also, name the factors affecting their choice.  Ans.  The manager of Impact Enterprise, dealing in cosmetics, should take the following four promotional measures to improve the sales: 1. Advertising 2. Sales promotion 3. Personal selling 4. Publicity Factors affecting choice of promotional tool: 1. Nature of market 2. Nature of product 3. Promotions budget 4. Objectives of promotion Q. 4. A mobile company is launching a new high tech mobile phone in the market. Which department is going to look into the techniques iof promoting it?  Ans.  Public Relations (PR) Department Q. 5. Identify the Marketing Management philosophy adopted in the following cases: 1. Mansi, a shoe manufacturer for school students, decided to maximize her profit by producing and distributing at large scale and thereby reducing the average cost of production. 2. Nisha, a school bag manufacturer decided to improve the product for profit maximization and thus added a water bottle holder to the existing design. 3. Jasdeep, a dealer in school uniforms, decided to maximize his profit by using different aggressive promotional efforts. 4. Amar is engaged in manufacturing of refrigerators. He surveyed the market and found that customers need a refrigerator with a separate provision of water cooler in it. He decided to launch the same refrigerator in the market.  Ans. 1. Production concept 2. Product concept 3. Selling concept 4. Marketing concept Q. 6. Identify the method of sales-promotion in the following cases: 1. A mobile company offers a discount of Rs. 1000 to clear off excess inventory. 2. A customer gets Rs. 5 off on return of an empty wrapper while making a new purchase of the same product. 3. A Company offers a pack of 1/2kg of sugar with the purchase of a 5 kg bag of wheat flour. 4. A Company offers 40% of extra shaving cream in a pack of 500 gms. 5. Scratch a card and get a gold coin with the purchase of a cold drink. 6. Purchase goods worth Rs. 50,000 and get a holiday package worth Rs. 10,000 free. Ans. 1. Rebate 2. Refund 3. Product-combination 4. Quantity-gift 5. Instant draws and assigned gift 6. Usable Benefit / Lucky Draw Q. 7. ‘Various tools of communication are used by the marketers to promote their products.’ 1. Why do companies use all tools at the same time? 2. Name and explain the most commonly used non-personal tool of promotion which is paid for by the marketer. 3. Which tool of promotion will primarily be used for the following? 1. To promote or protect a company’s image or its individual products. 2. An existing product meant for mass usage by literate people. 3. To introduce a new product to a particular class of people through door-to-door visits. 4. To attract attention of the people by using incentives. (6 marks) Ans. 1. The companies use all tools at the same time because of the nature of market, nature of product, promotion budget and objectives of promotion being different at different times. 2. The most commonly used non-personal tool of promotion which is paid for by the marketer is advertising. It is a paid and non-personal form having an identified sponsor to promote an idea. 3. The tools of promotion used are: 1. Public Relations 2. Advertisements 3. Personal selling 4. Sales Promotion Q. 8. Good Living Ltd. manufactures mosquito repellent tables. These tablets are packed in strips of 12 tablets each. Each of these strips are packed in a cardboard box, 48 such boxes are then placed in a big corrugated box and delivered to various retailers for sale. State the purpose of packaging the tablets in a corrugated box.  Ans.  The packaging of tablets in a corrugated box is necessary for the purpose of storage, identification and transportation. Q. 9. Shreemaya Hotel in Indore was facing problem of low demand for its rooms due to off season. The Managing Director (MD) of the hotel, Mrs. Sakina was very worried. She called upon the Marketing Manager, Mr. Kapoor for his advice. He suggested, that the hotel should announce an offer of ‘3 days and 2 Nights hotel stay package with free breakfast and one day religious visit to Omkarehswar and Mahakaleshwar Temples’. The MD liked the suggestion very much. Identify the promotional tool, which can be used by the hotel through which large number of prospective pilgrimage tourists, all over the country and also abroad, can be reached, informed and persuaded to use the incentive.  Ans.  Sales Promotion Q. 10. “Every time I travelled, people asked me to bring them chips, khakra and pickles from all over the country,” says Anoushka. Finally, she and her colleague, Sumemet, decided to make out of it. They launched a face book bags, asked people what they wanted, and they came up with a list of about 100 places and tried up with two dozen vendors to begin with. They were servicing people from Jaipur who wanted spices from Kerala, people form Panipat who wanted halwa from Jammu and people from Delhi who ordered for fresh tea leaves form Darjeeling. Through their business they wished to bridge the gap between sellers nd buyers. The business is now worth millions. Explain any two important activities that Anoushka and Sumeet will have to be involved in for making the goods available to the customers at the right place, in the right quantity and at the right time.  Ans.  Activities / Components of Physical Distribution: (any two) 1. Order processing: 2. Transportation; 3. Warehousing: 4. Inventory Control: Q. 11. ‘Beauty Products Ltd’s is a natural and ethical beauty brand famous for offering organic beauty products for men and women. The company uses plant based materials for its products and is the No. 1 beauty brand in the country. It not Identify the marketing management philosophy being following by ‘Beauty Products Ltd.’  Ans.  Social marketing concept. Q. 12. ‘Haryaram’ is a famous chain selling a large variety of products in the Indian market. Their products include chips, biscuits, sweets and squashes. It charges a comparatively higher price than its competitors as it sells quality products. Besides, it offers regular discounts to its customers and easy credit terms to its retailers. It has five of its own retail shops. It also sells its products through various grocery stores to that the products are made available to customers at the right place, in the right quantity and at the right time. It regularly uses different communication tools to increase its sales. The above para describes the combination of variables used by Hayaram to prepare its market offering. Identify and explain the variables.  Ans.  The combination of variables used by Hayaram to prepare its market offering are: 1. Product ‘their products include chips, biscuits, sweets squashes.’ 2. Price ‘It offers regular discounts to its customers and easy credit terms to its retailers’. 3. Place / Physical Distribution ‘It has five of its own retail shops.’ or ‘It also sells its products through various grocery stores …right time.’ 4. Promotion ‘It regularly uses different communication tools to increase its sales.’ Q. 13. ‘Maruti Vega Ltd.’ entered into the market with coloured television and have now introduced products like audio systems, air-conditioners, washing machines, etc. the company is not only offering the products but also handling complaints and offering after-sales services. Identify the element of marketing-mix discussed here.  Ans.  Product/ Product mix. Q. 14. Radhika was a student of Business Studies of Call XII. Her father was a farmer who grew different varieties of rice and was well-versed about various aspects of rice cultivation. He was also selected by the government for a pilot-project on rice cultivation. As a project-work in Business Studies she decided to study the feasibility of marketing good quality rice at a reasonable price. Her father suggested her to use internet to gather customers’ views and opinions. She found that there was a huge demand for packaged organic rice. She knew that there were no pre-determined specification in case of rice because of which it would be difficult to achieve uniformity in the output. To differentiate the product form its competitors, she gave it the name of Malabari Organic Rice’ and classified it into three different varieties namely – Popular,, Classic and Supreme, based on the quality. She felt that these names would help her in product differentiation. Explain the three function of marketing, with reference to the above paragraph. ( Ans.  Functions of marketing, with reference to the above paragraph are: 1. Gathering and analyzing market information: 2. Standardization and Grading: 3. Branding: Q. 15. A Company was marketing water purifiers which were very popular due to their quality and after sales 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 the after sales services. As a result, its relations with customers got spoiled and the image of the company was damaged in the public. The top management became concerned when the profits for the current quarter fell steeply. On analysis, it was revealed that ignoring the after sales services was its reasons. Therefore, the company took all possible measures to protect and promote its favourable image in the eyes of the public. As a result, the goodwill of the company improved in the society. 1. Name and state the communication tool used by the marketer in the above case to improve its image. 2. Also explain role of the tool as identified in part (a) Ans. 1. Public Relations is being used as a promotional tool by the marketer. It refers to the practice of managing communication between an organization and its publics in order to create the maintain a positive image about itself and its products. 2. The role of public relations as a promotional tool is described below: 1. Public relations helps to create a positive image about the company in the eyes of various interest holders like consumers, government, suppliers etc. 2. It helps in launching new products as they may be accepted easily because of good reputation of business. 3. It helps the business to reinstate itself in the wake of controversies or prejudices etc. Q.16. Crackers Ltd., a fire-cracker manufacturing company launched some new products on 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 warning for use were not mentioned on the packets that led to many accidents. 1. Identify and explain the important product-related decision that was not taken into consideration by the company. 2. Also, identify any two values which were violated by the company. Ans. 1. The company has ignored ‘Labeling’. It is an important product-related decision. Labeling refers to the process of designing a label for a product containing product description and the relevant information which is likely to affect a prospective buyers decision in making a purchase.It may vary from a simple tag to a complex graphic. The two values being violated by the company are: 1. Abiding by law as child labour has been employed 2. Concern for human life as appropriate warnings were not placed on the label. Q. 17. ABC Crackers Ltd., a fire-cracker manufacturing company, launched some new products on the eve of Diwali in the market which attracted many buyers. To meet the increasing demand, the company employed people from nearby villages where there was a lot of unemployment. Because of the good behavior of the management with the employees, more and more people wanted to join the company. As the products were in great demand in the market, a competitor imitated the products. The products of the competitor were not accepted by the consumers as it was a status symbol to buy the products of ABC Crackers Ltd. because of their quality. 1. Identify and explain the product-related decision because of which consumers preferred the products of ABC Crackers Ltd. 2. Also, identify any two values which ACB Crackers Ltd. wanted to communicate to the society. Ans. 1. Branding is the product-related decision because of which consumers preferred the products of ABC Crackers Ltd. Branding is the process of assigning a name (brand name), sign or symbol (brand mark) or a combination of all to a product.Branding facilitates product differentiation, assists in advertising and display programmes, facilitates differential pricing, promotes consumers loyalty etc. The two values that ABC Crackers Ltd. wants to communicate to the society are: 1. Generating employment opportunities 2. Providing good working environment. Q. 18. As a project work in Business Studies, the Commerce students of Himachal Public School, Himachal Pradesh though of preparing apple jam from the apples grown in their school premises and sell it in the school annual fete. They approached the Principal who not only appreciated the students but also gave her consent for the same. The schooldecided to donate 50% of the revenue generated from the sale to a nearby orphanage. After the school fete, the school also decided to extend this project by providing employment to visually challenged and disadvantaged sections of society or regular basis. 1. Explain any two product-related decisions which the students had to take. 2. Suggest any two functions that the ‘label’ of the jam-bottle must perform. 3. Identify two values communicated to society by this project of Himachal Public School, Himachal Pradesh. Ans. 1. The two product-related decisions which the students had to take are branding and packaging. 2. The two important functions that the label of the jam – bottle must perform are: ● Describe the product and specify its contents: ● Helps in identification of the product or brand: 3. The two values communicated to the society by the project of Himachal Public School are: ● Generating employment opportunities ● Humanity Q. 19. Ajay was appointed as the marketing head of Alfa Enterprise, a manufacturer of toothpastes and toothbrushes. His target sale was 2000 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 counseling, some school children had not started brushing their teeth. He investigated and found that they could not start brushing their teeth. He investigated and found that they could not afford to buy toothbrush and toothpaste. So with due permission, he started donating 200 toothbrushes and toothpastes every month to the school. 1. Identify the channel of distribution Ajay would adopt for the distribution of toothpaste and toothbrushes and justify it by giving one reason. 2. State any two values which Ajay ants to communicate to society. Ans. 1. Ajay would adopt indirect channels of distribution for marketing of toothpaste and tooth brushes because it is a consumer product. It can be easily marked through longer channels, for example (Manufacturer – Wholesaler – Retailer – Consumer). 2. The two values that Ajay wants to communicate to the society are: 1. Good health 2. Social welfare Q. 20. Amar is engaged in the manufacturing of refrigerators. He surveyed the market and found that customers need a refrigerator with a separate provision of water cooler in it. He decided and launched the same refrigerator in the market. Identify and explain the marketing philosophy involved. Ans.  Amar is following the philosophy of marketing concept. The prime focus of marketing concept is to ‘find wants and fill them’. Therefore, the marketer first assesses the needs and preferences of its target market and manufacturers products accordingly in order to satisfy their needs and wants optimally. It aims at profit maximization through customer satisfaction. Q. 21. Mansi, a shoe manufacturer for school students, decided to maximize profits by producing and distributing shoes on a large-scale and thus reducing the average cost of production. 1. Identify the marketing management philosophy adopted by Mansi. 2. Explain this philosophy on the basis of the following: ● Main Focus ● Means and Ends Ans. 1. Mansi has adopted the production philosophy. 2. Means: The production philosophy can be brought into effect by making products affordable and widely available. Ends: The production philosophy aims at maximizing profits through high volume of production. Q. 22. Unilever has found a new way to make ice creams by using an ingredient called ‘ice structuring protein’ which is widely found in nature especially, in fishes which allows them to survive in freezing arctic waters. Combining ISP with stabilizer technology allows to make ice creams that don’t melt so easily thereby making it more convenient for small children and consumer in hot countries. In the context of above case: 1. Identify the component of marketing mix being taken into consideration by the company. 2. Explain briefly the function of marketing highlighted here. 3. List any two values that the company wants to communicate to the society. Ans. 1. The component of marketing mix being taken into consideration by the company is ‘Product’. 2. Product designing and development: Every marketer strives to achieve his marketing objectives by creating offerings to satisfy a need or a want. Therefore one of the core functions of marketing is to develop the product in the most effective and efficient way. Every marketer endeavours to add value to his product by introducing constant innovations in the product to enhance both its utility and attractiveness in the eyes of the potential buyers and gain a competitive edge. 3. The two values that the company wants to communicate to the society are: ● Responsibility towards consumers ● Technological advancement. Q. 23. Ranger India Limited, is an automobile manufacturer in India. It makes 1.5 million family cars every year. That’s one car every 12 seconds. It has a sales network of company approved retailers that spreads across 600 cities. In the context of above case: 1. Identify the type of the channel of distribution adopted by the company. 2. State the market related factors that are likely to affect the decision of a marketer about the choice of channel of distribution. Ans. 1. Indirect channel: One level channel f distribution adopted by the company. 2. The market related factors that are likely to affect the decision of a marketer about the choice of channel of distribution are explained below: 1. Size of market: 2. Geographical concentration of potential buyers: 3. Quantity purchased: Q. 24. As a global leader in the consumer electronics and entertainment industries, Sony has set forth ‘Road to Zero environmental plan’, to achieve a zero environmental effect by the year 2-050 by producing world-class products in a manner that both protects and promotes a healthy and sustainable planet. In the context of above case: 1. Identify the marketing philosophy being implemented by the company. 2. Outline the main focus and end of the relevant marketing philosophy. 3. State any two values that the company wants to communicate to the society. Ans. 1. Social marketing concept is being pursued by the company. 2. The main focus of this philosophy is on both the needs of the potential buyers as well as concern for the society at large. The ends include profit maximization through customer satisfaction and social welfare. 3. The two values that the company wants to communicate to the society are: 1. Concern for the environment 2. Welfare of the society Q. 25. As the number of people making online purchases has increase manifolds, there is a growing concern about the disposal and management of packaging waste. Every item bought is delivered with excess packaging and sometimes even non-biodegradable materials are used. In the context of above case: 1. Name the other two levels of packaging that the marketers may be using besides the immediate package. 2. Describe briefly any two points highlighting the functions of packaging. 3. State any two factors that should be kept in mind by the marketers while designing the packaging of its products. Ans. 1. Secondary packaging and Transportation packaging. 2. The functions of packaging in the marketing of goods and services is explained below: 1. Product Identification: 2. Product Protection: 3. The marketers should use biodegradable packaging material and packaging should enhance the usability of the products. Q. 26. Rastro Inc., is a multinational corporation that creates consumer electronics, personal computers, servers and computer software. The company also has a chain of retail stores known as Restro Stores. Despite high competition, Restro has succeeded in creating demand for its products, giving the company power over prices through product differentiation, innovation advertising and ensured brand loyalty. In the context of above case: 1. What is product differentiation? 2. Name any one function of marketing that facilitates product differentiation. 3. Identify the component of promotion mix being used by the company by Quoting lines form the paragraph. 4. Describe briefly the pricing objective pursued by the company. Ans. 1. Product differentiation is a strategy used by the marketers to gain an edge over its competitors by creating a distinguished perception of the product in the minds of the potential buyers in terms of its utilities. 2. Branding is a function of marketing that facilitates product differentiation. 3. Advertising is the component of promotion mix being used by the company “Giving the company power over prices through product differentiation, innovative advertising and ensured brand loyalty.” 4. Attaining product quality leadership: Besides aiming at profit maximization as its pricing objective Rastro Inc. seeks to establish a unique place for its products in the market by offering superior quality products which can be easily distinguished from its competitors. As a result, it is able to use differential pricing i.e. fixing up relatively higher prices for tits products. Q. 27. Reema, Vibha and Ratna are three women entrepreneurs who are engaged in dealing with handicraft goods under the brand name ‘Gujkriti’ through a chain of retail outlets at five different places in delhi. Their outsource all their products from tribal and rural omen in the state of Rajasthan. Reema is of the opinion that in order to increase the sale of their products, they should advertise about it on television. But, Ratna is arguing that advertisement expenses will add to cost of operation. Whereas Vibha is insisting that they should set up an online portal to market their products across the globe. In the context of above case: 1. Identify the tool of promotion being taken into consideration by Reema by quoting lines from the paragraph. 2. How is the channel of distribution being suggested by Vibha different from the channel of distribution being used by them presently? 3. Do you think that Ratna is justified in here argument that advertisement expenses will add to cost of operations? Ans. 1. The tool of promotion being taken into consideration by Reema is advertising. (Reema is of the opinion that in order to increase the sale of their products, they should advertise about it on television.) 2. Vibha is insisting that they should set up an online portal to market their products across the globe i.e. adopting direct marketing or zero-level channel (manufacturer – consumer). Whereas at present they are using indirect channels of distribution i.e. one level channel (manufacturer – retailer – consumer) by operating through a chain of retail outlets at five different places in Delhi. 3. No, Ratna is not fully justified in her argument although advertising as a tool of promotion is often criticized on the ground that it adds to the cost of distribution which is passed on to the consumers in the form of higher prices. Therefore, it increases the burden on the consumers. But, this argument is not entirely true because advertisements help to increase demand for the product. In order to meet the increased demand the production levels have to be raised. As a result, the business is able to reap advantage of economies of scale and eventually the cost of production per unit comes down and benefits the buyers as the product’s prices are reduced consequently. Q. 28. Arvind is planning to start a company manufacturing room fresheners. He intends to use natural fruit extracts for adding fragrance to them. He estimates an investment of Rs. 20 crores to set up the factory. As it is difficult for him to raise the entire capital amount alone, he gives a partnership offer to his school friend, Sanjay who is an angel investor. Sanjay, after being convinced about the feasibility of the project, accepts his offer. Sanjay tells Arvind that they should also focus on other important decisions related  to the product ‘room fresheners’ besides deciding about its features, variety and quality. Branding is one of the important such decision. In the context of above case: 1. Name any other two important decisions related to a product. 2. Why is branding considered as an important function by the marketers? Give any one reason in support of your answer. 3. State any four features of a good brand name. Ans. 1. Labeling and Packaging are the two important decisions related to a product. 2. Branding is considered to be a very important decision by the marketers because it facilitates product differentiation. Through branding the prospective buyers are able to bring about a distinction between a company product and its substitutes available in the market. This helps the company to obtain a desirable market share. 3. The four features of a good brand name are stated below: 1. The brand name should be short, easy to pronounce, spell, recognize and remember e.g., Ponds. 2. A brand should suggest the product’s benefits and qualities e.g. Sunsilk. 3. A brand name should be distinctive e.g., Lotus. 4. It should be capable of being registered and protected legally. Q. 29. Suraj is a small entrepreneur involved in the manufacturing of hair wax. He finds that cost of production of 100 gm of hair wax is Rs. 250. He has decided to keep a margin of 15% as profit moreover, he has assessed that there is a free competition in this product segment. In the context of above case: 1. Identify the function of marketing being performed by Suraj. 2. State briefly the two factors that he is taking into consideration while performing the function as identified in part (a) Ans. 1. Pricing is the function of marketing being performed by Suraj. 2. The two factors that he is taking into consideration while performing the pricing function are as follows. 1. Cost of product: 2. Degree of competition: Q. 30. After doing a diploma in entrepreneurship, Farihad started his own confectionary business. He started doing a lot of hard work and used the recipes taught by his grandmother in various preparations. He also learnt many recipes from online sites and television programmes. He decided to keep the price of the products low initially and also informed his customers about the goodness of the items sold by them. However, he didn’t mention on the package of each item weather it contained eggs or not. As a result, vegetarian people became hesitant in buying things from his shop as they had to verbally inquire from him about the inclusion of eggs in the preparation of various items. In the context of above case: 1. Name the important aspect related to the marketing of products which has been ignored by Farihad. 2. Explain briefly any free functions performed by the aspect as identified in part (a). 3. Mention the right of consumer being violated by Farihad. Ans. 1. The important aspect related to the marketing of products which has been ignored by Farihad is Labeling. 2. The three important functions performed by labeling are: 1. Describes the product and specifies its contents: 2. Helps in identification of the product or brand: 3. Enables grading of products: 1. The Right to information is being overlooked by the company in the above mentioned case. According to the right to information, a consumer has the right to get complete information about the product he / she intends to buy including its contents, date of manufacture, date of expiry, price, quantity, directions for use etc. Also, as per law, it is mandatory for the marketers to provide complete information about the product / service to the buyers. Q. 31. ‘Shudh Hava Ltd.’ is engaged in manufacturing of air conditioners and desert coolers. The company offers a wide range of products to meet the requirements of people from varied income groups. Recently the company has developed a new product, an air purifier that improves the quality of air by filtering out all allergens and microbes. The company introduced the product on two variants namely ‘Nano Tech’ and ‘Nano Tech Premium’. In order to persuade people to buy the product it is offering easy payment options in equal monthly installments for different time periods. Moreover, every buyer will be offered ‘scratch a card’ option to win instant gifts like decorative items, T-shirts etc. the company is also planning to organize competitive events based on skill and luck in various malls in different cities. In the context of above case: 1. Name and explain the ‘type of promotion strategy’ adopted by the company to boost the sales of air purifiers. 2. Also, identify the various techniques of this promotional strategy being used by the company by quoting liens from the paragraph. 3. “The company offers a wide range of products to meet the requirements of people from varied income group.” Name the relevant consumer right being promoted by the company. Ans. 1. The type of promotion strategy adopted by the company to boost the sales of air purifiers is Sales Promotion. Sales Promotion includes the various types of short term incentives offered by a marketer to increase the sale of a product or service. The various techniques of sales promotion being used by the company are listed below: 1. Full finance @ 0% – “It is offering easy payment options in equal monthly installments for different time periods.” 2. Instant draws and assured gifts – “every buyer will be offered ‘scratch a card’ option to win instant gifts like decorative items, T-shirts etc.” 3. Contests – “The company is also planning to organize competitive events based on skill and luck in the various malls in the different cities.” 1. Right to Choose is the consumer right being promoted by the company Q. 32. Nischay, after completing his masters in computer engineering decided to start his own business. He visited his uncle Mr. Jaiprakash who has been running a successful business in web designing. He shared with Nischay that the main reason for his success in the business lies in his approach of building web sites according to the specifications of the clients but also providing continuous online assistance to them and handling their grievances effectively and doing all this at a profit. He provides these services at competitive prices. Anybody interested in getting the web solutions can contact him through his website. Moreover, whenever the market is sluggish he tries to create demand by offering short-term incentives to the buyers. In the context of above case: 1. Define the term ‘Marketing Management’. 2. Briefly explain the various elements of marketing mix being pursued by Mr. Jaiprakash by quoting liens from the para. Ans. 1. Marketing management is “the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value” – Philip Kotler 2. The various elements of marketing mix being pursued by MR. Jaiprakash area as follows: 1. Product: “his business is not only restricted to designing web sites according to the specifications of the clients but also providing continuous online assistance to them and handling their grievances’ effectively.” 2. Price: “doing all this at a profit. He provides these services at competitive price.” 3. Place: “Anybody interested in getting the web solutions can contact him through his website.” 4. Promotion: “Moreover, ,whenever the market is sluggish he tries to create demand by offering short-term incentives to the buyers.” Q. 33. In today’s world, through social media, news spread in a flash. Moreover, if it is bad news, it acquires a speed that is virtually impossible to stop. Hence, all corporate are more susceptible to a tarnished image today than in any other day and age. The loss of goodwill may lead to decreased revenue, loss of clients or suppliers and fall in market share. Over the year, therefore, most of the companies have set up a separate department to manage the public opinions about them. The department works in close coordination with the various interest groups like consumers, government, suppliers etc. and strives to handle effectively if any controversies arise. In the context of above case: 1. Identify the element of promotion mix being referred to in the above liens. 2. Briefly explain any three points highlighting the role of this element of promotion mix as identified in part (a) Ans. 1. The element of promotion mix being referred to in the above lines is Public Relations. 2. The role of public relations as a promotional tool is described below: 1. Public relations helps to create a positive image about the company in the eyes of various interest holders like consumers, government, suppliers etc. 2. It helps in launching new products as they may be accepted easily because of good reputation of business. 3. It helps the business to reinstate itself in wake of controversies or prejudices etc. Q. 34. Traditional trade or kriana stores constitute 90% of the FMCG (fast moving consumer goods) business in India. HUL is the market leader in FMCG with over 60 lakh outlets. According to industry estimates, Patanjali products are currently available in two lakh traditional retail outlets. ‘Availability of the product’ is the single largest driver of FMCG sales. A shopper research suggests that 30% – 40% consumers shift preference if their favourite brand is not available at the store. In the context of above case: 1. Identify the component of marketing mix being discussed in the above liens. 2. State the two main decisions related to the concept identified in part (a) 3. Name the type of channel of distribution adopted by HUL. Ans. 1. The component of marketing mix being discussed in the above liens is place / physical distribution. 2. The two main decisions involved in physical distribution are: 1. Physical movement of goods from producers to consumers 2. Choice of channels of distribution 1. Indirect channel of distribution has been adopted by HUL. It is a two level channel i.e. (Manufacturer – wholesaler – retailer – consumer) Q. 35. Arun and Rukun are good friends. After doing a fashion designing course from a reputed institute, they have set up a garment factory in the rural area of Faridabad to manufacture trendy casual wear like jeans, T-shirts, shirts etc. under the brand name ‘Swatantra’. They have employed people from the nearby villages itself in the factory. Moreover, they wish to sell the products through local retailers in the villages and also through “Flipkart’. In the context of above case: 1. Identify the elements of marketing mix being taken into consideration by Arun. 2. Name the two methods of marketing adopted by them. 3. State any two values that are being fulfilled by them. Ans. 1. The elements of marketing mix being taken into consideration by Arun are product and place. 2. The two methods of marketing adopted by them are both direct and indirect marketing. 3. Two values that are being fulfilled by the are: 4. Generating employment 5. Raising the standard of living of the people in the village Q. 36. Yogesh buys a new laptop for his son Mukesh on his birthday from a company owned retail outlet. After a few months, some parts of the laptop get damaged in a road accident. Yogesh approaches the dealer to get the damaged parts replaced with the new ones. But, he is told that the company does not provide any after sale service to the customers. Yogesh feels very dissatisfied as a consumer and woes that he will never buy this companies product ever again. In the context of above case: 1. Identify the function of marketing being ignored by the company. 2. As a business advisor, suggest any two services that will be very effective in enhancing brand loyalty for any such product. 3. Name the appropriate redressal agency that he can approach in case he decides to file a case against the dealer. Ans. 1. The function of marketing being ignored by the company is customer support services. 2. As a business advisor, I would suggest the introduction of the following services that will be very effective in enhancing brand loyalty for any such product. 1. Setting up a separate department for handling consumer complaints. 2. Providing 365 days × 24 × 7 online assistance to the buyers for any maintenance or technical issues. 3. Yogesh can file a complaint in the District forum. Q. 37. Mr. Rajiv wants to buy LCD T.V. for his family. Now he has come to Jagota Electronics, Model Town, after coming to shop he get confused. Write the name of promotion tool which has brought him to the shop and promotion tool needed now. Also write the four points of importance of latter tool. Ans.  The just promotion tool which brought Rajiv to the shop is advertisement and the promotion tool required now is personnel selling. Q. 38. Mr. Rajiv, the sales executive of ABC Ltd. possess good marketing techniques, his techniques involve oral presentation of message, convincing the customer with face to face interaction, etc. Ans. 1. Name the element of marketing mix under which the above technique fall. 2. Identify the element used by Rajiv. 3. Give any three merits of that technique: 1. Promotion 2. Personal Selling 3. Merits of Personal Selling Q. 39. ITC started its business with Jobaico Industry later on its entered in Hotel Industry, Consumer goods industry, stationery, etc. ITC assured quality to customer and kept company’s name as its identity. This help the customers in product identification and hence ensured quality. It also built up their confidence and help in increasing their level of satisfaction. 1. Name the element of marketing mix referred in above para. 2. Name the other elements of marketing mix. 3. Name the concept which assure quality and help in identification of product. 4. Identify the value emphasized by ITC. Ans. 1. Product Mix. 2. Other elements: Price mix, Place mix, Promotion mix. 3. Concept which help in identifying the product and assure quality is branding. 4. (a) Value of supplying quality product. (b) Value of building confidence among customers. Q. 40. Ajay was appointed as a marketing head of Alfa Enterprise manufactures of toothpaste and tooth brushes. His target sale was zero 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 counseling some school children had not started brushing their teeth. He investigated and found that they could not afford to buy toothbrush and toothpaste. So with due permission the started donating 200 toothbrush and toothpaste to schools. 1. Identify the channels of distribution Ajay would adapt for distribution of toothbrush and toothpaste, justify by giving reasons. 2. State any two values which Ajay want to communicate to society. Ans. 1. The channel of distribution Ajay would adapt is indirect because he is dealing with consumer goods. 2. Values which Ajay wants to communicate to society are: 1. Charity 2. Concern for underprivileged 3. Hygience 4. Sensitivity towards health. Q. 41. Nisha, a school bag manufacturer decided to improve the product for profit maximization and thus added a water bottle holder to the existing design. 1. Identify the marketing management philosophy adopted by Nisha and 2. Explain this philosophy on the basis of: 1. Main focus and 2. Means and ends. Ans.  Product concept. Q. 42. Ayesha is manufacturing lunch boxes for school-going children. To maximize profit she decided to improve the quality and added a warmer for the lunch boxes. Due to this improvement in the product, the sale is increasing day by day. Identify and explain the marketing philosophy involved. Ans.  Product concept. Q. 43. Mansi, a shoe manufacturer for school students, decided to maximize her profit by producing and distributing at large scale and thereby reducing the average cost of production: 1. Identify the marketing management philosophy adopted by Mansi. 2. Explain this philosophy on the basis iof: 1. Main focus 2. Means and ends. Ans.  (i) Production concept. (ii) Give difference, Q. 44. Vasvi purchased a bottle of pickle from the local grocery shop. The information provided on the bottle was not clear. She fell sick on consuming it. She filed a case in the District forum under the Consumer Protection Act and got the relief. 1. Identify the important aspect neglected by the marketer in the above case. 2. Explain briefly the functions of the aspect identified in (a) above. OR Ashima purchased a bottle of tomato-sauce from the local grocery shop. The information provided on the bottle was not clear. She fell sick on consuming it. She filed a case in the District Forum under the Consumer Protection Act and got the relief. 1. Identify the important aspect neglected by the marketer in the above case. 2. Explain briefly the functions of the aspect identified in (a) above. Ans. 1. The marketer had overlooked the Labelling as it was not done appropriately for the product. 2. The functions of labeling are detailed below: 1. Describes the product and specifies its contents: 2. Helps in identification of the product or brand: Q. 45. Radha found a worm crawling out of newly opened tetra pack of a juice manufactured by a reputed company, Zest, Ltd. She went back to the shopkeeper from whom the pack was purchased who directed her to call up the customer care centre. When all her efforts failed, she went to consumer activist group to seek help. The group decided to help Radha and take measures to impose restrictions on the sale of the firm’s products of the particular batch and urge customers to refrain from buying the products of the company. Zest Ltd. lost its image n the market. The CEO gives the responsibility of bringing back the lost image of the company to a Manager. 1. Identify the concept of Marketing Management which will help the Manager getting the firm out of the above crisis. 2. Also explain the role of above identified concept by stating any two points. Ans. 1. Public Relations. 2. Role of public relations can be discussed with respect to the functions which the department performs: (any two) 1. Press relations 2. Product publicity 3. Corporate communication 4. Lobbying. 5. Counseling.

Important Notes for NCERT Class 12 Business Studies Chapter Marketing Management

Introduction: Marketing management is an important functional area of business. It is the process of planning, organising, directing and controlling the activities related to marketing of goods and services to satisfy customer’s needs & achieve organisational goals. Functions of Marketing / Marketing activities 1. Marketing research:  Gathering and analysing marketing information i.e. what the customers want to buy, when they are likely to buy in what quantities do they buy, from where do they buy etc. 2. Marketing planning:  Specific plan for increasing the level of production, promotion of the products etc and specify the action programmes to achieve these objectives. 3. Product designing and development;  Marketer must take decision like, what-product? Which model / size? brand name? Packaged? quality level? So that customer needs are satisfied. 4. Buying & assembling:  e.g., car. Raw material like steel, tyres, batteries, seats, steering wheels etc are bought & them assembled in the form of a complete product. 5. Packing / Labelling:  designing the package & labelling. 6. Branding:  Creating a distinct identity of the product from that of competitors e.g. Videocon washing machine. Concepts & Philosophies of Marketing: – 1. Production concept:  Profits could be maximised by producing products at a large scale, thereby reducing average cost of production. Drawback: Customer do not always buy inexpensive products. 2. Product concept:  Business goals lies in making high quality products as customer favour them. 3. Sales Concept:  Firms must undertake aggressive selling & promotion efforts to make customers buy their products. Marketing Mix: Marketing mix refers to ingredients or the tools or the variables which the markets mixes in order to interact with a particular market. Elements / 4 Ps of Marketing mix 1.  Product Mix: Product live e.g. Hindustan Lever Limited – Colgate, lifebuoy etc. 2.  Price Mix: Value (Money) in lieu of product / Service received by seller from a buyer. 3.  Promotion mix: informing the customers about the products & persuading them to buy the same. 4.  Place Mix : Physical distribution : Various decision regarding distribution of products.

We hope the above  Marketing Management Class 12 Business Studies  are useful for you. If you have any questions then post them in the comments section below. Our teachers will provide you an answer. Also refer to  MCQ Questions for Class 12 Business Studies

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Case Studies - Marketing Management | Business Studies (BST) Class 12 - Commerce PDF Download

Q. 1. Zoom Udyog, a car manufacturing Co., has started its business with Zoom 800 and slowly launched Zoom-1000, Wagon-Z, Swy-fy etc. and offered various services like after sale services, availability of spare parts etc. Identify the element of marketing mix referred here.                              (1 mark)

Ans.  Product 

Q. 2. Radha found a worm crawling out of newly opened tetra pack of a juice manufactured by a reputed company, Zest, Ltd.  She went back to the shopkeeper from whom the pack was purchased who directed her to call up the customer care centre.  When all her efforts failed, she went to a consumer activist group to seek help.  The group decided to help Radha and taken measures to impose restrictions on the sale of the firm’s products of the particular batch and urge customers to refrain from buying the products of the company.  Zest Ltd. lost its image in the market.  The CEO gives the responsibility of bringing back the lost image of the company to a Manager.

• Identify the concept of Marketing Management which will help the Manager getting the firm out of the above crisis.
• Also explain the role of above identified concept by stating any two points. (4 Marks)
• Public Relations
• Role of Public Relations:
• Product Publicity:
• Counseling:

  Q. 3. The manager of Impact Enterprise, dealing in cosmetics, is facing the problem of poor sales.  Suggest the four promotional measures that he can undertake to improve the sales.  Also, name the factors affecting their choice.                         (4 Marks)

Ans.  The manager of Impact Enterprise, dealing in cosmetics, should take the following four promotional measures to improve the sales:

• Advertising
• Sales promotion
• Personal selling

Factors affecting choice of promotional tool:

• Nature of market
• Nature of product
• Promotions budget
• Objectives of promotion

Q. 4. A mobile company is launching a new high tech mobile phone in the market.  Which department is going to look into the techniques iof promoting it? 

   (1 Mark)

Ans.  Public Relations (PR) Department

Q. 5. Identify the Marketing Management philosophy adopted in the following cases:

• Mansi, a shoe manufacturer for school students, decided to maximize her profit by producing and distributing at large scale and thereby reducing the average cost of production.
• Nisha, a school bag manufacturer decided to improve the product for profit maximization and thus added a water bottle holder to the existing design.
• Jasdeep, a dealer in school uniforms, decided to maximize his profit by using different aggressive promotional efforts.
• Amar is engaged in manufacturing of refrigerators.  He surveyed the market and found that customers need a refrigerator with a separate provision of water cooler in it.  He decided to launch the same refrigerator in the market.             (4 Marks)
• Production concept
• Product concept
• Selling concept
• Marketing concept

Q. 6. Identify the method of sales-promotion in the following cases:

• A mobile company offers a discount of Rs. 1000 to clear off excess inventory.
• A customer gets Rs. 5 off on return of an empty wrapper while making a new purchase of the same product.
• A Company offers a pack of 1/2kg of sugar with the purchase of a 5 kg bag of wheat flour.
• A Company offers 40% of extra shaving cream in a pack of 500 gms.
• Scratch a card and get a gold coin with the purchase of a cold drink.
• Purchase goods worth Rs. 50,000 and get a holiday package worth Rs. 10,000 free.                                (6 Marks)
• Product-combination
• Quantity-gift
• Instant draws and assigned gift
• Usable Benefit / Lucky Draw

Q. 7. ‘Various tools of communication are used by the marketers to promote their products.’

• Why do companies use all tools at the same time?
• Name and explain the most commonly used non-personal tool of promotion which is paid for by the marketer.
• Which tool of promotion will primarily be used for the following?
• To promote or protect a company’s image or its individual products.
• An existing product meant for mass usage by literate people.
• To introduce a new product to a particular class of people through door-to-door visits.
• To attract attention of the people by using incentives.                       (6 marks)
• The companies use all tools at the same time because of the nature of market, nature of product, promotion budget and objectives of promotion being different at different times.
• The most commonly used non-personal tool of promotion which is paid for by the marketer is advertising. It is a paid and non-personal form having an identified sponsor to promote an idea.
• The tools of promotion used are:
• Advertisements
• Sales Promotion

Q. 8. Good Living Ltd. manufactures mosquito repellent tables.  These tablets are packed in strips of 12 tablets each.  Each of these strips are packed in a cardboard box, 48 such boxes are then placed in a big corrugated box and delivered to various retailers for sale.  State the purpose of packaging the tablets in a corrugated box.                                (1 Mark)

Ans.  The packaging of tablets in a corrugated box is necessary for the purpose of storage, identification and transportation.

Q. 9. Shreemaya Hotel in Indore was facing  problem of low demand for its rooms due to off season.  The Managing Director (MD) of the hotel, Mrs. Sakina was very worried.  She called upon the Marketing Manager, Mr. Kapoor for his advice.  He suggested, that the hotel should announce an offer of ‘3 days and 2 Nights hotel stay package with free breakfast and one day religious visit to Omkarehswar and Mahakaleshwar Temples’.  The MD liked the suggestion very much.  Identify the promotional tool, which can be used by the hotel through which large number of prospective pilgrimage tourists, all over the country and also abroad, can be reached, informed and persuaded to use the incentive.                                  (1 Mark)

Ans.  Sales Promotion

Q. 10. “Every time I travelled, people asked me to bring them chips, khakra and pickles from all over the country,” says Anoushka.  Finally, she and her colleague, Sumemet, decided to make out of it.  They launched a face book bags, asked people what they wanted, and they came up with a list of about 100 places and tried up with two dozen vendors to begin with. They were servicing people from Jaipur who wanted spices from Kerala, people form Panipat who wanted halwa from Jammu and people from Delhi who ordered for fresh tea leaves form Darjeeling.  Through their business they wished to bridge the gap between sellers nd buyers. The business is now worth millions.

Explain any two important activities that Anoushka and Sumeet will have to be involved in for making the goods available to the customers at the right place, in the right quantity and at the right time.                                                                                                                     (4 Marks)

Ans.  Activities / Components of Physical Distribution:                      (any two)

• Order processing:
• Transportation;
• Warehousing:
• Inventory Control:

Q. 11. ‘Beauty Products Ltd’s is a natural and ethical beauty brand famous for offering organic beauty products for men and women.  The company uses plant based materials for its products and is the No. 1 beauty brand in the country.  It not Identify the marketing management philosophy being following by ‘Beauty Products Ltd.’                         (1 Mark)

Ans.  Social marketing concept.

Q. 12. ‘Haryaram’ is a famous chain selling a large variety of products in the Indian market.  Their products include chips, biscuits, sweets and squashes.  It charges a comparatively higher price than its competitors as it sells quality products.  Besides, it offers regular discounts to its customers and easy credit terms to its retailers.  It has five of its own retail shops.  It also sells its products through various grocery stores to that the products are made available to customers at the right place, in the right quantity and at the right time.  It regularly uses different communication tools to increase its sales.

The above para describes the combination of variables used by Hayaram to prepare its market offering.  Identify and explain the variables.        (6 Marks)

Ans.  The combination of variables used by Hayaram to prepare its market offering are:

• Product     :       ‘their products include chips, biscuits, sweets squashes.’
• Price         :       ‘It offers regular discounts to its customers and easy credit terms to its retailers’.
• Place / Physical Distribution     :      five of its own retail  shops.’       or             ‘It also sells its products through various grocery stores …right time.’
• Promotion   :     ‘It regularly uses different communication tools to increase its sales.’

Q. 13. ‘Maruti Vega Ltd.’ entered into the market with coloured television and have now introduced products like audio systems, air-conditioners, washing machines, etc.  the company is not only offering the products but also handling complaints and offering after-sales services.  Identify the element of marketing-mix discussed here.                    (1 Mark)

Ans.  Product/ Product mix.

Q. 14. Radhika was a student of Business Studies of Call XII.  Her father was a farmer who grew different varieties of rice and was well-versed about various aspects of rice cultivation.  He was also selected by the government for a pilot-project on rice cultivation.  As a project-work in Business Studies she decided to study the feasibility of marketing good quality rice at a reasonable price.  Her father suggested her to use internet to gather customers’ views and opinions.  She found that there was a huge demand for packaged organic rice.  She knew that there were no pre-determined specification in case of rice because of which it would be difficult to achieve uniformity in the output.  To differentiate the product form its competitors, she gave it the name of Malabari Organic Rice’ and classified it into three different varieties namely – Popular,, Classic and Supreme, based on the quality.  She felt that these names would help her in product differentiation.

Explain the three function of marketing, with reference to the above paragraph.     (6 Marks)

Ans.  Functions of marketing, with reference to the above paragraph are:

• Gathering and analyzing market information:
• Standardization and Grading:

Q. 15. A Company was marketing water purifiers which were very popular due to their quality and after sales 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 the after sales services.  As a result, its relations with customers got spoiled and the image of the company was damaged in the public.  The top management became concerned when the profits for the current quarter fell steeply.  On analysis, it was revealed that ignoring the after sales services was its reasons.  Therefore, the company took all possible measures to protect and promote its favourable image in the eyes of the public.  As a result, the goodwill of the company improved in the society.

• Name and state the communication tool used by the marketer in the above case to improve its image.
• Also explain role of the tool as identified in part (a)
• Public Relations is being used as a promotional tool by the marketer.  It refers to the practice of managing communication between an organization and its publics in order to create the maintain a positive image about itself and its products.
• The role of public relations as a promotional tool is described below:
• Public relations helps to create a positive image about the company in the eyes of various interest holders like consumers, government, suppliers etc.
• It helps in launching new products as they may be accepted easily because of good reputation of business.
• It helps the business to reinstate itself in the wake of controversies or prejudices etc.

Q.16. Crackers Ltd., a fire-cracker manufacturing company launched some new products on 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 warning for use were not mentioned on the packets that led to many accidents.

• Identify and explain the important product-related decision that was not taken into consideration by the company.
• Also, identify any two values which were violated by the company.
• The company has ignored ‘Labeling’.  It is an important product-related decision.

Labeling refers to the process of designing a label for a product containing product description and the relevant information which is likely to affect a prospective buyers decision in making a purchase.It may vary from a simple tag to a complex graphic.

• The two values being violated by the company are:
• Abiding by law as child labour has been employed
• Concern for human life as appropriate warnings were not placed on the label.

Q. 17. ABC Crackers Ltd., a fire-cracker manufacturing company, launched some new products on the eve of Diwali in the market which attracted many buyers.  To meet the increasing demand, the company employed people from nearby villages where there was a lot of unemployment.  Because of the good behavior of the management with the employees, more and more people wanted to join the company.  As the products were in great demand in the market, a competitor imitated the products.  The products of the competitor were not accepted by the consumers as it was a status symbol to buy the products of ABC Crackers Ltd. because of their quality.

• Identify and explain the product-related decision because of which consumers preferred the products of ABC Crackers Ltd.
• Also, identify any two values which ACB Crackers Ltd. wanted to communicate to the society.
• Branding is the product-related decision because of which consumers preferred the products of ABC Crackers Ltd.

Branding is the process of assigning a name (brand name), sign or symbol (brand mark) or a combination of all to a product.Branding facilitates product differentiation, assists in advertising and display programmes, facilitates differential pricing, promotes consumers loyalty etc.

• The two values that ABC Crackers Ltd. wants to communicate to the society are:
• Generating employment opportunities
• Providing good working environment.

Q. 18. As a project work in Business Studies, the Commerce students of Himachal Public School, Himachal Pradesh though of preparing apple jam from the apples grown in their school premises and sell it in the school annual fete.  They approached the Principal who not only appreciated the students but also gave her consent for the same.  The school decided to donate 50% of the revenue generated from the sale to a nearby orphanage.  After the school fete, the school also decided to extend this project by providing employment to visually challenged and disadvantaged sections of society or regular basis.

• Explain any two product-related decisions which the students had to take.
• Suggest any two functions that the ‘label’ of the jam-bottle must perform.
• Identify two values communicated to society by this project of Himachal Public School, Himachal Pradesh.
• The two product-related decisions which the students had to take are branding and packaging.
• The two important functions that the label of the jam – bottle must perform are:
• Describe the product and specify its contents:
• Helps in identification of the product or brand:

      3. The two values communicated to the society by the project of Himachal Public School are:

Q. 19. Ajay was appointed as the marketing head of Alfa Enterprise, a manufacturer of toothpastes and toothbrushes.  His target sale was 2000 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 counseling, some school children had not started brushing their teeth.  He investigated and found that they could not start brushing their teeth.  He investigated and found that they could not afford to buy toothbrush and toothpaste.  So with due permission, he started donating 200 toothbrushes and toothpastes every month to the school.

• Identify the channel of distribution Ajay would adopt for the distribution of toothpaste and toothbrushes and justify it by giving one reason.
• State any two values which Ajay ants to communicate to society.
• Ajay would adopt indirect channels of distribution for marketing of toothpaste and tooth brushes because it is a consumer product.  It can be easily marked through longer channels, for example (Manufacturer – Wholesaler – Retailer – Consumer).
• The two values that Ajay wants to communicate to the society are:
• Good health
• Social welfare

Q. 20. Amar is engaged in the manufacturing of refrigerators.  He surveyed the market and found that customers need a refrigerator with a separate provision of water cooler in it.  He decided and launched the same refrigerator in the market.  Identify and explain the marketing philosophy involved.

Ans.  Amar is following the philosophy of marketing concept.  The prime focus of marketing concept is to ‘find wants and fill them’.  Therefore, the marketer first assesses the needs and preferences of its target market and manufacturers products accordingly in order to satisfy their needs and wants optimally.  It aims at profit maximization through customer satisfaction.

Q. 21. Mansi, a shoe manufacturer for school students, decided to maximize profits by producing and distributing shoes on a large-scale and thus reducing the average cost of production.

• Identify the marketing management philosophy adopted by Mansi.
• Explain this philosophy on the basis of the following:
•   Main Focus
• Means and Ends
• Mansi has adopted the production philosophy.
• Means: The production philosophy can be brought into effect by making products affordable and widely available.

        Ends: The production philosophy aims at maximizing profits through high volume of production.

Q. 22. Unilever has found a new way to make ice creams by using an ingredient called ‘ice structuring protein’ which is widely found in nature especially, in fishes which allows them to survive in freezing arctic waters.  Combining ISP with stabilizer technology allows to make ice creams that don’t melt so easily thereby making it more convenient for small children and consumer in hot countries.

In the context of above case:

• Identify the component of marketing mix being taken into consideration by the company.
• Explain briefly the function of marketing highlighted here.
• List any two values that the company wants to communicate to the society.
• The component of marketing mix being taken into consideration by the company is ‘Product’.
• Product designing and development: Every marketer strives to achieve his marketing objectives by creating offerings to satisfy a need or a want.  Therefore one of the core functions of marketing is to develop the product in the most effective and efficient way.  Every marketer endeavours to add value to his product by introducing constant innovations in the product to enhance both its utility and attractiveness in the eyes of the potential buyers and gain a competitive edge.
• The two values that the company wants to communicate to the society are:
• Responsibility towards consumers
• Technological advancement.

Q. 23. Ranger India Limited, is an automobile manufacturer in India.  It makes 1.5 million family cars every year.  That’s one car every 12 seconds.  It has a sales network of company approved retailers that spreads across 600 cities.

• Identify the type of the channel of distribution adopted by the company.
• State the market related factors that are likely to affect the decision of a marketer about the choice of channel of distribution.
• Indirect channel: One level channel f distribution adopted by the company.

        2. The market related factors that are likely to affect the decision of a marketer about the choice of channel of distribution are explained below:

• Size of market:
• Geographical concentration of potential buyers:
• Quantity purchased:

Q. 24. As a global leader in the consumer electronics and entertainment industries, Sony has set forth ‘Road to Zero environmental plan’, to achieve a zero environmental effect by the year 2-050 by producing world-class products in a manner that both protects and promotes a healthy and sustainable planet.

• Identify the marketing philosophy being implemented by the company.
• Outline the main focus and end of the relevant marketing philosophy.
• State any two values that the company wants to communicate to the society.
• Social marketing concept is being pursued by the company.
• The main focus of this philosophy is on both the needs of the potential buyers as well as concern for the society at large.  The ends include profit maximization through customer satisfaction and social welfare.
• Concern for the environment
• Welfare of the society

Q. 25. As the number of people making online purchases has increase manifolds, there is a growing concern about the disposal and management of packaging waste.  Every item bought is delivered with excess packaging and sometimes even non-biodegradable materials are used.

• Name the other two levels of packaging that the marketers may be using besides the immediate package.
• Describe briefly any two points highlighting the functions of packaging.
• State any two factors that should be kept in mind by the marketers while designing the packaging of its products.
• Secondary packaging and Transportation packaging.
• The functions of packaging in the marketing of goods and services is explained below:
• Product Identification:
• Product Protection:
• The marketers should use biodegradable packaging material and packaging should enhance the usability of the products.

Q. 26. Rastro Inc., is a multinational corporation that creates consumer electronics, personal computers, servers and computer software.  The company also has a chain of retail stores known as Restro Stores.  Despite high competition, Restro has succeeded in creating demand for its products, giving the company power over prices through product differentiation, innovation advertising and ensured brand loyalty.

• What is product differentiation?
• Name any one function of marketing that facilitates product differentiation.
• Identify the component of promotion mix being used by the company by Quoting lines form the paragraph.
• Describe briefly the pricing objective pursued by the company.
• Product differentiation is a strategy used by the marketers to gain an edge over its competitors by creating a distinguished perception of the product in the minds of the potential buyers in terms of its utilities.
• Branding is a function of marketing that facilitates product differentiation.
• Advertising is the component of promotion mix being used by the company “Giving the company power over prices through product differentiation, innovative advertising and ensured brand loyalty.”
• Attaining product quality leadership: Besides aiming at profit maximization as its pricing objective Rastro Inc. seeks to establish a unique place for its products in the market by offering superior quality products which can be easily distinguished from its competitors.  As a result, it is able to use differential pricing i.e. fixing up relatively higher prices for tits products.

Q. 27. Reema, Vibha and Ratna are three women entrepreneurs who are engaged in dealing with handicraft goods under the brand name ‘Gujkriti’ through a chain of retail outlets at five different places in delhi.  Their outsource all their products from tribal and rural women in the state of Rajasthan.  Reema is of the opinion that in order to increase the sale of their products, they should advertise about it on television.  But, Ratna is arguing that advertisement expenses will add to cost of operation.  Whereas Vibha is insisting that they should set up an online portal to market their products across the globe.

• Identify the tool of promotion being taken into consideration by Reema by quoting lines from the paragraph.
• How is the channel of distribution being suggested by Vibha different from the channel of distribution being used by them presently?
• Do you think that Ratna is justified in here argument that advertisement expenses will add to cost of operations?
• The tool of promotion being taken into consideration by Reema is advertising.  (Reema is of the opinion that in order to increase the sale of their products, they should advertise about it on television.)
• Vibha is insisting that they should set up an online portal to market their products across the globe i.e. adopting direct marketing or zero-level channel (manufacturer – consumer).  Whereas at present they are using indirect channels of distribution i.e. one level channel (manufacturer – retailer – consumer) by operating through a chain of retail outlets at five different places in Delhi.
• No, Ratna is not fully justified in her argument although advertising as a tool of promotion is often criticized on the ground that it adds to the cost of distribution which is passed on to the consumers in the form of higher prices.  Therefore, it increases the burden on the consumers.  But, this argument is not entirely true because advertisements help to increase demand for the product.  In order to meet the increased demand the production levels have to be raised.  As a result, the business is able to reap advantage of economies of scale and eventually the cost of production per unit comes down and benefits the buyers as the product’s prices are reduced consequently.

Q. 28. Arvind is planning to start a company manufacturing room fresheners.  He intends to use natural fruit extracts for adding fragrance to them.  He estimates an investment of Rs. 20 crores to set up the factory.  As it is difficult for him to raise the entire capital amount alone, he gives a partnership offer to his school friend, Sanjay who is an angel investor.  Sanjay, after being convinced about the feasibility of the project, accepts his offer.  Sanjay tells Arvind that they should also focus on other important decisions related to the product ‘room fresheners’ besides deciding about its features, variety and quality.  Branding is one of the important such decision.

• Name any other two important decisions related to a product.
• Why is branding considered as an important function by the marketers?  Give any one reason in support of your answer.
• State any four features of a good brand name.
• Labeling and Packaging are the two important decisions related to a product.
• Branding is considered to be a very important decision by the marketers because it facilitates product differentiation.  Through branding the prospective buyers are able to bring about a distinction between a company product and its substitutes available in the market.  This helps the company to obtain a desirable market share.
• The four features of a good brand name are stated below:
• The brand name should be short, easy to pronounce, spell, recognize and remember e.g., Ponds.
• A brand should suggest the product’s benefits and qualities e.g. Sunsilk.
• A brand name should be distinctive e.g., Lotus.
• It should be capable of being registered and protected legally.

Q. 29. Suraj is a small entrepreneur involved in the manufacturing of hair wax.  He finds that cost of production of 100 gm of hair wax is Rs. 250.  He has decided to keep a margin of 15% as profit moreover, he has assessed that there is a free competition in this product segment.

• Identify the function of marketing being performed by Suraj.
• State briefly the two factors that he is taking into consideration while performing the function as identified in part (a)
• Pricing is the function of marketing being performed by Suraj.
• The two factors that he is taking into consideration while performing the pricing function are as follows.
• Cost of product:
• Degree of competition:

Q. 30. After doing a diploma in entrepreneurship, Farihad started his own confectionary business.  He started doing a lot of hard work and used the recipes taught by his grandmother in various preparations.  He also learnt many recipes from online sites and television programmes.  He decided to keep the price of the products low initially and also informed his customers about the goodness of the items sold by them.  However, he didn’t mention on the package of each item weather it contained eggs or not.  As a result, vegetarian people became hesitant in buying things from his shop as they had to verbally inquire from him about the inclusion of eggs in the preparation of various items.

• Name the important aspect related to the marketing of products which has been ignored by Farihad.
• Explain briefly any free functions performed by the aspect as identified in part (a).
• Mention the right of consumer being violated by Farihad.
• The important aspect related to the marketing of products which has been ignored by Farihad is Labeling.
• The three important functions performed by labeling are:
• Describes the product and specifies its contents:
• Helps in identification of  the product or brand:
• Enables grading of products:
• The Right to information is being overlooked by the company in the above mentioned case.  According to the right to information, a consumer has the right to get complete information about the product he / she intends to buy including its contents, date of manufacture, date of expiry, price, quantity, directions for use etc.  Also, as per law, it is mandatory for the marketers to provide complete information about the product / service to the buyers.

Q. 31. ‘Shudh Hava Ltd.’ is engaged in manufacturing of air conditioners and desert coolers.  The company offers a wide range of products to meet the requirements of people from varied income groups.  Recently the company has developed a new product, an air purifier that improves the quality of air by filtering out all allergens and microbes.  The company introduced the product on two variants namely ‘Nano Tech’ and ‘Nano Tech Premium’.  In order to persuade people to buy the product it is offering easy payment options in equal monthly installments for different time periods.  Moreover, every buyer will be offered ‘scratch a card’ option to win instant gifts like decorative items, T-shirts etc.  the company is also planning to organize competitive events based on skill and luck in various malls in different cities.

• Name and explain the ‘type of promotion strategy’ adopted by the company to boost the sales of air purifiers.
• Also, identify the various techniques of this promotional strategy being used by the company by quoting liens from the paragraph.
• “The company offers a wide range of products to meet the requirements of people from varied income group.”  Name the relevant consumer right being promoted by the company.
• The type of promotion strategy adopted by the company to boost the sales of air purifiers is Sales Promotion.

Sales Promotion includes the various types of short term incentives offered by a marketer to increase the sale of a product or service.

• The various techniques of sales promotion being used by the company are listed below:
• Full finance @ 0% - “It is offering easy payment options in equal monthly installments for different time periods.”
• Instant draws and assured gifts – “every buyer will be offered ‘scratch a card’ option to win instant gifts like decorative items, T-shirts etc.”
• Contests – “The company is also planning to organize competitive events based on skill and luck in the various malls in the different cities.”
• Right to Choose is the consumer right being promoted by the company

Q. 32. Nischay, after completing his masters in computer engineering decided to start his own business.  He visited his uncle Mr. Jaiprakash who has been running a successful business in web designing.  He shared with Nischay that the main reason for his success in the business lies in his approach of building web sites according to the specifications of the clients but also providing continuous online assistance to them and handling their grievances effectively and doing all this at a profit.  He provides these services at competitive prices.  Anybody interested in getting the web solutions can contact him through his website.  Moreover, whenever the market is sluggish he tries to create demand by offering short-term incentives to the buyers.

• Define the term ‘Marketing Management’.
• Briefly explain the various elements of marketing mix being pursued by Mr. Jaiprakash by quoting liens from the para.
• Marketing management is “the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value” – Philip Kotler
• The various elements of marketing mix being pursued by MR. Jaiprakash area as follows:
• Product:  “his business is not only restricted to designing web sites according to the specifications of the clients but also providing continuous online assistance to them and handling their grievances’ effectively.”
• Price: “doing all this at a profit.  He provides these services at competitive price.”
• Place: “Anybody interested in getting the web solutions can contact him through his website.”
• Promotion: “Moreover, ,whenever the market is sluggish he tries to create demand by offering short-term incentives to the buyers.”

Q. 33. In today’s world, through social media, news spread in a flash.  Moreover, if it is bad news, it acquires a speed that is virtually impossible to stop.  Hence, all corporate are more susceptible to a tarnished image today than in any other day and age.  The loss of goodwill may lead to decreased revenue, loss of clients or suppliers and fall in market share.  Over the year, therefore, most of the companies have set up a separate department to manage the public opinions about them.  The department works in close coordination with the various interest groups like consumers, government, suppliers etc. and strives to handle effectively if any controversies arise.

• Identify the element of promotion mix being referred to in the above liens.
• Briefly explain any three points highlighting the role of this element of promotion mix as identified in part (a)
• The element of promotion mix being referred to in the above lines is Public Relations.
• It helps the business to reinstate itself in wake of controversies or prejudices etc.

Q. 34. Traditional trade or kriana stores constitute 90% of the FMCG (fast moving consumer goods) business in India.  HUL is the market leader in FMCG with over 60 lakh outlets.  According to industry estimates, Patanjali products are currently available in two lakh traditional retail outlets.  ‘Availability of the product’ is the single largest driver of FMCG sales.  A shopper research suggests that 30% - 40% consumers shift preference if their favourite brand is not available at the store.

• Identify the component of marketing mix being discussed in the above liens.
• State the two main decisions related to the concept identified in part (a)
• Name the type of channel of distribution adopted by HUL.
• The component of marketing mix being discussed in the above liens is place / physical distribution.
• Physical movement of goods from producers to consumers
• Choice of channels of distribution
• Indirect channel of distribution has been adopted by HUL.  It is a two level channel i.e. (Manufacturer – wholesaler – retailer – consumer)

Q. 35. Arun and Rukun are good friends.  After doing a fashion designing course from a reputed institute, they have set up a garment factory in the rural area of Faridabad to manufacture trendy casual wear like jeans, T-shirts, shirts etc. under the brand name ‘Swatantra’.  They have employed people from the nearby villages itself in the factory.  Moreover, they wish to sell the products through local retailers in the villages and also through “Flipkart’.

• Identify the elements of marketing mix being taken into consideration by Arun.
• Name the two methods of marketing adopted by them.
• State any two values that are being fulfilled by them.
• The elements of marketing mix being taken into consideration by Arun are product and place.
• The two methods of marketing adopted by them are both direct and indirect marketing.
• Two values that are being fulfilled by the are:
• Generating employment
• Raising the standard of living of the people in the village

Q. 36. Yogesh buys a new laptop for his son Mukesh on his birthday from a company owned retail outlet.  After a few months, some parts of the laptop get damaged in a road accident.  Yogesh approaches the dealer to get the damaged parts replaced with the new ones.  But, he is told that the company does not provide any after sale service to the customers.  Yogesh feels very dissatisfied as a consumer and woes that he will never buy this companies product ever again.

• Identify the function of marketing being ignored by the company.
• As a business advisor, suggest any two services that will be very effective in enhancing brand loyalty for any such product.
• Name the appropriate redressal agency that he can approach in case he decides to file a case against the dealer.
• The function of marketing being ignored by the company is customer support services.
• As a business advisor, I would suggest the introduction of the following services that will be very effective in enhancing brand loyalty for any such product.
• Setting up a separate department for handling consumer complaints.
• Providing 365 days × 24 × 7 online assistance to the buyers for any maintenance or technical issues.
• Yogesh can file a complaint in the District forum.

Q. 37. Mr. Rajiv wants to buy LCD T.V. for his family.  Now he has come to Jagota Electronics, Model Town, after coming to shop he get confused.  Write the name of promotion tool which has brought him to the shop and promotion tool needed now.  Also write the four points of importance of latter tool.

Ans.  The just promotion tool which brought Rajiv to the shop is advertisement and the promotion tool required now is personnel selling.

Q. 38. Mr. Rajiv, the sales executive of ABC Ltd. possess good marketing techniques, his techniques involve oral presentation of message, convincing the customer with face to face interaction, etc.

• Name the element of marketing mix under which the above technique fall.
• Identify the element used by Rajiv.
• Give any three merits of that technique:
• Personal Selling
• Merits of Personal Selling

Q. 39. ITC started its business with Jobaico Industry later on its entered in Hotel Industry, Consumer goods industry, stationery, etc. ITC assured quality to customer and kept company’s name as its identity.  This help the customers in product identification and hence ensured quality.  It also built up their confidence and help in increasing their level of satisfaction.

• Name the element of marketing mix referred in above para.
• Name the other elements of marketing mix.
• Name the concept which assure quality and help in identification of product.
• Identify the value emphasized by ITC.
• Product Mix.
• Other elements: Price mix, Place mix, Promotion mix.
• Concept which help in identifying the product and assure quality is branding.
• (a) Value of supplying quality product.

(b) Value of building confidence among customers.

Q. 40. Ajay was appointed as a marketing head of Alfa Enterprise manufactures of toothpaste and tooth brushes.  His target sale was zero 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 counseling some school children had not started brushing their teeth.  He investigated and found that they could not afford to buy toothbrush and toothpaste.  So with due permission the started donating 200 toothbrush and toothpaste to schools.

• Identify the channels of distribution Ajay would adapt for distribution of toothbrush and toothpaste, justify by giving reasons.
• State any two values which Ajay want to communicate to society.
• The channel of distribution Ajay would adapt is indirect because he is dealing with consumer goods.
• Values which Ajay wants to communicate to society are:
• Concern for underprivileged
• Sensitivity towards health.

Q. 41. Nisha, a school bag manufacturer decided to improve the product for profit maximization and thus added a water bottle holder to the existing design.

• Identify the marketing management philosophy adopted by Nisha and
• Explain this philosophy on the basis of:
• Main focus and
• Means and ends.

Ans.  Product concept.

Q. 42. Ayesha is manufacturing lunch boxes for school-going children.  To maximize profit she decided to improve the quality and added a warmer for the lunch boxes.  Due to this improvement in the product, the sale is increasing day by day.  Identify and explain the marketing philosophy involved.

Q. 43. Mansi, a shoe manufacturer for school students, decided to maximize her profit by producing and distributing at large scale and thereby reducing the average cost of production:

• Explain this philosophy on the basis iof:

Ans.     (i) Production concept.

            (ii) Give difference,

Q. 44. Vasvi purchased a bottle of pickle from the local grocery shop.  The information provided on the bottle was not clear.  She fell sick on consuming it.  She filed a case in the District forum under the Consumer Protection Act and got the relief.

• Identify the important aspect neglected by the marketer in the above case.
• Explain briefly the functions of the aspect identified in (a) above.

Ashima purchased a bottle of tomato-sauce from the local grocery shop.  The information provided on the bottle was not clear.  She fell sick on consuming it.  She filed a case in the District Forum under the Consumer Protection Act and got the relief.

• The marketer had overlooked the Labelling as it was not done appropriately for the product.
• The functions of labeling are detailed below:

Q. 45. Radha found a worm crawling out of newly opened tetra pack of a juice manufactured by a reputed company, Zest, Ltd.  She went back to the shopkeeper from whom the pack was purchased who directed her to call up the customer care centre.  When all her efforts failed, she went to consumer activist group to seek help.  The group decided to help Radha and take measures to impose restrictions on the sale of the firm’s products of the particular batch and urge customers to refrain from buying the products of the company.  Zest Ltd. lost its image n the market.  The CEO gives the responsibility of bringing back the lost image of the company to a Manager.

• Also explain the role of above identified concept by stating any two points.
• Public Relations.
• Role of public relations can be discussed with respect to the functions which the department performs: (any two)
• Press relations
• Product publicity
• Corporate communication
• Counseling.

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• Marketing Class 12 Notes CBSE Business Studies Chapter 11 (Free PDF Download)
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Revision Notes for CBSE Class 12 Business Studies Chapter 11 - Free PDF Download

The Class 12 Business Studies revision notes Chapter 11 includes and summarises all of the key concepts such as the definition of marketing, features of marketing, functions of marketing, marketing mix, marketing mix ingredients, and so on. The NCERT Class 12 Revision Notes Business Studies Chapter 11 assist students in understanding all of the important ideas discussed in this chapter. The revision notes PDF are written in a straightforward manner to provide students with a better learning experience prepared and curated by the subject-matter experts at Vedantu and this PDF can be downloaded for free from Vedantu app and official website.

Topics Covered in Business Studies Chapter 11 Marketing

Introduction to Marketing

Features of Marketing

Marketing Management

Marketing Management Philosophies (The Production Concept, Product Concept, The Marketing Concept, The Selling Concept, The Societal Marketing Concept)

Differences in the Marketing Management Philosophies

Functions of Marketing

Role of Marketing 

Marketing Mix Elements (Product, Price, Place, And Promotion)

Advertising

Physical Distribution

Personal Selling

Download CBSE Class 12 Business Studies Revision Notes 2023-24 PDF

Also, check CBSE Class 12 Business studies revision notes for other chapters:

Related Chapters

Access Class 12 Business Studies Revision Notes Chapter 11 Marketing

Meaning of market .

The term "market" refers to the gathering place of buyers and sellers to conduct transactions involving the exchange of goods and services. The term "market" comes from the Latin word "Marcatus," which means "to trade."

Marketing 

Marketing is defined as "a human activity aimed at satisfying needs and desires through an exchange process."

Philip Kotler 

Marketing concept is a key to determining the needs, desires of target markets, delivering the desired satisfactions more efficiently and effectively by competitors is critical to achieving organizational goals.

Features of Marketing 

1. Needs and Wants:  

The marketing process assists consumers in obtaining what they require and desire.

A need is said to be known as a state of deprivation or the feeling that one is depriving oneself of something.

Needs are fundamental to human beings and are unrelated to a specific product.

2. Creating a Market Offering:  

Market offering is the process of offering and introducing a product or service with specific features such as size, quality, taste, and so on for the purpose of selling.

3. Customer Value:  

Marketing used to facilitate the exchange of goods as well as services between buyers and sellers.

4. Exchange Mechanism:  

The exchange mechanism is used in the marketing process. 

Exchange refers to the process where two or more parties used to come together in order to get the desired goods or service from someone while in exchange for something. For example, money is the medium of exchange used to purchase or sell a product or service.

 The following conditions needs to be met in order for an exchange to take place:

a. There must be at least two parties.

b. providing something of value to the other party 

c. communication 

d. freedom to accept or reject offer 

e. willingness of the parties to enter into a transaction

What can be Marketed? 

1. Physical product 

2. Services 

3. Ideas 

4. Person 

5. Palace 

6. Experience 

7. Properties 

8. Events 

9. Information 

10. Organisation 

Marketer 

A marketer is anyone who makes an extra effort to identify the needs of the consumers and offer the product or service as well as persuade them in order to buy in the process of exchange. .

Sellers, as marketers, are the ones who provide satisfaction. They make products/services available and sell them to customers in order to meet their needs and desires.

They are classified as follows: 

a. goods marketers (such as Hindustan Lever) 

b. services marketers (such as Indian Airlines) 

c. others marketing experiences or places (such as Walt Disney) (like tourist destinations).

Marketing activities are those undertaken by marketers in order to facilitate the exchange of goods and services between producers and consumers.

Marketing Management  

Marketing management is the administration of marketing functions.

It is considered as the process of organizing, directing as well as controlling the activities associated with marketing goods and services in order to meet the needs of customers and achieve organizational goals.

“Marketing management is defined as the art and science of selecting target markets and acquiring, retaining, and growing customers by creating, delivering, and communicating superior customer service.”

                                                                                                                                  Philip Kotler 

The Process of Management of Marketing Involves: 

a. Identifying a target market

b. Creating demand by producing products that meet the needs and interests of customers.

c. Create, develop, and communicate superior customer values: To provide superior value products/services to prospective customers, and to communicate these values to other potential buyers in order to persuade them to purchase the product/service.

Marketing and Selling 

Marketing: It refers to a broad range of activities, of which selling is only one component. Before making a sale, a marketer must plan the type, design, and price of the product, as well as select the distribution channels and the appropriate promotional mix for the target market.

Selling: refers to the sale of a product or service through advertising, promotion, and salesmanship. The product's title is transferred from seller to buyer. The primary goal of selling is to turn a product into cash.

Difference Between Marketing and Selling

Marketing Management Philosophies  

Marketing Concepts/Philosophies usually refers to determining the needs as well as wants of the target markets & then delivering the desired satisfactions more efficiently and effectively by competitors is critical to achieving organizational goals.

1. Production Concept:  

Because the number of producers was limited in the early days of the industrial revolution, industrialists assumed that consumers were only interested in easily and widely available goods at an affordable price.

2. Product Concept:  

As time passed, supply improved, and customers began to prefer products that were superior in performance, quality, and features.

As a result, product improvement has become the key to a company's profit maximization.

3. Selling Concept: 

Increased production scale resulted in increased competition among sellers. Because there were so many companies selling similar products, product quality and availability were insufficient to ensure survival.

Consumers will not buy products unless the company engages in aggressive sales and promotional activities.

4. Marketing Concept : 

Marketing begins with determining what consumers want in order to satisfy consumers and profit. 

Customer satisfaction is a prerequisite for achieving the firm's goals and objectives.

5. Social Marketing Concept:  

Customer satisfaction is supplemented by social welfare in this concept. 

A company that adopts the societal concept must balance the company's profits, consumer satisfaction, and societal interests.

Functions of Marketing  

1. Gathering and Analyzing Market Information:  

Systematic fact-gathering and information-analysis

Examining a business environment's strengths, weaknesses, opportunities, and threats.

Identifying customer needs and desires, determining purchasing motivations, selecting a brand name, packaging, and promotional media, and so on.

Data is available from both primary and secondary sources.

2. Marketing Planning :  

Create an appropriate marketing plan in order to meet marketing objectives.

It should specify the action plans to achieve these goals.

For example, if a marketer wants to increase his country's market share in the next three years, his marketing plan should include various important aspects such as a plan for increasing production levels, product promotion, and so on.

3. Product Designing and Development:  

Involves decisions about the product to be manufactured and its attributes, such as quality considerations, packaging, new models and variations, and so on.

A good design can improve the performance of the product while also giving it a competitive advantage in the market.

Anticipate customer needs and create new products or improve existing ones to meet those needs.

4. Standardization and Grading:  

Standardisation refers to the production of goods that meet predetermined specifications, which aids in the production of uniformity and consistency (e.g., ISI Mark).

Grading is said to be the process of categorizing different products into different groups based on important characteristics such as quality, size, and so on.

5. Packaging and Labeling:  

Packaging is called as the process of designing as well as developing a package for a product that protects it from damage, spoilage, breakage, and leakage. It also makes purchasing easier for customers and serves as a marketing tool.

Labeling is the process of designing a label to be placed on a package. It can range from a simple tag to intricate graphics. For example, colgate, lays, and so on.

6. Branding: 

It aids in product differentiation, builds customer loyalty, and promotes sales. 

An important decision area is branding strategy, which determines whether each product will have a separate brand name or the same brand name will be used for all products.

7. Customer Support Services:  

Customer support services are extremely effective at increasing prospective customer sales and developing brand loyalty for a product.

It aims to provide maximum customer satisfaction while also building brand loyalty.

Examples include sales services, customer complaints and adjustments, credit services, maintenance services, technical services, and consumer information.

8. Pricing of Product: 

Product price refers to the amount of money that customers must pay in order to obtain a product.

It is an important factor in a product's success or failure.

Because the price of a product/service is related to its demand, the price should be set after considering all of the factors that influence the price of the product.

9. Promotion:  

Product and service promotion entails informing customers about the firm's product, its features, and so on, and persuading them to purchase the products.

Promotional methods include advertising, personal selling, public relations, and sales promotion.

10. Physical Distribution:  

The two major decision areas under this function are 

(a) the channels of distribution or marketing intermediaries to be used (e.g. wholesalers, retailers); and the marketing intermediaries to be used.

(b) Physical movement of the product from the point of manufacture to the point of consumption.

11. Transportation:  

Transportation refers to the physical movement of goods from one location to another. 

When selecting a mode of transportation, various factors such as the nature of the product, cost, location of the target market, and so on should be considered.

12. Storage or Warehousing:  

Proper storage of products is required to maintain a smooth flow of products in the market. 

Storage and warehousing are used to protect against unavoidable delays in delivery or to meet contingencies in demand.

Marketing Mix 

A large number of factors influence marketing decisions; these are classified as ‘non-controllable factors' and ‘controllable factors.'

Controllable factors are those that can be influenced at the firm level.

Environmental variables are factors that influence a decision but are not controllable at the firm level.

In order to be successful, a company must make sound decisions after analyzing controllable factors and keeping environmental factors in mind.

Marketing Mix refers to the set of marketing tools that a company employs to achieve its marketing objectives in the target market.

The success of a market offer is determined by how well these ingredients are combined to provide superior value to customers while also meeting sales and profit goals.

Elements of Marketing Mix 

The marketing mix consists of four main elements 

A. Product 

B. Price 

C. Place/Physical Distribution 

D. Promotion 

These elements are used to popularly known as 4 P’s of the marketing. 

1. Product: A product is defined as "anything of value" that is offered for sale in the market. Colgate, Dove, and so on.

2. Price: the sum of money that a customer must pay in order to obtain a product or service.

3. Place: Physical product distribution, i.e. making the product available to customers at the point of sale.

4. Promotion: Informing customers about the products and convincing them to purchase them.

Product 

A product, in the eyes of the customer, is a collection of utilities that is purchased because of its ability to meet a specific need.

Classification of Products  

Products can be classified into two categories: 

(i) Consumers ‘products, 

(ii) Industrial products. 

A. Shopping Efforts Involved  

On the basis of the buyers' time and effort.

1. Convenience Products: Convenience goods are consumer products that are frequently purchased for immediate use. Medicines, newspapers, stationery, toothpaste, and so on.

2. Shopping Products: Shopping products are those in which buyers spend a significant amount of time comparing the quality, price, style, suitability, and so on at various stores before making a final purchase. For example, electronic goods, automobiles, and so on.

3. Specialty Products: Specialty products are goods that have unique characteristics that compel customers to go out of their way to purchase them. For example, art, antiques, and so on.

B. Durability of Products  

1. Non-durable Products: These are consumer goods that are consumed in a short period of time. For example, milk, soap, stationery, and so on.

2. Durable Products: Tangible items that can withstand repeated use, such as a refrigerator, radio, bicycle, and so on.

3. Services: Intangible services are those activities, benefits, or satisfactions that are sold, such as dry cleaning, watch repairs, hair cutting, postal services, doctor services, and so on.

Industrial Products  

Industrial products are those that are used as inputs in the manufacturing process.

Characteristics  

Number of Buyers 

Channel Levels 

Geographic Concentration 

Derived Demand 

Role of Technical Considerations 

Reciprocal Buying 

Leasing Out 

Classification 

Materials and Parts: items that are completely incorporated into the manufacturer's products.

Capital Items: the manufacture of finished goods, such as installations and equipment.

Supplies and Business Services: short-term goods and services that aid in the development or management of the final product. Repairs and maintenance, for example.

Branding:  

Branding is the process of creating a corporate brand identity for consumers and imprinting that brand identity on their minds, which necessitates brand positioning and brand management.

                                                                                                                      Amazon's Jeff Bezos

The process of developing a product's distinct identity. It is the process of identifying a product by using a name, term, symbol, or design alone or in some combination.

Brand: A name, term, sign, design, or some combination of the above used to identify and differentiate the seller's products from those of competitors.

Advantages to the Marketers  

Enables Product Differentiation Through Marking: It aids in distinguishing its product from that of its competitors.

Aids in the development of advertising and display programs

Differential Pricing: It allows a company to charge different prices for different products.

Ease of New Product Introduction

Advantages to the Customers 

Aids in Product Identification: Assists customers in identifying products.

Ensures Quality: Ensures product quality 

Status Symbol: Brands become status symbols due to their quality As an example, consider Benz automobiles.

Characteristics of Good Brand Name  

Short, simple to say, spell, recognize, and remember

Suggest the product's advantages and characteristics.

Different from other products

Adaptable to packing or labeling requirements, as well as different advertising media and languages.

Versatile enough to accommodate new products;

Legally registered and protected 

Packaging 

Packaging: The act of designing and developing a product's container or wrapper. Because good packaging often aids in the sale of a product, it is referred to as a silent salesman.

Levels of Packaging 

1. Primary Package: This is the product's immediate container/covering, such as toffee in a wrapper, a match box, a soap wrapper, and so on.

2. Secondary Package: It's all about additional layers of protection that are kept until the product is ready for use, such as a red cardboard box for Colgate toothpaste.

3. Transportation Package: refers to additional packaging components required for storage, identification, and transportation, such as putting a package of toffees into cardboard boxes for storage at a manufacturer's warehouse and transportation.

Functions of Packaging 

Product Identification: Packaging aids in product identification.

Product Protection: The primary function of the packaging is to protect the product.

Facilitating Product Usage: It makes transportation, stocking, and consumption easier.

Product Promotion: Packaging makes sales promotion easier.

Rising Health and Sanitation Standards: It is believed that there is minimal adulteration in packaged goods.

Self-Service Outlets: Good and appealing packaging can help to promote a product.

Opportunities for Innovation: Packaging innovation has increased the shelf life of products.

For example, tetra packs for milk.

Product Differentiation: The color, size, material, and other characteristics of packaging influence customers' perceptions of the product's quality.

Labelling  

Labeling is the process of affixing identification marks to a package. Labels are information carriers that provide information such as the name of the product, the name of the manufacturer, the contents of the product, the expiry and manufacturing date, general information for use, weight, and so on.

Labels Perform Following Functions:  

1. Identify the product: It assists customers in identifying the product among the various types of products available. For example, the purple color of a Cadbury chocolate label easily distinguishes it from other chocolates.

2. Describe and specify the product's contents: The manufacturer provides all information regarding the product's contents, etc.

3. Product grading: With the help of labels, products can be classified into different categories based on quality, nature, and so on, for example: Brooke Bond Red Label, Brooke Bond Yellow Label, Brooke Bond Green Label, and so on.

4. Aids in product promotion: Attractive and colorful labels excite customers and entice them to purchase the products. For example, 40 percent extra free, as stated on detergent, buy two get one free, and so on.

5. Providing legal information: There is a legal requirement to print the batch number, maximum retail price, weight/volume on all products, and a statutory warning on the packet of cigarettes, “Smoking is harmful to one's health”: In the event of a hazard on/poisonous material, appropriate safety warnings should be posted.

ii. Pricing 

Meaning of Price:  

It is considered as the sum of the values that customers exchange in exchange for the benefit of owning or using the product. Price can thus be defined as the sum of money paid by a buyer (or received by a seller) in exchange for the purchase of a product or service.

Factors Determining Price Determination:  

1. Pricing Objectives  

The marketing firm's goal is to maximize profits. Pricing objectives can be determined in both the short and long run. If the company wants to maximize profits in the short run, it will charge the highest price for its products. However, in order to maximize its total profit in the long run, it would choose a lower per unit price in order to capture a larger share of the market and earn higher profits through increased sales.

2. Product Cost:  

Price should cover all costs and aim to earn a reasonable profit above and beyond the cost.

It takes into account the costs of manufacturing, distribution, and sale of the product.

Costs establish the floor price, or the lowest price at which the product can be sold.

The price should rise. Total costs (Fixed costs/overheads + Variable costs + Semi-variable costs) in the long run, but in certain circumstances (introduction of a new product or entry into a new market), the product price may not cover all costs for a short period of time.

3. Utility and Demand:  

The utility provided by the product, as well as the demand for the product, determine the maximum price that a buyer will be willing to pay for that particular product.

Buyers would be willing to pay until the utility of the demand exceeded or equaled the utility derived from it.

According to the law of demand, consumers buy more at a lower price.

Demand elasticity is the responsiveness of demand to changes in product prices. If a small change in price leads to a larger change in quantity demanded, demand is elastic. Firms can set higher prices if demand is inelastic.

4. Extent of Competition in Market:

Before setting prices, competitors' prices and anticipated actions must be considered.

5. Government Policies:  

In the public interest, the government can intervene to regulate product prices.

6. Marketing Methods Used:  

Other marketing elements such as distribution system, sales promotion efforts, packaging type, product differentiation, credit facility, and so on all have an impact on the price fixing process.

iii. Physical Distribution 

A series of decisions must be made in order to make the product available for purchase and consumption by customers.

The marketer must ensure that the product is available in sufficient quantities, at the appropriate time, and in the appropriate location.

A channel of distribution is a group of companies and individuals who take title, or assist in the transfer of title, to specific goods or services as they move from producers to consumers.

Choosing an appropriate channel of distribution is a critical marketing decision that affects an organization's performance. It is a strategic decision whether the firm will use direct marketing channels or long channels involving a number of intermediaries.

1. Order Processing: Provide accurate and timely order processing, without which orders would arrive late or in the wrong quantity. As a result, customers will be dissatisfied, with the risk of losing business and goodwill.

2. Transportation: It transports goods from manufacturers to consumers, making the product available at the point of sale.

3. Inventory control: Choosing the level of inventory is an important inventory decision. Additional demand can be met in less time, and inventory requirements will be minimal.

4. Warehousing: The act of storing and sorting products in order to create time utility in them is referred to as warehousing. It is required to bridge the gap between the time the product is manufactured and the time it is distributed for consumption.

Components of Physical Distribution:  

Functions of Distribution Channels 

1. Sorting: Middlemen obtain supplies of goods from a variety of sources, which are not always of the same quality.

2. Accumulation: the accumulation of goods into larger homogeneous stocks that aid in the maintenance of a continuous flow of supply.

3. Allocation entails dividing homogeneous stock into smaller, more marketable lots.

4. Assorting: the collection of products for resale.

5. Product Promotion: Middlemen take part in activities such as demonstrations, special displays, and so on.

6. Bargaining: Manufacturers, intermediaries, and customers bargain over price, quality, and other issues.

7. Risk Taking: Merchant middlemen take title to the goods, assuming risks such as price and demand fluctuations, spoilage, destruction, and so on.

Channels of Distribution  

Consists of a network of firms, individuals, merchants, and functionaries who assist in the transfer of title to a product from the producer to the end consumer.

Intermediaries help to cover a large geographical area and increase distribution efficiency, including transportation, storage, and negotiation. They also provide customers with convenience by having a variety of items available in one location, as well as serving as an authentic source of market information because they are in direct contact with the customer.

Types of Channels:  

Direct Channel ( Zero Level)  

The manufacturer and the customer establish a direct relationship. Manufacturer-Customer. For example, mail order, internet, and door-to-door sales.

Indirect Channel  

The distribution network is referred to as indirect when a producer uses one or more intermediaries to move goods from the point of production to the point of sale.

1. Manufacturer-Retailer-Customer (One Level Channel)

Between the manufacturers and the customers, one intermediary, namely retailers, is used. Typically used for high-end items such as watches, appliances, automobiles (Maruti Udyog), and so on.

2. Manufacturer-wholesaler-Retailer-customer (Two Level Channel):  

This channel is primarily used for consumer goods distribution. Typically used for consumer goods such as soaps, salt, and so on.

3. Manufacturer → Agent → Wholesaler → Retailer → Customer (Three Level Channel):  

Manufacturers use their own selling agents or brokers in this case, who connect them with wholesalers, then retailers, and finally consumers.

Factors Determining Choice of Channels of Distribution  

The selection of an appropriate channel of distribution is a critical marketing decision.

1. Product Related Factors: The nature of the product, whether it is industrial or consumer goods, perishable or nonperishable, etc., determines the distribution channels used.

2. Company Characteristics: The company's financial strength and the level of control it wishes to exert over other channel members. Short channels are used to exert more control over intermediaries and vice versa.

3. Competitive Factors: Companies may copy the channels used by their competitors.

4. Market Factors: The size of the market as well as the geographical concentration of potential buyers influence channel selection.

5. Environmental Factors: Legal constraints and a country's economic situation. In a down economy, marketers use shorter distribution channels.

iv. Promotion  

Promotion is the use of communication with the dual goal of informing potential customers about a product or a service as well as persuading them to purchase it.

Promotion is a critical component of the marketing mix in which marketers use various communication tools to encourage the exchange of goods and services in the market.

It is a set of promotional tools/techniques used by a company to entice and persuade customers to buy its products.

Promotion Mix  

A promotion mix is considered as a combination of promotional tools used by a company to achieve its communication goals.

Promotion mix tools:  

(i) Advertising, 

(ii) Personal Selling, 

(iii) Sales Promotion, 

(iv) Publicity. 

1. Advertising  

Advertising, as defined by a specific sponsor, is a paid form of nonpersonal presentation and promotion of goods, services, or ideas.

The most widely used promotional tool. It is a cold, impersonal form of communication that is paid for by marketers (sponsors) to promote their products and services. Newspapers, magazines, television, and radio are all common mediums.

Features 

Paid Form: The sponsor must bear the cost of communicating with customers.

Lack of Personalization: There is no direct face-to-face contact between the prospect and the advertiser.

Identified Sponsor: Advertising is done by a specific person or company.

Merits 

Mass Reach: a large number of people can be reached across a large geographical area.

Increasing customer satisfaction and trust.

Expressiveness: It is a powerful medium of communication.

Economy: Because of its wide reach, is a very cost-effective mode of communication.

Limitations  

Less Forceful: There is no pressure on the prospects to listen to the message.

Feedback Deficit:

Inflexibility: It is less flexible because the message is standardised and not tailored to the individual.

Low Efficacy: It is difficult to get advertising messages heard by the intended prospects.

Objections to Advertising  

Some critics argue that advertising is a social waste because it raises costs, multiplies people's needs, and undermines social values.

1. Adds to Cost: Unnecessary advertising raises the cost of the product, which is then passed on to the buyer in the form of high prices.

2. Undermines Social Values: It undermines social values while encouraging materialism.

3. Confuses the Buyers: A similar product of the same nature/quality confuses the buyer.

4. Encourages Sale of Inferior Products: It makes no distinction between superior and inferior goods.

5. Some Advertisements are in Bad Taste: These depict something that some people do not agree with.

2. Personal Selling  

Personal selling entails personally contacting prospective buyers of a product, i.e. engaging in a face-to-face interaction between seller as well as the buyer for the purpose of sale.

Features of the Personal Selling 

1. Under personal selling, personal contact is established.

2. Establishing relationships with prospective customers, which are critical in closing sales.

3. Oral communication

4. Quick response to queries.

Merits of Personal Selling  

1. Flexibility 

2. Direct Feedback 

3. Minimum wastage 

Role of Personal Selling 

Importance to Business Organisation 

(i) Effective Promotional Tool 

(ii) Versatile Tool 

(iii) Reduces Effort Wastage 

(iv) Consumer Attention 

(v) Long-Term Relationship 

(vi) Personal Relationship  

(vii) Role in the Introduction Stage 

(viii) Customer Relationship

Importance to Customers  

(i)Assist in the Identification of Needs

(ii) Up-to-date market information 

(iii) Expert advice 

(iv) Customers are enticed

Importance to Society 

(i)Converts the most recent demand 

(ii) Employment Possibilities 

(iii) Job Opportunities 

(iv) Salesperson Mobility 

(v) Standardization of Products

3. Sales Promotion 

Short-term incentives or other promotional activities that aim to pique a customer's interest in purchasing a product are referred to as sales promotion.

Merits of Sales Promotion  

Attention Value: Using incentives, attract people's attention.

Useful in New Product Launch: Sales promotion tools persuade people to abandon their usual purchasing habits and try new products.

Synergy in Total Promotional Efforts: Sales promotion activities contribute to the overall effectiveness of a company's promotional efforts.

Limitations of Sales Promotion 

Reflects Crisis: A company that frequently relies on sales promotion activities may give the impression that it is unable to manage its sales and that its products are unpopular.

Damages Product Image: Customers may believe that the products are of poor quality or are overpriced.

Commonly Used Sales Promotion Activities  

Product Combination: Including another product as a free gift with the purchase of one. 

Rebate: Providing products at reduced prices.

Instant draws and assigned gifts: Scratch a card and instantly win a prize with the purchase of a TV, Tea, or Refrigerator, for example.

Lucky Draw: a lucky draw coupon for free gasoline when a certain amount is purchased, and so on.

Useful Benefit: 'Purchase goods worth Rs 3000 and get a holiday package worth Rs 3000 free,' and so on.

Full finance at 0%: Many marketers of consumer durables such as electronics, automobiles, and so on offer simple financing schemes such as "24 easy instalments" and so on.

Contests: Holding competitive events that require the use of skills or luck, etc.

Quantity Gift: Providing an extra quantity of the product, for example, "Buy three, get one free."

Refunds: Refunding a portion of the price paid by the customer upon presentation of proof of purchase. 

Discount: Selling products at a lower price than the list price.

Sampling: Provide free product samples to potential customers. Typically used at the time of a product's introduction.

4. Publicity

Publicity occurs when favorable news about a product or service is broadcast in the mass media. For example, if a manufacturer makes a breakthrough in the development of a car engine and this news is covered by television, radio, or newspapers as a news item.

Features of Publicity are:  

I. Publicity is a form of communication that is not compensated.

II. There is no identified sponsor

5. Public Relations  

Public relations encompasses a wide range of tactics and is typically concerned with providing information to independent media outlets in the hope of obtaining favorable coverage. It also includes a mix of promoting specific products, services, and events as well as promoting an organization's overall brand, which is an ongoing tactic.

Role of Public Relations:  

1. Press Relations: A press release is an announcement of an event, performance, or other newsworthy item issued to the press by an organization's public relations professional. It is written in the form of a positive story with an appealing heading in order for the media to quickly grasp and spread the message.

2. Product promotion: The company tries to draw attention to new products by organizing sporting and cultural events such as news conferences, seminars, and exhibitions, among other things.

3. Corporate Communication: The image of the organization is promoted through newsletters, annual reports, brochures, and other means.

4. Lobbying: The organization maintains cordial relations with government officials and ministers in charge of corporate affairs, industry, and finance in regard to business and economic policies.

5. Counseling: The public relations department advises management on general issues affecting the public and the company's position.

Maintaining Good Public Relations also Helps in Achieving the Following Marketing Objectives:  

(a) Building awareness 

(b) Building credibility 

(c) Stimulates sales force 

(d) Lowers promotion costs 

Difference Between Advertising and Personal Selling 

Advertising 

An impersonal mode of communication 

The transmission of standardised messages 

An inflexible mode of communication 

Broad reach 

Low cost per person reached

Cover the market in a short period of time.

Makes use of mass media 

Lacks direct feedback 

Effective in generating and maintaining interest 

Consumers are the primary target market

Personal Selling 

Personal form of communication 

Non-standardised messages 

Flexibility 

Limited reach 

High cost per person 

Extensive efforts to cover the entire market

Makes use of sales personnel.

Immediate and direct feedback

Plays an important role in the awareness stage 

The Target market is comprised of industrial buyers

Class 12 Business Studies Chapter 11 Revision Notes

Introduction to class 12 business studies marketing revision notes.

By following the Chapter 11 Class 12 Business Studies Revision Notes, students will get the meaning of the term ‘marketing’ and will be able to understand the distinction between ‘marketing’ and ‘selling’.  The Class 12 Marketing Notes enlist the functions of marketing, its role in the development of an economy in terms of society, firms, and consumers. 

The Class 12 Revision Notes Chapter 11 comprise explanations of the different elements of the marketing mix, its classification into different categories, the factors that affect price determination, the types of distribution channels, and the tools of promotion mix like sales promotion, personal selling, publicity, and advertising.

Meaning of Marketing

The market is commonly referred to as a place where sellers and buyers carry out transactions for the involvement of the exchange of services and goods. Marketing is widely defined as the performance of the business activities that direct the flow of services and goods from producers and consumers.

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There are four significant and crucial features of Marketing.

Customer Value - Customer value is the process of marketing that facilitates the exchange of the services and products between the buyers and sellers.

Needs and Wants - Needs and wants is another vital process of marketing that helps groups or individuals to obtain what they need and what they want. 

Exchange Mechanism - The exchange mechanism is the process of marketing that involves the exchange of services and products for money or some other products.

Creating a Market Offering - The creation of market offerings like taste, size, or quality that are available at a given location or outlet. 

A few functions of marketing that helps in the exchange of goods and services are as follows.

Product Development and Designing:- Product design plays a vital role in the selling of a product. A company whose product is designed better sells more products than the companies whose products are weakly designed.

Labelling and Packaging:- Packaging refers to the development and design of packages for the products, while labelling refers to the development and design of labels to be put on the package.

Customer Support Services:- This refers to the services provided to consumers such as adjustments, sales services, and handling customer complaints. All the services aim to present maximum consumer satisfaction. 

Analyzing and Gathering Market Information:- This is a crucial function of marketing that quickly identifies the consumer’s needs and helps to facilitate

Warehousing or Storage:- A proper storage maintains the smooth flow of products and services in the market. The need for storage is essential to ensure the adequate stock of goods or products against unavoidable delays or to cover up the contingencies in demand. Retailers and wholesalers play a vital role.

Key Benefits of Referring to Revision Notes for CBSE Class 12 Business Studies Chapter 11 Marketing

Referring to Revision Notes for CBSE Class 12 Business Studies Chapter 11 Marketing, it will help you to:

Solve any type of questions asked from this particular chapter in the exam confidently.

Strengthen your chapter concepts

Minimise your exam stress and anxiety

To keep track of all the important topics covered in the chapter.

Enhance your conceptual clarity

The CBSE Class 12 Business Studies Chapter 11 Marketing revision Notes supplied in this article provide an overview of the chapter and assist you in preparing the chapter so that every idea is addressed in accordance with the syllabus standards. CBSE Quick Notes Business Studies Chapter 11 Marketing are excellent for last-minute rapid revision. Download the CBSE Class 12 Business Studies Chapter 11 Marketing revision Notes to successfully try all chapter questions in the test.

FAQs on Marketing Class 12 Notes CBSE Business Studies Chapter 11 (Free PDF Download)

1. Define Marketing Mix and enlist its elements.

The marketing mix is the total of policies formulated with a view of the successful completion of the multiple marketing activities. The main goal is to attract all types of consumers.

Elements of Marketing Mix:- There are four primary elements-

Product – refers to the decisions relating to the product

Price – Price mix refers to the decisions related to price fixation of product or service.

Place – refers to activities that make a firm’s products available to the target customers.

Promotion – refers to the combination of promotional tools used by the business to inform customers about the products.

2. State the difference between marketing and selling.

The difference between Marketing and Selling are as follows-

Marketing starts before the goods or services are produced while selling starts after the production has taken place.

Marketing entails a variety of marketing operations, whereas selling is accomplished through advertising, sales promotion, and personal selling strategies.

Marketing maximises profits via customer happiness, whereas selling maximises profits by number of sales.

The primary goal of marketing is to satisfy customers, whereas the primary goal of selling is to attract customers.

3. What does Chapter 11 “Marketing” teach students?

Chapter 11 "Marketing" teaches pupils about crucial components of company marketing. Students will understand the definition of marketing, the distinction between marketing and selling, marketing functions, and key aspects of the marketing mix. Students will also comprehend the classification of various product categories, distinct product distribution methods, and significant promotional tactics. Students may utilise Vedantu's Revision Notes Chapter 11 to better comprehend the material. Kids can also utilise these notes to study for exams.

4. Where can I find Revision Notes for Chapter 11 Class 12 Business Studies?

In today's society, Business Studies is a fascinating and vital topic. Students will certainly appreciate it as they learn about many areas of business. When studying for this topic, students may be expected to study a considerable quantity of knowledge. They don't need to be concerned since Vedantu is always eager to assist. Simple revision notes for Class 11 Business Studies will be available to students. These notes are very valuable for students, especially for last-minute study before exams.

5. Is Chapter 11 of Class 12 Business Studies easy?

Business studies is a fascinating topic. People with a natural aptitude for business can undoubtedly benefit from understanding the various business fundamentals. Yet, like with any topic, if you do not attempt to comprehend the fundamental principles of Chapter 11, it may look frightening to you. Chapter 11 of Class 12 Business Studies will be a breeze if you study the ideas and problem diagrams well and recall the key definitions.

6. What do you mean by “Branding”?

Branding is the process of developing a company's distinctive identity via the creation of a distinct brand for the business. This include developing a company's name, image, and logo. This is regarded as a key part of decision-making in any company's marketing. To sell their business, successful organisations employ effective branding techniques. Effective branding leads to more customers and more successful product marketing.

7. How are products classified?

Products of a company are classified into two major categories:

Consumer products: These are products directly purchased by the consumers for their personal use. Such consumer products comprise three types

Convenience products 

Shopping products

Speciality products

Industrial products: These are products used for producing other products. These include materials and parts, capital items, and supplies, and business services.

Vedantu provides useful notes for this topic on their website. You can access these revision notes from the Vedantu app.

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CBSE Guide Marketing Management class 12 Notes Business Studies

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12 Business Studies notes Chapter 11 Marketing Management

Download CBSE class 12th revision notes for chapter 11 Marketing Management in PDF format for free. Download revision notes for Marketing Management class 12 Notes and score high in exams. These are the Marketing Management class 12 Notes Business Studies prepared by team of expert teachers. The revision notes help you revise the whole chapter 11 in minutes. Revision notes in exam days is one of the best tips recommended by teachers during exam days.

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CBSE Class 12 Business Studies Revision Notes CHAPTER – 11 Marketing Management class 12 Notes Business Studies

MEANING OF SOME IMPORTANT TERMS:

• Needs = basic human requirements. Essential items necessary or fundamental to human existence.

• Wants= desire for a particular product. Tend to be “satisfier specific”.

• Demand- willingness to buy is backed by purchasing power

• Utility – want satisfying power of a product.

• What can be marketed:

• A product = • bundle of utility not confined to physical products but can refer to other things of value such as services, ideas, place. It refers to anything that satisfies a need or want.

• may be tangible or intangible(i.e. goods and services)

• even people can be marketed • Customers= people or organizations that seek satisfaction of their wants. • “Marketers‟ = • Anyone taking a more active role in the process of exchange is called a marketer. Normally it is the seller. But in certain situations, it may also be the buyer. This may be in the situation of rare supply.

• Sellers as marketer are the deliverers or providers of satisfaction. They makes available products or services and offers them to customers with an intention of satisfying customer needs and wants. They can be divided into:

• Goods marketers (such as Hindustan Lever)

• Services marketers (such as Indian Airlines)

• Others marketing experiences (such as Walt Disney) or places (like tourist destinations). • Marketing activities =activities carried on by the marketers to facilitate exchange of goods and services between the producers and the users of such products. • Market is:

• Place where buyers and sellers meet and conduct buying and selling activities. It does not necessarily mean a geographical place(e.g. conduct of business thro telephone, mail or internet)

• The other ways in which this term is being used is in the context of a product market (cotton market, gold or share market), geographic market (national and international market), type of buyers (consumer market and industrial market) and the quantity of goods transacted (retail market and wholesale market).

• In the modern marketing sense, it refers to a set of actual or potential buyers of a product or service i.e. all customers who share a particular need or want and are able to buy the product (also referred to as target markets)

Important Features of Marketing

1. Needs and wants: Satisfaction of the needs and wants of individuals and organizations.

2. Creating a market offering: Complete offer for a product of service.

3. Customer value: greatest benefit or value for the money.

4 . Exchange mechanism: Exchange of products/services for money/for something of value to them.

Meaning and concept of Marketing Management

Marketing management means management of the marketing functions. It is the process of organizing, directing and controlling the activities related to marketing of goods and services to satisfy customers’ needs & achieve organizational goals.

The process of Marketing involves:

i. Choosing a target market

ii. Getting, keeping as well as growing the customer

• that is, ensure that the target customers purchase the firm‘s product, ensure that they keep their customers satisfied with the products and attract new customers so that the firm can grow.

iii. Create, develop and communicate superior values to the customers.

Functions of Marketing/Marketing activities

Gathering And Analyzing Market Information:

• systematic investigation of facts

• SWOT analysis

• Necessary to identify needs

• Decisions can be wrt. Identifying customer needs and wants, identifying buying motives, choice of a brand name, packaging and media used for promotion.

• Data is available both from primary as well as secondary sources.

Marketing planning : • Aim = to develop a complete marketing plan so that the marketing objectives can be achieved. • It also must specify the action programs . • E.g if a marketer aims at enhancing his market share in the country in the next three years, then his marketing plan should include various important aspects like plan for increasing level of production, promotion of products etc.

Product designing and development: • Involves decisions regarding the product to be manufactured and it‘s attributes such as its quality considerations, packaging, models and variations to be introduced etc.. • Done by anticipating customer needs and developing new products or improving existing products to satisfy these needs.

Standardization and grading: • Standardization = Process of setting certain standards for a product on the basis of its desired qualities. E.g. ISI mark for electrical goods. • Grading = Division of products into classes made up of units possessing similar features such as for agricultural products

Packaging and labeling: • Packaging‘ refers to designing a package (that is a wrapper or a container) for a product. • Packaging protects the products from damage , risks of spoilage, breakage and leakage. It also makes buying convenient for customers and serves as a promotional tool. • Labeling = designing a label to be put on the package. It may vary from a simple tag to complex graphics.

Branding • Whether to sell the product in its generic name or in a Brand name. • Helps in differentiation, builds customer loyalty and promote its sale. • Decision = whether each product will have a separate brand name or the same brand name to be used for all products.

Concepts & Philosophies of Marketing

1. PRODUCTION CONCEPT = In the earlier days of the industrial revolution, the number of producers were limited, → limited supply of industrial products → not able to match demand . So, anyone who was able to produce goods could easily find buyers for the same.

2. PRODUCT CONCEPT= With passage of time, the supply improved→ customers started looking for products that were superior in performance, quality and features.

3. SELLING CONCEPT= increase in scale of production→ competition among the sellers → Product quality and availability alone did not ensure survival as a large number of firms were now selling products of similar quality.

4. MARKETING CONCEPT : Implies that a firm can achieve its goals by identifying needs of the customer and satisfying them better than the competitors. Customer satisfaction is the precondition for realizing the firm’s goal and objectives,

5. SOCIAL MARKETING CONCEPT : Under this concept customer satisfaction is supplemented by social welfare. Some products bring harmful effect on environment so these should not be supplied. It pays attention to the social, ethical and ecological aspects of marketing. Raman, Joginder, John, Iqbal and Shreya are friends. They are operating different business. Each one has his/her own concept regarding operating their business. Raman believes in producing products at a large scale. Thereby decreasing the average cost of the products and selling it’s at a reasonable price.

Meaning and Concept of Marketing and Selling

Marketing is a wide term. It refers to a large set of activities of which selling is just one part. A marketer before making the sale does a lot of other activities such as planning the type, design of the product, the price and selecting the distribution outlets at which the same would be available.

Selling: refers to the sale of goods or service through publicity, promotion and salesmanship. The title of the product is transferred from seller to buyer. The entire focus in selling is to covert the product into cash.

Difference between Selling & Marketing

Marketing Mix

There are a large number of factors that affect marketing decisions. They can be classified as:

• Non-controllable factors and Controllable factors: To be successful, a firm needs to take sound decisions wrt controllable factors while keeping the environmental factors in mind.

To develop marketing tools, marketing managers use the above mentioned controllable factors and the set of marketing tools that a firm uses to pursue its marketing objectives in the target market is described as Marketing Mix. Success of a market offer will depend upon how well these ingredients are mixed to create superior value for customers and simultaneously achieve their sales and profit objective. Thus, an ideal marketing mix would need: • Producing satisfying products • Offered to buyers at a reasonable price • Conveniently available • About which communication is offered

Marketing mix refers to ingredients or the tools or the variables which the marketeer mixes in order to interact with a particular market.

11.8.1 Elements of Marketing Mix

The four main elements of marketing mix as classified by MCcarthy are:

A. Product B. Price C. Place/Physical Distribution D. Promotion

Elements/4 Ps of Marketing Mix

4. Place Mix: Physical distribution: Various decisions regarding distribution of products.

• Channels of distribution: Whether wholesalers, retailers are to be used or not.

• Physical movement of the products from producer to consumers.

• Storage, transportation, managing inventory (stock) etc.

i) Branding:

The process used to create a distinct identity of a product. It is the process of using a name, term, symbol or design individually or in some combination to identify a product.

Brand : Name, term, sign, design or some combination of the above used to identify the products of the seller and to differentiate them from those of competitors .

Qualities of a Good Brand Name

1. Short, easy to pronounce, spell and remember(Rin, Vim, Ponds)

2. Suggest product benefits and quality (Genteel, Boost)

3. Distinctive (Zodiac, Safari)

4. adaptable to packing or labeling requirements, to different advertising media and to different languages.

5. Versatile to accommodate new products(Maggi)

6. Capable of being registered and protected legally

7. Have staying power(should not get outdated easily.

Advantages of Branding-

Advantages to the marketers:

1. Enables product differentiation:.

• Distinguishes the firms products from that of its competitors, thus secures and controls its markets.

2. Helps in advertising and display programmes:

• Without a brand, the advertiser can only create an awareness about the generic product and not be sure of the sale of his brand.

3. Differential pricing:

• As when customers like and become used to a brand, they would agree to pay a little more for it than the competing product

4. Ease in introduction of a new product

minimizes selling costs – enjoys the reflected glory of the brand.

Advantages to Customers:

1. Helps in product identification:

• If customer is satisfied with a brand, he will not make a close inspection every time.

2. Ensures quality:

• deviation in quality, customers can have a recourse to the manufacturer/marketer. ↑ confidence and level of satisfaction of customers

3. Status symbol:

• Because of their quality, customers feel proud of suing them and so ↑ level of satisfaction of customers

2. (ii) Packaging: Act of designing and producing the container or wrapper of a product. Good packaging often helps in selling the product so it is called a silent salesman.

Levels of Packaging

1. Primary Package: refers to the product’s immediate container e.g. toffee in a wrapper, a match box.

2. Secondary Package : refers to additional layers of protection that are kept till the product is ready for use e.g. a Colgate toothpaste usually comes in a card board box.

Functions of Packaging

1. Product Identification : Packaging helps in identification of the product.

2. Product Protection: The main function of the packing is to provide protection to the product from dirt, insects and breakage.

3. Convenience: It provides convenience in carriage, stocking and in consumption.

4. Product Promotion: Packaging simplifies the work of sales promotion.

Advantages of Packaging

• Rising Standards Of Health And Sanitation – As chances of adulteration in such goods are minimized

• Self-Service Outlets – so some of the traditional role assigned to personal selling w.r.t promotion has gone to packaging.

• Innovational Opportunities – innovation on packaging used to market products e.g. tetra packs for milk.

• Product differentiation – colour, size, material etc of packaging makes a difference in perception of customers about the quality of the product.

3 . Labelling :

Labelling means putting identification marks on the package. Label is a carrier of information & provides information like – name of the product, name of the manufacturer, contents of the product, expiry and manufacturing date, general information for use, weight etc. Labels perform following functions:

1. Identify the product: It helps the customers to identify the product from the various types available. For example: We can easily identify a Cadbury chocolate from the various chocolates by purple colour of its label.

2. Describe the product and specify its contents:

5. Providing information required by law: There is legal compulsion to print batch no., contents, max retail price, weight/volume on all the products and statutory warning on the packet of cigarettes, “Smoking is injuries of health”: In case of hazard on/poisonous material appropriate safety warnings need to be put.

II P-PRICE MIX:

Meaning and concept of Price: Sum of values that consumers exchange for the benefit of having or using the product Price may therefore 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 a service

Normally expressed in monetary terms. Decisions include decisions wrt basic price, discounts to be offered etc

Factors determining price determination:

1. Pricing Objectives

(a) to maximise profits in the short term-tend to charge maximum price.

(b) Obtain large share of the market i.e., by maximising sales it will charge lower price.

(c) Firm is operating in the competitive market it may charge low price for it.

2. Product cost:

• Price should include all costs and also include a fair return for undertaking the marketing effort and risk.

• Includes costs of producing, distributing and selling the product.

• Costs sets the floor price – the minimum level / lower limit at which the product may be sold. • Price should recover Total costs (Fixed costs/overheads + Variable costs+ Semi-variable costs) in the long run, but in certain circumstances(introduction of a new product/entry into a new market) product price may not cover all the costs for a short while.

3. Utility and demand:

• Utility provided by the product and the demand of a product set the upper limit of price that a buyer would be willing to pay for a product.

• Buyers pay to the point where the utility of the demand is more than or eequal to the utility derived from it.

• Law of demand = consumers purchase more at a lesser price.

• Elasticity of demand = responsiveness of demand to change in prices of a product. Demand = elastic if a small change in price results in a large change in quantity demanded.

• If demand is inelastic, firm can fix higher prices.

4. Competition in Market : Prices of competitors need to be considered before fixing prices.

5. Government Policies: Products regulated by government pricing regulations need to be priced as per government policies.

III. P-Place Mix/Physical Distribution Mix

A set of decisions needs to be taken to make the product available to customers for purchase and consumption.

• The marketer needs to make sure that the product is available at the right quantity, at the right time and at the right place.

• It requires development of:

• Channels of distribution

• Physical distribution of products.

Components of physical distribution-

1. Order Processing: Accurate & speedy order processing leads to profit & goodwill & vice versa.

2. Transportation: Add value of the goods by moving them to the place where they are required.

3. Inventory control: Additional demand can be met in less time, the need for inventory will also be low.

4. Ware housing: Need arises to fill the gap between the time when the product is produced & time when it is required for consumption.

Channels of Distribution

• Includes a series of firms/ individuals/ people/institutions/merchants and functionaries who form a network which helps in the transfer of title to a product from the producer to the end consumer.

• They help to overcome time, place and possession gaps that separate the goods and services from those who need/want them from those who want them

Types of Channels:

Direct Channel — Manufacturer-Customer. Eg. mail order, internet, door to door selling.

Indirect Channel —

1. Manufacturer-Retailer-Customer.

Usually used for specialty goods like expensive watches, appliances, Cars( Maruti Udyog) etc.

2. Manufacture-wholesaler-Retailer-customer.

Usually used for consumer goods like soaps , salt etc.

3. Manufacture → Agent → Wholesaler → Retailer → Customer

Factors Determining Choice of Channels of Distribution

IV. P-Promotion Mix

Tools/Elements of Promotion Mix

1. Advertising: Most commonly used tool of promotion. It is an impersonal form to communication, which is paid by the marketers (sponsors) to promote goods and services. Common mediums are newspaper, magazine, television & radio.

Role or Importance of Advertising

1. Paid Form –sponsorer has to bear the costs of communicating with the prospective buyer.

2. Impersonality – no direct face to face contact between prospects and advertisers. Creates a monologue and not a dialogue.

3. Identified Sponsor –undertaken by an identified individual who makes the advertising effort and bears the costs of it.

4. Mass Reach – large number of people over a large geographical area can be reached.

5. Enhancing Customer Satisfaction And Confidence – creates confidence and prospective buyers feel more comfortable and assured about the product quality

6. Expressiveness – due to development in art, computer designs and graphics, special effect can be created that makes simple products and messages look attractive.

7. Economy- because of its wide reach, overall cost of advertising gets spread over a wide audience and per unit cost of reach ↓.

Objections against Advertising: Though advertising is one of the most frequently used medium of promotion of goods & services but it attracts a lot of criticism/objections against it, which are as follows: 1. Increased Product Price: Which is ultimately added to product cost, manufacturers pass this cost to ultimate customers. 2. Confusion to Customers: The number of advertisements shown for a single product having different brands confuse the customers and it becomes very difficult for them to make choice. 3. Encouraging sale of Inferior Products: In many cases some product features are over emphasized. 4. Advertisement of Bad Tastes: Events, models degrade the human dignity. 5. Undermines Social Values and Promotes Materialism: It induces the customers to buy more and more products. Because of emphasis on materialism, social relationships are distorted which brings social disorder. In the changed economic environment of globalisation, advertising is considered as an important tool of marketing. It helps a firm in effectively communicating with its target market, increasing the sale and thereby reducing the per unit cost of production. It is not a social waste rather it adds value to the social cause by giving a boost to production and generating employment.

2. Personal Selling Personal selling consists of contacting prospective buyers of product personally i.e face to face interaction between seller and buyer for the purpose of sale.

Features of the Personal Selling

1. Personal contact is established under personal selling.

2. Oral conversation.

3. Quick solution of queries.

4. Receipt of additional information.

1. Physical qualities: Tidy appearance, good posture, cheerful smile etc

2. Psychological qualities: good nature with Empathy and ego drive,

3. Technical quality: Full technical knowledge about the product,

4. Good communication skills – Polite, tactful, having good manners etc

5. Honesty,

6. Courtesy,

7. Persistent- must not give up as one additional argument can close a sale.

Merits of Sales Promotion:

1. Attention Value: Attract attention of people through use of incentives. 2. Useful In New Product Launch: Sales promotion tools induce people to break away from their regular buying behavior and try new products. 3. Synergy in Total Promotional Efforts: Sales promotion activities add to the overall effectiveness of the promotional efforts (advertising and personal selling) of a firm.

• Limitations Of Sales Promotion – if used frequently: a. Reflects Crisis: A firm that frequently relies on sales promotion activities may give the impression that it is unable to manage its sales and there are no takers for its products. b. Spoils Product Image: Consumers may feel that the products are not of good quality or are not appropriately priced.

1. Product Combination: Offering another product as gift along with the purchase of a product.

2. Istant draws and assigned gift: Scratch a card and instantly win a prize with the purchase of a TV, T. Shirt, Refrigerator etc.

3. Q uantity Gift: Offering extra quantity of the product e.g., Buy three LUX soaps and get one free.

4. Refunds: Refunding a part of price paid by customer on production of some proof of purchase. e.g Rs 2 off on presentation of empty pack of Ruffle lays

5. Sampling : Offer of free samples of the product to potential customers. Generally used at the time of introduction of a product.

Public Relations

“The Chartered Institute of Public Relations” defines Public Relations as a strategic management function that adds value to an organization by helping it to manage its reputation Public relations covers a wide range of tactics, usually involve providing

information to independent media sources in the hope of gaining favorable coverage. It also involves a mix of promoting specific products, services and events and promoting the overall brand of an organization, which is an ongoing tact. Public Relation tools include:

1. Press Release: A press release is an announcement of an event, performance, or other newsworthy item that is issued to the press by a public relations professional of an organization. It is written in the form of a story with an attractive heading so that the media quickly grasp and circulates the message through newspaper/radio/television/internet.

2. Press Kits: It is a comprehensive package of information outlining a company’s products and services most frequently sent to members of the press. It includes

• A brief company biography.

• Information of senior management.

• Comments from customers.

• Reprints of newspaper and magazine articles.

• Photos of products.

3. Brochures: It is a booklet published by the organization which contains the organization’s background, its ethics, vision, mission, its past, present and future projects, its CISP, etc. E.g.: brochure given to new employees to give them a gist of the organization.

4. Newsletter: It is a printed publication produced at regular intervals focusing on a particular set of people. The content of a newsletter is presented in a writing style that is less formal and letter-like. For example, a newsletter published by a college consists of information about activities conducted during a particular period, special achievements by students or teachers, etc.

5. Events and Press support: Special events are acts of news development. The ingredients are time, place, people, activities, drama, showmanship; one special event may have many subsidiary events, such as luncheons, banquets, contests, speeches, and many others as part of the buildup.

6. Conferences and Seminars: Conferences and seminars are conducted for making people aware about the organization. For example travel companies generally call prospective clients and offer travel packages. The members are contacted through telephones and asked to attend seminar.

7. Websites: A website acts as a window for the outside world to know an organization. So it is designed not just to serve as a resource for members, but also to present a positive message to non-members who are browsing through.

ROLE OF ‘PR’ IN AN ORIGINATION

(i) Smooth functioning of business and achievement of objectives. (ii) Building corporate image that affects favorably on its products. Up keep of parks, gardens, sponsoring sports activities etc.

• CBSE Revision notes (PDF Download) Free
• CBSE Revision notes for Class 12 Business Studies PDF
• CBSE Revision notes Class 12 Business Studies – CBSE
• CBSE Revisions notes and Key Points Class 12 Business Studies
• Summary of the NCERT books all chapters in Business Studies class 12
• Short notes for CBSE class 12th Business Studies
• Key notes and chapter summary of Business Studies class 12
• Quick revision notes for CBSE board exams

CBSE Class-12 Revision Notes and Key Points

Marketing Management class 12 Notes Business Studies. CBSE quick revision note for class-12 Business Studies, Chemistry, Math’s, Biology and other subject are very helpful to revise the whole syllabus during exam days. The revision notes covers all important formulas and concepts given in the chapter. Even if you wish to have an overview of a chapter, quick revision notes are here to do if for you. These notes will certainly save your time during stressful exam days.

• Revision Notes for class-12 Physics
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• Revision Notes for class-12 Computer Science
• Revision Notes for class-12 Informatics Practices
• Revision Notes for class-12 English Core
• Revision Notes for class-12 History
• Revision Notes for class-12 Physical Education

To download Marketing Management class 12 Notes Business Studies, sample paper for class 12 Physics, Chemistry, Biology, History, Political Science, Economics, Geography, Computer Science, Home Science, Accountancy, Business Studies and Home Science; do check myCBSEguide app or website. myCBSEguide provides sample papers with solution, test papers for chapter-wise practice, NCERT solutions, NCERT Exemplar solutions, quick revision notes for ready reference, CBSE guess papers and CBSE important question papers. Sample Paper all are made available through  the best app for CBSE students  and myCBSEguide website.

• Nature and Significance of Management class 12 Notes Business Studies
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Marketing Management Notes for Class 12 Business Studies (PDF)

Marketing Management Notes for Class 12 Business Studies are here. You can download the Marketing Management Notes PDF to study all the topics in this chapter. Moreover the class 12 Business Studies notes include chapter summary, definitions, examples, and key pointers for Marketing Management . Thus if you are studying 12th class Business Studies, then the  Marketing Management notes  will help you easily understand the topic and ace it.

Marketing Management Notes for Class 12 Business Studies

Marketing Management is a critical part in the study of Business Studies . In India, it is taught in 12th class. Therefore the class 12 Notes for Business Studies topic Marketing Management have been compiled by teachers and field experts. They explain the complete chapter of Marketing Management in one-shot . Whether you are studying the topic Marketing Management to complete your 12th class syllabus, or for any competitive exam like JEE, NEET, UPSC, you can simply refer these notes to complete the chapter in one-shot!

Marketing Management Notes Download Link – Click Here to Download PDF

Marketing Management Notes for Class 12 Business Studies PDF

The PDF of Marketing Management class 12 notes is as follows. You can view the document here and also download it to use it anytime for future reference whenever you want to brush up your concepts of Business Studies.

Class 12 Notes for Business Studies – All Chapters

If you are studying Marketing Management, then chances are that you will study the other chapters in class 12 Business Studies. Therefore we have listed all the notes here in one place, as follows.

• Business Environment Notes
• Consumer Protection Notes
• Controlling Notes
• Directing Notes
• Financial Management Notes
• Financial Markets Notes
• Marketing Management Notes
• Nature and Significance of Management Notes
• Organising Notes
• Planning Notes
• Principles of Management Notes
• Staffing Notes

Class 12 Notes for All Subjects

• Class 12  Biology  Notes
• Class 12  Business Studies  Notes
• Class 12  Chemistry  Notes
• Class 12  Economics  Notes
• Class 12  English  Notes
• Class 12  Geography  Notes
• Class 12  Maths  Notes
• Class 12  Physics  Notes
• Class 12  Sociology  Notes

NCERT Solutions for Class 12 Business Studies Marketing Management

The Marketing Management notes here help you solve the questions and answers . Also, you can complete the class 12 Marketing Management worksheet using the same. In addition you will also tackle CBSE Class 12 Business Studies Important Questions with these class 12 notes .

However if you still need help, then you can use the NCERT Solutions for Class 12 Business Studies Marketing Management to get all the answers. Marketing Management solutions contain questions, answers, and steps to solve all questions.

Notes for All Classes

Marketing Management Notes for Class 12 Business Studies – An Overview

Class 12 marketing management notes for all boards.

You can use the class 12 Business Studies notes of Marketing Management for all boards.

The education boards in India for which Marketing Management notes are relevant are – CBSE, CISCE, AHSEC, CHSE Odisha, CGBSE, HBSE, HPBOSE, PUE Karnataka, MSBSHSE, PSEB, RBSE, TBSE, UPMSP, UBSE, BIEAP, BSEB, GBSHSE, GSEB, JAC, JKBOSE, KBPE, MBOSE, MBSE, MPBSE, NBSE, DGE TN, TSBIE, COHSEM, WBCHSE .

Therefore you can refer to these notes as CBSE, CISCE, AHSEC, CHSE Odisha, CGBSE, HBSE, HPBOSE, PUE Karnataka, MSBSHSE, PSEB, RBSE, TBSE, UPMSP, UBSE, BIEAP, BSEB, GBSHSE, GSEB, JAC, JKBOSE, KBPE, MBOSE, MBSE, MPBSE, NBSE, DGE TN, TSBIE, COHSEM, WBCHSE notes for class Class 12 / Class 12th / XII / HS 2nd Year / HSC / 2nd PUC / Inter / HS / HSSLC Business Studies for the topic Marketing Management.

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• Class 12th /

Marketing Management Class 12 Notes

• Updated on  
• Jan 28, 2022

Business Studies is an integral subject of the class 12 commerce syllabus and marketing management is one of the most scoring chapters of the class 12 business studies syllabus. If you are thorough with your notes and prepare well, it can be easy as well. . Here in this blog, we shall discuss in brief about this chapter. If you are preparing for your class 12 board exams then it would be of great help to you. Read on to know more about m arketing management class 12.

Important Definitions in Marketing Management Class 12

Market : Set of potential and actual buyers of a product or service’.

Customer : People or organisations that seek satisfaction of their needs and wants.

Marketer or Seller : The marketer is a person or organisation who offers products or services to the customer with an intention of satisfying the customer.

Marketing: It is a social process by which individuals acquire what they need and want through creating, offering and freely exchanging products and services of value with others.

JF Pyle says, “Marketing is that phase of business activity through which the human wants are satisfied by the exchange of goods and services.”

Essential Features of Marketing

Here are the important features of marketing:

• Need and want
• Creating a market offering
• Customer value
• Exchange Mechanism

Marketing Management 

P lanning, organising, directing and controlling the activities in exchange of goods and services. Marketing management involves:

• Identifying the target market
• Growing customers in target market

Difference between Selling and Marketing

One can differentiate between marketing and selling on the basis of

• Scope 
• Objective 
• Start and end 
• Efforts 
• Approach 

Marketing Management Philosophies

Listed below are few of the marketing management philosophies:

• Production concept
• Product concept
• Selling concept
• Marketing concept
• Societal concept

Objectives of Marketing Management

• Creates demand
• Market share
• Profitable sales volume through customer satisfaction

  Functions of Marketing

• Gathering and analysing market information
• Market planning
• Product designing and development
• Standardisation and grading
• Packaging and Labelling
• Customer support services
• Pricing of products
• Promotion and selling
• Physical distribution
• Transportation
• Storage and warehousing

Marketing Mix

Refers to the ingredients or the tools or the variables mixed by the marketeer to interact with a particular market.

Philip Kotler defines marketing mix as, “Marketing mix are the set of – marketing tools that firm uses to pursue its marketing objectives in the target market.”

 Elements of Marketing Mix

• Product : the tangible or intangible products that are offered to the customer.

Classification of Product

Products can be classified in two categories

• Consumer goods
• Industrial goods

Consumer Goods

One of the important sections of Marketing Management Class 12 is Consumer Goods. These are defined on the basis of certain characteristics. Here are the some of the categories and their examples as Consumer Goods:

• Durable products
• Non-durable products
• Convenient goods
• Shopping goods
• Speciality goods

Industrial Product

In Marketing Management Class 12, Industrial products are used as an input or raw material in the production of consumer goods, e.g., tools, machinery etc. Features of industrial products are a number of buyers, the channel of distribution, geographical concentration, derived demand, technical consideration, reciprocal buying and leasing.

Industrial goods are classified as

• Material and Parts 
• Capital Item
• Supplies and Business Services

Product Mix

It refers to important decisions that are related to the product such as quality of product, product packing etc.

• Branding : A brand is the identification of a product. It can be in the form of a name, symbol or design etc.
• Various Terms Related to Brand- Brand, Brand Name, Brand Mark and Trade Mark.
• Helps in product differentiation
• Helps in advertising
• Differential pricing
• Easy introduction of new product
• Helps in identification of product
• Ensures quality
• Status symbol

A set of tasks or activities that involve designing, production of an appropriate wrapper, container for the product.

• There are three levels of packaging
• Primary packaging
• Secondary packaging
• Transportation packaging
• The rising standard of health and sanitation
• Self-service outlets
• Product differentiation
• Innovational opportunities
• Functions of Packaging
• Identification 
• Convenience  

 Labelling

The process of labelling involves putting identification marks on the package. Functions of labels are:

• Describe the product and specify its contents
• Identify the product
• Helps in grading
• Promotes sale
• Providing information required by law/legal requirement

It is the value for which a product or service is provided to the customer by the seller.

This involves taking important decisions related to fixing the price of any commodity. The factors that must be kept in mind while fixing the price of a commodity:

• Pricing objectives
• Product cost
• Extent of competition in the market
• Customer’s demand and utility
• Government and legal regulation
• Marketing methods used

Pricing Strategies

There are two pricing strategies – Price skimming and Penetration pricing.

It refers to important decisions that involve physical distribution of goods and services. These decisions include deciding the channel of distribution, market for distribution.

 Functions of Distribution Channels

• Sorting/Granding
• Accumulation
• Negotiation
• Risk taking

Factors Determining Choice of a Channel

The factors that are essential in determining choice of a channel are give below:

• Product related factors
• Competitive factors
• Company related factors
• Market related factors
• Environmental factors

Promotion Mix

It refers to all the important decisions that are related to promotion of sales of products and services.

Given below are the important tools or elements of promotion, are also called elements of promotion mix:

Advertising

• Sales promotion
• Personal selling

It is defined as the paid form of nonpersonal presentation and promotion of ideas, goods or services and by identified sponsor. The advantages of advertisement are listed below:

• Expressiveness
• Enhancing customer satisfaction

Apart from the advantages, there are certain Disadvantages of Advertisement as well, listed below:

• Less forceful
• Less effective
• Difficulty in media choice
• Inflexibility
• Lack of feedback
• Adds to cost
• Undermines social values
• Confuses the buyers
• Encourages sale of inferior products
• Some advertisements are not appealing

Different Platforms Available for Advertising

Sales promotion.

It is the short term use of certain promotional activities that stimulate the customer to buy the product.

Sales Promotion Techniques for Customers

• Rebate and Discount
• Refunds and Product combination
• Quantity gift and Instant draws and assigned gift
• Lucky draw and Usable benefit
• Full finance @ 0%
• Sampling and Contents

Merits of Sales Promotion

• Attention attract
• Useful in new product launch
• Synergy in total promotion efforts
• Aid to other promotion tools

Demerits of Sales Promotion 

• Reflects Crisis 
• Spoils Product Image

Personal Selling

As the name suggests personal selling means selling personally and involves one on one interaction between the seller and the customer for the purpose of sale.

So, this was all about Marketing Management class 12l. We hope it helps you prepare for your exams and also aids you in revising. If you are confused about which career path to choose after class 12th commerce then get in touch with our experts at Leverage Edu. They will help you choose a stream that suits you perfectly and help you carve a niche for yourself. Sign up for a free session today! 

So, this was all about Marketing Management class 12l. We hope it helps you prepare for your exams and also aids you in revising. If you are confused about which career path to choose after class 12th commerce then get in touch with our experts at Leverage Edu . They will help you choose a stream that suits you perfectly and help you carve a niche for yourself. Sign up for a free session today! 

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• NCERT Solutions
• NCERT Class 12
• NCERT Class 12 Business Studies
• Chapter 11: Marketing

NCERT Solutions for Class 12 Business Studies Chapter 11 - Marketing

* According to the CBSE Syllabus 2023-24, this chapter has been renumbered as Chapter 10.

NCERT Solutions is an extremely helpful resource to prepare well for the CBSE Class 12 Business Studies examination. This study material provides students with deep knowledge of the concepts and topics covered in the chapter, and the solutions of NCERT designed by the subject-matter wizards are easy to understand.

NCERT Solutions for Class 12 Business Studies Chapter 11 – Marketing help students clear their doubts while solving the textbook questions and thus achieve high ranks in the Class 12 board examinations. The Class 12 NCERT Solutions provides a clear picture of what is market and its functioning.

Download the PDF of NCERT Solutions for Class 12 Business Studies Chapter 11 – Marketing

Access NCERT Solutions for Class 12 Business Studies Chapter 11

Very short answer questions ncert business studies solutions class 12 chapter 11.

Q.1 State any two advantages of branding to marketers of goods and services.

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.

Q.2 How does branding help in differential pricing?

A brand name helps in creating an image among consumers about the product’s quality. It helps customers differentiate the products of different firms. Marketers can charge different prices, and having a good brand image, the organisation can charge premium prices.

Q.3 What is the societal concept of marketing?

The societal concept of marketing is the concept where the needs of the market are identified by the organisation along with target customers. It helps in delivering products and services efficiently. Businesses should meet the long-term requirements of the consumer and look after their well-being through their products.

Q.4 List the characteristics of convenience products.

Products that can be bought immediately on a frequent basis and with minimum effort are referred to as convenience products. The following are the characteristics of convenience products:

1. Products are easily available, and there is minimum effort and time are required. Also, products are located in convenient places.

2. These products are frequently consumed and have an ongoing demand. Essential commodities are classified as convenience products.

3. Convenience goods are available at low prices and in units of small products.

4. These products have high competition and require a good amount of advertising.

Q.5 Enlist the advantages of packaging consumer products.

Packaging is the technique of designing a container for a product. It has the following advantages:

1. It enables product differentiation.

2. By using different colours, symbols and pictures, it acts as a promotional tool.

3. Greater convenience is achieved in product handling.

4. It protects the quality of the product by preventing the breaking or spoiling of the product during transportation and storage.

Q.6 What are the limitations of advertising as a promotional tool? Enlist.

Advertising as a promotional tool has the following limitations:

1. It is less forceful due to a lack of personal communication

2. It is difficult to evaluate the effectiveness of advertising

3. Advertisements are standard in form and cannot be modified as per different consumer group requirements.

4. The effectiveness is low as there can be a large number of advertisements.

Q.7 List five shopping products purchased by you or your family during the last few months.

The following products were purchased:

2. Mixer Grinder

3. Electric Iron

5. Laptop Accessories

Q.8 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 the next three years. To achieve this objective, he specified an action programme. Name the function of marketing being discussed above. (Ans. Marketing planning.)

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 Questions NCERT Business Studies Solutions Class 12 Chapter 11

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

Marketing is the process where there is interaction between buyers and sellers for the purchase of goods and services. Marketing has different approaches, sometimes involving pre and post-production processes. Marketing performs the following functions in the exchange of goods and services:

1. Planning

2. Designing of the product

3. Packaging

4. Labelling

5. Branding

6. Warehousing

7. Transportation

8. Support services

Q.2 Distinguish between the product concept and production concept of marketing.

Q3. Product is a bundle of utilities? Do you agree? Comment.

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.

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

The products that are used as inputs in the production of other goods are known as industrial products. These goods are used as raw materials for producing finished goods, on the other hand, consumer products are those products that customers utilise for consumption. The points of distinction between industrial and consumer products are as follows:

Q.5 Distinguish between convenience product and shopping product.

Q.6 Describe the functions of labelling in the marketing of products.

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.

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

Intermediaries are an important part of product marketing. They help in the transfer of goods from the production centre to the consumers.

In the case of non-durables, intermediaries perform the following functions:

1. Sorting goods into homogeneous groups based on their characteristics.

2. Maintains large stock of goods that ensures supply is well maintained.

3. Breaking down bigger stocks into small units.

4. Maintaining a variety of goods in a single place.

5. Helping the manufacturers in promoting the product by putting up display boards and banners.

6. By acting as a middleman and setting the deal by negotiating the product price so that both consumer and manufacturer are satisfied.

7. Acquiring goods from manufacturers and keeping them in safe custody and bearing the risk of market fluctuations.

Q.8 Explain the components of physical distribution briefly.

The movement of products from the place of production to the place of consumption is called physical distribution. The components of physical distribution 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.

Q.9 Define advertising. What are its main features? Explain.

Advertising is a technique for promoting a product. Companies use advertising as a medium to attract customers towards their products in order to make a sale. The most common mediums of advertising are newspapers, television, internet, social media, magazines etc.

Here are some of the important features of advertising:

1. Advertising is a paid form of promoting products or services. The sponsor bears the cost of advertising.

2. It is an impersonal mode of communication. It involves no face-to-face communication between the advertiser and the customer. It is devoid of personal touch.

3. There are some sponsors who like to design an advertisement and also bear the costs that are involved.

Q.10 Discuss the role of ‘sales promotion’ as an element of the promotion mix.

Sales promotions are incentives that are sometimes offered to encourage sales of the product. The typical sales promotions will include gifts, discounts, free samples etc. These activities are in addition to the other promotional activities taken by the company, such as direct selling and advertising. These promotions drive purchases. Sales promotional activities are beneficial during a new product launch, where they can boost sales.

Q.11 As 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.

The marketing manager will face the following societal concerns:

1. The activities that are carried out by businesses should not cause environmental pollution.

2. The facilities offered in the hotel should be pocket friendly.

To resolve these concerns, the manager can take the following steps:

1. To solve the pollution issue, the manager can check that wastes from the hotel are managed in a proper way. Wastes should be disposed of as per their characteristics, such as dry and wet waste.

2. The prices for the items that are sold inside the hotel premises must not be more than the maximum retail price of the item.

Q.12 What information is generally placed on the package of a food product? Design a label for one of the food products of your choice.

The most common information provided in food packages are as follows:

1. Product name

2. Manufacturer name and address of plant

2. Logo of the product

3. Ingredients of the products

4. Directions of use/How to prepare

5. Product features

6. Caution (if needed to be taken)

7. Customer care or grievance cell number

Q.13 For buyers of consumer durable products, what ‘customer care services’ would you plan as a manager of a firm marketing a new brand of motorcycle? Discuss.

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 Questions NCERT Solutions Business Studies Class 12 Chapter 11

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

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.

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

The marketing mix is a set of marketing tools that a company uses to promote their product or brand in the market. Marketing tools are factors that determine the outcome of the business. The marketing mix consists of 4 P’s, which are product, price, place and promotion, and are described in detail below:

1. Product: A product is any good or service that offers the customer value and satisfies their needs. The product must satisfy the requirements of the customer then only it will be successful. It should also contain proper sales support and services.

2. Price: Price is the second factor of the marketing mix. It refers to the money customers pay to obtain any service or goods. Price is an essential factor for consumers. It affects the demand for a product. With the rise in price, the demand reduces and vice versa. Business organisations should analyse the various factors that will be suitable to determine the price of the product. The pricing should be determined by taking into consideration target customers and the pricing policy followed by competitors. The price fixed for a product must make the customer feel that it is adequate for the product.

3. Place: In addition to product and pricing, a firm must also decide on the place where it will be making the product available to the customers. A firm must find the appropriate distributors and dealers for the goods. Other important decisions that can be taken are the location of warehousing, inventory storage and transportation of goods.

4. Promotion: Promotion refers to those activities where consumers are made aware of the product availability utilising various strategies such as sales, advertising, banners, online promotion etc. The medium of promotion should be carefully decided by the organisation in order to derive maximum reach.

Q.3 How does branding help in creating product differentiation? Does it help in the marketing of goods and services?

Branding is the process of giving a totally unique name, symbol and logo for the product so that it is easy to identify by the customer. By using branding, firms bring about differentiation (based on name, symbol, logo) in their product from other similar products available in the market.

Branding, in addition to helping in product differentiation, also helps in marketing of goods and services. The following points highlight the importance of branding towards marketing of goods and services.

1. Branding helps a firm in product advertisement, and advertisement is possible only when product branding is done. Without branding, the advertisement will be created for the whole product class.

2. Branding helps create loyalty among consumers. Firms can use this loyalty and charge prices which is different from their competitors. The consumer, due to the loyalty associated with the brand, will be willing to pay a premium for the product.

3. Branding helps in establishing a base which helps in pushing for a new product that is produced by the firm. Any new product launched by an already established brand name will make the users try the product as they have an already developed loyalty for the brand.

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

Price is the amount of money that is paid by the customers to obtain a product. The price will determine the demand for the product in the market. Price also plays an important role in product marketing. If there is any change in the price, it will impact the revenues and the profits of the business. Firms producing similar goods will compete with each other in the market on the basis of the price of the product.

Here are the factors that determine the price of any product or service:

1. Product cost plays an important role in determining the final price of the product. The product cost will involve costs related to production, distribution and the sale of the product. The type of cost associated with a product can be either fixed, variable or semi-variable in nature. Fixed costs are those costs that are a one-time cost and do not change with the output, while variable costs vary with the production, and these include labour cost, raw material etc. Semi-variable costs vary with the level of output, but the proportion is not the same. Therefore, before determining the price of a product, a firm has to make a note of all these costs so that profit can be obtained by selling the product.

2. To determine the pricing of a product, a firm has to also check the demand for the product in the market. To determine the demand, the concept of elasticity of demand is important. It refers to the proportion of change in the demand for an item due to a corresponding change in the price of the product. The demand can be said as elastic if, due to a small change in price, the demand gets changed by a large margin. In such a situation, a firm is unable to charge a high price as it will result in a reduction in the demand for the product. If the demand is inelastic, the change in price will not affect the demand that much.

3. If the level of competition in the market is more in the market, the firm cannot charge more for the product, as charging a high price in a competitive market will make customers move towards the competitors. Similarly, for a firm having less or no competition, it can charge a high price.

4. Government, at times, may intervene in the pricing mechanism for the public interest.

5. Each firm will have a separate objective for pricing. Some of the objectives of pricing are as follows:

i. Firm aim to maximise the profit, the firms may have a short or long-term objective for maximising profit, and in such case, their pricing strategy will be accordingly.

ii. For a firm looking to capture a greater portion of the market, it would charge a price that is lower than its competitors.

iii. In situations of stiff competition, a firm will reduce its price to be more acceptable to consumers.

iv. For firms focusing on quality products, a higher price can be charged.

6. The types of marketing used by the firm will also determine the price. The marketing techniques will involve advertisement and branding campaigns, which will determine the price. If more budget is used in running an advertisement campaign, then prices will be high.

Q.5 What do you mean by channels of distribution? What functions do they play in the distribution of goods and services? Explain.

Channels of distribution are those institutions, agents or individuals who help in the process of providing distribution. Due to the spread of customers across large areas, it is not possible for businesses to reach them alone. In this case, these channels of distribution will help the customers in making the product available.

The functions of the channels of distribution are as follows:

1. Supply of goods is received from different sources. But the goods can be of different shapes and sizes, it needs to be taken care of by the intermediary as per the characteristics.

2. The segregated items will be collected by a middleman and stored to ensure a good supply.

3. Goods are packed into units by another middleman.

4. Intermediaries such as retailers will keep a stock of different items for selling to the consumer.

5. Retailers will help manufacturers in promoting the product by offering sales promotions.

6. The intermediaries form a link between the producer and the consumer.

7. Intermediaries also bear the risk of storing goods in uncertain situations or situations of low demand.

Q.6 Explain the major activities involved in the physical distribution of products.

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:

Q.7 Expenditure on advertising is a social waste’ Do you agree? Discuss

Advertising expenditure is considered as social waste due to multiple factors, such as it adds to the cost of the production of the company and also increases customer requirements for more such products. The following points will help in determining whether advertising is a social waste or not.

1. Advertising is high-cost intensive; the businesses thus pass on this cost to the consumers at the time of determining the price of the product. But the positive point that can be seen is that advertisement can help in reducing the cost of production by increasing customer demand for the product.

2. The major point which impacts advertising is that it weakens social values and promotes the sense of materialism in society. Customers want to acquire any new product to fulfil their desires. But this process will run forever as long as any new product is prepared.

3. Advertisements are said to create confusion among customers as so many different varieties of the same product will be available in the market. Customers get confused as to which brand to buy.

4. Advertisement is done for both good and bad quality products. Again, the good and bad quality concepts will vary from customer to customer.

5. Advertisements are said to erode social values by using content, images, action, gestures or language, which is not acceptable by all sections of society. Again, the same rule will apply that what is perceived as bad by someone may be seen as good by the other.

Q.8 Distinguish between advertising and personal selling.

Q.9 Explain the factors determining the choice of channels of distribution.

The most important decision in marketing is the use of a channel of distribution. It is influenced by the following factors:

1. Distribution will depend on the type of product that is produced. It should be checked if the product is of the following characteristics:

i. Perishable or non-perishable

ii. High or low-value product

iii. Industrial or Consumer product

iv. The degree of complexity of the product.

2. The company characteristics will also play a major role in determining the choice of product, the major points are the degree of control the company wants to have on intermediaries and the financial strength of the company. As a rule of thumb, shorter distribution channels offer more control to financially strong companies.

3. The level of competition and the distribution channel strategies adopted by the competitors is critical in determining the distribution adopted by the company. The company can adopt a similar strategy or use a different one after analysing the competitor.

4. Various environmental factors such as legal policies and financial constraints also impact the channel of distribution decision. If more legal complexities are involved in the association of larger channels of distribution, then companies will be more interested in opting for shorter channels of distribution.

5. The choice of channel distribution can also be affected by various market factors such as demand, size of the market, and demographics of buyers. If the user base spans a large area, then larger distribution channels can be opted for, and vice versa.

Concepts covered in this chapter are listed below:

• Meaning of Market
• Meaning of Customer
• Marketer or Seller
• Definition of Marketing

NCERT Solutions for Class 12 Business Studies Chapter 11 provides a wide range of illustrative examples, which helps the students to comprehend and learn quickly. The above-given are the NCERT Solutions according to the Class 12 CBSE syllabus. For more solutions and study materials of NCERT solutions for Class 12 Business Studies , visit BYJU’S or download BYJU’S – The Learning App for more information.

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Commerce Aspirant » Business Studies Class 12 MCQs » MCQ on Marketing Management Class 12

MCQ on Marketing Management Class 12

MCQ on Marketing Management Class 12 Business Studies includes Multiple choice questions and Fill in the Blanks. Answers to MCQ on Marketing Management Class 12 Business Studies CBSE are available after clicking on the answer.

MCQ on Marketing Management Class 12 – Multiple choice questions

1. Under the concept of “Marketing management” marketing is done keeping _______ as a focus : – a) Consumer b) Supplier c) Investor d) None of the above

Answer: (a) Consumer

2. The products and services should be brought in the market based on which of the following : a) Needs, b) Wants, c) Desires and aspirations d) All of the above

Answer: (d) All of the above

3. According to Philip Kotler, marketing management is an art and science of which of the following : – a) Choosing target markets b) Getting, keeping and growing customers c) Both a and b d) None of the above

Answer: (c) Both a and b

4. Which of the following are key aspects of marketing management ? a) Focus on customer needs and wants b) Proving customer satisfaction c) Creating demand of the product or service d) All of the above

5. The success of an organization can be achieved through customer satisfaction as it helps : – a) Keep the existing customers b) Restrict addition of new customer base c) Lose the existing customer and Develop new customer base d) Keep the existing customers and facilitate addition of new customer base

Answer: (d) Keep the existing customers and facilitate addition of new customer base

6. What is the difference between marketing and selling : – a) Marketing is a part of selling activities b) Selling is a part of marketing activities. c) Both marketing and selling are the same d) None of the above

Answer: (b) Selling is a part of marketing activities.

7. Marketing activities do not include which of the following activities : – a) Designing, b) Manufacturing, c) Procuring raw material d) Collection from debtors

Answer: (d) Collection from debtors

8. Selling activity is done ________ the transfer of the title of the goods : – a) During b) After c) Before d) None of the above

Answer: (a) During

9. Which of the following are strategies involved in marketing : – a) Analysis of consumer needs and demands b) Production c) Pricing d) All of the above

10. Which of the following are strategies involved in Selling : – a) Branding b) Labelling c) Packaging d) None of the above

Answer: (d) None of the above

11. Which of the following are strategies involved in Selling : – a) Advertising b) Sales promotion c) Personal selling, d) All of the above

12. Read the following statements Assertion(A) and Reason(R). Choose one of the correct alternatives given below- Assertion(A)- The marketing concept strives to identify and meet the wants and requirements of customers in an efficient manner. Reason(R)- Products are purchased based on their quality and other attributes, according to the marketing theory

(a) Both A and R are correct (b) A is correct R is incorrect (c) Both A and R are correct and R is the correct explanation of R (d) Both A and R are correct and R is not the correct explanation of R

Answer: (b) A is correct R is incorrect

13. Read the following statements Assertion(A) and Reason(R). Choose one of the correct alternatives given below- Assertion(A)- It is critical to have a firm grasp on the philosophy or concept that will be used Reason(R)- It defines how much focus or weight should be placed on certain aspects in order to achieve the organisational goals

Answer: (c) Both A and R are correct and R is the correct explanation of R

14. Read the following statements Assertion(A) and Reason(R). Choose one of the correct alternatives given below- Assertion(A)- The term “market” refers to a location where buyers and sellers meet to conduct business and exchange goods and services. Reason(R)- A market is a group of present and potential customers for a product or service. It does not have to be a specific location.

Answer: (d) Both A and R are correct and R is not the correct explanation of R

15. Ashan Ltd. is a natural and ethical firm that specialises in providing organic bathing items for men and women. The company uses plant-based elements in its goods and is the country’s leading organic brand. It not only meets the needs of its clients, but it also believes in environmental conservation as a whole. Determine the marketing management philosophy that ‘Beauty Products Ltd.’ employs.

(a) Social marketing concept (b) Selling concept (c) Production concept (d) Product concept

Answer: (a) Social marketing concept

16. A beauty goods manufacturing firm has decided to determine client demands in order to begin successful marketing of the clothing it produces, and is conducting a SWOT analysis to accomplish so (Strength, Weakness, Opportunity and Threat Analysis). The organisation is working hard to achieve its goals. It has decided to create a blueprint for how much production it will accomplish, how much work it will put into promotion, and all other significant measures it will do to reach its goals. However, the business has one flaw that it would like to address. Last year, the physical movement of the company’s prepared items was not done effectively, and the company wants to make sure it is done correctly this year. It has established a separate department to appropriately carry out this task. I’m hoping for a better future for the company. In the preceding example, which marketing functions were highlighted?

(a) Marketing planning and transportation (b) Transportation and identifying customer needs (c) Gathering and analysing market information and planning (d) Both a and c

Answer: (d) Both a and c

17. A tea company is attempting to expand its operations. It recognises that the function of the intermediaries will be crucial in this regard. A conference of top management is called, and the causes that are causing the distributors’ potential to be underutilised are discussed. Intermediaries play a critical function in a product like tea. The company has decided to offer them discounts and to launch a robust promotional effort to entice them to participate. In the example above, which aspect of the marketing mix is highlighted?

(a) Promotion (b) Price (c) Place (d) Product

Answer: (c) Place

18. An electronic manufacturing firm is confident in its ability to sell its goods. The company’s major focus is always on the features of the products it produces. They are constantly attempting to add new features, which are added after extensive research on the issue. For them, quality is everything. They strive to maintain the highest levels of quality and take all required procedures in the production process to achieve this. To put it simply, the company’s primary strength is the product’s quality and features. Which marketing factor is ‘Quality and Features’ in this case?

(a) Product (b) Promotion (c) Place (d) Pricing

Answer: (a) Product

19. A chocolate manufacturing firm spends a significant amount of money on marketing, personal selling, and sales promotion strategies to encourage target clients to buy its chocolates. Determine which part of the marketing mix is being discussed.

(a) Place (b) Price (c) Promotion (d) Product

Answer: (c) Promotion

20. Read the following statements Assertion(A) and Reason(R). Choose one of the correct alternatives given below- Assertion(A)- A good design can boost a product’s performance and offer it a competitive edge in the market Reason(R)- Standardisation is the process of categorising things into several groups based on important qualities such as quality, size, and so on.

21. Read the following statements Assertion(A) and Reason(R). Choose one of the correct alternatives given below- Assertion(A)- Packaging is necessary not just to protect the goods but also to serve as a marketing tool. Reason(R)- Grading is so essential in today’s marketing that it’s regarded as a marketing pillar.

22. Raheja Foods is a well-known brand in the market. People have admired and purchased their products for years. In terms of repeat purchases and new customers, the brand has experienced significant growth. The company’s top management has decided to launch new items now that the company has grown. The names that will be maintained for the new items provide them with new challenges. The company has decided to release a spice called “Hot” since it has a very spicy flavour and makes food spicy and delicious.There are more products on the list as well. One alternative would be to use fat-free cooking oil. Because the oil will be offered in various packages, on various media, and in various regions, the name of the oil should reflect this. Flour is the third new product to be released. The corporation wants a name for the flour that sets it apart from the competition, since if it doesn’t, it will be just another flour on the market. Frozen foods are also being considered by the company.The corporation has chosen that the name should be simple to remember because individuals from all sorts of backgrounds would need it for cooking, and a long or difficult name may be easily forgotten. The pickles are the last new product on the list that they have opted to launch. They have invested a significant amount of money in the production of this product and wish to market it in the same way that they have been selling Raheja Foods for many years. Clearly, this organisation is putting in a lot of effort to maintain its name.

I. Which feature of marketing has been highlighted in the above case-

(a) Brand name (b) Placing of products (c) Promotion (d) Both a and c

Answer: (a) Brand name

II. Which feature is being highlighted in the above case-

(a) Good pricing (b) Good brand name (c) Customer choices and preferences (d) None of these

Answer: (b) Good brand name

III. Which features of the identified feature of marketing are highlighted in the case-

(a) Suggestive benefits (b) Short and easy to spell and remember (c) Distinctive (d) All of the above

Answer: (d) All of the above

23. Read the following statements Assertion(A) and Reason(R). Choose one of the correct alternatives given below- Assertion(A)- Warehousing adds value to your time Reason(R)- Warehousing connects the dots between products and its consumption.

24. Read the following statements Assertion(A) and Reason(R). Choose one of the correct alternatives given below- Assertion(A)- The transportation industry’s technological advancements have aided in bringing the market closer together. Reason(R)- Manufacturers can now deliver products to retailers and wholesalers more promptly and at a lower cost thanks to technological advancements.

25. Read the following statements Assertion(A) and Reason(R). Choose one of the correct alternatives given below- Assertion(A)- Customers pay greater prices as a result of advertising costs being passed on to them. Reason(R)- Advertising aids in the increase of sales and thus the reduction of costs.

26. Read the following statements Assertion(A) and Reason(R). Choose one of the correct alternatives given below- Assertion(A)- Personal selling only reaches a small percentage of the population. Reason(R)- Personal selling is extremely adaptable because the message may be changed.

27. Read the following statements Assertion(A) and Reason(R). Choose one of the correct alternatives given below- Assertion(A)- Advertising is less expensive than other advertising methods. Reason(R)- The whole expense of advertising is shared among a huge number of people.

28. Read the following statements Assertion(A) and Reason(R). Choose one of the correct alternatives given below- Assertion(A)- Customer support services are extremely successful at generating repeat sales and building brand loyalty for a product. Reason(R)- All of the services are aimed at raising the dealers’ profit margins, which is the key to current marketing success.

Business Studies Class 12 MCQs – Term 1

• Nature and Significance of Management MCQs
• Principles of Management MCQs
• MCQ on Business Environment
• MCQ on Planning
• MCQ on Organising
• Marketing Management MCQs

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