Class 12 NCERT Solutions Business Studies - Marketing - Free PDF Download
NCERT Solutions for Class 12 Business Studies Chapter 11 by Vedantu gives students a great opportunity to get access to the best study material available. NCERT Solutions is the best choice for promising marks in various examinations related to Class 12 Chapter 11 Marketing. Currently, when there is a wide range of online materials available, our NCERT Solutions for Class 12 Business Studies can be recognized as the best platform to get reliable notes and can vouch for quality content. Even students who usually find it difficult to grasp concepts can sit back and use this to witness a drastic change.
NCERT Solutions for Class 12 Business Studies Chapter 11 Marketing is beneficial for students while preparing for the CBSE Class 12 Business Studies examinations. NCERT Solutions for Business Studies Chapter 11 Marketing in PDF format includes solutions to all the questions asked in the chapter, that will surely help students to understand the concepts of each and every topic in a better way. The solution presents a clear picture of what the market is and its functioning. To get a precise understanding of the chapter, download NCERT Solutions for Class 12 Chapter 11 Marketing free PDF through the PDF link given below.
Topics Covered In Business Studies Chapter 11 Marketing
Introduction to Marketing
Features of Marketing
Marketing Management Philosophies (Production Concept, Product Concept, The Marketing Concept, The Selling Concept, The Societal Marketing Concept)
Functions of Marketing
Role of Marketing
Marketing Mix Elements (Product, Price, Place, And Promotion)
Access NCERT Solutions for Class 12 Business Studies Chapter 11 – Marketing
Very Short Questions
1. Explain the advantages of branding to marketers of goods and services.
Ans: Branding entails giving a product a distinct name, sign, symbol, or term for identification. The following are the benefits of branding for marketers.
i) Branding allows a company to differentiate its product from the products of other companies.
ii) It makes product advertising easier. Only after a product has been given a brand can it be advertised and thus attract customers. It is illegal to promote a product with a generic name.
iii) Through effective branding, manufacturers can foster product loyalty and habituation. As a result, the company can profit from this and charge a different price for its product.
iv) It aids in the establishment of a foundation if a new product is to be launched. This is because it is expected that if a new product is launched under a good and established brand, it will receive a good boost and benefit from the brand's reputation.
2. List the characteristics of a good brand name.
Ans: The following characteristics define a good brand name.
i) The name should be brief and simple to spell, pronounce, and remember. Ponds, Rin, and so on.
ii) A brand should suggest the product's benefits or qualities while also fitting its functions. As an example, consider the words Boost, Fair & Lovely.
iii) The name should be distinct while also being adaptable to packaging and labeling requirements. It should also be adaptable to different advertising mediums and languages.
iv) A brand name should be adaptable and able to accommodate new products introduced under the brand.
v) It must be distinguishable and legally protectable.
3. What is the societal concept of marketing?
Ans: According to the societal concept of marketing, organizations must identify the market's and target consumers' needs and efficiently deliver the desired results. The organization should identify not only the market's immediate needs, but also the consumers' long-term well-being. Thus, in addition to customer satisfaction, organizations should strive for ecological, ethical, and social goals such as pollution, resource scarcity, and so on.
4. List the characteristics of convenience products.
Ans: Convenience products are those that are purchased frequently, quickly, and with minimal time and effort. A convenience product has the following characteristics.
i) Such products are easily accessible in convenient locations, requiring little time and effort.
ii) Convenience products are frequently consumed and have a steady demand. In general, essential commodities are classified as convenience products.
iii) They are available in small quantities at low and consistent prices.
iv) There is a lot of competition in the market for such products. As a result, these products will require extensive advertising.
5. Enlist the advantages of packaging of a customer product.
Ans: The process of developing and designing a product's container is referred to as packaging. The following are the benefits of good packaging.
i) It allows a product to be distinguished and identified from other products.
ii) It serves as a marketing tool. The use of colors, pictures, and symbols in packaging aids in attracting customers.
iii) Appropriate packaging adds to the ease of handling the product.
iv) It aids in the protection of the product's quality from any type of damage. It aids in the prevention of spoilage, breakage, and other damage, particularly during storage and transportation.
6. What are the limitations of advertising as a promotional tool? Enlist.
Ans: The limitations of advertising as a promotional tool are as follows.
i) It lacks personal communication and thus is less powerful.
ii) Evaluating the effectiveness of the advertisement is extremely difficult.
iii) Advertisements are pre-packaged and cannot be customized to meet the needs of different consumer groups.
iv) Advertising effectiveness is low because there may be numerous advertisements.
7. List five shopping products purchased by you or your family during the last few months.
Ans: The following shopping items were purchased.
v) Household goods
1. What is marketing? What functions does it play with the process of exchange of goods and services? Explain.
Ans: Marketing is the process by which buyers and sellers interact with one another in order to purchase and sell goods and services. Previously, different approaches to marketing's definition were taken. It is also sometimes called as a process which occurs post-production involving the purchase of the final products, and other times as a pre-production process involving the merchandising (designing) of the product. In reality, marketing is said to be a much broader concept. It includes all of the activities involved in the exchange of goods and services between producers and consumers. These are the functions that fall under the purview of marketing. It entails product planning, design, packaging and labeling, standardization, branding, warehousing, transportation, advertising, pricing, and distribution. It also includes activities that are carried out even after the product has been sold, such as maintaining customer relations and gathering feedback. As a result, marketing plays an important role in the exchange of goods as well as services.
2. Distinguish between the product concept and production concept of marketing.
Ans: The difference between two concepts of marketing are mentioned below:
Basis of Difference
It was believed that consumers preferred superior quality products, and that by increasing the quality of the product, profits could be maximized.
It was believed that consumers preferred readily available and affordable products, and that by increasing production volume, profits could be maximized.
Focus of the business
The emphasis was on improving the product's quality, adding new features, and so on.
The emphasis was on increasing the quantity of production and lowering the average cost of production.
The emphasis is on improving the product's features and quality.
The emphasis is on increasing the business's production efficiency.
3. Product is a bundle of utilities? Do you agree? Comment.
Ans: When a customer decides to purchase a product, his or her primary focus is on the utility that he or she will receive from using it. A customer seeks various levels of satisfaction from a product. A product's benefits can be classified into three types: functional benefits, psychological benefits, and social benefits. For example, when a consumer buys a car, it provides him with functional utility as a mode of transportation. In addition, having purchased a car provides him with a psychological benefit in the form of pride and self-esteem. It also comes with a social benefit in the form of peer acceptance. As a result, a product is said to be a bundle of utilities, and a buyer values all such utilities when purchasing a product.
4. What are industrial products? How are they different from consumer products? Explain.
Ans: Industrial products are those that are used as inputs in the manufacture of other goods. These items are not intended for final consumption; rather, they are used as raw materials and inputs by manufacturers in the production of consumer goods. Machines, tools, and so on are examples of industrial products. In contrast, consumer products are those that are used by the ultimate customers for their personal consumption. Consumer goods include items such as toothpaste, edible oil, furniture, and so on. The distinctions between industrial and consumer products are highlighted in the following points.
Basis of Difference
Number of customers
There are a limited number of customers. For example, oil seeds (an industrial product) are primarily used by mustard oil producers.
The number of customers has increased. Many people, for example, consume mustard oil (a consumer product).
Channel of distribution
Such products necessitate shorter distribution channels, such as direct selling or a one-level channel.
Such products must travel through significantly longer channels before reaching the final consumer.
However, the distribution channel for perishable consumer goods is limited.
Industrial products are concentrated only in areas where the industries that produce them are located.
Consumer goods are easily and conveniently available.
The demand for industrial products is obtained from consumer goods demand.
Consumer product demand is not derived demand; rather, it serves as the foundation for demand for industrial products.
Role of technical features in decision making
When purchasing these products, technical features play an important role.
Manufacturing of such products does not involve any technical complexities. As a result, technical features play little of a role in purchasing decisions.
5. Distinguish between convenience products and shopping products.
Ans: The difference between convenience products and shopping products is given below:
Basis of difference
Convenience products are in high demand all the time.
Shopping products are in relatively low demand.
Nature of products
Convenience goods fall under the category of essential commodities.
In general, such goods are long-lasting in nature.
Unit of purchase and price
These items are sold in small quantities and at a low unit cost. As a result, these items have a low profit margin.
These items are typically larger in size and have high unit prices. As a result, the pro gin is also high.
Nature of purchase
Such items are purchased on the spur of the moment, without much thought or planning.
Such products are not purchased on the spur of the moment; instead, the consumer takes the time to compare the price, quality, and other features of the product.
Ice cream, medicines, newspapers, and stationery items.
Jewelry, furniture, clothing, and so on.
6. 'Products is a mixture of tangible and intangible attributes'. Discuss.
Ans: In general, a product is a tangible asset with physical characteristics. For example, we consider a motorcycle or a laptop to be products. However, when it comes to marketing a product, it is important to consider not only the physical or tangible attributes of the product, but also certain intangible attributes. That is, a consumer's decision to buy a product is influenced not only by its tangible characteristics, but also by certain intangible characteristics. In other words, a consumer buys a product for reasons other than its functional utility, such as brand recognition, reputation, social satisfaction, and so on. When a person buys a laptop, he looks for intangible attributes such as guarantee, brand, and so on, in addition to the physical attributes and functional utility of the model, size, features, and so on. As a result, a product is a combination of tangible as well as intangible attributes.
7. Describe the functions of labelling in the marketing of products.
Ans: Labeling plays an important role in product packaging during the marketing process. Labeling essentially provides information about the product in the form of a tag (in the case of unbranded local products such as rice, wheat, and so on) or graphics (such as a lady applying cream on face for a face cream). Labeling serves several functions, the most important of which are as follows.
i) Contents and Description of Use: The primary function of labeling is to provide information about the product's use, application, warnings, content, and so on. For example, the contents of a shampoo bottle are written on the bottle, along with warnings such as "keep away from children under the age of 10." Similarly, a picture of noodles describing its appearance can be found on food products such as Maggie Cuppa Mania. Along with this, the ingredients and method of preparation are specified.
ii) Identification and Distinction: A label makes it easier to identify a product. It assists consumers in differentiating their preferred products from others. In a potato chip product, for example, a man eating potato chips is imprinted for identification. A label also contains useful information such as the manufacturer's name or address, net weight, maximum retail price, batch number, and so on.
iii) Standardization and Evaluation: A label also aids in the determination of a product's grade. This allows marketers to categorize the product into different categories based on specific qualities or features. For example, a face-cream brand may be divided into three categories: oily skin, dry skin, and normal skin.
iv) Encourages Production: An appealing label also aids marketers in promoting the product. It aids in attracting new customers to the product. For example, the label for Maggi Noodles reads, "Taste bhi, Health bhi." In this case, the label is crucial in highlighting the product and promoting its sale.
v) Information Necessary for Law: The label also provides and mentions the information that is required by law to be included. On a packet of tobacco, for example, it says, 'chewing tobacco is harmful to your health.'
8. Discuss the role of intermediaries in the distribution of consumer non-durable products.
Ans: Intermediaries are crucial in the distribution of consumer nondurables. They facilitate the movement of goods from the point of manufacture to the point of consumption. In the case of nondurables, the intermediaries perform the following functions.
i) Arrangement: An intermediary receives goods from a variety of sources. He then categorizes these items into homogeneous groups based on characteristics such as size, quality, and so on. For example, an electronic goods seller may receive a supply of various electronic goods (TV, washing machine, etc.) and then sort them according to their functions.
ii) Collection: An intermediary keeps a large stock of goods on hand to ensure an easy flow of supply. For example, an electronic goods seller may keep a large stock of each type of electronic item.
iii) Allocation and Packing: This function entails dividing larger stock into smaller units. For example, each electronic item and its spare parts are packed separately.
iv) Creating Variety: An intermediary obtains various goods from various sources and assembles them in a single location. As a result, it keeps a wide range of goods. He obtains the products and then sells them in various combinations as desired by the customers. Most people, for example, prefer a television and a video player together. As a result, the retailer can sell a mix of the two.
v) Promotion of Product: They help the manufacturers with their promotional efforts. Manufacturers, for example, use advertising to promote their product. Intermediaries can help this process by displaying banners and other advertisements. For example, an electronic goods retailer may display banners highlighting the features of various products.
vi) Mediation: Middlemen are responsible for negotiating a deal that will satisfy both the producers and the consumers. They negotiate the price, quality, quantity, and so on for an efficient transfer of ownership that meets the needs of both parties.
vii) Bearing Risk: Intermediaries buy goods from manufacturers and keep them in their possession until the final sale. During the process, they are vulnerable to fluctuations in demand, price, spoilage, and so on. Assume a retailer purchases a large number of air conditioners. However, after a few months, winter arrives, and demand for air conditioners decreases. As a result, the stock remains unsold, and the retailer suffers a loss.
9. Explain the factors determining choice of channels of distribution.
Ans: One of the most important marketing decisions is deciding which channel of distribution to use. The following factors influence channel selection.
(i) Product Category: The channel of distribution chosen is determined by the type of product produced. It is critical to determine whether the product is perishable or non-perishable, whether it is an industrial or consumer product, whether its unit value is high or low, and the product's degree of complexity. For example, if a product is perishable, short channels should be used rather than long ones. Likewise, if a product has a low unit value, a longer channel is preferred. Similarly, consumer goods are distributed via long channels, whereas industrial goods are distributed via short channels.
ii) The Company's Characteristics: The two most important characteristics of a company that influence channel selection are its financial strength and the level of control it desires over intermediaries. Shorter channels necessitate more funds than longer channels, but they also provide greater control over the channel's members (intermediaries). As a result, companies that are financially strong or want to have more control over the distribution channel choose shorter distribution channels.
iii) Factors of Competition: The degree of competition and the channels chosen by other competitors influence the distribution channel selection. Depending on its policies, a company may choose to use the same channel as its competitors or a different channel. For example, if a company's competitors choose to sell through a retail store, the company may do the same, or it may choose a different channel, such as direct selling.
iv) Environmental Aspects: Environmental factors such as economic constraints and legal policies all play a role in channel of distribution selection. For example, the requirement of complex legal formalities at each stage of distribution encourages companies to choose shorter distribution channels.
v) Market Elements: Other factors influencing channel selection include market size, geographical concentration of buyers, quantity demanded, and so on. Shorter channels, for example, are used when potential buyers are concentrated in a small geographical area. In contrast, if the buyers are spread out over a larger area, longer distribution channels may be used.
10. Explain briefly the components of physical distribution.
Ans: Physical distribution is the movement of goods from the point of manufacture to the point of consumption. The components of physical distribution are as follows.
i) Processing of Order: Order processing consists of several steps, including order placement, transmission of the order by intermediaries to the manufacturer, inventory maintenance as needed, delivery of goods, and so on. Because all of these processes take time, a physical distribution system should be designed to ensure quick and accurate order processing. In summary, order processing speed and accuracy are directly related to customer satisfaction. Fast and accurate order processing leads to higher levels of customer satisfaction.
ii) Transportation of Products: The physical movement of goods from the point where they are manufactured to the point where they are consumed is referred to as product transportation. Transporting goods from the point of production to the point of consumption is required to make them physically available to consumers.
iii) Warehousing: The process of storing manufactured goods prior to the final act of sale is known as warehousing. If we suppose that a company has a lot of warehouses then it indicates that the company will be able to provide goods at various locations more quickly and also on time. However, maintaining warehouses comes with its own set of expenses. As a result, a company must weigh the relative benefits and costs of warehousing and strike a balance between the two as needed.
iv) Maintenance of Inventory: Inventory is kept on hand by the companies to ensure that products are delivered on time. Inventory maintenance, like warehousing, has a positive relationship with customer service. However, inventory maintenance comes at a cost because a large amount of capital remains locked up in the stock until it is sold. As a result, the companies must strike a balance between customer service and cost.
11. Define advertising. What are its main features? Explain.
Ans: Advertising is a marketing technique that is used to promote a product. Companies use advertising to attract customers to their products and persuade them to buy them. Newspapers, magazines, television, and other forms of advertising are common. The following are some of the most important aspects of advertising.
(i) Cost Involved: Advertising is not free. It is a form of paid promotion. The costs of advertising will be borne by the sponsors.
ii) Impersonal Mode: Advertising is a form of impersonal communication. In other words, there is no direct interaction between the customer and the advertiser. As a result, it lacks personality and creates a monologue.
iii) Specific Sponsor: There are always a few individuals or sponsors who take on the responsibility of designing it and bearing the associated costs.
12. Discuss the role of 'sales promotion' as an element of promotion mix.
Ans: Sales promotion refers to the incentives provided to buyers in order to persuade them to purchase the product. It included activities such as providing discounts, gifts, and free samples, among others. These activities supplement the company's other promotional efforts, such as advertising and direct selling. They are increasingly attracting customers and persuading them to buy the product right away. Such activities are especially beneficial during the launch of a new product. They provide a temporary boost to sales. Discounts are given by selling the product at a lower price than the listed price, for example. Quantity gifts are given away as freebies (such as 20 percent extra or buy 2, get 1 free). When a new brand is launched, free samples are distributed in the form of small packets. Companies use such incentives to attract more customers and increase sales.
1. Define marketing. How is it different from selling? Discuss.
Ans: Marketing is the process by which buyers and sellers interact with one another in order to purchase and sell goods and services. It includes a variety of activities such as product planning, design, packaging and labeling, pricing, and distribution, as well as after-sales services such as customer relations and feedback collection. Selling, on the other hand, refers to the activities that are undertaken to promote the sale of goods and services. These promotional activities can take the form of advertising, publicity, and so on. The product is converted into cash during the selling process. In this sense, selling can be considered a subset of marketing.
Basis of Difference
Scope of the term
Marketing is a broad term that encompasses a variety of activities such as planning, designing, after-sales services, and so on.
Selling is a more specific term that refers only to promotional activities and the transfer of product ownership from the seller to the purchaser. Selling is only one aspect of marketing.
Means of profit maximisation
In order to maximize profits, marketing places a premium on increasing customer satisfaction.
In order to increase profits, selling places a premium on increasing sales.
Customer satisfaction is the focus of all marketing activities.
The sale of goods and the transfer of product ownership from the seller to the purchaser are the focal points of selling activities.
Scope of activities
Marketing activities begin before the product is manufactured and continue after it is sold.
Sales activities begin only after the product has been manufactured.
Strategies and efforts
It entails production, planning, design, feedback services, and so on.
It only includes product promotion and sales strategies.
2. What is the marketing concept? How does it help in the effective marketing of goods and services?
Ans: The marketing management concept places a premium on customer satisfaction. It believes that customer satisfaction is critical to the success of any business. In the long run, any organization can only survive and maximize profits if it identifies and effectively addresses customer needs. This concept refers to the fact that people purchase a product in order to meet a specific need (social need, functional need and psychological need, etc). Any organization must strive to identify and meet such needs in an efficient manner. That is, all decisions must be made based on the needs and requirements of the customers. An organization works and sells based on what the customer wants rather than what it has. The following are the pillars of the marketing concept.
i. All marketing efforts must be directed toward a specific market segment or group of customers. Organizations must clearly identify the target customer's needs and requirements.
ii. It should create products and services that meet the needs of its customers
iii. It should not only work independently toward customer satisfaction, but it should also strive to satisfy customers better than its competitors.
iv. Profit is at the heart of all marketing efforts. The marketing concept aids in the efficient marketing of goods and services. Marketing goods and services would be more effective and efficient if all marketing activities were directed toward customer satisfaction. Selling would not be a problem if production, pricing, design, and other decisions were based on the needs of the customers. For example, if customers want dual-sim mobile phones with high-resolution cameras, GPS, and other features, the company manufactures them. Similarly, the company's other decisions, such as pricing, branding, and so on, are based on the needs of the customers.
3. What is marketing mix? What are its main elements? Explain.
Ans: The marketing mix is the collection of marketing tools used to achieve the various marketing objectives. The market offering is critical in the marketing process. To put it another way, for effective marketing, a company must decide on various aspects of a product, such as its size, quality, and location of sale, among others. A variety of factors influence such decisions. Some of them are under the firm's control. The firm, for example, has control over decisions regarding packaging, branding, pricing, advertising, and so on. However, there are some uncontrollable factors that influence a firm's decision making. For example, government policies and bank credit policies are beyond the firm's control. To achieve marketing objectives, a company continuously modifies the various controllable factors. These elements are known as marketing tools and serve as the pillars of marketing. A company selects the best combination of alternative marketing tools from which to develop a market offeringThe marketing mix is a collection of marketing tools that a company employs to achieve its marketing objectives.
The following are the components of the marketing mix.
1. Product: A product is any good or service that adds value and meets a customer's needs. A car, toothpaste, soap, teacher services, and so on are all examples of products. In marketing, a product refers not only to the physical product, but also to the satisfaction of the customer's various needs and utilities. Consumption of a product, for example, benefits a consumer by satisfying functional needs, social needs, and psychological needs. Such advantages are also included in the product. A product also includes after-sales services such as collecting feedback and resolving customer complaints, among other things. A product's design, quality, features, labeling, branding, and packaging are all important considerations.
2. Price: The price is the amount of money paid by customers to obtain a product. The price of a product influences its demand. When the price of a product rises, so does its demand, and vice versa. Marketers must thoroughly examine the various factors that influence price in order to determine an appropriate price for the product. When determining a price, for example, the target customers, pricing policy followed by competitors, firm objectives, and so on must all be considered. The price should be set in such a way that customers consider it to be in line with the value of the product. Appropriate discounts and incentive schemes must also be determined.
3. Location: In addition to product and pricing decisions, a company must consider the product's availability to its target customers. A company must choose the right dealers or intermediaries for the distribution of its goods. Other critical decisions include inventory management, warehousing, storage, and transportation of goods.
4. Promotion: Promotional activities are those that inform customers about the availability of a product, its features, qualities, and so on. In order to persuade customers to purchase the product Organizations engage in a wide range of promotional activities, including advertising, sales techniques, personal selling, and so on. An organization must carefully select the medium of promotion and then take the necessary actions. For example, the organization must decide which sales techniques, such as discounts, free gifts, sales, and so on, to employ.
5. What are the factors affecting the determination of the price of a product or service?
Ans: The price of a product is the amount of money paid by customers to obtain it, and this price influences its demand. As a result, pricing is critical in the marketing of goods. A company's revenue and profits are affected by the price it charges for its product. Furthermore, pricing serves as a competitive tool. Firms that produce similar substitutable products compete on the basis of price. As a result, firms must place a premium on proper product pricing. Marketers must thoroughly examine the various factors that influence price in order to determine an appropriate price for the product. The following are the elements that influence the price of a product or service.
1. Cost of Product: The cost of the product is a major factor in determining the price. It includes the costs associated with the product's production, distribution, and sale. Product costs can be divided into three broad categories: fixed costs, variable costs, and semi-variable costs. Fixed costs are those that do not change in proportion to the amount of output produced. In order to produce a good, a company, for example, incurs costs for the purchase of machinery, land, and so on. These are one-time expenses. Variable costs, on the other hand, vary directly in proportion to the volume of production. That is, as output increases, so does the variable cost. Variable costs include things like labor and raw materials. Semi-variable costs vary with output level but not directly proportionally. Payments made to intermediaries for the sale of goods, for example, is a semi-variable cost. In general, firms set the price of a product so that it covers all of its costs. Furthermore, they hope to make a profit above and beyond the costs they incur. As a result, firms decide on a price that takes into account both the cost and the profit factor.
2. Demand for the Product: A company must consider the demand for its product when determining the price. The elasticity of demand is important in this context. The proportionate change in demand caused by a given proportionate change in price is referred to as demand elasticity. The demand is said to be elastic if it changes by a larger proportion due to a small proportionate change in price. That is, demand is said to be elastic if a small price increase (or decrease) results in a relatively large price decrease (or increase). In this case, the firm cannot charge a higher price because it would cause a significant drop in demand. Demand, on the other hand, is said to be inelastic if a change in price has little effect on it. In this case, the firm has the option of charging a higher price because, even at a higher price, demand would not fall significantly. As a result, the price of goods with elastic demand is generally lower than the price of goods with inelastic demand.
3. Degree of Competition in the Market: In broad, the lower the price that a company can charge for its product, the higher the market competition. This is because, in a high-competition environment, a firm that attempts to charge a high price will lose customers to competitors. On the other hand, if a company's product has little competition, it can charge a higher price.
4. Government Regulations: To protect the general public's interests, the government may intervene in price determination at times. In the case of essential commodities, for example, the government can set a maximum price that can be charged.
5. Pricing Objectives: Each firm has different pricing objectives that it considers when determining a price. Some of the pricing objectives are as follows.
i. Profit Maximisation: Profit maximization is the goal of every business. If, on the other hand, the firm's goal is to maximize profits in the short run, it may make a decision to charge a higher price in order to increase revenue. If, on the other hand, the firm's goal is to maximize profit in the long run, it will charge a lower price in order to gain a larger market share and benefit from higher sales.
ii. Acquiring Market Share: If a company wants to expand its market share, it will charge a lower price to attract a larger number of customers to its product.
iii. Surviving Competition: In the face of fierce competition, a company will keep its product's price low. This is related to the reasons that if it charges a higher price, it will lose customers to competitors.
iv. Quality Focus: If a company focuses on improving product quality, it will charge a higher price to cover the additional costs.
6. Method of Marketing: The firm's marketing methods, such as distribution, advertisement, customer service, branding, and so on, also have an impact on price determination. For example, if the company uses a lot of advertising to promote the product, it will charge a higher price.
6. What do you mean by channels of distribution? What functions do they play in the distribution of goods and services? Explain.
Ans: Individuals, institutions, and agents who facilitate the distribution process are referred to as distribution channels. As a product's potential consumers are dispersed across a larger geographical area, it becomes more difficult for the producers or manufacturers to directly contact the customers in order to sell their products. Distribution channels are crucial in this case. They facilitate the movement of goods from the point of manufacture to the point of consumption. For example, it would be difficult for a sugar manufacturer in Punjab to contact customers in other parts of the country. To make the process easier, it would sell its product to wholesalers, who would then sell it to retailers. Finally, the product is sold to the customers by the retailers. Furthermore, channels of distribution reduce consumers' efforts by providing a variety of goods and services in a convenient single location. A customer, for example, can purchase a wide range of goods at a retail store. Thus, the term "channels of distribution" refers to the group of people, agents, and organizations that facilitating the exchange or transfer of goods and services from the producer to the consumer Distribution channels serve the following purposes.
1. Arrangement: An intermediary receives goods from a variety of sources. However, the goods received vary in size, quality, and features. Based on their characteristics, the intermediary arranges or sorts these goods into homogeneous groups.
2. Collection: A middleman gathers and retains a large stock of goods to ensure a continuous and smooth supply flow.
3. Allocation and Packing: A middleman divides the goods into small, marketable units. It repacks the goods into handy packets.
4. Creating Variety: An intermediary obtains various goods from various sources and assembles them in a single location. As a result, it keeps a wide range of goods. A grocer, for example, keeps a wide variety of products for sale.
5. Product Promotion: They help manufacturers with their product promotion efforts. Manufacturers, for example, use advertising to promote their product. Intermediaries can help this process by displaying banners and other advertisements.
6. Mediation: On the one hand, middlemen interact with producers, and on the other, with customers. As a result, they serve as a conduit between producers and customers. They bargain over price, quality, and other issues, and work to meet the needs of both parties.
7. Risk-bearing: Intermediaries purchase goods from producers and keep them in their possession until the final sale. During the process, they are vulnerable to fluctuations in demand, price, spoilage, and so on. Assume a retailer purchases a large quantity of sugar. However, as time passes, the price of sugar rises, reducing demand. As a result, the retailer may suffer a loss as the stock remains unsold.
7. Explain the major activities involved in the physical distribution of products.
Ans: Once the product has been manufactured, packaged, promoted, branded, and priced, it must be made available to consumers. That is, they must be transported from where they are produced to where they will be consumed. Physical distribution of products refers to the physical movement of products from the point of manufacture to the point of consumption. It entails the four major activities listed below.
1. Processing of Order: The most important aspect of the buyer-seller relationship is the processing of orders and the delivery of goods. Order processing consists of several steps, including order placement, transmission of the order by intermediaries to the manufacturer, inventory maintenance as needed, delivery of goods, and so on. All of these processes take time. The physical distribution system should be designed in such a way that orders are processed quickly and correctly. In general, order processing speed and accuracy are directly related to customer satisfaction. Consumers are more satisfied when orders are processed quickly and accurately. As a result, a proper order processing system is critical.
2. Transportation of Products: The physical movement of goods from the point where they are manufactured to the point where they are consumed is referred to as product transportation. A product's potential customers are dispersed across a large geographical area. They must be transported from the point of production to the point of consumption in order for the goods to be physically available to them. Sales cannot take place unless the products are physically transported and made available at the point of consumption.
3. Warehousing: There is a time lag between the act of production and the act of sale or consumption in most cases. This means that the goods must be properly stored and sorted before being sold. Warehousing refers to the process of storing and sorting products. Proper warehousing ensures efficiency in product delivery and sale, which leads to higher customer satisfaction. For example, warehousing allows a company to keep products in stock and ensure timely delivery of goods as needed. However, maintaining warehouses comes with its own set of expenses. As a result, a company must weigh the relative benefits and costs of warehousing and strike a balance between the two as needed.
4. Maintenance of Inventory: Maintaining a stock of products is what inventory entails. Inventory is kept on hand by the companies to ensure that products are delivered on time. Inventory and customer service are inextricably linked. Maintaining a higher inventory allows a company to ensure timely delivery of goods to customers and, as a result, improve customer service. However, inventory maintenance comes at a cost because a large amount of capital remains locked up in the stock until it is sold. As a result, the companies must strike a balance between customer service and cost. The decision to keep inventory is influenced by a variety of factors, including how well the distribution system responds to orders and deliveries, the cost of keeping the inventory, the firm's objectives, and so on. The company must choose an appropriate inventory while considering the various costs and benefits involved.
8. Expenditure on advertising is a social waste' Do you agree? Discuss.
Ans: Advertising expenditure is frequently regarded as a social waste. Advertising is criticized for increasing the company's costs unnecessarily, undermining social values, and exacerbating, building up consumer needs and desires for a variety of products. However, proponents of advertising argue that advertising through increased sales reduces costs and aids the growth process. The following considerations aid in determining whether advertising is a waste of time.
1. Higher Cost: Advertisement costs add to the overall cost of the business. Companies, in turn, pass on the increased costs to customers in the form of higher prices. Advertisement supporters, on the other hand, argue that it lowers the per unit cost of production. This is related to the reasons that advertising can attract a larger number of customers to the product, implying an increase in demand for the product. Manufacturers increase production in response to increased demand. As production increases, the per unit cost of production decreases. As a result, even though advertising costs add to the cost, this increase in cost can be offset by a decrease in per unit cost due to increased demand and production.
2. Weakens Social Values: One of the most common criticisms leveled at advertising is that it undermines social values and instead promotes materialism in society. Advertisement draws customers' attention to new products and encourages them to buy them. Customers are dissatisfied with their current situation as they gain more knowledge about the availability of new products. In the process, they frequently end up purchasing items that they do not even need. However, such a cycle of dissatisfaction and product acquisition never ends, and materialism grows. Advertisements, on the other hand, are said to merely inform buyers about the availability of various products, and that the final decision to purchase the product is left to the consumer. Customers' knowledge is increased and they are kept informed as a result of advertising.
3. Creates Confusion: Customers are said to be confused by a large number of advertisements for similar products. For example, advertisements for various hair oils claim that using their product will result in healthy and long hair. With so many advertisements, the consumer becomes perplexed as to which product of which brand should be purchased. Ad supporters, on the other hand, disagree with this criticism and argue that advertisements provide consumers with a choice. After considering various factors such as price, style, quality, and so on, consumers can make an informed decision for themselves.
4. Promotes Inferior Goods: It is argued that both superior and inferior quality products are advertised. Advertisement can also be used to increase demand for inferior goods. Such a claim, however, is only partially correct. This is due to the fact that quality is a relative concept. What one consumer considers to be inferior may be considered superior by another. Advertisements promote a wide range of products, and consumers buy them if they meet their needs.
5. Objectionable Advertisements: Advertisements, it is said, frequently undermine social values and are in poor taste. The language, images, and content of advertisements may not always appeal to the general public. For example, women in male-oriented products (such as shaving creams, deodorants, and so on) are frequently chastised. In response, some argue that good or bad taste is a subjective phenomenon that varies from person to person. What is acceptable to one person may be offensive to another. As a result, while advertising expenditure is criticized, the criticisms are not entirely accurate. On the one hand, they can be abused and have drawbacks, but on the other hand, one cannot deny the benefits of advertising.
9. Distinguish between advertising and personal selling.
Ans: Advertising is a faceless, paid form of communication used by marketers to promote their products and services. Personal selling, on the other hand, entails the seller communicating directly with potential customers. That is, it entails direct face-to-face communication between sellers and customers for the purpose of product sale. The distinctions between advertising and personal selling are highlighted in the following points.
Basis of Difference
Personal v/s impersonal
It is an impersonal form of communication in which the seller communicates with customers via various media such as television, newspapers, and so on.
It is a form of personal communication in which the seller interacts directly with potential customers.
Advertising has a greater reach because it reaches a large number of people at the same time.
It has a more limited reach because only a few people can be contacted directly.
It is rigid because advertisements are standardized and cannot be adjusted to meet the needs of different customers.
It is adaptable because the seller can change the message to meet the needs of different customers.
It is better suited for large-scale marketing to a large number of consumers. Advertising, for example, is appropriate if marketing is to be done for ultimate customers.
It is better suited for marketing to a small group of consumers.
Personal selling, for example, is more effective when marketing to intermediaries and retailers.
The cost per person is low because advertising reaches a large number of people at the same time.
Personal selling is a relatively costly endeavor.
Advertising reaches a large number of people at the same time. As a result, it can cover the entire market in a relatively short period of time.
Because personal selling only allows you to contact a small number of people, it takes a significant amount of time and effort to cover the entire market.
Customer feedback and reactions cannot be judged through advertising.
Because the seller contacts the customers directly, he receives feedback and judges their reactions.
Medium of communication
It entails communication via mass media such as television, newspapers, radio, and so on.
It is personal communication through salespeople.
The primary goal of advertising is to pique the interest of customers in the product.
The primary goal of personal selling is to raise product awareness and induce purchase decisions.
Application Based Questions
1. 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 to take care of these concerns? Discuss.
Ans: According to the societal concept of marketing, organizations must identify the market's and target consumers' needs and efficiently deliver the desired results. The organization should identify not only the market's immediate needs, but also the consumers' long-term well-being. Thus, in addition to customer satisfaction, organizations should strive for ecological, ethical, and social goals such as pollution, resource scarcity, and so on.
Solar geyser use
use of CNG-powered vehicles
2. Suppose you are the marketing vice president of an insurance company, planning to design a new mediclaim policy for senior citizens. What information would you like to collect to perform this task and how will you collect such information? Discuss.
Senior citizen's age
Working or not working
3. What shopping products have been purchased by you/your family in the last six months. Make a list and specify what factors influenced the purchase of each of these products.
Washing Machine: Brand, Price, Specifications, and Warranty
Dress Material: Cost and Fashion
Price, quality, comfort, and design of a cot bed
Sandal: cost, brand, size, and material
4. What information is generally placed on the package of a food product. Design a label for one of the food products of your choice.
Manufacturing date and expiration date
Directions for use
5. 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.
Nokia takes a four-lane road to consumers.
NEW DELHI: After having grabbed a king-size 79% share of the Rs 15,000- crore mobile handset market in India, Nokia India has found a new way of connecting people. The mobile handset manufacturer has embarked upon a brand new retail strategy that is based on a classification of its consumers into four major groups that separates people in terms of usage, income level and lifestyle. The classification is based on an extensive survey – the Nokia Segmentation Study — that was carried over two years involving 42,000 consumers from 16 countries. It studied the impact lifestyle choices and attitudes have on the mobile devices consumers buy and how they use them. The strategy, which was announced globally in June last year, is being unfolded in India now. While the nitty-gritty of the new strategy is still being worked out, it is likely that the company would follow separate marketing strategies for the four different segments. The advertising campaigns could be different for the segments. Nokia’s entire product portfolio has now been realigned towards these four groups to address the specific needs of each. The first of these segments Live, aimed at first time users whose basic need is to stay in touch with voice as the main driver, would have basic handsets low on features and price. “These may be functional phones but the target group for these phones range from SEC C (low socioeconomic class) to SEC A1+ (very high socioeconomic class) markets,” says Nokia India marketing head Devinder Kishore. The second segment Connect looks at more evolved users who look for more functionality and features and connectivity. Accordingly, phones in this segment would have GPRS, camera and music capabilities. The next two categories, Achieve and Explore, are aimed at high-end users and have Nokia’s top-end handsets. For example, Achieve segment looks at enterprise users who need to have business functionalities in their phones. Nokia’s new E-series has been put under this segment with handsets having QWERTY keyboards and full Internet capabilities. Aimed at high-end lifestyle users, Explore would be the most prominent segment for the company in the coming years. Says Nokia India multimedia business director Vineet Taneja, “This segment would see the most vibrant growth in the coming year. It will look at five different areas – applications, imaging, mobile TV, music and gaming. We are fast developing the ecosystem to support these areas.” Nokia acquired music solution and content provider LoudEye and GPS solution provider Gate5. It is all slated to launch its most high-profile handset, which boasts of having a 5 megapixel camera and GPS capabilities apart from iPod quality music, in February. Says Taneja, “There is increasing demand for convergence and multiple functionalities in high-end handsets. The N-series will try to address that.” Nokia feels that the new platform strategy wherein different handsets are launched under a platform, like the N-Series, will become a status and style statement and drive numbers.
1. Identify the four market segments that Nokia plans to address as per the news report above.
Ans: Live, Connect, Achieve, and Discover
2. What is the basis of classification of the market used by the company?
Ans: SEC Socio-Economic Class, Usage, and Way of Life
3. What do you mean by realignment of product portfolio? Illustrate this from the case above.
Ans: Product portfolio realignment refers to the development of a portfolio in relation to the needs. The four different handsets are planned to meet the needs of various customers.
4. Identify the points that can be highlighted in marketing campaigns for each segment.
5. What are the different considerations in the mind of consumers of each segment while purchasing mobile phones as given in the above case?
First Segment: Mobile users for the first time. The primary consideration in this case is price.
Second Segment: Users who think about features and functionality. Both features and price are important considerations in this case.
Third Segment: High-end customers. The main considerations here are its uniqueness and functionalities.
Marketing Class 12 NCERT Solutions- Free PDF Download
Free PDF study material is available for download from our website and app. Students can grab this opportunity and start their learning now itself. Our NCERT Solutions for Class 12 Business Studies consists of clear solutions to all NCERT textbook questions along with other forms of fun worksheets. The study material consists of questions ranging from MCQs to Long answers. Answers are organized conveniently, be it a tabular form or even a simple point. The notes are all thoroughly revised and error-free.
Students can completely rely on this single source which gives them adequate information regarding the subject. Students can find all kinds of explanations regarding the chapter in NCERT Solutions for Class 12 Business Studies.
NCERT Solutions Class 12 Business Studies
Chapter 11 - Marketing
Chapter 11 Marketing is a significant topic for students, both theoretically and practically. Apart from academics, marketing is an important aspect to be discussed for aspiring entrepreneurs. Some of the concepts cleared in NCERT Solutions for Class 12 Business Studies include branding, labelling, convenience products, packaging, advertising, etc. Beginners at times may find it tough to realize the functioning behind these broad terms. However, if he/she goes through these study materials, it's sure that they can pick up almost all the concepts in no time and the rest of them in subsequent reading. Topics like consumer rights, societal concepts, packaging, designing, etc are covered in NCERT Solutions.
Business Studies Class 12 Chapter-wise Marks Weightage
The weightage of marks expected from Chapter 11 Marketing ranges between 10-15 with the chances of many long answers. So this chapter isn't a one that is supposed to be skipped. Students need to thoroughly learn this chapter to ensure good marks in examination, for which NCERT Solutions will be always backing you.
Some of the long answers expected from this portion are:
What is a marketing concept and how does it help in the productive marketing of goods and services?
Explain how branding helps in creating product differentiation. State if it is useful in the marketing of goods and services.
Why Are NCERT Solutions Marketing Class 12 Business Studies Important?
At the end of using these notes, students will get an image regarding the functioning of markets and other related aspects for sure.
As all kinds of questions and topics are covered, students need not waste their time searching for multiple books or notes
The quality solutions provided enables students to cultivate a very good base in answering questions accurately.
The speed of writing and reading is naturally increased through the various activities scripted in our NCERT Solutions.
Students get the ability to think and analyze a situation or question from a practical point of view at the end.
NCERT Solutions for Class 12 Business Studies Chapter 11 - Marketing provides a comprehensive and insightful understanding of marketing concepts and strategies. These solutions cover essential topics like market segmentation, branding, advertising, and distribution channels, equipping students with the knowledge to excel in the dynamic business environment. The practical examples and case studies in these solutions enhance students' analytical and problem-solving skills, fostering a strategic approach to marketing decisions. By engaging with these solutions, learners can develop a deeper appreciation for the role of marketing in business success and gain valuable insights into consumer behavior and market trends. Overall, NCERT Solutions for Class 12 Business Studies Chapter 11 empower students to excel in the field of marketing and contribute effectively to the business world.
FAQs on NCERT Solutions for Class 12 Business Chapter 11 - Marketing
1. What are the Advantages of the Packaging of Consumer Products?
Packaging can be defined as the process of beautifying a container or a cover as per the needs of a product. It's advantages are:
As various designs and colours are used, it acts as a source of attraction for the consumers.
Consumers can easily differentiate products with the help of packaging.
The product is prevented from various kinds of damage and spoiling.
Details regarding the product are listed on the packaging which gives a sense of transparency to the consumers.
2. Explain the Societal Concept of Marketing.
The societal concept of marketing can be explained as the concept wherein different organizations identify the need or purpose of markets along with targeting the consumers attracted to those markets. This concept enables the delivery of products efficiently to the customers along with good and services.
This kind of marketing comes with the responsibility of protecting customer values and desires. Consumers must always be a priority for this concept to work out. Long term understanding between various organizations and markets are also important for this concept.
3. State any two advantages of branding to marketers of goods and services.
There are multiple advantages of branding for marketers of goods and services. The two main advantages are:
Branding facilitates the goods or services to stand out and have a unique identity of their own so that it reaches out to more and more people and ultimately has loyal buyers.
Whenever the marketer aims at launching a new product or service, he already has his base set with that unique brand of his.
4. How does branding help in differential pricing?
The more unique, popular or reputed a brand is, the more loyal buyers it tends to have. Hence these brands have the freedom to manipulate the prices of similar products as their customers know that the brand will not compromise in terms of the quality of their products or services. Hence we see such differences in prices of similar goods or services of different brands, the most reputed ones having premium prices.
5. Is branding important?
Yes, branding is really important, especially in today’s market. It is crucial as it not only creates a good impression on buyers but also informs your customers and clients about what to expect from your business. It is a method of distinguishing yourself from competitors and clarifying what you provide that makes you the better choice. For more information on this subject, you can visit the Vedantu website or the app.
6. How to master Class 12 Business Studies Chapter 11?
Remind yourself of the fundamentals of this chapter.
Get an in-depth understanding of this chapter.
Do not mug up and understand the logic behind each concept.
Try answering NCERT questions.
Determine which topics you are comfortable with and which need more practice. If you are having trouble understanding a topic, you can seek the help of Vedantu to clear your doubts.
7. Is Chapter 11 Class 12 Business Studies easy?
Class 12 is less difficult than Class 11, but the syllabus is more extensive. Also, because you will be preparing for higher education, it is important to study and perform well in your Class 12 exams, as these will have an impact on your university selection process. The fundamental concepts must be thoroughly understood, and various exercises must be performed. Chapter 11 is an easy and interesting concept, while all the solutions are available free of cost on Vedantu.