NCERT Questions for Class 12 Business Studies Chapter 10 – Marketing

Important Questions with Solutions of Class 12 Business Studies Chapter 10 – Marketing

1) Rohit, Tanish & Ginika are all college pals who are currently involved in several companies. In addition to exchanging remarks on client happiness, advertising campaigns, design of goods, sales strategies, social issues, etc., they gather often to talk about their company concepts. During one such discussion, Ginika brought Tanish and Rohit’s spotlight on the issue of user abuse. She stated that the majority of merchants were taking advantage of customers in numerous manners and neglecting the moral, sustainable, and cultural elements of advertising. But she wasn’t doing that. Determine the different ways of assuming that directed Ginika, Tanish & Rohit in their operation beliefs. Furthermore, indicates a single aspect of the different ways of imagining that had been not mentioned in the previous paragraph. Tanish mentioned that they’re in immense tension to meet the clients, but that the prospects would not purchase or would rather acquire sufficient as long as they were sufficiently persuaded and driven for the identical. Rohit emphasized that an organization can’t accomplish its goals without comprehending the demands of the prospects. He continued by saying that he was implementing the desires of the clients into assessment.

Ans – The societal advertising theory serves as the foundation for Ginika’s thinking. Based on this theory, companies should consider the intended audience’s future goals and happiness in addition to their present demands.
Feature: This method of conceptualization emphasizes how important it is for the company to dedicate consideration to social and ecological difficulties including price increases, pollution, destruction of forests, and growing populations.

The selling notion serves as the foundation for Tanish’s thinking. A buyer will purchase an item, based on this notion, if he is adequately persuaded by its characteristics, excellence, and various other aspects.
Feature: This style of thought emphasizes how crucial it is for businesses to concentrate on rigorous sales & marketing strategies to increase sales of their goods.

The marketing concept is the foundation of Rohit’s thought. Due to the study of marketing, the longevity of a business depends on its ability to satisfy its customers. In this situation, companies need to concentrate on comprehending and promptly meeting the needs of their clients.
Feature: This method of thought emphasizes that a business should aim to please consumers more effectively than its rivals, in addition to working for client fulfilment on their behalf.

2) Several key areas influence how a product’s charges are affixed. Describe any 4 of these elements.

Ans – The below categories are the 4 main areas that affect price allocation:

Product Pricing: The most important factor affecting a product’s pricing is its cost. The product cost is the sum of all fixed, variable, and semi-variable costs incurred during a product’s production, distribution, and sale. Costs that remain constant throughout production or sales are known as fixed costs. For instance, salary, building rent, and so on. Variable costs are expenses that are directly related to sales or production levels. For example, the total cost of labour, raw materials, and so on. Charges that differ in direct proportion to the overall operation levels but not regarding the activity levels are known as semi-variable costs.

Usage and Demand: Customers generally want more units of a product when its price is low, and vice versa. However, if a product’s demand is elastic, a small price change could influence the quantity that is requested. A price change has minimal effect on demand when there is inelastic demand. An organization can charge higher profits when there is inelastic demand. Additionally, the consumer is prepared to spend money until they feel the product’s value justifies the cost. As a result, both a product’s demand and utility affect its price.

Law and Government Guidelines: Monopoly companies typically charge higher prices for their products. The government steps in and controls commodity prices to protect the interests of the general public. Because of this, it designates certain goods as essential products, like drugs that can save lives.

Marketing Strategies Used: A variety of marketing strategies, including distribution system, employee quality, digital promotion, packaging type, customer service, etc can have an impact on a product’s price. For instance, a business would assign more pricing if it packaged its products with pricey materials.

3) Mediquip Ltd. is a business that distributes medical supplies. To measure the amount of sugar in the blood without drawing samples of the blood, the business recently purchased 15,000 pieces of sugar equipment for testing. The CEO of the business summoned a gathering of marketing directors from various zones to decide on the marketing approach. Sandeep, the North Zone Marketing Head, proposed at the conference that because the devices were so advanced, they should personally contact clinics to demonstrate how they operate to the healthcare professionals who will be utilizing them. He said that other qualified individuals may be enlisted for the same purpose. Another Zonal Head, Himanshu, stated that the firm lacked the means to compensate the extra workers as recommended by Sandeep because so many funds had been used for the transportation of the machinery. According to Rahul, the recently recruited Zonal Director of the Southern Zone, a thorough analysis of the variables influencing the selection of shipping methods is necessary before deciding the best decision because the order volume is not very significant.

(a) Determine the element that influenced the distribution routes that were addressed during the discussion.

Ans – The three elements that affect the selection of ways of distribution in the specific query are as follows:

1. Product-related variables (since the equipment is advanced)
2. Commercial characteristics (because the organization lacks the cash to hire additional staff)
3. Economic variables (since the arrangement is not very big)

(b) Additionally, explain the additional factors that need to be included in account for every one of the factors mentioned in item (a).

Ans – Additional elements to consider in the situation are:

1. Item-related elements: The kind or categorization of a product greatly influences the marketing channel that is selected. The product’s intricacy, whether or not it is durable or durable, and whether it serves as an enterprise or retail item must all be ascertained. For instance, an item that is smart or intricate will require meticulous care and limited routes to market.

2. Firm features: The characteristics of a business are crucial in deciding which method of distribution to employ. A company’s economic health and the degree of authority it wants over middlemen impact the marketing channels it decides on. Given the first, a profitable business with surplus funds can opt for a lesser distribution path. This is due to smaller routes of shipment often requiring additional funds for activities like hiring additional representatives or creating an increased amount of retail locations. Likewise, a company that desires more influence over intermediaries must opt for simpler distribution channels. This is justified by the fact that immediate or brief connections are quicker to manage since they include fewer middlemen. On the contrary, businesses that have less influence over intermediaries may opt to extend distribution channels.

3. Market-oriented factors: Outlet distribution is influenced by a number of factors, including market value, customer density by geography, quantity requested, and others. For instance, more brief channels ought to be utilized for little requests, while lengthy channels are recommended for large orders. In a similar vein, fewer channels ought to be employed for tiny markets and longer routes for large markets.

4) Mention any 4 criteria which impact the overall charges of a product 

Ans – Here are the desired standards that influence a total pricing of a product:

1. Product Pricing: The most vital element in allocating the cost is the product charge. The overall price of a product can end up in 1 of 3 variants that are mentioned below,

• Fixed charges: These are pricing that stands as a constant or permanent irrespective of production stages, like the pricing of machinery or an apartment.
• Variable expenses: These variables are the expenditures that fluctuate immediately in connection to the result. As production increases, so do cost variables; for instance, labor & commodity expenses increase in tandem with output.
• Semi-variable costs: These are charges, such as commissions incurred by middlemen, that change directly according to the volume of production.

2. Product Requirement: Another crucial factor affecting the cost of a good is the flexibility of consumer demand for that item. How sensitive demand is to changes in prices is known as the cost elasticity of need.

• Whenever a proportional cost reduction does not produce a discernible shift in demand, this is known as cost elasticity of consumption. In this case, a business may theoretically demand a greater rate. This is the case, despite a greater cost, interest will be relatively constant. Consequently, goods with a rigid market are more expensive than those with demand that is flexible.
• When an equal increase in cost leads to a larger than comparable gain in demand, this is known as an elastic pricing request. In this instance, a significant drop in customer demand would follow the company’s choice to raise prices.

3. Competitor Rivalry: It is hard for a business to assess greater rates in extremely competitive markets. This is why clients will choose its rivals if the business demands higher prices.

4. Government Guidelines: The rates of several goods are periodically regulated by the governing bodies. They meddle in the setting of prices for commodities like flour & rice.

5) “Although being one of the most famous options to promote products & services, marketing is faced with an abundance of negative criticism.” Describe in detail on any 4 of these arguments.

Ans: Here are many various viewpoints on marketing expenditures. Since it raises production expenses, diminishes societal values, and broadens user demands and wants, it is viewed as an environmental trash. However, because it helps increase sales and profits, it’s regarded as beneficial.

Arguments against marketing as a corporate waste of funds include:

• Greater Price: Advertising expenses raise the price of the good and the company, which proceeds to be transmitted to consumers as an extra expense in the shape of greater prices.
• AD Management: Conversely, advertising helps attract consumers to the goods. Consequently, the item’s popularity rises. There is a surge in production to meet the higher requirements. Production growth reduces creational expenses per item.
• Creates Havoc: The buyer frequently becomes disoriented while a large number of similar items are marketed. However, proponents of ads assert that they help customers understand more about the wide range of items on the marketplace. Consequently, their choices increase and they become more capable of making well-informed choices on the goods they want to buy.
• Enhance Substandard Goods: Customers are convinced to purchase the goods by ads. It is possible to market and convince people to buy even below-average goods. Contrarily, quality is seen as a personal experience. Ads inform customers about a variety of goods. Customers have to choose if they want to buy the merchandise.
• Controversial Ads: Sometimes, ads can be insulting because they subvert societal norms. For instance, women are represented negatively in several advertisements. The ads’ vocabulary, imagery, and substance can sometimes be less palatable to the general public.