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

Very Short Answer Type Questions

• Product Differentiation: Branding helps in differentiating a product from its competitors, allowing customers to identify the product easily.
• Customer Loyalty: Branding builds customer loyalty as a trusted brand retains its consumers over time.

Q2: How does branding help in differential pricing?
Ans: Branding allows firms to charge higher prices for their products by creating a perception of superior quality and added value.

Q3: What is the societal concept of marketing?
Ans: The societal concept of marketing focuses on meeting customer needs in a way that preserves and enhances the well-being of society, addressing long-term issues like environmental protection and ethical considerations.

Q4: Enlist the advantages of packaging of consumer products.
Ans:

1. Product Protection: Protects the contents from damage during storage and transportation.
2. Product Identification: Helps in identifying the product easily through labels and branding.
3. Convenience: Makes it easier for customers to handle, open, and store the product.
4. Promotion: Attracts attention and persuades customers through visual appeal.

Q5: List five shopping products purchased by you or your family during the last few months.
Ans: Examples include:

1. Refrigerator
2. Television
3. Furniture
4. Jewellery
5. Microwave Oven.

Q6: A marketer of colour TV having 20% of the current market share of the country aims at enhancing the market share to 50 per cent in next three years. For achieving this objective, he specified an action programme. Name the function of marketing being discussed above.
Ans: The function of marketing being discussed is Marketing Planning

Short Answer Type Questions

1. Gathering and Analysing Market Information: This is done to identify the needs of the customers and take various decisions for the successful marketing of the products and services. 
2. Marketing Planning: Another important activity or area of work of a marketer is to develop appropriate marketing plans. so that the marketing objective of the organisation can be achieved. 
3. Product Designing and Development: The design of the product contributes to make the product attractive to the target customers. A good design can improve performance of a product and also give it a competitive advantage in the market. 
4. Standardisation and Grading: Standardisation refers to producing goods of predetermined specification which helps in achieving uniformity and consistency in the output which reduces the need for Inspection. testing and evaluation of the products. Grading is the process of classification of products into different groups, on the basis of its features such as quality, size etc. It ensures that goods belong to a particular quality helps in releasing higher prices for high quality output.
5. Packaging and Labelling: Packaging refers to designing the package for the products. Labelling refers to designing the label to be put on the package. Packaging provides protection to the product and also helps in its promotion. Labelling helps in self service. 
6. Branding: Brand names help in creating product differentiations i.e., how the product can be distinguished from Its competitors. 
7. Customer Support: Service Marketing management relates to developing customer support service such as after sales services. handling customer complaints. All these aim at provides customer satisfaction which is a key to marketing success. 
8. Pricing of Product: Price is an Important factor affecting the success or failure of a product in the market. The marketers have to analyse properly the factors determining the price of a product. 
9. Promotion: Promotion of products and services involves informing the customers about the firm’s product, its features etc and persuading them to purchase these products. It includes four method advertising, sales promotion, personal selling and publicity.
10. Physical Distribution: The important decisions areas under physical distribution include managing inventory, storage, warehousing and transportation of goods from one place to the other. 
11. Transportation: Transportation involves physical movement of goods from one place to another. A marketer has to perform this function very efficiently keeping in mind the nature of product. cost, location of target market etc. 
12. Storage or Warehousing: In order to maintain smooth flow of products in the market, there is a need for proper storage of the products. Further, there is a need for storage of adequate stock of goods to protect against unavoidable delays in delivery or to meet out contingencies in the demand. Wholesalers and retailers are playing an important role.

Q2: Distinguish between the product concept and production concept of marketing. 
Ans: Difference between product and production concept is as follows:

Basis:

• Product concept: Focuses on creating high-quality products.
• Production concept: Focuses on producing items on a large scale.

Focus:

• Product concept: Aims to deliver good quality.
• Production concept: Aims for mass production.

Means:

• Product concept: Involves improving the product.
• Production concept: Ensures easy availability of products.

Ends:

• Product concept: Seeks profit by offering better quality products.
• Production concept: Seeks profit through large-scale production.

Q3: Product is a bundle of utilities. Explain. 
Ans: Yes, product is a bundle of utilities, which is purchased because of its capability to provide satisfaction of certain need. A buyer buys a product or service for what it does or service for what it does for her or the benefits it provides. There can be three types of benefits, it provides to a customer 

• functional benefits 
• psychological benefits 
• social benefits.

e.g., the purchase of a motorcycle provides functional utility of transportation, but at the same time satisfies the need for prestige and esteem and provides social benefit by the way of acceptance from a group by riding it.

Q4: What are industrial products? How are they different from consumer  products? Explain. 
Ans: Industrial products refer to those products that are used as inputs for the production of other goods. Such goods are not meant for final consumption rather they are used as raw material and inputs by the manufacturers for the production of consumer goods. For example, machines, tools etc. are industrial products. As against this, consumer products refer to those products that are used by the ultimate customers for their personal consumption purposes. For example, toothpaste, edible oil, furniture, etc. are consumer goods. The following points highlight the difference between industrial products and consumer products.

Q5: Distinguish between convenience product and shopping product. 
Ans: 

Q6: Describe the functions of labeling in the marketing of products. 
Ans: Label on a product provides detailed information about the product, its contents, methods of use etc. The various functions performed by a label are as follows:

• Describe the Product and Specify its Contents: One of the most important functions of labels is that it describes the product, its usage, cautions in use etc and specify its contents
• Identification of the Product or Brand: A label helps in identifying the product or brand e.g., we can easily pick our favourite soap from a number of packages only because of its label. 
• Grading of Products: Labels help grading the products into different categories. Sometimes, marketers assign different grades to indicate features or quality of the product e.g., different type of tea is sold by some brands under Yellow, Red and Green label categories. 
• Help in Promotion of Products: An important function of label is to aid in promotion of the products. A carefully designed label can attract the customer to purchase. So, many labels provide promotional messages, some show discount or other schemes etc
• Providing Information Required by Law: Another important function of labelling is to provide information required by law. e.g., the statutory warning on the package of cigarette or pan masala – ‘Smoking is injurious to health’ or ‘Chewing tobacco causes cancer.’

Q7: Discuss the role of intermediaries in the distribution of consumer non-durable products. 
Ans: The term channels of distribution refers the facilitate to the movement of goods and services and their title between the point of production and point of consumption, by performing a variety of marketing activities. Following are the functions performed by the channels of distribution 

• Accumulation: It aims at holding the stock to match between the consumer demand and supply condition, warehousing helps in maintaining continuous flow of goods and services. 
• Promotion: The marketing channels also help in promoting the demand for the product by displaying demonstrating and participating in various promotional activities organised by the producers. 
• Negotiating: The marketing channels are the intermediaries between the producers and the consumers. They attempt to reach final agreement on price and other terms of the offer, so that transfer of ownership is properly affected. 
• Risk: Taking Risk taking is the basic responsibility of the intermediaries. It may arise out of physical deteriorations, changes in price levels, natural calamities, change in fashion etc. These are unavoidable as they hold sufficiently large and variety of inventories till the sale of stock. 
• Grading/Sorting: Grading is the process whereby they sort the products on the basis of different sizes, qualities, moisture contents and so on. It helps us realising the time value for the product and at the same time ultimate consumer feels satisfied with the uniform quality of the product. 
• Packaging: The products are packed in the small tradable lots for the convenience of the consumer. 
• Assembling/Assortment: Marketing channels aim at satisfying the needs of the customers. The products desired by the consumer may not be available in the market. They procure such goods from different sources, assemble or assort them as per the requirements of the consumers.

Q8: Define advertising? What are its main features? Explain. 
Ans: Advertising is defined as the impersonal form of communication which is paid form by the marketer to promote some goods or services, It is commonly use as the promotional tool of the company, The important features of advertising are as follows:

• Paid Form: Advertising is a paid form of communication which means the sponsor has to bear the cost of communication with the prospects,
• Impersonality: There is no direct face to face contact between the prospect and advertiser, It is therefore, referred as the impersonal method of promotion.
• Identified Sponsor: Advertising is undertaken by some Identified individual or company, who makes the advertising efforts and also bears the cost of it.

Q9: Discuss the role of ‘sales promotion’ as an element of promotion mix. 
Ans: Sales promotion includes those marketing activities other than personal selling, advertising and publicity that stimulate consumer  purchasing and dealer effectiveness, such as display, shows and exhibitions, demonstrations and various non-current selling efforts not in the ordinary routine, The main objectives of sales promotion activities are:

• Creation of demand for the product.
• Educating the consumers about new products or new uses of the old product.
• Building the brand loyalty for the product among the consumers.

Q10: As the marketing manager of a big hotel located at an important tourist destination, what societal concerns would be faced by you and what steps would you plan to take care of these concerns? Discuss. 
Ans: As a marketing manager of a big hotel located at an important tourist destination, some societal concerns that may arise include:
Societal Concerns:

1. Environmental Impact: Our hotel's operations can affect the environment through energy usage, water consumption, waste generation, and emissions. Preserving natural resources and ecosystems is crucial.

2. Cultural Sensitivity: Tourism can sometimes lead to the commodification or misrepresentation of local cultures. Respecting and preserving the cultural heritage of the destination's communities is essential.

3. Community Integration and Empowerment: The tourism industry may contribute to social and economic disparities within local communities. Ensuring equitable distribution of benefits and supporting community development is vital.

4. Accessibility and Inclusivity: There may be challenges in ensuring that tourism facilities and experiences are accessible to all, including people with disabilities and marginalized groups.

Steps to Address Concerns:

1. Sustainable Practices: Implement energy-efficient measures, water conservation initiatives, waste reduction programs, and pursue green certifications. These actions demonstrate our commitment to environmental responsibility.

2. Cultural Sensitivity Training: Provide staff with training to promote respectful interactions with guests from diverse backgrounds. Collaborate with local cultural experts to offer authentic experiences and avoid cultural appropriation.

3. Community Engagement: Partner with local businesses, artisans, and organizations to support economic empowerment and community development. Offer job training programs, educational scholarships, and infrastructure improvements to benefit the local population.

4. Accessibility Measures: Conduct accessibility assessments of hotel facilities and services to identify and address barriers. Implement modifications such as wheelchair ramps, accessible rooms, and inclusive activities to ensure all guests feel welcome and accommodated.

By taking these proactive steps, our hotel can enhance its reputation as a responsible tourism destination, attract socially conscious travelers, and positively contribute to the well-being of the local community and environment

Q11: What information is generally placed on the package of a food product? Design a label for one of the food products of your choice. 
Ans: Information typically placed on the package of a food product includes:

1. Product Name: Clearly stating the name of the food product for easy identification.

2. Ingredients: Listing all the ingredients used in the product, usually in descending order of predominance by weight.

3. Nutritional Information: Providing details about the nutritional content per serving, including calories, macronutrients (such as fat, carbohydrates, and protein), and micronutrients (such as vitamins and minerals).

4. Allergen Information: Highlighting any common allergens present in the product, such as gluten, dairy, nuts, or soy.

5. Net Weight: Displaying the weight of the product contents.

6. Manufacturer Information: Including the name and address of the manufacturer, packer, or distributor responsible for the product.

7. Batch/Lot Number: Indicating the batch or lot number for traceability purposes.

8. Expiration Date: Providing the date by which the product should be consumed for optimal quality and safety.

9. Storage Instructions: Advising on the proper storage conditions to maintain product freshness and safety.

10. Country of Origin: Specifying the country where the product was produced or manufactured.

11. Certifications: Displaying any relevant certifications or seals of approval, such as organic, non-GMO, or halal.

Here's a label design for a box of breakfast cereal:

Breakfast Cereal- NutriOats
Ingredients:

• Whole grain oats, sugar, salt, vitamins, minerals, natural flavor

Nutritional Information:

• Serving Size: 1 cup
• Calories: 120
• Total Fat: 2g
• Carbohydrates: 25g
• Protein: 4g
• Fiber: 3g

Allergen Information:

• Contains wheat
• Net Weight: 400g

Manufacturer: ABC Inc.
123 Main Street, Anytown, USA
Batch/Lot Number: 123456
Expiration Date: 12/2023
Store in a cool, dry place

Q12: For buyers of consumer durable products, what ‘customer care services’ would you plan as a manager of a firm marketing new brand of motorcycle. Discuss.
Ans: As a manager of a firm marketing a new brand of motorcycles, I would prioritize the following customer care services:

1. Pre-Sale Support: Provide comprehensive information about motorcycle features and benefits, facilitate test rides, and assist with purchase decisions.
2. Purchase Assistance: Offer guidance on financing options, streamline the purchasing process, and ensure transparent pricing.
3. Delivery and Installation: Arrange prompt delivery, ensure proper assembly, and provide assistance with setup and familiarization.
4. After-Sales Service: Establish authorized service centers for maintenance and repairs, offer flexible service plans, and provide genuine spare parts.
5. 24/7 Helpline and Online Support: Offer round-the-clock customer support through various channels for quick assistance.
6. Technical Assistance and Training: Provide resources for troubleshooting, basic maintenance, and riding skills enhancement.
7. Feedback and Improvement: Gather customer feedback to identify areas for enhancement in product design and service delivery.

These customer care services aim to create a seamless and positive experience for motorcycle buyers, fostering loyalty and advocacy for the brand.

Long Answer Type Questions

How It Helps in Effective Marketing:

1. Customer Orientation: Encourages understanding customer preferences, leading to better product offerings.
2. Value Creation: Ensures products and services meet customer expectations.
3. Improved Decision-Making: Provides insights into market demands, enabling better strategies.
4. Increased Loyalty: Builds strong customer relationships, leading to repeat business and referrals.

Q2: What is marketing mix? What are its main elements? Explain. 
Ans: Marketing mix refers to the combination of four main elements known as the four P’s: Product, Price, Promotion, and Place. 
Product Mix: This aspect covers the features of a product, which include: 

• Range - the variety of products offered.
• Quality - the standard of the product.
• Size - the dimensions of the product.
• Labelling - the information provided on the product.
• Packaging - how the product is wrapped or contained.
• Branding - the identity of the product.

All products should meet the needs and expectations of consumers, aiming to offer good quality at fair prices. 
Price Mix: This involves making decisions about: 

• Price determination - setting the product's price.
• Discounts and allowances - reductions in price offered to customers.
• Credit terms - the conditions under which credit is extended to customers.

It also includes pricing objectives and policies. The price should cover production costs and selling expenses while ensuring a reasonable profit margin. The pricing strategy should consider costs, customer demand, and competition. 
Place Mix: This connects sellers and buyers through distribution channels. Key considerations include: 

• Channels of distribution - the routes through which products reach customers.
• Transportation - the method of moving goods.

Factors influencing channel choice include the timing and location of delivery, the nature of the goods, destination, costs, and availability. 
Promotion Mix: This encompasses all marketing activities aimed at boosting product sales. It involves: 

• Advertising - paid promotions to reach potential customers.
• Personal selling - direct interaction with customers to persuade them to buy.
• Publicity - generating public awareness about the product.
• Sales promotion - short-term incentives to encourage purchases.

The goal is to inform and convince potential buyers to choose a specific product. 

Q3: How does branding help in creating product differentiation? Does it help in marketing of goods and services? Explain.
Ans: Brandinghelps a firm in distinguishing its products from that of its competitors.

• This helps the firm to secure and control the market for its products.
• If products were sold by generic names, it would be very difficult for the marketers to distinguish their products from its competitors.
• Thus, most marketers give a name to their product, which helps in identifying and distinguishing their products from their competitors' products.
• This process of giving a name or a sign or a symbol etc to a product is called Branding.

Q4: What are the factors affecting determination of the price of a product or  service? Explain.
Ans: There are number of factors which affect the fixation of the price of a product. Some of the important factors in this regard are discussed as below 
(i) Product Cost The cost sets the minimum level or the floor price at which the product may be sold. There are broadly three types of cost - fixed costs, variable costs and semi variable cost. Total cost is the sum of all these three. Generally, all firms try to cover all their costs, at least in the long run. In addition, they aim at earning a margin of profit over and above the costs. 
(ii) The Utility and Demand The utility provided by the product and the intensity of demand of the buyer sets the upper limit of price, which a buyer would be prepared to pay. In fact, the price must reflect the interest of both the parties to the transaction – the buyer and the seller. The buyer may be ready to pay up to the point, where the utility from the product is at least equal to the sacrifice made in terms of the price paid. The seller would, however, try to cover the costs. According to the law of demand, consumers generally purchase more units at a low price than at a high price. 
(iii) The Extent of Competition in the Market The price is also affected by the nature and degree of competition. The price will tend to reach the upper limit in case there is less degree of competition while under free competition, the price will tend to be set at the lowest level. 
(iv) Government and Legal Regulations In order to protect the interest of the public against unfair practices in the field of price fixing, the Government can intervene and regulate the price of commodities. Government can declare a product as an essential product and regulate its price. 
(v) Pricing Objectives Pricing objectives are another important factor affecting the fixation of the price of a product or a service. Apart from price maximization, the pricing objectives of a firm may include: 

• Obtaining Market Share Leadership If a firm's objective is to obtain larger share of the market, it will keep the price of its products at a lower level, so that a greater number of people are attracted to purchase the products. 
• Surviving in a Competitive Market If a firm is facing difficulties surviving in the market because of intense competition or introduction of a more efficient substitute by a competitor. 
• Attaining Product Quality Leadership Higher prices are charged to cover high quality and high cost of R&D (Research and Development). 

(vi) Marketing Methods used Price fixation is also affected by other elements of marketing such as distribution system, quality of salesmen employed, quality and amount of advertising, sales promotion efforts, the type of packaging, product differentiation, credit facility and customer service provided. 

Q5: Explain the major activities involved in the physical distribution of products. 
Ans: Physical distribution involves all the activities necessary to move products from the manufacturer to the customers. Key activities in this process include:

• Order Processing: This is the first step in a typical buyer-seller relationship. When a customer places an order, it initiates the flow of products from manufacturers to customers through various channels. A quick and efficient order processing system is crucial for ensuring that orders are handled accurately and swiftly.
• Transportation: This refers to the methods used to move goods and raw materials from where they are made to where they are sold. Transportation is essential in the physical distribution process because goods must be available to complete sales.
• Warehousing: This is the process of storing and organizing products to make them ready for consumption when needed. Warehousing creates time utility, meaning goods can be stored until they are required. The location of warehouses and their efficiency greatly influence how well a business can serve its customers.

Inventory Control: Managing inventory levels is critical. Keeping a higher inventory level can improve customer service, but it also increases carrying costs, as more capital is tied up in stock. Decisions about inventory levels depend on:

• The company’s policy on customer service: A higher level of service typically requires maintaining larger inventories.
• The accuracy of sales forecasts: More precise estimates can reduce the need for high inventory levels.
• The responsiveness of the distribution system: This refers to how well the system can communicate inventory needs back to the production facility and deliver products to the market.
• The costs associated with inventory, which include holding costs like warehousing expenses and capital that is tied up in stock, as well as manufacturing costs.

Q6: ‘Expenditure on advertising is a social waste.’ Do you agree? Discuss. 
Ans: The opponents of advertising say that the expenditure on advertising is a social waste as it adds to the cost, multiplies the needs of the people and undermines social values. The proponents, however argue that advertising is very useful as it increases the reach, brings the per unit cost of production down and adds to the growth of the economy. 

Following are the points of criticism:

• Adds to Cost: The opponents of advertising argue that advertising unnecessarily adds to the cost of product, which is ultimately passed on to the buyers in the form of high prices. It is line that advertisement of a product cost lots of money but it helps to increase the demand for the product as large number of potential buyers come to know about the availability of the products, its features etc and are persuaded to buy it. This increases the demand and therefore the production. As a result, the per unit cost of production comes down as the total cost is divided by larger number of units. 
• Undermines Social Values: Advertising undermines social values and promotes materialism. It breeds discontentment among people as they come to know about new products and feel dissatisfied with their present state of affairs. This criticism is not entirely time. Advertisement in fact helps buyer by informing them about the new products which may be Improvement over the existing products. 
• Confuses the Buyers: Another criticism against advertisements is that so many products are being advertised which makes similar claims that the buyer gets confused as to which one is true and which are should be relied upon. e.g., there are so many brands of soaps, shampoos, cars, TVs, cell phones etc which are advertised. The supporters of advertisement, however argued that we are all rational human beings who make our decisions for purchase of products on factors, such as price, style, size, etc. Thus the buyers can clear their confusion by analysing the information provided on the advertisements and other sources before taking a decision to purchase a product. 
• Encourages Sale of Inferior Product: Advertising does not distinguish between superior and inferior products and persuade people to purchase even the inferior products. The desired level of quality will depend on the economic states and preferences of the target customers. Advertisements sell products of a given quality and the buyers will buy, if it suits their requirements. 
• Some Advertisements are in Bad Taste: Another criticism against advertising is that some advertisements are in bad taste. They show something which is not approved by some people. Some advertisement spoil the relationship between employer and employee, husband and wife etc. 

From the above discussion, we have learnt that through advertisements are criticised but still they have their own advantages. It is not a social waste, rather it adds value to the social cause by giving a boost to production and generating employment.

Q7: Distinguish between advertising and personal selling. 
Ans:  Advertising is a form of communication that is typically paid and less personal. It is used by marketers to promote products and services. 

• In contrast, personal selling involves direct communication between the seller and potential customers. This means that it includes face-to-face interactions aimed at selling a product. 
•  The key difference between advertising and personal selling lies in their approach: advertising is more about reaching a large audience, while personal selling focuses on one-on-one contact. 
• Marketers use advertising to create awareness and interest in their offerings without direct engagement with each individual. 
•  On the other hand, personal selling allows sellers to address the specific needs and questions of customers directly, which can lead to a more personalized experience. 
•  Overall, advertising is about broadcasting a message broadly, while personal selling is about building relationships and understanding customer needs.

Q8: Explain the factors determining the choice of channel of distribution.
Ans: The choice of channel of distribution, or distribution channel, is influenced by several factors:

1. Nature of the Product: The characteristics of the product, such as its perishability, size, weight, and value, determine the most suitable distribution channel. For example, perishable goods may require direct and fast distribution channels, while durable goods may be distributed through intermediaries.
2. Target Market Characteristics: Understanding the preferences, behaviors, and location of the target market is crucial. Factors such as geographic dispersion, demographics, and purchasing habits influence the choice of distribution channels. For instance, urban markets may have different distribution needs compared to rural areas.
3. Competitive Environment: The distribution strategies of competitors can impact channel selection. Analyzing competitors' distribution channels, strengths, and weaknesses can help in identifying gaps or opportunities for differentiation.
4. Company Resources and Capabilities: The financial resources, infrastructure, and logistical capabilities of the company play a significant role. Companies with limited resources may opt for simpler distribution channels, while those with extensive resources may choose more complex channels.
5. Market Coverage Objectives: Companies need to decide whether they aim for intensive, selective, or exclusive distribution. Intensive distribution aims to make the product available in as many outlets as possible, selective distribution focuses on specific outlets that match the product image, and exclusive distribution involves limited outlets to maintain exclusivity.
6. Channel Member Capabilities: Assessing the capabilities and effectiveness of potential channel members, such as wholesalers, retailers, and distributors, is crucial. Companies need to ensure that channel members can effectively deliver the product to the end consumer and represent the brand appropriately.
7. Legal and Regulatory Factors: Compliance with legal and regulatory requirements, such as licensing, permits, and trade restrictions, may dictate the choice of distribution channels, especially in international markets.
8. Market Trends and Technology: Keeping abreast of market trends and technological advancements is essential. Changes in consumer behavior, such as the growing preference for online shopping, may necessitate adjustments to distribution channels to stay competitive.

By considering these factors comprehensively, companies can make informed decisions about the most suitable distribution channels to reach their target markets effectively and efficiently.