Please refer to Marketing Management Class 12 Business Studies Important Questions with solutions provided below. These questions and answers have been provided for Class 12 Business Studies based on the latest syllabus and examination guidelines issued by CBSE, NCERT, and KVS. Students should learn these problem solutions as it will help them to gain more marks in examinations. We have provided Important Questions for Class 12 Business Studies for all chapters in your book. These Board exam questions have been designed by expert teachers of Standard 12.
Class 12 Business Studies Important Questions Marketing Management
Question: For selling its cars and vAnswer: Maruti udyog is making used of which channel of distribution?
Answer: Indirect channel(one level of distribution channel).
Question: Mansi took her niece, Ridhima, for shopping to ‘ Mega Stores ‘ to buy her a bag for her birthday. She was delighted when on payment of the bags she got a pencil box along with the bag free of cost. Identify the technique of sales promotion used by the company.
Answer: Production combination.
Question: Name the marketing function which is concerned with the importance decision of managing inventory.
Question: ‘They don’t sell what they can make , but they make what they can sell’. Name the concept to which this statement is related?
Answer: It is related to marketing concept.
Question: Who is marketer?
Answer: A person or an organization or a group of persons who provide goods or services to satisfy the needs of customers. He is called as provider of satisfaction.
Question: Zoom udyog, a car manufacturing co. has started its business with zoom 800 and slowly launched zoom-1000, wagon –Z ,swify –fy etc. and offered various services like after service , availability of spare parts etc. identify the element of marketing mix referred here.
Answer: Product .
Question: ‘ Beauty Products Ltd ‘ is a natural and ethical beauty brand famous for offering organic beauty products for men and women. The company used plant based materials for its product and is No. 1 beauty brand in the country. It not only satisfies its customers but also believes in overall protection of the planet.
Identify the marketing management philosophy being followed by ‘Beauty Products Ltd’.
Answer: Social marketing concept.
Question: Which Act has replaced MRTP Act?
Answer: ‘The competition Act 2002’ has replaced MRTP act.
Question: Which marketing philosophy give more importance to ‘consumer welfare ‘ instead of consumer satisfaction?
Answer: Societal marketing concept.
Question: Which concept of marketing suggest that the oraganisation can profit through volume of production?
Answer: Production concept.
Question: Name the quality certification mark used in case of food products.
Question: ‘Maruti Vega Ltd. ‘ entered into the market with colored television and have now introduced products like audio system, air conditioners, washing machines, etc. the company is not only offering the products but also handling complaints and offering after- sales services. Identify the element of marketing-mix discussed here.
Answer: Product/ product mix.
Question: A commercial unit uses rocks, trees , electric poles, historical management and walls to advertise its products. Which fault of the company does this advertising policy show.
Answer: Misuse of public property.
Question: Who is consumer?
Answer: According to consumer protection act ,a consumer is
(i) One who buys goods or hires services
(ii) Any use of such goods or service with approval of buyer
(iii) Anyone who bought the goods for earning livelihood.
Question: Vanshika used ‘ Kuber Cabs ‘ for travelling in the city. She received a text messaged “Add Rs. 222 on Kaytm and get 20% cash back on having minimum ten trips till 15th April , 2017. Identify the technique of sales promotion used by the company.
Answer: Refund .
Question: A cosmetic manufacturing company is spending a lot of money on advertisement to sell their products as they believe that the sale of good depends largely on the quality of advertisement. Name the marketing philosophy followed by him. State any other two marketing philosophy.
Answer: This type of marketing philosophy followed by this firm is ‘ selling concept ‘.
Question: What is meant by publicity?
Answer: It refers to non – paid form of impersonal communication by seller.
Question: A leading leather manufacturing company is using banned animal skin to make huge profit. Name the marketing concept which is ignored here.
Answer: Societal marketing concept is ignored here.
Question: Name the marketing function which is concerned with informing the customers about firm’s product.
Answer: Promotion .
Question: Explain any two points of responsibilities of a customer.
Answer: (i) Consumer must exercise his rights.
(ii) Insisting on cash memo.
Question: A tea producer uses such packets/things for packaging tea ,which can be used , even after consuming the tea, for other purposes. Here, which values are being affected by him?
Answer: Packaged Gift.
Question: Suggest any two remedies available under Consume Protection Act .
Answer: (i) Removal of defeats from goods.
(ii) Replacement of goods.
Question: One of the element of marketing mix is concerned with designing the shape, size and quality of good and services. Name that element of marketing mix.
Answer: Product mix.
Question: Can a consumer file a complaint in customer court without having the cash memo?
Answer: No, without cash memo he cannot file the complaint. Cash memo is the proof of transaction.
Question: Sunita took her niece. Aishwarya for shopping to ‘Benetton’ to buy her a dress on the occasion of her birthday. She was delighted when on payment for the dress she got a discount voucher to get 20% off for a meal of 500TM or above at a famous eating point. Identify the technique of sales promotion used by the company in the above situation.
Answer: Usable benefits.
Question: Name the element of marketing which makes the product available to the target customer?
Answer: Physical distributions.
Short Answer Type Questions:
Question: What do you mean by Personal Selling? Write any three qualities of a good seller.
Answer: Personal selling means selling personally. This involves face – to – face interaction between seller and buyer for the purpose of sale.
Qualities of Good Salesman:
- Physical qualities: A salesman must have good health and pleasing personality.
- Social qualities: A salesman must have good manners, courtesy in dealing with customers.
- Technical quality: the salesman must have full technical knowledge about the product.
- A salesman must have been honest and should not try to win the customer through false and misleading representation.
Question: Explain any four factors affecting the determination of the price of a product or service? Explain .
Answer: (i) Pricing objectives: If a firm wants to capture big share in the market then it has to keep its price low so that more number of people are attracted to purchase the product.
To survive in a competitive market the firms have to reduce their price by offering discount.
(ii) Product cost: The Price is fixed after calculating the total cost. In case of high competition and to capture big share if firm has to fix low price then at least the price must cover variable cost and fixed cost can be ignored for some time .
(iii) Customer ‘s demand and utility: when demand of the product is inelastic i.e. no or very less substitutes are available then company can fix up high price.
Whereas when demand is elastic i.e. more substitutes are available then price has to be brought down.
(iv) Market method used : If company is using intensive advertising to promote the sale of product then it will charge high price. Other marketing methods which affect price of a product are type of packing, distribution system, salesman, employed, customer support services etc.
Question: It is necessary that goods and services must be made available to the customer at the right place, in the right quantity and at the right time.
a) Name and explain the concerned element of marketing mix given above.
b) Explain the components of this element.
Answer: (a) Name : Place/Physical distribution The physical handling and movement of goods from place of production to the place of distribution is referred to as physical distribution.
(b) Components of physical distribution/place
- Transportation: transportation means physical movement of goods from place to production to place where they are required.
- Warehousing: whatever is produced is not sold off immediately. Therefore every company needs to store the finished goods until they are sold in the market.
- Inventory control: inventory refers to maintenance of stock of goods. The inventory needs to be maintained so that goods can be supplied whenever demanded.
- Order processing: order processing means the time and steps involved between taking order form customer and delivery of goods as per order
Question: Which techniques of sales promotion is being referred to in the below given points:
(i) Free sample of shampoo pouch with a fairness cream.
(ii) Upton 50% off on most items.
(iii) Tooth brush free with Tooth Paste.
(iv) Buy 3 packs of 2 litre juice and get another free.
(v) Scratch the card and dial a number to win a car.
Answer: (i) Product Combination
(iii) Product combination
(iv) Quantity deal
(v) Scratch a card
Question: What do you mean by ‘ channels of distribution ‘? What functions do they play in the distribution of goods and services? Explain .
Answer: Channels of distributions are the firms and individuals who help in transferring the goods from place of manufacturing to place of consumption. The common type of channels of distributions is whole seller and retailer.
Functions of distribution channels –
- Sorting/ grading : Middlemen produce goods from various manufacturers and then they do sorting, i.e., repack them according to quality, size or price.
- Accumulation : Middlemen maintain a large stock of goods so that there is smooth supply of goods without any delay.
- Variety/ assortment : Middlemen maintain variety of goods. They procure goods from various manufacturers and assemble them at one place so that customer can fulfill his requirement by visiting one place only.
- Packing : Generally middlemen buy the goods in bulk and then they repack them in small lots of examples, wholesaler buy bags of 100kg wheat and then repack it in the convenient pack Rs. 2 of 5kg or 10kg.
Question: Distinguish between advertising and personal selling.
|S.No.||Point of Difference||Advertising||Personnel selling|
|1.||Form||It is impersonal form of communication||It is an personal form of communication|
|2.||Cost||Cost per person is less as at it covers larger number of people||Cost per person is high as at a time limited members can be contacted.|
|3.||Coverage||Covers market is short time.||Takes long time to cover market.|
|4.||Feedback||No direct feedback can be obtained||Direct feedback can be collected by salesman.|
Question: Shyam bought a pain relieving ointment after seeing it being displayed in the chemist’s shop . the ointment tube was packed in a cardboard box. Identify the different levels of packaging of the pain relieving medicine, when it was purchased by Shyam. Also state the functions of packaging.
Answer: Different levels of packaging of the pain relieving medicine are :
Ointment tube : Primary Packaging
Cardboard Box : Secondary Packaging
Functions of packaging :
- It helps in product identification.
- It helps in protection of the product from spillage, breakage, leakage damage etc.
- It facilitates use of the product to the consumer through appropriate sizes and shapes .
- It helps in promotion of the product as a good package attracts the attention of the people at the time of purchase.
Question: “ Bhuvan ,who was a vegetarian went to snack bar for having French fries and later found out that it had non vegetarian content. Neither the advertisement nor the packaging of the product displayed that the product has non – vegetarian content. Will Bhuvan be able to claim compensation, which right of the consumer is violated “?
Answer: Bhuvan will be able to claim the compensation as the seller has violated the right to information according to the right .
Other rights of consumer :
- Right to safety : According to this right the consumer have the right to be protected against the marketing of goods and services which are hazardous to life and property.
- Right of Heard or right to Representation: According to this right the consumer has the right to represent himself or to be heard or right to advocate his interest.
- Right to seek Redressal: According to this right the consumer has the right to get compensation or seek redressal against unfair trade practices or any other exploitation.
- Right to consumer education: According to this right it is the right of consumer to acquire the knowledge and skill to be informed to customers.
Question: Distinguish between the Redressal Agencies available to consumer under the consumer protection Act 1986 .
|Basis||District||State commission||National commission|
|1. composition||It consists of a president and two members; One of the member has to be a woman||It consists of a president and not less than two other members; one of the member has to be as woman||It consists of a president and at least four other members and one of the member has to be a woman|
|2. who can be a president||A working or retired Judge of District court.||A working or retired Judge of High court.||A working or retired Judge of Supreme court.|
|3. Appointment of president||The president is appointed by the state government on the recommendation of the selection committee.||The president is appointed by the state government after consultation with the chief Justice of High court.||The president is appointed by the central government after consultation with the chief Justice of India.|
|4. Jurisdiction||Entertain complaints where value of goods or services does not exceeds Rs. 20 lakhs.||Entertain complaints when the value of goods and services exceeds Rs. 20,00,000 and up to Rs. 1 crore.||Entertain complaints where value of goods and services exceeds Rs. 1 crore.|
Question: Radha found a worm crawling out of newly opened tetra pack of a juice manufactured by a reputed , Zest , Ltd. .. She went back to the shopkeeper from whom the pack was purchased who directed her to call up the customer care centre. When all her efforts failed, she went to a customer activist group to seek help. The group decided to help Radha and take measures to impose restrictions on the sale of the firm’s products of the particular batch and urge customer to refrain from buying the products of the company. Zest Ltd. lost its image in the market. The CEO gives the responsibility of bringing back the lost image of the company to a Manager.
(i) Identify the concept of Marketing Management which will help the manager getting the firm out of the above crisis.
(ii) Also explain the role of above identified concept by stating any two points.
Answer: (i) Public relations
(ii) Role of public relation : –
- Press Relations : The public relation department is in contact with the media to present true facts and a correct picture about the company. Otherwise needs can be distorted if taken from other sources. This department present the information in a positive manner is the press.
- Product publicity: The public relations department makes special efforts to publicize the new products. This department manages sponsoring of such events. They arrange sports and cultural events, new conferences, seminars and exhibition.
- Counseling: The public relations department advises the management on general issues which affect the public. The company can build goodwill by contributing money and time for certain like, environment, children’s, education, wildlife etc.
Long Answer Type Questions:
Question: Explain four P’s of marketing mix?
What is meant by marketing mix ? explain different elements and components of marketing mix.
Answer: Marketing mix are the set of marketing tools that firm uses to pursue its marketing objectives in the target market .
The four main element of marketing mix as classified by MCcarthy are :
3. Place/physical Distribution
1. Product: The product mix refers to important decisions related to the product such as quality of product, design of product , packaging of product ,packing of product, etc. Another important thing included in product mix is product assortment. It refers to number of product an items a particular producer offers to the market.
Important components of Product mix –
(i) Branding :A brand is the identification of a product. It can be in the form of a name, symbol, or design etc. The branding is not only done to identify the seller or producer but also to make your product superior than competitor’s product.
(ii) Packaging: The company always supply the products in packaged form for example, coke comes in bottle, Tide in bag, Biscuits in Wrapper , Oil in jar etc.
(iii) Labeling: Labeling means putting identification marks on the package. Label is the carrier of information
2. Price: Price is normally expressed in monetary terms. It is the worth of a product or service monetary terms. It is monetary sacrifice which a buyer makes when he buy something.
Price may be called by different names for examples , price of education is tuition fees , price for using road etc, is toll, price for job is salary, price for apartment is rent etc.
Price mix refers to important decisions related to fixing of price of a commodity. These decisions can be related to price of competitors, decisions related to demand , decisions related to fixing cost , etc.
3.Place / physical Distribution: Place refers to the set of decisions that need to be taken in order to make the product available. If the product are not available to the customers at the right place at the right time then customer would not be able to buy them. Place element is a process by which the goods are transferred from the place of production to the place of consumption.
Place mix refers to important decisions related to physical distributions of goods and services. These decisions are deciding the channel of distribution, market for distribution etc place mix include :
(i) channels of distribution
(ii) physical movement of goods.
4. Promotions: It refers to all the decisions related to promotions of sales of products and services. The important decisions of promotion mix are selecting advertising media, selecting promotional techniques, using publicity measures and public relations etc.
There are various tools and element available for promotion. These are adopted by firms to carry on its promotional activities. The marketer generally chooses a combination of these promotional tools.
Following are the tools or elements of promotion. They are also called elements of promotion mix –
(ii) Sales promotion
(iii) Personal selling
(iv) Public relations
Question: Recently, Prices of perfumes, which are one of the major ingredients of agarbattis, have gone up substantially. Since there is keen competition in the agarbatti market, no manufacturer increased the price of agarbattis. In turn, most of the manufacturer opted to reduce the quantity of perfumes in agarbattis to cut their cost of production. This has resulted in decreased quality of agarbattis though their prices have not changed. In order to overcome this problem, Garden Ltd. introduced a new set of agarbattis under the brand name Khusbhoo. Khusbhoo agarbattis captured the agarbattis market very quickly.
(i) Identify the product – related issue involved in the above case and explain its three functions.
(ii) Mention three features of that concept.
Answer: (i) Branding Functions :
- Helps in Product Differentiations: With branding marketer can differentiate his products from the competitor’s product.
- Helps in Advertising: With the brand name advertising become most effective as it not only makes people aware about the features of product but also about brand which can provide these benefits.
- Differential pricing: With established brand name the firm can easily change high price for its product as compared to competitor’s product
(ii) Qualities/Features of Branding :
- Brand name should be short and simple. For example, Lux, Dettol, Surf, etc. As long and complicated names are difficult to recognize and remember .
- Brand names should be easy to pronounce as if it is difficult to pronounce the customer will hesitate to demand for it e.g. product names like Heinz etc. are difficult to pronounce.
- Brand name should be suggestive i.e. it must suggest the utility of the product for example, Hajmola suggests digestive property, Ujala suggests brightness, Hair and care suggests care of hair ,etc.
- The brand name should be unique and distinctive . The brand name should be very different and should not lose its identity for example, Ariel, Tide, etc.