In this question paper, Class 12 Business Studies Chapter 11 - Marketing solved by expert teachers as per NCERT (CBSE) Book guidelines.

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Questions:

1 Marks

7 x 1 = 7

What is the person who maintain public relations called?

State one limitation of sales promotion.

State two functions of labelling.

What is 'brand name'?

Name the philosophy of marketing, which is an extension of marketing concept?

Define the term market in traditional sense.

What do you mean by marketing?

Generic 4

7 x 4 = 28

Differentiate between marketing and selling on any three basis.

'Buy three shirts and get one free' is an example of one of the techniques of sales promotion. Identify and explain the technique.

10.

'Advertising is often deceptive and misguides consumers'. Do you agree? Give reasons in support of your answer?

11.

Explain any three merits of packaging.

12.

Discuss in brief the concept of marketing mix.

13.

What is meant by selling concept of marketing?

14.

How does marketing help a firm to build its product image in the market?

Generic 6

3 x 6 = 18

15.

Differentiate between marketing and selling on any five basis.

16.

Identify the method of sales promotion in the following cases:
(i) A mobile company offers a discount of Rs.1000 to clear off inventory.
(ii) A customer gets RS.5 off on return of an empty wrapper while making a new purchase of the same product.
(iii) A company offers a pack of 1/2 kg of sugar with the purchase of 5kg bag of wheat flour.
(iv) Scratch a card and get a gold coin with the purchase of a cold drink.
(v) A company offers 40% extra shaving cream in a pack of 500 gms.
(vi) Purchase goods worth RS.50000 and get a holiday package worth RS.10000 free.

17.

Mention/state the five philosophies, by which the marketing efforts be guided. Also differentiate between them on the following basis.
(i) Starting point.
(ii) Means.
(iii) Main focus.
(iv) Ends.

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Answers Key:

1 Marks

7 x 1 = 7

()
Public Relations Officer (PRO).

()
Excessive use of sales promotion may spoil the image of the product.

()
Two functions of labelling are:
(i) To identify a product.
(ii) To promote a product.

()
It refers to that part of a brand, which can be spoken. e.g. Uncle Chips.

()
Social marketing concept.

()
In modern marketing sense, 'market' refers toa set of actual and potential buyers of a product or service.

()
According to Philip Kotler, marketing is a social process by which individual groups obtain what they need and want through creating offerings and freely exchanging products and services of value with others.

Generic 4

7 x 4 = 28

Difference between selling and marketing

Basis	Selling	Marketing
Scope	It has a limited scope. It is concerned with transfer of ownership of goods from the sellers to the buyers through promotion and salesmanship. Thus, it is just a part of marketing.	It has a wider scope. It is concerned with identifying customer's needs, developing the product, pricing, selling and providing after sales services to satisfy the customers.
Focus	It focuses on transferring the title and ownership of goods from seller to the buyer.	It focuses on maximum satisfaction of customer's needs and wants.
Aim	It aims at maximising the profit by increasing sales.	It aims at increasing profit by satisfying the consumers.

It is an example of quantity gift. In order to clear off excess inventory, company generally offers extra quantity of the product to enhance the sale or to clear the stock e.g. a shaving cream offers '40% Extra' or a marketer of shirt offers 'Buy three get one free'.

10.

Yes, as exaggerated and false claims are made in the advertisements and a consumer often believes the same and faces the following drawbacks of products:
(i) It encourages sale of inferior goods.
(ii) An advertisement confuses the buyers.
(iii) It spreads false and misleading information.

11.

Merits of packaging are:
(i) Self-service outlets Packaging acts as a 'silent salesman' in Self-service outlets by providing detailed information about the product.
(ii) Rising standards of health and sanitation Because of increasing consciousness about health and sanitation, people now prefer to buy packaged goods.
(iii) Product differentiation Packaging helps to create differentiation amongst products on the basis of different colour, size and material of the package.

12.

Marketing management decisions are based on a number of controllable and non-controllable factors.

Controllable factors are those which can be influenced at the level of the firm. e.g. price of the product, packaging decision, physical distribution, etc. However, there are certain factors which are beyond the control of the firm.

These are called non-controllable factors or environmental factors. e.g. rate of inflation, credit policy of banks, competition, etc.

Therefore, controllable variables become marketing tools, which are constantly shaped and reshaped by marketing managers to achieve marketing objectives.

The combination of variables chosen by a firm to prepare its market offering, is called marketing mix.

The main components of marketing mix consists of the four P's viz product, price,place and promotion.

13.

Firms must undertake aggressive selling and promotion efforts to make customers buy what is offered to them. The fundamental assumption in this concept is that customers can be lured, coaxed and persuaded into buying. It holds that customers if left alone would not buy or not buy enough of a firm's products. Firms practising selling concept rely upon the power of advertising and other persuasion techniques to influence customers. The selling concept can be summed up in the statement 'selling what you have'. Thus, the focus here is on pushing products onto the customers by hook or by crook. The primary intention of the seller is to somehow convert goods into cash.

14.

By selling a product or service at a reasonable price and of a standard quality, the firm tries to earn a name for itself and build a position of its product in the market. Marketing, basically aims at building the reputation of the firm through various image building activities i.e. popularising products supported by advertising, reasonable price, high quality, convenient outlets, after sale service,etc.

Generic 6

3 x 6 = 18

15.

The differences between marketing and selling are (any five)

Basis	Marketing	Selling
Scope	It is a wider term and includes selling also. It covers all the activities concerned with identifying and satisfying the wants of the customers.	It is only a part of marketing process. It is limited to exchange of goods or services for some consideration.
Focus	It focuses on the needs of customers.	It focuses on transfer of title of goods from sellers to buyers.
Objective	It aims to earn profits through customer satisfaction.	It aims to maximise profit through increase in sales volume.
Start and end	It starts much before production and continues even after sale.	It starts after production and ends with the sale of product.
Strategy used	It involves strategies like product promotion, pricing and distribution.	It involves efforts like promotion and persuasion for selling the product.
Emphasis	It emphasises on development of product according to customers' needs.	It emphasises on bending the customers according to product.

16.

(i) Rebate
When the products are offered at special, reduced prices, usually to clear off excess inventory, it is called rebate. e.g.
RS.20000/- off on the purchase of Honda City till 25th December, 2014.
(ii) Refunds
It refers to the act of refund of a part of price paid by customer on return of empty wrappers or presenting a proof of purchase of product.
(iii) Product combinations
Offering a product along with another product is called product combination. e.g. buy a cell phone and get a sim card free, buy Maggie ketchup and get Maggie Noodles free, etc.
(iv) Instant draws
It is a technique in which the buyer is given a chance to 'scratch a card' or 'instantly draw a coupon' to win an assured gift immediately.
(v) Quantity gift
Sellers devise special packages, which gives extra quantity of the product to the buyers at less price or price, e.g. 'Buy two get one free' available offer on pears soap, 30% extra on dettol liquid soap, etc.
(vi) Usable benefit
It is technique in which a benefit is offered to the consumer on fulfilling some condition of purchase of the product. e.g. purchase of 200 or more, to its customers, which entitles them to win exciting prizes like car, LCDs etc.

17.

Marketing philosophies are:
(i) Production concept.
(ii) Product concept.
(iii) Selling concept.
(iv) Marketing concept.
(v) Societal marketing concept.
Difference between different marketing philosophies

Basis	Production concept	Product concept	Sales/Selling concept	Marketing concept	Societal marketing concept
Starting point	Factory.	Factory.	Factory.	Market.	Market, society
Main focus	Quantity of product.	Quantity, performance and features of product.	Exsisting product.	Customer needs	Customer needs and society's well being.
Means	Availability and affordability of product	Product improvements.	Selling and promoting.	Integrated marketing.	Integrated marketing.
Ends	Profit through volume of production.	Profit through product quality.	Profit through sales volume.	Profit through satisfaction.	Profit through customer satisfaction and social welfare.