CBSE Important Questions Class 12 Business Studies Chapter 11

Important Questions Class 12 Business Studies Chapter 11

Important Questions for CBSE Class 12 Business Studies Chapter 11 – Marketing

Important Questions Class 12 Business Studies Chapter 11 are prepared by subject experts referencing the revised CBSE textbook. It is recommended that you repeatedly practise the Chapter 11 Class 12 Business Studies Important Questions to master your chapter concepts. 

Learning these Business Studies Class 12 Chapter 11 Important Questions will help you confidently and accurately answer any questions from the main topics of Chapter 11 of Class 12 Business Studies in the exam. 

Topics Covered in Business Studies Chapter 11 Marketing

• Introduction to Marketing
• Features of Marketing
• Marketing Management
• Marketing Management Philosophies (The 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)
• Advertising
• Labelling
• Pricing
• Physical Distribution
• Promotion
• Advertising
• Personal Selling

CBSE Class 12 Business Studies Chapter-11 Important Questions

Study Important Questions for Class 12 Business Studies Chapter – 11 Marketing

You can view some of the important questions for Class 12 Business Studies Chapter 11 given below. 

Very Short Answer Questions (1 or 2 Marks)

Q1. Name the concept of marketing that pays attention to the social, ethical and ecological aspects of marketing along with consumer satisfaction.

Ans: Marketing as a social concept.

Q2. How does labelling act as a silent salesman?

Ans: Labelling acts as a silent salesman, assisting in product promotion by attracting clients’ attention and providing necessary information.

Q3. Identify the marketing function in charge of the critical inventory management decision. Ans: The ‘Physical Distribution’ marketing function is linked to the critical inventory management decision.

Q4. A TV manufacturing company is spending a substantial amount of money to persuade the target customers to buy its T.V. sets through advertisements, personal selling, and sales promotion techniques. Determine which component of the marketing mix is being discussed.

Ans: A “promotional mix” refers to a combination of promotions.

Q5. From producer to retailer to consumer, identify the type of channel of distribution.

Ans: Channel with only one level.

Q6. Name the function of marketing that is concerned with the cost and location of the target market.  

Ans: The function “transportation” is concerned with the target market’s cost and location.

Q7. Name the marketing function which is concerned with informing the customers about the firm’s products.             

Ans: The marketing function of promotion is focused on alerting clients about a company’s products.

Q8. Why is “marketing” referred to as a social process?

Ans: Marketing is referred to as a social process because today’s organisations work according to the needs and desires of their target market. A corporation that adopts the societal notion must strike a balance between profitability, customer pleasure, and societal interests.

Q9. Mansi took her niece, Ridhima, shopping at ‘Mega Stores’ to buy her a bag for her birthday. She was delighted when, on payment for the bag, she got a pencil box along with the bag free of cost. Identify the technique of sales promotion used by the company.

Ans: The sales promotion technique employed by the company is ‘Product Combination’.

Q10. Sunita took her niece, Aishwarya shopping at ‘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 for 20% off for a meal of Rs 500 or more at a famous eating joint. Identify the technique of sales promotion used by the company in the above situation.                               

Ans: The sales promotion strategy employed by the company is ‘Usable Benefits’.

Short Answer Questions (3 or 4 Marks)

Q1. Ajay was appointed as the marketing head of “Alfa Enterprise’ a manufacturer of toothpaste and toothbrushes. His target sale was 2,000 units a month. Apart from thinking about various channels of distribution to achieve the target, he started visiting schools in underdeveloped areas. He found that even after taking various steps and receiving counselling, some of the schoolchildren did not brush their teeth. He investigated and found that they could not afford to buy toothbrushes and toothpaste. So with due permission, he started donating 200 toothbrushes and toothpaste every month to the school.

1. Identify the channel of distribution Ajay would adopt the distribution of toothpaste and toothbrushes and justify it by giving one reason.

Ans: Ajay should go with the zero-level distribution method. This is because he may directly market to schoolchildren and establish a direct relationship with them.

1. State any two values that Ajay wants to communicate to society.

Ans: Ajay wants to incorporate the following values in society:

1. Instilling sanitary and healthful practises in schoolchildren
2. Fulfilment of a company’s social obligation.

Q2. Some characteristics should be kept in mind while choosing a brand name. Explain any two such characteristics that a good brand name should have.

Ans: One should consider the following while choosing a good brand name:

1. The name should be short, and simple to pronounce, spell, recognise, and remember.
2. It must also include the product’s advantages and features.

iii. The name should be unique and stand out from the competition. 

1. It should be adaptable to diverse packaging or labelling needs, as well as different advertising media and languages.
2. The name should be versatile, allowing for the addition of additional items.
3. A product’s brand name must be legally registered and protected.

Q3. Crackers Ltd., a firecracker-manufacturing company, launched some new products on the eve of Diwali, which attracted many buyers. To meet the increased demand, the company employed children from nearby villages. Although the product was in great demand, appropriate safety warnings for use were not mentioned on the packets, which led to many accidents. 

(i) Identify and explain the important product-related decision that was not taken into consideration by the company. 

Ans: The delivery of product information in the form of a tag and graphic on the product’s package is referred to as labelling. It describes the product and its components, as well as other important information such as the precautions to be taken when using it and how to use it. The manufacturer did not provide adequate instructions for using crackers, which could lead to mishaps.

(ii) Also, identify any two values that were violated by the company. 

Ans: The company’s values were violated in the following ways:

(a) Employing children, which is against the child labour law, and

(b) Failing to protect consumer safety.

Long Answer Type Questions (5 or 6 Marks)

Q1. There are several factors that affect the fixation of the price of a product. Explain any four such factors.

Ans: The primary factors that influence price determination are as follows:

1. Product Cost: The most important factor influencing a product’s pricing is its cost. The product cost is the sum of all fixed, variable, and semi-variable expenses incurred during the manufacture, distribution, and sale of a product.
   1. Fixed costs are those that do not change at any point during production or sales. For example, building rent, salary, and so on. 
   2. Variable costs are costs that are directly related to production or sales levels. For example, raw material costs, labour costs, and so on. 
   3. Semi-variable costs vary in direct proportion to the amount of activity but not in direct proportion to the level of activity.
2. Utility and Demand: When a product’s price is low, consumers usually want more of it, and vice versa. However, when demand for a product is elastic, a small change in price can result in significant changes in the quantity demanded. When demand is inelastic, a change in pricing has little effect on demand. Inelastic demand enables a company to charge higher prices. Moreover, the customer is willing to spend up to the point at which (s)he believes the utility of the product is at least equal to the price paid. As a result, the price of a product is affected by both its utility and demand.
3. Government and Legal Regulations: Monopolistic businesses in the market typically charge a premium for their products. The government intervenes and regulates commodity pricing to protect the public’s interests. As a result, it classifies some items as essential, such as life-saving medications.
4. Marketing Techniques Used: Different marketing strategies, such as the distribution system, salesperson quality, promotion, type of packaging, customer service, and so on, affect the price of a product. For example, if a company uses high-priced materials to package its products, it will charge a premium.

Q2. Explain the following functions of marketing:

(i) Gathering and analysing market information

Ans: A marketer examines the current market trend and seeks out the greatest opportunities. This includes obtaining information about the target market sector’s size and behaviour, culture, and customer needs and wants.

(ii) Marketing planning

Ans: Marketing planning is the process of developing a marketing strategy to achieve an organisation’s marketing goals and objectives. Market research is conducted to determine client preferences and develop an appropriate strategy.

(iii) Customer support services

Ans: Customer support services include handling complaints and feedback from customers. Credit, maintenance, technical services, consumer information, and other forms of customer support are in the works. These customer services are provided to attract customers and convert them into long-term customers of the company’s products.

(iv) Physical distribution

Ans: The channels of distribution by which products are conveyed from the point of production to the point of consumption must be determined. It is vital to choose an appropriate distribution channel since an ineffective distribution channel might increase the price or deteriorate the quality of the product.

Q3. Though advertising is one of the most frequently used mediums for the promotion of goods and services, it attracts a lot of objections. Explain any of these objections.

Ans: There are many different perspectives on advertising spending. On one hand, it is regarded as a social waste because it raises manufacturing costs, reduces social values, and broadens consumer requirements and desires. On the other hand, it is regarded as advantageous because it helps to increase sales and earnings.

Here are some reasons why advertising is a waste of money for businesses:

1. Higher Cost: Advertising costs contribute to the cost of the product and the firm, which is then passed on to customers in the form of higher pricing.
2. Creates Confusion: When a large number of comparable products are advertised, it is said that the consumer is frequently confused. Those who support commercials, on the other hand, claim that they help consumers understand the wide range of products available on the market. As a result, their options expand, and they can make more informed decisions about the products they want to buy.
3. Promotes Substandard Products: Advertisements persuade customers to purchase the product. Even low-quality products can be advertised and persuaded to sell. Quality, on the other hand, is regarded as a highly subjective concept. Advertisements inform consumers about a variety of products. Consumers must decide whether or not to purchase the product.
4. Offensive advertisements: Advertisements can be offensive in the sense that they undermine social values on occasion. Women, for example, are portrayed negatively in some commercials. Advertisements’ language, graphics, and content may not always be appealing to society.