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Marketing – Class 12 Business Studies notes, important questions and MCQs

NCERT Class 12 Business Studies, chapter 11. Notes, key terms, important questions with answers and MCQs.

Chapter overview

Marketing is a social process by which individuals and groups obtain what they need and want through creating and exchanging products and value. It includes identifying needs, developing products, pricing, distribution and promotion. The marketing mix of product, price, place and promotion (the 4Ps) is used to satisfy customers. Marketing philosophy has evolved from production and selling concepts to the marketing and societal marketing concepts.

Marketing concepts and functions

Production concept (availability and low price), product concept (quality), selling concept (aggressive selling), marketing concept (customer satisfaction) and societal marketing concept (customer satisfaction with social welfare).
Functions: gathering market information, marketing planning, product designing and development, standardisation and grading, packaging and labelling, branding, customer support services, pricing, promotion, physical distribution, transportation and storage.

Product and price

Products are classified as consumer products (convenience, shopping and speciality) and industrial products.
Branding gives a product a name or symbol; packaging protects and promotes it; labelling gives information such as price, ingredients and expiry date.
Price is affected by product cost, utility and demand, extent of competition, government regulations, pricing objectives and marketing methods.

Place and promotion

Channels of distribution: zero level (direct, manufacturer to consumer), one level (through retailer), two level (wholesaler and retailer) and three level (agent, wholesaler and retailer).
Physical distribution includes order processing, transportation, warehousing and inventory control.
Promotion mix: advertising (paid, impersonal), personal selling (face-to-face), sales promotion (short-term incentives such as discounts and free samples) and public relations (building goodwill).

Key terms

Marketing: the process of identifying and satisfying customer needs through exchange of products and value
Marketing mix: the combination of product, price, place and promotion used to market a product
Societal marketing concept: a philosophy of satisfying customers while protecting the long-term interests of society
Channel of distribution: the route through which goods move from producer to consumer
Sales promotion: short-term incentives to encourage purchase, such as discounts and free gifts

Important questions with answers

Distinguish between the selling concept and the marketing concept.2 marks

The selling concept focuses on the product and aims at maximising sales through aggressive selling and promotion; it starts with the factory and seeks profit through sales volume. The marketing concept focuses on customer needs and aims at profit through customer satisfaction, using integrated marketing; it starts with the market and designs products to meet customer needs.

What are the functions of packaging?3 marks

Packaging protects the product from damage, spoilage and contamination; it helps in product identification; it adds convenience in handling and use; it promotes the product through attractive design and acts as a silent salesman; and it can provide information to customers.

Explain the elements of the marketing mix.5 marks

The marketing mix is the set of controllable variables that a firm uses to influence customers' response, commonly called the 4Ps. Product refers to the goods or services offered, including decisions on features, quality, branding, packaging, labelling and after-sales service; it may be a consumer product such as a convenience, shopping or speciality product, or an industrial product. Price is the amount customers pay for the product; it depends on the cost of production, utility and demand, competition, government regulation, pricing objectives and marketing methods, and the firm may use strategies such as discounts or credit terms. Place refers to the activities that make the product available to customers, including the choice of channels of distribution, from zero-level direct selling to three-level channels using agents, wholesalers and retailers, and physical distribution through order processing, transportation, warehousing and inventory control. Promotion refers to communicating with customers to persuade them to buy, through the promotion mix of advertising, personal selling, sales promotion and public relations. A suitable combination of the 4Ps helps a firm satisfy customers and achieve its objectives.

Quick revision

Concepts: production, product, selling, marketing, societal.
4Ps: product, price, place, promotion.
Branding, packaging, labelling.
Channels: zero, one, two, three levels; promotion mix.

Exam tips

Remember the 4Ps and give one decision under each for a familiar product.
Compare the selling concept and marketing concept on focus, means and ends.

Practice MCQs

The 4Ps of the marketing mix are product, price, place and
1. people
2. planning
3. profit
4. promotion
Show answer
Answer: (d) promotion. Promotion communicates with customers.
Paid, impersonal communication through media is
1. personal selling
2. advertising
3. sales promotion
4. public relations
Show answer
Answer: (b) advertising. It reaches a large audience.
Selling directly from manufacturer to consumer is a
1. two-level channel
2. one-level channel
3. zero-level channel
4. three-level channel
Show answer
Answer: (c) zero-level channel. There are no middlemen.
The concept that focuses on customer satisfaction along with social welfare is the
1. selling concept
2. production concept
3. societal marketing concept
4. product concept
Show answer
Answer: (c) societal marketing concept. It considers long-term social interest.
Giving information such as price and expiry date on a product is
1. branding
2. advertising
3. grading
4. labelling
Show answer
Answer: (d) labelling. The label informs customers.
Free samples and discount coupons are examples of
1. advertising
2. personal selling
3. public relations
4. sales promotion
Show answer
Answer: (d) sales promotion. They are short-term incentives.
Which concept assumes customers will not buy enough unless persuaded through aggressive selling
1. marketing concept
2. societal marketing concept
3. selling concept
4. product concept
Show answer
Answer: (c) selling concept. The focus is on selling existing products.
Products such as soap and toothpaste, bought frequently with little effort, are
1. speciality products
2. convenience products
3. shopping products
4. industrial products
Show answer
Answer: (b) convenience products. They are widely available.

All chapters of Class 12 Business Studies

Written by Kundali IQ from standard, well-established facts to help with revision. This is not an official NCERT publication; always read your textbook too.