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NCERT Solutions For Class 12 Business Studies Chapter 10 Marketing - 2025-26

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Marketing Class 12 Questions and Answers - Free PDF Download

Understanding financial markets is central to Class 12 Business Studies and your board exam success. In Chapter 10, you’ll master NCERT Solutions tailored for core commerce questions, helping you clarify key differences between money market and capital market, as well as learn the trading procedure in stock exchanges. This focus is crucial since financial markets carry up to 15 marks in your CBSE paper alongside Marketing Management.


If you need “business studies class 12 pdf” or are searching for clear distinctions between money market vs capital market, you’re in the right place. Here, stepwise solutions cover board-centric concepts like role of financial markets and function of SEBI, using simple, exam-ready points so you can approach ‘explain with example’ questions with confidence.


All solutions are mapped to the latest Class 12 Business Studies syllabus and prepared by Vedantu’s expert educators for reliable revision. For easy access to more chapters, explore Class 12 Business Studies NCERT Solutions or check the CBSE Class 12 Business Studies syllabus for updated topic coverage.

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Access NCERT Solutions for Class 12 Business Studies Chapter 10 – Marketing

```html 1. Explain the advantages of branding to marketers of goods and services.
Ans: Branding helps marketers in several ways:
  • It sets a product apart from others in the market.
  • Makes advertising easier since only branded products can be advertised.
  • Encourages customer loyalty and allows the business to charge different prices.
  • Makes launching new products under the same brand easier due to brand reputation.


2. List the characteristics of a good brand name.
Ans: A good brand name should:
  • Be short, simple, easy to say and remember (e.g., Ponds, Rin).
  • Suggest the product’s benefit or use, like Boost or Fair & Lovely.
  • Be unique and still work for packaging and ads in various languages.
  • Allow for new products to be added under the same name.
  • Be distinct and able to be legally protected.


3. What is the societal concept of marketing?
Ans: The societal concept says businesses should not only meet current customer needs, but also consider long-term well-being. Besides customer happiness, companies must aim for social, ethical, and ecological goals like reducing pollution and caring about resource use.

4. List the characteristics of convenience products.
Ans: Convenience products are those bought regularly with little effort. They are:
  • Easy to find and quick to buy.
  • Bought often and always in demand (like basic needs).
  • Sold in small, low-priced quantities.
  • Face high market competition so require lots of advertising.


5. Enlist the advantages of packaging of a customer product.
Ans: Good packaging:
  • Helps customers recognize the product.
  • Acts as a marketing tool by attracting buyers with colors and designs.
  • Makes handling and storing easier.
  • Protects against damage and spoilage, especially during transport and storage.


6. What are the limitations of advertising as a promotional tool? Enlist.
Ans: Advertising has some drawbacks:
  • No personal touch, so less persuasive.
  • Hard to measure results or impact.
  • Messages can't be changed for different customers easily.
  • Customers may ignore ads due to too many of them.


7. List five shopping products purchased by you or your family during the last few months.
Ans: The shopping items bought include:
  • Clothes
  • Jewelry
  • Television
  • Shoes
  • Household goods


1. What is marketing? What functions does it play with the process of exchange of goods and services? Explain.
Ans: Marketing is when buyers and sellers meet to buy and sell goods or services.
  • It includes all activities from planning, designing, packaging, warehousing, branding, transporting, pricing, and distributing products.
  • Also includes customer service and gathering feedback, even after the sale.
  • Marketing helps make sure goods and services reach consumers smoothly.


2. Distinguish between the product concept and production concept of marketing.
Ans:
Basis Product Concept Production Concept
Focus Product features, quality, and innovation Availability and affordability of goods
Assumption Customers prefer the best quality products Customers buy products that are available and cheap


3. Product is a bundle of utilities? Do you agree? Comment.
Ans: Yes, a product is a bundle of utilities because buyers look for a mix of benefits:
  • It offers functional utility, like a car for travel.
  • Also gives psychological utility, like pride or social acceptance.
  • So, all such utilities combine to form the product’s value in the consumer’s mind.


4. What are industrial products? How are they different from consumer products? Explain.
Ans: Industrial products are used as inputs to make other goods, such as machines or tools; consumers do not use them directly.
  • Consumer products are bought for personal use, like toothpaste and furniture.
  • Industrial products act as raw materials for other goods, not for direct consumption.


5. Distinguish between convenience products and shopping products.
Ans:
Basis Convenience Products Shopping Products
Frequency of Purchase Bought often, with little thought Bought less often, after comparison
Effort Invested Minimum effort needed More time and effort in choosing
Examples Toothpaste, soap Clothes, electronics


6. 'Products is a mixture of tangible and intangible attributes'. Discuss.
Ans: Products are not just about what you can see or touch. There’s more to them:
  • Tangible elements: The product’s look, feel, or features, like a laptop’s size or speed.
  • Intangible elements: Brand name, guarantee, reputation, or social recognition that come with the product.
  • People buy products for both kinds of benefits, so both are important in marketing.


7. Describe the functions of labelling in the marketing of products.
Ans: Summary: Labelling gives information, helps with recognition, standardization, promotion, and legal compliance.
  • Provides usage details and warnings (e.g., ingredients, age restrictions).
  • Helps customers identify and distinguish a product (e.g., brand name, logo, weight, price).
  • Shows grade or category (like oily skin/dry skin labels for face creams).
  • Attracts buyers by highlighting features and promoting (slogans or taglines).
  • Makes sure required legal information is provided (e.g., health warnings).


8. Discuss the role of intermediaries in the distribution of consumer non-durable products.
Ans: Summary: Intermediaries help move non-durable goods from manufacturer to consumer, making the process smooth and efficient.
  • Sort and group goods for better organization.
  • Keep a stock to assure continuous supply.
  • Repack and divide goods into smaller units suitable for sale.
  • Offer customers a variety of products in one place.
  • Promote products with banners and displays.
  • Negotiate between producers and customers.
  • Take on risks like unsold goods, damage, or price changes.


9. Explain the factors determining choice of channels of distribution.
Ans: Summary: The selection of distribution channels is influenced by product, company, competition, environment, and market features.
  • Product type: Perishable goods use shorter channels, durable or low-value items may use longer ones.
  • Company features: Strong finances and need for control suggest shorter channels.
  • Competition: Companies may follow or avoid competitors’ channel choices.
  • Environment: Legal and economic issues sometimes influence using shorter channels.
  • Market elements: Buyer location and demand size can affect channel length.


10. Explain briefly the components of physical distribution.
Ans: Summary: Physical distribution involves all steps to move goods from production to the end customer.
  • Order processing: Getting orders, maintaining inventory, and ensuring timely delivery.
  • Transportation: Moving goods to where customers are.
  • Warehousing: Storing goods until they’re sold, balancing speed and cost.
  • Inventory maintenance: Keeping enough products to serve customers on time.


11. Define advertising. What are its main features? Explain.
Ans: Advertising is a paid way to promote goods or services.
  • It costs money and is paid by the sponsor.
  • Impersonal, with no direct customer interaction.
  • Always has an identified sponsor who is responsible for it.


12. Discuss the role of 'sales promotion' as an element of promotion mix.
Ans: Sales promotion uses incentives like discounts, gifts, and free samples to encourage immediate sales.
  • Supports other promotional efforts, such as ads and direct selling.
  • Helps attract more buyers and boost sales temporarily.
  • Especially useful when launching new products.
  • Discounts, extra product offers (like ‘buy 2 get 1 free’), and free samples are common examples.


1. Define marketing. How is it different from selling? Discuss.
Ans: Summary: Marketing covers all actions to connect products to customers; selling is just about closing the sale.
  • Marketing includes planning, packaging, pricing, distributing, after-sales service, and more.
  • Selling focuses only on activities to get the product sold, like ads or publicity.
  • Selling is just one part of the bigger marketing process.


2. What is the marketing concept? How does it help in the effective marketing of goods and services?
Ans: Summary: The marketing concept means satisfying customer needs is key for a business’s success.
  • Focuses on identifying and meeting customer needs efficiently.
  • All marketing efforts target a specific group or segment of customers.
  • Products and services are made based on what customers want, not just what the company has.
  • Customer satisfaction helps businesses survive and stay ahead of competitors.
  • All decisions—like production, pricing, and branding—should consider customer needs.


3. What is marketing mix? What are its main elements? Explain.
Ans: Summary: Marketing mix refers to the main tools businesses use to market products successfully.
  • Product: Anything that satisfies a buyer’s need (goods or services), includes all features and after-sales service.
  • Price: What customers pay; it affects demand, so must be set right considering costs, competition, and customer perception.
  • Location (Place): Deciding how and where the product is available to buyers, including channels, stores, and logistics.
  • Promotion: Informing and persuading customers using advertising, discounts, and personal selling.
  • The company adjusts these elements as needed to achieve marketing goals.


4. What are the factors affecting the determination of the price of a product or service?
Ans: Summary: Setting the price depends on several factors that affect sales and profits.
  • Cost: Total expense in making, distributing, and selling the product (fixed, variable, and semi-variable).
  • Demand: How much buyers want the product, and its price sensitivity (elastic or inelastic demand).
  • Competition: More competition means prices must be lower to attract customers.
  • Government rules: Some products have a price ceiling set by law.
  • Objectives: Company goals may include maximizing profits, increasing market share, or surviving tough competition.
  • Marketing methods: Heavy promotion or customer service adds to costs, so prices may be higher.


5. What do you mean by channels of distribution? What functions do they play in the distribution of goods and services? Explain.
Ans: Summary: Channels of distribution are people/organizations that move products from producers to customers.
  • Sort goods by size, quality, and features (arrangement).
  • Keep enough stock for uninterrupted supply (collection).
  • Divide and pack goods into smaller, ready-to-sell packages (allocation and packing).
  • Bring many products together in one place (creating variety).
  • Promote products with ads or displays.
  • Negotiate between producers and consumers to settle price and quality (mediation).
  • Carry the risk of unsold goods and market changes.


6. Explain the major activities involved in the physical distribution of products.
Ans: Summary: Physical distribution covers the steps needed to deliver goods to buyers quickly and efficiently.
  • Order processing: Takes and delivers customer orders, making sure it’s fast and accurate.
  • Transportation: Moves goods from factory to customer location.
  • Warehousing: Stores products between manufacturing and sale, ensuring timely delivery.
  • Inventory maintenance: Keeps enough products available to meet demand without high holding costs.


7. Expenditure on advertising is a social waste' Do you agree? Discuss.
Ans: Summary: Some see advertising costs as wasteful; others argue it helps lower prices and informs people.
  • Raises costs, which may increase product prices, though selling more can reduce per-item cost.
  • Criticized for promoting materialism and “unneeded desires”, but it actually educates and informs buyers.
  • Can confuse buyers with lots of similar ads, but offers choice.
  • Promotes products of all qualities, as quality is a personal view.
  • Some find ad content offensive, but what’s bad taste varies from person to person.


8. Distinguish between advertising and personal selling.
Ans:
Basis Advertising Personal Selling
Method Faceless, paid communication Direct, face-to-face communication
Interaction No personal contact with customer Personal, two-way communication


1. As 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 to take care of these concerns? Discuss.
Ans: As a manager, societal concerns may include:
  • Environmental protection (rainwater harvesting, solar geysers, waste recycling).
  • Proper drainage and use of eco-friendly vehicles like CNG-powered ones.
  • Ensuring resources aren’t wasted and protecting the local ecosystem.


2. Suppose you are the marketing vice president of an insurance company, planning to design a new mediclaim policy for senior citizens. What information would you like to collect to perform this task and how will you collect such information? Discuss.
Ans: To design a mediclaim policy for seniors, collect:
  • Senior citizen’s age and income details.
  • Medical information and health conditions.
  • Work status (working/retired).
Methods: Use surveys, interviews, and health records to gather this data.

3. What shopping products have been purchased by you/your family in the last six months. Make a list and specify what factors influenced the purchase of each of these products.
Ans:
  • Washing Machine: Chosen by brand, price, specs, warranty.
  • Dress Material: Selected for cost and current fashion.
  • Cot Bed: Decided by price, quality, comfort, and design.
  • Sandal: Picked for price, brand, size, and material.


4. 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:
  • Product name, brand, price
  • Date of manufacture and expiry date
  • Weight, ingredients, and usage directions
  • Certifications like FPO mark and preservatives used
Label Example:
  • Product: Crunchy Bites Cereal
  • Brand: Healthy Eats
  • Net Weight: 500g
  • Price: ₹120
  • Ingredients: Wheat, sugar, honey, cocoa
  • Manufacturing Date: 05/05/2024
  • Expiry: Best before six months from manufacture
  • FPO mark: Yes
  • Preservatives: E211
  • Directions: Add with hot or cold milk. Store in a cool, dry place.


5. For buyers of consumer durable products, what ‘customer care services’ would you plan as a manager of a firm marketing a new brand of motorcycle. Discuss.
Ans:
  • Offer easy monthly payments and exchange offers.
  • Free servicing and extended warranty.
  • On-call customer support and help with registration.


Nokia takes a four-lane road to consumers.
Questions 1. Identify the four market segments that Nokia plans to address as per the news report above.

Ans: Live, Connect, Achieve, and Explore

2. What is the basis of classification of the market used by the company?
Ans: The basis is socio-economic class (SEC), usage pattern, and lifestyle.

3. What do you mean by realignment of product portfolio? Illustrate this from the case above.
Ans: Realignment means adjusting products to match customer needs. Nokia has tailored its handsets to fit the four segments—each group gets specific models made for their needs.

4. Identify the points that can be highlighted in marketing campaigns for each segment.
Ans:
  • Live: Affordable handsets and basic features for first-time users.
  • Connect: Extra functions like GPRS, camera, and music for regular users.
  • Achieve: Business tools, strong connectivity, and productivity for professionals.
  • Explore: Focus on lifestyle, latest tech, music, gaming, high-end features.


5. What are the different considerations in the mind of consumers of each segment while purchasing mobile phones as given in the above case?
Ans:
  • Live: Basic calling at a low price.
  • Connect: Desire more features (camera, internet) at moderate cost.
  • Achieve: Need business features, reliability, fast performance.
  • Explore: Want style, latest technology, entertainment options.


Important Learning Points from Marketing Class 12 NCERT Solutions (Chapter 10)

  • Marketing Class 12 covers branding, product types, and features of effective marketing.
  • It explains the marketing mix—product, price, place, and promotion—in simple steps.
  • Students understand the differences between marketing and selling with real examples.
  • Marketing questions and answers Class 12 help explain physical distribution and sales promotion.
  • This chapter highlights how channels of distribution and advertising affect business choices.
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FAQs on NCERT Solutions For Class 12 Business Studies Chapter 10 Marketing - 2025-26

1. How do you define a financial market in your NCERT solutions for Class 12 Business Studies?

A financial market is a marketplace for the creation and exchange of financial assets. As per the NCERT solutions, it performs a crucial economic function by channelling savings from households to business firms, facilitating the allocation of funds to their most productive use. It connects savers and investors by mobilising funds between them.

2. What is the correct way to differentiate between the money market and the capital market as per the NCERT textbook?

To differentiate between the money market and capital market in your NCERT solution, use these key points:

  • Term: The money market deals with short-term securities (maturity up to 1 year), while the capital market handles medium and long-term funds.
  • Instruments: Money market instruments include Treasury Bills, Commercial Paper, and Certificates of Deposit. Capital market instruments are Shares, Debentures, and Bonds.
  • Participants: The money market is dominated by the RBI, commercial banks, and large corporations. The capital market involves financial institutions, foreign investors, and the general public.
  • Risk: Money market instruments are generally less risky due to their short duration and financially sound issuers.

3. What are the key functions of a stock exchange that should be included in an NCERT-based answer for the 2025-26 board exam?

For a complete NCERT-based answer, the key functions of a stock exchange are:

  • Providing Liquidity and Marketability: It offers a ready platform for buying and selling existing securities.
  • Pricing of Securities: It helps determine prices through the constant interaction of demand and supply.
  • Safety of Transaction: The membership is well-regulated through the legal framework of SEBI, ensuring investor protection.
  • Contribution to Economic Growth: It channels savings into productive investments, fostering capital formation.
  • Spreading of Equity Cult: It educates the public about investing and provides a platform to participate.

4. How would you explain the role and objectives of SEBI step-by-step for a Class 12 NCERT exercise?

To explain the role of SEBI (Securities and Exchange Board of India) step-by-step as per the 2025-26 syllabus, you should structure the answer by its functions:

  • Regulatory Functions: These involve regulating the business of stock exchanges, registering and regulating intermediaries like brokers, and prohibiting fraudulent and unfair trade practices.
  • Developmental Functions: These include training intermediaries and promoting investor education to develop the securities market.
  • Protective Functions: These focus on protecting investor interests by prohibiting insider trading and promoting fair practices.

The primary objective of SEBI is to protect investors, promote market development, and regulate market activities.

5. Beyond just listing its functions, how does a financial market actually contribute to a nation's economic development?

Financial markets are more than just platforms for trade; they are engines of economic development. According to Chapter 10 concepts, they contribute by:

  • Mobilising Savings: They channel idle funds from savers to investors who need them for productive activities. This crucial process converts savings into investment and capital formation.
  • Facilitating Price Discovery: By allowing free interaction between buyers and sellers, they help establish fair prices for financial assets, which guides the efficient allocation of resources in the economy.
  • Reducing the Cost of Transactions: They provide valuable information, saving the time, effort, and money that both buyers and sellers of assets would otherwise have to spend.

6. If a company wants to issue new shares for the first time, which market would it approach and why? Explain the process as per NCERT guidelines.

A company issuing new shares for the first time would approach the Primary Market. The reason is that the primary market, also known as the New Issue Market, deals exclusively with the issuance of new securities. The correct NCERT method to explain the process is through various methods of floatation, such as:

  • Offer through Prospectus: Inviting the public to subscribe to its securities.
  • Offer for Sale: Securities are offered for sale through intermediaries like issuing houses or stock brokers.
  • Private Placement: Allocating securities to institutional investors and some selected individuals.
  • Rights Issue: Offering new shares to existing shareholders in proportion to their current holdings.

7. How can a student solve a question about the instruments of the money market using the NCERT methodology?

To solve questions on money market instruments, you should identify and explain the key features of each as per the NCERT textbook:

  • Treasury Bill (T-Bill): These are short-term instruments issued by the RBI on behalf of the Government of India. They are highly liquid, issued at a discount, and redeemed at par. They are also known as Zero Coupon Bonds.
  • Commercial Paper (CP): This is a short-term, unsecured promissory note issued by large, creditworthy companies to raise short-term funds, usually to meet floatation costs or working capital needs.
  • Certificate of Deposit (CD): These are unsecured, negotiable instruments in bearer form, issued by commercial banks and development financial institutions to individuals and corporations.

8. What is the fundamental difference between the primary market and the secondary market? Why is one essential for the other to function effectively?

The fundamental difference is that the primary market is where new securities are first issued by companies to raise capital. In contrast, the secondary market (or stock market) is where existing, previously-issued securities are traded among investors. The secondary market is essential for the primary market because it provides liquidity and marketability to these securities. Investors are more willing to buy new securities in the primary market knowing they can easily sell them later in a well-regulated secondary market. Without a thriving secondary market, demand for new issues would be very low.

9. What are the steps involved in the screen-based trading system of a stock exchange as explained in the NCERT book?

As per the NCERT book, the steps in a screen-based trading system (online trading) are:

  1. An investor must open a 'Demat' account with a depository participant (DP) and a trading account with a registered stock broker.
  2. The investor places an order with the broker to buy or sell shares, specifying the quantity and price.
  3. The broker enters the order into the stock exchange's computer system.
  4. The system automatically matches the buy order with a suitable sell order at the best available price.
  5. The transaction is executed and communicated to the broker's terminal, who then informs the investor.
  6. The shares are transferred to the investor's Demat account in a process called settlement, which now happens on a T+1 basis.

10. Why is the dematerialisation of securities considered a major reform in the Indian stock market? How would you explain its benefits in an answer?

Dematerialisation ('Demat') is a major reform because it is the process of converting physical share certificates into an electronic, paperless format. In an NCERT-based answer, you should explain its benefits as follows:

  • It eliminates risks associated with physical certificates, such as theft, forgery, loss, and damage.
  • It significantly reduces the paperwork involved in the transfer and holding of securities.
  • It allows for the instant transfer of shares, making settlements faster and more efficient.
  • It has made trading more convenient and accessible for investors across the country, removing issues like 'bad delivery'.