12th OCM Chapter 8 Exercise (Marketing) Maharashtra Board – Free Resource

12th OCM Chapter 8 Exercise

12th OCM Chapter 8 Exercise
12th OCM Chapter 8 Exercise

Chapter 8 – Marketing

Q.1 (A) Select the correct option and rewrite the sentences.

1) The term market is derived from the _____ word ‘Mercatus’
a) French
b) Latin
c) Italian

2) In the ______ concept of market, emphasis is given on ‘buying and selling of goods or services.
a) Place
b) Exchange
c) Customer

3) Perishable goods such as vegetables, fruits, milk products, etc. are sold in _____ market.
a) Very Short Period
b) Short Period
c) Long Period

4) Retail market is the market where retailer sells goods directly to the _____ in small quantities.
a) Producer
b) Wholesaler
c) Consumer

Q.1 (B) Match the pairs.

Group AGroup B
a) Market1) Single Seller
b) Registered brands2) Stock Market
c) Monopoly3) Distinct Name
d) Branding4) Mercatus
e) Digital Marketing5) Single Buyer
6) lSI
7) Trademark
8) Use of traditional media
9) Multiple sellers
10) Use of digital media

Answers.
a. 4) Mercatus
b. 7) Trademark
c. 1) Single Seller
d. 3) Distinct Name
e. 10) Use of digital media

Q.1 (C) Give one word/phrase/term for the following statements.

1) The market for the commodities which are produced in one country and sold in another countries.
Answer: International market

2) Type of market where durable commodities which are generally non-perishable in nature are sold.
Answer: Long period Market

3) The market where goods are sold to the ultimate consumers or the users of the product.
Answer: Retail market

4) Two sellers, selling either a homogeneous product or a differentiated product.
Answer: Duopoly

5) Giving of distinct name to one’s product.
Answer: Branding

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Q.1 (D) State whether the following statements are true or false.

1) The term market is derived from the Latin word ‘mercatus’. (True)

2) Market may be defined as aggregate demand by potential buyers for a product or service. (True)

3) The market for the commodities which are produced in one country and sold in another countries is known as national market. (False)

4) In wholesale market sellers are known as retailers and buyers are known as wholesaler. (False)

5) Regulated Market operates according to forces of demand and supply. (False)

Q.1 (E) Find the odd one.

1) Primary Market, Secondary Market, Retail Market, Terminal Market

2) Stock Exchange, Foreign Exchange, Bullion Market, Manufactured Goods Market

3) Price, People, Promotion, Product

4) People, Promotion, Physical Evidence, Process

Q.1 (F) Complete the sentences.

1) Market is the place where transaction of buying and selling of goods and services take place in exchange of money or money’s worth.

2) Monopsony refers to a market situation when there is a single buyer of a commodity or service.

3) Label is a slip which is found on the product and provides all the information regarding the product and its producer.

Q.1 (G) Select the correct option.

Group A Group B
1) Commodity MarketIndustrial goods
2) OligopolyA few sellers
3) MercatusTo trade merchandise
4) 4 PsE. Jerome McCarthy
5) Booms & Bitner3 Ps

Q.1 (H) Answer in one sentence.

1) What do you mean by ‘Local Market’?
Answer:
The market for the commodities which are sold within local geographical limits of a region is known as a local market.

2) What do you mean by ‘Regulated Market’?
Answer:
Regulated market refers to the markets regulated by statutory provisions of the country. For example, Commodity Exchanges, Stock Exchanges, Foreign Exchanges

3) Define Market.
Answer:
In simple words market is a place where two or more parties are involved in buying and selling. These two parties involved in the transactions are called buyers and sellers. The transaction of buying and selling takes place with exchange of money.

4) What do you mean by standardization?
Answer:
Standardisation means to determine standards related to process, size, quality, design, weight, colour etc. of the product. It helps in ensuring uniformity in the quality of the product.

5) What do you mean by Branding?
Answer:
Branding is a process of giving special identity to a product through unique brand name to differentiate it from competitor’s products.

Q.1(I) Correct the underlined word and rewrite the following sentences.

1) Commodity Market refers to the market for borrowing and lending long term capital required by business.
Answer: Capital Market

2) In duopoly there is a single seller.
Answer: Monopoly

3) Pricing bridges the time gap between production and sale of goods.
Answer: Warehousing

4) Branding is the process of classification of products according to similar characteristics and/ or quality.
Answer: Grading

5) Grading helps in avoiding breakage, damage and destruction of the product.
Answer: Packaging

Q.1 (J) Arrange in proper order.

1) Local market, international market, national market.
Answer:
Local market
National market
International market

2) Grading, Market Planning, Distribution.
Answer:
Market Planning
Grading
Distribution

Q.2 Explain the following terms/concepts.

1) Market
Answer: The term market is derived from the Latin word ‘Mercatus’, which means ‘to trade’, ‘to trade merchandise’ or ‘a place where business is transacted. In simple words market is a place where two or more parties are involved in buying and selling. These two parties involved in the transactions are called buyers and sellers. The transaction of buying and selling takes place with the exchange of money.

2) Place Concept of Market
Answer: The market is the place where buyers, sellers, and other intermediaries come together and exchange goods or services. In the olden days, place played an important role in defining the market. But in the age of information technology, the term ‘market’ has a wider meaning than just a place.

3) Commodity Concept of Market
Answer: In the commodity concept of market, emphasis is given to ‘buying and selling of goods or services. In this concept, the process of buying and selling of goods or services is important and not the place of exchange. In this process, buyer and seller as well as the commodity exchanged among them play an important role.

4) Digital Concept of Market
Answer: Emergence of Information Technology gave birth to the new concept of the market called as Space or Digital Concept. New and sophisticated E-Commerce Portals and Mobile Applications make the buying and selling easy and convenient for buyers as well as sellers.

Digital Market can be defined as “Market which uses Information Technology for buying and selling of the products or services and facilitate communication of quality, features, price and terms of exchange among them”

5) Product
Answer: Product refers to the goods or services that are offered to the customers for sale and are capable of satisfying the need of the customer. The product can be intangible or tangible, as it can be in the form of services or goods.

The business need to decide the right type of product through extensive market research. Success of the business depends on the impact of the product in the minds of the customer.

6) Price
Answer: The price of the product is basically the amount that a customer pays for the product. Price plays an important role in creating demand for the product. The business needs to take utmost care to decide the price of the product.

Too high price may affect the demand for the product and pricing too low may affect the profitability of the business. While deciding the prices, the value and utility of the product to its customers are to be considered.

7) Promotion
Answer: Promotion is an important element of marketing as it creates brand recognition and sales. Promotion is a tool of marketing communication that helps to publicize the product to the customer.

Promotion mix includes tools such as advertising, direct marketing, sales promotion, personal
selling, etc. Combination of promotional strategies depend on budget, the message business
wants to communicate and the target market.

8) Marketing Mix
Answer: Marketing Mix is the combination of different marketing variables that the firm blends and controls to achieve the desired result from the target market.

In simple words the marketing mix is putting the right product, at the right time, at the right price in the right place. It is one of the important tools of marketing.

9) Packaging
Answer: Package and Label creates the first impression on the consumer about the product. An attractive package and label can help to make the product successful. Packaging means designing the package for the product.

It helps to avoid breakage, damage, and destruction of the product. Packing material includes bottles, containers, plastic bags, tin, wooden boxes, jute bags, bubble bags, packing foam, etc.

10) Labelling
Answer: A label is a slip that is found on the product and provides all the information regarding the product and its producer. The slip-on in which all this information is provided is called a label and its process is called as labelling. Packaging and labeling not only provide protection to the product but also act as an effective tool for marketing.

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Q.3 Study the following case / situation and express your opinion.

1) Mr X purchases goods from nearest shop. Mr Y purchases mobiles from Tokyo. Mr Z of Nandurbar purchases electronic goods from Delhi.

i) From which type of market does Mr.X purchase?
ii) Name the type of market from where Mr.Y deals?
iii) State the type of market from where Mr.Z purchases goods?

Solution:
i) Mr. X purchases goods from the Local Market.
ii) Mr. Y deals from Tokyo i.e International Market.
iii) Mr. Z of Nandurbar purchases electronics goods from Delhi. i.e National Market.

2) Mr. X deals in import and export business so he needs different foreign currencies. For the expansion of his business, he borrows money from the bank. He invests his funds in equity shares.

i) Name the market from where does Mr.X borrow money?
ii) Name the market where does Mr. X invest his funds?
iii) Which type of currency is required for international market?

Solution:
i) Mr. X borrows the money from the capital market.
ii) Mr. X invests his funds in a regulated market.
iii) The different types of foreign currency are required for international market.

Q.4 Answer in brief.

1) Explain in detail the significance of marketing to the society.

Answer:
Significance/Importance of Marketing to the Society:

1) Increase in Standard of Living

The prime objective of marketing is to provide goods and services to the customers to satisfy
their needs. Marketing helps to identify the needs of the customers and take an initiative to provide quality goods at cheaper prices.

This will help to increase and maintain the standard of living of the customers. In modern times, large-scale production of goods and services reduced their prices due to which even the poorer sections of society can attain a reasonable level of living.

2) Provides Employment

Modern marketing is a total system that covers almost all functions of an organization such
as buying, selling, financing, transport, warehousing, risk-bearing, research, development, etc. To run this system there is a need of people. Thus, marketing gives job opportunities to
people.

3) Decreases Distribution Costs

Marketing activities help to provide cheap goods and services to society. Effective
utilization of the channel of distribution can help in reducing the cost prices of the products and services. Reduction of cost will help to increase the potential consumers for the products or services. It also assures timely availability of the product.

4) Consumer Awareness

Marketing helps society by informing and educating consumers. The function of marketing
is to fulfill the needs of the consumers. Marketing helps consumers to know about new products and services available in the market and their usefulness to the customer.

5) Increase in National Income

Every economy revolves around marketing, production, and finance for the industry. The scientifically organized marketing activities help in the economic development of the country.
Effective marketing of products and services result in industrialization, more job, and makes
the economy stronger and stable. Marketing can bring about the rapid development of the country by integrating agriculture and industry.

6) Managing Consumer Expectations

Marketing research helps organizations to understand the needs of consumers. It helps in developing products that fulfill customers’ expectations. Customers’ reviews collected
through different sources can help the organizations to make necessary changes in the products.

2) Explain 4Ps of product marketing mix.

Answer:
1) Product

Product refers to the goods or services that are offered to the customers for sale and are capable of satisfying the need of the customer. The product can be intangible or tangible, as it can be in the form of services or goods. The business need to decide the right type of product through extensive market research. The success of the business depends on the impact of the product in the minds of the customer.

2) Price

The price of the product is basically the amount that a customer pays for the product. Price
plays an important role in creating demand for the product. The business needs to take utmost care to decide the price of the product. Cost of the product and willingness of the customer to pay for the product play an important role in pricing the product. Too high price may affect the demand for the product and pricing too low may affect the profitability of the business. While deciding the prices, the value and utility of the product to its customers are to be considered.

3) Place

Place is also known as a distribution channel. Placement or distribution is a very important part of marketing. Making the right product at the right price is not enough. A businessman needs to make the product available to the potential customers at the right place too. Business needs to distribute the product in a place that is accessible to potential buyers. It covers location, distribution, and ways of delivering the product to the customer. Better the chain of distribution higher the coverage of the product in the market.

4) Promotion

Promotion is an important element of marketing as it creates brand recognition and sales. Promotion is a tool of marketing communication that helps to publicize the product to the customer. It helps to convey product features to the potential buyer and induce them to buy it. The promotion mix includes tools such as advertising, direct marketing, sales promotion, personal selling, etc. The combination of promotional strategies depends on budget, the message business wants to communicate, and the target market.

3) Explain 3Ps in marketing of services.

Answer:

1) People

People inside and outside the business directly or indirectly influence the business. People comprise all the human beings that play an active role in offering the product or service to the customer. The people include employees who help to deliver services to the customer. Right people at right place add value to the business. For the success of the business, it is necessary to recruit right people, train them, develop their skills and retain them.

2) Process

Process refers to the steps involved in delivering products and services to the customer. Processes are important to deliver a quality service. A good process helps to ensure the same standard of service to the customer as well as save time and money by increasing efficiency. The advancement of technology helps businesses in effective monitoring of the process of the business and take corrective action wherever necessary.

3) Physical Environment

Physical Environment refers to the marketing environment wherein the interaction between
customer and firm takes place. Since services are intangible in nature service providers try to
incorporate certain tangible elements into their offering to enhance customer experience. In
the service market, physical evidence is important to ensure that the service is successfully delivered. Through physical evidence, customers know the brand leaders in the market. Physical evidence affects the customer’s satisfaction. It includes location, layout, interior design, packaging, branding, dress of the staff and how they act, waiting area etc.

4) Explain types of market on the basis of area covered.

Answer:
The term market is derived from the Latin word ‘mercatus’, which means ‘to trade’, ‘to trade merchandise’ or ‘a place where business is transacted. In simple words market is a place where two or more parties are involved in buying and selling.

Types of the market on the Basis of Area Covered

a) Local Market

The market for the commodities which are sold within the local geographical limits of a region is known as a local market. eg. purchase of vegetables from the market located near their house.

b) National Market

The market for the commodities which are sold within the country is known as the national market. eg. purchase of Mangoes from Gujrat by a customer who stays in Nashik.

c) International Market

The market for the commodities which are produced in one country and sold in other countries is known as the international market. eg. purchase of machinery from China.

5) Explain types of market on the basis of time.

Answer:
The term market is derived from the Latin word ‘mercatus’, which means ‘to trade’, ‘to trade merchandise’ or ‘a place where business is transacted. In simple words market is a place where two or more parties are involved in buying and selling.

Types of the market on the Basis of Time

a) Very Short Period Market

This type of market has a very short time existence viz., for a few hours or for a day at a particular time and place. In this type of market perishable goods such as vegetables, fruits, milk products, etc. are sold.

b) Short Period Market

This type of market has existed for a short period viz. weekly markets, festival markets, markets during fairs, etc. Perishable or semi-durable goods are sold in this market.

c) Long Period Market

This type of market has existed for long period. In this type of market durable commodities which are generally non-perishable in nature are sold.

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Q.5 Justify the following statements.

1) Marketing is significant to the consumers.

Answer:
a) Marketing creates awareness among the consumers. It helps the consumer in making a buying decision.
b) Marketing creates moral pressure on businesses to provide quality goods to the consumers.
c) Marketing ensures businessmen provide a variety of goods to cater to the needs of the different market segments of the consumers.
d) Marketing helps the consumer to choose the best products and services from the different options available.
e) Marketing leads to consumer satisfaction through honest advertising, assurance of quality products, and availability of innovative products.
f) It helps to maintain the balance between demand and supply. It results into stable prices.
Thus, marketing is significant to the consumers.

2) Promotion plays an important role in marketing.

Answer:
a) Promotion is the process of informing the consumers about the products, their features, uses, prices, etc, and encouraging them to buy these products.
b) Advertising, Personal selling, Publicity, and Sales Promotion are some of the important tools of promotion.
c) Business uses a combination of all or some of these four methods for promotion as per the need of the business.
d) Promotional activities help to increase brand awareness in the market.
e) Promotion is an important element of marketing as it creates brand recognition and sales.
Thus, promotion plays an important role in marketing.

3) Market can be classified on the basis of competition.

Answer:
The market can be classified on the basis of competition as follows

a) Perfect Market

A perfect market is a market where a large number of buyers and sellers buy and sell their homogeneous products. These buyers and sellers have perfect knowledge about market conditions and therefore, one single price prevails in the market.

b) Imperfect Market

An imperfect market refers to a market situation that is characterized by market imperfection such as a single seller, adjustment in demand and supply, imperfect knowledge on the part of buyers or sellers, etc. Imperfect markets are further divided into the following markets :

1) Monopoly: In a monopoly, there is a single producer or seller who controls the market. There are no close substitutes for the product. Monopoly controls the supply and can fix the price.
2) Duopoly: In a duopoly, there are two sellers, selling either a homogeneous product or a differentiated product. These two sellers enjoy a monopoly in the sale of the product produced by them.
3) Oligopoly: In an oligopoly, there are only a few sellers. They may be producing and selling
either a homogeneous or a differentiated product.
4) Monopsony: Monopsony refers to a market situation when there is a single buyer of a
commodity or service.

4) Marketing helps in increasing consumer awareness.

Answer:
a) Through different marketing activities companies promote their products and services.
b) This helps consumers to know about different products and services available in the market.
c) Marketing helps the consumer in making a buying decision.
d) It also creates awareness among the consumers about different brands and features of the product available in the market.
e) Consumer can compare product features, price, availability, and other essentials because of marketing. Marketing helps to improve the quality of life of the consumer.
Thus, marketing helps in increasing consumer awareness.

5) There is a need of branding to get recognition among the consumers.

Answer:
a) Every businessman wants to have a special identity in the market for his product.
b) Branding is a process of giving a special identity to a product through a unique brand name to differentiate it from competitors’ products.
c) In simple words giving of a distinct name to one’s product is called as branding. Registered brands are known as Trademarks.
d) Trademarks can not be copied.
e) Branding helps to get recognition among the consumers. It can help to get new business and increase brand awareness in the market.

Q.6 Attempt the following.

1) Give classification of market in detail on the basis of ‘Volume of Transaction’

Answer:
The term market is derived from the Latin word ‘mercatus’, which means ‘to trade’, ‘to trade merchandise’ or ‘a place where business is transacted. In simple words market is a place where two or more parties are involved in buying and selling.

Types of the market on the Basis of Volume of Transaction

a) Wholesale Market

In the wholesale market, the activity of buying and selling goods is undertaken in large quantities at cheaper prices. Goods are sold to retailers who then sell them to the consumers. It refers to the market for bulk purchase and sale of goods. In such a market sellers are known as wholesalers and buyers are known as retailers.

b) Retail Market

Retail market is the market where the retailer sells goods directly to the consumer in small quantities.

2) Give classification of market on the basis of ‘Time’

Answer:
Refer to question number 4 (5).

3) Explain packaging and labelling.

Answer:
Packaging

Package and Label create the first impression on the consumer about the product. An attractive package and label can help to make the product successful. Packaging means designing the package for the product. It helps to avoid breakage, damage, and destruction of the product. Packing material includes bottles, containers, plastic bags, tin, wooden boxes, jute bags, bubble bags, packing foam, etc.

Labelling

The label is a slip that is found on the product and provides all the information regarding the product and its producer. The slip on which all this information is provided is called a label and its process is called as labeling. Packaging and labelling not only provide protection to the product but also act as an effective tool of marketing.

4) Explain standardisation and grading.

Answer:
Standardisation

Standardisation means determining standards related to the process, size, quality, design, weight, colour, etc. of the product. It helps in ensuring uniformity in the quality of the product. It helps in achieving customers’ loyalty towards the product.

Grading

Grading is the process of classification of products according to similar characteristics and/or quality. Grading is done on the basis of their features like size, shape quality, etc. Generally grading is done in the case of agricultural products like wheat, rice, potatoes, etc.

5) Explain importance of marketing to the firm.

Answer:
1) Increases Awareness

Marketing helps in creating awareness about the existing products, new arrivals as well as
the company which sells a particular product in the market. This raises awareness among
potential consumers. It creates a brand image among the consumers.

2) Increases Sales

Once marketing creates awareness about the products or services among the consumers, it attracts them to purchase the same. A successful marketing campaign helps to increase the sales of the organization. An increase in sales generates profit for the organization. This income and profit are reinvested in the business to earn more profits in the future. In modern business, the survival of the organization depends on the effectiveness of the marketing function.

3) Creates Trust

People want to buy from a business that has a trustworthy reputation. Creating trust among the customers is a time consuming process. Creating trust among the consumers helps the business to earn loyal customers. Once your business can establish this trust with your clients, it creates customer loyalty. Happy customers enhance the brand image in the market. Effective marketing plays an important role in building a relationship between the customers and the organization.

4) Basis for Making Decisions

From the inception of an idea to delivering the final product to the customer, a businessman has to make several decisions. The businessman has to look after many problems such as what, how, when, how much, and for whom to produce? As the scale of operation increases, these decisions become more complex. Marketing helps to take the right decision at right time.

5) Source of New Ideas

Marketing helps businesses to understand the needs of the consumers. Feedbacks from the consumers help in the improvement of the existing products. There is a rapid change in the tastes and preferences of people. Marketing helps in understanding these changes. It helps to understand new demand patterns that emerged in the market. The research and development department develops products accordingly. Inventions and innovations are taking place as per the need of the Research and Development team of the business.

6) Tackling the Competition

There is increasing competition in almost all sectors of the economy. It is difficult for any
business to create a monopoly for its products and services. The role of marketing is important to create a brand image in the minds of potential customers. Marketing not only helps to communicate the products and services to the consumers but also motivates them to buy the same. Sound marketing strategies can portray better image of the business than the competitors.

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Q.7 Answer the following.

1) Define Marketing and explain in detail the concepts of marketing.

Answer:
To understand ‘marketing’ it is necessary to understand the concept of ‘market’.

The term market is derived from the Latin word ‘mercatus’, which means ‘to trade’, ‘to trade merchandise’, or ‘a place where business is transacted. In simple words market is a place where two or more parties are involved in buying and selling. These two parties involved in the transactions are called buyers and sellers. The transaction of buying and selling takes place with the exchange of money.

Marketing is defined in many ways as stated below:

1) American Marketing Association, “Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

2) ” Philip Kotler, “Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others”.

There are many concepts associated with the word ‘market’ and according to the concept, different definitions of the term market are given below:

1) Place concept of Market

The term market is commonly understood as the place where the transaction of buying and selling of goods and services takes place in exchange of money or money’s worth. It is the place where buyers, sellers, and other intermediaries come together and exchange goods or services.

In the olden days, place played an important role in defining the market. But in the age of information technology, the term ‘market’ has a wider meaning than just a place.

2) Commodity Concept of Market

In the commodity concept of market, emphasis is given on ‘buying and selling of goods or services’. In this concept the process of buying and selling of goods or services is important and not the place of exchange. In this process, buyer and seller as well as the commodity exchanged among them play an important role.

3) Exchange concept of Market

The exchange concept of market has given emphasis on exchange of goods or services between buyer and seller with free consent as well as mutual trust. There should not be any Fraud or Misrepresentation or Coercion or undue influence during the exchange. The exchange should be voluntary between buyer and seller.

4) Area concept of Market

The area concept of the market is related to exchange concept. This concept gives emphasis on free association between buyers and sellers to fix the price of goods for buying and selling. The price fixed between buyer and seller implies in the certain area only. In this concept it is not necessary for buyer and seller to meet in person. For fixing the price buyers and sellers can regularly take the help of different modern communication media and exchange goods or services.

5) Demand or Customer concept of Market

The customer is the king of the market. One of the important perspectives of the market is to assess the need or demand of the customer. The market can be studied from the perspective of demand or customer. According to this concept, the aggregate demand by potential buyers for any product is market.

6) Space or Digital concept of Market

The emergence of Information Technology gave birth to the new concept of the market called as Space or Digital Concept. New and sophisticated E-Commerce Portals and Mobile Applications make buying and selling easy and convenient for buyers as well as sellers. The communication media like telephone, mobile, computer, Internet, etc. have made direct contact between customer and seller. It is easy for the customers to know about the quality, features, price, terms, and conditions, etc. of any products of any company.

Digital Market can be defined as a “Market which uses Information Technology for buying and selling of the products or services and facilitate communication of quality, features, price and terms of exchange among them”

2) Explain different types of market in detail.

Answer:
Markets can be broadly classified into the following categories.

1) On the Basis of Area Covered

a) Local Market: The market for the commodities which are sold within the local geographical limits of a region is known as a local market.

b) National Market: The market for the commodities which are sold within the country is known as the national market.

c) International Market: The market for the commodities which are produced in one country and sold in other countries is known as the international market.

2) On the Basis of Time

a) Very Short Period Market: This type of market has very short time existence viz., for few hours or for a day at a particular time and place. In this type of market perishable goods such as vegetables, fruits, milk products etc. are sold.

b) Short Period Market: This type of market has existed for a short period viz. weekly markets, festival markets, markets during fairs, etc. Perishable or semi-durable goods are sold in this market.

c) Long Period Market: This type of market has existed for long period. In this type of market durable commodities which are generally non-perishable in nature are sold.

3) On the Basis of Volume of Transaction

a) Wholesale Market: In the wholesale market, the activity of buying and selling goods is undertaken in large quantities at cheaper prices. Goods are sold to retailers who then sell them to the consumers. It refers to the market for bulk purchase and sale of goods. In such a market sellers are known as wholesalers and buyers are known as retailers.

b) Retail Market: Retail market is the market where retailer sells goods directly to the consumer in small quantities.

4) On the Basis of Importance

a) Primary Market: Primary Market refers to the market for primary products such as agricultural and forest products, for example, fruits, vegetables, food grains etc.

b) Secondary Market: Secondary Market refers to the market for semi-processed and semi-manufactured goods. For example yarn market, iron ore market etc.

c) Terminal Market: Terminal Market refers to the market where goods are sold to the ultimate consumers or the users of the product.

5) On the Basis of Nature of Goods

a) Commodity Market: The commodity market refers to the market for goods, materials, or produce viz., consumer goods and industrial goods.

b) Capital Markets: It is a market for borrowing and lending long-term capital required by business enterprises. The financial asset dealt within capital market have a long or indefinite maturity period.

6) On the Basis of Regulation

a) Regulated Market: Regulated market refers to the markets regulated by statutory provisions of the country. Examples, Commodity Exchanges, Stock Exchanges, and Foreign Exchanges.

b) Unregulated or Free Market: It refers to the markets which are not controlled by any specific regulations. It generally operates according to forces of demand and supply.

7) On the Basis of Competition

a) Perfect Market: Perfect market is a market where a large number of buyers and sellers buy and sell their homogeneous products. These buyers and sellers have perfect knowledge about market conditions and therefore, one single price prevails in the market.

b) Imperfect Market: Imperfect Market refers to a market situation that is characterized by market imperfection such as single seller, an adjustment in demand and supply, imperfect knowledge on the part of buyers or sellers, etc.

Imperfect markets are further divided into the following markets :

1) Monopoly: In a monopoly, there is a single producer or seller who controls the market. There are no close substitutes for the product. Monopoly controls the supply and can fix the price.

2) Duopoly: In a duopoly, there are two sellers, selling either a homogeneous product or a differentiated product. These two sellers enjoy a monopoly in the sale of the product produced by them.

3) Oligopoly: In an oligopoly, there are only a few sellers. They may be producing and selling either a homogeneous or a differentiated product.

4) Monopsony: Monopsony refers to a market situation when there is a single buyer of a commodity or service.

3) Explain in detail 7Ps of Marketing.

Answer:
Refer to question number 4 (2) and (3).

4) Explain the functions of marketing in detail.

Answer:
The success of a business is difficult without effective marketing. Marketing deals with exchange of goods and services to satisfy the needs of consumers. Marketing functions help to study the needs of the consumers and facilitate to satisfy them.
Following are some of the important functions of marketing :

1) Marketing Research

Effective marketing is possible when a business takes initiative to identify the needs and wants of the consumers in the market. To identify the needs of the consumers, there is a need to collect information from the consumers and analyze the same is known as Market Research. It helps to find out what do consumers want to buy, when do consumers buy, in what quantity they want to buy and at what price. Marketing Research helps to make various decisions regarding successful marketing of products.

2) Buying and Assembling

It involves collecting raw materials from different sources at one place for production. This function is important as the quality and price of raw materials determine the cost and quality of the final product.

3) Market Planning

After assessing the need for marketing, the business needs to chalk out the marketing plan and strategies to achieve the desired objective. Market planning is the process of organizing and defining the marketing objectives of the business and creating strategies to achieve them. It is the comprehensive blueprint that will help to draw an outline of a business’s overall marketing efforts.

4) Product Development

Product development and design play an important role in the selling of the product. There is a need to develop a product that suits the needs of the consumer. Product design includes decisions related to quality, standards, shape, design, packing, colour, etc. of the product. Consumer always prefers better and more attractively designed product. Good design of the product gives a competitive advantage to the business.

5) Standardisation and Grading

Standardization means determining standards related to the process, size, quality, design, weight, colour, etc. of the product. It helps in ensuring uniformity in the quality of the product. It helps in achieving customers’ loyalty towards the product.

Grading is the process of classification of products according to similar characteristics and/or quality. Grading is done on the basis of their features like size, shape quality etc. Generally grading is done in case of agricultural products like wheat, rice, potatoes etc.

6) Packaging and Labelling

Package and Label create the first impression on the consumer about the product. An attractive package and label can help to make the product successful. Packaging means designing the package for the product. It helps to avoid breakage, damage and destruction of the product. Packing material includes bottles, containers, plastic bags, tin, wooden boxes, jute bags, bubble bags, packing foam, etc.

A label is a slip that is found on the product and provides all the information regarding the
product and its producer. The slip on which all this information is provided is called a label
and its process is called as labeling. Packaging and labelling not only provide protection to the product but also act as an effective tool of marketing.

7) Branding

Branding is the process of giving a special identity to a product through a unique brand name to differentiate it from a competitor’s products. In simple words giving of distinct name to one’s product is called as branding.

Registered brands are known as Trademarks. Trademarks can not be copied. Branding helps to get recognition among the consumers. It can help to get new business and increase brand awareness in the market.

8) Customer Support Service

The customer is the king of the market hence business needs to take necessary steps for the satisfaction of the customer. Business needs to take every possible effort to provide support services to the customer. Timely support services help to gain customer loyalty.

The business can provide the support services like Pre-sales service, consumer helpline, after-sales service, technical assistance, product demo, etc. to the customers. These services help in getting, retaining, and growing the customers.

9) Pricing of Product

Pricing is one of the most important as well as challenging functions of marketing. Pricing plays an important role in the market where there is cutthroat competition. While determining the price of the product businessman needs to consider factors like cost, desired profit, price of the competitor’s product, demand for the product, market condition, etc. If prices are too high, it might lose customers but if prices are too low, it might suffer losses. So deciding the right price needs extensive market research.

10) Promotional Channels

Promotion is the process of informing the consumers about the products, their features, uses,
prices, etc, and encouraging them to buy these products. Advertising, Personal selling, Publicity, and Sales Promotion are some of the important tools of promotion. Business uses a combination of all or some of these four methods for promotion as per the need of the business. Promotional activities help to increase brand awareness in the market.

11) Distribution

Distribution is the set of activities that are concerned with the efficient movement of finished
goods from the place of production to the consumer. It includes transportation, warehousing,
material handling, inventory control, order processing, market forecasting, packaging, plant
and warehouse location, and customer service. Distribution accounts for a major part of the marketing budget of the business.

12) Transportation

Transportation means the physical movement of goods from the place of production to the place of consumption. Transportation includes transportation of finished goods as well as of raw materials. Production, sale, and consumption-all the three activities need not be at one place hence there is a need of transportation. Place utility is created by transportation activity.

13) Warehousing

There is a time lag between the purchase or production of goods and their sale. It is important to store the goods in a safe place during this time lag. Any negligence during this period may damage the stock. The warehouse helps to maintain a smooth flow of goods. It also helps in stabilizing prices in the market. The function of warehousing is performed by retailers, wholesalers, and manufacturers. Warehousing creates time utility.

Note: Write any 10 to 12 points for 8 marks.

5) Explain importance of marketing to the society and consumers.

Answer:
For the Importance of marketing to the society
Refer to question number 4 (1)

Importance of marketing to the consumers

1) Promotes Product Awareness

Through different marketing activities, companies promote their products and services. This
helps consumers to know about different products and services available in the market. It
helps the consumer in making buying decisions. A consumer can compare product features, price, availability, and other essentials because of marketing. Marketing helps to improve the quality of life of the consumer.

2) Provides Quality Products

There is increasing competition in the market. Consumers are getting easy access to information about the products and services available in the market. It creates moral pressure on businesses to provide quality goods to consumers. Supplying defective products may create a negative image of the business which affects the consumer’s loyalty.

3) Provides Variety of Products

Business launch products keeping the market segmentation in mind. A businessman needs to provide a variety of goods to cater to the needs of the different market segments of the consumers. Variety may change according to the price, size, and quality of the product.

4) Helps in Selection

Variety of products with different brands are available in the competitive markets. Marketing helps the consumer to choose the best products and services from the different options
available.

5) Consumer Satisfaction

The first and foremost objective of any sound marketing policy is to satisfy the consumers with an assurance of good quality products. When an offering meets the customer’s expectations, the customer is satisfied. Marketing leads to consumer satisfaction through honest advertising, assurance of quality products, and availability of innovative products. Thus, marketing takes every effort to satisfy the consumer.

6) Regular supply of goods

Through efficient distribution channel of marketing regular supply of goods is possible. It helps to maintain the balance between demand and supply. It results in stable prices.

12th Commerce OCM Textbook Solutions

Chapter Name Solution Link
1) Principles of ManagementClick Here
2) Functions of ManagementClick Here
3) Entrepreneurship DevelopmentClick Here
4) Business ServicesClick Here
5) Emerging Modes of BusinessClick Here
6) Social Responsibilities of BusinessClick Here
7) Consumer ProtectionClick Here
8) MarketingClick Here

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