12th OCM Question Paper 2023 with Solution | Maharashtra Board (Download Free PDF)

12th OCM Question Paper 2023 with Solution

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12th Commerce OCM Textbook Solutions

Chapter Name	Solution Link
1) Principles of Management	Click Here
2) Functions of Management	Click Here
3) Entrepreneurship Development	Click Here
4) Business Services	Click Here
5) Emerging Modes of Business	Click Here
6) Social Responsibilities of Business	Click Here
7) Consumer Protection	Click Here
8) Marketing	Click Here

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Students Appearing for Maharashtra 12th Class Exam need to Get Familiar with the Exam Pattern and Question Paper design. They Should also know the Marking Scheme of the Upcoming Maharashtra 12th class Exam 2023, Students who are Searching for the Maharashtra 12th Class Question Paper 2023 can Find the Complete list of Subject Wise Annual, Supplementary & Model Question Papers of the New Syllabus.

12th OCM Question Paper 2023 with Solution

Q. 1. (A) Select the correct option and rewrite the sentences: (5) {20}

1) Scalar chain means the hierarchy of ______ from the top level to the lower level for the purpose of communication.
a) discipline
b) Unity
c) authority

2) ________ warehouses provide facilities for perishable commodities.
a) Bonded
b) Cold Storage
c) Government

3) For online transactions _______ is required.
a) registration
b) trading
c) business

4) The President of District Forum is _____.
a) District Judge
b) High Court Judge
c) Supreme Court Judge

5) Retail market is the market where retailer sells goods directly to the ______ in small quantities.
a) producer
b) wholesaler
c) consumer

(B) Match the correct pairs : (5)

Group ‘A’	Group ‘B’
a) Henry Fayol	1) It is the process of instructing, guiding, communicating and motivating
b) Directing	2) Scientific Management theory
c) Responsibility towards Government	3) It is the process of recruiting, selecting, placing and remunerating
d) Digital Cash	4) To earn profit
e) Monopoly	5) Respecting rules and regulations
	6) Exist only in cyber space
	7) Exist everywhere
	8) Single buyer
	9) Modern management theory
	10) Single seller

Answer
A-9, B-1, C-5, D-7, E-9

(C) State whether the following statements are true or false : (5)

(1) F. W. Taylor has proposed 14 principles of management. (False)
(2) Current account is opened by salaried persons. (False)
(3) Unregulated market operates according to forces of demand and supply. (True)
(4) Consumer being the king of market does not have any responsibility. (False)
(5) Lok Adalat can rightly be described as ”People’s Court”. (True)

(D) Find the odd one : (5)

(1) Planning, Orgariisirtg, Staffing, Writing
(2) Trekking, Wildlife Study, Horseback riding, Indoor games.
(3) Primary credit co-operative society, State co-operative bank, District co-operative bank, Exchange bank.
(4) B to B, B to C, A to Z, C to C
(5) Stock exchange, Foreign exchange, Bullion market, Manufactured goods market.

Q. 2. Explain the following terms/concepts: (Any Four)(12)

1) Management
Answer: Organizing is the process of identifying, and bringing the required resources together such as men, money, material, machine, and method, grouping and arranging them properly for achieving the objectives. In planning, the management decides what is to be done in the future whereas the organizing function decides the ways and means to achieve what has been planned. This function is important for the execution of the plans which have been prepared by top-level management people.
The synchronization and combination of workforce, physical, financial, and information resources are established in the process of organizing.

2) Social Responsibility
Answer: Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss. Insurance is a contract between the insurer and the insured, whereby the insurer agrees to compensate the insured against loss. The insured has to pay a certain fixed sum of money on timely basis to the insurer.

3) Concept of Trusteeship
Answer: The term ‘E-business’ i.e electronic business is derived from the terms e-mail and e-commerce.
E-business or electronic business is the administration of conducting business via the internet. This would include the buying and selling of goods or services, along with providing technical or customer support through the internet.

4) Janhit Yachika
Answer: The term market is commonly understood as the place where the transaction of buying and selling of goods and services takes place in exchange for 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 market. But in the age of information technology, the term ‘market’ has a wider meaning than just a place.

5) Packaging
Answer: Lok Adalat is an effective and economical system for quick redressal of public grievances. It can also be referred to as ‘People’s Court’.
It is established by the government to settle disputes by compromise. The aggrieved party can directly approach the Adalat with a grievance, issues are discussed on the spot, and decisions are taken immediately. Resolution of disputes by Lok Adalat gets statutory recognition. e.g. MSEDCL, MSRTC, Railway Authority, Insurance Companies, Banks, etc. organize regular Lok Adalat.

6) Product
Answer: Outsourcing is the process of contracting a business function or any specific business activity to specialized agencies mostly the non-core areas such as sanitation, security, household pantry, etc. are outsourced by the company. The company makes a formal agreement with the agency.
The company benefits in two ways.
i) It reduces its own cost
ii) It uses the expertise of the firm which specializes in a particular kind of service.

Q. 3. Study the following case/situation and express your opinion : (Any Two) (6)

(1) Mr. Ram, an emerging entrepreneur has designed a structure of his business organisation by taking into consideration the required resources such as land, money, machinery, workforce etc. for his new business. He appointed Mr. Shyam as a manager. Mr. Ram has assigned the responsibilities such as recruitment, selection, training and development and to determine the remuneration of the employees to Mr. Shyam. Mr. Ram has also appointed Mr. Shubham to supervise the work done by the employees according to the standards given to the employees. Mr. Shubham has to also suggest the remedies to the employees wherever necessary.
On this context, find out the management functions performed by :

(a) Mr. Ram
(b) Mr. Shyam
(c) Mr. Shubham

Solution:
1) Mr. Ram performs the function of planning and organizing.
2) Mr. Shayam performs the function of staffing because his main duties are to recruitment, selection, training, and development of the employees.
3) Mr. Shubham performs the function of controlling because he compares the actual performance of employees to standard performance. He also suggests remedies to overcome deviations.

(2) Mr. Amit is a businessman. He has his own factories in Pune and Nashik. He lives in Pune with his wife and 2 daughters aged 5 and 8 years.

(1) Can Mr. Amit take a life insurance policy for his wife and 2 children?
(2) Can Mr. Amit take a marine insurance policy for his factories?
(3) Which type of insurance should Mr. Amit take for protecting his factories from loss due to fire?

Solution:
1) Yes, Mr. Amit can take a life insurance policy for his wife and 2 children.
2) Mr. Amit cannot take a marine insurance policy for his factories.
3) Mr. Amit can take a floating fire insurance policy to protect his factories from loss due to fire.

(3) Mr. Atharva made his payment by cheque at the same time Mr. Samarth made his payment by fund transfer.

a) Whose payment is faster?
b) Whose payment is related to traditional business?
c) Whose payment is related to e-business?

Solution:
a) Mr Samarth’s, because payment made by fund transfer is faster than the payment made by cheque.
b) Mr. Atharva’s payment by cheque is related to traditional business.
c) Mr. Samarth’s payment by fund transfer is related to e-business.

Balbharti Textbook Solutions for other subjects
Solution of all Chapters of OCM
1 – 2 – 3 – 4 – 5 – 6 – 7 – 8

Q. 4. Distinguish between the following: (Any Three) (12)

1) Current Account and Fixed Deposit Account

Points	Current Account	Fixed Deposit Account
1. Meaning	It is that account that is maintained by businessmen and others who have regular bank transactions.	It is that account where a fixed  sum of money is deposited for a  fixed period.
2. Withdrawals	Customers can withdraw money by cheques.	Customers cannot withdraw during the specified period.
3. Documents	The bank gives a passbook, cheque book, statement of account and pay-in-slip book to the customers.	The bank gives fixed deposits  receipt to the customers.
4. Who opens it	It is suitable for traders, businessmen, firms or institutions.	It is suitable for any person with temporarily idle cash.
5. Restrictions	There are no restrictions on the  operation of a current account as long as there is balance in the account.	The amount becomes due on the expiry of the fixed period. If  withdrawn earlier, then the rate of interest will be less than applicable.
6. Interest Rate	Normally interest is not given.	The interest rate is higher, longer the  period, higher will be the rate of  interest.
7. Nature of account	It is of continuous Nature.	It is for a fixed period of time except when the fixed deposit  receipt is renewed.
8. Facilities	A temporary overdraft facility is given.	90% of the amount of fixed deposit can be given as a loan.

2) Organising and Directing

Points	Organizing	Directing
1) Meaning	Organizing is the process of defining and grouping the activities of the enterprise and  establishing the authority  relationships among them.	Directing is the guidance inspiration, the leadership of those men and women constitutes the real case responsibilities of  management.
2) Objective	To identify and bring together all required resources.	To direct the subordinates to get things done in the right manner.
3) Area of function	It includes identification and grouping of activities, assigning the work and establishing the authority relationship.	It includes instructing, guiding, inspiring, communicating and motivating the human resources.
4) Factors	Internal and external factors are considered in arrangement of resources.	Directing is concerned directly with internal factors i.e. human  resources.
5) Resources	All available resources i.e. men, money, material, machine and  method is arranged in a systematic manner.	It gives direction to the employees  regarding use of other resources.
6) Level of management	Top and middle- level management  is related with organizing the required resources.	Middle-level management is involved in directing the employees.

3) State Commission and National Commission.

Points	State Commission	National Commission
1) Meaning	A consumer dispute  redressal forum at the State level established by the  State Government is known as State Commission.	A consumer dispute redressal forum at the National level established by the Central Government by notification is known as National Commission.
2) President	A person who is sitting or retired or Judge of High Court shall be appointed by  the State Government as the President of the State Commission.	A person who is or has been a judge of the Supreme Court shall be appointed by  the Central Government.
3) Member	Not less than four or not more than such number of members as may be prescribed in consultation  with the Central Government.	Not less than four and not more than such number of  members as may be  prescribed.
4) Membership Tenure	The members can have the membership for a term of five years or up to the age of sixty-seven, whichever is earlier.	The members can have the membership for a term of five years or up to the age  of sixty-seven years and president upto seventy years, whichever is earlier.
5) Area covered	It covers a particular state.	It covers the entire country.
6) Monetary Jurisdiction	To entertain complaints where the value of the goods or services paid as consideration, exceeds Rs. one crore, but does not exceed Rs. ten crores.	To entertain complaints where the value of the goods or services paid as con consideration exceeds Rs. ten crore
7) Appeal	An appeal against the State Commission can be made to the National Commission.	An appeal against the National Commission can be made to the Supreme Court.

4) E-business and E-commerce

Points	E-commerce	E-business
1) Meaning	E-commerce involves commercial transactions done over internet.	E-business is conduct of business processes on the internet.
2) What is it?	E-commerce is subset of  E-business.	E-business is superset of E-commerce.
3) Features	E-commerce just involves buying and selling of products and services.	E-business includes all kinds of pre-sale and post-sale efforts.
4) Concept	E-commerce is narrower concept and restricted to buying and selling.	It is broader concept that involves market surveying, supply chain and logistic management and using data-mining.
5) Transaction	It is more appropriate in B2C  context.	It is used in the context of B2B transactions.
6) Which network is used?	E-commerce involves the mandatory use of internet.	E-business can involve the use of internet, intranet, or extranet.

Q. 5. Answer in brief : (Any Two) (8)

(1) Describe any four techniques of scientific management.

Answer: Definition of Scientific Management by Fredrick Taylor: “Scientific Management consists of knowing what you (i.e. management) want men to do exactly, and seeing it that they do it in the best and the cheapest manner.”

Techniques of Scientific Management
Some of the major techniques of scientific management are as follows:

1) Work Study

Before assigning the work to the available workforce, proper work study should be done by management. Work study consists of an organized, systematic, and critical assessment of the various activities or functions. Work-study is based on the techniques such as time study, motion study, method study, and fatigue study.

A) Time Study

It is the technique of observing and recording the time taken by an employee to complete a given task. With the help of time study, the precise time required for each element of work is determined. It is the technique used for fixing the standard time required to do a particular task under given condition. It is useful to measure the efficiency of an employee and to control the cost of work.

B) Method Study

There are always various methods of completing the task. For best quality and cost-effectiveness, identifying the best method of doing a particular job is very important but challenging task for a manager. It helps in reducing the wastage of time, raw material and in improving the utility of all resources as per predefined objectives.

C) Motion Study

The study of required motion means movement of an employee as well as of machine while completing a particular task is very important. It is helpful in eliminating unnecessary motions and finding the best method of doing a particular job. It also helps in improving the efficiency of the employees. Motion technique is used to know whether some elements of a job can be eliminated or their sequence can be changed for smooth flow of task.

D) Fatigue Study

Generally long working hours without sufficient breaks, target pressure, heavy working tools, and poor working conditions result into physical and mental stress i.e. fatigue. It has an adverse effect on the health and efficiency of the employees. The study of fatigue and steps to reduce the level of fatigue is very important to maintain the operational efficiency of the employees.

2) Standardization of Tools and Equipments

With the result of experiments conducted at the workplace, Taylor advocated standardization of tools and equipment. A standardized working environment and methods of production help to reduce spoilage and wastage of material, cost of production, and fatigue among the workers and it improves quality of work.

3) Scientific Task Setting

Taylor emphasized the need for fixing a fair day’s work. Scientific work setting is important to prevent the employees from doing work much below their capacity. By using this technique, employees will complete the task according to standards given and management can keep proper control on optimum utilization of workforce.

4) Scientific Selection and Training

Management can select right persons for the right jobs by using scientific selection procedures. It needs to fix job specifications as per requirement. Employees are selected according to pre-determined standards in an impartial way. After selection, management should provide the proper training programmes to increase their efficiency.

(2) Explain any four needs of consumer protection.

Answer: The consumer is regarded as the ‘King of Market’ hence consumer protection is required due to the following reasons:

1) Need of participation of consumers

It is noted that business organizations take decisions that affect the consumers’ interests without consulting the consumer or their organizations. Only a strong consumer organization can pressurise business organizations to allow consumer participation in the decision-making process.

2) Lack of information

It is very difficult to establish direct contact between consumers and manufacturers because consumers live in a dynamic and complex world and they are widely scattered. Today’s markets are full of domestic as well as imported products therefore it is very difficult to get correct and reliable information about products before they purchase.

3) Ignorance

Ignorance of consumers is the main cause of exploitation by businesses. Consumers in India are mostly ignorant about their rights, market conditions, price levels, and product details. A system is required to protect them from business malpractices. 

4) Unorganized Consumers

Consumers are widely scattered and are not organized, On the other hand, sellers are in a better position than consumers and they are powerful. Consumers are under the influence of businessmen. An individual consumer cannot fight against these powerful sellers.

(3) Explain any four functions of marketing.

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.

Q. 6. Justify the following statement : (Any Two) (8)

1) Controlling is the last function of management.

Answer:
a) Controlling is a function of comparing the actual performance with the predetermined standard performance. b) It measures deviation, if any, identifies the causes of deviation, and suggests corrective measures.
c) The process of controlling help in the formulation of future plans also.
d) The effectiveness of the planning function can be determined with the function of controlling.
e) The function of management ends with controlling.
Thus, Controlling is the last function of management.

2) Entrepreneurship is the best source for self-employment.

Answer:
1) Intellectual Capabilities
An entrepreneur is a creative thinker. He has reasonably good intelligence. He has ability to analyze business situations. This ability will help him to take proper decisions.

2) Future Vision
The entrepreneur has a good foresight about future market situation. He should also have knowledge about external business environment. This will help him to take proper decisions according to the situations and changes in the market. So, he can take timely action for the same.

3) Technical Knowledge
An entrepreneur has good technical knowledge about his business. The entrepreneur has the ability to update himself with the latest knowledge about the product, process and technology.

4) Risk bearing capacity
A successful entrepreneur takes calculated risks. He is ready to face challenges and always seeks new and more opportunities.
Thus, Entrepreneurship is the best source of self-employment.

3) Cash can be withdrawn from ATMs at any time.

Answer:
a) ATM is the abbreviation of Automated Teller Machine. It is popularly known as All Time Money or Any Time Money.
b) There is no specific time limit for withdrawals of cash from ATMs.
c) To avail of this facility, bank installs ATM terminals at places of a public utility such as railway stations, shopping malls, airports, post offices, busy streets, etc.
d) ATM also provides other information like cash deposits, withdrawals, balance in the account, etc.
e) ATM avails twenty-four hours service. Hence, the accountholder can withdraw cash at any time.

4) Consumers have many responsibilities.

Answer:
Consumers have many responsibilities such as:
a) Consumer should use his rights: Consumers have many rights with regard to goods and services. They must be aware of their rights while buying.

b) Cautious consumer: While buying, the consumer should enquire about the quality, quantity, price, utility of goods and services, etc.

c) Filing of complaint: It is the responsibility of a consumer to approach the officer concerned if consumers have some complaints about the goods and services.

d) Quality conscious: Consumers should never compromise on the quality of goods. They should not buy inferior stuff out of greed for less prices.

e) Demand of Invoice and Guarantee, Warranty Card: Consumers should always ask for invoices for the goods purchased. It is the responsibility of the consumer to check the details mentioned on the guarantee or warranty card.

Q. 7. Attempt the following : (Any Two) (10)

1) Explain nature of principles of management.

Answer:
Management principles are formed to guide and influence the behavior of employees. These principles insist on improving efficiency of organizational resources in terms of profit. These principles also focus on best coordination between superior, subordinates, and all the members of the organization.

The nature of management principles is given below:

1) Universal application

The principles of management are universal in nature. That means they can be applied to all types of organizations, irrespective of their size and nature. Their results may vary and application may be modified but these are suitable for all kinds of organizations. Similarly, they are applicable to all levels of management.

2) General guidelines

Management principles provide general guidelines in tackling organizational situations wisely as well as in solving problems. They are not rigid. Which management principles are to be applied depends upon the situation, size, and nature of the organization. For example, when we say fair remuneration, then the term ‘fair’ can vary as per the nature, size, and financial condition of the organization.

3) Principles are formed by practice and experiments

The management principles are developed gradually with thorough research work. Systematic observations and experiments are conducted before developing them. The results of such experiments have been developed as a principle after its practice in organizations.

4) Flexibility

Management principles are flexible in nature. It means they can be changed or modified according to the situation. Managers can be flexible while implementing principles to suit the requirement. The business situations keep on changing. Management principles can be adjusted or modified and can be used in the organization according to its need.

5) Behavioral in nature

Management is a group activity. Management aims at achieving certain goals through a group of a human beings. Management principles are designed to influence human beings. These principles control a group of persons and direct them to achieve the objectives.

6) Cause and effect relationship

Principles of management are the basis for taking decisions. They determine the cause or reason for a particular effect. For example, payment of good wages and incentives helps in increasing the output of workers or making effective advertisement increases the sale of a product.

7) All principles are of equal importance

All principles of management are of equal importance. Those are to be practiced simultaneously to get the best results in the form of achievement of predefined goals. If any specific principle is focused more and others are not followed with same focus, then it affects the working of organization.

(2) State money remittance services and retail services of postal department.

Answer:
The following are the money remittance services of postal department.

1) Electronic Money Transfer (eMO)

A money order is an order issued by the Post Office for the payment of a sum of money to the person whose name is mentioned in the money order. It is sent through the agency of the Post. Office. A ‘Payee’ is the person named in money order as the person to whom the money is to be paid. The advantage of sending money to someone through money order is that the money is delivered at the house or his place of stay.

2) Instant Money Order (iMO)

India Post presents Instant Money Order (iMO), the instant online money transfer service that is instant, convenient, reliable and affordable. iMO is an instant web-based money transfer service through Post Offices (iMO Centre) in India between two resident individuals in Indian territory. One can transfer money from INR 1,000/- to INR 50,000/from designated iMO Post Offices. It is simple to send and receive money.

3) International Money Transfer

Money Transfer Service Scheme is a quick and easy way of transferring personal remittances from abroad to beneficiaries in India. Only inward personal remittances are permissible. Department of Posts, Government of India with the Western Union Financial Services, a state-of-the-art International Money transfer Service is now available through the Post Offices in India, which enables instantaneous remittance of money from around 195 countries and territories to India.

The following are the retail services of post offices:

1. Retail post –

It includes services like collection of payments of electricity bills, telephone bills and insurance premiums. It also sells forms of UPSC, SSC and other universities.

2. E-payment –

Post offices provide the facility of making payments of bills electronically.

3. Bill mail –

Under this service, financial statements, bills and monthly account bills are sent by service providers to their respective customers through post.

3) State social responsibilities of commercial organisations towards consumers.

Answer:
Following are the social responsibility of commercial organizations toward consumers:

1) Good Quality Products

The organization should produce quality goods. Every organization should have its quality control department so inferior and substandard products can be rejected. International Standard Organization (ISO), is the latest trend toward quality control. This ensures customers about quality products.

2) Fair Prices

Consumers should not be cheated by charging high prices. Fair prices convert a one-time consumer into a permanent consumer. Maximum Retail Price (M.R.P.) inclusive of all taxes should be printed on every packet. Retailer should not charge any extra amount.

3) Customer’s Safety

The business must ensure that the product supplied will not adversely affect the life and health of the customers. Unsafe products should not be marketed. Consumers should be warned of any unsafe goods.

4) Honest Advertising

Consumers want to know the facts, features, advantages, side-effects, etc. of the products. So the organization must be sure that the advertisement is not misleading. A false, misleading, and vulgar advertisement should be avoided. Consumers will appreciate only honest advertisements in the long run.

5) After Sales Service

The organization is expected to provide after-sales service for maintenance of goods during the period of warranty. Efficient and effective after-sale service helps to establish a good relation between the consumers and the organization.

6) Research and Development

Organizations should conduct research and development to improve the quality of goods and to reduce the cost of production. This will minimize the final prices charged to consumers. It must provide quality standards such as BIS or AGMARK on respective products.

7) Regular Supply

Consumers should be supplied with the goods regularly as and when required by them. The commercial organization should not create an artificial shortage of goods by hoarding and black marketing.

Q. 8. Answer the following questions : (Any One) (8)

1) What is road transport? Explain its advantages and disadvantages.

Answer:
Roads are means that connect people and places on the surface of the land. It provides all-over connectivity in any terrain as compared to other modes of transport. Various means of transport are used under road transport such as bullock cart, cycles, rickshaws, buses, cars etc.

Bus Rapid Transit (BRT) systems have been introduced in many states to improve public transport system in India. India has a network of village roads, district roads, state highways and national highways which form the economic backbone of the country.

In India, Ministry of Road Transport and Highways (MoRTH) looks after development of surface transport throughout the country.

Advantages:
1) It is a cheap mode of transport as compared to other modes of transport.
2) Perishable goods can be transported at a faster speed by road carriers over a short distance.
3) It is a flexible mode of transport as loading and unloading is possible at any destination.
4) It provides door-to-door service. Also, it functions as feeder transport to other modes of transport.
5) It helps people to travel and carry goods from one place to another place where any other mode of transport is not available.

Disadvantages:
1) Due to limited carrying capacity road transport is not economical for long-distance transportation.
2) Transportation of heavy and bulky goods through road transport involves high cost.
3) Road transport is affected by adverse weather conditions such as floods, rain, landslides etc.
4) There is a possibility of road accidents which are common.
5) It causes pollution due to emission of gases which affect the health of people.

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

Answer: The success of a business is difficult without effective marketing. Marketing deals with the 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.

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.

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.

Balbharti Textbook Solutions for other subjects
Solution of all Chapters of OCM
1 – 2 – 3 – 4 – 5 – 6 – 7 – 8

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