Chapter marketing: Marketing Application Questions | business studies Class 12 CBSE

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Chapter marketing: Marketing Application Questions | business studies Class 12 CBSE | ByteNotes.in

Application Question

Hard difficulty • Concept in a practical situation

Hard

Question 1

Applied Concept

A company manufacturing air conditioners has been using door-to-door salespeople to sell its products. The sales manager argues that advertising should replace personal selling. With reference to the nature of the product and target customers, evaluate whether this shift is advisable.

Air conditioners are consumer durable products requiring technical explanation, demonstration, and after-sales service commitment; personal selling is more effective here as it allows the salesperson to tailor presentations to individual customer needs and handle objections immediately.
Advertising offers mass reach and low per-unit cost but lacks flexibility and direct feedback; for a high-involvement, high-ticket product like an air conditioner, customers require personal persuasion and assurance—something advertising cannot fully provide.
The ideal approach is a combination: advertising to build awareness and brand image on a large scale, complemented by personal selling to close sales, provide expert advice, and build lasting relationships—rather than replacing one with the other entirely.

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Application Question

Easy difficulty • Concept in a practical situation

Easy

Question 2

Applied Concept

Nisha buys Colgate toothpaste every week without comparing prices or brands. Her brother Rohan spends two weekends comparing models, prices, and features before buying a laptop. Identify the type of product each is buying and justify your answer.

Nisha is buying a convenience product (toothpaste); convenience products are purchased frequently, immediately, and with the least time and effort; they have low unit value and are bought in small quantities on a routine basis.
Rohan is buying a shopping product (laptop); shopping products require buyers to devote considerable time comparing quality, price, style, and suitability at several stores or platforms before making the final purchase decision.
The difference in buying behaviour is explained by the nature of the products: toothpaste is a low-involvement, habitual purchase while a laptop is a high-involvement, high-value purchase requiring deliberate comparison and evaluation—matching the definitions of convenience and shopping products respectively.

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Application Question

Medium difficulty • Concept in a practical situation

Medium

Question 3

Applied Concept

A soft drink company is launching a new flavoured drink and decides to distribute free 100 ml sample pouches at a busy railway station along with a 'scratch and win' contest. Identify and explain the sales promotion tools being used and their advantages.

Sampling is being used: offering free product samples to potential customers at the time of a new brand launch induces trial purchase by breaking the consumer's existing buying habits and encouraging them to experience the new product without financial risk.
Instant Draws (Scratch and Win) is the second tool: this technique immediately rewards a section of participants, generating excitement and urgency; it attracts consumer attention through the lure of winning prizes and creates a memorable brand interaction.
These two tools together are highly effective at product launch because sampling builds product awareness and trial while the contest creates buzz and engagement—both contributing to synergy in the overall promotional effort and helping establish the new drink in the market.

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Application Question

Hard difficulty • Concept in a practical situation

Hard

Question 4

Applied Concept

A pharmaceutical company has developed a life-saving drug that costs ₹15 per strip to manufacture. The company plans to price it at ₹200 per strip as it has a monopoly. With reference to factors affecting pricing, explain why such pricing may not be possible.

Government and legal regulations are the critical constraint here: when a firm with monopoly power attempts to charge exorbitant prices for an essential commodity, the government can intervene and declare the drug an essential commodity, imposing a regulated price ceiling to protect public interest.
The factor of utility and demand does allow consumers to pay high prices for a life-saving drug (inelastic demand), but the government's role overrides market forces in such situations where exploitation is possible—preventing the firm from charging ₹200 when the cost is only ₹15.
The firm can realistically price the drug above ₹15 to cover costs and earn a profit, but pricing at ₹200 (over 13 times the cost) would likely invite regulatory action; thus, pricing decisions must consider not only cost and demand but also government regulations and social responsibility.

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Application Question

Medium difficulty • Concept in a practical situation

Medium

Question 5

Applied Concept

Ananya observes that her favourite biscuit brand 'Crunchies' now comes in a new resealable zip-lock pouch instead of the old open-flap packet. As a marketing student, explain how this change in packaging serves the functions of packaging.

Product Protection: The resealable zip-lock pouch protects the biscuits from moisture, air, and breakage after the packet is first opened—extending the product's shelf life and maintaining freshness during repeated use, which is a key function of packaging.
Product Differentiation: The innovative pouch packaging differentiates 'Crunchies' from competing biscuit brands still using ordinary packets; customers associate the superior packaging with better product quality and brand premium, influencing their buying preference.
Facilitating Use: A resealable zip-lock pouch is more convenient and user-friendly—customers can re-close it after use, preventing spillage and keeping the product fresh; this functional convenience increases customer satisfaction and encourages repeat purchase.

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Application Question

Medium difficulty • Concept in a practical situation

Medium

Question 6

Applied Concept

A television manufacturer currently holds 20% market share and aims to achieve 50% share in the next three years. The marketing manager proposes keeping prices low, widening distribution, and increasing advertising. Identify the marketing function being discussed and justify the strategy proposed.

The function being discussed is Marketing Planning: the marketing manager is developing a comprehensive action programme specifying objectives (50% market share in 3 years) and the strategies to achieve them—which is the essence of marketing planning as a function.
The pricing objective is market share leadership, which involves keeping prices low to attract a larger number of buyers; this is consistent with the theory that lower prices stimulate demand and help capture greater market share.
Widening distribution (place) ensures product availability in more retail outlets, making it convenient for more consumers to purchase; increased advertising (promotion) builds brand awareness and convinces potential customers—together the low price, wider distribution, and strong promotion form an integrated marketing mix strategy to achieve the growth target.

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Application Question

Medium difficulty • Concept in a practical situation

Medium

Question 7

Applied Concept

A new restaurant owner in a busy city wants to promote his restaurant without a large advertising budget. He decides to invite food bloggers for a complimentary meal and send a press release to a local newspaper about his innovative menu. Which promotion tools are being used? Explain their suitability.

Publicity is being used when the restaurant owner invites food bloggers and press to cover the restaurant: publicity is a non-paid, non-personal form of communication; when the bloggers and newspaper publish their reviews or news stories, the restaurant benefits from favourable coverage without bearing media costs.
Press Release is the public relations tool used: by sending a press release to the newspaper about the innovative menu, the owner presents accurate, positive information about the restaurant; a well-written press release can get media coverage that builds credibility far greater than a paid advertisement.
Both tools are highly suitable for a small business with a limited promotion budget: publicity is free (the restaurant only bears the cost of the complimentary meals), and the independent nature of reviews and news reports makes the content more credible and trustworthy to potential customers than paid advertising.

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Application Question

Hard difficulty • Concept in a practical situation

Hard

Question 8

Applied Concept

Ravi, a marketing manager for a woollen clothing brand, finds that sales drop sharply in summer. With reference to marketing management and demand management concepts, suggest strategies he can use to address this problem.

Ravi faces irregular (seasonal) demand—a challenge where marketing management must go beyond merely creating demand to actively managing its time pattern; the chapter states that for seasonal products, the marketer's job is to change the time pattern of demand.
Short-term incentives (sales promotion) can be used in the off-season: offering end-of-season discounts, rebates, or 'buy now for winter' promotional schemes encourages consumers to purchase woollen clothes in summer at reduced prices, spreading demand across the year.
Ravi could also invest in off-season brand-building advertising and product diversification (e.g., introducing lightweight woollen accessories usable in air-conditioned offices during summer), reducing dependence on winter-only demand and stabilising revenue throughout the year.

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Application Question

Medium difficulty • Concept in a practical situation

Medium

Question 9

Applied Concept

A multinational company sells mineral water under the brand name 'AquaPure'. The brand name is printed in a distinctive blue font with a water-drop logo. Explain the branding-related terms applicable here and state two advantages of branding for the company.

Brand: 'AquaPure' is the brand—a combination of name (AquaPure) and mark (blue font and water-drop logo) used to identify and differentiate the product from competitors; Brand Name is 'AquaPure' (the speakable, verbal component); Brand Mark is the water-drop logo and distinctive blue font (recognisable but not utterable).
Advantage 1—Product Differentiation: The brand 'AquaPure' distinguishes the company's mineral water from generic and competing brands; consumers can instantly identify and choose this brand over others, building customer loyalty and enabling the firm to create a unique market position.
Advantage 2—Differential Pricing: Because the brand creates a distinct identity and perceived quality, the company can charge a premium price over unbranded mineral water; brand equity justifies this price premium and contributes to higher revenue and profit margins.

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Application Question

Medium difficulty • Concept in a practical situation

Medium

Question 10

Applied Concept

The packaging of a popular snack food reads: Ingredients: potatoes, vegetable oil, spices; Best before: 6 months from manufacture; Manufactured by XYZ Foods Pvt. Ltd.; MRP ₹20; Contains no artificial colours. As a marketing student, identify and explain the labelling functions being fulfilled here.

Describing the product and specifying its contents: the label lists all ingredients (potatoes, vegetable oil, spices) and certifies no artificial colours—informing consumers exactly what they are consuming, fulfilling the most fundamental function of labelling.
Identification of the product or brand: the manufacturer's name (XYZ Foods Pvt. Ltd.) and MRP (₹20) are provided, helping consumers identify the brand and verify the legal price; this also helps distinguish the product from counterfeits in the market.
Providing legally required information: the 'Best before' date and MRP are mandatory requirements under food and consumer protection laws; such labels protect consumers' rights by ensuring they receive accurate information to make safe and informed purchase decisions.

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Chapter sections

Chapter marketing: Marketing | Application Questions

A company manufacturing air conditioners has been using door-to-door salespeople to sell its products. The sales manager argues that advertising should replace personal selling. With reference to the nature of the product and target customers, evaluate whether this shift is advisable.

Nisha buys Colgate toothpaste every week without comparing prices or brands. Her brother Rohan spends two weekends comparing models, prices, and features before buying a laptop. Identify the type of product each is buying and justify your answer.

A soft drink company is launching a new flavoured drink and decides to distribute free 100 ml sample pouches at a busy railway station along with a 'scratch and win' contest. Identify and explain the sales promotion tools being used and their advantages.

A pharmaceutical company has developed a life-saving drug that costs ₹15 per strip to manufacture. The company plans to price it at ₹200 per strip as it has a monopoly. With reference to factors affecting pricing, explain why such pricing may not be possible.

Ananya observes that her favourite biscuit brand 'Crunchies' now comes in a new resealable zip-lock pouch instead of the old open-flap packet. As a marketing student, explain how this change in packaging serves the functions of packaging.

A television manufacturer currently holds 20% market share and aims to achieve 50% share in the next three years. The marketing manager proposes keeping prices low, widening distribution, and increasing advertising. Identify the marketing function being discussed and justify the strategy proposed.

Ravi, a marketing manager for a woollen clothing brand, finds that sales drop sharply in summer. With reference to marketing management and demand management concepts, suggest strategies he can use to address this problem.

A multinational company sells mineral water under the brand name 'AquaPure'. The brand name is printed in a distinctive blue font with a water-drop logo. Explain the branding-related terms applicable here and state two advantages of branding for the company.

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