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Business Studies · 2026 · 6 marks
CBSE 2026 · Region 1 · Set 1 · Q34
(a) Explain the following elements of Marketing Mix: (i) Product (ii) Price (iii) Promotion
(a)
Explain the following elements of Marketing Mix :
(i)
Product
(ii)
Price
(iii)
Promotion
OR
(b)
Explain the following components of physical distribution :
(i)
Order processing
(ii)
Warehousing
(iii)
Inventory control
Marking-scheme solution
(i)
Product:
• Product means goods or services or anything of value
which is offered to the market for sale. It also includes the
extended product or what is offered to the customers by
way of after sales services, handling complaints,
availability of spare parts.
• The important product decisions include deciding about
the features, quality, packaging, labelling and branding of
the products.
(ii)
Price:
• Price is the amount of money customers have to pay to
obtain the product. Generally, the level of price affects the
level of demand.
• It involves determining objectives of price setting and
analysis of factors affecting price to make decisions
regarding the basic price of the product, discount to
customers, traders, credit terms etc.
(iii)
Promotion:
• Promotion of products and services include activities that
communicate information (availability, features, merits)
of the products and services to the target customers and
persuading them to buy it.
• Most marketing organisations undertake various
promotional activities and spend substantial amounts of
money on the promotion of their goods by using a number
of tools such as advertising, personal selling, public
relations and sales promotion techniques.
OR
Q (b) Explain the following components of physical distribution:
(i)
Order Processing
(ii)
Warehousing
(iii)
Inventory Control
(i)
Order Processing
• Products flow from manufacturers to customers via channel
members while orders flow in the reverse direction, from
customers to the manufacturers.
• A good physical distribution system should provide for an
accurate and speedy processing of orders, in the absence of which
goods would reach the customers late or in wrong quantity or
specifications leading to customer dissatisfaction.
(ii)
Warehousing
• Warehousing refers to the act of storing and assorting products
in order to create time utility in them and its basic purpose is
to arrange placement of goods and provide facilities to store
them.
• The need for warehousing arises because there may be
difference between the time a product is produced and the time
it is required for consumption.
(iii)
Inventory Control
• An important decision in relation to inventory is deciding
about the level of inventory. Higher the level of inventory,
higher will be the level of service to customers but the cost of
carrying the inventory will also be high because lot of capital
would be tied up in the stock. Thus, a balance is to be
maintained in respect of the cost and customer satisfaction.
• The decision regarding level of inventory involves prediction
about the demand for the product. A correct estimate of the
demand helps to hold inventory and cost level down to a
minimum.
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CBSE Class 12 Business Studies past-paper question from the 2026 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.