✓ Board-verified
Business Studies · 2024 · 4 marks
CBSE 2024 · Region 5 · Set 2 · Q30
(a) Explain the following functions of marketing: (i) Customer support services (ii) Physical distribution
(a)
Explain the following functions of marketing:
(i)
Customer support services
(ii)
Physical distribution
OR
(b)
State any four factors which affect the fixation of price of a product
Marking-scheme solution
(i)
Customer support services
§ Customer support services include after sales services, handling customer
complaints and adjustments, procuring credit services, maintenance
services, technical services and consumer information.
§ These services aim at providing maximum satisfaction to the customers and
are very effective in bringing repeat sales from the customers and
developing brand loyalty for a product.
(ii)
Physical distribution
§ Physical Distribution involves two major decision areas:
decision regarding channels of distribution or the marketing intermediaries
(like wholesalers, retailers) to be used
physical movement of the product from where it is produced to a place
where it is required by the customers for their consumption or use.
§ It includes managing inventory (levels of stock of goods), storage and
warehousing and transportation of goods from one place to the other.
OR
Q. (b) State any four factors which affect the fixation of price of a product
Factors which affect the fixation of price of a product are: :
(i)
Product cost includes the cost of producing, distributing and selling the
product and sets the minimum level or the floor price at which the product may
be sold.
(ii)
The utility and demand sets the upper limit of price, which a buyer would
be prepared to pay as the buyer may be ready to pay up to the point where the
utility from the product is at least equal to the sacrifice made in terms of the
price paid.
(iii)
Extent of competition in the market affects the price as the price will tend
to reach the upper limit in case there is lesser degree of competition while
under conditions of free competition, the price will tend to be set at the lowest
level.
(iv)
Government and legal regulations affect the price as the government can
intervene and regulate the price of commodities to protect the interest of public
against unfair practices in the field of price fixing.
(v)
Pricing objectives affect the fixation of price as for short run profit
maximisation, the firm would tend to charge maximum price while if it is to
maximise total profit in the long run, it would opt for a lower per unit price.
(vi)
Marketing methods used such as distribution system, quality of salesmen
employed, quality and amount of advertising, sales promotion efforts, the type
of packaging etc.
More from Marketing
- Explain the following functions of marketing: (i) Customer support services (ii) Branding (iii) Product designing and development (iv) Marketing…2025
- Which of the following statements is incorrect about Personal Selling?2023
- ‘A good physical distribution system should provide for an accurate and speedy processing of orders in the absence of which goods will reach the…2023
- ‘X Ltd.' is engaged in the manufacturing of cars. The company surveyed the market and found that customers need a car which runs on eco-friendly fuel…2023
- From the picture given below identify the promotional tool used by the organisation to achieve its communication objectives:2025
- Match the various items of Column - I with the respective statement in Column-II. Column- I Column- II a. Advertising (i) Creates a positive image…2023
- In which of the following situations, a company will fix high price for its product?2023
- The pouch depicted below contains packets of different flavours of chips. Identify the level of packaging of the pouch:2026
CBSE Class 12 Business Studies past-paper question from the 2024 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.