✓ Board-verified
Business Studies · 2026 · 3 marks
CBSE 2026 · Region 3 · Set 2 · Q23
(a). Explain the following functions of marketing: (i) Gathering and analysing market information (ii) Product designing and development (i)…
(a)
. Explain the following functions of marketing:
(i)
Gathering and analysing market information
(ii)
Product designing and development
(i)
Gathering and analysing market information:
OR
(b)
. Explain the following factors affecting price determination of
a product:
(i)
Product cost
(ii)
Pricing objectives
Marking-scheme solution
To gather and analyse market information is necessary to identify the
needs of the customers and take various decisions for the successful
marketing of the products and services.
This is important for making an analysis of the available opportunities
and threats as well as strengths and weaknesses of the organisation and
help in deciding what opportunities can best be pursued by it.
(ii)
Product designing and development:
The design of the product contributes to making the product attractive to
the target customers.
A good design can improve performance of a product and also give it a
competitive advantage in the market.
OR
Factors affecting price determination
(i)
Product cost:
Product cost includes the cost of producing, distributing and selling the
product. It determines the minimum level or the floor price at which the
product may be sold.
Generally, all marketing firms strive to cover all their costs, at least in
the long run. In addition, they aim at earning a margin of profit over and
above the costs.
(ii)
Pricing objectives:
When the firm’s objective is to maximise profits in the short run, it
would tend to charge maximum price for its products whereas if it is to
maximise profits in the long run, it would opt for a lower per unit price.
If a firm’s objective is to obtain larger share of the market, it will keep
the price of its products at lower levels; if the firm is surviving in a
competitive market, it may resort to discounting its products whereas if
the objective is attaining product quality leadership, higher prices are
charged.
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 2026 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.