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Business Studies · 2024 · 6 marks
CBSE 2024 · Region 4 · Set 3 · Q33
(a) Explain the following functions of marketing: (i) Product Designing and Development (ii) Physical Distribution (iii) Storage or Warehousing
(a)
Explain the following functions of marketing :
(i)
Product Designing and Development
(ii)
Physical Distribution
(iii)
Storage or Warehousing
OR
(b)
Explain the following factors affecting ‘Price determination’ :
(i)
Product Cost
(ii)
The Utility and Demand
(iii)
Extent of Competition in the market
Marking-scheme solution
(i)
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.
(ii)
Physical Distribution:
The two major decision areas under this function include (a)
channels of distribution or the marketing intermediaries to be
used and (b) physical movement of the product.
The important decision areas under physical distribution include
managing inventory ,storage and warehousing and
transportation of goods.
(iii)
Storage and Warehousing :
In order to maintain smooth flow of products in the market,
there is a need for proper storage of the products.
There is a need for storage of adequate stock of goods to protect
against unavoidable delays in delivery or to meet out
contingencies in the demand.
Explain the following factors affecting ‘Price determination’ :
(i)
Product Cost
(ii)
The Utility and Demand
(iii)
Extent of Competition in the market.
Factors affecting ‘Price determination’ :
(i)
Product Cost:
It includes the cost of producing, distributing and selling the
product and is the sum total of the fixed, variable and semi-
variable costs
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)
The Utility and Demand:
The utility provided by the product and the intensity of demand
of the buyer sets the upper limit of price, which a buyer would
be prepared to pay.
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:
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.
Competitors’ prices, their anticipated reactions, quality and
features of the competitive products must be considered before
fixing the price of a product.
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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.