CBSE Class 12 Business Studies Chapter 11: Marketing NCERT Solutions

Reviewed by NCERT Help Editorial Team · Updated on 29 Jul 2026

NCERT Solutions PDF Class 12 PDF

This chapter provides comprehensive NCERT Solutions for Class 12 Business Studies, focusing on 'Marketing'. It delves into the fundamental concepts of marketing, including the definitions of market, customer, and marketer. The solutions explain the core features of marketing, differentiating it from selling and outlining various marketing management philosophies such as the production, product, selling, marketing, and societal concepts. Key objectives and functions of marketing management are detailed, covering market information gathering, planning, product development, pricing, promotion, and distribution. The chapter also elaborates on the crucial concept of the marketing mix, its elements (product, place, price, promotion), and provides a detailed classification of products into consumer and industrial goods based on durability, buying behavior, and their role in production. These solutions are designed to help students grasp the intricacies of marketing as a business function and prepare effectively for their examinations.

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Quick info

Board	CBSE
Class	Class 12
Subject	Business Studies
Session	2026
Language	English
Type	NCERT Solutions
Chapter	11. Marketing (Revision Notes)

Chapter summary

Chapter 11, 'Marketing,' for CBSE Class 12 Business Studies, offers detailed NCERT Solutions. It covers the essence of marketing, distinguishing it from selling, and explores different marketing philosophies and management objectives. The solutions break down the functions of marketing and the components of the marketing mix (Product, Place, Price, Promotion). It also provides a clear classification of consumer and industrial goods, aiding students in understanding product strategies. This chapter is crucial for understanding how businesses connect with customers and manage their offerings.

Learning outcomes

Understand the fundamental concepts of market, customer, and marketer.
Differentiate between selling and marketing based on various parameters.
Identify and explain different marketing management philosophies.
Recognize the objectives and functions of marketing management.
Define and explain the elements of the marketing mix.
Classify products into consumer and industrial goods with examples.

Topics covered

Paper topics

Definition of Market
Definition of Customer
Definition of Marketer
Definition of Marketing
Features of Marketing
Marketing Management
Selling vs. Marketing
Marketing Management Philosophies
Objectives of Marketing Management
Functions of Marketing
Marketing Mix
Product Classification (Consumer & Industrial Goods)

Important topics

Marketing Mix (4 Ps)
Marketing Management Philosophies
Functions of Marketing
Difference between Selling and Marketing
Product Classification
Definition and Features of Marketing

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Questions and Solutions

1. Market

1. Market It refers to the 'set of potential and actual buyers of a product or service'.

Solution: A market is defined as the collection of all individuals or organizations who possess the potential to buy a product or service, as well as those who are currently purchasing it. It represents the entire group of buyers, both present and future, for a particular offering.

2. Customer

2. Customer It refers to the people or organisations that seek satisfaction of their needs and wants.

Solution: A customer is an individual or an organization that actively seeks to fulfill their specific needs and desires by acquiring goods or services. Their primary motivation is to achieve satisfaction through consumption or use.

3. Marketer or Seller

3. Marketer or Seller The marketer can be a person or organisation who make available the products or services and offer them to the customer with an intention of satisfying the customer with an intention of satisfying the customer needs and wants.

Solution: The marketer, who can be an individual or an organization, is the entity responsible for making products or services accessible to customers. Their core function is to offer these goods and services with the explicit aim of meeting and satisfying the needs and wants of the target customers.

4. Marketing

4. Marketing It is a social process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others.

According to JF Pyle, "Marketing is that phase of business activity through which the human wants are satisfied by the exchange of goods and services."

Solution: Marketing is fundamentally a social process. It enables individuals and groups to acquire the products and services they need and desire. This is achieved by creating valuable offerings, presenting them to the market, and facilitating a free exchange with others. As defined by J.F. Pyle, it is the business activity phase dedicated to satisfying human wants through the exchange of goods and services.

5. Features of Marketing

5. Features of Marketing (i) Need and want (ii) Creating a market offering (iii) Customer value (iv) Exchange Mechanism

Solution: The key features that characterize marketing are:

Need and Want: Marketing begins with identifying and understanding the fundamental needs and specific wants of consumers.
Creating a Market Offering: It involves designing and developing products or services that can satisfy these identified needs and wants.
Customer Value: Marketing aims to provide superior value to customers, ensuring their satisfaction and building loyalty.
Exchange Mechanism: The ultimate goal is to facilitate a smooth and mutually beneficial exchange of goods, services, or ideas between the marketer and the customer.

6. Marketing Management

6. Marketing Management It means management of all the activities related to marketing or in other words we can say, it refers to planning, organising, directing and controlling the activities which result in exchange of goods and services. Marketing management involves following activities (i) Choosing a target market (ii) Growing customers in target market

Solution: Marketing Management refers to the systematic process of planning, organizing, directing, and controlling all marketing-related activities. Its primary objective is to ensure the smooth exchange of goods and services. Key activities within marketing management include identifying and selecting a specific target market and developing strategies to attract and retain customers within that chosen market.

7. Difference between Selling and Marketing

7. Difference between Selling and Marketing The marketing and selling can be differentiated on the basis of (i) Scope (ii) Objective (iii) Focus (iv) Start and end (v) Efforts (vi) Supremacy (vi) Approach (viii) Demand

Solution: Selling and marketing are distinct concepts, differing significantly in several aspects:

Scope: Marketing has a broader scope, encompassing the entire process from identifying needs to post-sale services. Selling has a narrower scope, focusing primarily on the transfer of title or ownership of goods.
Objective: The objective of marketing is customer satisfaction and profit through satisfying needs. The objective of selling is to maximize sales volume, often regardless of customer satisfaction.
Focus: Marketing focuses on the customer and their needs. Selling focuses on the product and its features.
Start and End: Marketing starts before production and continues after sales. Selling typically starts after the product is produced and ends with the sale.
Efforts: Marketing efforts are directed towards creating demand and satisfying customers. Selling efforts are focused on persuading customers to buy the product.
Supremacy: In marketing, the customer is supreme. In selling, the product is often given supremacy.
Approach: Marketing uses an integrated approach, considering all elements of the marketing mix. Selling often takes a more isolated approach.
Demand: Marketing aims to create and stimulate demand. Selling primarily deals with existing demand.

8. Marketing Management Philosophies

8. Marketing Management Philosophies (i) Production concept (ii) Product concept (iii) Selling concept (iv) Marketing concept (v) Societal concept

Solution: Marketing management philosophies represent different approaches organizations take towards marketing. These are:

Production Concept: Focuses on mass production and improving efficiency, assuming consumers will favor products that are widely available and affordable.
Product Concept: Emphasizes improving the quality, performance, and features of the product, believing consumers will favor well-made products.
Selling Concept: Assumes that consumers will not buy enough of the firm's products unless it undertakes a large-scale selling and promotion effort.
Marketing Concept: Centers on identifying and satisfying the needs and wants of target markets more effectively than competitors.
Societal Concept: Extends the marketing concept by considering the long-term welfare of society and the environment alongside customer satisfaction and company profits.

9. Objectives of Marketing Management

9. Objectives of Marketing Management (i) Creation of demand (ii) Market share (iii) Goodwill (iv) Profitable sales volume through customer satisfaction

Solution: The primary objectives of marketing management are:

Creation of Demand: To stimulate and generate demand for the company's products and services.
Market Share: To achieve and maintain a desired share of the market relative to competitors.
Goodwill: To build and enhance the reputation and positive image of the company and its brands.
Profitable Sales Volume through Customer Satisfaction: To achieve sales targets and profitability by ensuring that customers are satisfied with the products and services received.

10. Functions of Marketing

10. Functions of Marketing (i) Gathering and analysing market information (ii) Market planning (iii) Product designing and development (iv) Standardisation and grading (v) Packaging and Labelling (vi) Branding (vii) Customer support services (viii) Pricing of products (ix) Promotion and selling (x) Physical distribution (xi) Transportation (xii) Storage and warehousing

Solution: Marketing encompasses a wide range of functions essential for bringing products and services to the market and satisfying customers. These include:

Gathering and Analysing Market Information: Collecting data about the market, customers, and competitors to inform decisions.
Market Planning: Developing strategies and plans to achieve marketing objectives.
Product Designing and Development: Creating new products or improving existing ones based on market needs.
Standardisation and Grading: Establishing quality standards and classifying products accordingly.
Packaging and Labelling: Designing attractive and informative packaging and labels.
Branding: Creating a unique name and identity for the product.
Customer Support Services: Providing after-sales service and support to customers.
Pricing of Products: Determining the right price for the product.
Promotion and Selling: Communicating the product's value and persuading customers to buy.
Physical Distribution: Managing the movement of goods from the producer to the consumer.
Transportation: Ensuring efficient movement of goods.
Storage and Warehousing: Storing goods safely until they are sold.

11. Role of Marketing

11. Role of Marketing (i) Role in firm (ii) Role in the economy

Solution: Marketing plays a vital role both within a business firm and in the broader economy:

Role in the Firm: Marketing is crucial for a firm's survival and growth. It helps in understanding customer needs, developing suitable products, creating demand, building brand image, generating revenue, and achieving profitability. It acts as a bridge between the firm and its customers.
Role in the Economy: Marketing contributes to economic development by creating employment opportunities, stimulating demand for goods and services, facilitating the flow of goods from producers to consumers, encouraging innovation, and improving the standard of living by making a variety of products available.

12. Marketing Mix

12. Marketing Mix The marketing mix refers to the ingredients or the tools or the variable which the marketeer mixes in order to interact with a particular market.

According to Philip Kotler, "Marketing mix are the set of - marketing tools that firm uses to pursue its marketing objectives in the target market."

Solution: The marketing mix is the combination of various marketing tools and variables that a firm uses to achieve its marketing objectives in the target market. Philip Kotler defines it as the set of marketing tools a company uses to pursue its marketing goals in the target market. These tools are blended together to create the desired market response.

13. Elements of Marketing Mix

13. Elements of Marketing Mix (i) Product (ii) Place (iii) Price (iv) Promotion

Solution: The marketing mix typically consists of four core elements, commonly known as the '4 Ps':

Product: This refers to the goods or services offered by the company to satisfy customer needs. It includes aspects like quality, design, features, brand name, and packaging.
Place (Distribution): This involves making the product available to the target customers. It includes decisions about distribution channels, coverage, location, and inventory.
Price: This is the amount of money customers must pay to obtain the product. It involves setting the list price, discounts, allowances, payment periods, and credit terms.
Promotion: This refers to the activities that communicate the merits of the product and persuade target customers to buy it. It includes advertising, personal selling, sales promotion, and public relations.

14. Product

14. Product The product element of the marketing mix signifies the tangible or intangible product offered to the customer which satisfies the need.

Solution: In the context of the marketing mix, 'Product' represents the item, whether tangible (a physical good) or intangible (a service), that a company offers to its customers. Its fundamental purpose is to satisfy a specific need or want that the customer possesses.

15. Classification of Product or Service

15. Classification of Product or Service Product or goods can be classified in two categories (i) Consumer goods (ii) Industrial goods

Solution: Products and services can be broadly categorized into two main types based on their end-use:

Consumer Goods: These are goods purchased by the final consumers for their personal consumption. Examples include food items, clothing, and household appliances.
Industrial Goods: These are goods purchased by producers for use in the production of other goods or services. Examples include raw materials, machinery, and components.

16. Consumer Goods

16. Consumer Goods (i) On the Basis of Durability (a) Durable products (b) Non-durable products (c) Services (ii) Classification Based on Consumers Buying Behaviour and Attitude (a) Convenient goods (b) Shopping goods (c) Speciality goods

Solution: Consumer goods can be classified in two primary ways:

On the Basis of Durability:
- Durable Products: These are goods that can be used over a long period, such as refrigerators or cars.
- Non-durable Products: These are goods that are typically consumed in one or a few uses, like soap or packaged food.
- Services: These are intangible items that provide satisfaction, such as banking, transportation, or healthcare.
Classification Based on Consumer Buying Behaviour and Attitude:
- Convenience Goods: Products that consumers buy frequently, immediately, and with minimal comparison and buying effort, like newspapers or basic food items.
- Shopping Goods: Products that consumers, in the process of selection and purchase, usually compare on attributes such as quality, price, style, and suitability. Examples include furniture and clothing.
- Speciality Goods: Products with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort, such as specific brands of cars or high-end electronics.

17. Industrial Product

17. Industrial Product Industrial products are used as input or raw material to produce consumer goods, e.g., tools, machinery etc. Features of industrial produced are (i) Number of buyer (ii) Channel of distribution (iii) Geographical concentration (iv) Derived demand (v) Technical consideration (vi) Reciprocal buying (vii) Leasing

Solution: Industrial products are goods and services used by organizations as inputs for producing other goods or services, or for facilitating their operations. Examples include raw materials, machinery, and components. Key features of industrial products include:

Number of Buyers: Typically fewer buyers compared to consumer goods, but they often purchase in larger quantities.
Channel of Distribution: Often involves shorter and more direct distribution channels.
Geographical Concentration: Buyers of industrial goods tend to be geographically concentrated.
Derived Demand: The demand for industrial goods is derived from the demand for the consumer goods they help produce.
Technical Consideration: Purchase decisions are often based on technical specifications and performance.
Reciprocal Buying: Sometimes, firms buy from other firms that also buy from them.
Leasing: Many industrial goods, especially expensive machinery, are often leased rather than purchased outright.

18. Types of Products

18. Types of Products Industrial goods are classified as (i) Material and parts (ii) Capital item (iii) Supplies and business services

Solution: Industrial goods are typically classified into three main categories:

Materials and Parts: These are goods used in the production process. They include raw materials (like cotton, iron ore) and manufactured components (like tires for cars, microchips).
Capital Items: These are long-lasting goods used in the production process, such as machinery, equipment, and buildings.
Supplies and Business Services: These are short-term goods and services that facilitate the operations of a company but are not part of the final product. Examples include lubricants, office supplies, repair services, and legal advice.

19. Product Mix

19. Product Mix It refers to important decisions related to the product such as quality of product, design of product packing of product etc.

Solution: The product mix refers to the complete set of all products and items that a particular seller offers for sale. Decisions related to the product mix are critical and include determining the quality of the product, its design, features, branding, packaging, and associated services. It encompasses all aspects that define the product offering to the market.

Common mistakes

Confusing the scope and objectives of selling with marketing.
Not clearly distinguishing between the different marketing philosophies.
Overlooking the importance of customer satisfaction in modern marketing.
Failing to understand the interrelationships between the elements of the marketing mix.

Revision tips

Focus on understanding the core definitions of market, customer, and marketer.
Create a table to compare and contrast selling and marketing.
Memorize the five marketing management philosophies and their key ideas.
List and briefly explain all the functions of marketing management.
Understand the '4 Ps' of the marketing mix and how they work together.
Practice classifying different types of goods (consumer vs. industrial, durable vs. non-durable).

Practice MCQs

Q1. What is the primary definition of a 'market' in marketing terms?

Q2. Which of the following is NOT a core feature of marketing?

Q3. The 'Societal Concept' of marketing management emphasizes:

Q4. Which element of the marketing mix refers to the tangible or intangible offering to the customer?

Q5. Industrial goods like raw materials and components fall under which category?

Frequently asked questions

What is the core difference between selling and marketing?

Selling focuses on the seller's needs to convert products into cash, often using persuasion. Marketing focuses on the buyer's needs, aiming to satisfy them through product creation, pricing, promotion, and distribution, with profit achieved through customer satisfaction.

What are the main elements of the Marketing Mix?

The four main elements of the marketing mix, often called the '4 Ps', are Product (the good or service offered), Place (distribution channels), Price (the cost to the customer), and Promotion (communication to persuade purchase).

Can you explain the 'Societal Concept' of marketing?

The Societal Concept is an advanced marketing philosophy that considers not only customer satisfaction and company profits but also the long-term well-being and interests of society and the environment.

How are consumer goods classified in marketing?

Consumer goods are classified based on durability (durable, non-durable, services) and buying behavior (convenience goods, shopping goods, specialty goods).

What is the significance of 'Derived Demand' for industrial products?

Derived demand means the demand for industrial goods is derived from the demand for the final consumer goods they help produce. For example, demand for steel increases if the demand for cars increases.

How do these NCERT solutions help in preparing for exams?

These solutions provide clear, concise, and comprehensive explanations of key marketing concepts, definitions, functions, and classifications directly aligned with the NCERT syllabus, aiding in focused revision and understanding.

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