MORE 100 MCQS Chapter 11: Marketing

CBSE BOARD 2024
1. Marketing is defined as a social process by which individuals and groups obtain what they need and want through:
A) Forcing customers to buy
B) Creating, offering, and freely exchanging products and services of value with others
C) Aggressive advertising and sales promotion
D) Manufacturing goods at the lowest possible cost
Correct Answer: B) Creating, offering, and freely exchanging products and services of value with others.
Board Tip: This is the classic Philip Kotler definition. Marketing is about exchanging "value".
HOTS QUESTION
2. Which of the following can be marketed?
A) Physical Goods and Services only
B) Ideas and Experiences only
C) Events and Properties only
D) All of the above (Goods, Services, Ideas, Places, Events, etc.)
Correct Answer: D) All of the above (Goods, Services, Ideas, Places, Events, etc.).
Logic: Anything that is of value to the buyer can be marketed. For example, "Incredible India" markets a place, and "Polio Eradication" markets an idea.
COMPETENCY BASED
3. 'SuperFast Motors' believes that consumers will favor products that are widely available and highly affordable. Therefore, management focuses on mass production and distribution efficiency. Which marketing management philosophy is the company following?
A) Product Concept
B) Selling Concept
C) Production Concept
D) Marketing Concept
Correct Answer: C) Production Concept.
Analysis: The keywords here are "widely available", "affordable", and "mass production". This is the oldest concept of marketing.
CBSE BOARD 2023
4. The philosophy that assumes consumers will not buy enough of the firm's products unless the firm undertakes a large-scale promotional and aggressive persuasion effort is the:
A) Selling Concept
B) Marketing Concept
C) Societal Marketing Concept
D) Product Concept
Correct Answer: A) Selling Concept.
Note: This concept focuses on "pushing" the product to the customer through heavy advertising and salesmanship, regardless of whether the customer actually needs it.
ASSERTION-REASON
5. Assertion (A): Under the Product Concept, firms constantly strive to improve the quality of their products.
Reason (R): The Product Concept assumes that consumers favor products that offer the most quality, performance, or innovative features.
A) Both (A) and (R) are true and (R) is the correct explanation.
B) Both (A) and (R) are true but (R) is NOT the explanation.
C) (A) is true, but (R) is false.
D) (A) is false, but (R) is true.
Correct Answer: A) Both (A) and (R) are true and (R) is the correct explanation.
CBSE SAMPLE PAPER
6. The 'Marketing Concept' dictates that the primary goal of a business should be to:
A) Maximize profit through maximum sales volume
B) Identify the needs of the target market and satisfy them better than competitors
C) Produce the highest quality product possible regardless of customer demand
D) Focus entirely on environmental sustainability
Correct Answer: B) Identify the needs of the target market and satisfy them better than competitors.
Board Tip: The Marketing Concept states that "Customer Satisfaction" is the key to organizational success.
HOTS QUESTION
7. A company manufacturing automobiles decides to install expensive pollution control devices in all its vehicles to reduce harmful emissions, even though it reduces their profit margin slightly. Which philosophy is guiding them?
A) Product Concept
B) Selling Concept
C) Marketing Concept
D) Societal Marketing Concept
Correct Answer: D) Societal Marketing Concept.
Logic: This concept extends the Marketing Concept by adding that customer satisfaction must be delivered in a way that preserves or enhances the consumer's and the society's well-being (e.g., eco-friendly, ethical).
CASE SCENARIO
8. An electronics company produces smartphones. Instead of asking customers what features they want, the engineers pack the phone with the most advanced, complex technology available, making it very expensive. The phone fails in the market because it is too complicated for the average user. The company suffered from "Marketing Myopia" due to following the:
A) Production Concept
B) Product Concept
C) Selling Concept
D) Societal Marketing Concept
Correct Answer: B) Product Concept.
Analysis: The company became blindly obsessed with their own product's quality/features, completely ignoring what the customer actually needed or could use.
CBSE BOARD 2022
9. Which of the following is the focal point of the 'Selling Concept'?
A) Existing Product
B) Customer Needs
C) Social Welfare
D) Production Process
Correct Answer: A) Existing Product.
Note: The Selling Concept starts at the factory with the *existing products* and tries to figure out how to sell them. The Marketing Concept starts with the *customer's needs* and then develops a product to match.
COMPETENCY BASED
10. "Standardization" is an important function of marketing. It implies:
A) Classifying agricultural goods into different categories based on size or quality.
B) Designing the package for the product.
C) Producing goods to predetermined specifications to ensure uniformity and consistency in quality.
D) Giving a unique name or symbol to the product.
Correct Answer: C) Producing goods to predetermined specifications to ensure uniformity and consistency in quality.
Analysis: Standardization ensures that buyers know exactly what to expect (e.g., an ISI marked appliance or an exact size of a battery).
CBSE BOARD 2024
11. The process of classifying products into different groups on the basis of some of its important characteristics (like quality, size, etc.) is called:
A) Standardization
B) Grading
C) Branding
D) Packaging
Correct Answer: B) Grading.
Board Tip: Grading is mostly used for agricultural products (like apples sorted by size or wheat sorted by quality), whereas Standardization is used for manufactured goods.
ASSERTION-REASON
12. Assertion (A): Selling is a much wider concept than Marketing.
Reason (R): Selling focuses on the needs of the seller, while marketing focuses on the needs of the buyer.
A) Both (A) and (R) are true and (R) is the correct explanation.
B) Both (A) and (R) are true but (R) is NOT the explanation.
C) (A) is false, but (R) is true.
D) Both (A) and (R) are false.
Correct Answer: C) (A) is false, but (R) is true.
Logic: Marketing is the much wider concept. Selling is just one small part of the entire marketing process.
HOTS QUESTION
13. Which function of marketing helps in overcoming the "time gap" between the production of goods and their actual consumption?
A) Transportation
B) Storage and Warehousing
C) Customer Support Services
D) Market Planning
Correct Answer: B) Storage and Warehousing.
Board Tip: Goods like wheat are produced seasonally but consumed year-round. Warehousing stores them safely until demanded, bridging the time gap.
CASE SCENARIO
14. A mobile phone manufacturer notices that its sales are dropping. The marketing team conducts a survey and discovers that customers want longer battery life. The team uses this data to decide their future strategy. Which marketing function is being performed here?
A) Product Designing and Development
B) Gathering and Analyzing Market Information
C) Promotion
D) Pricing of Product
Correct Answer: B) Gathering and Analyzing Market Information.
Analysis: This is the very first step of marketing (Market Research)—understanding the market environment and identifying customer needs.
CBSE BOARD 2021
15. What is the ultimate objective or end goal of the 'Selling Concept'?
A) Profit through customer satisfaction
B) Profit through social welfare
C) Profit through maximization of sales volume
D) Profit through product innovation
Correct Answer: C) Profit through maximization of sales volume.
HOTS QUESTION
16. The function of assigning a specific name, sign, or symbol to a product to differentiate it from competitors' products is known as:
A) Packaging
B) Labeling
C) Grading
D) Branding
Correct Answer: D) Branding.
CBSE SAMPLE PAPER
17. Providing post-sale assistance, handling customer complaints, providing maintenance services, and offering warranties are all part of which marketing function?
A) Physical Distribution
B) Customer Support Services
C) Promotion
D) Product Designing
Correct Answer: B) Customer Support Services.
Note: In the modern era, retaining a customer is just as important as getting a new one. Excellent support builds brand loyalty.
COMPETENCY BASED
18. A company decides to transport its fresh flowers from Bangalore to Delhi using cargo planes instead of trucks to prevent spoilage. Which marketing function is explicitly being optimized here?
A) Storage and Warehousing
B) Transportation
C) Grading
D) Pricing
Correct Answer: B) Transportation.
Analysis: Transportation provides "place utility" by moving goods from the place of production to the place of consumption safely and timely.
CBSE BOARD 2023
19. Which function of marketing involves informing the customers about the firm's product, its features, and persuading them to buy it?
A) Promotion
B) Branding
C) Physical Distribution
D) Labeling
Correct Answer: A) Promotion.
ASSERTION-REASON
20. Assertion (A): Labeling acts as a silent salesman for the product.
Reason (R): A label provides crucial information about the product's ingredients, usage instructions, manufacturing date, and statutory warnings directly to the consumer.
A) Both (A) and (R) are true and (R) is the correct explanation.
B) Both (A) and (R) are true but (R) is NOT the explanation.
C) (A) is true, but (R) is false.
D) (A) is false, but (R) is true.
Correct Answer: A) Both (A) and (R) are true and (R) is the correct explanation.
HOTS QUESTION
21. Anyone who takes a more active role in the process of exchange is called a:
A) Consumer
B) Marketer
C) Competitor
D) Regulator
Correct Answer: B) Marketer.
Logic: Normally the seller is the marketer, but if a buyer is desperately seeking a rare good and advertises for it, the buyer becomes the marketer.
CBSE BOARD 2022
22. Which marketing management philosophy believes that "if the product is good and reasonably priced, it will sell itself without any aggressive promotion"?
A) Selling Concept
B) Product Concept
C) Marketing Concept
D) Societal Concept
Correct Answer: B) Product Concept.
CASE SCENARIO
23. 'GreenEarth Ltd.' manufactures biodegradable plates. They set up camps to educate rural communities about the dangers of plastic and distribute their biodegradable products at a heavily subsidized rate. The core philosophy of GreenEarth Ltd. aligns with:
A) Selling Concept
B) Production Concept
C) Societal Marketing Concept
D) Product Concept
Correct Answer: C) Societal Marketing Concept.
Analysis: The focus is not just on fulfilling a need, but doing so in a way that actively protects and benefits society and the environment.
CBSE BOARD 2021
24. What is considered the "Exchange Mechanism" in marketing?
A) Exchanging raw materials with competitors
B) The process through which two or more parties come together to obtain the desired product or service from someone by offering something in return
C) Exchanging old machinery for new machinery
D) Returning defective goods
Correct Answer: B) The process through which two or more parties come together to obtain the desired product or service from someone by offering something in return.
Board Tip: The essence of marketing is the exchange process.
FINAL MASTER QUESTION
25. Match the Marketing Management Philosophy with its Starting Point:
(i) Selling Concept
(ii) Marketing Concept
(iii) Production Concept

With:
(a) Target Market
(b) Factory
(c) Factory
A) (i)-(b), (ii)-(a), (iii)-(c)
B) (i)-(a), (ii)-(b), (iii)-(c)
C) (i)-(c), (ii)-(a), (iii)-(b)
D) Both A and C are functionally correct
Correct Answer: D) Both A and C are functionally correct.
Final Analysis: Both Production, Product, and Selling concepts start at the "Factory" focusing on the producer's capabilities. The Marketing and Societal concepts are the only ones that start with the "Target Market" (the customer).
CBSE BOARD 2024
26. The set of marketing tools that a firm uses to pursue its marketing objectives in the target market is known as the:
A) Marketing Mix
B) Product Mix
C) Promotional Mix
D) Marketing Strategy
Correct Answer: A) Marketing Mix.
Board Tip: The Marketing Mix consists of the famous 4 Ps: Product, Price, Place, and Promotion.
HOTS QUESTION
27. The elements of the Marketing Mix are considered to be:
A) Uncontrollable environmental factors
B) Controllable factors within the hands of the marketer
C) Determined exclusively by the government
D) Fixed and rigid long-term plans
Correct Answer: B) Controllable factors within the hands of the marketer.
Logic: A marketer can change the product features, adjust the price, change the packaging, or run a new ad campaign. These are internal, controllable variables.
COMPETENCY BASED
28. In marketing terms, a "Product" is best described as:
A) Only a physical, tangible item
B) A bundle of utilities that can be used to satisfy human needs and wants
C) The brand name of the company
D) The raw materials used in manufacturing
Correct Answer: B) A bundle of utilities that can be used to satisfy human needs and wants.
Analysis: A product is not just physical; it includes services, ideas, and the psychological satisfaction it provides to the consumer.
CBSE BOARD 2023
29. The part of a brand which can be recognized but is not utterable (cannot be spoken) is called a:
A) Brand Name
B) Trade Mark
C) Brand Mark
D) Patent
Correct Answer: C) Brand Mark.
Note: Examples include the Nike "Swoosh" or the Apple logo. They are visual symbols, not spoken words.
ASSERTION-REASON
30. Assertion (A): Every brand is a trademark, but every trademark is not a brand.
Reason (R): A trademark is a brand or part of a brand that is given legal protection against its use by other firms.
A) Both (A) and (R) are true and (R) is the correct explanation.
B) Both (A) and (R) are true but (R) is NOT the explanation.
C) (A) is false, but (R) is true.
D) Both (A) and (R) are false.
Correct Answer: C) (A) is false, but (R) is true.
Logic: The correct statement is "All trademarks are brands, but all brands are not trademarks" because a brand only becomes a trademark when it is legally registered.
CBSE SAMPLE PAPER
31. What is the primary advantage of branding to marketers?
A) It guarantees government subsidies
B) It helps in product differentiation and enables differential pricing
C) It eliminates the need for advertising
D) It reduces the cost of production
Correct Answer: B) It helps in product differentiation and enables differential pricing.
Board Tip: A strong brand allows a company to charge a premium price compared to unbranded competitors.
HOTS QUESTION
32. Which of the following is NOT a characteristic of a good brand name?
A) It should be short, easy to pronounce, spell, and remember.
B) It should suggest the product's benefits or qualities.
C) It should be highly complex to show exclusivity.
D) It should be distinctive.
Correct Answer: C) It should be highly complex to show exclusivity.
Logic: Complex names are hard for consumers to remember and pronounce, defeating the purpose of branding.
CASE SCENARIO
33. 'MintyFresh' toothpaste comes in a plastic tube. This plastic tube represents which level of packaging?
A) Primary Packaging
B) Secondary Packaging
C) Transportation Packaging
D) Tertiary Packaging
Correct Answer: A) Primary Packaging.
Analysis: Primary packaging refers to the product's immediate container. It stays with the product until it is entirely consumed.
CBSE BOARD 2022
34. The cardboard box in which a tube of shaving cream is kept (which is usually thrown away when the consumer starts using the cream) is an example of:
A) Primary Packaging
B) Secondary Packaging
C) Transportation Packaging
D) Brand Packaging
Correct Answer: B) Secondary Packaging.
COMPETENCY BASED
35. A corrugated box containing 50 units of shampoo bottles sent from the factory to the wholesaler is an example of:
A) Secondary Packaging
B) Logistics Packaging
C) Transportation Packaging
D) Primary Packaging
Correct Answer: C) Transportation Packaging.
Analysis: This packaging is strictly necessary for storage, identification, and safe transportation of bulk goods.
CBSE BOARD 2021
36. Which element of the Product Mix is often referred to as the "Silent Salesman"?
A) Branding
B) Labeling
C) Packaging
D) Grading
Correct Answer: C) Packaging.
Note: Attractive packaging grabs attention on supermarket shelves and persuades customers to buy, acting just like a salesman.
ASSERTION-REASON
37. Assertion (A): Labeling helps in grading of products.
Reason (R): Marketers can use different labels to indicate different qualities of the same product, such as 'Red Label' and 'Green Label' tea.
A) Both (A) and (R) are true and (R) is the correct explanation.
B) Both (A) and (R) are true but (R) is NOT the explanation.
C) (A) is true, but (R) is false.
D) (A) is false, but (R) is true.
Correct Answer: A) Both (A) and (R) are true and (R) is the correct explanation.
HOTS QUESTION
38. The statutory warning "Smoking is injurious to health" printed on cigarette packets is an example of which function of labeling?
A) Describing the product and its contents
B) Identification of the brand
C) Providing information required by law
D) Promotion of the product
Correct Answer: C) Providing information required by law.
Logic: Governments legally mandate certain warnings or nutritional facts to be printed on labels to protect consumers.
CBSE BOARD 2024
39. The amount of money paid by a buyer (or received by a seller) in consideration of the purchase of a product or service is called:
A) Value
B) Cost
C) Price
D) Revenue
Correct Answer: C) Price.
CASE SCENARIO
40. In determining the price of a product, which factor sets the "floor" (the minimum possible price)?
A) Customer Demand
B) Competitor's Price
C) Product Cost
D) Government Regulations
Correct Answer: C) Product Cost.
Analysis: A company cannot survive in the long run if it prices its product below the cost it takes to manufacture and sell it. Hence, cost sets the floor price.
CBSE SAMPLE PAPER
41. While product cost sets the lower limit for price, what sets the "upper limit" (the maximum price a firm can charge)?
A) The utility and demand for the product
B) The advertising budget
C) The packaging design
D) The number of shareholders
Correct Answer: A) The utility and demand for the product.
Board Tip: A buyer will not pay more than the utility (satisfaction) they derive from the product, regardless of the company's costs.
COMPETENCY BASED
42. If a company faces very high competition and there are many substitutes available in the market, it will generally have to fix its price:
A) Very high
B) Based on its monopoly power
C) Lower or competitive to retain market share
D) Ignoring the competitors completely
Correct Answer: C) Lower or competitive to retain market share.
CBSE BOARD 2023
43. When a company wants to capture a large market share quickly by launching a product at a very low initial price, it is using a:
A) Price Skimming strategy
B) Penetration Pricing strategy
C) Premium Pricing strategy
D) Cost-plus Pricing strategy
Correct Answer: B) Penetration Pricing strategy.
ASSERTION-REASON
44. Assertion (A): The government can intervene and regulate the prices of essential commodities like life-saving drugs.
Reason (R): The primary objective of the government is to ensure that essential goods are affordable and not monopolized for excessive profit.
A) Both (A) and (R) are true and (R) is the correct explanation.
B) Both (A) and (R) are true but (R) is NOT the explanation.
C) (A) is true, but (R) is false.
D) (A) is false, but (R) is true.
Correct Answer: A) Both (A) and (R) are true and (R) is the correct explanation.
HOTS QUESTION
45. 'XYZ Electronics' launches a revolutionary new smartphone with features no competitor has. They set the initial price exceptionally high to recover R&D costs quickly before competitors enter the market. This pricing objective is known as:
A) Market Share Maximization
B) Surviving in a competitive market
C) Skimming the Market (Obtaining market leadership)
D) Product Quality Leadership
Correct Answer: C) Skimming the Market (Obtaining market leadership).
Logic: "Skimming the cream" means charging high prices initially to maximize short-term profit when you have a unique advantage.
CASE SCENARIO
46. The introduction of tetra packs for milk and juices drastically increased their shelf life without refrigeration. This highlights packaging's role in:
A) Product Identification
B) Product Promotion
C) Innovational Opportunity
D) Grading
Correct Answer: C) Innovational Opportunity.
Analysis: Innovative packaging can change how a product is consumed and stored, opening massive new markets for the company.
CBSE BOARD 2021
47. A brand name provides legal protection to the creator. If another company uses the exact same registered brand name, it is liable for:
A) Breach of contract
B) Trademark Infringement
C) Price manipulation
D) Insider trading
Correct Answer: B) Trademark Infringement.
HOTS QUESTION
48. Which of the following is NOT a component of the 'Product Mix'?
A) Branding
B) Packaging
C) Labeling
D) Warehousing
Correct Answer: D) Warehousing.
Logic: Warehousing is a component of the 'Place Mix' (Physical Distribution), not the Product Mix.
CBSE BOARD 2022
49. Labeling provides information such as the manufacturer's name, expiry date, and batch number. This primarily fulfills the function of:
A) Grading of products
B) Promoting the product
C) Describing the product and specifying its contents
D) Providing price discounts
Correct Answer: C) Describing the product and specifying its contents.
FINAL MASTER QUESTION
50. Match the element of the Marketing Mix (4 Ps) with its core focus:
(i) Product
(ii) Price
(iii) Place
(iv) Promotion

With:
(a) Communicating with target customers
(b) Determining the value exchange for the offering
(c) Physical distribution and channels
(d) Features, branding, packaging, and labeling
A) (i)-(d), (ii)-(b), (iii)-(c), (iv)-(a)
B) (i)-(b), (ii)-(d), (iii)-(a), (iv)-(c)
C) (i)-(d), (ii)-(c), (iii)-(b), (iv)-(a)
D) (i)-(a), (ii)-(b), (iii)-(c), (iv)-(d)
Correct Answer: A) (i)-(d), (ii)-(b), (iii)-(c), (iv)-(a).
Final Analysis: Memorizing this structure is critical. It serves as the foundation for answering any case study related to the Marketing Mix!
CBSE BOARD 2024
51. The set of firms and individuals that take title, or assist in transferring title, to particular goods or services as they move from the producers to the consumers is called:
A) Promotional Mix
B) Channels of Distribution
C) Transportation Network
D) Supply Chain
Correct Answer: B) Channels of Distribution.
Board Tip: They bridge the geographical and time gaps between producers and consumers.
HOTS QUESTION
52. If a company sells its products directly to the consumers through its own retail outlets, internet selling, or mail order, it is using a:
A) One-level channel
B) Two-level channel
C) Zero-level (Direct) channel
D) Three-level channel
Correct Answer: C) Zero-level (Direct) channel.
Logic: Zero-level means there are zero intermediaries (like wholesalers or retailers) between the manufacturer and the consumer.
COMPETENCY BASED
53. A manufacturer of perishable goods like fresh milk and bakery items should ideally choose which type of distribution channel?
A) A very long, indirect channel
B) A direct or short channel
C) Only an exclusive national distributor
D) A three-level channel
Correct Answer: B) A direct or short channel.
Analysis: Perishable goods will spoil if they pass through multiple intermediaries over several days, so they must reach the consumer as quickly as possible.
CBSE BOARD 2023
54. Which of the following is NOT a major component of 'Physical Distribution'?
A) Order Processing
B) Warehousing
C) Inventory Control
D) Advertising
Correct Answer: D) Advertising.
Note: Advertising is a component of the 'Promotion Mix', not the physical movement of goods.
ASSERTION-REASON
55. Assertion (A): Maintaining a very high level of inventory ensures high customer service but reduces profitability.
Reason (R): High inventory ensures goods are always available when demanded, but it also ties up huge amounts of capital and increases storage costs.
A) Both (A) and (R) are true and (R) is the correct explanation.
B) Both (A) and (R) are true but (R) is NOT the explanation.
C) (A) is true, but (R) is false.
D) (A) is false, but (R) is true.
Correct Answer: A) Both (A) and (R) are true and (R) is the correct explanation.
CBSE SAMPLE PAPER
56. Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor is known as:
A) Publicity
B) Personal Selling
C) Advertising
D) Sales Promotion
Correct Answer: C) Advertising.
Board Tip: The key identifiers for advertising are "paid form", "non-personal" (mass media), and "identified sponsor".
HOTS QUESTION
57. Which promotional tool involves face-to-face interaction between the seller and the prospective buyer?
A) Public Relations
B) Personal Selling
C) Advertising
D) Publicity
Correct Answer: B) Personal Selling.
Logic: It allows for direct feedback, customization of the message, and relationship building.
CASE SCENARIO
58. A company includes a "Scratch and Win" card inside every pack of its tea to immediately boost its dropping sales during a festival. This short-term incentive is an example of:
A) Advertising
B) Personal Selling
C) Public Relations
D) Sales Promotion
Correct Answer: D) Sales Promotion.
Analysis: Sales promotions are short-term, immediate incentives designed to stimulate a quick jump in sales (like discounts, contests, or free samples).
CBSE BOARD 2022
59. Which of the following is an objection often raised against Advertising?
A) It helps in mass production
B) It educates the consumers
C) It multiplies needs and encourages materialism
D) It increases market competition
Correct Answer: C) It multiplies needs and encourages materialism.
Note: Critics argue that ads make people desire things they don't actually need, promoting a culture of excessive consumption.
COMPETENCY BASED
60. If a company lacks financial strength and cannot afford to set up its own retail outlets across the country, which channel strategy must it adopt?
A) Direct Selling (Zero-level)
B) Indirect Channel (Using wholesalers and retailers)
C) Giving away products for free
D) Exporting only
Correct Answer: B) Indirect Channel (Using wholesalers and retailers).
Analysis: Setting up direct distribution requires massive capital. Weaker companies must rely on existing middlemen to distribute their goods.
CBSE BOARD 2021
61. A local newspaper writes an article praising a new restaurant's eco-friendly practices. The restaurant did not pay for this article. This is an example of:
A) Advertising
B) Sales Promotion
C) Publicity
D) Personal Selling
Correct Answer: C) Publicity.
Board Tip: Publicity is a non-paid form of communication. The sponsor is not identified, and the company does not directly control the message.
ASSERTION-REASON
62. Assertion (A): Personal selling is highly flexible compared to advertising.
Reason (R): In personal selling, the salesperson can adjust their sales pitch dynamically based on the customer's reactions and specific questions.
A) Both (A) and (R) are true and (R) is the correct explanation.
B) Both (A) and (R) are true but (R) is NOT the explanation.
C) (A) is true, but (R) is false.
D) (A) is false, but (R) is true.
Correct Answer: A) Both (A) and (R) are true and (R) is the correct explanation.
HOTS QUESTION
63. Which tool of the promotion mix involves managing a company's image, handling rumors, and building good relations with the media and society?
A) Advertising
B) Public Relations (PR)
C) Direct Marketing
D) Sales Promotion
Correct Answer: B) Public Relations (PR).
Logic: PR focuses on building a favorable corporate image and managing public opinion, not just selling a specific product.
CBSE BOARD 2024
64. "Buy two shirts and get one free" or "20% extra in the same pack" are examples of:
A) Advertising strategies
B) Sales Promotion activities
C) Public Relations campaigns
D) Personal Selling techniques
Correct Answer: B) Sales Promotion activities.
CASE SCENARIO
65. 'Heavy Machinery Ltd.' manufactures highly complex, customized industrial robots that cost ₹10 Crores each. Which promotional tool should they rely on the most to explain the technical details and negotiate the price?
A) Television Advertising
B) Sales Promotion (Discount Coupons)
C) Personal Selling
D) Billboards
Correct Answer: C) Personal Selling.
Analysis: Highly technical, customized, and expensive industrial products require expert salespeople to explain features, answer doubts, and close the deal.
CBSE SAMPLE PAPER
66. A manufacturer selling its products through a network of Wholesalers, who then sell to Retailers, who finally sell to Consumers, is utilizing a:
A) One-level channel
B) Two-level channel
C) Three-level channel
D) Direct channel
Correct Answer: B) Two-level channel.
Board Tip: Count the intermediaries. Wholesaler (1) + Retailer (2) = Two-level channel.
HOTS QUESTION
67. The time gap between the receipt of an order from the customer and the delivery of goods is called:
A) Order processing cycle
B) Warehousing time
C) Inventory lead time
D) Transportation delay
Correct Answer: A) Order processing cycle.
Logic: A good physical distribution system must have a fast and accurate order processing cycle to ensure customer satisfaction.
COMPETENCY BASED
68. If a company manufactures a simple, low-priced consumer product like a bathing soap that is purchased frequently by millions of consumers nationwide, the most appropriate channel of distribution is:
A) Direct Selling (Zero-level)
B) Long, indirect channels (Wholesalers & Retailers)
C) Personal Selling exclusively
D) Selling only through the company website
Correct Answer: B) Long, indirect channels (Wholesalers & Retailers).
Analysis: Low unit value and massive, scattered consumer demand make direct selling impossible. The company must use an extensive network of middlemen.
CBSE BOARD 2023
69. Which of the following limits the scope of advertising?
A) It reaches a massive audience.
B) It is a one-way communication lacking direct feedback.
C) It enhances product image.
D) It allows the use of colors and sound.
Correct Answer: B) It is a one-way communication lacking direct feedback.
ASSERTION-REASON
70. Assertion (A): Public Relations is an important tool even for non-profit organizations and government agencies.
Reason (R): Every organization needs to maintain a positive public image, handle grievances, and build goodwill with stakeholders to survive and succeed.
A) Both (A) and (R) are true and (R) is the correct explanation.
B) Both (A) and (R) are true but (R) is NOT the explanation.
C) (A) is true, but (R) is false.
D) (A) is false, but (R) is true.
Correct Answer: A) Both (A) and (R) are true and (R) is the correct explanation.
HOTS QUESTION
71. "It is an impersonal form of communication and its cost per person reached is very low." This statement refers to:
A) Personal Selling
B) Advertising
C) Sales Promotion
D) Direct Mail
Correct Answer: B) Advertising.
Board Tip: While the total cost of a TV ad is high, because it reaches millions of people, the cost *per person* is incredibly low.
CASE SCENARIO
72. A popular beverage company faces a crisis when a rumor spreads on social media that their product contains harmful chemicals. The sales plummet. The company immediately calls a press conference to present laboratory reports proving the product is safe. Which promotional tool is the company using to manage the crisis?
A) Advertising
B) Sales Promotion
C) Public Relations
D) Personal Selling
Correct Answer: C) Public Relations.
Analysis: Crisis management and combating negative publicity is a core function of the PR department.
CBSE BOARD 2021
73. Which element of physical distribution ensures that the right quantity of goods is available at the right place, avoiding both stock-outs and excessive holding costs?
A) Order Processing
B) Transportation
C) Inventory Control
D) Packaging
Correct Answer: C) Inventory Control.
HOTS QUESTION
74. The choice of channel of distribution is influenced by "Product Factors". Which of the following is true?
A) Highly complex, technical products require long channels.
B) Heavy and bulky products (like cement) require short channels to minimize transport costs.
C) Custom-made products require long channels.
D) Perishable products require long channels.
Correct Answer: B) Heavy and bulky products (like cement) require short channels to minimize transport costs.
FINAL MASTER QUESTION
75. Match the Promotion Tool with its primary characteristic:
(i) Advertising
(ii) Personal Selling
(iii) Sales Promotion
(iv) Public Relations

With:
(a) Short-term incentives to boost sales
(b) Paid, non-personal mass communication
(c) Managing corporate image and goodwill
(d) Face-to-face, two-way communication
A) (i)-(b), (ii)-(d), (iii)-(a), (iv)-(c)
B) (i)-(d), (ii)-(b), (iii)-(a), (iv)-(c)
C) (i)-(b), (ii)-(a), (iii)-(d), (iv)-(c)
D) (i)-(c), (ii)-(d), (iii)-(a), (iv)-(b)
Correct Answer: A) (i)-(b), (ii)-(d), (iii)-(a), (iv)-(c).
Final Analysis: This matching effectively summarizes the unique nature of all four components of the Promotion Mix.
CBSE BOARD 2024
76. Which of the following sales promotion activities involves offering another product as a gift along with the purchase of a product?
A) Rebate
B) Refund
C) Product Combination
D) Quantity Gift
Correct Answer: C) Product Combination.
Board Tip: Offering a free mug with a jar of coffee is a classic "Product Combination" sales promotion technique.
HOTS QUESTION
77. A manufacturer of industrial machines decides to sell its products directly to factory owners without using any wholesalers or retailers. The most significant reason for this choice of channel is:
A) The product is highly perishable
B) The product is highly technical, expensive, and requires direct expert demonstration
C) The company wants to maximize the price for retail consumers
D) Industrial buyers prefer buying from local retail shops
Correct Answer: B) The product is highly technical, expensive, and requires direct expert demonstration.
Logic: Industrial goods of high unit value and technical nature always demand a zero-level (direct) channel.
COMPETENCY BASED
78. An insurance agent visits a family's home to explain the benefits of a new life insurance policy, answers their specific questions, and convinces them to buy it. This is an example of:
A) Advertising
B) Sales Promotion
C) Personal Selling
D) Public Relations
Correct Answer: C) Personal Selling.
Analysis: Face-to-face interaction to persuade a prospective buyer is the defining trait of personal selling.
CBSE BOARD 2023
79. Which internal factor strongly influences the pricing decision of a product?
A) Government regulations
B) Marketing objectives of the firm
C) Degree of competition in the market
D) Demand for the product
Correct Answer: B) Marketing objectives of the firm.
Note: Factors like government regulations, demand, and competition are *external* to the firm. Marketing objectives (like profit maximization or market share leadership) are *internal*.
ASSERTION-REASON
80. Assertion (A): Public Relations (PR) is a vital tool for handling crises.
Reason (R): PR focuses on spreading positive information, managing rumors, and maintaining a favorable corporate image among stakeholders and the media.
A) Both (A) and (R) are true and (R) is the correct explanation.
B) Both (A) and (R) are true but (R) is NOT the explanation.
C) (A) is true, but (R) is false.
D) (A) is false, but (R) is true.
Correct Answer: A) Both (A) and (R) are true and (R) is the correct explanation.
CBSE SAMPLE PAPER
81. "Selling is the heart of Marketing." This statement implies that:
A) Marketing and selling are the exact same thing
B) Selling is only a part of the wider marketing process, but a crucial one for generating revenue
C) Selling comes before marketing
D) Marketing is unnecessary if selling is strong
Correct Answer: B) Selling is only a part of the wider marketing process, but a crucial one for generating revenue.
Board Tip: Marketing is the whole body (research, product development, pricing, etc.), and selling is the heart that pumps the revenue.
HOTS QUESTION
82. A multinational company producing luxury watches sets its prices extremely high to maintain a status of prestige and exclusivity. Which pricing objective is the firm pursuing?
A) Surviving in a competitive market
B) Obtaining market share leadership
C) Product quality leadership
D) Penetration pricing
Correct Answer: C) Product quality leadership.
Logic: High prices are charged to cover the high quality of materials and research, and to maintain a premium brand image.
CASE SCENARIO
83. 'EcoDrive' launches an electric scooter. Instead of paying for a TV advertisement, the CEO gives an interview on a major news channel discussing the environmental benefits of the scooter, which leads to a spike in sales. This is an example of:
A) Personal Selling
B) Sales Promotion
C) Direct Marketing
D) Public Relations (Publicity)
Correct Answer: D) Public Relations (Publicity).
Analysis: The news coverage is unpaid and generated through managing media relations, a classic PR tool.
CBSE BOARD 2022
84. Which characteristic of Advertising highlights that the message is transmitted through mass media like TV, radio, or newspapers without face-to-face contact?
A) Paid form
B) Impersonality
C) Identified sponsor
D) Flexibility
Correct Answer: B) Impersonality.
COMPETENCY BASED
85. If a manufacturer sells soap to a wholesaler, who sells it to a retailer, who then sells it to the final consumer, this is an example of:
A) Zero-level channel
B) One-level channel
C) Two-level channel
D) Three-level channel
Correct Answer: C) Two-level channel.
Analysis: Count the intermediaries between the manufacturer and the consumer. Wholesaler (1) + Retailer (2) = Two-level channel.
CBSE BOARD 2021
86. The concept that focuses on maximizing profits by producing goods on a large scale to reduce the average cost of production is:
A) Marketing Concept
B) Selling Concept
C) Production Concept
D) Product Concept
Correct Answer: C) Production Concept.
HOTS QUESTION
87. A generic name refers to the name of the whole class of the product (e.g., shoes, soap, pen). A marketer must give a ____________ to their specific product to distinguish it from competitors.
A) Patent
B) Brand Name
C) Grade
D) Tag
Correct Answer: B) Brand Name.
Logic: "Soap" is generic. "Lux" or "Dove" is the brand name used for differentiation.
ASSERTION-REASON
88. Assertion (A): Labeling acts as an effective promotional tool.
Reason (R): A carefully designed, attractive label can catch the customer's attention and persuade them to purchase the product.
A) Both (A) and (R) are true and (R) is the correct explanation.
B) Both (A) and (R) are true but (R) is NOT the explanation.
C) (A) is true, but (R) is false.
D) (A) is false, but (R) is true.
Correct Answer: A) Both (A) and (R) are true and (R) is the correct explanation.
CBSE BOARD 2024
89. Which element of physical distribution focuses on balancing the cost of holding goods against the cost of stock-outs (running out of goods)?
A) Order Processing
B) Transportation
C) Warehousing
D) Inventory Control
Correct Answer: D) Inventory Control.
CASE SCENARIO
90. A marketer realizes that the demand for their winter jackets drops to zero during the summer. To keep the factory running, they produce jackets in summer and keep them safely in a facility until winter arrives. This facility provides:
A) Place Utility
B) Form Utility
C) Time Utility
D) Possession Utility
Correct Answer: C) Time Utility.
Analysis: Warehousing bridges the time gap between production and consumption, creating Time Utility.
PREDICTIVE 2026
91. Which of the following is a common objective of Sales Promotion?
A) To build a long-term corporate image
B) To introduce a new product and clear old stock quickly
C) To reduce the cost of production
D) To avoid paying taxes
Correct Answer: B) To introduce a new product and clear old stock quickly.
Board Tip: Sales promotions are short-term, immediate tactical tools.
CBSE SAMPLE PAPER
92. Sorting agricultural produce like wheat into different categories based on moisture content and grain size is an example of:
A) Branding
B) Standardization
C) Grading
D) Packaging
Correct Answer: C) Grading.
COMPETENCY BASED
93. A company claims to be following the 'Marketing Concept'. Which of the following activities proves this claim?
A) Pushing a defective product onto customers using heavy discounts
B) Conducting a market survey to understand consumer needs before designing the product
C) Maximizing production volume to lower prices without checking demand
D) Refusing to offer after-sales service to cut costs
Correct Answer: B) Conducting a market survey to understand consumer needs before designing the product.
Analysis: The Marketing Concept states that the customer's needs must be the starting point of all business activities.
CBSE BOARD 2023
94. What is the fundamental purpose of 'Packaging' from a logistics point of view?
A) To make the product look beautiful
B) To protect the product from damage, leakage, or spoilage during transit and storage
C) To act as a silent salesman
D) To hide the expiry date
Correct Answer: B) To protect the product from damage, leakage, or spoilage during transit and storage.
ASSERTION-REASON
95. Assertion (A): Advertising is less flexible than Personal Selling.
Reason (R): An advertisement is a standardized message broadcast to millions, and cannot be altered mid-way to address a specific customer's unique doubts.
A) Both (A) and (R) are true and (R) is the correct explanation.
B) Both (A) and (R) are true but (R) is NOT the explanation.
C) (A) is true, but (R) is false.
D) (A) is false, but (R) is true.
Correct Answer: A) Both (A) and (R) are true and (R) is the correct explanation.
HOTS QUESTION
96. If an enterprise sets its price below the cost of production, what will likely happen?
A) It will dominate the market forever
B) It will earn maximum profits
C) It will incur losses and eventually fail in the long run
D) The government will reward it
Correct Answer: C) It will incur losses and eventually fail in the long run.
Logic: Cost sets the absolute floor for pricing. Prices must cover costs to survive.
CBSE BOARD 2021
97. Which of the following is an essential quality of a good salesperson?
A) Being aggressive and forcing the sale
B) Good communication skills, patience, and product knowledge
C) Ignoring customer objections
D) Providing false information to close the deal quickly
Correct Answer: B) Good communication skills, patience, and product knowledge.
CASE SCENARIO
98. A company publishes a quarterly magazine highlighting its community service, employee welfare programs, and sustainable manufacturing practices, sending it free to shareholders and the media. Which promotional tool is this?
A) Advertising
B) Public Relations
C) Sales Promotion
D) Personal Selling
Correct Answer: B) Public Relations.
Analysis: Publishing newsletters and magazines to build a positive corporate image is a key PR activity.
CBSE BOARD 2024
99. Which element of the Marketing Mix involves decisions regarding discounts, credit terms, and margins?
A) Product
B) Price
C) Place
D) Promotion
Correct Answer: B) Price.
FINAL MASTER QUESTION
100. Match the Promotion Tool with its classic example:
(i) Advertising
(ii) Sales Promotion
(iii) Public Relations
(iv) Personal Selling

With:
(a) Press Conference
(b) Door-to-door insurance agent
(c) TV Commercial
(d) "Buy 1 Get 1 Free" Offer
A) (i)-(c), (ii)-(d), (iii)-(a), (iv)-(b)
B) (i)-(c), (ii)-(a), (iii)-(d), (iv)-(b)
C) (i)-(d), (ii)-(c), (iii)-(b), (iv)-(a)
D) (i)-(b), (ii)-(c), (iii)-(a), (iv)-(d)
Correct Answer: A) (i)-(c), (ii)-(d), (iii)-(a), (iv)-(b).
Final Analysis: Knowing these real-world examples helps instantly identify the promotional tool in any Board Exam case study!
🎯

Chapter 11 Mastered!

Fantastic! You have successfully conquered all 100 MCQs for Marketing.
You are now an expert on the 4 Ps, Marketing Philosophies, and the Promotion Mix. Just one chapter left!


BUSINESS STUDIES MASTER

Target 75+ Series for CBSE Class XII

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