Maharashtra State Board Class 12th OCM Question Paper 2023 with Solutions Answers Pdf Download.
Class 12 OCM Question Paper 2023 Maharashtra State Board with Solutions
Time: 3 Hours
Max. Marks: 80
Note:
(i) All questions are compulsory.
(ii) figures to the right indicate full marks for the questions.
(iii) figures to the left indicate question numbers.
(iv) Answer to every question must be started on a new page.
Question 1.
[A] Select the correct option and rewrite the sentences: (5)
(1) Scalar chain means the hierarchy of __________ from the top level to the lower level for the purpose of communication. (c)
(a) discipline
(b) unity
(c) authority
Answer:
(c) authority
(2) __________ warehouses provide facilities for perishable commodity. (b)
(a) Bonded
(b) Cold storage
(c) Government
Answer:
(b) Cold storage
(3) For online transactions __________ (a)
(a) registration
(b) trading
(c) business
Answer:
(a) registration
(4) The President of District Forum is __________ (a)
(a) District Judge
(b) High Court Judge
(c) Supreme Court Judge
Answer:
(a) District Judge
(5) Retail market is the market where retailer sells goods directly to the __________ in small quantities. (c)
(a) producer
(b) wholeseller
(c) consumer
Answer:
(c) consumer
[B] Match the correct pairs:
| Group ‘A’ | Group ‘B’ |
| (a) Henry Fayol | (1) It is the process of instructing, guiding, communicating and motivating |
| (b) Directing | (2) Scientific Management Theory |
| (c) Responsibility towards Government | (3) It is the process of recruiting, selecting, placing and remunerating |
| (d) Digital cash | (4) To earn profit |
| (e) Monopoly | (5) Respecting rules and regulations |
| (6) Exist only in cyber space | |
| (7) Exist every where | |
| (8) Single buyer | |
| (9) Modern management theory | |
| (10) Single seller |
Answer:
| Group ‘A’ | Group ‘B’ |
| (a) Henry Fayol | (9) Modern management theory |
| (b) Directing | (1) It is the process of instructing, guiding, communicating and motivating |
| (c) Responsibility towards Government | (5) Respecting rules and regulations |
| (d) Digital cash | (6) Exist only in cyber space |
| (e) Monopoly | (10) Single seller |
[C] State whether the following statements are true or false: (5)
(1) F.W. Taylor has proposed 14 principles of management.
Answer:
False
(2) Current account is opened by salaried persons.
Answer:
False
(3) Unregulated market operates according to forces of demand and supply.
Answer:
True
(4) Consumer being the king of market does not have any responsibility.
Answer:
False
(5) Lok Adalat can rightly be described as “People’s Court”.
Answer:
True
[D] Find the odd one: (5)
(1) Planning, Organising, Staffing, Writing.
Answer:
Writing
(2) Trekking, Wildlife Study, Horseback riding, Indoor games.
Answer:
Indoor games
(3) Primary credit cooperative society, State cooperative bank, District co-operative bank. Exchange bank.
Answer:
Exchange bank
(4) B to B, B to C, A to Z, C to C.
Answer:
A to Z.
(5) Stock exchange, Foreign exchange, Bullion market, Manufactured goods market.
Answer:
Manufactured goods market
Question 2.
Explain the following terms / concepts (Any FOUR): (8)
(1) Management
(2) Social responsibility
(3) Concept of trusteeship
(4) Janahityachika (6) Product
(5) Packaging
Answer:
(1) Management:
Management can be defined as a process of getting the work or task done that is required for achieving the goals of an organisation in an efficient and effective manner. Process implies the functions of the management. That is, planning, organising, staffing, directing and controlling.
(2) Social responsibility:
Organisations behaving and conducting business ethically and with sensitivity towards social, cultural, economic and environmental issues.
An organisation’s obligation to make decisions and perform them for the benefit of society and its values is known as the social responsibility of a business.
(3) Concept of trusteeship:
Trusteeship is a socio-economic philosophy developed by Mahatma Gandhi as a part of his nonviolent revolution. It is a concept where a person voluntarily gives up or renounces his right to money earned by him and dedicates it to the welfare of the poor section of society.
(4) Janahit yachika:
Janhit Yachika is also known as Public Interest Litigation. Public Interest Litigation means a legal action initiated in a court of law regarding a matter of general public interest. It is a legal facility under which any person can approach the court of law in the interest of society. Its aim is to provide legal redress to underepresented groups of society.
(5) Packaging:
According to Kbtler, “Packing constitutes all the activities of designing and producing the container for a product.” Packaging is the act of enclosing or protecting the product using a container to aid its distribution, identification, storage, promotion, and usage.
(6) Product:
A product is any item or service you sell to serve a customer’s need or want. They can be physical or virtual. Physical products include durable goods (like cars, furniture, and computers) and nondurable goods (like food and beverages).
Question 3.
Study the following case / situation and express your opinion (Any TWO): (6)
(1) Mr. Ram, an emerging entrepreneur has designed a structure of his business organisation by taking into consideration the required resources such as land, money, machinery, work force etc. for his new business. He appointed Mr. Shyam as a manager. Mr. Ram has assigned the responsibilities such as recruitment, selection, training and development and to determine the remuneration of the employees to Mr. Shyam. Mr. Ram has also appointed Mr. Shubham to supervise the work done by the employees according to the standards given to the employees. Mr. Shubham has to also suggest the remedies to the employees wherever necessary.
On this context, find out the management functions performed by:
(a) Mr. Ram
(b) Mr. Shyam
(c) Mr. Shubham
(2) Mr. Amit is a businessman. He has his own factories in Pune and Nashik. He lives in Pune with his wife and 2 daughters aged 5 and 8 years.
(1) Can Mr. Amit take a life insurance policy for his wife and 2 children?
(2) Can Mr. Amit take a marine insurance policy for his factories?
(3) Which type of insurance should Mr. Amit take for protecting his factories from loss due to fire?
(3) Mr. Atharva made his payment by cheque at the same time Mr. Samarth made his payment by fund transfer:
(a) Whose payment is faster?
(b) Whose payment is related to traditional business?
(c) Whose payment is related to e-business?
Answer:
(1) (a) Planning and organising function is performed by Mr. Ram.
(b) Staffing function is performed by Mr. Shyam.
(c) The function which is performed by Mr. Shubham is Controlling and Directing.
(2) (1) Yes, Mr Amit can take life insurance policy for his wife and 2 children.
(2) No, Mr. Amit cannot take a marine insurance policy for his factories.
(3) Mr. Amit should take Fire Insurance for protecting his factories from loss due to fire.
(3) (a) Mr. Samarth’s payment is faster.
(b) Mr. Atharva’s payment is related to traditional business.
(c) Mr. Samarth’s payment is related to e-business.
Question 4.
Distinguish between the following (Any THREE ):(12)
(1) Current Account and Fixed Deposit Account.
(2) Organising and Directing.
(3) State Commission and National Commission.
(4) E – Commerce and E – Business.
Answer:
(1) Current Account and Fixed Deposit Account:
| Points | Current Account | Fixed Deposit Account |
| Meaning | This account is maintain by businessman and others who have regular banking transactions. | It is that account where a fixed sum of money is deposited for a fixed period of time. |
| Withdrawals | Customers can withdraw money by cheques. | Customers cannot withdraw during the specified period |
| Documents | Banks provide a passbook, cheque book, pay – in – slip and statement of account book to the customers. | Banks provide receipts to their Customers in return. |
| Who takes it | It is suitable for traders, firms, businessmen, companies or institutions. | It is suitable for anyone who holds idle cash. |
| Restrictions | There are no restrictions on the operation of a current account as long as there is balance in the account. | Amount can be withdrawn after expiry of the fixed period. If withdrawn earlier then a penalty is charged from holder. |
| Rate of interest | Normally interest is not given. | Rate of interest is higher, longer the period, higher will be the rate of interest. |
| Facilities | Temporary overdraw facility is given. | Fixed deposit amount can be used for giving loan to the customers. |
(2) Organising and Directing:
| Points | Organising | Directing |
| 1. Meaning | Organising refers to the procedure of aligning the activities in a certain order. | It is the process of guiding, instructing and motivating employees towards the attainment of organisational goals. |
| 2. Objective | To identify and bring together all the required resources. | To direct the subordinates to get the things done in the right manner. |
| 3. Factors | Internal and external factors are considered in the arrangement of resources. | Directing is concerned directly with internal factors i.e. human resources. |
| 4. Order | Comes after planning; it is the second function of management. | Comes after staffing. |
| 5. Resources | All available resources i.e. men, money, material machine, and method are arranged in a systematic manner. | It gives direction to the employees regarding the use of other resources. |
| 6. Nature | It takes place untill all the resources are collected and arranged. | Direction is needed untill targets are achieved. |
| 7. level of Management | Top and middle-level management are related to organising the required resources. | Middle-level management is involved in directing the employees. |
(3) State Commission and National Commission.
| Points | State Commission | National Commission |
| 1. Meaning | A consumer dispute redressal forum at the state level established by the State Government is known as State Commission. | Consumer disputes redressal agency at the national level established by the Central Government is known as National Commission. |
| 2. President | A person who is retired or qualified as a judge of a High Court is appointed as president of State Commission. | A person who is retired as a judge of a Supreme Court is appointed as president of National Commission. |
| 3. Membership Tenure | Every member of District Commission shall hold office for a term of 5 years or up to the age of 67 years whichever is earlier. | Every member of State Commission shall hold office for a term of 5 years or up to the age of 67 years and resident upto 70 years whichever is earlier. |
| 4. Area covered | It has jurisdiction over a particular State. | It has jurisdiction over the entire nation. |
| 5. Monetary jurisdiction | It has the jurisdiction to entertain complaints where the value of goods or services, including compensation, if any, exceeds ₹ 1 crore, but does not exceed ₹ 10 crore. | It has the monetary jurisdiction to entertain complaints where the value of goods and services, including compensation, if any, exceeds ₹ 10 crore. |
| 6. Appeal | Any person not satisfied with the order of District Forum can appeal against such order to the State Commission within 30 days of the order. | Any person not satisfied with the order of the National Commission may appeal against such order to the Supreme Court within a period of 30 days from the date of the order. |
(4) E – Commerce and E – Business.
| Points | E-commerce | E-business |
| 1. Meaning | It refers to performing online commercial transactions and activities over the internet. | It refers to performing every type of business activity through the internet. |
| 2. Scope | It is a narrow concept and is a subset of e-business. | It is a broad concept and is a superset of e-commerce. |
| 3.Transactions | Commercial transactions are carried out in e-commerce. | Business transactions are carried out in e-business. |
| 4. Limitation | E-commerce transactions are limited. | E-business transactions are not limited. |
| 5. Activities | It includes selling and buying products, making monetary transactions, etc., over the internet. | It includes customer education, procurement of raw materials, supply activities, making monetary transactions, etc., over the internet. |
| 6. Operation | It mainly requires the use of only a website. | It requires using multiple websites, ERPs and CRMs, that connect different business processes. |
| 7. Resources | It involves mandatory use of the internet. | It consists of the use of the internet, extranet or intranet. |
| 8. Business models | E-commerce is appropriate in a Business to Customer (B2C) context. | E-business is appropriate in a Business to Business (B2B) context. |
Question 5.
Answer in brief (Any TWO): (8)
(1) Describe any four techniques of scientific management.
(2) Explain any four needs of consumer protection.
(3) Explain any four functions of marketing.
Answer:
(1) (i) Scientific Task Setting:
This technique helps to fix a fair day’s work. Scientific work setting is important to prevent the employees from doing work much below their capacity. By using this technique, employees will complete the task according to standards given and management can keep proper control on optimum utilisation of workforce.
(ii) Standardisation of Tools and Equipments:
Standardised working environment and methods of production help to reduce spoilage and wastage of material cost of production, fatigue among the workers and it improves quality of work.
(iii) Scientific Selection and Training:
Management can select right persons for the rightjobs by using scientific selection procedures. It needs to fix job specifications as per requirement. Employees are selected according to predetermined standards in an impartial way. After selection, management should provide the proper training programmes to increase their efficiency.
(iv) Differential Piece-Rate Wage Plan:
Remuneration should be fixed in such a way that average worker is motivated to attain a standard output. Higher rates are offered to employees who complete the work more than the standard quantity under this system. On the other hand, if an employee is performing below the standard, he shall be given lower rate of wages. This technique motivate the employees to attain higher standard performance and earn wages at higher rate.
(2) Meaning:
The word ‘ Consumer’ is derived from the Latin word’ Consumere. The consumer is the one who consumes or uses any commodity or service available from natural resources or through a market in consideration which has been paid or promised or partly paid or partly promised or under any system of deferred payments:
Need Of Consumer Protection
(i) Lack of information:
It is very difficult to establish direct contact between consumer and manufacturer because consumers live in a dynamic and complex world and they are widely scattered, which include domestic as well as imported products therefore it is very difficult to get correct and reliable information about product before they purchase.
(ii) Unorganised Consumers:
Consumers are widely scattered and are not organised. On the other hand, sellers are in better position than consumers and they are powerful. Consumers are under the influence of businessman. An individual consumer cannot fight against these powerful sellers.
(iii) Need of participation of consumers:
A strong consumer organisation can pressurise business organisations to allow consumer participation in the decision making process and it should be in favour of consumer.
(iv) lgnorance:
Ignorance of consumers is the main cause of exploitation by business. Consumers in India are mostly ignorant about their rights, market conditions, price levels and product details. A system is required to protect them from business malpractices.
(v) Spurious Goods:
There is increasing supply of duplicate products. It is not possible for an ordinary consumer to distinguish between a genuine product and its imitation. It is necessary to protect consumers from such exploitation by ensuring compliance with prescribed norms of quality and safety standards.
(vi) Malpractices of Businessmen:
Fraudulent, unethical and monopolistic trade practices by businessmen lead to exploitation of consumers. Many times consumers get defective, inferior and substandard goods and services. Certain measures are required to protect the consumers against such malpractices.
(3) Marketing deals with exchange of goods and services to satisfy needs of consumers. Marketing functions help to study the needs of the consumers and facilitate to satisfy it.
Functions of marketing:
(i) Marketing Research:
To identify the needs of the consumers, there is a need to collect information from the consumers and analyse the same is known as Market Research. Analysis of the information helps in the assessment of the need in the market. It helps to find out what do consumers want to buy, when do consumers buy, in what quantity they want to buy and at what price. Marketing Research helps to take various decisions regarding successful marketing of products.
(ii) Product Development:
There is a need to develop the product that suits the needs of the consumer. Product design includes decision related to quality, standards, shape, design, packing, colour etc. of the product. Consumer always prefer better and attractively designed product. Development of product is continuous process as per the requirements of the customer change from time to time.
(iii) Buying and Assembling:
It involves collecting raw material from different sources at one place for production. This function is important as quality and price of raw material determine cost and quality of the final product.
(iv) Market Planning:
After assessing the need of the marketing , business needs to chalE out the marketing plan and strategies to achieve the desired objective. Market planning is the process of organising and defining the marketing objectives of the business and creating strategies to achieve them.
(v) Standardisation:
Standardisation means to determine standards related to process, size, quality, design, weight, colour etc. of the product.
It helps in ensuring uniformity in the quality of the product It helps in achieving customers’ loyalty towards the product.
(vi) Grading:
Grading is done on the basis of their features like size, shape, quality etc. Generally grading is done in case of agricultural products like wheat, rice, potatoes etc. Grading is the process of classification of products according to similar characteristics and / or quality.
(vii) Packaging:
Package and Label create the first impression on the consumer about the product. Attractive package and label can help to make product successful. Packaging means designing the package for the product. It helps to avoiding breakage, damage and destruction of the product. Packing material includes bottles, containers, plastic bags, tin, wooden boxes, jute bags, bubble bags, packing foam etc. [any four]
Question 6.
Justify the following statements (Any TWO): (8)
(1) Controlling is the last function of management.
(2) Entrepreneurship is the best source for self employment.
(3) Cash can be withdrawn from ATM at any time.
(4) Consumers have many responsibilities.
Answer:
(1) Controlling is the last function of management:
(i) Controlling is the function of measuring the performance at every possible stage, finding out the deviations, if any: and taking corrective actions according to planned activities for the organisation. Thus, it helps in fulfilling the organisational goals.
(ii) Controlling is the function of order and maintaining discipline. It works for reducing unprofessional behaviour of the employees. Discipline is maintained by continuous checking of performances by the superiors and preventive actions are taken to minimise the gap between actual and standards.
(iii) Control is a function in which the roles and responsibilities of all departmental managers and the subordinates are designed clearly.
Coordination between them helps to find out the deviations in their respective departments and to use remedial measures for desired results of the organisation.
(iv) Responsibilities of Consumer: The Act, has given certain rights to the consumers. At the same time consumers have some responsibilities too. Consumers should exercise their rights and responsibilities while purchasing products or services. These are as follows:
(a) Consumer should use his Rights:
Consumers have many rights with regard to the goods and services. They must be aware of their rights while buying.
(b) Cautious Consumer:
The consumers should understand their responsibilities while buying goods and services. While buying, consumer should enquire about the quality, quantity, price, utility of goods and services etc.
(c) Filing of Complaint:
It is the responsibility of a consumer to approach the officer concerned, if consumers have some complaint about the goods and services, a delay in complaint may result in expiry of guarantee or warranty. Sometimes, consumers Ignore the dishonest acts of businessmen which encourages unethical business practices.
(d) Quality Conscious:
The consumers should never compromise-6n the quality of goods. They should not buy inferior stuff out of greed for less prices. If the consumers behave like this, there cannot be any protection for them from any sector. It is also the responsibility of the consumers to buy quality goods. The symbols such as ISI, AGMARK, Hallmark, FPO, Fssai etc. are indicative of the good quality of the goods.
(e) Beware of Exaggerated Advertisement:
The seller informs the consumer about their goods and services through advertisement Usually the sellers exaggerate the quality of their goods in advertisements. Therefore, it is the responsibility of the consumers to identify the truth of advertisement
(f) Demand of Invoice and Guarantee, warranty Card:
Consumer should always ask for invoice for the goods purchased. It is the responsibility of consumer to check details mentioned on the guarantee or warranty card. If the goods purchased are of inferior quality, these docu- ments are useful to settle all kinds of disputes with the seller.
(g) Pre-planned Buying:
The important responsibility of consumers is that they should not buy in hurry. It means that the consumers should make an estimate of the goods they want to buy along with their quantity required. They should also take in consideration the place from where to buy the goods.
(h) Organised Efforts:
Consumer should undertake responsibility for the protection of their rights and safeguarding their interests. Consumers can work for and support the consumer protection associations for consumer welfare.
(2) Entrepreneurship is the best source for self employment:
- An entrepreneur is a creative thinker. He has reasonably good intelligence. He has ability to analyse business situations. This ability will help him to take proper decisions.
- The entrepreneur has good foresight aboutfuture market situation. He should also have knowledge about external business environment. This will help him to take proper decisions according to the situations and changes in the market. So, he can take timely actions for the same.
- An entrepreneur has good technical knowledge about his business. The entrepreneur has the ability to update himself with the latest knowledge about the product, process and technology.
- An entrepreneur has to always think positively. He is always hopeful and confident about the market situations even in failure times. Such positive attitude helps him to run his business – successfully.
(3) Cash can be withdrawn from ATM at any time:
- ATMs are available 24/7 and can be accessed at any time of day or night, making it convenient for people to withdraw cash whenever they need it.’
- ATMs are designed to be self-service machines, allowing users to complete transactions quickly and efficiently. Once a user has inserted their ATM card and entered their PIN, they can withdraw cash in a matter of seconds.
- ATM networks are designed to be reliable and available at all times. Even if one ATM is temporarily out of service or out of cash, there are typically many other ATMs nearby that can be used instead.
- ATMs are often located in convenient places such as shopping centres, gas stations, and airports, allowing people to access cash from a variety of locations.
(4) Consumers have many responsibilities:
- While buying, the consumer should enquire about the quality, quantity, price, utility of goods and services, etc
- Consumer should approach the officer concerned if consumers have some complaints about the goods and services.
- Consumers should always ask for an invoice for the goods purchased.
- Consumers should undertake responsibility for the protection of their rights and safeguarding their interests.
- Consumers should be cautious about the product.
Question 7.
Attempt the following (Any TWO): (10)
(1) Explain nature of principle of management.
(2) State money remittance services and retail services of postal department.
(3) Explain social responsibilities of commercial organisation towards consumers.
Answer:
(1) Nature of principle of management: Management principles are formed to guide and influence the behavior of employees . These principles insist on improving efficiency of organisational resources in terms of profit These principles also focus on best coordination between superior, subordinates and all the members of organisation.
(i) Universal application:
That means they can be applied to all types of organisations, irrespective of their size and nature. Their results may vary and application may be modified but these are suitable for all kinds of organisations and it is applicable to all levels of management
(ii) General guidelines:
Management principles provide general guidelines in tackling the organisational situations wisely as well as in solving the problems. Which Management principles are to be applied depends upon the situation, size and nature of organisation. For example, when we say fair remuneration, then the term ’fair’ can vary as per the nature, size and financial condition of the organisation.
(iii) Formed by Practice and Experimentation:
Principles of management are the results of various problems faced by the professional people. First of all problems appeared and then through careful research work solutions were found. Thus, we recognise the solutions, found with the help of practice and experience, as principles of management Similarly, researchers undertake experimental study to find out the principles of management
(iv) Flexibility:
The principles of management as they exist today are not in the form offinaltruths. As and when political, economic and social changes take place, new kinds of problems arise. Old principles are altered and new principles are propounded. Therefore, the principles of management are dynamic in nature and cannot be called stagnant or fixed.
(v) Behavioural in nature:
Management is group activity. Management aims at achieving certain goal through a group of human being. Management principles are designed to influence human beings. These principles control a group of persons and direct them to achieve the objectives.
(vi) Cause and effect relationship:
Principles of management are the base for taking decisions. They determine the cause or reason for particular effect For example payment of good wages and incentives helps in increasing the output of workers or making effective advertisement increases the sale of a product.
(vii) Contingent:
The principles of management are not fixed or permanent They are affected by situation or circumstances. Therefore, the decision to implement them or not is taken according to the situation or circumstances. For example, according to the principle of division of labour a worker should be assigned a definite part of a job time and again to increase his efficiency. But on the contrary, if a worker is fed up with doing a job repeatedly, the application of this principle will not be beneficial Therefore, it will have to be changed.
(2) Money remittance services and retail services of postal department:
(A) Money Remittance Services:
(i) Electronic Money Transfer (eMO):
A money order is an order issued by the Post Office for the payment of a sum of money to the person whose name is mentioned in the money order . It is sent through the agency of the Post Office. A ‘Payee’ is the person named in money order as the person to whom the money is to be paid. The advantage of sending money to someone through money order is “that the money is delivered at the house or his place of stay.
(ii) Instant Money Order iMO):
India Post provides instant Money Order service, which is instant, safe, reliable and convenient. iMO is an instant web based money transfer service through Post Offices (iMO Centres) in India between two resident individuals in Indian territory. One can transfer money from INR 1,000/ – to INR 50,000/- from designated iMO Post Offices. It is easy to send and receive money.
(iii) International Money Transfer:
Money Transfer Service Scheme is a quick and easy way of transferring personal remittances from abroad to beneficiaries in India. Only inward personal remittances are permissible. Department of Posts, Government of India with the Western Union Financial Services, a state of the art International Money Transfer Service is now available through the Post Offices in India, which enables instantaneous remittance of money from around 195 countries and territories to India.
(B) Retail Services
(i) RetailPost:
Through ‘Retail Post’ the department offers convenience to the general public by making third party products and services available in their vicinity through selected Post Offices. Under Retail Post, a range of services are offered, including the collection of electricity bills, taxes, other bills and fee for the government etc. Further, under Retail Post, the Post Office sells application forms.
(ii) e-Post:
Department of Posts has introduced ePOST service. Through ePOST, customers can send their messages to any address in India with a combination of electronic transmission and physical delivery through a network of more than 1,55,000 Post Offices. ePOST sends messages as a soft copy through internet and at the destination, it will be delivered to the addressee in the form of hard copy. ePOST can also be availed by the corporate customers, by having a business agreement with India Post. Corporate customers will get special ePOST rates and other value additions.
(3) Social responsibilities of commercial organisation towards consumers:
Responsibilities towards Consumers:
The consumer is the king of the market but in reality experience is different. Business cannot work without consumer. The survival and growth of businesses depends on consumer satisfaction, service and support. The commercial organisation should win the confidence of the customers. This is possible by having a positive attitude towards customers and fulfilling social responsibilities towards them.
(i) Good Quality Products:
The organisation should produce quality goods. Every organisation should have its quality control department so inferior and substandard products can be rejected. International Standard Organisation (ISO), is the latest trend towards quality control This assures customers about quality product
(ii) Fair Prices:
The consumers should not be cheated by charging high prices. It is not possible to fool the customer at all the time. Fair price converts a one time consumer into permanent consumer. Maximum Retail Price (M.R.P.) inclusive of all taxes should be printed on every packet. Retailers should not charge any extra amount
(iii) Customer’s Safety:
The business must ensure that the product supplied will not adversely affect the life and health of the customers. Unsafe products should not be marketed. Consumer should be warned of any unsafe goods.
(iv) Fair Advertising:
The consumers want to know the facts, features, advantages, side – effects etc. of the products. The advertisement conveys this information. So the organisation must be sure that the advertisement is not misleading. False, misleading and vulgar advertisement should be avoided . Consumers will appreciate only honest advertisements in the long run.
(v) AfterSales Service:
The organisation is expected to provide after sales service for maintenance of goods during the period of warranty. Efficient and effective after sale service helps to establish good relation between consumers and the organisation.
(vi) Research and Development:
Organisation should conduct research and development to improve the quality of goods and reduce the cost of production. This will minimise final prices charged to consumers. It must provide quality standards such as BIS or AGMARK on respective products. Hallmark on gold.
(vii) Regular Supply:
Consumers should be supplied with the goods regularly as and when required by them. The commercial organisation should not create artificial shortage of goods by hoarding and black marketing.
Question 8.
Answer the following (Any ONE): (8)
(1) What is Road Transport? Explain the advantages and disadvantages of Road Transport.
(2) Explain importance of Marketing to the society and consumer.
Answer:
(1) Roads are means that connect people and places on the surface of the land. It provides over conectivity in any territory as compared to other modes of transport Road transport is transporting the goods, and people from one place to another place on road. The road acts as a bridge to reach from one end to another.
Examples of road transport: Buses, rickshaws, trucks, scooters, motorcycles, and cars.
Advantages of Road Transport
- Road transport creates flexibility in service since numerous routes and destinations are possible.
- The maintenance cost’ involved in road transport is low.
- It offers door-to-door services.
- It enables great speed and cheapness over short distances, continuous movement is made possible.
- Road transport carries more passengers and goods within localities because they are normally constructed to connect towns and villages where rail, air and water transports are absent
- Wide range of goods can be carried since roads are more able than other systems to handle outsized objects.
- It offers maximum access along their line sides: maximum scope for intervening opportunity.
Disadvantages of Road Transport
- Motor vehicles need constant maintenance and this adds greatly to running costs.
- Most drivers and road users are very careless and as a result of this, a lot of accidents have claim thousands of lives and property.
- Road transport at times can be very slow due to many factors such as poor maintenance, weather and traffic congestion.
- Most cities have so many vehicles which ply the road, hence resulting in traffic congestion.
- Road transport is not suitable for conveying heavy and bulky goods.
- It causes pollution due to emission of gases which affects the health of people.
(2) Marketing is related to the exchange of goods and services. Through its medium the goods and services are brought to the place of consumption. This satisfies the needs of the customers. The following activities are undertaken in respect of the exchange of goods and services:
(A) Importance of marketing to the society
(i) Increase in standard of living:
The main aim of marketing is to supply goods and services to fulfil the customers’ requirements. Marketing finds out the requirements of the customers and accordingly make efforts to supply quality products at cheaper, prices. This in turn helps to maintain and raise the standard of living of the customers. In recent era, large scale production of products and services have considerably reduced their prices due to which poor people also attain reasonable level of living.
(ii) Provide employment:
Modern marketing undertakes almost all functions of organisation such as buying, selling, financing, transport, warehousing, risk bearing, research and development, etc. which generate and create more job opportunities in different capacities and help to solve the problem of unemployment.
(iii) Decreases distribution coats:
Effective and proper utilisation of channel of distribution reduces overall cost of the products and services, Thus, marketing activities make the goods and services available to the society at cheaper prices. Due to reduction in the cost, number of potential consumers will also increase. It also gives guarantee of timely availability of the product.
(iv) Consumer awareness:
Marketing helps the society by educating consumers and by giving information about products and services/available in the requirements of consumers by providing relevant information, goods and services to the people as per their demand and taste. Marketing also includes information to help in making a purchase.
(B) Importance of marketing to the consumers
(i) Promotes product awareness:
Many companies undertake different marketing activities to promote their products and services. Marketing makes consumers aware about the different products, various brands and features of products and services available in the market. Marketing facilitates the consumers to take right decision on purchases of products. On the basis of marketing information consumers can compare product features, availability, price and other essentials. Marketing also improves the quality of life of the consumers.
(ii) Provides quality products:
On account of increasing competition in the market, consumers easily get information about the product and services available in the market Marketing creates moral pressure on the business enterprises to sell quality products and services to the consumers. If business enterprises supply defective products to the consumers, sooner or later, it will create negative image ofthe business and adversely affect customers’ loyalty towards business and products.
(iii) Provides variety of products:
Marketing provides information to the consumers about the productand attracts them to purchase the same. The business organisation are required to launch product by considering market segment. The business organisations are required to make available variety of goods to fulfill the requirements of different market segments of the consumers. According to price, size and quality of products, variety’ may change.
(iv) Helps in selection:
In the competitive markets, different varieties of products with different brands are available. Marketing enables the consumers to select the best products and services from the different options available.
(v) Consumer satisfaction:
The main and primary aim of marketing policy is to advertise and give assurance of good quality product to the consumer. When the expectations and requirements of customers are fulfilled, the customers become more comfortable and satisfied. Marketing efforts result into customers’ satisfaction by way of honest advertising, assurance of quality products and accessibility of innovative products. In this manner, marketing makes efforts to give satisfaction to the consumers.
(vi) Regular supply of goods:
Regular supply of goods to the consumers is practicable through effective and efficient distribution channel of marketing. Marketing also helps to keep and maintain the balance between demand and supply. As a result prices get etabilised.