Dhara Garments decides how much margin it will keep on each shirt and when it will revise its rates. These decisions relate to which element of the marketing mix?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Price
Option (1) Product — Incorrect. Product decisions are about the shirt itself: its features, quality, packaging, labelling and branding. Margin and rate revision do not change the shirt itself.
Option (2) Place — Incorrect. Place decisions are about making the shirts available: choosing dealers, keeping stock, warehousing and transport. Fixing the margin and revising rates do not move or stock the shirts.
Option (3) Price — Correct. Price decisions cover the price level, the margins kept on each unit, pricing policy and strategy, and price change. Deciding the margin on each shirt and when to revise the rates are both such decisions.
Option (4) Promotion — Incorrect. Promotion decisions are about informing and persuading buyers through advertising, personal selling and sales promotion. Margins and rate changes are not about telling buyers of the shirts or persuading them.
Note: Even a small list in a box, like this one, can give a full question. Do not skip it.
NCERT (2026-27 Edition): “8. Pricing of Product: Price of product refers to the amount of money customers have to pay to obtain a product. Price is an important factor affecting the success or failure of a product in the market. The demand for a product or service is related to its price. Generally lower the price, higher would be the demand for the product and vice-versa. The marketers have to properly analyse the factors determining the price of a product and take several crucial decisions in this respect, including setting the pricing objectives, determining the pricing strategies, determining the price and changing the prices.”
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