The performance of business activities that direct the flow of goods and services from producers to consumers is _______.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Marketing
Option (1) Packaging — Incorrect. Packaging is designing and making the container of a product. It is only one of many marketing activities.
Option (2) Marketing — Correct. Goods are made for others to use. To move them from producers to consumers, many activities are needed: designing, packaging, warehousing, transport, branding, selling, advertising and pricing. Together they are called marketing.
Option (3) Merchandizing — Incorrect. Merchandising means designing the product. Some people use it to mean marketing, but it is only one part of it.
Option (4) Advertising — Incorrect. Advertising is a paid, impersonal way of promoting a product. It is a tool of promotion, which is one part of marketing.
NCERT (2026-27 Edition): “Traditionally, marketing has been described in terms of its functions or activities. In this respect, marketing has been referred to as performance of business activities that direct the flow of goods and services from producers to consumers.” “Thus, ‘merchandising’, ‘selling’ and distribution are all parts of a large number of activities undertaken by a firm, which are collectively called marketing.” |