Akshey wants to start a new business venture in Edtech space in India. He has also got some of his friends as Co-founders in the startup. The main target customer segment was K-12. They did all the primary and secondary market research in form of surveys, interviews, data mining, etc. By understanding the needs, they finally developed a product in such a way that attracts the targeted customers. To make it easier for the students to use the product, they included services such as after sales services, maintenance services, and technical services in their product. The company decided to follow freemium model to charge for the product. Some elements were available for free while a certain amount was charged to avail the services of other elements. The company launched multiple programs to inform school students about all this.
Which function of marketing is highlighted in the line, “By understanding the needs, they finally developed a product in such a way that attracts the targeted customers.”?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Product designing and development
Option (1) Gathering and Analysing market information — Incorrect. Understanding the needs came from the research done earlier. The line in the question is about what was built with that understanding.
Option (2) Marketing Planning — Incorrect. Marketing planning sets objectives and plans for reaching them. It does not design the product.
Option (3) Product designing and development — Correct. This function means deciding the design of the product, its quality and features, so that it attracts the target customers and does well against competitors. The startup used what it learnt about students’ needs to develop a product that would appeal to them.
Option (4) Standardisation and Grading — Incorrect. These fix and sort products by quality standards. They are not about designing a product for a target group.
NCERT (2026-27 Edition): “Functions Of Marketing … 3.Product Designing and Development: Another important marketing activity or decision area relates to product designing and development. The design of the product contributes to making the product attractive to the target customers. A good design can improve performance of a product and also give it a competitive advantage in the market. …” |