CBSE Class 12 Business Studies Marketing Management Notes

COCEPT MAPPING:
1.Market, Consumer, Seller / Marketer – meaning
2.Marketing – Meaning, Features 3.Marketin
g Management Philosophies
4.Marketing Functions
5.Marketing Mix – product, price, place and promotion
6.Advertising – meaning, features, merits and limitations..
7.Objections to advertising
8.Sales promotion– meaning and variety of Tools / methods used.
9.Personal selling –Concept and qualities  of a good salesman 
10. Public Relations – concept and role

Introduction : Marketing management is an important functional area of business.

- It is the process of planning, organising, directing and controlling the activities related to marketing of goods and services to satisfy customers needs & achieve organisational goals.

Market : In the traditional sense, the ‘market’ means a place where buyers & sellers gather to enter into transaction involving the exchange of goods & services. But in modern sense, market refers to meeting of buyers and sellers at a place, by telephone or by internet etc. 

Marketing : 
Markerting is a social process whereby people exchange goods & services for money or for something of vaue to them.
Any thing that is of value to the other can be marketed e.g.

1. Physical Products                 - T.V. Mobile phone etc.
2. Services                               - Insurance, education etc.
3. Ideas                                     - Blood donation, family planning
4. Person                                 - Selection for different posts.
5. Place                                  - Agra ‘Taj Mahal’, etc.

MARKET:It refers to a place where the buyers and sellers meet each other for sale and purchase of the commodity.

CUSTOMER :Customers refers to the people or organization that seek satisfaction of their needs and wants.

SELLER OR MARKETEER :The sellers or marketers offer a variety of entities to customers

MARKETING: Marketing makes goods and services more useful to the society by creating place, time and possession utilities.

FEATURES OF MARKETING
a. Needs and wants
b.Creating market a offering
c. Customer value 

NATURE:
1.It is goal diverted 
2.It determines the appropriate market of managementing mix if the firm.
3. It is a functional area management
4.It is a specialized job.
5. It is the marketing concept in action.

Objectives :
a. Creation of demand
b.Market share
c. Goodwill
d.Profitable sales volume through customer satisfaction
e.To determine marketing mix that will satisfy the needs of the customers
f. To generate adequate profits for the growth of the business  

MARKETING FUNCTIONS:
1. Marketing research
2 Marketing planning
3. Product planning development
4. Buying and assembling
5. Packaging and labeling
6. Branding
7. Customer support services
8. Storage and warehousing
9. Transportation
10. Promotion and selling
11. Standardisation and grading
12. Pricing
13. Fixing
14. Risk taking

MARKETING MIX, ELEMENTS :
1. Product Mix
2. Price Mix
3. Place Mix
4. Promotion Mix

MEANING OF MARKETING MIX:
It refers to the combination of four basic elements, product, price, promotion and the place known as the four P’s of marketing.

PRODUCT: Total number of products and items that a particular seller offers to the market is called market mix.
a. Branding
b. Trade mark
c. Packaging
d. Labelling

PRICE MIX: It is the worth of a product or service in monetary terms :
Factors considered before fixing price are
a) Company objectives
b) Cost
c) Competition
d) Customer demand

PLACE MIX : It refers to a set of decisions that need to be taken in order to make the product available to the consumers for purchase and consumption.
Channels of distribution.
Physical distribution
Cost and service trade off in Logistics

PROMOTION MIX: It is concerned with activities that are undertaken to communicate with both customers and participate in the channel of distribution such that sales goals are realized.

ACTIVITIES INVOLVED IN PHYSICAL DISTRIBUTION OF GOODS
1. Transportation b. Inventory
2.Warehousing
3. Order processing

FACTORS TO BE KEPT IN MIND BEFORE PRICING
a. Cost of production
b. Demand for product
c. Price if competitive firms
d. Purchasing power if customers
e. Government regulations
f. Objective

CHARACTERISTICS OF GOOD BRAND NAME :
1. Simple and short
2. Easily pronounceable
3. Suggestive
4. Distinctive

VARIOUS LEVELS OF CHANNELS OF DISTRIBUTION
1. Direct channel / Zero level channel
2. Indirect channels
a. One level channel – Manufacturer to Retailer
b. Two level channel – Manufacturer to Wholesaler to Retailerc. Thre
e level channel – Manufacturer to Agent – Wholesaler – Retailer ‐ Consumer

FUNCTIONS OF PACKAGING:
a) Protection
b) Identification
c) Convenience

FUNCTIONS OF LABELLING:
a) Identification
b) Classification
c) Promotion

ADVANTAGES OF BRANDING:
a) Brand name helps in advertising in easier way
b) Brand name establishes the permanent identify of the pro
c) Brand name promotes
d) Competition becomes easier with the help of brand loyalty.

ADVERTISING :
It is defined as any paid form of non‐personal presentation or promotion of ideas, goods or services by an identified sponsor. 
Merits: 1) Mass reach
2) Enhancing customer satisfaction
3) Expressiveness
4) Economical

Limitations: 
1) Less forceful
2) Lack of feed back
3) Inflexibility
4) Low effectiveness

Features: 
a) Paid form
b) Impersonal presen
c) Speedy and mars co
d) Identified sponsor

Importance features of Marketing :-
1. Need and want : Satisfaction of the needs and wants of individuals and organisations.
2. Creating a market offering : Complete offer for a product of service.
3. Customer value : greatest benefit or value for the money.
4. Exchange mechanism : Exchange of products / services for money / value.

Functions of Marketing / Marketing activities
1. Marketing research : Gathering and analysing marketing information i.e. what the customers want to buy, when they are likely to buy in what quantitis do they buy from where do they buy etc.
2. Marketing planning : Specific plan for increasing the level of production, promotion of the products etc and specify the action programmes to achieve these objectives.
3. Product designing and development ; Marketer must take dicision like, what-product? Which model / size ? brand name? Packaged ? quality level ? So that customer needs are satisfied.
4. Buying & assembting : - e.g. car. Raw material like steel, tyers, batteries, seats, stearing wheels etc are bought & them assembled in the form of a complete product.
5. Packing / Labelling : designing the package & labelling.
6. Branding : Creating a distinct identify of the product from that of competitions. e.g. Video can washing machine.

Concepts & Philosophies of Marketing :-
1. Production concept : Profits could be maximised by producing products at a large scale, thereby reducing average cost of production.
    Drawback : Customer donot always buy inexpensive products.
2. Product concept : Business goals lies in making high quality products as customer favour them.
3. Sales Concept : Firms must undertake aggresive selling & promotion efforts to make customers buy their products.

Marketing Management : Marketing management means management of the marketing function which are
1. Choosing a target market.
2. Creation of demand
3. Creating, developing & communicating supervior value for the customers.
4. Market Shares.
5. Goodwill
6. Planning & controlling marketing activities.

Marketing Mix : Marketing mix refers to ingredients or the tools or the variables which the markets mixes in order to interact with a particular markets.

4. Plant Mix : Physical distribution : Various decision regarding distribution of products.
- Channels of distribution : Whether wholesalers, retailors to be used or not.
- Physical movement of the products from producer to consumers.
- Storage, transportation, managing inventory (stock) etc.

Products : Product in anything that can be offered to a market to satify a want or need.

1. Consumer Product : Purchased by the ultimate consumers for personal needs.e.g. Soap, toothpaste, textile etc.

2. Industrial Products : Used as inputs in producing other products eg. raw materials, toots etc.

Detailed Study of 4 P’s (Elements) of Marketing Mix :

PRODUCT MIX Three components are

i) Branding - giving a name / a sign / a symbol etc to a product eg. : Pepsi - Nike -
ii) Packaging : Act of designing and producing the container or wrapper of a product.
- Good packaging often helps in selling the product so is called a silent salesman.
iii) Labelling - Description of the product, its contents the manufacturers, date & time of manufacturing - Helps in promotion / grading / identifying the product.

PRICE MIX : -
Price, pricing strategies, Price determination.
Price - Amount of money paid by a buyer (or recieved by a seller) in consideration of the purchase of product or a services.

Pricing Strategies :- Price skimming - higher prices at initial stages to recover fixed costs.
Penetration pricing - Lower initial price to capture a large market.
Price determination / Factors affecting Pricing decisions

1. Pricing objectives : affects price of product / service e.g. maximum profits in short term keep to high price.
2. Product cost : Sets lower limits of the price.
3. Extent of competition in the market : No competition means compete freedom in fixing its price.
4. Utility & demand : More demand - Move price.

Sometimes Less price - more demand depends upon the utility of the product.

Place Mix/ Physical Distribution Mix : Covers all the activities required to physically move goods from manufacturers to the customers. Important activities includel.
1. Order processing : Occurate & speedy order processing leads to profit & goodwill & vise versa.
2. Transportation : Addi value of the goods by moving them to the place where they are required
3. Inventory control : Additional demand can be met in less time, the need for inventory will also be low.
4. Ware housing : Need arises to fill the gap between the time of product is produced & the time it is required for consumption.

Channels of Distribution :
Direct Chennal - Manufacturer - Customer
Indirect Chennal - Manufacturer - Retailer - customer
Manufacturer - wholesaler - Retailer - customer
Manufacturer - Agent - wholesaler - Retailer customer

Factors Determining Choice of Channels of Distribution :-
Choice of appropriate channel of distribution is a very important marketing decision, which affects the performance of an organisation. Whether an organisation will adopt direct marketing channels or long channels involving no. of intermediaries is a strategic decision. (Image 7)

Promotion Mix
It refers to combination of promotional tools used by an organisation to achieve its communication objectives.
Tools
1. Advertising : Most commonly used tool of promotion. It is an impersonal form of communication, which in paid by the marketers (sponsors) to promote goods or services. Common moders are ‘newspaper’, ‘magazine’, ‘television’ & ‘radio’.

Merit : -
1. Mass reach - TV & radio network
2. Choice - Selection by keeping in mind the target.

Limitations :
1. Less forceful as there is no direct communication.
2. Lack of feedback as there is no immediate & accurate feedback mechanism.
Factors : Influencing choice of advertising media.
1. Selectivily - Ability of a medium to reach a particular audience.
2. Cost - Amount of funds available for advertising.
3. Performance - Refers to the durability of the medium.

2. Sales Promotion :- Short term incentives designed to encourage the buyers to make immediate purchase of a product / service.
Techniques
1. Rebate : Special price to clear off excess inventory.
2. Discounts : Price reduced to induce buyers to buy move.
3. Sampling : Free sample of a product to costumer to try product & learn about it.
4. Lucky draw : Lucky draw coupon eg. purchase an easy product & win a car. etc.

3. Personal Selling :
Involves oral presentation of message in the form of conversation with one or more prospective customers for the purpose of making sales. It is personal form of communication.

Role of Personal Selling
1. Importance to businessman - Very effective flexible tool.
2. Importance to customer - They get latest market information and export advice.
3. Inportance to Society : Employment opportunities & product standardisation.

4. Publicity : is a non-personal form of communication & against advertising it is a non-paid form of communication e.g. If a manufacturer develops a car engine runs on water instead of petrol & this mews is covered by television / radio / newspaper, it would be termed as publicity as the manufacturer benefit from it without bearing any cost.
Merit : Mass reach, more credibility
Limitation : Not with in th control of firm.

Questions Based on ‘Marketing’
1 Marks Question
1. State any one pillar of marketing concept. (Hint. Satisfying the needs of customers better than competitions)
2. Mention any two objectives of marketing management (i. creation of demand & ii. customer satisfaction)
3. Give two examples of shopping products. (shoes & jewellery)
4. Most commonly used distribution channel for most consumer goods? (Manufactors - Wholesales - Retailer - Consumer)
5. Mention any two features of advertising? (i. paid form of communication, ii. Non-personal)

3/4 Marks Questions
6. What is meant by “Branding’ Staff any three qualities of a good brand name?
7. State three functions performed by channels of distruction.
8. State any three important merits of advertising.
9. Explain any three factors to be considered in the pricing decision.
10. Explain the four communication tools of ‘Promotion mix’?

5/6 Marks Questions
11. Sate & explain any five / six functions of marketing.
12. What do you mean by ‘Marketing mix’ explain its components.
13. “It pays to advertise’. ‘Advertising is a socialwaste’ Reconcile.
14. Explain the term ‘Brand’. ‘Brand Name’, ‘Brand mark’ &
‘Trade-mark’ with example.
15. Explain the factors determining choice of channels of
distribution of any product.

Please click the link below to download pdf file for CBSE Class 12 Business Studies Marketing Management Notes