Marketing – CBSE Notes for Class 12 Business Studies, Study notes of Business

Download Marketing – CBSE Notes for Class 12 Business Studies and more Study notes Business in PDF only on Docsity! Marketing – CBSE Notes for Class 12 Business Studies 1. Market It refers to the ‘set of potential and actual buyers of a product or service’. 2. Customer It refers to the people or organisations that seek satisfaction of their needs and wants. 3. Marketer or Seller The marketer can be a person or organisation who make available the products or services and offer them to the customer with an intention of satisfying the customer with an intention of satisfying the customer needs and wants. 4. Marketing It is a social process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others. According to JF Pyle, “Marketing is that phase of business activity through which the human wants are satisfied by the exchange of goods and services.” 5. Features of Marketing (i) Need and want (ii) Creating a market offering (iii) Customer value (iv) Exchange Mechanism 6. Marketing Management It means management of all the activities related to marketing or in other words we can say, it refers to planning, organising, directing and controlling the activities which result in exchange of goods and services. Marketing management involves following activities (i) Choosing a target market (ii) Growing customers in target market (iii) Creating superior value 7. Difference between Selling and Marketing The marketing and selling can be differentiated on the basis of (i) Scope (ii) Objective (iii) Focus (iv) Start and end (v) Efforts (vi) Supremacy (vi Approach (viii) Demand 8. Marketing Management Philosophies (i) Production concept (ii) Product concept (iii) Selling concept (iv) Marketing concept (v) Societal concept 9. Objectives of Marketing Management (i) Creation of demand (ii) Market share (iii) Goodwill (iv) Profitable sales volume through customer satisfaction 10. Functions of Marketing (i) Gathering and analysing market information (ii) Market planning (iii) Product designing and development (iv) Standardisation and grading (v) Packaging and Labelling (vi) Branding (vii) Customer support services (viii) Pricing of products (ix) Promotion and selling (x) Physical distribution (xi) Transportation (xii) Storage and warehousing 11. Role of Marketing (i) Role in firm (ii) Role in the economy 12. Marketing Mix The marketing mix refers to the ingredients or the tools or the variable which the marketer mixes in order to interact with a particular market. According to Philip Kotler, “Marketing mix are the set of – marketing tools that firm uses to pursue its marketing objectives in the target market.” 13. Elements of Marketing Mix (i) Product (ii) Place (iii) Price (iv) Promotion 14. Product The product element of the marketing mix signifies the tangible or intangible product offered to the customer which satisfies the need. 15. Classification of Product or Service Product or goods can be classified in two categories (i) Consumer goods (ii) Industrial goods 16. Consumer Goods (i) On the Basis of Durability (a) Durable products (b) Non-durable products (c) Services (ii) Classification Based on Consumers Buying Behaviour and Attitude (a) Convenient goods (b) Shopping goods (vii) Risk taking 29. Types of Distribution Levels (i) Zero Level Channel/Direct Channel (ii) Indirect Channel 30. Factors Determining Choice of a Channel (i) Product-related factors (ii) Competitive factors (iii) Company related factors (iv) Market-related factors (v) Environmental factors 31. Components of Physical Distribution 32. Promotion Mix It refers to all the decisions related to promotion of sales of products and services. Following are the tools or elements of promotion. They are also called elements of promotion mix.’ (i) Advertising (ii) Sales promotion (iii) Personal selling (iv) Publicity 33. Advertising It can be defined as the paid form of non-personal presentation and promotion of ideas, good or services and by identified sponsor. 34. Advantages of Advertisement (i) Reach (ii) Choice (iii) Legitimacy (iv) Expressiveness (v) Economy (vi) Enhancing customer satisfaction 35. Disadvantages of Advertisement (i) Less forceful (ii) Less effective (iii) Difficulty in media choice (iv) Inflexibility (v) Lack of feedback 36. Objections to Advertising (i) Adds to cost (ii) Undermines social values (iii) Confuses the buyers (iv) Encourages sale of inferior products (v) Some advertisements are not appealing 37. Different Media Available for Advertising (i) Newspapers (ii) Magazines (iii) Television (iv) Radio (v) Outdoor (vi) Internet 38. Sales Promotion It refers to short-term use of incentives or other promotional activities that stimulate the customer to buy the product. 39. Sales Promotion Techniques for Customers (i) Rebate (ii) Discount (iii) Refunds (iv) Product combination (v) Quantity gift (vi) Instant draws and assigned gift (vii) Lucky draw (viii) Usable benefit (ix) Full finance @ 0% (x) Sampling (xi) Contents 40. Merits of Sales Promotion (i) Attention attract (ii) Useful in new product launch (iii) Synergy in total promotion efforts (iv) Aid to other promotion tools 41. Demerits of Sales Promotion (i) Reflect crisis (ii) Spoil product image 42. Personal Selling Personal selling means selling personally. This involves face-to-face interaction between seller and buyer for the purpose of sale. 43. Features of Personal Selling (i) Personal interaction (ii) Two-way communication (iii) Better response (iv) Relationship (v) Better convincing 44. Qualities of a Good Salesman (i) Physical qualities (ii) Social qualities (iii) Mental qualities (iv) Other qualities 45. Publicity Publicity is a non-paid form of impersonal communication (i) Merits of Publicity (a) More credibility (b) Mass research (ii) Limitations of Publicity (a) Firms have no control (b) Limited information