Notes Chapter 11 Marketing Management
Class 12 students can refer to Chapter 11 Marketing Management notes given below which is an important chapter in the class 12 Business Studies book. These notes and important questions and answers have been prepared based on the latest CBSE and NCERT syllabus and books issued for the current academic year. Our team of Business Studies teachers has prepared these notes for class 12 Business Studies for the benefit of students so that you can read these revision notes and understand each topic carefully.
Marketing Management Notes Class 12 Business Studies
Refer to the notes and important questions given below for Marketing Management which is really useful and has been recommended by Class 12 Business Studies teachers. Understanding the concepts in detail and then solving questions by yourself will help you to learn all topics given in your NCERT Books.
Marketing – Concept, functions and philosophies –Product, Prize and Standard,
Marketing Mix – Concept and elements,
Product – branding, labelling and packaging Concept,
Price – Concept, Factors determining price, Physical
Distribution – concept,
Promotion – Concept and elements; Advertising, Personal Selling, Sales Promotion and Public Relations
♦ Understand the concept of marketing.
♦ Discuss the functions of marketing.
♦ Explain the marketing philosophies.
♦ Understand the concept of marketing mix.
♦ Describe the elements of marketing mix.
♦ Understand the concept of product as an element of marketing mix.
♦ Understand the concepts of branding, labelling and packaging.
♦ Understand the concept of price as an element of marketing mix.
♦ Describe the factors determining price of a product.
♦ Understand the concept of physical distribution.
♦ Understand the concept of promotion as an element of marketing mix.
♦ Describe the elements of promotion mix.
♦ Understand the concept of advertising and personal selling
♦ Understand the concept of sales promotion.
♦ Discuss the concept of public relations.
Marketing is a social process by which individual groups obtain what they need and want through creating offerings and freely exchanging products and services of value with others. – Philip Kotler
Marketing management is “the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value”. – Philip Kotler
Elements of marketing mix
A market consists of all the potential customers who have both the ability and willingness to buy a product or service to satisfy their needs or wants Features of marketing
♦ It seeks to provide what individuals or groups need or want
♦ A market offering is created by the marketer.
♦ It adds value toa product by increasing its utility
♦ It is facilitated through the exchange mechanism
What can be Marketed?
♦ Physical product, Services, Ideas, Person, Place, Experience, Properties, Events, Information, Organisations Functions of Marketing
♦ Gathering and analysing market information is done to know the taste and preference of the target market.
♦ Marketing planning is needed to meet the marketing objectives of the firm effectively and efficiently.
♦ Product designing and development is carried out to make the product innovative and attractive.
♦ Packaging and labelling are needed for product protection, product identification and product differentiation.
♦ Branding helps to createa unique identity of the products.
♦ Customer support services help to create a good image of the marketer in the eyes of consumers.
♦ Pricing of product is a crucial decision as it may greatly influence the demand for a product.
♦ Promotion helps to boost the sales of a product.
♦ Physical distribution ensures the availability of the product at the right place, at the right time and in right condition so as to facilitate its purchase.
♦ Transportation creates place utility through movement of goods from the production of goods to the place of distribution.
♦ Warehousing creates time utility by providing for the storage during the time gap between the production and distribution of goods.
♦ Standardisation helps to produce goods as per predetermined specifications and grading facilitates their classification into groups on the basis of some criterion like quality, size etc.
MARKETING MANAGEMENT PHILOSOPHIES/CONCEPTS
A product is anything of value i.e. a product or service offered to a market to satisfy needs or wants. Important product decisions include
♦ Determining its layout, features, quality, design etc.
A Product includes
♦ Physical product
♦ After sale services
♦ Handling grievances
♦ Replacement of parts etc.
Types of utilities offered by a product
♦ Functional utility
♦ Psychological utility
♦ Social utility
Packaging: Definition Packaging is the process of desiging a suitable wrapper or container for a product. Importance of Packaging
♦ Rising standards of health and sanitation
♦ Useful in self service outlets
♦ Innovative packaging adds value to a product
♦ Facilitates product differentiation
Levels of Packaging
♦ Primary package refers to the immediate container of a product.
♦ Secondary packaging refers to the additional protection provided besides primary package.
♦ Transportation packaging refers further packaging that helps in storage, identification of transportation of the product.
Functions of Packaging
♦ Helps in product identification
♦ Provides protection to the product
♦ Facilitates the use of product
♦ Assists in promotion of the product
Branding is the process of assigning a name (brand name), sign or symbol (brand mark) or a combination of all to identify the products of a seller or a group of sellers and to distinguish them from those of the competitors.
Brand Mark: Definition
A brand mark is that part of a brand can be recognised but is not utterable.
Brand Name: Definition
A brand name is that part of a brand which can be spoken.
Trade Mark: Definition
Trade mark is used in context of a registered brand. Advantages of branding to the customers
♦ Supports in product identification
♦ Certifies quality
♦ Considered to bea status symbol
Advantages of branding to the manufacturers
♦ Facilitates product differentiation
♦ Assists in advertising and display programmes
♦ Facilitates differential pricing
♦ Ease in the launching of new products
Qualities of a good brand name
♦ Short and easy to pronounce, spell and remember
♦ Reflects the functions of the product
♦ Distinctive/easily identifiable
♦ Adaptable can be used in labelling or packaging
♦ Versatile can be used for brand extension
♦ Should not become outdated soon
♦ Capable of being registered
Labelling refers to the process of designing a label for a product which may vary from a simple tag to a complex graphic. Functions of labelling
♦ Describes the product and specifies its contents
♦ Helps in identification of the product or brand
♦ Enables grading of products
♦ Assists in promotion of products
♦ Provides information required by law
Price is the monetary value paid in consideration for purchase ofa product or service by a buyer to its seller. Factors affecting price determination
♦ Cost of product
♦ The utility and demand
♦ Extent of competition in the market
♦ Government and legal regulations
♦ Pricing objectives
♦ Marketing methods used.
Physical Distribution: Definition
Physical distribution includes all those activities that ensure the availability of the product at the right place, at the right time and in right condition so as to facilitate its purchase.
Promotion refers to the set of activities undertaken by a marketer to inform the prospective buyers about the product and persuading them to make a purchase. Promotion mix
♦ Personal selling
♦ Sales promotion
♦ Public relations
Advertisement is a paid form of non¬personal communication undertaken by the marketers to boost the sale of a product or a service.
Objections to Advertising
♦ Adds to cost
♦ Undermines social values
♦ Encourages sale of inferior products
♦ Some advertisements are in bad taste
♦ Confuses the buyers
Features of Advertising
♦ Paid form
♦ Identified sponsor
Role of Advertising
♦ Enhancing customers awareness about the product
♦ Helps in creating demand for both old and new products
♦ Repeated advertisements increases the confidence of the consumers
♦ Improves the public image of the company
♦ Helps to create employment opportunities
Personal Selling: Definition Personal selling refers to a personal form of communication between the seller and the prospective buyer. Merits of personal selling
♦ It isa flexible tool of promotion
♦ It seeks to provides direct feedback from the prospective buyers Features of Personal selling
♦ Involves personal form of communication
♦ May lead to the development of long term relationship between the company and a buyer
Qualities of a Good Salesman
♦ He should havea neat and tidy appearance.
♦ He should be decently dressed up and carry himself well.
♦ He should be cheerful and confident in his dealings.
♦ He should be able to communicate assertively.
♦ He should be alert and intelligent so that he is able to mould his sales talk as per the need of the situations.
♦ He should also passess good knowledge about the product that he is selling.
Sales promotion: Definition
Sales promotion refers to the short term incentives offered by the marketers to promote the sale Of their products
Commonly used Sales Promotion activities
♦ Refund Public
Public relations refers to the practice of managing communication between an organisation and its public in order to create and maintain a positive image about itself and its products
Roles of Public Relations
♦ Public relations helps to create a positive image about the company in the eyes of various interest holders like consumers, government, suppliers etc.
♦ It helps in launching new products as they may be accepted easily because of they may be accepted easily beca