Class 12 Business Studies Marketing

              

             Marketing Management

In this chapter, We have to discuss some important aspects of marketing and its various tools, techniques, strategies, and component of various mixes.

Contents of marketing management that we have to focus on in that area.
1. Marketing:-meaning, features, philosophies.
2. Functions of marketing.
3. Marketing mix;- Elements of marketing mix 4P[product ,price, physical distribution, promotions]

• So let's start by taking each aspect of marketing in depth one by one.

Marketing's Meaning:- It is a Process by which buyers and sellers interact with one another to purchase and sell goods and services. And it is also a social process by which both individuals and groups obtain what they need and want through offering, creating, and exchanging products and services.

• Features of marketing are as follows ;

1. Customer focus:- All the focus of marketing is the need of the customer. Its main

motive is totally satisfying all the wants of the customer.

2. Objective-oriented:- All businesses are objective-oriented. Different businesses are

different objective levels but the main aim are to earn profit along with human wants.

3. Continues process:- Marketing is a continuous and regular process. A marketer has to consistently monitor the environment. This helps in coming up with new products.

4. Exchange Mechanism:- It involves the exchange of products and services for money

in exchange buyers pay money and in return, they take products and services.

• Now we understand the Concept of Marketing Management.

Marketing Management means management of all the activities related to marketing in other words we can say, it refers to planning, organizing, directing, and controlling the activities which result in the exchange of goods and services.

• Marketing Management Philosophies

1. Production Concept:- Production of Goods should be in large amount but the cost of manufacturing is very low so every customer purchase products.

2. Product Concept:- This concept focus on the area of quality of the product. The manufacturer must keep in mind that the quality of products is good and as well as high.

3. Selling Concept:- This concept focus to sell whatever is produced by the firm using various promotional techniques.

4. Marketing Concept:- This concept focus on the area where the buyer and seller are buying and selling product and services in which the seller keep in his mind that the satisfaction of the customer is necessary.

5. Societal Concept:- This concept focus on the area, of customer satisfaction, which is necessary but blindly following the need of customer may harm society. Hence customer satisfaction should be done ethically.

• Functions of Marketing

1. Research of Market:- Marketers identify the market by doing research on it. It accesses all the necessary information related to their business. Research can be performed by doing SWOT[Strength, Weakness, Opportunity, Threats] analysis.

2. Planing of Market:- Marketer has to plan to take the necessary steps towards achieving the marketing objective. eg; increasing sales, increasing advertising activities.

3. Product Designing and Development:- Every marketer offers a product to the customer so it is necessary to design a product to that customer easily identify the company's product.

4. Standardisation and Grading:- Standardisation means regularly stable the quality standard of the product to achieve uniformity in the product.

Grading:- It means classifying the products on some specific bases. The bases of classification can be shape, size, quality and so on.

5. Packaging and Labelling:- Packaging plays an important role in selling as attractive packing induces the customers to buy the product which is why packing is called 'Silent Salesman'.

Labelling:- It refers to the informative part of the packaging and it also gives information to given customers.

6. Brading:- This means giving a special name to the products. eg; LG, Haier and so on.

7. Customer Support Services:- Nowadays consumer is the kingpin of the market. So every business and businessman's main aim is to capture a big market by satisfying customers.

8. Pricing of Products:- This function is highly sensitive because for every single purchase by the buyer he pays the price of the products.

9. Promotion and Selling:- It includes all the activities related to increasing the sale of the business's product through various promotional and selling techniques.

10. Physical distribution:- Marketer has to plan which channel of distribution to follow.

11. Transportation:- It overcomes the problem of the gap between production and consumption. It mobilizes the product from one place to another place with a specified channel.

12. Storage and Warehousing:- It is very necessary to keep the products safe to protect them from moisture and insects. Marketer often maintains their own warehouse and cold storage.

Marketing Mix:- It refers to the ingredients or the tool the variables which the marketer mixes to interact with a particular market.

Elements of Marketing Mix:- There are 4 main elements of Marketing Mix as follows;

1. Product

2. Price

3. Place/Physical Distribution 

4. Promotion

          

• Let's understand the concept of Marketing Mix deeply one by one;

1. Product

    Product Mix:- It refers to important decisions related to the product such as quality, product, design, packing, etc.

IMPORTANT COMPONENTS OF PRODUCT MIX

[a] Branding [b] Packaging [c] Labelling.

• let's understand the concept of Components of Product Mix.

[a] Branding:- A brand is the identification of a product. It can be in the form of a name, symbol, design etc. It also makes your product superior to the competitor's product.

• Features/Qualities of the good brand name.

       [i] Short and Sample. eg; Lux, Dettol etc.

       [ii] Easy to Pronounce. eg; Sony, Redime etc.

       [iii] Unique and easy to Identify. eg; Asus, Dell etc.

       [iv] Meaning in other languages. eg; brand name 'nova' means does not go.

 

Advantages are;

[i] It helps in Product Differentiation.

[ii] It helps in Advertising.

[iii] It helps in Managing Prices.

[iv] It helps in the Easily Identification of Products.

[v] It maintains quality.

[b] Packaging:- It is the basic activity of every company which is concerned with designing, an appropriate wrapper or bag for the product.

• Important and Functions of Packaging.

[i] Protection:- It provides protection from damages.

[ii] Identification:- It helps for easy identification of the Product.

[iii] Convenience:- Handling of the product becomes more convenient with appropriate

Packing.

[iv] Promotion:- It plays the silent role of a salesman.

[v] Differentiation:- It helps the customers to differentiate between goods based on

quality.

• Levels of Packaging:- There are three Levels of Packaging;

[i] Primary Packaging:- It refers to the immediate packaging of the product. It gives

Primary Protection of the Products. eg; can of cold drink.

[ii] Secondary Packaging:- These are additional packagings which give more protection.

eg; cardboard box toothpaste.

[iii] Transportation Packaging:-This are the packaging used for storing or transporting

goods. It also gives protection to the Product.

[c] Labelling:- It means putting or tagging identification marks on the package. It is the

carrier of information.

• Functions of Labelling

          [i] It describes the products and specifies their contents.

         [ii] It helps the customers to identify the product.

[iii] It Promotes sales by making the product good-looking or attractive.

[iv] It gives information about the Product.

2. Price

      Price Mix:- It refers to important decisions related to fixing the price of a commodity.

•       Factors kept in mind when the price of a commodity is.

   

       1. Pricing Objectives:- Price of the Product plays a very crucial role in fixing the price.

          [a] If the firm wants to capture a big market by fixing prices.  

          [b] For survival in the market firms have to reduce their price according to their

                          customer.

                    

      2. Product Cost:- Determining the cost of the Product, must cover all the total or

            the variable cost of the product.      

                                  

      3. Competition in the Market:- The price has to be fixed only keeping in view the

            market competition.         

      

      4. Customer's Demand and utility:- Fixing price is the demand for a product or

          service when the product is inelastic[fewer substitutes are there in the market].

      5. Government and Legal Regulation:- To protect the interest of public government

          intervene to control the prices of the product and services.

       

3. Place/Physical Distribution

     

            Place Mix:- It refers to the important decision related to the physical distribution of 

                                 goods and services.

• Channels of Distribution:- It refers to the middleman who helps in distributing the goods. And in another word, Mobilise the goods from one place to another place.

         It involves various People such as Producer - Wholesaler -Retailersr - Consumer

           

•  Types of Distribution Levels are;

      

           [A] Zero level Channel/Direct Channel:- Through it, firm sell their product

                  without any intermediaries and middlemen.

   

        [B] Indirect Channel:- Through it, the firm sells its product with the help

                 of intermediaries and middlemen.

              

                    [a] One Level Channel:- It includes only one intermediary i.e., the retailer.

        

                    [b] Two Level Channels:- It includes two intermediaries for the 

                               distribution of the product i.e., the wholesaler and retailer.

                    [c] Three Level Channels:- It includes three intermediaries for the

                                distribution of the product i.e., agent or broker, wholesaler, retailer.

• Decision and Components of Physical Distribution                                                                          

             1. Order Processing:- It means the time difference in taking orders from

                     customer and delivery of goods as per order.

             2. Transportation:- It means the physical movement of goods from one place to 

                     another place where they are required. It increases the prices of the products.

                                              

                 3. Warehousing:- It is very useful for the manufacturing company if goods are

                     not sale during the year the company keep as stock in the warehouse.

             4. Inventory:- It refers to the maintenance of the stock of goods in the                                       warehouse. Whenever the requirement of goods through it supplies in the

                     market. It maintains the regular flow of goods in the market.

4. Promotion    

     

       Promotion Mix:- It refers to the important decisions related to the promotion of sales of

                                    products and services.

• Various tools or elements of Promotion are;

           1. Advertising    2. Sales Promotion     3. Personal Selling    4. Public Relation

     1. Advertising:- It is a marketing process in which a firm sells the product through

        media and it encourage the customer to buy the product.

• Merits/ Features of Advertising are;

           [a] Reach:- Advertising can capture a big Market. Through T.V, Radio etc.

 

          [b] Choice:- There is a large variety of media available for conducting advertising

                  eg; Newspaper, Magazines etc.

    

          [c] Expressiveness:- It provides enough opportunities for marketers to convince the

                message to the public through colours, pictures, drawings etc.

           [d] Economy:- It increases the cost of the product but it is considerably more

             economical as compared to other promotional techniques because it reaches mass

             social media.

           [e] Enhancing Customer Satisfaction:- Customers feel more about quality and feel

                 more comfortable.

    

      2. Sales Promotion:- It refers short-term use of incentives or other promotional

          activities that stimulated the customer to buy the product.

• Some of the sales promotion activities commonly used by the marketer.

    

        [a] Rebate.

        [b] Refunds.

        [c] Discount.

        [d] Samples.

        [e] Contests.

        [f] Lucky Draw. 

        [g] Premium or Gifts.

        

  3. Personal Selling:- It means selling personally. It involves face-to-face interaction, 

      door-to-door interaction between seller and buyer for the selling purpose.

•  Features of Personal Selling are; 

          [a] Personal Interaction:- Face-to-face interaction between buyer and seller.

          [b] Two-way communication:- It clarifies all the doubts of the buyer because the

                seller gives the information at the same time. 

          [c] Better Response:- When the seller is personally explaining the utilities of the 

                product to the customer does pay attention.

        [d] Relationship:- When the seller and buyer come together this may improve

                 relation between the customer and seller.

  4. Public Relations:- It means maintaining public relations with the public. And through

      this the company create goodwill in the market.

• Methods and Tools of Public Relations; 

        [a] News.

        [b] Speeches.

        [c] Events.

        [d] Written Material.

    This Marketing Management note makes you easy to learn and easy to understand and

    help in your board exam best of luck with your final examination.

                        Thanking You