Chapter 11: Marketing Management| NCERT Quick Revision Notes for Class 12 Business Studies

 Chapter 11 Marketing class 12 Notes Business Studies

MEANING OF SOME IMPORTANT TERMS:
• Needs = basic human requirements. Essential items necessary or fundamental to human existence.
• Wants= desire for a particular product. Tend to be “satisfier specific”.
• Demand- willingness to buy is backed by purchasing power
• Utility – want satisfying power of a product.
• What can be marketed:
• A product =
• bundle of utility not confined to physical products but can refer to other things of value such as services, ideas, place. It refers to anything that satisfies a need or want.
• may be tangible or intangible(i.e. goods and services)
• even people can be marketed
• Customers= people or organizations that seek satisfaction of their wants.
• “Marketers‟ =
• Anyone taking a more active role in the process of exchange is called a marketer. Normally it is the seller. But in certain situations, it may also be the buyer. This may be in the situation of rare supply.
• Sellers as marketer are the deliverers or providers of satisfaction. They makes available products or services and offers them to customers with an intention of satisfying customer needs and wants. They can be divided into:
• Goods marketers (such as Hindustan Lever)
• Services marketers (such as Indian Airlines)
• Others marketing experiences (such as Walt Disney) or places (like tourist destinations).
• Marketing activities =activities carried on by the marketers to facilitate exchange of goods and services between the producers and the users of such products.
• Market is:
• Place where buyers and sellers meet and conduct buying and selling activities. It does not necessarily mean a geographical place(e.g. conduct of business thro telephone, mail or internet)
• The other ways in which this term is being used is in the context of a product market (cotton market, gold or share market), geographic market (national and international market), type of buyers (consumer market and industrial market) and the quantity of goods transacted (retail market and wholesale market).
• In the modern marketing sense, it refers to a set of actual or potential buyers of a product or service i.e. all customers who share a particular need or want and are able to buy the product (also referred to as target markets)
Important Features of Marketing
1. Needs and wants: Satisfaction of the needs and wants of individuals and organizations.
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/for something of value to them.
Meaning and concept of Marketing Management
Marketing management means management of the marketing functions. It is the process of organizing, directing and controlling the activities related to marketing of goods and services to satisfy customers’ needs & achieve organizational goals.
The process of Marketing involves:
i. Choosing a target market
ii. Getting, keeping as well as growing the customer
• that is, ensure that the target customers purchase the firm‘s product, ensure that they keep their customers satisfied with the products and attract new customers so that the firm can grow.
iii. Create, develop and communicate superior values to the customers.
Functions of Marketing/Marketing activities
Gathering And Analyzing Market Information:
• systematic investigation of facts
• SWOT analysis
• Necessary to identify needs
• Decisions can be wrt. Identifying customer needs and wants, identifying buying motives, choice of a brand name, packaging and media used for promotion.
• Data is available both from primary as well as secondary sources.
Marketing planning :
• Aim = to develop a complete marketing plan so that the marketing objectives can be achieved.
• It also must specify the action programs .
• E.g if a marketer aims at enhancing his market share in the country in the next three years, then his marketing plan should include various important aspects like plan for increasing level of production, promotion of products etc.
Product designing and development:
• Involves decisions regarding the product to be manufactured and it‘s attributes such as its quality considerations, packaging, models and variations to be introduced etc..
• Done by anticipating customer needs and developing new products or improving existing products to satisfy these needs.
Standardization and grading:
• Standardization = Process of setting certain standards for a product on the basis of its desired qualities. E.g. ISI mark for electrical goods.
• Grading = Division of products into classes made up of units possessing similar features such as for agricultural products
Packaging and labeling:
• Packaging‘ refers to designing a package (that is a wrapper or a container) for a product.
• Packaging protects the products from damage , risks of spoilage, breakage and leakage. It also makes buying convenient for customers and serves as a promotional tool.
• Labeling = designing a label to be put on the package. It may vary from a simple tag to complex graphics.
Branding
• Whether to sell the product in its generic name or in a Brand name.
• Helps in differentiation, builds customer loyalty and promote its sale.
• Decision = whether each product will have a separate brand name or the same brand name to be used for all products.
Concepts & Philosophies of Marketing
1. PRODUCTION CONCEPT = In the earlier days of the industrial revolution, the number of producers were limited, → limited supply of industrial products → not able to match demand . So, anyone who was able to produce goods could easily find buyers for the same.
2. PRODUCT CONCEPT= With passage of time, the supply improved→ customers started looking for products that were superior in performance, quality and features.
3. SELLING CONCEPT= increase in scale of production→ competition among the sellers → Product quality and availability alone did not ensure survival as a large number of firms were now selling products of similar quality.
4. MARKETING CONCEPT : Implies that a firm can achieve its goals by identifying needs of the customer and satisfying them better than the competitors. Customer satisfaction is the precondition for realizing the firm’s goal and objectives,
5. SOCIAL MARKETING CONCEPT : Under this concept customer satisfaction is supplemented by social welfare. Some products bring harmful effect on environment so these should not be supplied. It pays attention to the social, ethical and ecological aspects of marketing. Raman, Joginder, John, Iqbal and Shreya are friends. They are operating different business. Each one has his/her own concept regarding operating their business. Raman believes in producing products at a large scale. Thereby decreasing the average cost of the products and selling it’s at a reasonable price.
Meaning and Concept of Marketing and Selling
Marketing is a wide term. It refers to a large set of activities of which selling is just one part. A marketer before making the sale does a lot of other activities such as planning the type, design of the product, the price and selecting the distribution outlets at which the same would be available.
Selling: refers to the sale of goods or service through publicity, promotion and salesmanship. The title of the product is transferred from seller to buyer. The entire focus in selling is to covert the product into cash.
Difference between Selling & Marketing

Marketing Mix
There are a large number of factors that affect marketing decisions. They can be classified as:
• Non-controllable factors and Controllable factors:
To be successful, a firm needs to take sound decisions wrt controllable factors while keeping the environmental factors in mind.
To develop marketing tools, marketing managers use the above mentioned controllable factors and the set of marketing tools that a firm uses to pursue its marketing objectives in the target market is described as Marketing Mix. Success of a market offer will depend upon how well these ingredients are mixed to create superior value for customers and simultaneously achieve their sales and profit objective. Thus, an ideal marketing mix would need:
• Producing satisfying products • Offered to buyers at a reasonable price
• Conveniently available • About which communication is offered
Marketing mix refers to ingredients or the tools or the variables which the marketeer mixes in order to interact with a particular market.
11.8.1 Elements of Marketing Mix
The four main elements of marketing mix as classified by MCcarthy are:
A. Product
B. Price
C. Place/Physical Distribution
D. Promotion
These elements are more popularly known 4 P’s of the marketing.

Elements/4 Ps of Marketing Mix
1. Product Mix: All the features of the product or service to be offered for sale.

2. Price Mix: Value (Money) in lieu of product/service received by seller from a buyer.

3. Promotion Mix: Informing the customers about the products and persuading them to buy the same.

4. Place Mix: Physical distribution: Various decisions regarding distribution of products.
• Channels of distribution: Whether wholesalers, retailers are to be used or not.
• Physical movement of the products from producer to consumers.
• Storage, transportation, managing inventory (stock) etc.
i) Branding:
The process used to create a distinct identity of a product. It is the process of using a name, term, symbol or design individually or in some combination to identify a product.
Brand : Name, term, sign, design or some combination of the above used to identify the products of the seller and to differentiate them from those of competitors.
Qualities of a Good Brand Name
1. Short, easy to pronounce, spell and remember(Rin, Vim, Ponds)
2. Suggest product benefits and quality (Genteel, Boost)
3. Distinctive (Zodiac, Safari)
4. adaptable to packing or labeling requirements, to different advertising media and to different languages.
5. Versatile to accommodate new products(Maggi)
6. Capable of being registered and protected legally
7. Have staying power(should not get outdated easily.
Advantages of Branding-
Advantages to the marketers:
1. Enables product differentiation:.
• Distinguishes the firms products from that of its competitors, thus secures and controls its markets.
2. Helps in advertising and display programmes:
• Without a brand, the advertiser can only create an awareness about the generic product and not be sure of the sale of his brand.
3. Differential pricing:
• As when customers like and become used to a brand, the