This GSEB Class 12 Organization of Commerce and Management Notes Chapter 10 Marketing Management Posting covers all the important topics and concepts as mentioned in the chapter.
Marketing Management Class 12 GSEB Notes
Meaning of Marketing Process:
Marketing is a business activity, in which the products or services are diverted from the producer to the consumer.
“Marketing is a social process, in which private groups based on their requirement, produce valuable products and independently exchange goods and services.”
Functions of Marketing Process:
- Market Research
- Collection of Product
- Trans-formation of Raw Material into Consumable Products
- Standardisation and Gradation
- Labelling of the Products
- Price Determination
- Packing the Product
- Storage of Products
- Transport Service,
- Taking Insurance of the Product,
- Financial Arrangement
- Sales and Distribution System
- Selling and
- After Sales Services.
Difference between Marketing and Selling (Points):
- Area of Work,
- Beginning and End
- Need for Capital and
- Direction of Efforts.
Ideologies, Views, Concepts of Marketing Management:
Business units keep in mind specific ideology, concept or philosophy at the time of doing marketing activity, which is termed as marketing ideologies, concepts or views.
In this concept the emphasis is placed on product availability and price. But more importance is not given to the quality of the product.
In this concept emphasis is put on quality of the product. But need and selection, etc. of the consumer is not given importance.
In this concept to attract consumers direct or indirect appeal is made J,o them. But on the necessity of the consumers enough attention is not given.
In this concept research is made on necessity of the consumers, their preferences, habits, desires, etc. then accordingly product manufacturing is done. In this concept all the activities are consumer oriented.
In marketing concept after knowing consumer need, the effort is made to satisfy the same, but because of that long-term interest of the consumer, society and nation is at risk. Hence every business unit must do function of marketing management in such a way that consumer need may get satisfied and the least harm is created to environment.
Concept of Marketing Mix:
Marketing mix is a group of such marketing forces, which become useful to achieve marketing objective. It includes product, price, place (distribution) and promotion. It is known as 4P of marketing mix.
The thing which is in the form of goods or services can satisfy the need of consumers. Marketing mix includes various decisions pertaining to product like; features, packaging, branding, labelling, post sales services, etc. Out of which branding, packaging, trademark, etc. are basic processes.
Meaning of Branding:
To distinguish own product from competitor’s product producer gives name, logo, design or number; it is called branding.
Characteristics of Branding:
- Use of specific designs and colours
- Logo on the packing
- Brand presents qualities, advantages, uses, etc.
- Unique identity of the product
- Verbal and Visual identity
- Sales at higher price and
- Sales of goods speedily.
Concept of Labelling:
Labelling is a piece of paper pasted on the primary packaging of the product showing weight, size, price, date of manufacturing, ingredients, expiry date, etc.
Functions of Labelling:
- Identification of the product
- Full information about quality and type of the product
- All information about the product
- Direction for use of the product,
- It creates attraction for the product and
- It complies with legal and policy based requirements.
Packaging performs the function of decorating the product; it protects the product and makes it attractive. It can also be used for advertising.
Concept of Price:
Price refers to the value paid by the consumer for the physical, economic, social and psychological satisfaction received from the product; which is generally depicted in the form of money.
Factors Affecting Pricing:
- Production Cost
- Demand for the Product
- Competition in the Market
- Government and Legal Controls
- Price Determination on the basis of Objectives:
- Maximum Profit
- To Acquire Dominant Position in the Market
- To Sustain Competition
- Economic Condition and
- Buying behaviour.
Concept of Distribution:
Distribution refers to an arrangement of making the final product available at a place where it is required, when it is required and in whatever quantity it is required. The distribution system is designed on the basis of type of the product, number of consumers and geographical area. In this function handling and storage of the product are included.
Channels of Distribution:
- Direct Sales and
- Indirect Sale-Sale by Mediator.
The producer himself supplies the product to the buyer.
Indirect Sale / Sale by Mediator:
Indirect sale refers to the distribution system where in the producer supplies the product through one or more intermediates. It is called sale by Intermediates or Indirect Sale.
- Single Level Distribution System: In this distribution system retailer is the only mediator between producer and the consumer.
- Double Level Distribution System: In this type of distribution system there are two intermediates; wholesaler and retailer between producer and consumer.
- Three Level Distribution System: In this type of distribution system there are three intermediates; agent, wholesaler and retailer between producer and consumer.
Concept of Promotion:
It is an important part of marketing mix. It handles function of informing the consumers about the product, raising attraction among consumers about the product and converting tentative consumer into real consumer. In promotion mix advertisement, personal selling, sales promotion and publicity are included.
Meaning of Advertisement Definition:
The producer makes use of various media to inform public about his product and service. The payment is made for the same. The advertisement can be made through TV radio, dailies, magazines, internet, etc.
Role (Functions) of Advertisement:
- Creates Demand
- Benefit of Large Scale Production
- Product Awareness
- Helpful in Employment Generation
- Betterment of Standard of Living and
- Maintenance of Quantum of Sales.
Objections against Advertisement:
- Unnecessary expenditure, Social evil,
- Inferiority complex for the poor,
- Expensive ‘activity
- Portrait competitors as inferior,
- Sub-standard quality goods being sold,
- Unimpressive advertisement for unnecessary products
- Harmful effects due to addiction in long run
- Encouragement to unwanted competition and
- Cheating caused by exaggeration.
Concept of Personal Selling:
Salesman is the person who represents the business unit to the tentative consumer and his job is to highlight the nature of the product, demonstrate the product and explain its usefulness to the tentative consumer and clear doubts and convert him to real consumers.
Characteristics of Good Salesman:
- Sales-man should be smart, interactive and physically fit
- Should be good in communication, intelligent and efficient
- Ability to present the product before a customer and ability to convince the customer
- He should have all the technical and other relevant information about the product
- Honesty and good character
- His politeness and
- An ideal salesman should be enthusiastic, disciplined and ambitious.
Concept of Sales Promotion:
Sales promotion is an important component of promotion utilized along with advertisement and personal selling.
Meaning of Sales Promotion:
Sales promotions are short-term incentives that encourage the customer to buy the product or service. Sales promotions have quick effect on customers.
Sales Promotion Techniques:
- Advertisement Coupon
- Additional Gift
- Lucky Draw
- Facility of Interest Free Loan
- Distributing Samples and
- Organizing Competitions.
Publicity and Public Relation:
Concept of Publicity:
Publicity is a form of non-personal presentation of goods, services or ideas done through public media; which is free of charge. Therein information is given about the business unit or product.
Role of Publicity:
- The most reliable
- Not to pay anything
- At times publicity includes task of public relations
- Mass communication with reliability and
- It is helpful to sellers and distributors.
Concept of Public Relation:
Public relations is a group of activities that are designed or presented in such a way that it creates and maintains good impression of the company towards different parties involved with it. It takes care of all the co-partners and related classes.
- The main objective of Public relation is to maintain suitable relations and develop relations with co-partners and related classes of business unit.
- Public relation includes giving news about the company in the newspaper, publishing of the speech of the director of the company, planning seminar, workshops, competitions or sports activities, circulating news letter of the company, promoting public welfare activities and planning social or cultural programmes, etc.
Role / Functions of Public Relation:
- Maintaining good relation with audio visual media,
- New product introduction,
- Company’s news and employees achievements to be published,
- Giving director’s speech in different media,
- Taking part and organizing social and cultural programmes and
- Public interest activities to be undertaken.