MARKETING CLASS 12 NOTES
Class 12 Business Studies Chapter 11 Notes
In the traditional sense, the term ‘market’ refers to the place where buyers and sellers gather to enter into transactions involving the exchange of goods and services. But in modern marketing sense, it refers to a set of actual and potential buyers of a product or service.
Marketing: The term marketing has been described as performance of business activities that direct the flow of goods and services from producers to consumers. Marketing is not merely a post-production activity. It includes many activities that are performed even before goods are actually produced and continue even after the goods have been sold.
Functions of Marketing: The important functions of marketing include gathering and Analysing Market Information, Marketing Planning, ProductDesigning and Development, Standardisation and Grading, Packaging and labeling, Branding, Customer Support Services, Pricing of Products, Promotion, Physical distribution, Transportation, Storage or Warehousing.
Role of Marketing: By adopting marketing orientation, an organization whether profit-making or non-profit making, can achieve its goals in the most effective manner. Also marketing acts as a catalyst in the economic development of a country and helps in raising the standards of living of people.
Marketing Mix is a set of marketing tools that the firm uses to pursue its marketing objectives in a target market. The variables or elements of the marketing mix have been classified in to four categories, popularly known as four Psof marketing viz., Product, Price, Place and Promotion. These elements are combined to create an offer.
Product: In common parlance, the word ‘product’, is used to refer only to the physical or tangible attributes of a product. In marketing, product is a mixture of tangible and intangible attributes, which are capable of being exchanged for a value, with the ability to satisfy customer needs. It is anything that can be offered to a market to satisfy a want or need.
Products may broadly be classified into two categories—industrial products and consumers’ products. Products,which are purchased, by the ultimate consumers or users for satisfying their personal needs and desires are referred to as consumer products. On the basis of shopping efforts involved, the products are classified as ConvenienceProduct, Shopping Products and Speciality Products. On the basis of their durability, consumer products have been classified into categories—Durable, Non-durable, and Services. Those activities, benefits or satisfaction, which are offered for sale, e.g., dry cleaning, watch repairs, hair cutting, are called services.
Industrial products are those products, which are used as inputs in producing other products. These are broadly classified in to
(i) Materials and Parts,
(ii)Capital Items, and
(iii) Supplies and Business Services.
Packaging: The act of designing and producing the container or wrapper of a product is referred to as packaging. There can be three different levels of packaging viz., Primary package, Secondary packaged, Transport package. Packaging performs a number of functions in the marketing of goods. Some of the important functions include Product identification; Product protection; Facilitating the use of the product, and the Promotion of goods and services.
Advertising is the most commonly used tool of promotion. It is an impersonal form of communication, which is paid for by the marketers (Sponsors) to promote some goods or services. The merits of advertising, as a medium of communication, including
(i) Mass reach;
(ii) Enhancing customer satisfaction and confidence;
(iii) Expressiveness; and
The limitations of advertising are that it is
(i) less forceful
(ii) lacks Feedback
(iv) low effectiveness.
The most common Objections to Advertising are that it
(i) adds to cost;
(ii) undermines social Values;
(iii) confuses the buyers;and
(iv) encourages sale of Inferior Products.
Most of the criticisms against advertising are not fully true. Advertising is therefore considered an essential function of marketing.
Sales Promotion refers to short-term incentives, which are designed to encourage the buyers to make immediate purchases of a product service. These include promotional efforts other than advertising, personal selling and publicity, used by a company to boost its sales. Commonly used SalesPromotion Activities include rebate, Discount, refunds, Product Combinations,Quantity Gift, Instant Draws and Assigned Gift, Lucky Draw, Usable Benefit,Full Finance @ 0%, sampling, and contests.