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CISCEISC (Commerce) Class 12
प्रश्न पत्र३५४
पाठ्यपुस्तक उत्तर१८२१८
महत्वपूर्ण प्रश्न एवं उत्तर५६८४
अवधारणा स्पष्टीकरण और वीडियो६०५
समय सारणी१५
पाठ्यक्रम

Overview of Marketing Mix

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CISCE: Class 12

Key Points: Meaning and Elements of Marketing Mix

  • Meaning: Marketing mix is the combination of 4 basic elements (4Ps) used by a firm to satisfy customer needs and achieve marketing objectives.
  • 4Ps of marketing mix: Product, Price, Place (distribution), Promotion are the core elements of a company’s marketing system.
  • Interrelated elements: Decisions in one P affect the others, so the mix must be balanced and planned together.
  • As per William Stanton: It is a systematic combination of product, price, place and promotion to satisfy the target market(s) and achieve objectives.
  • Market-specific: Different customer groups respond differently, so the mix should be made according to the target market.
  • Dynamic concept: Since customer needs change, the marketing mix must be changed from time to time to stay suitable.
  • Importance: It increases sales and profits, gives an integrated approach, links the firm with customers, and helps maintain equilibrium with the marketing environment.
CISCE: Class 12

Key Points: Product Mix

  • Meaning: Product mix means the set of product features (tangible + intangible) offered to satisfy customer needs.
  • Decisions included: It covers decisions about quality, size, range, packaging, brand name, labelling, warranty and services.
  • Target market focus: Product-related decisions are made for a specific group of consumers (target market), not for everyone.
  • Product as satisfaction: Consumers see a product as a “bundle of satisfaction”, not just a physical item (e.g., washing machine = comfort + trouble-free use).
  • What product means: A product is anything offered to satisfy a need/want and customers buy it for what it does for them (e.g., car = transport + comfort + prestige).
  • Three layers of benefits:
    Core benefit: basic need (car = transportation)
    Expected benefit: desired attributes (car = fuel efficiency)
    Augmented benefit: extra features to exceed expectations (free insurance/loan, etc.)
  • Types of products: Products can be physical items, services, places (tourism), experiences, ideas, and information.
CISCE: Class 12

Key Points: Meaning and Features of Goods

  • Goods are tangible items—they can be seen, touched and felt (have shape, size, colour, etc.).
  • They are used either for direct consumption or for producing other goods.
  • Goods are separable from the producer/seller, so production and consumption are usually not at the same time.
  • Goods can be stored for selling or using in the future.
  • Goods are of many types, and factory-made goods are generally uniform (homogeneous) in quality.
CISCE: Class 12

Key Points: Types of Goods > Consumer Products

  • Consumer products are goods used directly by final consumers/households for personal use.
  • On the basis of time and effort in buying, consumer products are classified into Convenience, Shopping and Speciality products.
  • Convenience products are bought frequently, from nearest places, with minimum effort; they are low-priced, small units, standardised/branded, and have regular daily demand (essentials).
  • Shopping products are bought after comparison of price, quality, warranty, etc.; they are usually durable, planned purchases, with higher price, and less impulse buying.
  • Speciality products need special effort to buy; they are very high-priced, require heavy promotion, have limited demand, and are often luxury items.
  • On the basis of durability, consumer products are also classified into Non-durable and Durable products.
  • Non-durable products are consumed in one or few uses (e.g., bread/soap), while durable products are used repeatedly for a long time (e.g., TV/fridge/car).
CISCE: Class 12

Key Points: Types of Goods > Industrial Products

  • Industrial products are goods bought for business/manufacturing use (to produce other products), not for personal use.
  • Raw materials are basic inputs that are converted into finished goods (e.g., sugarcane → sugar, cotton → cloth).
  • Operating supplies do not become part of the final product, but help in production (e.g., nails, lubricating oil, fuel, stationery).
  • Installations are high-value capital items like heavy machinery, factory sites, production lines, trucks, mainframe computers.
  • Accessory equipment are low-value tools/equipment used in operations (e.g., portable drills, hand tools, PCs, fax machines).
  • Fabricated parts are ready-made components that become part of the final product (e.g., tyres, shoe laces, computer mouse).
  • Key characteristics: industrial products have few buyers, derived demand, geographical concentration, short distribution channels, technical/rational buying, leasing of costly equipment, and sometimes reciprocal buying (mutual purchasing between firms).
CISCE: Class 12

Key Points: Meaning, Features and Types of Services

  • Meaning: Service means activities/benefits/satisfaction offered for sale (e.g., airline travel service).
  • Intangible: Services cannot be seen or touched; they have no physical form.
  • Perishable: Services cannot be stored for future use.
  • Inseparable: Services are produced and consumed at the same time and are linked to the service provider (e.g., nurse, mechanic).
  • Types: Services include personal, financial, courier, and professional services (e.g., maids/nurses; banks/insurance; courier/post; doctors/lawyers/CA).
CISCE: Class 12

Key Points: Difference between Convenience, Shopping and Speciality Products

Key basis Convenience products Shopping products Speciality products
1) Price level Low Medium High
2) Purchase behaviour Very frequent; minimum time Infrequent; medium time Infrequent; long time
3) Availability & outlets Nearest shops; many outlets Shops around; few outlets Exclusive shops; very few outlets
4) Sales/turnover High Medium Low
5) Marketing & planning Long channel; very little planning Short channel; little planning Very short channel; considerable planning
CISCE: Class 12

Key Points: Distinction between a Product and a Service

Key basis Product (Goods) Service
1) Tangibility Can be seen, touched and felt Cannot be seen and touched
2) Storage / durability Durable; can be stored Cannot be stored; produced and consumed together
3) Inseparability Separable; remote buying/selling possible Not separable from provider
4) Standardisation Can be standardised Rarely standardised
5) Time lag Can be bought in advance of need Cannot be bought in advance
6) Replacement Can be replaced Cannot be replaced once delivered
7) Ownership Ownership can be transferred (e.g., car) Ownership cannot be transferred
CISCE: Class 12

Key Points: Branding

  • Branding (Meaning): Giving a product a unique name/symbol to create a distinct identity and differentiate it from competitors.
  • Brand name vs Brand mark: Brand name is pronounceable (words/letters); brand mark is a symbol/design that is seen but not spoken.
  • Brand strategies: Individual branding, blanket family branding, separate family brand names, and company + individual name strategy.
  • Trademark: A legally protected brand/part of a brand; only the registered firm can use it.
  • Merits: Helps in product differentiation, advertising, and higher pricing; helps customers in easy identification, quality assurance, and protection from overcharging.
CISCE: Class 12

Key Points: Labelling

  • Meaning: Labelling means designing a label (small slip) on the package to describe the product, its contents, usage and other details; it supports packaging and branding and also shows legal requirements.
  • Legal requirement: Law (Packaged Commodities Regulation Order, 1975) makes it compulsory to mention details like product name, manufacturer’s name/address, date of manufacture, ingredients/contents, MRP, directions for use, etc.; tobacco products must carry statutory warning.
  • Main functions: Labels help in identification, give information/instructions, allow grading, provide statutory warnings, support promotion, and enable product differentiation.
  • Price & consumer protection: Label shows MRP (price control) and helps prevent false claims because claims can be verified and action can be taken in consumer court.
  • Kinds of labels (Stanton): Brand label (popularises brand), Grade label (shows grade/standard), Descriptive label (features + uses), Informative label (maximum details + proper use/side effects).
  • Merits: Labelling is a social service, reduces price variation, helps advertising, helps customers judge superiority, and acts as a guarantee of standard, raising prestige of product/manufacturer.
  • Demerits + what a good label must show: Not useful for illiterate buyers, increases cost, works best with standardisation, and allows comparison that may reduce sales of one product; a good label should include producer details, weight/measure, size/colour, ingredients, directions/precautions, packing & expiry date, MRP (with taxes), and statutory warning (if needed).
CISCE: Class 12

Key Points: Packaging

  • Meaning: Packaging means covering/wrapping/crating/filling/compressing goods to protect them from spoilage, pilferage, breakage, leakage, etc., and to make handling, storage and transport easier.
  • Packaging vs packing: Packing is placing the product in a suitable package for delivery/storage/transport, while packaging also includes designing and producing proper packages and deciding convenient size-lots for selling.
  • Three levels of packaging:
    Primary package: immediate container (e.g., toothpaste tube).
    Secondary package: extra protection layer (e.g., tube inside cardboard box).
    Transportation package: protection for storage/transport (e.g., corrugated boxes of 50–100 units).
  • Protection + identification: Good packaging protects from sun, rain, moisture, insects and handling damage, increases shelf life, and helps identify product/contents; sealed packs reduce chances of spurious products.
  • Brand image + economy: Packaging supports branding and labelling (brand/label printed), gives individuality and prestige, reduces transport/storage cost, needs less space, and widens the market.
  • Extra benefits: Packages may have reuse/resale value, act as a strong promotion tool (silent salesman, product differentiation, impulsive buying), and provide convenience in use, storing and carrying.
  • Good packaging features + importance: A good package should be convenient, attractive, safe, truthful, create a distinct identity/status, and be economical with repack/resale value; packaging importance has increased due to competition, health/sanitation needs, self-service outlets, innovations and product differentiation.
CISCE: Class 12

Key Points: Price Mix

  • Meaning of price: Price is the money value of a product/service—what the seller asks and the buyer pays; it is the product’s market value expressed in money.
  • Meaning of pricing: Pricing means converting the value of a product/service into money. It includes not only the base price but also terms of sale like transport cost, payment mode, discounts and allowances.
  • Role in marketing mix: Price is a key element of the marketing mix and strongly affects quality, services, distribution channels and promotion.
  • Importance for firm: Price largely decides sales volume, profit margin, market share and competitive position; too high or too low prices can harm the business.
  • Importance for consumers and marketing: Price affects consumer purchasing power and standard of living; marketing cannot happen without price because a sale occurs only when both agree on price.
  • Economic importance: In a free enterprise economy, price regulates production, distribution and consumption, influences wages, interest, rent and profit, and affects resource allocation and employment; price competition removes inefficient firms.
  • Main factors affecting price: Price is influenced by firm objectives, cost, customer demand/elasticity, competition, quality & service, buying motives (prestige/status), promotional and distribution strategy, risks (seasonal/credit/bad debts), and government control/regulation.
CISCE: Class 12

Key Points: Place (Distribution) Mix and Channels of Distribution

  • Meaning of Place (Distribution) mix: It is about making products available to customers for purchase and use—at the right place, right time and right quantity.
  • Two main parts of distribution:
    (a) Selecting the distribution channel (route from manufacturer to users) and
    (b) Physical distribution (mainly transportation and storage).
  • Importance of choosing the right channel: The channel decision affects price, promotion, sales and profits, and it is a long-term commitment that is difficult to change.
  • Meaning of distribution channel: It is the path from producer to final consumer/user, involving intermediaries (wholesalers, retailers, agents) who help in movement of product and transfer of ownership.
  • Flows in a channel:
    a. Product flows downward (producer → consumer)
    b. Cash flows upward (consumer → producer)
    c. Information flows both ways (feedback and market data).
  • Functions of middlemen in channels: They do sorting, accumulation (stock), allocation (small packs), assorting (variety together), promotion (selling/word of mouth), and risk-taking (spoilage, price changes, etc.).
  • Main types of channels:
    i. Zero level: Manufacturer → Consumer (direct selling)
    ii. One level: Manufacturer → Retailer → Consumer
    iii. Two level: Manufacturer → Wholesaler → Retailer → Consumer (most common for consumer goods)
    iv. Three level: Manufacturer → Agent → Wholesaler → Retailer → Consumer (longest; used when wide market coverage is needed).
CISCE: Class 12

Key Points: Choice of Channels of Distribution

  • Product-related factors: Choice depends on product nature—costly, perishable, bulky, customised, or technically complex products usually need short/direct channels.
  • Unit value: High-priced goods (jewellery, cars, machines) use zero/one-level channels, while low-priced goods (soap, detergents, cosmetics) use longer channels.
  • Perishability & size/weight: Perishable and heavy/bulky goods require short channels to reduce delay and transport cost; durable and light goods can use longer channels.
  • Standardisation & complexity: Standardised goods can be sold easily through middlemen, but custom-made goods and technical products need direct selling/expert demonstration.
  • Market-related factors: Channel depends on the market—consumer markets usually use longer channels, while industrial markets prefer short channels; also depends on number of buyers, location, and order size/frequency.
  • Company-related factors: A firm’s financial strength, desire for control, and volume of output/product mix affect choice—strong firms can create own channels and maintain tight control.
  • Middlemen-related factors: Decision depends on availability, attitude, services offered (finance, storage, promotion, after-sales), sales potential, cost, plus customs/competitors’ channels and legal restrictions (e.g., liquor/drugs only via licensed shops).
CISCE: Class 12

Key Points: Physical Distribution

  • Meaning: Physical distribution means movement, storage and control of materials and finished goods so they reach the right place and right time (also called marketing logistics / supply chain management).
  • Main elements: It includes warehousing (storage), transportation, inventory control, and order processing.
  • Warehousing decisions: A firm decides own or rented warehouses, few vs many warehouses (more warehouses = faster service but higher cost), and where to locate them.
  • Warehouse location factors: Location depends on markets to be served, production centres, transport quality/availability/cost, and quantity to be stored and moved.
  • Inventory control meaning & aim: Inventory (raw, semi-finished, finished goods) must be adequate to avoid sales loss, but holding stock has costs; inventory control keeps stock at a level where cost is minimised without affecting sales.
  • Inventory control decisions/techniques: Decide what items to stock, when/how much to reorder, maintain records, remove obsolete items; methods include EOQ, ABC analysis, inventory turnover ratio.
  • Order processing & transportation: Fast and accurate order processing improves customer service (steps: receive order → transmit → record entry → credit check → pick & pack → ship & invoice → payment). Transportation moves goods using suitable modes based on cost, speed, reliability, frequency, availability and capacity; firms may use own vehicles or hired transport.
CISCE: Class 12

Key Points: Promotion Mix

  • Meaning of Promotion: Promotion means all activities used to inform customers about a product’s availability and persuade them to buy (includes sales promotion, advertising, personal selling and publicity).
  • Promotion as Communication: It is a communication process with potential buyers involving information, persuasion and influence through personal and impersonal methods.
  • Why Promotion is Important: No firm can sell without informing people and creating desire to buy; its need has increased due to competition, changing consumer tastes, wider markets, and distance between producer and consumer.
  • Key Functions of Promotion: Promotion helps to provide information, stimulate demand, differentiate the product/brand, highlight utility (special features), meet competition & stabilise sales, and build a good image.
  • Promotion Mix: The combination of promotion tools (personal selling, advertising, sales promotion, publicity) is called the promotion mix.
  • No Fixed Ideal Mix: There is no single best promotion mix for all firms or all times; it must be designed according to the enterprise and situation.
  • Factors/Rules for Selecting Mix: Promotion mix depends on nature of product, nature of market, stage of product life, funds available, effectiveness of each tool, and promotion strategy; firms should use a combination (not one tool only) and importance of tools changes with environment.
CISCE: Class 12

Key Points: Elements of Promotion Mix > Advertising

  • Meaning: Advertising is a paid, non-personal presentation and promotion of ideas/goods/services by an identified sponsor.
  • Key features: It is paid, non-personal (no face-to-face contact), and a form of mass communication.
  • Media used: It can be done through newspapers, magazines, radio, TV, cinema, etc.
  • Advertising vs publicity: Advertising is paid, sponsored and controlled by the advertiser; publicity is unpaid, not sponsored and controlled by the media.
  • Main objectives: To create awareness of new products, build brand loyalty, face competition, and inform/educate/persuade customers (quality, price, uses) while also improving goodwill and dealer relations.
CISCE: Class 12

Key Points: Elements of Promotion Mix > Sales Promotion

  • Meaning: Sales promotion includes all activities other than advertising and personal selling that stimulate consumer buying and dealer effectiveness.
  • Examples: It includes free samples, premium/bonus offers, coupons, prize contests, demonstrations, and incentives to dealers and sales force for achieving targets.
  • Nature: These activities are temporary, non-routine and non-recurring.
  • Purpose/role: It mainly encourages on-the-spot buying through short-term incentives and supplements advertising and personal selling.
  • Objectives: To increase immediate sales, clear old stock, create demand in off-season, and support advertising and personal selling.
CISCE: Class 12

Key Points: Elements of Promotion Mix > Personal Selling

  • Meaning: Personal selling (salesmanship) means informing, assisting and persuading customers to buy through direct face-to-face contact; salespersons give oral presentations to make sales.
  • Personal & selective contact: It is one-to-one interaction, so it reaches a limited number of customers at a time.
  • Flexible & two-way: The salesman can change the presentation as per customer needs and answer doubts/objections immediately; it involves two-way communication and quick response.
  • Relationship building: It aims to create long-lasting customer relationships and mutual benefit (customer satisfaction → higher sales and profits).
  • Objectives: Helps to increase sales, introduce new products by demonstration, handle grievances/objections, persuade dealers and customers, and collect customer feedback (complete job of selling).
CISCE: Class 12

Definitions: Personal Selling

  • Salesmanship is the process where by the ascertains and activates the needs or wants of the buyer and satisfies the needs of wants to mutual continuous advantage of both the buyer and the seller. - Pederson and Wright
  • Salesmanship consists of winning the buyer's confidence for seller's goods and thereby winning a regular and permanent customer. - G. Blake
  • Salesmanship is the art of so presenting an offer that the prospect appreciates the need for it and that a mutually satisfactory sale follows. - Philips and Duncan
  • Salesmanship is the process of assisting and persuading a prospective buyer to buy a product in a face-to-face situation. - American Marketing Association 
CISCE: Class 12

Key Points: Elements of Promotion Mix > Publicity

  • Meaning: Publicity is non-paid news or editorial comment in mass media about an organisation or its products/services; it can be positive or negative.
  • No direct payment: The company does not pay for media space/time, but it may prepare and release the news.
  • Mass media coverage: Publicity appears through newspapers, magazines, radio, TV, internet, etc.
  • No full control: Publicity is outside the direct control of the organisation, so it may not always be favourable.
  • Objectives & role: It aims to inform people, highlight social contribution, draw attention to events, and warn against undesirable activities/goods; it is powerful because people find news credible and it can make or break a product/company.
CISCE: Class 12

Key Points: Distinction between Advertising and Sales Promotion

Basis Advertising Sales Promotion
Meaning Paid, non-personal presentation and promotion by an identified sponsor Non-routine, non-recurring activities to stimulate consumer buying and dealer effectiveness
Objective Create a favourable image of the firm/product Increase current sales quickly
Time horizon Long-term technique Short-term technique
Nature Regular and repetitive Temporary and non-repetitive
Focus Attracts customers towards the product Pushes the product towards the buyer
Control & expenditure Less controllable, expenditure substantial More controllable, expenditure limited
Scope & agency Uses print, radio, TV, cinema, outdoor, etc.; usually needs outside agency Uses samples, coupons, premiums, offers, displays, contests, exchange offers, etc.; may not require outside agency
CISCE: Class 12

Key Points: Distinction between Advertising and Personal Selling

Basis Advertising Personal Selling
Nature of communication Non-personal (no face-to-face contact) Personal (face-to-face contact)
Media used Diverse media (oral + written words, gestures via media) Limited media (mainly oral words and gestures)
Objective Introduce new products, fight competition, increase sales, enhance image Achieve sales by satisfying customers
Message Same message for all covered by a medium Tailored message for each customer
Coverage Reaches a large number of people (mass) Reaches a selected group (individual and selective)
Payment & control Paid; media is independent (less direct control) Paid; message is controlled by the seller (more control)
Flexibility & feedback Low flexibility; feedback delayed High flexibility; feedback immediate
CISCE: Class 12

Key Points: Distinction between Advertising and Publicity

Basis of distinction Advertising Publicity
Sponsor identity Sponsor is clearly known Sponsor identity is not clear
Source of message Message originates from the advertiser Message originates from the media
Payment Paid form (advertiser pays media owners) Non-paid form (no direct payment)
Control Sponsor has control over content and timing Media has control over content and timing
Nature of message Persuasive (to favour a product/service/idea) Informative (public interest / product-related news)
Transaction Involves a commercial transaction Not a commercial transaction
Credibility & nature Less credible, subjective More credible, objective
CISCE: Class 12

Key Points: Factors Influencing Promotion Mix

  • Nature of product: Industrial goods need personal selling (pre-sale and after-sale service). Consumer goods need more advertising and sales promotion.
  • Nature of market: If buyers are many and scattered, use advertising. If buyers are few and concentrated, use personal selling.
  • Stage of product life cycle: In introduction stage, advertising and publicity work best. In maturity stage, sales promotion and personal selling are more useful.
  • Availability of funds: Promotion mix depends on the budget. With limited funds, the firm must choose tools carefully and economically.
  • Effectiveness of tools: Advertising/publicity create awareness, while personal selling/sales promotion help convert demand into actual sales.
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