Revision: Business Finance and Marketing >> Marketing Management Business Studies Commerce (English Medium) Class 12 CBSE

Phillip Kolter has defined marketing as, “a social process by which individual groups obtain what they need and want through creating offerings and freely exchanging products and services of value with others”.

According to the American Marketing Association, “Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.”

 In simple words market is the place where two or more parties are involved in buying and selling. These two parties involved in the transactions are called buyers and sellers.

"Marketing management as the art and science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer values of management." - Philip Kotler

"The process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational goals.” - American Management Association

Marketing mix refers to a combination of four P's, viz. product, price, promotion, and place. These are closely interrelated because decisions in one area influence those in others. These constitute the core of a company’s marketing system.

Product mix is a component of marketing mix which involves developing new products and improving the existing products as per the requirements of the consumers.

Advertising involves preparing and disseminating advertisements to target potential customers and inspire desired actions with the advertiser’s intention.

According to the American Marketing Association, advertising is “any paid form of nonpersonal presentation or promotion of ideas, goods or services by an identified sponsor.”

According to the American Marketing Association, salesmanship may be defined as “the process of assisting and persuading a prospective buyer to buy a product in a face-to-face situation”.

According to the American Marketing Association, sales promotion includes “those marketing activities other than personal selling, advertising and publicity, that stimulate consumer purchasing and dealer effectiveness, such as point of purchase displays, shows and exhibitions, demonstrations and various non-recurring selling efforts not in the ordinary routine.”

• Marketing management is the process of planning, organising, directing and controlling marketing activities.
• It focuses on choosing target markets and satisfying customers.
• It aims to create, deliver and communicate superior customer value.
• It includes analysing, implementing and controlling marketing plans.
• It helps in getting, keeping and growing customers.
• It manages different types of demand, such as overfull and irregular demand.

• Production: make more at lower cost and keep widely available.
• Product: improve quality and features to attract buyers.
• Selling: use aggressive promotion to push products.
• Marketing: study what customers need and satisfy them.
• Societal: satisfy customers and also protect society and environment.

• Marketing ensures exchange of goods and services that maximises customer satisfaction.
• Market information and planning guide all major marketing decisions.
• Product design, standardisation, grading, packaging, labelling and branding strengthen product appeal and reliability.
• Customer support services, pricing and promotion directly influence demand and loyalty.
• Physical distribution, transportation and storage maintain steady availability of products to consumers.

• Marketing mix has four elements: Product, Price, Place. and Promotion.
• Product includes core offering plus extended features like after-sales service.
• Price is influenced by demand and involves discount/credit decisions.
• Place deals with physical distribution and dealer support.
• Promotion persuades buyers through advertising, personal selling, and sales promotion tools.

• Product is a bundle of utilities satisfying a need.
• Customers buy products for the benefits they provide.
• Benefits are functional, psychological, and social.
• Motorcycle example shows all three types of benefits.
• These benefits must be considered while planning a product.
• Products are classified into consumers’ products and industrial products.

• Consumer products are for personal, non-business use.
• Three buying-behaviour types: convenience, shopping, speciality products.
• Convenience products: frequent, quick purchase, low effort, low unit value.
• Shopping products: need comparison of quality, price, style and suitability.
• Speciality products: special features, high brand loyalty, inelastic demand.
• Three durability types: non-durable products, durable products, services.
• Non-durable goods need wide availability and heavy advertising; durable goods need personal selling, guarantees, and after-sales service; services are intangible activities and benefits.

• Industrial products are inputs for producing other products.
• They are used for non-personal and business purposes.
• Common examples include raw materials, engines, lubricants, machines and tools.
• The market includes manufacturers, transport agencies, banks, insurance companies, mining companies and public utilities.
• Industrial goods are grouped into materials and parts, capital items, and supplies and business services.
• Materials and parts cover raw materials and manufactured materials/parts.
• Capital items include installations and equipment, while supplies and business services include maintenance/repair items and operating supplies.

• Branding differentiates a product from competitors through a name, sign, or symbol.
• A brand includes both spoken (brand name) and non-spoken, recognisable (brand mark) elements.
• A trademark is a legally protected brand or part of a brand.
• A good brand name is short, memorable, benefit-suggestive, and distinctive.
• A good name must adapt to packaging, media, and languages and remain versatile for future products.
• Legal registrability and long-term staying power are essential features of a good brand name.

• Packaging is about the product's container or wrapper.
• There are three levels: primary, secondary, and transportation.
• It is important for health, hygiene, and selling in self-service shops.
• Packaging supports innovation and product differentiation.
• Main function: identification, protection, easy use, and promotion.

• Labelling is a simple-looking but important marketing task.
• It means designing the label on a product's package.
• Labels range from simple tags (unbranded) to complex graphics (branded).
• Labels perform five functions: describing, identifying, grading, promoting, and providing legal information.
• Legal information is especially critical for food, drugs, tobacco, and hazardous materials.

• Price is the money exchanged between buyer and seller for a product/service.
• Pricing regulates demand and acts as a competitive and revenue-determining tool.
• Cost sets the price floor; utility/demand sets the price ceiling.
• Competition intensity pushes prices lower.
• Government regulation can control prices, especially under monopoly conditions.
• Pricing objectives (profit, market share, survival, quality leadership) shape price levels.

• Physical distribution is the fourth element of the marketing mix, ensuring product availability at the right place, time, quantity, and to the right customer.
• It has four components: order processing, transportation, warehousing, and inventory control.
• Order processing requires speed and accuracy to prevent customer dissatisfaction.
• Warehousing location involves a trade-off between service speed and cost.
• Storage location depends on product type: long-storable goods near production, perishable/bulky goods near markets.
• Inventory control balances capital tied up in stock against the level of customer service provided.
• Indian consumers depend strongly on word-of-mouth recommendations for major purchase decisions, alongside advertising.

• Promotion is about communicating with customers.
• It aims to inform and persuade customers to buy.
• Even a good product with right price and place may not sell without promotion.
• Without communication, customers do not know or trust the product’s benefits.
• Promotion is a major part of the marketing mix and helps in smooth exchange of goods and services.

• Promotion mix is a combination of promotional tools used to achieve communication objectives.
• It consists of Advertising, Personal Selling, Sales Promotion, and Publicity.
• The choice of promotion mix depends on the nature of the market.
• It also depends on the nature of the product and the promotion budget.
• The promotion mix is selected according to the objectives to be achieved.

• Personal selling is a face-to-face method of convincing customers to buy a product.
• Features: Direct communication, two-way interaction, and builds customer relationships.
• Merits: Flexible sales approach, immediate feedback, and targets the right customers.
• Importance to business: Increases sales, builds customer loyalty, and is useful for launching new products.
• Importance to customers: Provides product information, expert advice, and helps make better buying decisions.
• Importance to society: Creates jobs, boosts demand, and supports economic growth.

• Sales promotion gives short-term incentives to push immediate buying.
• It works with advertising and personal selling but is different from them.
• Tools are planned separately for customers, middlemen and sales persons.
• It is useful for attracting attention and introducing new products.
• Overuse can create a feeling of crisis and harm product image.
• Rebate, discount, refunds, free gifts, extra quantity, draws, usable benefits, finance offers, sampling and contests are widely used methods.

• PR manages public opinion and relationships to protect and improve the company’s image and product image.
• Business deals with many groups (suppliers, shareholders, intermediaries, activist groups, government) whose opinions matter.
• PR departments or agencies spread information, create goodwill, handle negative publicity, and guide management on image-building.
• Main PR functions: publicity, press release, corporate communication, lobbying, and counselling.
• Publicity is unpaid, appears as news without a sponsor, and is usually more trusted than advertisements.
• PR helps in building awareness, building credibility, motivating the sales force and dealers, and reducing promotion costs.