मराठी
CBSECommerce (English Medium) Class 12
प्रश्नपत्रिका२५८०
पाठ्यपुस्तक उत्तरे२०३४५
MCQ ऑनलाइन सराव परीक्षा४२
महत्वाचे प्रश्न आणि उत्तरे२२६५४
संकल्पना स्पष्टीकरण आणि व्हिडिओ६०८
टाइम टेबल२४
अभ्यासक्रम

Overview of Marketing

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Topics

Estimated time: 132 minutes
CBSE: Class 12

Key Points: Concept of Marketing

  • In the traditional sense, a market is a place where buyers and sellers meet to exchange goods and services.
  • The term market is also used for product markets (gold market), geographic markets (national/international), and buyer types (consumer/industrial).
  • In modern marketing, the market does not mean a physical place.
  • It refers to all actual and potential buyers of a product or service.
  • Anyone willing and able to buy a product forms part of that product’s market.
CBSE: Class 12

Key Points: Features of Marketing

  • A good market offer is made after analysing the needs and preferences of potential buyers.
  • Customers buy a product only if they feel it gives them maximum value for their money.
  • Marketing works through exchange, where buyers and sellers give something of value to each other.
  • For exchange to take place, there must be at least two parties, ability to communicate and deliver value, and freedom to accept or reject the offer.
  • Marketing is not limited to business; it is also used by non-profit organisations like schools, hospitals, and social institutions to achieve their goals.
CBSE: Class 12

Key Points: Marketing Management

  • Marketing management means planning, organising, directing and controlling marketing activities to facilitate the exchange of goods and services.
  • It focuses on choosing a target market and satisfying the needs of that market.
  • The main aim is to get, keep and grow customers by creating and delivering superior value.
  • It involves analysing, planning, implementing and controlling marketing activities to achieve organisational goals at minimum cost.
  • Marketing management is not only about creating demand but also managing demand, such as reducing excess demand or increasing seasonal demand.
CBSE: Class 12

Difference Between Marketing and Selling

Basis Marketing Selling
Meaning Broad process of creating and satisfying customer needs. Activity of promoting and selling products.
Scope Includes product planning, pricing, promotion and distribution. Limited to promotion and transfer of goods.
Focus Customer satisfaction. Sales and profit.
Objective Long-term customer relationship. Converting goods into cash.
CBSE: Class 12

Key Points: Marketing Management Philosophies> The Production Concept

  • The Production Concept was developed during the Industrial Revolution, when demand was higher than supply.
  • Businesses believed that producing more goods would automatically lead to higher sales.
  • The main focus was on large-scale production to reduce cost and increase profit.
  • It was assumed that customers prefer products that are easily available and affordable.
CBSE: Class 12

Key Points: Marketing Management Philosophies> The Product Concept

  • The Product Concept developed when supply increased, and competition became stronger.
  • Customers started preferring products with better quality, features, and performance.
  • Firms shifted their focus from quantity of production to quality improvement.
  • Continuous product improvement became the key to increasing sales and profits.
CBSE: Class 12

Key Points: Marketing Management Philosophies> The Selling Concept

  • The Selling Concept developed due to increased competition and excess supply of goods.
  • Firms believed that customers would not buy enough unless they were persuaded.
  • The focus shifted to aggressive selling and promotional activities.
  • Techniques like advertising, personal selling and sales promotion were widely used.
  • The main aim was to increase sales, but long-term customer satisfaction was often ignored.
CBSE: Class 12

Key Points: Marketing Management Philosophies> The Marketing Concept

  • The Marketing Concept focuses on satisfying customer needs to achieve business success.
  • Profit can be maximised by identifying and fulfilling the needs of present and potential customers.
  • All business decisions (product, price, place, promotion) are taken from the customer’s point of view.
  • The firm aims to satisfy customers better than its competitors.
  • Customer satisfaction is the key to long-term profit and growth.
CBSE: Class 12

Key Points: Marketing Management Philosophies> The Societal Marketing Concept

  • The Societal Marketing Concept focuses on satisfying customer needs while also protecting society’s long-term welfare.
  • It considers social problems like pollution, resource shortage and environmental damage.
  • Business decisions should not only benefit customers but also protect society’s interests.
  • It is an extension of the marketing concept with added concern for social, ethical and ecological issues.
  • The aim is to achieve customer satisfaction along with long-term social well-being and profit.
CBSE: Class 12

Differences in the Marketing Management Philosophies

Philosophies / Bases Production Concept Product Concept Selling Concept Marketing Concept Societal Concept
Starting Point Factory Factory Factory Market Market, Society
Main Focus Quantity of product Quality, performance, features of product Existing product Customer needs Customer needs and society’s well-being
Means Availability and affordability of product Product improvements Selling and promoting Integrated marketing Integrated marketing
Ends Profit through volume of production Profit through product quality Profit through sales volume Profit through customer satisfaction Profit through customer satisfaction and social welfare
CBSE: Class 12

Key Points: Functions of Marketing

  • Market Information – Marketing begins with gathering and analysing information about customer needs and market opportunities.
  • Marketing Planning – It involves preparing plans to achieve marketing objectives like increasing sales or market share.
  • Product Designing – Developing and improving product features and design to attract customers.
  • Standardisation and Grading – Ensuring uniform quality and classifying products based on quality or size.
  • Branding, Packaging and Labelling – Creating a brand name and attractive packaging to differentiate the product and promote sales.
  • Pricing and Promotion – Fixing the right price and promoting the product through advertising, personal selling, etc.
  • Physical Distribution – Ensuring proper storage, transportation and distribution of goods to reach customers smoothly.
CBSE: Class 12

Key Points: Marketing Mix

  • Marketing Mix consists of four elements known as the 4 Ps – Product, Price, Place and Promotion.
  • Product includes goods or services offered to customers, along with features, quality, branding, packaging and after-sales services.
  • Price is the amount paid by customers and affects demand; it includes decisions about discounts and credit terms.
  • Place refers to distribution activities that make products available to customers through dealers and intermediaries.
  • Promotion involves informing and persuading customers through advertising, personal selling and sales promotion.
  • All four elements must be properly combined to create customer value.
  • The right marketing mix helps achieve sales and profit objectives effectively.
 
CBSE: Class 12

Key Points: Concept of Product

  • A product is a bundle of benefits that satisfies customer needs.
  • Customers buy a product for the benefits or satisfaction it provides.
  • Products provide three types of benefits: functional, psychological and social.
  • For example, a motorcycle provides transport (functional), status (psychological) and social acceptance (social).
  • Products are broadly classified into consumer products and industrial products.
CBSE: Class 12

Key Points: Classification of Products> Consumer Products

  • Consumer products are goods purchased for personal use and not for business purposes.
  • They are classified into three types: convenience products, shopping products and speciality products.
  • Convenience products are bought frequently, quickly and with little effort (e.g., soap, newspaper).
  • Shopping products require comparison of price, quality and style before purchase (e.g., clothes, furniture).
  • Speciality products have unique features and strong brand loyalty, and customers are willing to make special efforts to buy them.
CBSE: Class 12

Key Points: Durability of Products

  • On the basis of durability, consumer products are classified into non-durable products, durable products and services.
  • Non-durable products are used in one or few uses, such as soap and toothpaste.
  • Durable products last for many years, such as refrigerators and bicycles.
  • Durable goods require higher personal selling, guarantees and after-sales services.
  • Services are intangible benefits offered for sale, such as medical, legal and repair services.
CBSE: Class 12

Key Points: Classification of Products> Industrial Products

  • Industrial products are goods used as inputs in producing other products.
  • They are meant for business use, not for personal consumption.
  • Examples include raw materials, machines, tools, engines and lubricants.
  • These products help in manufacturing or providing other goods and services.
  • The market for industrial products includes manufacturers, transport companies, banks, insurance companies and public utilities.
CBSE: Class 12

Key Points: Classification of Industrial Goods

  • Industrial goods are classified into three categories: Materials and Parts, Capital Items, and Supplies & Business Services.
  • Materials and Parts include raw materials (like cotton, iron ore) and manufactured parts (like glass, tyres).
  • Capital Items are used in producing finished goods, such as machines, computers and tools.
  • Supplies include short-term items like paint, nails and lubricants used in operations.
  • Business services help in managing production, such as maintenance and repair services.
CBSE: Class 12

Key Points: Branding

  • Branding means giving a name, symbol or design to a product to identify and differentiate it from competitors.
  • A generic name refers to the general name of a product category, like soap or camera.
  • A brand includes a brand name (spoken part) and a brand mark (symbol or design).
  • A trademark is a legally protected brand name or mark that cannot be used by others.
  • Branding helps in product identification and creates distinction in the market.
CBSE: Class 12

Key Points: Characteristics of Good Brand Name

  • The brand name should be short and easy to remember.
  • It should suggest product benefits.
  • It must be unique and distinctive.
  • It should be adaptable and flexible for future use.
  • It should be legally protectable and long-lasting.
CBSE: Class 12

Key Points: Packaging

  • Packaging means designing and making the container or wrapper of a product.
  • It has become very important in modern business.
  • Many products like milk, pulses, and salt are now successfully packaged.
  • Packaging affects the marketing success or failure of products.
  • Products like Maggi and Uncle Chips succeeded partly due to good packaging.
CBSE: Class 12

Key Points: Levels of Packaging

  • There are three levels of packaging – Primary, Secondary, and Transportation.
  • Primary packaging is the immediate container (e.g., toothpaste tube).
  • Secondary packaging gives extra protection (e.g., cardboard box).
  • Transportation packaging is used for storage and transport (e.g., corrugated boxes).
CBSE: Class 12

Key Points: Importance of Packaging

  • Health and Safety: People prefer packed goods as they reduce the chances of adulteration.
  • Self-Service Stores: In self-service outlets, packaging acts as a silent salesman.
  • Innovation: New packaging methods increase storage life and expand marketing opportunities (e.g., milk, medicines).
  • Product Differentiation: Attractive packaging (colour, size, material) helps create a better product image and affects customer perception.
CBSE: Class 12

Key Points: Functions of Packaging

  • Product Identification: Packaging helps in easy identification of products (e.g., Colgate, Ponds).
  • Product Protection: It protects goods from damage, leakage, spoilage, and climatic effects during storage and transport.
  • Convenience in Use: Good packaging makes the product easy to open, handle, and use.
  • Product Promotion: Attractive packaging attracts customers and promotes the product, especially in self-service stores.
CBSE: Class 12

Key Points: Labelling

  • Meaning – Designing and attaching a label to a product package.
  • Product Description – Gives details about contents, use, and cautions.
  • Product Identification – Shows brand name, manufacturer, MRP, batch number, etc.
  • Grading of Products – Classifies products into different quality categories.
  • Promotion – Attracts customers through offers and messages.
  • Legal Information – Provides required details like ingredients and expiry date.
CBSE: Class 12

Key Points: Pricing

  • Meaning – Price is the amount of money paid by a buyer for a product or service.
  • Importance of Pricing – No product can be sold without fixing a price.
  • Effect on Demand – Price regulates demand; when price increases, demand usually decreases and vice versa.
  • Competitive Tool – Pricing is an important competitive weapon among firms.
  • Impact on Revenue and Profit – Price is the main factor affecting a firm’s revenue and profits.
CBSE: Class 12

Key Points: Factors affecting Price Determination

  • Product Cost – Cost of production, distribution, and selling sets the minimum price. A firm must cover costs in the long run.
  • Utility and Demand – Higher demand and utility allow higher prices; lower demand leads to lower prices.
  • Extent of Competition – More competition leads to lower prices; less competition allows higher prices.
  • Government Regulations – Government may fix or regulate prices of essential goods to protect consumers.
  • Pricing Objectives – Price depends on the firm’s goal (profit maximisation, market share, survival, quality leadership).
  • Market Share and Survival – Firms may fix low prices to increase market share or survive competition.
  • Marketing Methods Used – Factors like advertising, packaging, distribution, and customer service also affect pricing.
CBSE: Class 12

Key Points: Physical Distribution

  • Meaning – It refers to the movement of goods from producer to customers.
  • Right Place and Time – Goods must be available at the right place, in the right quantity, and at the right time.
  • Importance – If products are not available when needed, sales may be lost.
  • Part of Marketing Mix – It is an important element of the marketing mix.
  • Main Activities – Includes transportation, warehousing, material handling, and inventory control.
CBSE: Class 12

Key Points: Components of Physical Distribution

  • Order Processing – Orders should be processed accurately and quickly to avoid delays and customer dissatisfaction.
  • Transportation – It involves moving goods from the place of production to the place of sale.
  • Warehousing – It means storing goods to create time utility and ensure regular supply.
  • Inventory Control – It involves deciding the right level of stock to balance cost and customer service.
  • Balance of Cost and Service – Firms must balance distribution costs with customer satisfaction.
CBSE: Class 12

Key Points: Promotion

  • Promotion means informing and persuading customers to buy a product.
  • It creates awareness about the product and its benefits.
  • It is an important element of the marketing mix.
  • It helps in increasing sales.
CBSE: Class 12

Key Points: Promotion Mix

  • Promotion Mix is the combination of tools used for promotion.
  • Main tools are Advertising, Personal Selling, Sales Promotion, and Publicity.
  • It aims to inform and persuade customers.
  • The mix depends on product, market, budget, and objectives.
CBSE: Class 12

Key Points: Elements of Promotion-Mix> Advertising

  • Advertising is a paid and impersonal form of promotion.
  • The sponsor bears the cost of the advertisement.
  • There is no direct contact between advertiser and customer.
  • The advertisement is given by an identified company or individual.
  • Common media of advertising are newspapers, magazines, television, and radio.
CBSE: Class 12

Key Points: Merits of Advertising

  • Mass Reach – Advertising reaches a large number of people over a wide geographical area.
  • Customer Confidence – It builds trust and increases customer satisfaction.
  • Expressiveness – Use of art, graphics, and effects makes ads attractive and powerful.
  • Economy – It is cost-effective when communicating with a large audience.
CBSE: Class 12

Key Points: Objections to Advertising

  • Adds to Cost – Advertising increases cost, but higher demand may reduce per unit cost.
  • Undermines Social Values – It may promote materialism, but customers make their own choices.
  • Confuses Buyers – Similar advertisements can create confusion among buyers.
  • Promotes Inferior Products – It may promote low-quality goods, but false claims are punishable by law.
CBSE: Class 12

Key Points: Elements of Promotion-Mix> Personal Selling

  • Meaning – Personal selling is an oral presentation through direct conversation to make sales.
  • Personal Form – It involves face-to-face interaction between seller and buyer.
  • Relationship Building – It helps in developing personal relationships with customers.
  • Flexibility – Sales presentation can be adjusted according to customer needs.
  • Direct Feedback – Immediate response from customers helps in better communication.
  • Minimum Wastage – Efforts are focused on target customers, reducing wastage.
CBSE: Class 12

Key Points: Role of Personal Selling> Importance to Businessmen

  • Effective Promotional Tool – Personal selling effectively influences customers and increases sales.
  • Flexible Method – It allows adjustment of sales presentation according to different situations.
  • Minimum Wastage – Efforts are focused on target customers, reducing wastage.
  • Consumer Attention – Salesperson can observe customer interest and respond immediately.
  • Builds Lasting Relationship – Helps in developing long-term relationships with customers.
  • Role in New Product Introduction – Important in convincing customers about new products.
  • Link with Customers – Salespersons act as a connection between the company and customers.
CBSE: Class 12

Key Points: Role of Personal Selling> Importance to Customers

  • Identifying Needs – Personal selling helps customers identify their needs and how to satisfy them.
  • Latest Information – Customers receive updated information about prices, availability, and new products.
  • Expert Advice – Salespersons provide guidance to help customers make better purchase decisions.
  • Encourages Better Products – It motivates customers to buy improved products, raising their standard of living.
  • Useful for Rural Customers – Especially helpful for illiterate and rural customers who lack other information sources.
CBSE: Class 12

Key Points: Role of Personal selling> Importance to Society

  • Promotes Economic Growth – Personal selling increases demand, leading to more production, jobs, and income.
  • Employment Opportunities – It provides jobs and income to many people, especially youth.
  • Career Growth – Offers good career opportunities with advancement and job satisfaction.
  • Increases Mobility – Salespeople travel widely, promoting movement and tourism.
  • Product Standardisation – Encourages uniform consumption and standardisation of products in society.
CBSE: Class 12

Key Points: Elements of Promotion-Mix> Sales Promotion

  • Meaning – Sales promotion refers to short-term incentives to encourage immediate purchase.
  • Examples – Includes discounts, free samples, contests, bonus offers, and free gifts.
  • Supplementary Tool – It supports advertising and personal selling efforts.
  • Attracts Attention – Incentives quickly attract customers’ interest.
  • Useful for New Products – Encourages customers to try new products.
  • Reflects Crisis – Frequent use may show weak sales or low demand.
  • Affects Product Image – Overuse may reduce the product’s quality image.
CBSE: Class 12

Key Points: Commonly used Sales Promotion Activities

  • Rebate & Discount – Products sold at reduced prices.
  • Refunds & Gifts – Money back or free product with purchase.
  • Lucky Draws & Instant Prizes – Chance to win prizes on purchase.
  • Easy Finance – Instalment or 0% finance schemes.
  • Sampling & Contests – Free samples and competitions to promote products.
CBSE: Class 12

Key Points: Elements of Promotion-Mix> Public Relations

  • Public Relations means managing public opinion and maintaining a positive image of the company.
  • It helps in building awareness and credibility through media coverage and communication.
  • It aims to build goodwill and protect the company’s reputation among customers, government, shareholders, and other public groups.
  • It helps in handling negative publicity and improving the company’s image during crises.
  • Good public relations supports marketing efforts by stimulating sales and reducing promotion costs.
 
CBSE: Class 12

Key Points: Role of Public Relations

  • Publicity – Unpaid media coverage that builds company image.
  • Press Release – Providing correct information to media.
  • Corporate Communication – Sharing information through reports, speeches, and media.
  • Lobbying – Maintaining relations with government and policy makers.
  • Counselling – Advising management and promoting goodwill through social activities.
CBSE: Class 12

Difference Between Advertising and Personal Selling

Basis Advertising Personal Selling
Nature Impersonal communication Personal, face-to-face communication
Message Same message to all customers Message adjusted to customer needs
Flexibility Inflexible Highly flexible
Reach Reaches a large number of people Limited number of people
Cost Low cost per person High cost per person
Feedback No direct feedback Direct and immediate feedback
Suitable For Mass consumers Industrial buyers / few customers
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