Marketing Management Class 12 Notes

Business Studies is an integral subject of the class 12 commerce syllabus and marketing management is one of the most scoring chapters of the class 12 business studies syllabus. If you are thorough with your notes and prepare well, it can be easy as well. . Here in this blog, we shall discuss in brief about this chapter. If you are preparing for your class 12 board exams then it would be of great help to you. Read on to know more about marketing management class 12.

Important Definitions in Marketing Management Class 12

Market: Set of potential and actual buyers of a product or service’.

Customer: People or organisations that seek satisfaction of their needs and wants.

Marketer or Seller: The marketer is a person or organisation who offers products or services to the customer with an intention of satisfying the customer.

Marketing: It is a social process by which individuals acquire what they need and want through creating, offering and freely exchanging products and services of value with others.

JF Pyle says, “Marketing is that phase of business activity through which the human wants are satisfied by the exchange of goods and services.”

Essential Features of Marketing

Here are the important features of marketing:

• Need and want
• Creating a market offering
• Customer value
• Exchange Mechanism

Marketing Management 

Planning, organising, directing and controlling the activities in exchange of goods and services. Marketing management involves:

• Identifying the target market
• Growing customers in target market

Difference between Selling and Marketing

One can differentiate between marketing and selling on the basis of

• Scope 
• Objective 
• Focus
• Start and end 
• Efforts 
• Supremacy
• Approach 
• Demand

Marketing Management Philosophies

Listed below are few of the marketing management philosophies:

• Production concept
• Product concept
• Selling concept
• Marketing concept
• Societal concept

Objectives of Marketing Management

• Creates demand
• Market share
• Goodwill
• Profitable sales volume through customer satisfaction

 Functions of Marketing

• Gathering and analysing market information
• Market planning
• Product designing and development
• Standardisation and grading
• Packaging and Labelling
• Branding
• Customer support services
• Pricing of products
• Promotion and selling
• Physical distribution
• Transportation
• Storage and warehousing

Marketing Mix

Refers to the ingredients or the tools or the variables mixed by the marketeer to interact with a particular market.

Philip Kotler defines marketing mix as, “Marketing mix are the set of – marketing tools that firm uses to pursue its marketing objectives in the target market.”

 Elements of Marketing Mix

• Product : the tangible or intangible products that are offered to the customer.
• Place
• Price
• Promotion

Classification of Product

Products can be classified in two categories

• Consumer goods
• Industrial goods

Consumer Goods

One of the important sections of Marketing Management Class 12 is Consumer Goods. These are defined on the basis of certain characteristics. Here are the some of the categories and their examples as Consumer Goods:

• On the Basis of Durability
  • Durable products
  • Non-durable products
  • Services
• Classification Based on Consumers Buying Behaviour and Attitude
  • Convenient goods
  • Shopping goods
  • Speciality goods

Industrial Product

In Marketing Management Class 12, Industrial products are used as an input or raw material in the production of consumer goods, e.g., tools, machinery etc. Features of industrial products are a number of buyers, the channel of distribution, geographical concentration, derived demand, technical consideration, reciprocal buying and leasing.

Industrial goods are classified as

• Material and Parts 
• Capital Item
• Supplies and Business Services

Product Mix

It refers to important decisions that are related to the product such as quality of product, product packing etc.

• Branding : A brand is the identification of a product. It can be in the form of a name, symbol or design etc.
• Various Terms Related to Brand- Brand, Brand Name, Brand Mark and Trade Mark.
• Advantages of Brand Name
  • Helps in product differentiation
  • Helps in advertising
  • Differential pricing
  • Easy introduction of new product
• Advantages to Customer
  • Helps in identification of product
  • Ensures quality
  • Status symbol

Packaging

A set of tasks or activities that involve designing, production of an appropriate wrapper, container for the product.

• Level of Packaging
  • There are three levels of packaging
  • Primary packaging
  • Secondary packaging
  • Transportation packaging
• Importance of Packaging
  • The rising standard of health and sanitation
  • Self-service outlets
  • Product differentiation
  • Innovational opportunities
  • Functions of Packaging
• Protection
• Identification 
• Convenience  
• Promotion

 Labelling

The process of labelling involves putting identification marks on the package. Functions of labels are:

• Describe the product and specify its contents
• Identify the product
• Helps in grading
• Promotes sale
• Providing information required by law/legal requirement

Price

It is the value for which a product or service is provided to the customer by the seller.

Price Mix

This involves taking important decisions related to fixing the price of any commodity. The factors that must be kept in mind while fixing the price of a commodity:

• Pricing objectives
• Product cost
• Extent of competition in the market
• Customer’s demand and utility
• Government and legal regulation
• Marketing methods used

Pricing Strategies

There are two pricing strategies – Price skimming and Penetration pricing.

Place Mix

It refers to important decisions that involve physical distribution of goods and services. These decisions include deciding the channel of distribution, market for distribution.

 Functions of Distribution Channels

• Sorting/Granding
• Accumulation
• Variety
• Packaging
• Promotion
• Negotiation
• Risk taking

Factors Determining Choice of a Channel

The factors that are essential in determining choice of a channel are give below:

• Product related factors
• Competitive factors
• Company related factors
• Market related factors
• Environmental factors

Promotion Mix

It refers to all the important decisions that are related to promotion of sales of products and services.

Given below are the important tools or elements of promotion, are also called elements of promotion mix:

• Advertising
• Sales promotion
• Personal selling
• Publicity

Advertising

It is defined as the paid form of nonpersonal presentation and promotion of ideas, goods or services and by identified sponsor. The advantages of advertisement are listed below:

• Reach
• Choice
• Legitimacy
• Expressiveness
• Economy
• Enhancing customer satisfaction

Apart from the advantages, there are certain Disadvantages of Advertisement as well, listed below:

• Less forceful
• Less effective
• Difficulty in media choice
• Inflexibility
• Lack of feedback
• Adds to cost
• Undermines social values
• Confuses the buyers
• Encourages sale of inferior products
• Some advertisements are not appealing

Different Platforms Available for Advertising

• Newspapers
• Magazines
• Television
• Radio
• Outdoor
• Internet

Sales Promotion

It is the short term use of certain promotional activities that stimulate the customer to buy the product.

Sales Promotion Techniques for Customers

• Rebate and Discount
• Refunds and Product combination
• Quantity gift and Instant draws and assigned gift
• Lucky draw and Usable benefit
• Full finance @ 0%
• Sampling and Contents

Merits of Sales Promotion

• Attention attract
• Useful in new product launch
• Synergy in total promotion efforts
• Aid to other promotion tools

Demerits of Sales Promotion 

• Reflects Crisis 
• Spoils Product Image

Personal Selling

As the name suggests personal selling means selling personally and involves one on one interaction between the seller and the customer for the purpose of sale.

So, this was all about Marketing Management class 12l. We hope it helps you prepare for your exams and also aids you in revising. If you are confused about which career path to choose after class 12th commerce then get in touch with our experts at Leverage Edu. They will help you choose a stream that suits you perfectly and help you carve a niche for yourself. Sign up for a free session today! 

So, this was all about Marketing Management class 12l. We hope it helps you prepare for your exams and also aids you in revising. If you are confused about which career path to choose after class 12th commerce then get in touch with our experts at Leverage Edu. They will help you choose a stream that suits you perfectly and help you carve a niche for yourself. Sign up for a free session today!