Today we are going to discuss the new chapter of business studies CBSE class 12 that is Marketing Management.
Also, we are going to give you study notes, video lectures and also PDF of handly lecture notes. Firstly, I want to share with you what are all the topics which we are going to cover in this article. Also, you can watch all the chapters videos on my YouTube channel by clicking here.
- Meaning & Concept of marketing management
- Features of marketing management
- Marketing management philosophies
- Marketing Mix
- Elements of marketing mix
- Physical distribution
- Personal selling
- Sales promotion
- Public relations
- Case study of marketing management
Meaning & Concept of Marketing Management
“Management of all the activities related to market is called marketing management.”
Marketing is a social process of identifying the needs and wants of customers and satisfying them through creating market offerings by giving something of customer value with the help of the exchange mechanism.
Features of Marketing Management
1) Needs and wants – All the companies first identify the needs and wants of the customers.
2) Creating market offerings – In this, the company decides the specifications of the product like price, size, color, features, etc.
3) Customer value – The companies have to make sure that the products they are selling are beneficial and affordable for the customers.
4) Exchange mechanism – The business is done by exchange mechanism which is, manufacturers, sell their product to the customers, and in return customers pay the money to the manufacturers.
*Exchange is the essence of marketing.
Marketing Management Philosophies
1) Production concept –
- In this mostly companies believe that products and services are cheap and easily available so that they can be sold easily.
- Their main focus is on how to reduce the cost and increase production.
- The drawback is customers not necessarily buy cheap goods.
2) Product concept –
- In this, they believe that product and services of good quality can be easily sold.
- Their main focus is to produce good quality products and added features in it.
- The drawback is customers only buy when they need it.
3) Selling concept –
- In these companies make customers buy products he/she needs to be convinced, even if they don’t have the intention of buying it.
- In this, the companies mainly use aggressive selling and promotional techniques to sell products by hook or by crook.
4) Marketing concept –
- In these companies do not sell what they have but produce what customer wants.
- Their main focus is customer satisfaction, by producing a product that helps to satisfy customer needs.
5) Societal concept –
- Producing as per customer wants is good but companies must not follow this blindly in ethical and ecological aspects of society.
- Their main focus is on customer satisfaction within the ethical and ecological boundaries of society.
What is the marketing mix?
In short, a marketing mix is a tool that helps every business to reach a large number of customers, this helps businesses to sell their products and services to a large audience and earn large profits.
What are the elements of the marketing mix?
The marketing mix has three elements which are as follows:-
- Physical distribution
We will discuss all the above four elements in detail. I will also suggest watching the videos for a better understanding. Firstly, let’s discuss what is the product in the marketing mix.
You can also join me on my YouTube channel where you will get all educational videos for free.
Product of marketing mix
The product is a mixture of branding, labeling, and packaging. So when we will discuss what is branding, labeling, and packaging then you will easily understand the product of the marketing mix.
Branding is Just image customers make in their minds about any products, services or companies.
Under branding, It is very important to understand some terms. If you will start read further without understanding branding terms you will be in confusion then.
Terms which we discuss under branding are:-
- Brand name
The brand name is the name given to a brand that can spell in words. For example – Nike, Apple, etc.
The brand mark is a part of a brand that can not spell in words. For example – Nike logo, Apple logo, etc.
The trademark is a part of the brand which is exclusive for business firm and is legally protected. Also, no one can take it.
Advantages of branding to the marketer
Branding helps marketers in many ways. Some of the advantages marketers get from branding are in the following ways:-
- It helps marketers to differentiate their products and services from others.
- It helps marketers to display and advertising their products and services.
- Marketers can make their products and services price different from others with the help of branding.
- Whenever there is the launching of new products under brand name and services it becomes very easy for marketers to sell it.
Advantages of branding to the customer
Branding also helps customers in different ways. Some of the advantages customer get are in the following ways:-
- With the help of branding, customers can easily identify the product of any brand.
- Products and services of the good brand give customers quality assurance.
- A good brand helps as providing a status symbol to customers because of high performing expensive products become a status symbol.
The packaging is the process of producing a package for products. It is the outer cover of the product. In packaging, we will cover the following topics they are:-
- Levels of packaging
- Importance of packaging
- Functions of packaging
So without any delay let’s briefly discuss the above topics in detail.
Levels of packaging
There are three levels of packaging. The levels of packaging are:-
- Primary packaging
- Secondary packaging
- Transportation packaging
Primary packaging is a layer of cover kept throughout the life of the product. For example – a tube of toothpaste you will keep a tube of toothpaste till paste inside it does not get empty.
Secondary packaging is an extra layer after primary packaging.
Transportation packaging is a package used for the transportation of products. These packages have shock-absorbing qualities. For example – corrugated boxes containing forty or fifty tubes of toothpaste.
Importance of packaging:-
Packaging has much importance in life everyone. Some of the importance of packaging are as follows:-
- People who are very health conscious buy packaged products.
- Packaging helps to attract a large number of customers.
Functions of packaging:-
Packaging has many functions. Some functions are:-
- Packaging provides protection to products.
- Packaging helps to handle products easily.
The labeling is the product for designing a label for a product. Labeling has some functions like it provides information about the product. One can identify easily the product by seeing the label.
I will suggest watching YouTube videos because when you will watch videos you will get the concept more clear. So I will recommend you to do it.
Now we have completed branding, packaging, and labeling. So every company takes care of these three things and then makes a good product.
So finally we are over with the product element of the marketing mix. Now we will be going to switch over to the next element of the marketing mix that is the “price element of marketing mix”.
Price is the money that the customers pay to get products and services. So, to get products and services in return you need to pay money (or price).
Factors affecting the price of products
In this topic, we have to study how companies need to set the price of their products and services? So, there are many factors that companies depend upon to set the prices. Some factors are:-
1_Companies have to set their prices greater than the cost of producing products and services. For example – the cost of making products or services is (suppose $2) then the price must be greater than ($2).
2_According to the demand of product companies must fix prices. For example – demand is more in the market of any product then companies must raise the price to earn more profit and vice versa.
3_According to competition price must fix by companies. For example – Competition is high then prices must be low and vice versa.
So, we have finally completed the price element of the marketing mix. Now we will discuss after the next element of the marketing mix that is “Physical distribution”.
This is the most important element of the marketing mix. In physical distribution companies make their products and services available to customers.
The physical distribution of marketing mix is also known as “Place distribution of marketing mix”.
Physical distribution is of two types. The two types are:-
- Direct channels
- Indirect channels
Direct channels refer to channel between manufacturers and customers. No middleman involved in the direct channel.
Indirect channels refer to channel between manufacturers, middlemen, and customers. Middlemen are the people who help customers to get products produced by manufacturers.
* Note – Middlemen are usually agents, wholesalers, and retailers.
Indirect channels are of two types. The two types of Indirect channels are:-
- One level channel
- Two-level channel
- Three-level channel
One level channel refers to a channel between manufacturer, one middleman, and customer. The middleman involved here is the retailer.
Two-level channel refers to a channel between manufacturer, two middlemen, and customer. The middlemen involved here are wholesalers and retailers.
Three-level channel refers to a channel between manufacturer, three middlemen, and customer. The middleman involved here are agents, wholesalers, and retailers.
So, you can watch videos and see the above images because this will help you to get more clarity on this topic. Now we will discuss the factors.
Factors affecting the physical distribution
In this topic, we will study which channel companies must choose. Companies generally have two choices about whether to choose a short channel or a long channel.
So, what are short channels and long channels?
The short channels are the channels that have fewer middlemen involved but long channels are the channels that have large middlemen involved.
So, now there are different factors on that bases companies choose short or long channels. Some factors are in the following ways:-
- Product factors
- Company factors
- Competition factors
- Market factors
- Environment factors
Under the product factor companies choose short or long channels according to products. For example – the product is costly and decay quickly companies choose a short channel. If it is not quickly decaying product companies choose long channels.
Under the company factor, if companies have good strength then they will choose a short channel and vice versa.
Under the competition factor, the company observes the channels of distribution of the competitors. In case it finds the competitors strong it can avoid the same channel.
Under the market factor companies choose a channel according to the geographical location of buyers, size of market and size of the order.
Under the environment factor, if the economy is going through a recession, then the producer must choose a short channel.
So, we have finally completed the physical distribution elements of the marketing mix. Now we will be going to discuss the last element of the marketing mix that is the “Promotion element of marketing mix”.
As I am always saying watch videos too because you will get more clear to concepts after watching YouTube videos.
The promotion element of the marketing mix is all sorts of efforts companies take to achieve its reach to the target customers.
The promotion element of the marketing mix has four elements. These four elements are as follows:-
- Personal selling
- Sales promotion
- Public relation
So, we will one by one discuss all the above topics in detail. So, let’s start with advertising first then cover rest further on.
It is a paid form of promotion method where companies promote their products and services with an identified sponsor.
Role of advertising
Advertising plays an important role. Some role of advertising are as follows:-
1_It helps to reach a large number of customers.
2_Creates satisfaction and confidence among customers.
3_With the help of advertising messages spread quickly.
4_It is cheap because per unit cost of reaching people is very less.
Objections to advertising
As you all know nothing in the world is 100% good. In other words, advertising also has some bad effects too. So let’s check some objections to advertising. They are so below:-
1_It is a costly process and the companies shift this cost towards customers.
2_Customers get into confusion due to advertising for the same product by different companies.
3_Some advertisements may be against social values.
4_Sometime advertisements promote inferior goods.
5_Some advertisements are in bad taste.
It is the selling of products by one person to another group of people by the establishment of an oral conversation.
Features of personal selling
There are four features of personal selling. So features are:-
1_Involves the formation of a personal relationship between seller and buyer.
2_Seller gets feedback from the customer directly.
3_In personal selling there is always less wastage of efforts take place.
4_Seller directly talk with customers and can change the conversation in order to suit the requirements of his clients.
In sales promotion, there are many ways companies use to attract more and more customers. So we will discuss what are the ways companies use to attract customers to buy their products and services.
So some ways are in the following ways:-
1_Rebate – Sometimes companies left with stocks of product which they did not able to sell. So, companies clear those stocks by selling them at a very less price.
2_Discount – It is the same as rebate but the discount is in percentage. For example – 50% off.
3_Refunding – When a customer shows proof of purchase he/she gets repaid a part of the money paid by him as price.
4_Product combination – An extra gift is given with the product. For example – A free pen with soap.
5_Quantity gift – An extra product given of the same product. For example – Buy one get one free.
6_Instant draws gifts – On scratching a card or opening a package a gift is found in which the buyer becomes eligible for that gift.
7_Lucky draws – On a given date a lucky draw event held and one person declared the winner through random drawings out of the names of the customers.
8_Usable benefits – A holiday package or free services (Like Talktime) offered on a purchase of the products.
9_Sampling – Free samples of the products distributed by companies.
10_Contests – Contests are organized by companies trying to popular their products.
11_Full finance – A product given on zero interest installments. However, generally file charges taken in place of interests.
All the activities business firms enterprise undertake to create a good image in the eyes of various stakeholders.
1_ Press releases – With the help of media companies talk all the good things about their products and services and make a good image in front of media.
2_ Corporate Communication – With the help of magazines, newsletters, etc companies talk about all the good things about their products and services and make a good image in front of the media.
3_ Lobbying – Companies make good relations with government officials so that they can help companies in their bad time.
4_ Products Publicity – companies organize various events to popular their products and services.
1_ Building awareness – With the help of various platforms (like media, magazines, etc) companies make their good image in the market.
2_ Building credibility – Credibility means the trust of customers so companies build trust with the help of media.
3_ Reducing the cost of promotion – With the help of public relations cost of promotion activities decreases.
4_ Stimulating salesforce – It becomes very easy for companies to promote products and services with the help of public relations.
Case Study of Financial Markets
So, Guys, we have finally over with this chapter.
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