CBSE Class 12 Business Studies Marketing Management Notes Set B

Introduction:

Marketing management is an important functional area of business. It is the process of planning, organising, directing and controlling the activities related to marketing of goods and services to satisfy customer’s needs & achieve organisational goals.

Functions of Marketing / Marketing activities

1. Marketing research: Gathering and analysing marketing information i.e. what the customers want to buy, when they are likely to buy in what quantities do they buy, from where do they buy etc.

2. Marketing planning: Specific plan for increasing the level of production, promotion of the products etc and specify the action programmes to achieve these objectives.

3. Product designing and development; Marketer must take decision like, what-product? Which model / size? brand name? Packaged? quality level? So that customer needs are satisfied.

4. Buying & assembling: e.g., car. Raw material like steel, tyres, batteries, seats, steering wheels etc are bought & them assembled in the form of a complete product.

5. Packing / Labelling: designing the package & labelling.

6. Branding: Creating a distinct identity of the product from that of competitors e.g. Videocon washing machine.

Concepts & Philosophies of Marketing: –

1. Production concept: Profits could be maximised by producing products at a large scale, thereby reducing average cost of production. Drawback: Customer do not always buy inexpensive products.

2. Product concept: Business goals lies in making high quality products as customer favour them.

3. Sales Concept: Firms must undertake aggressive selling & promotion efforts to make customers buy their products.

Marketing Mix: Marketing mix refers to ingredients or the tools or the variables which the markets mixes in order to interact with a particular market.

Elements / 4 Ps of Marketing mix

1. Product Mix: Product live e.g. Hindustan Lever Limited – Colgate, lifebuoy etc.

2. Price Mix: Value (Money) in lieu of product / Service received by seller from a buyer.

3. Promotion mix: informing the customers about the products & persuading them to buy the same.

4. Place Mix : Physical distribution : Various decision regarding distribution of products.