CBSE Class 12 Business Studies Marketing Management Worksheet Set C

KEY CONCEPTS IN NUTSHELL:

MARKET : It refers to a place where the buyers and sellers meet each other for sale and purchase of the commodity.
CUSTOMER : Customers refers to the people or organization that seek satisfaction of their needs and wants.
SELLER OR MARKETEER : The sellers or marketers offer a variety of entities to customers.
MARKETING : Marketing makes goods and services more useful to the society by creating place, time and possession utilities.

FEATURES OF MARKETING :
a. Needs and wants
b. Creating a market offering
c. Customer value
d. Exchange mechanism

DIFFERENCE BETWEEN SELLING CONCEPT AND MARKETING CONCEPT : 

MARKETING MANAGEMENT : It deals with planning, organizing and controlling the activities related to the marketing of goods and services to satisfy the consumer‟s wants.

NATURE :
1. It is goal diverted
2. It determines the appropriate marketing mix if the firm.
3. It is a functional area of management
4. It is a specialized job
5. It is the marketing concept in action

OBJECTIVES :
a. Creation of demand
b. Market share
c. Goodwill
d. Profitable sales volume through customer satisfaction
e. To determine marketing mix that will satisfy the needs of the customers
f. To generate adequate profits for the growth of the business.

DIFFERENCE BETWEEN MARKETING AND SELLING :|

ARKETING FUNCTIONS :
1. Marketing research
2. Marketing planning
3. Product planning development
4. Buying and assembling
5. Packaging and labeling
6. Branding
7. Customer support services
8. Storage and warehousing
9. Transportation
10. Promotion and selling
11. Standardisation and grading
12. Pricing
13. Fixing
14. Risk taking

MARKETING MIX, ELEMENTS :
1. Product Mix
2. Price Mix
3. Place Mix
4. Promotion Mix

MEANING OF MARKETING MIX :

It refers to the combination of four basis elements, product, price, promotion and the place known as the four P‟s of marketing.

PRODUCT : Total number of products and items that a particular seller offers to the market is called market mix.
a. Branding b. Trade mark
c. Packaging d. Labelling

PRICE MIX : It is the worth of a product or service in monetary terms :
Factors considered before fixing price are
a) Company objectives
b) Cost
c) Competition
d) Customer demand

PLACE MIX : It refers to a set of decisions that need to be taken in order to make the product available to the consumers for purchase and consumption. Channels of distribution. Physical distribution Cost and service trade off in Logistics

PROMOTION MIX : It is concerned with activities that are undertaken to communicate with both customers and participate in the channel of distribution such that sales goals are
realized.

ACTIVITIES INVOLVED IN PHYSICAL DISTRIBUTION OF GOODS
a. Transportation
b. Inventory
c. Warehousing
d. Order processing

FACTORS TO BE KEPT IN MIND BEFORE PRICING
a. Cost of production
b. Demand for product
c. Price if competitive firms
d. Purchasing power if customers
e. Government regulations
f. Objective

CHARACTERISTICS OF GOOD BRAND NAME :
1. Simple and short
2. Easily pronounceable
3. Suggestive
4. Distinctive

VARIOUS LEVELS OF CHANNELS OF DISTRIBUTION
1. Direct channel / Zero level channel
2. Indirect channels
a. One level channel – Manufacturer to Retailer
b. Two level channel – Manufacturer to Whole Saler to Retailer
c. Three level channel – Manufacturer to Agent – Wholesaler – Retailer - Consumer

FUNCTIONS OF PACKAGING :
a) Protection, b. Identification, c. Convenience

FUNCTIONS OF LABELLING :
a) Identification
b) Classification
c) Promotion

ADVANTAGES OF BRANDING :
a) Brand name helps in advertising in easier way
b) Brand name establishes the permanent identify of the product.
c) Brand name promotes repurchasing.
d) Competition becomes easier with the help of brand loyalty.

ADVERTISING : It is defined as any paid form of non-personal presentation or promotion of ideas, goods or services by an identified sponsor.

Merits : 1) Mass reach
2) Enhancing customer satisfaction
3) Expressiveness
4) Economical

Limitations : 1) Less forceful
2) Lack of feed back
3) Inflexibility
4) Low effectiveness

Features : a) Paid form
b) Impersonal presentation
c) Speedy and mars communication
d) Identified sponsor

OBJECTIONS TO ADVERTISEMENT
a) Adds to Costs : Advertising costs are passed on to the consumers in the form of high prices.
b) Some Advertisements are in bad taste.

Sales promotion : It refers to short term use of incentives or other promotion activities that seek to stimulate interest.
a) Rebates
b) Refunds
c) Discounts
d) Quantity deals
e) Contents
f) Packaged premium
g) Container premium
h) Premium Gifts
i) Sampling
j) Free in mail premiums

Trade Promotion :
1) Premium and contests
2) Special Discounts
3) Free Goods
4) Allowances
5) Novelties
6) Push Money

Tools of Sales Promotion
1) Samples
2) Coupons
3) Premiums / Bonus Offers
4) Price-off offers
5) Contests
6) Demonstration
7) Gifts

PERSONAL SELLING : It involves face-to-face interaction between the seller and the prospective buyer.
Features : 1) Personal interaction
2) Two way communication
3) Better response
4) Relationship

STEPS IN SALES PROCESS :
a) Prospecting
b) Qualifying
c) Pro-approach
d) Approach
e) Presentation and demonstration
f) Handling Objections
g) Closing
h) Follow-up

IMPORTANCE OF PERSONAL SELLING
1) Importance to Businessmen :
a) Effective promotion tools
b) Flexible Tool
2) Importance to Customers :
a) Helps in identifying needs
b) Latest market information
3) Importance to Society :
a) Converts latest demand
b) Employment opportunities

PUBLICITY :
Meaning : It refers to the non-paid non-personal presentation if ideas, goods and services through a mass media in the form of news item.
Role of Publicity :
1) Importance to manufacturers :
a) Lastless media of promotion
b) Enhancing Goodwill
2) Importance to customers :
a) Enhancing customers confidence
b) Enhancing customers knowledge

VARIOUS PUBLIC RELATION TOOLS TO SHAPE THE PUBLIC IMAGE IF THE ORGANISATION
a) News
b) Speeches
c) Events
d) Written Materials
e) Public service activities

Sub Topic: Qualities of a good salesman

1. Physical qualities: As goes the saying ““First impression is the last impression”, a good salesman can instantly connect with the customer if he is good looking and smart.

2. Psychological qualities: He should be friendly and patient. He should be able to talk in terms of the customer's interest and must create pleasant atmosphere to achieve favorable attention and interest on the part of the prospective buyer.

3. Technical quality: He should have full and updated knowledge about the product he is selling- its features, price and variety available. He should be aware of the nature of work carried on by the firm he is working for.

4. Good communication skills: He should be able to develop a good conversation with the customer. He should be confident while he is communicating and should be able to answer all the queries of the customer satisfactorily.

5. Honesty: It is a very important quality of a good salesman. .In order to establish the goodwill of firm he must be honest and sincere in performing his duty. A salesman who resorts to selling inferior goods, charging higher rates, providing wrong information, giving exaggerated claims etc will cause a decline in goodwill of the firm in the long run.

6. Courtesy: A salesman who is polite and courteous generates buyer’s confidence and selling the product becomes easy.

7. Persistent: “Never give up”, is the spirit that a salesman should have. Making the customer buy maximum amount of a product is the ultimate task given to him.

8. Capacity to inspire trust: The salesman should have the convincing power to develop the belief in a customer that the product he is buying is the best product in the market.

Sub Topic: Public Relations

Public Relations: Concept
The concept of Public Relations involves a variety of programmes to promote and protect a company’s image or its products. It means to strengthen relations with various stake holders like customers, shareholders, employees, suppliers, investors etc. It is done through – news, speeches by corporate leaders, organizing events like sports events, concerts, seminars etc.
‘Public Association Relations’ defined public relations as “ The art and social science of analyzing trends, predicting their consequences, counseling organizational leaders and implementing planned programme of action which will serve both the organization and the public interest.”

“The Chartered Institute of Public Relations” defines Public Relations as ‘a strategic management function that adds value to an organization by helping it to manage its reputation; Public relations covers a wide range of tactics, usually involve providing information to independent media sources in the hope of gaining favorable coverage. It also involves a mix of promoting specific products, services and events and promoting the overall brand of an organization, which is an ongoing tact.

Public Relation Tools include-
1.Press release : A press release is an announcement of an event, performance, or other newsworthy item that is issued to the press by a public relations professional of an organisation.
It is written in the form of a story with an attractive heading so that the media quickly grasps and circulates the message through newspapers/radio/television/internet.

2. Press Kits: It is a comprehensive package of information outlining a company's products and services most frequently sent to members of the press. It includes
A brief company biography
information of senior management
comments from customers
Reprints of newspaper and magazine articles
Photos of products

3.Brochures: It is a booklet published by the organization which contains the organization’s background, its ethics, vision, mission, its past, present and future projects, its USP, etc. Eg: brochure given to new employees to give them a gist of the organization.

4. Newsletters: It is a printed publication produced at regular intervals focusing on a particular set of people. The content of a newsletter is presented in a writing style that is less formal and letter-like. For example, a newsletter published by a college consists of information about activities conducted during a particular period, special achievements by students or teachers, etc.

5. Events and Press support: Special events are acts of news development. The ingredients are time, place, people, activities, drama, showmanship; one special event may have many subsidiary events, such as luncheons, banquets, contests, speeches, and many others as part of the build up.

6. Conferences and Seminars: Conferences and seminars are conducted for making people aware about the organization. For example travel companies generally call prospective clients and offer travel packages. The members are contacted through telephones and asked to attend seminar.

7. Websites: A website acts as a window for the outside world to know an organization. So it is designed not just to serve as a resource for members, also to present a positive message to nonmembers who are browsing through.

ROLE OF ‘PR’ IN AN ORGANISATION
(i) Smooth functioning of business and achievement of objectives.
(ii) Building corporate image that affects favorably on its products.
– Up keep of parks, gardens, sponsoring sports activities etc.
(iii) Build interest in the established product and help in launching Products.
(iv) Establishing positive image of products facing adverse publicity. For example, soft drink majors- Pepsi, Coco-cola was subjected to a controversy that there were pesticides
found in the samples collected from different areas. In this situation, the companies attracted severe criticism from various sectors like consumers, investors, government etc. This called for public relations exercise so that damage control could be done.
(v) It acts as a supplement to advertising in promoting (new and existing) products.

Very Short Answer

Question. Why marketing is called a social process? 
Answer: As it involves interaction of people.

Question. Distinguish between 'Selling Concept' and 'Marketing Concept of Marketing Management Philosophies on the basis of 'main focus'. 
Answer: Main focus of selling concept is on the attracting consumers while main focus of marketing concept is on consumer satisfaction.

Question. State the meaning of 'Product Identification' function of packaging. 
Answer: It means that packaging keeps the difference between the product of one company and that of competitors.

Question. State the meaning of 'Product Promotion' function of packaging. 
Answer: It means that packaging is used to attract attention which makes possible the promotion of products.

Question. What is meant by Channels of Distribution?
Answer: It refers to that path through which products reach consumers.

Question. Give an example of services which can be marketed. 
Answer: Market Offer

Question. Mention one objection to advertising. 
Answer: Undermines social values.

Question. „Product is a bundle of utilities‟ Do you agree? 
Answer: It includes physical objects, services, ideas, place, experiences, properties, events, information‟s, persons which can be offered to the potential buyers for their use.

Question. Expenditure on advertising is a social waste. Do you agree? Discuss.
Answer: Partially true, write objections to advertising