Marketing Revision Notes - CBSE Class 12 Business Studies Chapter 11

Key vocabulary terms and definitions from the lecture notes on Marketing for CBSE Class 12.

Market

The place where buyers and sellers gather to enter into transactions involving the exchange of goods and services; derived from Latin marcatus meaning to trade.

Marketing

A human activity directed at satisfying needs and wants through exchange; involves determining needs of target markets and delivering satisfying offerings more efficiently and effectively than competitors.

Needs

A state of deprivation or a feeling of being deprived of something; fundamental to human beings and not tied to a specific product.

Market Offering

Process of presenting a product or service with features (size, quality, taste, etc.) for the purpose of selling.

Customer Value

The perceived value and benefits gained by customers from exchanging for a product or service.

Exchange

The process by which two or more parties come together to obtain a desired product or service by giving something of value in return (often money).

Conditions for Exchange

At least two parties; offering something of value; communication; freedom to accept or reject; willingness to enter into a transaction.

What Can Be Marketed

Physical product, services, ideas, person, place, experience, properties, events, information.

Marketer

Person who identifies consumer needs, offers a product/service, and persuades them to buy in the process of exchange.

Goods Marketer

Sellers of tangible goods (e.g., Hindustan Lever).

Services Marketer

Sellers of services (e.g., Indian Airlines).

Marketing Management

Management of the marketing functions; organizing, directing, and controlling marketing activities to satisfy customers and achieve organizational goals.

Target Market

The specific group of customers at whom marketing efforts are aimed.

Value Creation (Superior Value)

Creating, developing, and communicating superior values to customers to persuade them to buy.

Production Concept

Concept where the starting point is factory production and affordability; focus on mass production.

Product Concept

Focus on product quality and features; continual product improvement aimed at profit maximization.

Selling Concept

Idea that increased production and aggressive selling/promotions are needed because consumers won’t buy without prompting.

Marketing Concept

Marketing starts with finding what consumers want and satisfies them to earn profits; customer satisfaction is a precondition.

Societal Marketing Concept

Marketing that balances company profits, consumer satisfaction, and society’s interests.

Marketing Philosophies (Starting Points)

Factory-based (Production/Product/Selling) versus Market-based (Marketing) and Society-based (Societal) approaches.

Marketing Mix (4 Ps)

The set of controllable marketing tools: Product, Price, Place (Distribution), and Promotion.

Product (P)

Goods or services or anything of value offered to the market for sale.

Price (P)

Amount of money customers pay to obtain a product or service; influenced by objectives, costs, demand, competition, and government policy.

Place/Physical Distribution (P)

Making the product available at the right place, in the right quantity, at the right time.

Promotion (P)

Informing and persuading customers about a product or service to encourage purchase.

Product Classification (Goods)

Consumer products vs Industrial products; categories include convenience, shopping, specialty, etc.

Durability Classification

Non-durable, Durable, and Services.

Branding

Process of creating a distinct identity for a product and positioning it in the minds of consumers; involves brand management.

Brand

Name, term, symbol, design, or combination used to identify and differentiate a product.

Brand Name Characteristics

Short, easy to pronounce, distinctive, adaptable to packaging, legally protected.

Packaging

Designing and developing the container or wrapper of a product; can be a promotional tool and provide protection.

Levels of Packaging

Primary (inner container), Secondary (outer protection), Transportation packaging.

Labeling

Placing identification marks on the package; provides product information and contents.

Functions of Packaging

Identification, protection, convenience, promotion, health standards, and differentiation.

Grading

Classifying products into groups based on quality or other characteristics.

Pricing Objectives

Goals such as maximizing profits in the short run or long-run market share growth.

Product Cost

All costs involved in producing, distributing, and selling the product; sets the price floor.

Utility and Demand

Utility provided and demand determine the upper price; the Law of Demand and elasticity affect pricing.

Elasticity of Demand

Responsiveness of demand to price changes; elastic means large change in quantity with price change; inelastic means little change.

Competition (Extent of)

Prices and actions of competitors influence pricing decisions.

Government Policies

Government intervention can regulate prices for public interest.

Marketing Methods Used (Pricing Context)

Distribution, packaging, credit, product differentiation, and promotions influence price decisions.

Physical Distribution

Decisions to ensure product availability at the right time and place; includes channels and logistics.

Channels of Distribution

Network of firms and individuals that move title or assist in transferring title from producers to consumers.

Direct Channel

Manufacturer to customer with no intermediaries.

Indirect Channel

Use of intermediaries to move goods from producer to consumer.

One-Level Channel

Manufacturer–Retailer–Customer.

Two-Level Channel

Manufacturer–Wholesaler–Retailer–Customer.

Three-Level Channel

Manufacturer–Agent–Wholesaler–Retailer–Customer.

Factors Determining Channel Choice

Product-related factors, company characteristics, competition, market size/concentration, and environmental/legal factors.

Promotion (Promotion Tools)

Advertising, Personal Selling, Sales Promotion, Publicity.

Advertising

Paid, impersonal form of non-personal promotion sponsored by an identifiable sponsor; uses mass media.

Objections to Advertising

Perceived as costly, can undermine values, may confuse buyers, can promote inferior products or bad taste.

Personal Selling

Direct, face-to-face communication aimed at building relationships and closing sales; paid, sponsor identifiable.

Sales Promotion

Short-term incentives or activities to stimulate purchase; includes gifts, discounts, contests, etc.

Publicity

Unpaid exposure of information about a product or company in media; no sponsor identified.

Public Relations

Strategic management of information to promote a favorable image; includes press relations, product publicity, corporate communication, lobbying, and counseling.

Advertising vs Personal Selling (Differences)

Advertising is impersonal and mass-focused with broad reach; Personal selling is personal, flexible, with direct feedback and higher cost per person.