Marketing management refers to the management of all the activities related to the market. Here are the marketing management class 12 notes.
All the definitions of marketing are based on the philosophy that, “satisfaction of consumers is the basic purpose of business”.
Topics Discussed
Marketing
Marketing is a social process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.
Marketing focuses on the needs and wants of customers and tries to develop products or services that would satisfy them.
Features of Marketing
1) Needs and Wants
The focus of the marketing process is on the satisfaction of the needs and wants of individuals and organizations.
A marketer’s job in an organization is to identify the target customers’ needs and develop products and services that satisfy such needs.
2) Customer Value
Buyers will purchase a product only if it is perceived to be giving the greatest benefit or value for the money.
The purpose of marketing is to generate customer value at a profit. Marketers must add to the value of the product so that customers prefer your product over the competitor.
3) Creating a Market Offering
Market offering refers to a complete offer for a product or service by specifying its features, shape, size, color, etc.
For example: Offering a cell phone, with a good size of memory, television viewing, internet, camera, etc. are available around all metropolitan cities in the country.
A good market offer should keep in mind the satisfaction of customers.
4) Exchange Mechanism
The process of marketing involves the exchange of products and services for money or something of value to them.
In exchange customer pay money and in return, they take products or services that satisfy their needs and wants.
Exchange is the essence of marketing. The pillars of marketing are:
- Presence of at least two parties i.e. buyer and seller.
- Both parties are free to accept or reject the offer.
- Each party is capable of communication and delivery.
- Each party feels it is desirable to deal with the other.
- Both parties must have something viewed as valuable by each other.
Marketing Management Philosophies
There are five types of marketing management philosophies which are as follows:
1) Production Concept
During the earlier days of the Industrial Revolution, the demand for industrial goods started picking up but the number of producers was limited. Anybody who could produce the goods was able to sell.
The focus of business activities was on quantity of products. Greater emphasis was placed on improving the production and distribution efficiency.
It was believed that profits could be maximized by producing at a large scale, thereby reducing the average cost of production.
It was assumed that consumers would favor those products which were widely available at an affordable price. Thus, the availability and affordability of the product were considered to be the key to the success of a firm.
2) Product Concept
As a result of the emphasis on production capacity during the earlier days, the position of supply increased over some time.
Thus, with the increase in the supply of the products, customers started looking for products that were superior in quality, performance, and features.
The focus of business activity changed to bringing continuous improvement in quality, incorporating new features, etc.
Profit maximization through product quality improvements became the objective of a firm, under the concept of product orientation.
3) Selling Concept
The increase in the scale of business further improved the position concerning the supply of goods, resulting in increased competition among sellers.
This led to greater importance in attracting and persuading customers to buy the product. The business philosophy changed.
It was assumed that the customers would not buy, or not buy enough unless they were adequately attracted, convinced, and persuaded to do so.
Therefore, firms must undertake aggressive selling and promotional efforts such as advertising, personal selling, and sales promotion to make the customer buy their products.
The focus of business firms shifted to pushing the sale of products through aggressive selling techniques to persuade, lure, or coax buyers to buy the products.
4) Marketing Concept
The marketing concept implies that products are bought not merely because of their quality, packing, or brand name, but because they satisfy a specific need of a customer.
It assumes that in the long run, an organization can achieve its objective of maximization of profit by identifying the needs of its present and prospective buyers and effectively satisfying them.
The focus of the marketing concept is on customer needs and customer satisfaction becomes the means to achieving a firm’s objective of maximizing profit. The purpose of marketing is to generate customer value at a profit.
All the decisions in a firm are taken from the point of the customers. If all marketing decisions are taken with this perspective, selling will not be a problem. It will automatically follow. The basic role of a firm then is to ‘identify a need and fill it’.
Pillars of the Marketing Concept:
- Identification of the market or customer who is chosen as the target of marketing efforts.
- Understanding the needs and wants of customers in the target market.
- Development of goods or services for satisfying the needs of the target market.
- Satisfying the needs of the target market better than the competitors.
- Doing all this at a profit.
5) Societal Marketing Concept
The societal marketing concept holds that the task of any organization is to identify the needs and wants of the target market and deliver the desired satisfaction in an effective way to the consumers and the society is taken care of.
Thus, the societal concept is the extension of the marketing concept.
Apart from customer satisfaction, it pays attention to the social, ethical, and ecological aspects of marketing. There are large numbers of such issues that need to be attended to.
Differences in the Marketing Management Philosophies
| Philosophies | Production Concept | Product Concept | Selling Concept | Marketing Concept | Societal Concept |
| Starting Point | Factory | Factory | Factory | Market | Market and society |
| Focus | Quantity of product | Quality of product | Selling existing products by hook and crook | Customer satisfaction | Customer satisfaction within the tradition of society |
| Means | Availability and affordability of product | Improvements of quality | Selling and promoting | Marketing techniques | Marketing techniques |
| Ends | Profit through large volume of production | Profit through the quality of the product | Profit through sales volume | Profit through customer satisfaction | Profit through customer satisfaction and social welfare |
Functions of Marketing
1) Gathering and Analyzing Market Information
One of the important functions of a marketer is to gather and analyze market information to identify the needs of the customers.
For example: Rapid growth in several areas such as the use of the internet, the market of cell phones, etc.
2) Marketing Planning
Marketing helps to develop appropriate marketing plans to achieve the marketing objectives of the organization.
For example: A marketer of LED televisions, having 10% of the current market share, aims at enhancing his/her market share to 20% in the next 2 years.
He/She will have to develop a complete marketing plan covering various important aspects such as increasing the level of production, promotion of the products, etc.
3) Product Design and Development
Marketing activity relates to designing and developing the product in such a way that it attracts the target customer.
For example: When a person plans to buy any product, say a car, he not only sees its features like price, mileage, etc. but also the design aspect like its shape, style, etc.
4) Standardization and Grading
Standardization refers to producing goods of pre-determined specifications, which helps in achieving uniformity and consistency in the output.
Grading is the process of classification of products into different groups, based do their important characteristics such as quality, size, etc.
5) Packaging and Labelling
Packaging refers to designing and developing the package for the products. Labeling refers to designing and developing the label to be put on the package. The label may vary from a simple tag to complex graphics.
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6) Branding
The process of giving a name or a sign or a symbol, etc., to a product is called branding. Various items related to branding are brand, brand name, brand mark, trademark.
7) Pricing of Products
The price of a product refers to the amount of money customers have to pay to obtain a product. It affects the success or failure of a product in the market.
Marketers have to properly analyze the factors determining the price of a product and make several crucial decisions in this respect, including setting the pricing objectives, determining the pricing strategies, determining the price, and changing the prices.
8) Promotion
It involves informing the customers about the firm’s product, its features, etc., and persuading them to purchase these products.
The four important methods of promotion include advertising, personal selling, sales promotion, and public relations.
9) Physical Distribution
It is an important function in the marketing of goods and services. Under this decision regarding channels of distribution, marketing intermediaries (like wholesalers, and retailers) are to be used.
10) Transportation
It involves the physical movement of goods from one place to the other. For example: Tea produced in Assam has to be transported not only within the state but also to other far-off places, where it is consumed.
A marketing firm has to analyze its transportation needs after taking into consideration various factors such as the nature of the product, etc.
11) Storage or Warehousing
Usually, there is a time gap between the production and procurement of goods and their sale or use. Therefore, to maintain a smooth flow of products in the market, there is a need for proper storage of the products.
In the process of marketing, the function of storage is performed by different agencies such as manufacturers, wholesalers, and retailers.
12) Customer Support Services
The function of marketing relates to developing customer services such as after-sale services, handling customer complaints, maintenance services, etc.
These services aim at providing maximum satisfaction to the customers, which in turn helps in procuring repeat sales from the customers and developing brand loyalty for the product.
Marketing Mix
The marketing mix refers to the ingredients or the tools or variables that the marketer mixes in order to interact with a particular market.
It can be classified into four types:
- Product
- Price
- Place
- Promotion
Through the fine mixing of these elements, superior value products or services are created for customers. These elements are more popularly known as the Four P’s of Marketing.
Product
The product element of the marketing mix signifies the tangible and intangible product offered to the customer which satisfies the need of the customer.
It refers to the important decisions related to the product such as the quality of the product, packing of the product, etc.
It includes product quality, design, and development, packaging, labeling, branding, etc. For example, Hindustan Liver is dealing with soaps, detergents, tea, toothpaste, etc.
Branding
Various items relating to branding are brand, brand name, brand mark, and trademark. A marketer has to decide whether the firm’s product will be marketed under a brand name or a generic name.
The generic name refers to the name of the whole class of the product. If products are sold by generic name then it will be difficult for a marketer to differentiate his products from that of their competitor product.
For example: Phone is a generic name but Apple, Samsung, and Nokia are brand names.
- Brand: A brand is the identification of a product and can be in the form of a name, symbol, or design. Branding is not only done to identify the seller or producer but also to make your product superior to a competitor’s product. For example: Airtel, Nike, etc.
- Brand Mark: That part of a brand that can be recognized but which is not utterable is called a brand mark. It appears in the form of a symbol, design, distinct color scheme, or lettering.
- Brand Name: That part of a brand that can be spoken is called a brand name.
- Trade Mark: A brand or a part of a brand that is given legal protection is called a trademark. The firm, that gets its brand registered, gets the exclusive right for its use, no other firm can use such a name or mark in the country.
Qualities/Features of a Good Brand Name
- Brand names should be short, simple, and easy to spell and recognize. For example: Lux, Dettol, etc.
- Brand should be suggestive as it must suggest the product’s benefits and qualities. For example: Hajmola suggests digestive properties.
- Brand names should be easy to pronounce if it is difficult to pronounce, the customer will hesitate to demand them.
- Brand names should be adaptable, and must be selected after considering their meaning in other languages and cultures.
- Brand names should be selected to be unique and distinctive so that they should not lose their identity.
Advantages of Brand Name
| Advantages to the Marketers | Advantages to the Customers |
| Helps in Product Differentiation | Ensures Quality |
| Differential Pricing | Helps in Product Identification |
| Helps in Advertising | Status Symbol |
| Easy Introduction of New Product |
Packaging
Packaging means the act of designing and producing the container or wrapper of a product and putting the product into it.
It is the basic activity of every company and plays a very important role in the marketing success or failure of many products, particularly the consumer non-durable products like pulses, ghee, milk, salt, etc.
Levels of Packaging
There are three levels of packaging:
| Primary Packaging | It refers to the immediate packing of the product. It remains with the product till it is used. For example, toothpaste tubes. |
| Secondary Packaging | It refers to the additional layers of protection that are kept till the product is ready for use. For example, a tube of shaving cream comes in a cardboard box. People throw boxes when they start using paste. |
| Transportation Packaging | These are the packaging used for storing or transporting the goods. This packing gives protection to goods. For example, corrugated boxes are used to shift ruffle lays, kurkure, etc. |
Importance of Packaging
1) Self-Service Outlets
Self-service outlets are becoming very popular. In these stores generally, products with attractive packaging are picked by buyers more quickly.
2) Product Differentiation
The packaging helps the customers to differentiate between goods based on quality as with the type of packaging customers can guess about the quality of goods.
3) Rising Standards of Health and Sanitation
Because of the increasing standards of living in the country, more and more people have started purchasing packaged goods as the chances of adulteration in such goods are minimized.
4) Innovational Opportunities
Some of the recent developments in the area of packaging have completely changed the marketing scene in the country.
For example, Milk can be stored for 4-5 days without a refrigerator. The scope of marketing is increasing with innovations in packaging.
Functions of Packaging
1) Product Identification
Packaging greatly helps in the identification of the products. For example, colgate in red color can be easily identified by its package.
2) Product Protection
Packaging protects the contents of a product from damage, breakage, spoilage, leakage, climatic effect etc. This kind of protection is required during storing, distribution and transportation of the product.
3) Product Promotion
Packaging plays the role of a silent salesman because it promotes or enhances the sales of the product.
A startling color scheme, photograph or typeface may be used to induce the customers to buy the product. Sometimes, it may work even better than advertising.
4) Facilitating the Use of the Product
The size and shape of the package should be such that it should be convenient to open, handle, and use of the consumers.
Cosmetics, medicines, and tubes of toothpaste are good examples of this.
Labeling
Labeling means putting identification marks on the package. Labels are useful in providing detailed information about the product, its contents, method of use, etc.
Product labels can be:
- In simple tag form as in the case of local products like rice, pulses, etc.
- Elaborate labels as used by reputed companies. These are very attractive and give complete information about the product to a customer.
Functions of Labelling
1) Identification of the Product or Brand
The label helps the customers to identify the product from the various types available.
For example, We can easily identify cadburry chocolate from the various chocolates kept on the shelf of a shop by the color of its label.
2) Describe the Product and Specify its Contents
The manufacturer prints all the information related to the product such as the contents, price, instructions to use, etc.
As the manufacturer cannot communicate with every customer so if he/she shares some information with the customer, it is done through label.
3) Grading of Products
Another important function performed by labels is to help grading the products into different categories.
For example, Brooke bond red label, green label, etc.
4) Help in the Promotion of Products
Attractive and colorful labels excite customers and induce them to buy the product. Specially in consumer goods, attractive labels increase sales volume.
For example, the label on the pack of Dettol shaving creams mentions ‘40% extra free’.
5) Providing Information required by Law
The label is also used to fulfill legal requirements as it is a legal compulsion to print batch no., contents, and maximum retail price, weight, or volume of the all the products.
On some products giving a statutory warning is also a legal compulsion and these legal requirements are fulfilled through the label.
Price
Price may be defined as the amount of money paid by a buyer (or received by a seller) in consideration of the purchase of a product or a service.
It is a crucial element of the marketing mix because a customer is very sensitive to this element. A little variation in the price may shift your customer to a competitor’s product.
Price is normally expressed in monetary terms. Price may be called by different names e.g.:
- Price for using the road is a toll
- Price of the job is the salary
- Price for education is tuition fees
- Price for an apartment is rent, etc.
It refers to the important decisions related to fixing the price of a commodity. These decisions can be related to the price of competitors, decisions related to the demand, decisions related to fixing costs, etc.
Factors kept in Mind while Fixing the Price of the Product
1) Price Objectives
The most important factor which helps in deciding the price is the objective of the firm. Apart from profit maximization, the pricing objectives of a firm may include”
- Obtaining Market Share Leadership: If a firm wants to capture a big share of the market then it has to keep its price low so that more people can be approached.
- Surviving in a Competitive Market: To survive in a competitive market firms, have to reduce their price by offering discounts.
- Attaining Product Quality Leadership: In this case, generally, high prices are charged to cover the cost of research and development.
2) Product Cost
The second most important factor that is kept in mind while fixing the price is the cost of the product or service.
Total cost includes fixed cost and variable cost. The price of a product must be such that it can cover the total cost of the product.
The production cost sets the minimum level or the floor price at which the product can be sold.
3) Customer’s Demand and Utility
The next factor to be kept in mind while fixing the prices is the demand for a product as well as the utility offered by the product.
If the demand for a product is inelastic then the company can fix up high prices whereas if the demand is elastic then the price has to brought down. Also, if the product is offering higher utility then the firm can charge a high price.
Whereas if utility is low then firms cannot charge high prices as the customer will not be ready to pay a high price. The utility and demand of the production set the upper limit of price.
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4) Extent of Competition in the Market
The next important factor which is to be kept in mind is the level of competition which the firm has to face. Between the lower limit and the upper limit where would the price settles down is affected by the degree of competition.
If the firm does not face any competition then it can enjoy complete freedom in fixing the price. But when the competition is more, then the price is to be fixed, keeping in mind the price of the competitor’s product.
5) Government and Legal Regulations
To protect the interest of the general public, the government has all the rights to control the prices of various products and services.
With government intervention, there can be a check on monopolist as they cannot charge unfair prices for the product.
Place
Place refers to the set of decisions that need to be taken to make the product available. Place element is a process by which the goods are transferred from the place of production to the place of consumption.
Place mix refers to important decisions related to the physical distribution of goods and services. These includes:
- Deciding the channels of distribution
- Physical movement of goods
Channels of Distribution
Channel of distribution refers to the people or middlemen who help in distributing the goods. It is very difficult for producers to distribute goods to places of consumption.
For example, Tea produced in Assam but it is consumed all over the country through channels of distribution.
Therefore, the producer takes the help of some middlemen so that it can be supplied to all the consumers.
1) Zero Level Channel/Direct Channel
It is a case when firms sell their products directly to customers without adopting any intermediary. For example, Bata sell their shoes directly.
2) One Level Channel
In this channel, only one intermediary is adopted i.e. retailers are used between the manufacturer and the customers. Goods pass from the manufacturer to the retailer who, in turn, sells these goods to the final users.
3) Two Level Channels
This is the most commonly adopted distribution network for most goods such as soaps, salts, etc. Here the wholesalers and retailers function as connecting links between the manufacturer and consumers.
4) Three Level Channels
In this channel, there are three intermediaries involved – agents, wholesalers, and retailers. When the products are distributed in deep corners of the country then distributers are appointed area-wise.
Factors Determining the Choice of Physical Distribution
1) Product Related Factors
There are various factors related to products which help in deciding the channel of distribution:
- Value of Product Line: If the unit value of the product line is high or for an expensive product direct sale from the company is preferred whereas, for less costly products, longer channels are preferred.
- Product Complexity: Technically complex products require expert advice and guidance so direct sale is preferred whereas for simple products longer channels can be used.
- Perishable and Non-Perishable Products: Direct selling is used for perishable products whereas non-perishable could be distributed with a long channel.
- Nature of Product: In the case of customized products there is a direct interaction between buyer and seller. Without any intermediary standardized products could be sold by using various intermediaries.
2) Company Related Factors
- Degree of Control: If the firms want to have tight control over the distribution they prefer a short path whereas firms that do not mind sharing the control appoint intermediaries for sale.
- Finance: A company that has no financial problem should prefer direct sales whereas financially weak firms depend upon distribution channels or intermediaries.
3) Market-Related Factors
- Nature of the Market: In the individual market, direct selling is preferred. Whereas in the consumer market distribution channels are appointed.
- Geographical Concentration: When buyers are concentrated in a limited area direct selling is preferred. Whereas if customers are scattered then more channels are used.
- Size of the Market: If the numbers of customers are large then more intermediaries are used whereas when the market consists of a small number of customers then short or direct channels are used.
- Quantity Purchased: If order size is big then direct supply from firms is preferred whereas for small orders retailers are preferred.
4) Competitive Factors
The type of channel selected by a competitor also affects the selection of channel. As a company may select the same channel or selected by the competitors or the company prefers not to select the channel selected by a competitor.
5) Environmental Factors
Other factors which affects the choice of channels of distribution like trade policy, economic policy, etc. For example, in a depressed economy shorter channels are preferred to distribute goods economically.
Components of Physical Distribution
1) Order Processing
Order processing means the time and steps involved between taking order from customer and delivery of goods as per order.
Generally the order processing involves:
- Order placement to the salesman
- Order transmission by the salesman to the company
- Inventory and production schedule situations checked by the company
- Delivery of goods as per order, etc.
There is a direct relation between the time taken in order processing and customer satisfaction. Companies are now looking forward to an information technology based system of order processing to make it fast and satisfy their customers.
2) Transportation
Transportation means the physical movement of goods from the place of production to the place of consumption. It is important because unless the goods are physically made available, the sale cannot be completed.
There are various means of transport available i.e., air, road, pipeline, air, etc. Hence, these modes should be evaluated and compared based on speed, frequency, flexibility, cost, etc. and the best mode should be selected.
3) Warehousing
Whatever is produced is not sold immediately. Therefore, every company needs to store the finished goods until they are sold in the market.
Storage is necessary because certain goods like crops are having seasonal production but these are demanded throughout the year. Hence, these have to be stored.
Maintaining stock in warehouses involves costs whether the company has its warehouse or a used hired one. The company must compare the cost with the benefits and try to maintain the balance between them.
4) Inventory
Inventory refers to the maintenance of a stock of goods. Proper inventory maintenance ensures product availability.
But inventory also involves a cost which includes the risk of price fluctuation and cost of capital blocked in risk of price fluctuation.
The firm must weigh the benefits of inventory and the cost involved and accordingly, the optimum level of inventory should be maintained.
Factors Help in Determining the Level of Inventory
- Firms Policy on Customer Service: If a firm has a policy of offering high-level customer service then they keep large stock. So that there is no delay in the supply of goods.
- Degree of the Accuracy of Sales Forecast: If sales forecast is done accurately then the inventory is maintained at a minimum level.
- Responsiveness of the Distribution System: If the producer requires more time then a high level of inventory is maintained but if additional demand can be met in less time then the need for inventory will also be low.
- Cost of Inventory: The cost of inventory includes warehouse charges and tie up capital. If the cost is higher, then low inventory is maintained but if the cost of inventory is low then high inventory can be maintained.
Promotion
The promotion element of the marketing mix is concerned with activities that are undertaken to communicate with customers and distribution channels to enhance the sales of the firm.
The promotional communication aims at informing and persuading the customer to buy the product and informing him about the merits of the product.
Promotion mix refers to a combination of promotional tools used by an organization to achieve its communication objectives.
There are various tools and elements available for promotion. Firms adopt these to carry on their promotional activities.
The market generally chooses a combination of these promotional tools. Following are the tools or elements of the Promotion mix:
- Advertising
- Personal Selling
- Sales Promotion
- Public Relations
Advertising
Advertising is an impersonal form of communication, which is paid by marketers (sponsors) to promote their products.
The advertisement builds a pull effect as advertising tries to pull the product by directly appealing to customers to buy it.
Features of Advertising
| Mass Reach | Advertising can reach a large market, as through various media of advertising there is a benefit of mass reach. For example, any message given on all India radio or TC can reach different corners of the country. |
| Legitimacy | In advertising, the messages regarding the product or service are given publically to customers. So there is always proof for it and customers believe that publicly the company will not give false information about the product. |
| Choice | There is a wide variety of media available for advertising for video, audio, virtual audio, etc. Under each category a large variety is available. For example, in print media, we can select from magazines, newspapers, banners, etc. |
| Economical | It is always felt that advertising increases the cost of a product or service. But advertising is considered economical as compared to other promotional techniques because it reaches the masses and the cost per customer will be very low or economical. |
| Enhancing Customer Satisfaction & Confidence | Customers feel more assured about the quality and feel more comfortable if sponsors claim these benefits in advertising. |
| Expressiveness | Advertising provides enough opportunities to marketers to dramatize the message with the help of drawings, colors, pictures, etc. |
Sales Promotion
It refers to the short-term use of incentives or other promotional activities that are designed to encourage buyers to make immediate purchases of a product or service.
It brings:
- The short and immediate effect on the sale.
- Stock clearance is possible with sales promotion.
- Sales promotion techniques help to win over the competitor.
- Sales promotion techniques induce customers as well as distribution channels.
Sales Promotion Techniques for Customers
1) Rebate
It refers to selling a product at a special price which is less than the original price for a limited period of time. This offer is given to clear off the stock. For example, Coke announced a 2-litre bottle at Rs. 35 only.
2) Discounts
This refers to the reduction of a certain percentage of the price from the list price for a limited period of time. At the end of the season big companies offer their products at a discounted price to clear off the stock.
3) Refunds
This refers to refund of part of the price paid by the customer on presenting the proof of purchase. For example, Rs. 2 off on the presentation of an empty pack of Ruffle Lays.
4) Quantity Deals
It refers to an offer of extra quantity in a special package at less price or an extra purchase. For example, buy three get one free.
5) Premiums or Gifts or Product Combination
It refers to giving a gift on purchase of the product and the gift is related to the product. For example, Mug free with Bournvita, toothbrush free with toothpaste, etc.
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6) Samples
It refers to the distribution of free samples of a product to the customers. For example, when Hindustan Unilever launched surf excel it distributed the samples as it wanted the customer to buy them.
7) Lucky Draw
These draws are taken out by including the names of customers who have purchased the goods and lucky winners get free cars, computers, A.C., T.V., etc.
8) Contests
It refers to the participation of consumers in competitive events organized by the firms and winners are given some reward.
9) Instants Draws and Assigned Gifts
It includes offers like ‘scratch a card’ and win instantly a refrigerator, car, etc.
10) Usable Benefits
This includes offers like ‘Purchase goods worth Rs. 5,000 and get a holiday package’ or get a discount voucher, etc.
Merits and Demerits of Sales Promotion
| Merits of Sales Promotion | Demerits of Sales Promotion |
| 1. Attention Value: The incentives offered in sales promotion attract the attention of the people. | 1. Spoil Product Image: The use of sales promotion tool may affect the image of the product as the buyer feel that the product is of low quality which is why firms are offering incentives. |
| 2. Aid to Other Promotional Tools: Salesmen find it easy to sell products on which incentives are available. | 2. Reflect on Crisis: If a firm is offering sales promotion techniques again and again it indicates that there is no demand for the product which can create a crisis situation. |
| 3. Useful in New Product Launch: The sales promotion techniques are very helpful in introducing the new product as it induces people to try new products as they are available at low prices or sometimes as free samples. |
Personal Selling
Personal selling means selling personally. This involves face-to-face interaction between the seller and buyer for sale.
Personal selling does not mean getting the prospects to desire what the seller wants but the concept of personal selling is also based on customer satisfaction.
Features of Personal Selling
| Two-way Communication | In personal selling, the sellers give information about the product, and at the same time, the buyer gets a chance to clarify his doubts. |
| Better Convincing | The salesperson can convince the buyer by demonstrating the use of the product and making changes in the product according to the needs of the customer. |
| Relationship | When the buyer and the seller come together this may improve the relation between the customer and the seller. |
| Better Response | When the seller is personally explaining the utilities of the product to the customers then customers do pay some attention and listen to the information. |
Qualities of a Good Salesmen
- Physical Qualities: A salesman must have good health and a pleasing personality. Good grooming, appropriate dress, and a good posture will go a long way in creating a first impression.
- Mental Qualities: A good salesman must have a presence of mind and good common sense.
- Social Qualities: A salesman must have good manners and courtesy in dealing with customers. He must have the ability to say the proper things and do the right thing without offending others.
- Technical Quality: The salesman must have full technical knowledge of the product.
- Other Qualities: A salesman must have the capacity to inspire trust. A salesman must be honest, loyal, and have a good memory power.
Role of Personal Selling
Personal selling plays a very important role in the marketing of goods and services. It is an important tool for businessmen, customers, and society.
Importance to Businessmen
- Effective Promotion Tool: Personal selling is an effective tool to increase the sale of products.
- Customer Attention: Through personal selling, it is easy to get the attention of customers as there is a face-to-face interaction between the salesman and customers.
- Minimum Wastage of Efforts: As compared to other methods of promotion in personal selling the wastage of effort is minimal.
- Relationship: Personal selling helps to create lasting relationships between customers and salespersons which helps in increasing sales.
| Importance to Customers | Importance to Society |
| 1) Helps in Identifying Needs: Salesmen help customers to discover their needs and wants and they also help to know how these can be satisfied. | 1) Employment Opportunities: Unemployed youth can work as salesmen and earn their livelihood. |
| 2) Expert Advice: Customers can get expert advice and guidance in purchasing various goods and services. | 2) Career Opportunities: Personal selling offers an attractive career with job satisfaction and security. |
| 3) Induces Customers: Personal selling induces customers to buy products for satisfying their needs. | 3) Salespersons move from one place to another, this promotes the travel and tourism industry. |
Difference between Advertising and Personal Selling
| Basis | Advertising | Personal Selling |
| Form | It is an impersonal form of communication. | It is a personal form of communication. |
| Flexibility | Less flexible as standardized messages are used. | Flexible messages can be changed according to the type of customers. |
| Reach | It reaches the masses. | Only a limited number of customers can be contacted. |
| Cost | The cost per person is less as it covers a large number of people. | The cost per person is high as a time-limited member can be contacted. |
| Coverage | Cover the market in a short time. | Takes a long time to cover the market. |
| Use of mass media | Makes use of mass media such as T.V., Radio, and, Newspaper. | Do not make use of mass media. |
| Feedback | No direct feedback can be obtained. | Direct feedback can be collected by a salesman. |
| Useful for | More useful for standardized and customer products. | More useful for industrial and customized products. |
Public Relations
Public relations involve a variety of programs designed to promote or protect a company’s image and its individual products in the eyes of the public.
Public relations means maintaining public relations with the public. By maintaining public relations, companies create goodwill. The public does not mean only customers, but it includes shareholders, suppliers, intermediaries, etc.
Role of Public Relations
| Press Relations | The public relations department is in contact with the media to present true facts and a correct picture of the company. |
| Product Publicity | The public relations departments make special efforts to publicize the new products. |
| Counselling | The public relations department advises the management on general issues which affect the public. |
| Lobbying | The public relations department tries to maintain a healthy relationship with the association of commerce and industry. |
Methods and Tools of Public Relations
| News | Sometimes companies get involved in certain kinds of activities or make such policies so that they get some positive coverage in the news. |
| Speeches | The speeches given by the leaders of corporate sectors influence various members of the public like banks, shareholders, etc. |
| Events | Events refer to organizing press conferences, multimedia presentations, matches, stage shows, etc. |
| Written Materials | Sometimes written materials such as balance sheets, annual reports, etc. are circulated to various parties to improve and maintain the public image of the company. |
| Public Service Activities | Big business houses often associate themselves with various social service projects such as women’s welfare programs, running schools, colleges, etc. |
Conclusion
These were the marketing management class 12 notes. This is the biggest chapter in class 12 Business Studies. But at the time same time, it is one of the easiest chapters to understand as we can relate to the topics of it in our daily lives.
If you have any doubts regarding this chapter or if think something is wrong in the above notes, you can write that in the comment section. We’ll try to get a solution of it as soon as soon as possible.
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Nice notes