BADALA CLASSES CLASS-XII CBSE

CLASS-XII
BUSINESS STUDIES
MARKETING MANAGEMENT
Market:-
In a traditional sense market refers to the place where buyers and sellers meet together for exchange of
goods and services.
In the modern marketing sense market is considered with anticipation of consumer’s req. manufacturing of
goods & services according to customers requirement and designing and selling satisfaction to the
consumers rather than simply selling goods and services. So, it is customer market.
Customer :- It refers to the people that seek satisfaction of their needs and wants by buying goods or services
to get their needs and wants satisfied.
Need :- It is the basic necessity of life.
Wants :- It is customer desire to fulfill the need.

What can be marketed:-

In the context of marketing, anything that has a value to the buyer can be a 'product'. Apart from a product,
or tangible goods, anything of value to public tan be marketed, viz:
(i) Physical products Cell phones, cars, air conditioners, stationery, books, etc.
(ii) Services Insurance, health care, financial services, banking, tourism, etc.
(iii) Ideas Polio vaccination, Helpage India, blood. donation, family planning, etc.
(iv) Persons Actors, actresses, politicians, religious, preachers, corporate leaders, etc.
(v) Places 'Malaysia'- truly Asia, 'Udaipur'-city of lakes, Go Goa, etc.
(vi) Experiences Lunch with a celebrity, balloon riding. experience, mountaineering, etc.
(vii) Properties Ownership of real estates, ownership of financial assets, etc.
(viii) Information Market Information, Technology Information, Research Information, etc.
(ix) Organizations Hindustan Lever Limited, Dabur, Philips, Ranbaxy, etc

Who is a Marketer:-
Marketer refers to a person who takes more active part in the process of exchange. Usually, it is the seller who
is more active in the exchange process, as he analyses the needs, develops a product and persuades the buyers
to buy the product. But sometimes, it is the buyer who puts in more efforts in the marketing process.

Features of Marketing:-
Marketing is the social process by which individuals or groups obtained what they need and want through
creating offering and exchanging products/services with other.
1. Need and want: All the activities in the market are carried out with the main motive of satisfying need &
want of customer and organization.
2.Creating & Market offering:-It means offering a product by specifying its features, shape, size. A good
market offer should keep in mind about the satisfaction of customer.
3.Customer Value:- A product is purchased only when it is perceived to be giving greatest benefit or
value for money to the buyers. Therefore, the job of a marketer is to add value to the product, so that the
customers prefer it in relation to the competing products present in the market.
4.Exchange Mechanism:- Exchange refers to the process through which two or more parties come
together to obtain the desired product or service from someone, by giving something in return.
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Following conditions must be satisfied for any exchange to take place:
(i) Presence of atleast two parties, viz the buyer and the seller.
(ii) Each party should be capable of offering something of value to each other.
(iii) Each party should be able to communicate and deliver the goods.
(iv) Each party should have the freedom to accept or reject the offer.
(v) Each party should be willing to enter into a transaction with each other.

Marketing Management:-
In General, marketing management means managing various marketing functions.
‘Marketing management is the process of planning organsing directing, controlling the activities related
to marketing of products to satisfy customers needs and achieve organizational objectives.’
Features of Marketing Management:-
1. Choosing target Market:- It refers to identification of customers for whom goods and securities are
produced such as children, woman, gents etc.
2. of Demand:-Marketing is successful only when company is able to create demand for its product
maintained its ideous maintain market share as well as grow customers as well as grow customers for
its product.
3. Exchange mechanism:- In exchange customers pay money and in return they take product or services
its satisfy the needs and wants.

Marketing Management Philosophies:-

1. Production Concept:- It Emphasizes on maximization of profit by producing at large scale in order to
min cost of production. According to this concept consumer favor those product which are widely
available and at an affordable price.
Main focus: Large scale production to decrease the cost.
2. Product Concept:- It emphasis on quality of product, regular improvement and developing new
features in the product for customer satisfaction.
▪ MF: Good quality, Features in Product.
3. Selling Concept:- It emphasis on adopting aggressive promotional and selling efforts to increase
the sales of product. It includes advertising, sales promotion, personal selling to increase the sales
of the product.
▪ MF: The sale of product using aggressive promotional techniques.
4. Marketing Concept:- This concept says that products should be designed and produced keeping in mind
the needs of customers and try to satisfy the needs better than the competitors.
▪ MF: Customer Satisfaction
5. Societal Concept:- It is the combination of marketing concept and social responsibilities of a Business
Enterprise. It emphasis on customer satisfaction along with long term welfare of the society. Such as
protection of environment forest, natural resources, pollution control as well as attention towards social
and ethical aspects of marketing.
▪ MF: Customer satisfaction within ethical and economical boundaries of our society.

Functions of Marketing Management:-

1. Gathering & Analyzing Market info:- It is concerned with conducting market research with the objective
of identifying the needs of the customer, for marketing of goods & services.
2. Market Planning:- It is concerned with developing appropriate plan for the efficient achievement of
marketing objectives of an organization.
3. Product designing & development:- Product designing means making product attractive to the target
customers. A good design can improve to performance of the product.

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Development refers improvement in the features of product. Such as price, shape, quality etc.
4. Standardisation and Grading:- Standardisation refers to the process of setting standards regarding
quality, price, packaging, technology, equipment, etc for the production of a product. This ensures
uniformity and consistency in output and reduces the need for inspection, testing and evaluation of the
products.
Grading is the process of classifying the products into different groups, on the basis of quality, size,
features, etc.It is necessary for such goods which are not produced according to predetermined
specifications, such as agricultural goods. Grading ensures that the goods belong to a particular quality
and helps the marketer to fix prices easily.
5. Packaging & Labeling:- Packaging refers to designing appropriate packets containers of a product. It
provides protection during transportation warehousing and consumption as well as to market it
convenient for customer to handle it.
Labeling refers to info part of packaging such as grade, price, quantity date of manufacturing,
date of expiry, name & address of manufacturer, direction of use etc.
6. Branding:-Branding means giving a special name to the production. It refers to providing specific name,
symbols, design, etc to the product through which it can be easily identified by the customers
7. Customers support service:- It refers to after sales service such as handling customer complaint
providing credit facilities, maintenance services etc. These services add customer satisfaction.
8. Pricing of Product:- Price refers to the amount of money the customer has to pay to obtain a product
demand of a product is related with price of a product. Therefore price of a product should be reasonable
and stable.
9. Promotion:-It refers to communication of superior values of product to the customer as well as
persuading customer to buy a particular product. There are four methods of promotion.
Advertising → Personal Selling
Public Relation → Sales Promotion
10. Physical Distribution :- It is the duty of market manager to make plan regarding distribution of
products or services. It includes decisions like choice of channel and place of distribution.
11. Transportation:- It helps in physical movement of goods from the place of production to the place of
consumption. It creates place utility to the goods by providing it to the place where it is req. for
consumption etc.
12. Storage Warehousing:- It creates time utility as there is time gap between production and
consumption. It is necessary to keep the goods safe during this time. It also maintains smooth flow of
goods in the market it order to ensure regular supplies.
Role of Marketing:-
All marketing organizations help the individual consumers in raising the standard of living by making the
Products available to them for satisfying their wants. It also plays an important role in a firm and in the
economy, as explained below:
Role in a Firm:- Marketing emphasises customer satisfaction as the key to survival and growth of an
organisation. It helps to focus the activities of the organisation on fulfilling the needs and wants of consumers,
by designing the product according to them. This helps to develop brand loyalty and bring prosperity for the
firm.
Role in the Economy:- Marketing acts as a catalyst in economic development of a country- helps in raising
living standard of the people, Marketing inspires people to undertake various activities and to set-up
enterprises for producing goods that are demanded in the market, and ensure smooth flow of goods through
efficient distribution system.
It helps to establish linkages between the business, accelerating economic activity, leading to higher incomes,
more consumption, increased savings and investment.

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Concept of Marketing Mix:-
Marketing management decisions are based on a number of controllable and non-controllable factors.
Controllable factors are those which can be influenced at the level of the firm. e.g. price of the product,
packaging decision, physical distribution, etc.
However, there are certain factors which are beyond the control of the firm. These are called non-
controllable factors or environmental factors. e.g. rate of inflation, credit policy of banks, competition, etc.
Therefore, controllable variables become marketing tools, which are constantly shaped and reshaped by
marketing managers to achieve marketing objectives. The combination of different variables chosen by a
firm to prepare its market offering, is called Marketing Mix.
Meaning of Marketing Mix:- Marketing is a combination of four elements— product, price, promotion
and place. Marketing mix refers to the tools or ingredients, which the marketer mixes in order to interact
with a Particular market.
Elements of Marketing Mix:-

The marketing mix consists of various elements, which are classified into four categories, also known
as '4 Ps of marketing'. They are:-
1. Product:- Product means goods or services or 'anything of value' which is offered to the market for
sale. It is a mixture of tangible and intangible attributes, which are capable of being exchanged
for a value.
From the customer's point of view, a product is a bundle of utility as it provides three types of
benefits to the consumers, viz:
(i) Functional benefits.
(ii) Psychological benefits.
(iii) Social benefits.
It also includes the extended product or what is offered to the customer as after sales services,
handling complaints, credit services, etc.
The product mix refers to important decisions related to the product such as quality of product,
design of product, packaging, etc.
2. Price:- Price of a product refers to the amount of money that the customer has to pay in the market to
obtain the product. The marketers have to take a number of decisions regarding price level, pricing
strategy, pricing objectives, discounts, etc, together known as price mix.
3. Place :- Place or physical distribution covers all the activities required to physically move the goods
from manufacturers to customers.
The two major decision areas under this function are:
(i) Decision regarding channels of distribution.
(ii) Physical movement of goods from the place where it is produced to the place of consumption.
Thus, place mix involves a number of decisions relating to inventory control, intermediaries,
negotiation, storage, warehousing, transportation, etc.
4. Promotion:- Promotion refers to the process of informing the customers about the product and
then persuading them to buy it. Most marketing firms use a combination of advertising, sales
promotion, personal selling, and public relations to promote their products. Therefore, the combination
of any of these techniques to attain the marketing objectives is called promotion mix.

Product:- As explained earlier, product means goods or services or anything of value'

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which is offered to the market for sale.

1. Consumer Products:- Products which are purchased by the ultimate consumers, for the direct
satisfaction of their needs and wants, are consumer products. They are classified on the basis of two
important factors:
(a) Shopping efforts involved.
(b) Durability of products.
On the basis of shopping efforts involved, we can classify consumer goods into three categories, viz:
Convenience products Shopping products Specialty products
The main features of The main features of The main features of specialty
convenience products are: shopping products are: products are:
(i) They are usually These are purchased after These are purchased at a few
standardized goods, which a detailed comparison of locations involving a lot of time
are purchased at convenient various products, which and effort of the consumer.
locations, with least time involves a lot of time and
and efforts. efforts of consumer.
(ii) Their unit price and Their unit price and profit Their unit price and profit
profit margin is low. margin is usually high. margin is usually very high.

(iii) They have a regular and
continuous demand.
(iv) Impulsive buying
(v) Competition in these
products is usually high
(vii) Sales promotion
techniques help to promote
the sale of such products.
(viii) e.g. stationery,
medicines, newspapers,
books, etc.
They are durable in nature
and survive many uses,
thus no regular demand.
Purchase of these goods
are pre-planned.
Competition is not so high
as in case of convenience
products
Salesmen and retailers
help to promote their sales
e.g. jewellery furniture,
electronic goods, etc.
Demand for these products
remains low.
Special efforts for buying. These
are available for sale at a few
places only.
Almost no competition
Aggressive promotion is
required to generate sales of
these products and after sales
services are an important part of
the product promotion.
e.g. rare collection of art, a hair
cutting saloon or a dress
designer.

On the basis of durability, we cart classify consumer goods into three categories, viz:
(i) Non-durable Products The main features of non-durable products are:
(a) These goods are consumed in a single act of consumption.
(b) They are available at convenient location.
(c) Their unit price and profit margin is low.
(d) They need to be heavily advertised.
(e) e.g. cosmetics, stationery, petrol, milk, etc.
(ii) Durable Products The main features of durable products are:
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(a) These goods last for a long period of time and survive many uses.
(b) They are usually available in central markets.
(c) Their unit price and profit margin is high.
(d) They require greater personal selling efforts, guarantees and after sales service.
(e) e.g. furniture, jewellery, electronics, etc.
(iii) Services The main features of services are:
(a) They are intangible in nature as they have no physical appearance, colour, shape or size.
(b) It is inseparable from its source. Therefore, it cannot be stored.
(c) They are highly variable and differ from one service provider to another.
(d) They provide social and psychological benefits to their users.
2. Industrial Products:-
The products which are used as inputs for producing other goods, are called industrial goods. e.g. raw
materials, engines, machines, tools, etc. These products are used as inputs for producing other goods
and are demanded by manufacturers, transport agencies, banks, mining companies and other producers.
The important characteristics of industrial products are:
(i) Number of buyers: As compared to consumer products, number of buyers of industrial products
are limited.
(ii) Channel levels: Because of limited number of buyers, concentrated markets and bulky products,
direct or shorter channels of distribution are used.
(iii) Geographic concentration: Usually, industries are located in a particular region or location.
Therefore, market of industrial goods is highly concentrated.
(iv) Derived demand: The demand for industrial products is dependent upon the demand of
consumer goods that they help to produce. This is called derived demand.
(v) Technical consideration: While purchasing industrial products, technical consideration assumes
great importance.
(vi) Reciprocal buying: It refers to exchange of products by two industries with each other, which is
done many a times in case of industrial goods.
(vii) Leasing out: Leasing refers to the use of an industrial product, without purchasing it, by paying a
nominal periodic rent, called lease rental.
Classification of Industrial Goods

Materials and Parts Capital items Supplies and business services

These goods become a part of the
manufactured product completely.
They are of two types:
(a) Raw materials such as
cotton, sugarcane,
oilseeds, etc.
(b) Manufactured parts and materials
such as tyre, electric bulb, battery,
etc and glass, iron, plastic
respectively.
These goods are used in the
production of finished goods.
They are of two types:
(a) Installations such as
elevators, plant, mainframe
computers, etc.
(b) Equipments such as hand
tools, fax machines, personal
computers, etc.
These goods last for a short
duration and help in developing
finished product. They are of two
types:
(a) Maintenance and repair items
such as paint, nails, etc.
(b) Operating supplies Such as
lubricants, stationery, writing
papers, etc.

Product Mix
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A product is not just, a physical tangible object. it is rather a 'bundle of services' associated with the
utilization of that product. Apart from the physical product/service, product mix consists of:

Branding:-
The process of giving a name, sign, symbol to a product is called branding. It helps in identifying and
distinguishing a product. The terms related to branding are:
(a) Brand:- It refers to a name, term symbol, design all some combination of them used to
identify the product of one manufacturer called brand.
(b) Brand name:- It is a verbal component of a brand which can be spoken by customer eg. Dettol,
surf.
(c) Brand Mark:- It refers to a symbol design or colour which helps in recognisation of a product or
service called brand mark. Eg. Maharaja sign of Air India, Red & Blue ball of Pepsi.
(d) Trade mark:- A brand or symbol which is registered under Indian trade, mark act, called trade
mark of company. Registration provides legal protection to a brand or a symbol.

Advantages of branding:-
1. To manufacturers:-
▪ Product differentiation with branding marketer can differentiate his product from the
competitors product.
▪ Advertising and display programmes through branding products can be easily advertised and
promoted, which helps to increase sales and awareness.
▪ Different Prices:- with established brand name firm can easily charge high price for its product as
compared to competitor product.
▪ Easy in introduction of a new product:- The companies which use companies name as brand
name them it become very easy to make it popular and even easy sale.

2. To customers:-
▪ Identification of a Product:- Branding help customer to identify the product of a particular
manufactures and reduces requirement of inspection.
▪ Ensures Quality:- Branding ensures particular level of product and helps in building the
confidence of the customers.
▪ Status Symbol:- Customer feel proud of using branded products as these products are of good
quality and ensures consumers satisfaction.
Characteristics of a Good Brand Name:-
The following points must be considered while deciding a brand name for a product:
(i) Short and easy A brand name should be short, easy to pronounce, spell, recognize and remember. e.g.
Vim, Ponds, Lux, etc.
(ii) Suggestive A brand should suggest the product's quality or benefit. e.g. Ujala, Fair and Lovely, etc.
(iii) Distinct A brand name should be distinct from the other brands present in the market. e.g. Liril,
Sprite, Raymonds, etc.
(iv) Adaptable to packaging A brand name should be adaptable to packing and labeling requirements in
different media and languages.
(v) Versatile A brand name should be versatile enough to include other products under it.
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(vi) Capable of registration A brand name should be capable of being registered and legally protected.
(vii) Staying power A brand name should have long-lasting staying power and should not get out of
date.

Packaging:- It refers to the act of designing and producing the container or wrapper of a product. It plays
an imp. Role in protecting the goods during transportation and warehousing as well as in marketing the
product successfully.
Levels of packaging:- It refers to the products immediate container.
▪ Primary packaging:- It is kept till the products are used by customers. Eg. Toothpaste etc.
▪ Secondary packaging: It is the additional layer of packaging. Which is provided to the product for its
safety. Eg. Cardboard box for shaving cream or toothpaste etc.
▪ Transportation Packaging:- It refers to further packaging concepts which are necessary for storage,
for identification & for transportation eg. Cardboard or containers. Containing 100 units of toothpaste
or chocolates or soft drinks etc.
Important of Packaging:
• Raising standards of health:-Because of increase in the stands of living of people in the country, they have
started demanding packed goods as they are no chances of adulteration.
• Self Service outlets:-packaging acts as a ‘silent salesman’ in self-service outlets b providing attractive and
colorful packing of the product to attract attention of consumers.
• Innovational opportunities:- Innovation packaging has increased the scope of marketing of products. Such
as perishable items can be stored 4-5 days without refrigeration, Tetra pack well designed plastic
containers for oil and ghee etc.
• Product Differentiation:-Packaging helps customers to differentiate between goods on the bases of quality
i.e. by looking at the packet of the product that can be easily identified by customer.
Functions of Packaging:-
▪ Product Identifications:- Packaging helps customers in identifying the product of particulars
manufactures.
▪ Productive Protection:- Packaging helps in protecting the product spoilage, brakeage, damage etc
transportation, warehousing and during the use of the product.
▪ Product Convince:- The size and shape of the package makes it customer to open to handle and to use
the product.
▪ Product Promotion:- In the competitive market packaging is also used as a tool of sales promotion
attractive containers and packets of different colors attract the attention of customer at the point of
purchase.

Labeling:- It refers to designing and putting labels on each packet indicating some information about the
product as well as the info about its manufacturer. It provides info. Such as address of manufacture, quality,
price, weight, direction for use.
Functions of Labeling:-
• Describe the product & specify its contents:- The most important function of labeling is to describe the
product, its uses, direction of use, to specify its contents etc.
• Identification of product or brand:- Label helps customer to identify the product and its brand.
• Grading of the product:- Label also help manufacturers to grade their products in different categories on
the basis of their features and quality.
• Helps in Promotion of the Product:- Labeling also help in promotion of product as specially designed
levels attract the attention and gives the reasons to purchase a product such as 40 extra, save Rs. 15 etc.
• Providing info req. by Law:- Labels are also used to provide info which is req. by law such as stationery
warning on the Packets of Cigrates and Pan Masala.
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Price:-
It may be defined as the amount of money paid by the customer in consideration of purchase of product
or service. It plays an important role in marketing of goods and services and price of a product or service
regulate its demand in the competition market. It refers to important decision related to fixing of a price
of a commodity.
Factors affecting Price of Product:-
1. Product Cost:- It is a primary base for fixing the price of a products or service. It includes cost of
production, selling etc. It also refers to minimum level price or floor level price.
2. The Utility and Demand:-It is necessary to anticipate the utility and demand of a product, while
fixing the price, as if a product is offering higher utility, one can easily charge high price from the
customer. Whereas, if utility is low, one cannot charge high price for such products. On the other
hand, if the demand is elastic, price should be set at a lower level and if the demand is less elastic or
inelastic price can be set at a higher level.
3. Competition in the Market:- Competitor price and their reaction in the market also influence the
price of the product. In free competitive market, prices of product will be low where as in
monopoly markets the prices will be high.
4. Govt & Legal regulations:- To control unfair trade practices, prices of some essential commodities
are regulated by govt. of India such as petrol, diesel, drugs, LPG etc.
5. Pricing objectives:- It refers to short term profit maximization or long term profit maximization
objective i.e. in case of short term high prices are charged whereas in long term stable or low prices
are charged. Apart from this the firms other pricing objectives may be:
a) Obtaining market share leadership:- When companies try to maintain market shares & leadership
in the market them prices of products are stable and reasonable.
b) Surviving in Competitive Market:- In highly competitive market, prices of commodity are kept
at low.
c) Attaining Product Quality Leadership:- Companies which boost up there quality and ensure
continuous improvement in quality, keep high prices for their product.
6. Marketing methods used:- The price of a product is also influence by the elements of marketing
such as quantity of salesman emphasized, channels of distribution, advertising methods used sales
promotion efforts credit facilities etc.

Place Mix:-
It refers to imp. Decisions related to physical distribution of goods and services. It is concerned with
making the goods and services available at the right time and the right place. Place mix includes:
1. Channels of distribution(COD)
2. Physical Movement of goods.

COD: Channels of distribution are the firms and individuals choice who help in transferring the goods from
the place of manufacturing to the place of consumption. In other words it refers to team of merchants,
agents and business institution which is called a network of marketing.
Functions of Channels of Distribution
1. Sorting: It refers to the process of sorting the product into homogeneous groups on the
basis of size, quality, features and price.
2. Accumulation: It refers to the process of accumulation of goods into larger homogeneous stocks. This
helps to maintain a continuous flow of supply.
3. Allocation: It involves breaking homogeneous stocks into smaller, marketable lots. This helps in making
sales easily according to different requirements of different buyers.

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4. Assorting: It refers to the process of combining various goods of the same line of product, for sale to
customers. Desired combinations of products are made to fulfill varied needs of customers, such as a
cricket kit containing a bat, a ball, gloves, wickets, Stumps, helmet and leg guards.
5. Product Promotion: Middlemen helps in the promotion of product organising demonstrations, displays,
contest, promotion, events, etc. This helps in increasing the sale of products.
6. Negotiation: Intermediaries usually discuss and decide the terms and conditions of sale, by negotiating
the price; quality, guarantee, terms and conditions of delivery and payment, etc.
7. Risk-taking: Middlemen usually bear risks on account of price and demand fluctuations, spoilage,
destruction, etc, during the process of exchange.
Types of COD: -
These are broadly classified into few channels.
(a) Direct/short/zero level channel:- In this firms sale there product directly to the customer
without any agent or middleman.
Manufacturer → Consumer
Common type of direct channels are: Direct sale by appointing salesman, through order house, etc.

(b) Indirect/Long Channel:- It is classified into their channels.

▪ One level channel: In this manufacturer transfer goods to retailer or dealer. They sell them to
consumers.
Manufacturer → Retailer → Consumer
▪ Two level channel:- It is traditional and most commonly used channel in this manufacturer transfer
goods to wholesaler and wholesaler goods transfer to retailer and retailers sell goods to consumer.
Manufacturer → Wholesaler → Retailer → Consumer
▪ There level channel:- It help manufacturer to cover wide market for their product as customer are
scattered over large geographical area it involves manufacturers agents, wholesalers, retailers and
consumer.
Manufacturer → Agent → Wholesaler → Retailer → Consumer

Physical Distribution:-
The physical handling and movement of goods from place of production to the place of distribution, is
called physical distribution. It covers all the activities required to physically move the goods from the
manufacturers to the customers.

Components or element of physical distribution: -

1. Order Processing:- The first step in the process of physical distribution is order processing. Order
2. processing flow from customer to manufactures whereas product flows from manufactures to
customers.
3. Transportation:- It creates place utility to the goods as it helps in transfer of raw materials to the
factories or industries and finished product from industries to market for final consumption. It is also
known as physical movements of goods.
4. Warehousing:-It creates time utility to the goods, whatever is produced is not sold off immediately.
Therefore, every, company is requires storage.
5. Inventory control: It refers to maintenance of stock of goods it need to be maintained so that it can be
supplied whenever demanded. A correct estimate of demand helps to determine inventory req. at min.
cost.

Promotion Mix:- It refers to the use of communication with potential customer with following objective.
▪ Informing superiority of the product and of product.

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▪ To persuade productive customers to the product.
Following are the tools or element of Promotion:-
(1) Advertising
(2) Personal selling
(3) Sales Promotion
(4) Company Relation
Advertising:- It is most commonly used tool of promotion. It is an impersonal form of communication,
which is paid for to market by the marketer. The common medias are TV, Radio, Newspaper.
Features Role:-
1. Paid form:- The sponsor has to pay for advertising he has to bear a cost to communicates with
customers.
2. Impersonality:- There is no face to face contact or dialogue between customer and advertiser.
3. Identified Sponsor:- Advertisement is a given by identified company or firm or an individual.
Advantages of Advertising:-
1. Mass Reach:- Advertisement can cover a large market. It reaches to a large no. of people over vast
geographical area at the same time.
2. Exchanging customers: Advertising creates awareness about the product, about their superior values
etc.
3. Impressiveness:- With the technology and development of art, advertisement has become most
powerful medium of communication to promote goods and service.
4. Economy:-It is always felt that advertisement increases the case of product but it is considered
economical as compared to other promotional technological.
Limitations of Advertising:
1. Less Forceful:- It is an impersonal form of communication. It is less forceful, as there is no
compulsion on the prospects to pay attention to the message.
2. Lack of Feedback:- It is difficult to evaluate the impact of advertising message as there is no
immediate and accurate feedback mechanism available.
3. Inflexibility:- It is not flexible, as the message once fixed, can't be altered again and again as per the
needs of customers.
4. Low Effectiveness:- Large number of advertisements has created a difficulty in making the people
pay attention to the message.
Objections to Advertising:
Though advertising is the most frequently medium of promotion, it attracts a lot of criticism as social waste,
multiplying needs of consumers, developing materialism, etc. But the proponents discourage such opinions.
Thus, it is important to examine these criticisms and see how far they are true.
1. Adds to Cost:- The opponents of advertising argue that advertising unnecessarily adds to cost of product,
which passes on to the buyers in the form of high price. However, on the other hand, proponents claim
that advertising helps to increase the demand of the product.
An increase in production leads to large scale production which ultimately helps in reducing cost due to
economies of scale and thus, the price of the product.
2. Undermines Social values:- Advertising causes discontentment among the customers and promote
materialism, as they come to know about newer and better products available in the market.
But, the objections are not entirely true because advertisements help the buyers by informing them about
the new products over the existing ones. If they are not informed, they may be using inefficient products.
3. Confuses the Buyers:- The opponents say that so many advertisements make similar claims and the
buyer gets confused as to which one is true and can be relied upon. It may create a state of confusion as
to which product he should buy in the market.

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However, the criticisms are not true as we know that consumers are rational human beings, who can take
their decisions considering various aspects of a product. He can use his wisdom along with information
provided by advertisements to make the right choice of purchase.
4. Encourages Sale of Inferior Goods:- Opponents of advertising claim that it does not distinguish between
superior and inferior goods and distinguish people to purchase even the inferior goods.
However, we also know that no good is superior or inferior. The level of quality depends upon the
economic status of the target customer. Advertisements promote all goods, customers may pick them
according to their requirements.
5. Some Advertisements are in Bad Taste:- Some advertisements are in bad taste and show something
which is not approved by the society. They may show something objectionable and may cause distortion
of certain relationships. Definitely, advertisements should avoid use of objectionable words, graphics,
photos, etc, which may have a bad effect on the society.

Personal Selling:
It refers to oral and face to face interaction between salesperson and one or more prospective
customers. It is personal form of communication therefore converts latest demand into effective
demand.
Features of Personal Selling
1. Personal Form: It involves a direct face-to-face communication between the seller and the buyer.
2. Development of Relationship: It helps to develop a personal, long-lasting relationship between the
salesman and the customer.
3. Flexible: The salesman can adjust/change his message according to the needs of the customers.
4. Direct Feedback: Since, there is a direct face-to-face contact between the buyer and seller, it provides
immediate feedback to the salesman.
Merits of Personal Selling
1. Flexibility: The salesman can adjust/change his message according to the needs of thecustomers.
2. Direct feedback: Since, there is a direct face-to-face contact between the buyer and seller, it provides
immediate feedback to the salesman.
3. Minimum wastage: There is minimum wastage of efforts as the company decides the target customer
before making any contact with them.
Role of Personal Selling
Personal selling plays an important role in marketing of goods by serving businessmen, customers and
society in the following ways:
1. Importance to Businessmen:
(i) Effective promotional tool Personal selling is an effective tool to increase the sale ofproduct.
Salesman explain the merits of products to customers, thereby inducing them to buy the product.
(ii) Flexible tool Personal selling efforts can be changed according to the type of customer, that the
salesmen are attending. They nay change the offer in varying purchase situations.
(iii) Minimum wastage of efforts As compared to other methods of promotion, in personal selling, the
wastage of efforts is minimum.
(iv) Consumer attention: Through personal selling, it is easy to get the attention of customer as there is
a face to face interaction between salesman and customer.
(v) Lasting relationship Personal selling helps to develop a personal, long-lasting relationship
between the salesman and the customer. This helps to increase sales in the long-run.
(vi) Personal rapport Personal rapport with customers increases the competitive strength ofthe
business.
(vii) Role in introduction stage Personal selling plays an important role in introducing the new product
and persuading the customers to buy it.

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(viii) Link with customers Salesman play persuasive role, service role and informative role, thereby
linking the firm to the customers.
2. Importance to Customers
(i) Helps In identifying needs Salesmen help the customers to discover their needs and wants and they also
help customers to know how these needs and wants can be satisfied.
(ii) Provides latest market information In personal selling, salesmen provide detailed information regarding
the new products available in market, uses of those products, etc.
(iii)Expert advice Customers can get expert advice and guidance in purchasing various goods and services.
(iv) Induces customers Personal selling induces customers to buy products for satisfying their needs.
3. Importance to Society
(i) Converts latest demand into effective demand Personal selling creates effective demand, which results in
increasing sale and generate more income. With more income, there will be more products and services,
which in turn bring economic growth.
(ii) Employment opportunities Personal selling offers a wide scope of employment and income generation to
unemployed youth.
(iii) Career opportunities Personal selling provides attractive career opportunities to young men and women.
(iv) Mobility of sales people Mobility of sales people promotes travel and tourism in the country.
(v) Product standardisation It ensures product standardisation and uniformity in consumption pattern in a
diverse society.

Basic Advertising Personal selling

Basis It is an impersonal form of
communication.
Reach It reaches masses, i.e. a large
number of people can be
approached at the same time.
Cost In advertising, the cost per person
of reaching is very low.
Medium It makes use of mass media such
as TV, radio, newspaper, etc.
Flexibility It is inflexible as the message
delivered cannot be adjusted to the
buyer’s need.
Time It can cover wide market in short
time.
Type of message Message of the advertiser is
standardized.
Feedback It lacks direct feedback from the
customers
Role It helps in creating interest of
consumer in the firm’s product.
Utility It is useful to ultimate consumers
by creating awareness about
product.
It is a personal form of
communication.
Only a limited number of people can
be contacted.
In this case, the cost per person is
very high.
It makes use of salesperson to
contract the prospective buyer.
It is flexible as the sales presentation
can be adjusted to fit customers’
needs.
It takes a lot of time to cover the
entire market.
Message of the salesman is adjusted
according to the customer’s needs.
It provides direct and immediate
feedback from the customers.
It helps in the process of decision-
making by a consumer.
It is more useful to intermediaries like
traders and retailers.

Sales-Promotion
Sales promotion refers to all the immediate activities, which are undertaken for the purpose of

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increasing immediate sales. These activities mainly include lowering the price, distributing the
coupons,' conducting contests, giving away of gifts, etc.
Sales promotion refers to short-term incentives to boost sales in a short period and it supplements other
promotional efforts such as advertising, personal selling and publicity, aimed at stimulating market
demand for products. Companies use sales promotion tools designed specifically to promote sales
among different groups as:
(i) Customers Through free samples, discounts and contests.
(ii) Traders or Middlemen Through cooperative advertising, dealer discounts, incentives and contests.
(iii) Salespersons Through bonus, special offers and contests.
Merits of Sales Promotion
1. Attention value It helps to attract the attention of large mass of people in a short time.
2. Useful in new product launch Sales promotion techniques such as sampling and product combination
help in easy introduction of new product in the market.
3. Synergy in total promotional efforts Sales promotion techniques add to the overall effectiveness of the
other promotional efforts of the firm.
Limitations of Sales Promotion
1. Reflects crisis Frequent use of sales promotion techniques may create an impression that the company is
unable to generate any sale.
2. Spoils product image Excessive use of sales promotion may spoil the image of the product.

Public Relation:-
It is an important tools of marketing in simple words public relation means maintaining relation with public.
The word public means the people around the organization it does not mean only customer but it includes
share holder, suppliers, intermediaries’ customers etc. By maintaining it, companies creates it goodwill it
evaluates public attitudes, identify the policies and procedure of an organization with public interest to earn
public understanding and acceptance. The relation is maintained through news, speeches by corporate
leaders, organizing events like sport events, seminars etc.
Definitions
'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;
Thus, public relations involve a variety of programmes designed to promote or protect a company s image
and its individual products in the eyes of the public.
Ways/Methods/Tools and Techniques of Public Relation
(i) Newsletters print or e-mailed newsletters These are the important and most attractive way to promote
the business and build public relations.
(ii) Social media Using social networking sites such as facebook, Twitter, you can easily build up the
relations with public.
(iii)Press release It is the most common medium to interact with general public.
(iv) Special event by sponsoring the social events, one can easily build up the relation with public and use
such events in future for publicity.

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