CBSE Class 12 Business Studies - Marketing 

The concept of marketing is becoming broader day-by-day.

Marketing is an important functional area of the management of an organisation.

There are three terms use -

1. Market-  the term ‘market’ refers to the place where buyers and sellers gather to enter into transactions involving the exchange of goods and services.

But in modern marketing sense, the term market has a broader meaning. It refers to a set of actual and potential buyers of a product or service

Classification of markets

Product i.e cotton market, gold market etc.

Geographical location, I.e national market and international market

Type of buyers, I.e consumer market and industrial market.

Quantity of goods transacted, I.e retail market and wholesale market.

2. Marketing- marketing is the process of goods and services for money or for something of value to them.

Marketing is a social process through which individual fulfil their needs and wants, by creating offerings and providing value to others through exchange of goods and services.

Marketing starts before the production process and continue even after the goods have been sold .


1. Needs and wants - marketing involves satisfying needs and wants of the target customer and developing goods and services that satisfy such needs and wants. Needs are the basic human requirements such as food , clothing , shelter to survive.while wants are demands for specific products . Needs give rise to wants.

For example- a person needs food for survival  but when he/she demands pizza or burger , his/her need becomes want.

2. Creating a market offering- a good market offer is developed on the basis of need and preference of potential buyers.

For example- a company developing an offering of a mobile phone for a college going student should look at the following features

1.A phone with good megapixel camera,.

2.With latest design and up-to-date software.

3.With reasonable price.

3. Customer value - one of the purpose of marketing is to generate profits even after the company earns profits. Marketers job is to add value to the product so that people prefer it more than competing products and decide to purchase it.

4. Exchange mechanism- marketing involves exchange of goods and services for money or for something value to them. Exchange can take place-

  1. Involvement of two or more parties.
  2. Each party should be capable of offering something of value.
  3. Each party should have the ability to communicate and deliver the product or services.
  4. Each party should have freedom to acceptor reject the other party’s offer.
  5. The parties should be willing to enter into transactions with each other.

Marketing not only applies to business organisations . Rather all the marketing activities are equally relevant to non-profit organisation such as hospitals, schools, sports clubs. With the help of marketing government  is able to launch its scheme like, Swatch Bharat Abhiyaan.


All the products which are of some value can be marketed. The meaning of product  is not confined to physical objects, such as motor cycle, biscuit, bulb and pencil but also refers to other things of value such as services, ideas, places, etc., that can be offered to the potential buyers for their use.

For Example-

Physical products like tv, phones, toothpaste.

Services like, insurance, banking etc

Place like visit gods own country- Kerala, Udaipur- the city of lakes.

3. Marketer- it refers to any person or organisation that provides goods or services to satisfy the needs of the customer. Normally it is the seller who is more active in the exchange process as he/ she analyses the needs of the potential buyers, develops a market offering and persuades the buyers to but the product.

For Example-   Mcdonalds, Tata motors , Maruti are marketers.


Marketing Management refers to planning, organising, directing and control of the activities which facilitate exchange of goods and services between producers and consumers or users of products and services. Marketing management means management of the marketing function.


  1. Selection of target market- Choosing a target market, say a manufacturer may choose to make baby food for children up to the age of 3 years.
  2. Create demand for the products- after choosing the after choosing the target market, the second steps to create demand for the products so that the target customers purchase the product. the focus is on satisfaction of existing customers an attracting more customers so that the firm can grow.
  3. Create superior value- the next step is to create some superior values in the product and to communicate these values to the customers so that they are attracted to the products.

Marketing Management is not only concerned with creating demand but with managing the demand effectively.


Marketing mix is the set of marketing tools that the Firm  uses  to pursue its marketing objectives in the target market.

so these are set of controllable variables to influence buyers response.  and every business organisation  want to achieve an optimum marketing mix resulting in an optimum output.

These tools can be classified basically into four categories:


Product means goods or services anything of value which is offered to the market for Exchange. Product mix is the combination of all products offered for exchange by a company.

The important product decisions that a marketer makes  include-

  1. Deciding about quality, features, size, service and warranty.
  2. Decision about branding
  3. Decision about packaging
  4. Decision about labelling.

Product mix has 3 major components.





Branding is one of the most important decision that a marketer has to take regarding a product. Marketer ha stop decide whether a firm is going to sell its product under a brand name or a generic name.

GENERIC NAME- Generic name refers to the name of a class of the product. e.g shoes, pen ,car etc.

If a firm sells its products under generic name it would be very difficult for the marketer to distinguish its products from that of competitors.

Branding is the process of giving a name or symbol etc, to a product.

Various terms related to branding -

BRAND- A brand is a name, term, sign , symbol, design or some combination of them, used to identify the products of one firm and to differentiate them from those of the competitors.

Brand is a comprehensive term which has two components. Brand name and brand mark

BRAND NAME- That part of brand which can be spoken is called a brand name.

For example- Asian paints, Maggie are brand names.

 BRAND MARK- That part of brand which can be recognised only, but cannot be spoken is called brand mark. It appears in the form of symbol, design or distinct colour scheme.

For example- Nike logo.

TRADE MARK- a brand or a part of brand that is given legal protection against its use by other firms is called trade mark.  Thus the firm, which got its brand registered, gets the exclusive right for its use. In such case, no other firm can use such name or mark in the country.

For example- the above are the trademarks of Mercedes and nike.


To the marketers:

Enables marketing product differentiation- branding helps a firm In distinguishing its products from that of its competitors.

For example- earlier samsung used to manufacture television. But with change in time it introduced microwave and washing machines under its brand which was one of the successful decision.

Ease in introduction of new products- if a new product is introduced under a known brand , it is likely to get an excellent start.

Differential pricing-  branding enables a firm to charge higher prices for its products than its competitors, because if customers like. A brand they do not mind even paying a little higher price.

 Helps in advertising- a brand name helps a firm in advertising and display programmes.

To the customers:

Helps in product identification- branding helps the customers in identifying the products.

For example- By seeing the following brand mark , a customer can identify that . It is a nike product.        

Status symbol-  Some brands become status symbols because of their quality. The consumers of those brands of products feel proud of using them and adds to the level of satisfaction of the customers.

For example- apple manufactures iPhones not just as a smart phone but as a status symbol too.

Ensures quality- branding ensures a particular level of quality of the product. If there is any deviation in the quality, the customers can make a complaint to the manufacturer or the marketer.


1. A brand name should be short, easy to pronounce, spell , recognise and remember.

For example-  L.G. apple, vim etc.

2. The brand name should be should suggest the products benefits and qualities.

For example- hajmola, hair and care etc.

3. A brand name should be distinctive.

For example- samsung, zero etc.

4. Brand name should have staying power.i.e it should not get out of dater very soon.

For example- coca-cola, lux, vice, Nirma etc.

5. The brand should be efficiently versatile to accomodate new products, which are added to the different languages.

6. It should be capable of being registered and protected legally.


It refers to the act of designing and producing the container or wrap of a product.

Under packaging the container or the wrapper of the product is designed according to the product. Which helps in selling, advertisement, protection and transportation of the product.

For example- packet of uncle chips contains a special air i.e nitrogen air which helps in protection of the chips so that they do not get crushed. While bathing soaps comes in a plastic wrapper so that the fragrance is remained intact.


1. PRIMARY PACKAGE- it is the products main or immediate container. Example toothpaste tube.

  • but in some cases the [primary package is kept till the consumer is ready to use the product.
  • Sometimes it is kept throughout the whole life of the product .example ketchup bottle.

2. SECONDARY PACKAGE- It refers to additional layers of protection that are kept till the product is ready to for use. Example toothpaste comes in a cardboard box, when a consumer starts using the toothpaste , he disposes off the box but retains the primary tube.

3. TRANSPORTATION PACKAGE- it refers to further packaging components necessary for storage and transportation.  example. A toothpaste manufacturer may send the goods to retailers in corrugated boxes containing 10,20 or 100 units.


1. Product Identification -  Packaging greatly helps in identification of the products .

For example-uncle chips in green colour , Maggie noodles in yellow colour etc. can be easily identified.

2. Product protection- packaging protects the contents of the products from spoilage, breakage, leakage , damage etc.

For example- air tight containers and packets are used for chips , biscuits, jams etc.

3. Product promotion- packaging promotes the sales of a product. The package is buyers first encounter with the product and is capable of turning the buyer on or off. The attractive, colourful and innovative packaging. Attracts a customer to buy the product. packaging is therefore is a silent salesman.

For example- Ferrero Rocher chocolates comes in a an attractive package of diamond cut style.

4. Product differentiation - packaging creates product differentiation.

For example- by looking at the package of the product say, hair oil, one can make some guess about quality of the product contained in it.

5. Ease handling / facilitating use of the product - the size and shape of the package.of some products are such that it is convenient to open, handle and use them.

For example- if toothpaste comes in a jar it would be impossible to use it easily therefore toothpaste tubes has been made for easy handling.

For example- introducing shampoo pouches in rural area.


It refers to designing the label to be put on the package. Label may vary from a simple tag attached to the product (e.g in case of products like sugar, wheat, pulses etc.) to complex graphics that are part of the package.(e.g. in case of taj mahal tae or India gate basmati rice.)


1. Describe the product and specify its contents- it is one of the most important functions labels to describe the product, its usage, manufacturing and expiry dates. Etc.

For example- package of a brand of coconut oil describes the product as pure coconut oil and specific hope these are good for hair.

2. Identification of the product or brand- the label helps the customers to identify the product or brand from various types available.

For example-  one can easily identify Cadbury chocolate from the various available chocolates in a store.

3. Grading of product- with the help of label, products can be graded in different categories.

For example -a popular brand of Hair Conditioners comes in different categories for different hair, say for ‘normal hair’ and for other categories.

4. Helps in promotion of products- lable plays an important role in sales promotional schemes launched by companies.

For example - package of a toothpaste mentioning, ‘Free Toothbrush Inside’, or ‘Save Rs15’.

5. Providing information required by law- labelling perfumes the function of providing information required by law.


It refers to amount of money paid by a buyer or received by a seller in consideration of the purchase of a product.

Pricing occupies an important place in the marketing of goods and services by a firm. No product can be launched without a price tag or at least some guidelines for pricing.  Pricing is often used as a regulator of the demand of a product. Whenever, the price of a product is increased, its demand comes down, and vice-versa.

For example - money paid for buying a pen .

Marketers have to take crucial decisions such as-

1.Setting the pricing objectives- e.g profit maximisation, obtaining marks share ,leadership etc.

2 Determining the pricing strategies- (i)Market Penetration Pricing Strategies, setting the lowest price to capture large market share.

(ii) Market Skimming Pricing Strategy- setting high price to maximise market skimming.

3. Analysing the factors determining the prices, eg production cost, competition etc.

4. Fixing a price for the firms products.

5. Discount to customers, credit terms etc.


1.Pricing Objectives- Pricing objectives are another important factor affecting the fixation of the price of a product or a service.

2. Profit maximisation-  If the firm decides to maximise profits in the short run, it would tend to charge maximum price for its products. But if it is to maximise its total profit in the long run, it would opt for a lower per unit price so that it can capture larger share of the market and earn greater profits through increased sales.

3. Obtaining greater market share-If a firms objective is to obtain larger share of the market; it will keep the price of its products at lower levels so that greater number of people are attracted to purchase the products;

For example - reliance introduced Jio initially giving free benefits to customers which in turn helped reliance to obtain greater market share.

4. Surviving in the competitive market- if the firm is facing difficulties in surviving in the market because of intense competition, it will charge the lowest possible price and offer discounts available.

For example -after introduction of jio other, telecommunication networks like idea Vodafone faced difficulties in surviving in the market so they decided to bring down the prices of their particular network.

5. Attaining product quality leadership- in such a case, the firm charges higher prices for providing high quality products , because it incurs heavy expenditure on research and development.

For example -apple spends huge amount of money on its research and development which in turn results in charging high prices of its product, providing quality to the customers and product quality leadership to itself.

6. PRODUCT COST- Product cost includes, the cost of procuring, distributing, and selling the product. It is important that the price should recover total cost.(fixed cost as well as variable cost) in the long run including a margin of profit over and above the costs.

7. EXTENT OF COMPETITION IN THE MARKET- It is an important factor while fixing the price of a product . If there is high competition in the market a firm may find difficult to fix the price while if the competition is low then a firm can easily fix the price.

8. The Utility and  Demand- The utility provided by the product and the intensity of demand of the buyer set the upper limit price, which he is willing to pay.

  • when the demand of the product is inelastic ,the total revenue increases when the price is increased, so, a firm fixes higher price.
  • When the demand is elastic, a small rise in price results in decrease in the quantity demanded by large amount. Total revenues also decreases . so, a firm fixes .lower prices.

9. Government  & Legal  Regulations -  In order to protect the interest of public against unfair practices in the field of price fixing, Government can intervene and regulate the price of commodities

10. Marketing methods used -Price fixation process is also affected by other elements of marketing such as distribution system, quality of salesmen employed, quality and amount of advertising, sales promotion efforts, the type of packaging, product differentiation, credit facility and customer services provided.


It is concerned with making the goods and services available at the right time, right place, in right quantity, so, that consumers can purchase the same.

For example- if a person wants to purchase nike , running shoes, for which he goes to. a retail outlet but doesn't find the shoe with the specific size. So , he decides to go to Adidas outlet, where he is able to get the shoe with the particular size and choice, in the example here Adidas made the product available at the right time , right place and right quality.

The two major decisions under this function of marketing includes

1. Decision regarding channels of distribution-



-direct selling

2. Physical movement of the product from the place of production to the consumers for their consumption or use.


Channels of distribution means the path through which the ownership as well as possession of goods passes from the producer to the consumer.

So this are intermediaries, who help the producers by making there profits available to the consumers.


  1. DIRECT CHANNEL ( Zero Channel)-  The most simple and the shortest mode of distribution is direct distribution, where in the goods are made directly available by the manufacturers to customers, without any involvement of intermediaries. It is called zero level channel.

For example- if a consumer wants to purchase a packet of Tata salt,  he doesn’t go to Tata factory to purchase it neither tata agents come to his home for selling the product. He purchase it from neighbourhood retail shops.   


1. Selling goods through own retail outlets: E.g McDonalds.

 Selling through own salesforce.e.g. Oriflame.

internet selling. E.g Amazon, Flipkart

Tv selling e.g Telebrands.

 Telemarketing. E.g ICICI bank.

2. INDIRECT SELLING-When a manufacturer employs one or more intermediary to move goods from the point of production to the point of consumption, the distribution network is called indirect.

(i)  ONE LEVEL CHANNEL-  In this form of Channel one intermediary i.e., retailers is used between the manufacturers and the customers. That is, goods pass from the manufacture to the retailers who, in turn, sell them to the final users.

For example- Maruti sells its cars and vans through company approved retailers.

(ii) TWO LEVEL CHANNEL- This is the most commonly adopted distribution network for most consumer goods like soaps, oils, clothes, rice, sugar and pulses. the wholesaler and retailer function as connecting links between the manufacturer and consumer.

(III) THREE LEVEL CHANNEL-   manufactures use their own selling agents or brokers who connect them with wholesalers and then the retailers.It is done particularly when the manufacturer carries a limited product line and has to cover a wide market.



i) Geographical concentration of buyers- if the buyers are concentrated in a particular area, shorter channels are used. But if the buyers are widely scattered over large geographical Ara. In that case large channels should be used.

ii) Size of order- if the size of the order is small, as in case of consumer goods, large number of intermediaries are involved. But in case of the size of the order is large , direct channels may be used.


i) Nature of product- in case of industrial products which are technically made, and are expensive products, ,which are produced by few buyers. These products require direct channel of distribution. Whereas, in case of consumer products, which are less bulky, less standardised, less expensive require larger channel of distribution.

ii) Perishable v/s non-perishable-  Perishable products like fruits, vegetables, and dairy products are best sold through short channels, while non-perishable products like toiletry products (e.g., soap, toothpaste, hair oil etc.), groceries (vegetable oil, tea leaf etc.), fabrics require longer channels to reach wide spread consumers.

iii) Price of the product- if the goods are expensive e.g gold jewellery. Such types of goods distributed requires direct channels of distribution. While if the goods less expensive, are preferred longer channel of distribution,

iv) Product complexity- complex products require technical details. Eg engineering products. Shorter channels are preffered, where non-complex products are sold through longer channel of distribution.


  1. Financial strength of the company- if the company has huge funds to invest in its own retail store or to employ large number of salesperson i.e if the financial strength of the company is sound it may use direct selling.on the other hand, if the financial strength of the company is not good enough it may opt indirect channels.
  2. Degree of control- if the management wants to have greater control on the channel members, it may opt for short channel of distribution . Whereas if the management does not want more control over the middlemen, it adopts longer channels .

COMPETITIVE FACTORS - The choice of channel is also affected by the channel selected by competitors in the same industry. If the competitor’s have selected a particular channel say Chemist shops for the sale of perfume, the other firm may also like to select the similar channel. But. In some cases producers may want to avoid the channels used by competitors. For example if other cosmetic producers like lakme have chosen big retail stores for the sale of their products, a particular firm like oriflame may like to adopt door to door selling.

ENVIRONMENTAL FACTORS- Other important factors affecting the choice of channels of distribution include environmental factor such as economic condition and legal constraints. In a depressed economy marketers use shorter channels to distribute their goods in an economical way.


Promotion means all the activities which intend to inform customers about the product, its features, quality etc and persuade them to buy the product or services.

PROMOTION MIX, it refers to the combinations of all the promotional tools or methods used by a business organisations to achieve its objectives.



The various combinations used by the firm depends on its goal, size, nature of market and product, budget and other factors.

"Advertisement is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor.”-AMERICAN MARKETING ASSOCIATIONS.

Following are the main features of advertising-

  1. Paid promotion- advertisement is a paid form of communication, it means that the sponsor or marketer has to payoff the advertisement.
  2. Impersonal method of promotion- the advertisement is an impersonal method of promotion , so there, is no direct contact between customers and marketer.
  3. Identified sponsor- advertising is done by some identified individual or organisation which pay for the advertisement.and their identity is disclosed.

Role of advertising-

  1. Create demand- it helps to create demand by making people aware of new products and new uses of existing products.
  2. educates consumers and makes shopping easier- it educates consumers by providing information about how products can be used. And by informing them about the new products and new features of the existing products.
  3. Enhances consumer confidence- it enhances consumer confidence as they feel more comfortable and assured about the quality of the product.
  4. Creates better organisational image- through advertising organisation reach many people by providing them.a message how organisation stands for serving the society.
  5. Facilitates introduction of new products- it helps in introduction of new products by communicating the positive features of newly introduced products.
  6. Creates customer loyalty- it helps in creating customer loyalty through repeated communication.


Personal selling means selling products personally, it is a very effective tool of promotion.

In personal selling marketer tries to influence the prospect customer by persuading them to purchase the product through direct face-to-face communication.

Company appoints salesperson who get in touch with prospect buyers for the purpose of making sales.

Feature of personal selling-

  1. It is direct face to face contact- a marketer either approach the prospect customer directly or appoints salesperson to get in touch with the prospective clients.
  2. Development of relationship- personal selling develops a friendly relation between marketer and customer which helps in long-run.
  3. Oral conversation- personal selling is direct face to face two way communication between seller and buyer.

Qualities of a goods salesperson

  1. Physical qualities- a salesperson should be good looking. He must have sound health and stamina.
  2. Mental/psychological Qualities- a salesperson should be sweet natured, posses good behaviour, be mentally healthy, have presence of mind sharp memory and intelligence.
  3. Technical qualities-  a good salesperson should have all technical knowledge , about the product he/she is selling. The salesperson must be bad etc explain its features , benefits, quality etc.
  4. Communication skills- a good salesperson must have fantabulous communication skills. he/she must be confident and a convincing conversationalist.
  5. Honesty-  a salesperson must be honest and of good character. He must be sincere in performing his duties. There is no place for dishonest salesperson in any business.
  6. Courtesy- a salesperson must be very polite. Polite language should be used to win buyers confidence.
  7. Persistent- good salesperson are tactful, ambitious and enthusiastic . They never give up.
  8. Capacity to inspire trust- a salesperson must have passion and ability to inspire trust in his customers. He must understand the customers needs and convince the customer that the specific product being sold will be best fill that need.


Sales promotion refers to short-term incentives which are designed to encourage the buyers to make immediate purchase of a product or service. It aims to increase the sales of business organisation.

Sale promotion can be used for-

  1. Customers- in the form of discounts , free samples, contest. Etc.
  2. Traders- in form of cooperative advertising, dealer discounts, contests.
  3. Sales person- in form of bonus, contests, special offers.

Sales promotion include only those activities that are used to provide short-term incentives to boost the sales of a firm.

Sales promotion activities/techniques/ methods

Some of the major sales promotion activities used by business organisation are-

1.Rebate- it refers to offering the product at a price ;less than the original price to clear off the excess inventory.

For example- if.a person purchases cakes from barista between 8-11pm he, will Geta discount of 50% ( this technique has been used by barista to clear off all the excess cakes baked)

2. Discount- it refers to reduction of certain percentage from the price for a limited period.

For example- if a person wants to purchase an iPhone 6s during Dusshera sales on flipkart , so he can get the product at discounted rate. 24000( market price of phone-46000, discount given-22000)

3. Refunds- in this method, a part of the product price is refunded to the customer on showing proof of purchase.

For example-if a person pays uses card to pay for the petrol he get a refund of 0.75% in his account.

4. Product combinations- it refers to giving one product as a gift along with the purchase of main product.

For example- if a person purchases mi mobile phone he gets a free mobile cover and a screen guard with it.

5. Quantity gift- it refers to offering some extra quantity of the main product as a gift to the customers.

For example-generally, dove soaps are sold as pay for 3 get one free.

6. Instant draws and assigned gift- in this method, customer is offered schemes, like scratch a card to win instant gifts on the purchase of a product.

For example- using google pay to transfer money, gives a scratch card to the prospective client, which offers cash back from Rs 10-1000

7. Useable benefits- it refers to a method , in which coupon or discount voucher is given to consumer on purchase of a product to Avail any special benefit or discount.

For example- Myntra gives his existing customers a discount voucher of Rs250 off on the next purchase by providing them a promo code.

8. Full finance @0%- in this method, product is sold on instalment basis at zero percent rate of interest.

For example- amazon offers customers 0% EMI where, no interest is charged on EMI’S.


Public relations includes a variety of programmes to promote and protect a company’s image or its product . It aims to strengthen relations with various stake-holders like customers suppliers, shareholders. Etc.

Public relation is the deliberate , planned and sustained effort to establish and maintain mutual understanding between an organisation and its public.

Public Relation Tools-

  1. TRADITIONAL PUBLIC RELATION TOOLS-  press release and press kits which are distributed to the media to generate interest from the press.
  2. OTHER WIDELY KNOWN TOOLS INCLUDE- Brochures, newsletter and annual reports.
  • Events like seminars , contests etc.
  • Public service activities.
  • sponsorships.

Role of public relations

  1. Smooth functioning of business and achievement of objectives- business engage in public relations to keep different public groups satisfied so that there are no obstructions on the functioning of business , and its objectives are achieved.
  2. Building corporate image that affects favourably on its products- e.g expenditure on upkeep pf parks and gardens in the city, sponsoring sports and cultural events.
  3. Build interest in the established product and help in launching a new product- effective pr campaign attracts , motivates the customers to buy the products.
  4. Defending product faced advert publicity- an effective PR can move the misunderstanding between the company and the public.
  5. Supplement to advertising in promotion of products- pr must be planned jointly with advertising, it costs less than media advertising because the company does not pay media space or time but only for the staff to develop and circulate the stories ands mange certain events.