CBSE CLASS 12 BUSINESS STUDIES

CHAPTER – 11
MARKETING

 MEANING OF MARKET
The term ‘market’ refers to the place where buyers and sellers gather to enter into transactions
involving the exchange of goods and services. The term ‘Market’ has been derived from the Latin
word ‘Marcatus’ which means ‘to trade’.

 MARKETING
Marketing as “a human activity directed at satisfying needs and wants through exchange
process”.
 DEFINATION
“Marketing is that phase of business activity through which the human wants are satisfied by
the exchange of goods and services.” J.F.Pyle

 FEATURES OF MARKETING

1. Needs and Wants:

• The process of marketing helps consumers in obtaining what they need and want.
• Needs are basic to human beings and do not pertain to a particular product.

2. Creating a Market Offering:

Market offering refers to a process of offering and introducing a product or service, having given
features like size, quality, taste, etc. for the purpose of selling.

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3. Customer Value:
The process of marketing facilitates exchange of products and services between the buyers and
the sellers.

4. Exchange Mechanism:
• The process of marketing works through the exchange mechanism.
• Exchange refers to the process through which two or more parties come together to obtain
the desired product or service from someone, offering the same by giving something in
return. For E.g. money is the mode of exchange used to buy/ sell a product or a service.

WHAT CAN BE MARKETED?

1. Physical product
2. Services
3. Ideas
4. Person
5. Palace
6. Experience
7. Properties
8. Events
9. Information

10. Organisation

MARKETER

• Marketer refers to any person who takes more efforts in identifying the needs of the
consumers, offer the product / service and persuade them to buy the product in the
process of exchange.

 MARKETING MANAGEMENT

Marketing management means management of the marketing functions. It is the process of

organizing, directing and controlling the activities related to marketing of goods and services to
satisfy customers’ needs & achieve organizational goals.

The process of marketing management involves:

a. Choosing a target market

b. Demand creation by producing products as per the customers’ requirements and interests.

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 c. Create, develop and communicate superior values to the customers: To provide superior
value products/ services to prospective customers and they communicate these values to
other prospective buyers and persuade them to buy the product/ service.

MARKETING AND SELLING

Marketing: It refers to a large set of activities of which selling is just one part. A marketer before
making the sale does a lot of other activities such as planning the type, design of the product,
fixing the price and selecting the distribution channels and choosing the right promotional mix
for the target market.

Selling: refers to the sale of goods or service through publicity, promotion and salesmanship.
The title of the product is transferred from seller to buyer. The main purpose of selling is to
convert product into cash.

DIFFERENCE BETWEEN MARKETING

Basis Marketing Selling

Scope It is a wide term consisting of a It is only a part of process of
number of activities such as marketing.
identification of customer needs,
product development,
fixing of price, distribution and
promotion and selling.
Focus Achieving maximum satisfaction of Transfer of the title from seller to
the customers needs and wants. consumer.

Aim Profits through customer satisfaction. Profits through maximising sales

volume.
Emphasis Bending the customer according to the To develop the products as per the
product. customer needs.
Start and It start before a product is produced. It starts after a product is developed.
end
Activities
Strategies Involves efforts like product, promotion Involves efforts like Promotion and
pricing and physical distribution. persuasion

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  MARKETING MANAGEMENT PHILOSOPHIES
Marketing concept/ philosophies holds that a key to achieving organizational goals consists in
determining the needs and wants of target markets and delivering the desired satisfactions more
efficiently and effectively by competitors.

1. Production concept:
Production concept focus on lowering the cost of production by means of mass production an
distribution. But the drawback of this concept is that customers don’t always buy products which
are inexpensive and available.
Main Focus:- Large scale production to decrease the cost.

2. Product concept:
• With passage of time, the supply improve and the customers started favouring the
products that were superior in performance, quality and features.
• Thus, product improvement became the key to profit maximization of a firm
Main Focus:- Good quality of goods, added features in product.

3. Selling concept:
Selling Concept can be summed up in the statement “selling what you have” so under this concept
the product is sold by hood or crook. Selling concentrates on the requirement and needs of
Producers and sell whatever is produced.
Main Focus:- To sell whatever is produced by using intensive promotional techniques.

4. Marketing concept :
• Marketing begins with finding what the consumers want and thus satisfy consumers and
make profits.
• Customer satisfaction is the precondition for realizing the firm’s goals and objectives.
Main Focus:- Customer Satisfaction

5. Societal marketing concept:

• Under this concept customer satisfaction is supplemented by social welfare.
• A company that adopts the societal concept has to balance the company’s profits,
consumer satisfaction and society’s interests.
Main Focus:- Customer satisfaction with in ethical and ecological boundaries of our society

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 DIFFERENCES IN THE MARKETING MANAGEMENT PHILOSOPHIES

Philosophies/ Production Product Selling Marketing Societal

Basis concept concept concept concept concept

Starting Point Factory Factory Factory Market Market,

Society
Main focus Quantity of Quality, Existing Customer Customer
product performance, product needs needs and
features of society’s well
product being
Means Availability Product Selling Integrated Integrated
and improvements and marketing marketing
affordability promoting
of product
Ends Profits Profits Profits Profits Profits
through through through through through
volume of product sales customer customer
production quality volume satisfaction satisfaction
and social
welfare

 FUNCTIONS OF MARKETING

1. Gathering And Analysing Market Information:

• Systematic accumulation of facts and analysis of information.
• Analysing the strengths, weakness, opportunities, and threats of a business environment.
• Identifying customer needs and wants, identifying buying motives.

2. Marketing planning :
• To develop an appropriate marketing plan so that the marketing objectives can be
achieved.
• It should specify the action programs to achieve these objectives .

3. Product designing and development:

• Involves decisions regarding the product to be manufactured and it‘s attributes such as
its quality considerations, packaging, models and variations to be introduced etc.
• A good design can improve performance of a product and also give it a competitive
advantage in the market.

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4. Standardization and grading:
• Standardisation refers to producing goods of predetermined specifications, which helps in
achieving uniformity and consistency in the output E.g. ISI Mark etc.
• Grading is the process of classification of products into different groups, based on some of
its important characteristics such as quality, size, etc.

5. Packaging and labeling:

• Packaging‘ refers to designing and developing a package for a product.

• It protects the products from damage , risks of spoilage, breakage and leakage. It also
makes buying convenient for customers and serves as a promotional tool.
• Labelling refers to designing a label to be put on the package. It may vary from a simple
tag to complex graphics.

6. Branding
• It helps in differentiation of the product, builds customer loyalty and promote its sale.
• Important decision area is branding strategy, whether each product will have a separate
brand name or the same brand name to be used for all products.

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7. Customer Support Services:
• Customer support services are very effective in increasing sales from the prospective
customers and developing brand loyalty for a product.
• It aims at providing maximum satisfaction to the customer and building brand loyalty.
• Eg. sales services, handling customer complaints and adjustments, procuring credit
services, maintenance services, technical services and consumer information.

8. Pricing of Product:
• Price of product refers to the amount of money customers have to pay to obtain a product.
• It is an important factor in the success/ failure of a product.
• Demand for a product/ service is related to its price, so price should be fixed after
analysing all the factors determining the price of the product.

9. Promotion:
• Promotion of products and services involves informing the customers about the firm’s
product, its features, etc. and persuading them to buy the products.
• Methods of promotion are advertising, Personal Selling, Publicity and Sales Promotion.

10. Physical Distribution:

• The two major decision areas under this function are
(a) Decision regarding channels of distribution or the marketing intermediaries to be used
e.g. wholesalers, retailers
(b) Physical movement of the product from where the place of production to the place of
consumption.

11. Transportation:
• Transportation means physical movement of goods from one place to the other.

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 • Various factors like nature of the product, cost, location of target market etc. should be
considered in choosing the mode of transport.

12. Storage or Warehousing:

• To maintain smooth flow of products in the market, there is a need for proper storage of
the products.
• Storage and warehousing is used to protect against unavoidable delays in delivery or to
meet out contingencies in the demand.

 MARKETING MIX

MEANING
The marketing mix refers to the ingredients or the tools or the elements which the marketer mixes
in order to interact with a particular market.

DEFINITION

“ The marketing mix are the set of marketing tools that firm uses to pursue its marketing
objectives in the target market.” Philip koetler

ELEMENTS OF MARKETING MIX

The marketing mix consists of four main elements

A. Product

B. Price

C. Place/Physical Distribution

D. Promotion

These elements are more popularly known 4 P’s of the marketing.

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CLASSIFICATION OF PRODUCTS
Products can be classified into two categories:

(i) Consumers ‘products, (ii) Industrial products.

A. Shopping Efforts Involved

On the basis of the time and effort of the buyers.

1. Convenience Products: Those consumer products, which are purchased frequently, for
immediate use are referred to as convenience goods. Medicines, newspaper, stationery items,
toothpaste. etc.

2. Shopping Products: Shopping products are those goods, in which buyers devote
considerable time, to compare the quality, price, style, suitability, etc., at several stores, before
making final purchase. E.g. electronic goods, vehicles etc.

3. Specialty Products: Specialty products are those goods which have certain special
features because of which people make special efforts in their purchase. E.g. art work, antiques
etc.
B. Durability of Products

1. Non-durable Products: The consumer products, which are consumed in a short span of
time. E.g. milk, soap, stationary etc.

2. Durable Products: Those tangible products which normally survive many uses, for e.g.
refrigerator, radio, bicycle etc.

Imran Sami ( M.Com. , M.B.A., B.Ed. )

3. Services: Services are intangible, it means those activities, benefits or satisfactions, which
are offered for sale, e.g., dry cleaning, watch repairs, hair cutting, postal services, services offered
by a doctor etc.
 PRODUCT MIX
It refers to a combination of various features relating to the product or service like quality, size,
range, package, warranty etc.

Important components of Product Mix

Three components of product mix are - Branding, Packaging, Labelling.

BRANDING –
A brand is the identification of a product by giving a name/a sign; a symbol etc. to a product e.g.:
Pepsi, Nike, Surf etc.
Various terms are related to brand like BRAND, BRAND NAME, BARND MARK and TRADE MARK
Qualities of a Good Brand Name

1. Simple and Short: A brand name should be simple and short as Tata, Bata
2. Easily Pronounceable: A brand names should be easily pronounceable as Lux, Dalda.
3. Suggestive: Band name should be self-explanatory, suggesting the inherent quality of the
product as Ujjala suggests more whiteness.
4. Distinctive: Band name should be so distinctive that it highlights itself in the group of other
brand names such as: Tide, Perk.

Advantages of Branding:
1. Brand name helps in advertising it in an easier way.
2. Brand name establishes permanent identity of the product.
3. Branded products can be easily identified by consumers.
4. Brand name promotes repurchasing.
5. 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.

 PACKAGING

It refers to Act of designing and producing the container or wrapper of a product. Good packaging
often helps in selling the product so it is called a silent salesman.
Companies always supply the products in packaged form for example, coke comes in bottle, oil
in jar and biscuits in wrapper etc.

Levels of Packaging
1. Primary Package: It refers to the product’s immediate container or packing e.g. toffee in a
wrapper, a match box. It remains with product till it used.

Imran Sami ( M.Com. , M.B.A., B.Ed. )

2. Secondary Package: It refers to additional layers of protection that are kept till the product is
ready for use generally users throw that when they start using the product. e.g. a Colgate
toothpaste usually comes in a card board box.
3. Transportation Package: It refers to further packaging components necessary for storage,
identification and transportation e.g. package of toffees are put into corrugated boxes for storing
at a manufacturer’s warehouse and for transportation.

FUNCTIONS OF PACKAGING

1. Product Identification: Packaging helps in identification of the product.

2. Product Protection: The main function of the packing is to provide protection to the product
from dirt, insects and breakage.
3. Convenience: It provides convenience in carriage, stocking and in consumption.
4. Product Promotion: Packaging simplifies the work of sales promotion.

ADVANTAGES OF PACKAGING

1. Rising standards of Health and Sanitation: The people are becoming health conscious so
they like to buy packed goods. The reason is that the chances of adulteration in such goods are
minimized.
2. Innovational Opportunity: With the increasing use of packaging more innovational
opportunity becomes available in this area for the researcher.
3. Product Differentiation: Packaging is helpful in creating product differentiation. The colour,
material and size of the package makes differences in the quantity of the product.

 LABELLING

Labelling means putting identification marks on the package. Label is a carrier of information &
provides information like - name of the product, name of the manufacturer, contents of the
product, expiry and manufacturing date, general information for use, weight etc.
Labels perform following functions:

1. Identify the product: It helps the customers to identify the product from the various types
available. For example: We can easily identify a Cadbury chocolate from the various chocolates
by purple colour of its label.
2. Describe the product and specify its contents: The manufacturer prints all the information
related to the product.
3. Grading of products: With the help of label, products can be graded indifferent categories for
example: Brook Bond Red Label, Brook Bond Yellow Label, Green Label etc.
4. Helps in promotion of products: Attractive and colourful labels excite the customers and
induce them to buy the products. For example: 40%extra free mentioned on detergent etc.
5. Providing information required by law: There is legal compulsion to print batch no.,
contents, max retail price, weight/volume on all the products and statutory warning on the
packet of cigarettes, “Smoking is injuries of health”: In case of hazard on/poisonous material
appropriate safety warnings need to be put.

Imran Sami ( M.Com. , M.B.A., B.Ed. )

II. PRICING

Meaning of Price:
Sum of the values that consumers exchange for the benefit of having or using the product. Price
may therefore be defined as the amount of money paid by a buyer in consideration of the purchase
of a product or a service.
Price mix refers to important decisions related to fixing of price of a commodity.

FACTORS DEERMINING PRICE DETERMINATION:

1. Pricing Objectives
• The objective of the marketing firm is to maximize profits. Pricing objective can be
determined in the short run and in the long run.
• If the firm decides to maximise profits in the short run, it would 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.

2. Product cost:
• Price cover all costs and aim to earn a fair return over and above cost.
• It includes the costs of producing, distributing and selling the product.
• Costs sets the floor price that is the minimum price at which the product may be sold.

3. Utility and demand:

• Utility provided by the product and the demand for the product set the upper limit of price
that a buyer would be willing to pay for a product.
• Buyers would be ready to pay to till the point, where the utility of the demand is more than
or equal to the utility derived from it.
• Law of demand states that consumers purchase more at a lesser price.
• If demand is inelastic, firm can fix higher prices.

4. Extent of Competition in Market:

Prices of competitors and their anticipated actions need to be considered before fixing prices.

5. Government Policies:
In public interest, the government can intervene regulates the price of the products.

6. Marketing Methods Used:

Price fixation process is also affected by other elements of marketing such as distribution system,
sales promotion efforts, the type of packaging, product differentiation, credit facility etc. if the
company is using intensive advertising to promote the sale then it will charge high price.
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III. PHYSICAL DISTRIBUTION

• A set of decisions needs to be taken to make the product available to customers for
purchase and consumption.
• The marketer needs to make sure that the product is available at the right quantity, at the
right time and at the right place.

Components of physical distribution:

1. Order Processing: Provide accurate & speedy order processing in the absence of which
orders would reach late or in wrong quantity. As a result it will lead to customer dissatisfaction,
with the danger of loss of business and goodwill.

2. Transportation: It make the product available at the point of sale by transporting goods
from the manufacturers to the consumers.

3. Inventory control: Important decision in respect of inventory is deciding about the level
of inventory. Additional demand can be met in less time and the need for inventory will be low.

4. Ware housing: Warehousing refers to the act of storing and assorting products in order to
create time utility in them. It is required to fill the gap between the time when the product is
produced & time when it is distributed for consumption.

Functions of Distribution Channels

1. Sorting: Middlemen procure supplies of goods from a variety of sources, which is often not of
the same features.

2. Accumulation: accumulation of goods into larger homogeneous stocks, which help in

maintaining continuous flow of supply.

3. Allocation: breaking homogenous stock into smaller, marketable lots.

4. Assorting: assortment of products for resale.
5. Product Promotion: Middlemen participate in certain activities such as demonstrations,
special displays etc.

6. Negotiation: Manufacturers, intermediaries and customers negotiate the price, quality and
other matters.

7. Risk Taking: merchant middlemen take title of the goods and thereby assume risks on account
of price and demand fluctuations, spoilage, destruction, etc.

Imran Sami ( M.Com. , M.B.A., B.Ed. )

CHANNELS OF DISTRIBUTION

• Includes a series of firms, individuals, merchants and middlemen who form a network,
which helps in the transfer of products and services from the producer to the end consumer.

• The intermediaries help to cover a large geographical area and bring efficiency in
distribution, including transportation, storage and negotiation.

TYPES OF CHANNELS:

Direct Channel ( Zero Level)

A direct relationship is established between the manufacturer and the customer.
Manufacturer to Customer. Eg. mail order, internet, door to door selling.

Indirect Channel
When a producer employs one or more intermediary to move goods from the point of production
to the point of sale, the distribution network is called indirect.

1. Manufacturer-Retailer-Customer (One Level Channel).

Imran Sami ( M.Com. , M.B.A., B.Ed. )
In this one intermediary i.e., retailers is used between the manufacturers and the customers.
Usually used for specialty goods like expensive watches, appliances, Cars( Maruti Udyog) etc.

2. Manufacture-wholesaler-Retailer-customer (Two Level Channel):

This channel is mainly used for the distribution of consumer goods. Usually used for consumer
goods like soaps , salt etc.

3. Manufacture → Agent → Wholesaler → Retailer → Customer (Three Level Channel):

In this case, manufactures use their own selling agents or brokers who connect them with
wholesalers and then the retailer and the consumers.

 FACTORS DETERMINING CHOICE OF CHANNELS OF DISTRIBUTION

Choice of appropriate channel of distribution is a very important marketing decision.

1. Product Related Factors: the nature of the product, whether it’s a industrial goods or
consumer goods, perishable or a non-perishable product etc. determine the channels used in
the distribution.

2. Company Characteristics: The financial strength of the company and the degree of control it
wants to hold on other channel members. Short channels are used to have greater control on
intermediaries and vice versa.

3. Competitive Factors: Companies may imitate the channels used by its competitors.
4. Market Factors: Size of market and geographical concentration of potential buyers affects the
channel selection.

5. Environmental Factors: Legal constraints and economic condition of a country. In a

depressed economy marketers use shorter channels to distribution.

IV. PROMOTION

• Promotion refers to the use of communication with the twin objective of informing
customers about a product/ service and persuading them to buy it.
• It refers a combination of promotional tools/ techniques used by an organization to induce
and persuade customers to buy its products.

PROMOTION MIX
Promotion mix refers to combination of promotional tools used by an organisation to achieve its
communication objectives.
Promotion mix tools:

Imran Sami ( M.Com. , M.B.A., B.Ed. )

1. ADVERTISING
It refers to paid form of non personal presentation and promotion of idea, goods or services by an
identified sponsor.
FEATURES, ADVANTAGES AND MERIT OF ADVERTISEMENT

• Mass Reach: Advertising can reach a large market. As through various media of
advertising there is benefit of mass reach.
• Enhancing Customer satisfaction and confidence: Customer feel more assured
about quality and feel more comfortable if sponsors claim these benefits in advertising.
• Expressiveness: It provides enough opportunities to marketers to dramatise the
massage with the help of drawings, colours, pictures, music, dance etc.
• Choice: There is wide variety of media available for advertising for video, audio, visual
audio, print media etc.
• Economy: It is always felt that advertising increases the cost of product or service
but advertising is considered economical as compared to other promotional techniques’
because it reaches masses.

OBJECTIONS TO ADVERTISING
Some opponents say that the expenditure on advertising is a social waste as it adds to the cost,
multiplies the needs of people and undermines social values.

1. Adds to Cost: Advertising unnecessarily adds to the cost of product which is passed on to the
buyer in the form of high prices.

2. Undermines Social Values: It undermines social values and promotes materialism.

3. Confuses the Buyers: Product of similar nature/ quality confuses the buyer.

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4. Encourages Sale of Inferior Products: It does not distinguish between superior and inferior
products.

5. Some Advertisements are in Bad Taste: These show something which in not approved by
some people. Like advertisement use bad language.

2. PERSONAL SELLING
Personal selling consists of contacting prospective buyers of product personally i.e by getting
involved in a face to face interaction between seller and buyer for the purpose of sale.
Features of the Personal Selling

1. Personal contact is established under personal selling.

2. Development of relationship with the prospective customers which are important in making
sale.

3. Through it customer do pay attention and listen to the information.

4. It is most effective form of promotion because with this the sales person can convince the buyer
by demonstrating.

5. Quick solution of queries.

QUALITIES OF A GOOD SALESMAN
1. Physical Qualities: Physical qualities include personality health, stamina and tolerance. A
salesman can instantly connect with the customers if he is good looking and smart.
2. Mental Qualities: These include mainly skills, mental alertness, imagination and self-
confidence.
3. Technical Qualities: He should have full and updated knowledge about the product he is
selling-Its features, price and variety available. He should be aware of the nature of work carried
on by the firm, he is working for.
4. Good communication skills: He should be able to develop a good conversation with the
customer. He should be confident while he is communicating and should be able to answer all
the queries of the customer satisfactorily.
5. Honesty: It is a very important quality of a good salesman. In order to establish the goodwill
of firm he must be honest and sincere in performing his duty.
6. Courtesy: A Salesman who is polite and courteous generates buyer’s confidence selling
product becomes easy for him.
7. Persistent: “Never give up”, is the spirit that a salesman should have. Making the customer
buy maximum amount of a product is the ultimate task given to him.

Imran Sami ( M.Com. , M.B.A., B.Ed. )

 ROLE OF PERSONAL SELLING

Impt. to Organisation Importance to

Importance to Society
Customers
• i) Effective • ( i) Help in Identifying • ( i) Converts Latest
Promotional Tool Needs Demand
• ( ii) Flexible Tool • ( ii) Latest Market • ( ii) Employment
• ( iii) Minimises Information Opportunities
Wastage of Efforts • ( iii) Expert Advice • ( iii) Career
• iv) Consumer • ( iv) Induces Customers Opportunities
Attention • ( iv) Mobility of Sales
• ( v) Lasting People
Relationship • ( v) Product
• ( vi) Personal Rapport Standardisation
• ( vii) Role in
Introduction Stage
• viii) Link with
Customers

3. SALES PROMOTION
Sales Promotion refers to short term incentives or other promotional activities that seek to
stimulate interest in purchasing a product.

Sales Promotion Techniques for Customers:

Important techniques of sales promotion are as follows:

(1) Rebate:

Under it in order to clear the excess stock, products are offered at some reduced price. For

example, giving a rebate by a car manufacturer to the tune of 12,000/- for a limited period of

time.

(2) Discount:

Under this method, the customers are offered products on less than the listed price. For example,

giving a discount of 30% on the sale of Liberty Shoes. Similarly giving a discount of 50% + 40%

by the KOUTONS.
Imran Sami ( M.Com. , M.B.A., B.Ed. )
(3) Refunds:

Under this method, some part of the price of an article is refunded to the customer on showing

proof of purchase. For example, refunding an amount of 5/- on showing the empty packet of the

product priced 100/-.

(4) Product Combination:

Under this method, along with the main product some other product is offered to the customer

as a gift.

(5) Quantity Gift:

Under this method, some extra quantity of the main product is passed on as a gift to the

customers. For example, 25% extra toothpaste in a packet of 200 gm tooth paste.

(6) Instant Draw and Assigned Gift:

Under this method, a customer is asked to scratch a card on the purchase of a product and the

name of the product is inscribed thereupon which is immediately offered to the customer as a

gift. For example, on buying a car when the card is scratched such gifts are offered – TV,

Refrigerator, Computer, Mixer, Dinner Set, etc.

(7) Lucky Draw:

Under this method, the customers of a particular product are offered gifts on a fixed date and the

winners are decided by the draw of lots. While purchasing the product, the customers are given

a coupon with a specific number printed on it.

(8) Usable Benefits:

Under this method, coupons are distributed among the consumers on behalf of the producer.

Coupon is a kind of certificate telling that the product mentioned therein can be obtained at

special discount.

(9) Full Finance @ 0%:

Imran Sami ( M.Com. , M.B.A., B.Ed. )

Under this method, the product is sold and money received in instalment at 0% rate of interest.

(10) Samples or Sampling:

Under this method, the producer distributes free samples of his product among the consumers.

Sales representatives distribute these samples from door-to-door.

(11) Contests:

Some producers organise contests with a view to popularizing their products. Consumers taking

part in the contest are asked to answer some very simple questions.

Advantages of Sales Promotion

1. Helps Create Awareness of New Products

2. Strengthens Customer Involvement and Loyalty
3. Can Be Quick to Develop
4. Used to Support Other Promotions
5. Helps Reduce Inventory
Disadvantages of Sales Promotion

1. May Condition Customers to Wait for Promotion

2. Can Lower Perception of the Brand
3. Issues With Promotion Clutter
4. Distributors May Not Be Willing to Accept

4. PUBLIC RELATIONS

Public relations covers a wide range of tactics and is usually involved in providing information
to independent media sources in the hope of gaining favourable coverage. It also involves a mix
of promoting specific products, services and events and promoting the overall brand of an
organization, which is an ongoing tact.
Role of Public Relations:

1. Press Relations: A press release is an announcement of an event, performance, or other

newsworthy item that is issued to the press by a public relations professional of an organization.
It is written in the form of a positive story with an attractive heading so that the media quickly
grasp and circulates the message.

2. Product publicity: The company tries to draw attention to new products by arranging
sports and cultural events like news conferences, seminars and exhibitions etc.
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3. Corporate Communication: The image of the organisation is promoted with the help of
newsletters, annual reports, brochures etc.

4. Lobbying: The organisation maintain cordial relations with government officials and
ministers in charge of corporate affairs, industry, finance in respect to policies relating to
business and the economy.

5. Counselling: public relations department advises the management on general issues

which affect the public and the position the company.

Maintaining good public relations also helps in achieving the following marketing
objectives:

(a) Building awareness

(b) Building credibility
(c) Stimulates sales force
(d) Lower promotion cost

Ways/Methods and Tools of Public Relations:

 Public Events. In order to attract public attention and keep it engaged with a particular
organisation or an individual, PR specialists take an advantage of every public event and
the opportunity to speak publicly.
 Press Releases. Information that is communicated as a part of the regular TV or/and
radio programme, newspapers, magazines and other types of mainstream media achieves
a much bigger impact than advertisements.
 Newsletters. Sending newsletters – relevant information about the organisation or/and
its products/services - directly to the target audience is also a common method.
Blogging. To reach the online audience, PR specialists use the digital forms of press
releases and newsletters but they also use a variety of other tools such as blogging and
recently, microblogging.
 Social media marketing. Like its name suggests, it is used primarily by the marketing
industry. Social media networks, however, are also utilised by a growing number of PR.

Imran Sami ( M.Com. , M.B.A., B.Ed. )

Comparison Chart

BASIS ADVERTISING PERSONAL SELLING

Communication One-way communication Two-way communication

Form Impersonal form of Personal form of communication

communication

Strategy Pull strategy Push strategy

Message Standardised Customised

Channel Mass media Sales personnel

Time Conveys message to end Conveys message to a few

number of individual in less customers only in relatively high
time. time.

Feedback Lacks direct feedback Facilitates direct and instant

feedback

BEST OF LUCK

Importance

Imran Sami ( M.Com. , M.B.A., B.Ed. )

Imran Sami ( M.Com. , M.B.A., B.Ed. )