Namma Kalvi

www.nammakalvi.org

UNIT-V
CONCEPT OF MARKETING AND
CHAPTER
MARKETER
13
Introduction
A Market is a centre or an area in which the forces leading to exchange title to a particular product operate and
towards which the actual goods tend to travel. The marketing concept is the philosophy that firms should ­analyze
the needs of their customers and then make decisions to satisfy those needs, better than the competition.
­Marketing is a department of management that tries to design strategies that will build profitable relationships
with the customers. This strategy helps in satisfying the customer needs, increase sakes, maximize the profit
and beat the competition. In this chapter it is clearly examined the concepts of marketing and the marketer.

I. Choose the Correct Answers
1. One who promotes (or) Exchange of goods
or services for money is called as _______.
a) Seller b) Marketer
c) Customer d) Manager
2. The marketer initially wants to know in the
marketing is __________.
a) Qualification of the customer
b) Quality of the product
c) Background of the customers
d) Needs of the customers
3. The spot market is classified on the basis of
________.
a) Commodity b) Transaction
c) Regulation d) Time
4. Which one of the market deals in the
­purchase and sale of shares and deben-
tures?
a) Stock exchange market
b) Manufactured goods market
c) Local market
d) Family market
5. Stock exchange market is also called
______.
a) Spot market b) Local market
c) Security market d) National market
ANSWERS
1 b 2 d 3 b 4 a 5 c
II. Very Short Answer Questions:
1. What is market?
™™ The word market is derived from the Latin
word ­‘Marcatus’ which means trade, com-
merce, ­merchandise, a place where business is
transacted.
™™ The common sage of market means a place
where goods are bought or sold.
™™ It is a medium or place to interact and exchange
goods and services.
™™ The meeting place of buyers and sellers in an
area is called market.
2. Define marketer.
™™ According to Business Dictionary a marketer is
­defined as “A person whose duties include the
identification of the goods and services desired
by a set of consumers, as well as the market-
ing of those goods and services on behalf of a
company”
3. What is mean by Regulated Market?
™™ The markets which are organized, controlled and
regulated by statutory measures.
™™ Eg. Stock Exchanges of Mumbai, Chennai,
Kolkata etc.

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4. Mention any four differences between wholesale Market and Retail Market?

Sl.No Basis of difference Whole sale market Retail Market

1. Meaning Wholesale is a business in which When the goods are sold to
goods are sold in large quantities to the final consumer in small
the retailers, industries and other lots, then this type of business
businesses is termed as retail
2. Connecting link between Manufacturer and retailer Wholesaler and customer
3. Competition Less Very high
4. Nature of products deals with Limited products Different products
5. Capital requirement Huge Little

5. What is meant by Commodity market?
Commodity market:
A commodity market is a place where produced
goods or consumption goods are bought and sold.
Commodity markets are sub-divided into:
™™ Produce Exchange Market
™™ Manufactured goods market:
™™ Bullion Market:
™™ For eg. Amusement park, Theme Park,
Mountaineering etc.,
(iv) Events:
™™ The event marketing aims at promoting
and marketing of special events shows,
­exhibitions, fairs, performances, sports
events like World Cup, Olympics, T20 etc.,

III. Short Answer Questions: (v) Persons:

1. What can be marketed in the market?
The dynamic items that can be marketed are listed
below:
(i) Goods:
™™ Manufactured goods are the main constitu-
ent of marketing endeavor in all the coun-
tries across the world.
™™ Companies and individuals market goods like
consumer durables, electronic products, ma-
chineries, Computers and its software and
hardware etc.,
(ii) Services:
™™ Not only physical goods can be marketed.
™™ Even the services of many organizations can
be marketed to the consumers namely bank-
ing, insurance, finance, hospitality, tourism,
professional consultations etc.,
(iii) Experiences:
™™ The unique and varied experiences pertain-
ing to a place or a park or an event can be
marketed under this concept.
™™ The marketing of goods and services through
celebrities is a successful formula for creating
a brand relationship with the consumers.
™™ The endorsement for the brand of a company
can be carried down by Cinema Stars, Sports
Stars, Musicians and eminent personalities.
2. Mention any three Role of Marketer?
i. Instigator:
™™ The marketer keenly watches the
­developments taking place in the market and
identifies marketing opportunities emerging
in the ever changing market.
™™ He/ she puts in place appropriate marketing
mix to capitalize the opportunity.
™™ In such a case, marketer plays as an
­instigator and leads the business toward new
directions.
ii. Innovator
™™ Marketer seeks to distinguish his products/
services by adding additional features or
functionalities to the existing product.
™™ He also does modifying the pricing, structure,
­introducing new delivery pattern, creating
new business models.

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Chapter - 13  Concept of Marketing and Marketer XII Std - Commerce
™™ The marketer as an innovator introduces 5. Explain the types of market on the basis of
changes in production process and so on. time.
(i) Very short period market:
iii. Integrator ™™ Markets which deal in perishable goods like,
™™ Marketer plays a role of integrator. fruits, milk, vegetables etc., are called as
™™ He collects feedback or vital inputs from very short period market.
channel members and consumers. ™™ There is no change in the supply of goods.
™™ He also provides products/service solutions Price is determined on the basis of demand.
to customers/consumers by co-coordinating
multiple functions of organization. (ii) Short period market:
™™ In certain goods, supply is adjusted to meet
3. Marketer is an innovator? Do you agree?
the demand.
™™ Yes. I agree with the above said statement.
™™ The demand is greater than supply.
™™ A Marketer is treated as an innovator, due to
™™ Such markets are known as short period
the following reasons
market.
™™ Marketer seeks to distinguish his products/
services by adding additional features or
(iii) Long period market:
functionalities to the existing product.
™™ This type of market deals in durable goods,
™™ He also does modifying the pricing, structure,
where the goods and services are dealt for
introducing new delivery pattern, creating
longer period usages.
new business models.
™™ The marketers as an innovator introduce 6. List down the functions of Marketer?
changes in production process and so on.    i. Gathering and Analysing market information
   ii. Market planning
4. Why customer support is needed to
   iii. Product Designing and development
­market?
   iv. Standardization and Grading
The customer support is needed to the market
   v. Packaging and Labelling
­because of the following reasons:
   vi. Branding
™™ To exchange (barter)goods and services.
   vii. Customer support services
™™ To adjust demand and supply by price
   viii. Pricing of products
mechanism.
   ix. Promotion and selling
™™ To improve the quality of life of the society.
   x. Physical distribution
™™ To introduce new modes of life.
   xi. Transportation
™™ To develop product by enhancing market
   xii. Storage and ware housing.
segment.

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XII Std - Commerce Chapter - 13  Concept of Marketing and Marketer

IV. Long Answer Questions:

1. How the market can be classified?

Classification of Markets

On the basis On the basis On the basis On the basis

of AREA of Goods of Economics of Transaction

Perfect Spot
Family Commodity Capital

ImPerfect Future
Produce Money
Local

National Manufactured Foreign

Bullion Stock
World

On the basis of On the basis of On the basis of On the basis of

REGULATION TIME VOLUME ImporTANCE

Regulated Very short Wholesale Primary

UnRegulated Short Retail Secondary

Long Terminal

Classification of Markets: ™™ The demands are limited in this type of

On the basis of different approaches markets have
been classified on the basis of Area, Nature of Goods
and Economic view, Transaction, Regulation, Time,
Volume and importance. The detailed ­classification
is presented in the following chart.
I. On the Basis of Geographical Area
a. Family Market: When exchange of goods
or ­services are confined within a family or close
­members of the family, such a market can be called
as family market.
b. Local Market:
™™ Participation of both the buyers and sellers
­belonging to a local area or areas, may be a
town or village, is called as local market.
market. For example, perishable goods like
fruits, fish, v­ egetables etc.
c. National market:
™™ Certain type of commodities has demand
throughout the country. Hence it is called as
a national market.
™™ Today the goods from one corner can
reach another corner with ease as the
­communication and transportation facilities
are developed well in India.
™™ This creates national markets for almost all
the products.

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Chapter - 13  Concept of Marketing and Marketer
d. International market or World market:
™™ World or international market is one where
the buyers and sellers of goods are ­from
­different countries i.e., involvement of ­buyers
and sellers beyond the boundaries of a nation.
II. On the Basis of Commodities/Goods
a. Commodity market: A commodity market is a
place where produced goods or consumption goods
are bought and sold.
Commodity markets are sub-divided into:
(i) Produce Exchange Market: It is an ­organized
market where commodities or ­agricultural
­produce are bought and sold on wholesale
­basis. E.g. Wheat Exchange Market of Hapur,
the Cotton Exchange Market of Bombay etc.
(ii) Manufactured goods market: This ­market
deals with manufactured goods. E.g., ­Leather
goods, manufactured machinery etc. The
­Leather Exchange market at Kanpur is an
­example of the same.
(iii) Bullion Market: This type of market deals
with the purchase or sale of gold ad silver.
­Bullion ­markets of Mumbai, Kolkata, Kanpur
etc., are examples of such markets.
b. Capital markets: New or going concerns need
finance at very stage. Their financial needs are met
by capital markets. They are of three types:
(i) Money market: It is a type of market where
short term securities are exchanged. It ­provides
short term and very short term finance to ­industries,
banks, governments agencies and ­financial
­intermediate.
(ii) Foreign exchange market: It is an
­international market. This type of markets helps
exporters and importers, in converting their
­currencies into foreign currencies and vice versa.
(iii) The stock market: This is a market where
sales and purchases of shares, debentures, bonds
etc., of companies are dealt with. It is also known
as securities market. Stock exchanges of Mumbai,
Kolkata, Chennai etc., are examples for this type of
market.
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XII Std - Commerce
III. On the Basis of Economics
a. Perfect market: A market is said to be a ­perfect
market, if it satisfies the following conditions:
(i) Large number of buyers and sellers are there.
(ii) P rices should be uniform throughout the ­market.
(iii) Buyers and sellers have a perfect knowledge of
market.
(iv) G  oods can be moved from one place to another
without restrictions.
(v) The goods are identical of homogenous.
I t should be remembered that such types of
­markets are rarely found.
b. Imperfect market: A market is said to be
­imperfect when
™™ Products are similar but not identical
™™ Prices are not uniform.
™™ There is lack of communication.
™™ There are restrictions on the movement of goods.
IV. On the Basis of Transaction
(i) Spot market: In such markets, goods are
­exchanged and the physical delivery of goods
takes place immediately.
(ii) Future market: In such markets, contracts
are made over the price for future delivery. The
dealing and settlement take place on different
dates.
V. On the Basis of Regulation:
(i) Regulated Market: These are types of ­markets
which are organized, controlled and regulated
by statutory measures.
Example: Stock Exchanges of Mumbai, ­Chennai,
Kolkata etc.,
(ii) Unregulated market: A market which is not
regulated by statutory measures is called un-
regulated market. This is a free market, where
there is no control with regard to price, quality,
commission etc. Demand and supply deter-
mine the price of goods.
VI. On the Basis of Time:
(i) Very short period market: Markets which
deal in perishable goods like, fruits, milk,
­vegetables etc., are called as very short ­period
market. There is no change in the supply of
goods. Price is determined on the basis of
­demand.
XII Std - Commerce
(ii) 
Short period market: In certain goods,
­supply is adjusted to meet the demand. The
demand is greater than supply. Such markets
are known as short period market.
(iii) Long period market: This type of market
deals in durable goods, where the goods and
services are dealt for longer period usages.
(VII). On the Basis of Volume of Business:
   (i) W holesale market: In wholesale ­market
goods are supplied in bulk quantity to
­dealers/retailers. The goods and services
are not sold to customers directly.
   (ii) R etail market: In retail market the goods
are purchases from producer or wholesales
and sold to customers in small quantities
by retailers.
(VIII). On the Basis of Importance:
   (i) Primary market:
™™ The primary producers of farm sell their
output or products through this type of
markets to wholesalers or consumers.
  Such markets can be found in villages and
mostly the products arrive from villages.
(ii) Secondary market:
™™ In this market, the semi finished goods
are ­marketed. Here finished goods are not
sold.
™™ The commodities arrive from other
markets.
™™ The dealings are commonly between
wholesalers or between wholesalers and
retailers.
(iii) Terminal market:
™™ It is a central site that serves as an ­assembly
and trading place for ­commodities in a
metropolitan area.
™™ For agricultural commodities these are
usually at or near major transportation
hubs.
2. How the market can be classified on the
basis of Economics?
The following are the classification of the market on
the basis of economics.
a. Perfect market: A market is said to be a ­perfect
market, if it satisfies the following conditions:
Chapter - 13  Concept of Marketing and Marketer
™™ Large number of buyers and sellers are
there.
™™ Prices should be uniform throughout the
market.
™™ Buyers and sellers have a perfect
­knowledge of market.
™™ Goods can be moved from one place to
another without restrictions.
™™ The goods are identical of homogenous.
™™ It should be remembered that such types
of markets are rarely found.
b. Imperfect market: A market is said to be
­imperfect when
™™ Products are similar but not identical
™™ Prices are not uniform.
™™ There is lack of communication.
™™ There are restrictions on the movement of
goods.
3. What is your contribution to promote the
market in the modern society?
The following are the ways to promote the market
in the modern society:
™™ One of most important point to ­consider
is the passing of information’s to the
­customers and educating the customers.
™™ Managing customer expectations from
consumer advocacy groups to learn about
the various brand loyalty.
™™ It is high time the clarification of the
­customers and the clearance of the
­customer’s doubts should be carry forward.
Additional Questions:
I. Choose the Correct Answers:
1. __________ are the form of human needs
take as shaped by culture & individual
­personality.
a) wants b) demands
c) needs d) social needs
2. Marketing is a process which aims at
_______.
a) Production
b) Profit making
c) satisfaction of customer needs
d) selling products
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Chapter - 13  Concept of Marketing and Marketer XII Std - Commerce
3. Marketers often use the term ______ to 8. Match the following in A and B from the
cover various groupings of customers. given codes.
a) People A B
b) buying power 1. Growth in (i) Goodwill
c) demographic segment
2.Creation of (ii) Customer loyalty
d) market
3.Sustaining (iii) Development
4. Who suggested product, pricing, place,
a) 1-ii; 2- i; 3-iii
­promotion all these in a company ­represents
b) 1-ii; 2-iii; 3-i
“ Market Mix”
c) 1-ii; 2-iii; 3-ii
a) Philip Kotler b) Stephen Morse
d) 1-iii; 2-i; 3-ii
c) Neil Borden d) Neilsen
9. The marketing concepts i­nvolves______.
5. Assertion (A): Marketing is the ­performance
a) Production Orientation
of buying activities from producer to
b) Sales Orientation
­ultimate user.
c) Consumer Orientation
Reason (R): Selling is concerned with
d) All of the above
putting the goods into the hands of the
­
­buyers. 10. The role of the marketer includes _____.
a) Both A and R are individually true a) Instigator
b) Both A and R are false b) Innovator
c) A is true but R is false c) Integrator
d) A is false but R is true d) All of the above

6. Assertion(A): In barter system the goods

are exchanged against goods, without any ANSWERS
other medium of exchange like money. 1 d 2 c 3 d 4 c 5 a
Reason(R): Customers’ importance was 6 d 7 c 8 d 9 d 10 d
­realized but only as a means of disposing
of goods produced. II. Very Short Answer Questions:
a) A is true but R is false
b) A is false but R is true 1. Define Market.
c) Both A and R are individually true and R is the According to Pyle, “Market includes both place
correct explanation of A and region in which buyers and sellers are in free
d) B oth A and R are individually true but R is not the ­competition with one another”
correct explanation of A
2. What is meant by World Market?
7. Match the following in Column I and World market is one where the buyers and sellers of
­Column II with given codes: goods are from different countries, i.e ­involvement
Column I Column II of buyers and sellers beyond the boundaries of a
1. Consumer (i) Advantage nation.
2. Product (ii) Profit
3. Earning (iii) Development III. Short Answer Questions:
4. Competitive (iv) Satisfaction
a) 1-ii; 2- i; 3-iii; 4-iv 1. What is meant by future market?
b) 1-ii; 2-iii; 3-iv; 4-i ™™ The markets where the contracts are made over
c) 1-iv; 2-iii; 3-ii; 4-ii the price for future delivery.
d) 1-iii; 2-I; 3-iv; 4-ii ™™ The dealing and settlement takes place on
­different dates.
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XII Std - Commerce
2. What do you mean by Bullion market?
™™ The type of market deals with the purchase or
sale of gold and silver is known as bullion market.
™™ Examples of bullion markets are Mumbai,
Kolkatta, Kanpur bullion markets.
IV. Long Answer Questions:
1. What are all the items can be marketed?
(Any Five)
i) Goods:
™™ Manufactured Goods are the main ­constituent
of marketing endeavor in all the countries
across the world.
™™ Companies and individuals market goods like
consumer durables, electronic products, ma-
chineries, Computers and its software and
hardware etc.,
ii) Services:
™™ Not only physical goods can be marketed.
Even the services of many organizations
can be marketed to the consumers ­namely
­banking, insurance, finance, hospitality,
­tourism, professional consultations etc.,
iii) Experiences:
™™ The unique and varied experiences ­pertaining
to a place or a park or an event can be
­marketed under this concept.
Chapter - 13  Concept of Marketing and Marketer
™™ For eg. Amusement Park, Theme Park,
Mountaineering etc.,
iv) Events:
™™ The event marketing aims at promoting
and marketing of special events, shows,
­exhibitions, fairs, performances, sports events
like World Cup, Olympics, T20 etc.,
v) Persons:
™™ The marketing of goods and services through
celebrities is a successful formula for creating
a brand relationship with the consumers.
™™ The endorsement for the brand of a company
can be carried down by Cinema Stars, Sports
Stars, Musicians and eminent personalities.
2. What are the functions of Marketer?
™™ Gathering and analyzing market information.
™™ Market planning
™™ Product designing and development
™™ Standardization and Grading
™™ Packaging and Labelling
™™ Branding
™™ Customer support services
™™ Pricing of products
™™ Promotional and selling
™™ Physical distribution
™™ Transportation
™™ Storage and warehousing
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UNIT-V
CHAPTER MARKETING AND MARKETING MIX
14
Introduction
The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or ­product
in the market. Marketing is indeed an ancient art. The traditional objective of marketing had been to make
goods available at placed where they are needed. Marketing mix involves many crucial decisions relating to each
­element of the mix. It is applicable not only to business organizations but also to non-business organizations,
such as clubs and educational institutions. The 4 Ps of marketing namely Product, Price, Place and Promotion is
the foundation model of marketing mix. This chapter clearly defines the Evolution of marketing and the process
of marketing mix.

I. Choose the Correct Answers II. Very Short Answer Questions:

1. The initial stage of marketing system is 1. Define Marketing Mix.
______ “Marketing mix is a pack of four sets of variables
a) Monopoly system b) Exchange to Money namely product variable, price variable, promotion
c) Barter system d) Self producing variable, and place variable”.

2. Who is supreme in the Market?
a) Customer b) Seller
c) Wholesaler d) Retailer
3. In the following variables which one is not
the variable of marketing mix?
a) Place Variable b) Product Variable
c) Program Variable d) Price Variable
4. Marketing mix means a marketing program
that is offered by a firm to its target _____
to earn profits through satisfaction of their
wants.
a) Wholesaler b) Retailer
c) Consumer d) Seller
5. Which one is the example of intangible
­product?
a) Education b) Mobiles
c) Garments d) Vehicles
ANSWERS
1 c 2 a 3 c 4 c
2. Give any two internal factors affecting the
price of product/service.
Factors affecting price product/service:
1. Marketing Objectives
2. Marketing Mix Strategy
3. Define Product.
According to Philip Kotler, “ A product is anything
that can be offered to a market for attention, ac-
quisition, use or consumption that might satisfy a
want or a need”.
III. Short Answer Questions:
1. What are the Objectives of marketing?
Objectives of marketing:
The following are the objectives of marketing:
i. Intelligent and capable application of modern
­marketing policies.
ii. To develop the marketing field.
iii. To develop guiding policies and their
­implementation for a good result.
5 a iv. To suggest solutions by studying the problems
­relating to marketing.

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XII Std - Commerce Chapter - 14  Marketing and Marketing Mix
v. T  o find sources for further information ­concerning 4. What do you mean by marketing mix?
the market problems. ­Describe any two elements.
vi. 
To receive existing marketing function, if Marketing mix refers to two things:
­shortcomings are found. ™™ A list of important elements or ingredients that
vii. To take appropriate actions in the course of make u p the marketing programme and
­action. ™™ The list of forces having bearing on marketing
operations.
2. What is need for market and explain the
Elements of marketing of mix:
concept of marketing?
i. Product:
Need for market:
™™ Product is the main element of marketing.
i. To exchange (barter) goods and services.
™™ Without a product, there can be no marketing.
ii. To adjust demand and supply by price m­ echanism.
™™ According to Philip Kotler, A product is ­anything
iii. To improve the quality of life of the society.
that can be offered to a market for attention,
iv. To introduce new modes of life.
acquisition, use or consumption that might
­
v. To develop product by enhancing market.
satisfy a want or a need
ii.Price:
The following are the points involved in the concept
™™ Price is the value of a product expressed in
of marketing:
­monetary terms. It is the amount charged for
™™ What I can sell? – The marketer has to decide
the product.
what he/she can sell but not try to sell what
™™ According to philopkotler, “price is the amount
they can make.
of money charged for a product or service,
™™ Shall I first create products? – The first aim of
or the sum of the values that consumers
the marketer is to create a customer and not
­exchange for the benefits of having or using
to create products.
the product or service”.
™™ Shall I love my products? – The marketer has
to love the customers and not the products.
™™ Who is supreme in markets? – According to IV. Long Answer Questions:
this concept the customer is supreme or king
1. Discuss about the evolution of marketing.
of the market.
i. Barter system: The goods are exchanged
™™ Who will shape my decisions?- This concept
against goods, without any other medium of
clearly describes that the customers ­preference
­exchange, like money.
shape the marketers decisions.
ii. P  roduction orientation: This was a stage
3. What are the factors affecting price of where producers, instead of being concerned
­product? with the consumer preferences, concentrated on
the mass production of goods for the p ­ urpose of
profit. They cared very little about the ­customers.
Marketing objectives
Marketing mix stratigies iii. Sales orientation: The stage witnessed ­major
INTERNAL Organisation consideration change in all the spheres of economic life. The
Costs
FACTORS Organisatin consideration selling became the dominant factor, without
­
any efforts for the satisfaction of the consumer
needs.
The market and demand
Competition iv. Marketing orientation : Customers ­importance
EXTERNAL Customer was realized but only as a means of disposing
Suppliers
FACTORS Legal factors of goods produced. Competition become more
Regulation factors
stiff. Aggressive advertising, personal selling,
large scale promotion etc. are used as tools to
boost sales.

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v. Consumer orientation: Under this stage
only such product are brought forward to the
markets which are capable f satisfying the
­ and creates employment opportunities for
tastes, ­ preferences and expections of the
­consumers-consumer satisfaction.
3. Narrate the elements of marketing mix.
vi. Management orientation: The ­ marketing
function assumes a managerial role to
­co-ordinate all interactions of business ­activities
with the ­objective of planning, promoting and
distributing want-satisfying products and
­services to the ­present and potential customers.
2. Why the marketing is important to the
­society and individual firm Explain.
Marketing is important to the society and individual
firm because of the following reasons:
a. To the society:
™™ Marketing is a connecting link between the
consumer and the producer.
™™ Marketing helps in increasing in increasing the
living standard of people.
™™ Marketing helps to increase the nation’s
income.
™™ Marketing process increases employment
opportunities.
™™ Marketing creates modern cultivators.
™™ Marketing removes the imbalances of supply
by transferring the surplus to deficit areas,
through better transport facilities.
™™ Marketing helps to maintain economic ­stability
and rapid development in underdeveloped or
developing countries.
™™ Marketing includes all activities in the creation
of utilities-form, place, time and possession.
™™ A reduction in the cost of marketing is a direct
benefit to society.
™™ Marketing adds value of goods by changing
their ownership and by changing their time
and place of consumption.
b. To the individual firms
™™ Marketing generates revenue to firms.
™™ Marketing section of a firm is the source of
information to the topo management for
­ iv. Promotion
­taking overall decisions on production.
™™ Marketing and innovation are the two ­basic
functions of all businesses. The world is
dynamic.
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XII Std - Commerce
™™ Marketing facilities the development of
­business and creates employment of business
people.
Elements
Marketing Mix
Promotion Product
Promotion Price
Elements of marketing of mix:
i) Product:
™™ Product is the main element of marketing.
™™ Without a product, there can be no marketing.
™™ According to Philip Kotler “A product is ­anything
that can be offered to a market for attention,
acquisition, use or consumption that might
satisfy a want or a need”.
ii) Price:
™™ Price is the value of a product expressed in
monetary terms. It is the amount charged for
the product.
™™ According to Philip Kotler, “price is the amount
of money charged for a product or service,
or the sum of the values that consumers
­exchange for the benefits of having or using
the product or service”.
iii. Place (Physical Distribution)
™™ The fourth element of product mix, ­ namely
place or physical distribution facilitates the
movement of products from the place of
­manufacture to the place of consumption at
the right time.
™™ The qualified product will be wasted if it is not
transferred to the consumers.
™™ The special features and benefits should be
conveyed to the potential consumers.
™™ Most of the consumers become customers
on the basis of the special features of the
products.
XII Std - Commerce
4. What is marketing?
™™ Marketing is one of the business functions that
all activities that take place in relation to markets
for actualize potential exchanges for the purpose
of satisfying human needs and wants.
™™ Marketing is the performance of buying activities
that facilitate to ore flow of goods and services
from producer to ultimate user.
™™ Selling is basically concerned with putting the
goods into the hands of the buyers for a price,
but marketing is much wider than selling.
™™ “Marketing is what a marketer does,”
™™ Marketing is one of the oldest professions in the
world.
™™ The traditional idea of marketing was l­ater
on changed by shifting the emphasis from
­“exchange” to “satisfaction of human wants”.
™™ Different authors tried to give suitable definition
from their viewpoint.
™™ Some of the authors emphasis on the ­traditional
view of producing goods and finding out
customers, others emphasis on the modern
­ c) Satisfying customer needs
view that marketing must first find out what
customers want and then plan a product to
­
­satisfy the wants.
5. State to advantage of warehousing.
Warehousing
Warehouses create time utility by storing the goods
throughout the ea and releasing them as and when
they are needed.
Advantages of Warehousing:
™™ It helps in protection and preservation of goods
™™ It facilitate the regular flow of goods.
™™ Warehouses enables the continuity in
production.
™™ The convenient location of warehouses helps
in reducing the cost.
™™ It is useful for small businessmen.
™™ It creates employment.
™™ Warehouses facilitates the sale of goods
™™ Warehouses reduces the risk of loss.
6. How market information is helpful to
­invention of new product in the market?
™™ By knowing the market information the pro-
ducer can know well about the attitude of the
customers.
Chapter - 14  Marketing and Marketing Mix
™™ With the knowledge of the taste and
­preferences of the consumer the product may
be designed as per the wish of the consumers.
™™ By knowing the sufficient information the cost
of a product will be decided.
Additional Questions:
I. Choose the Correct Answers:
1. After considering the following arrange
them in correct sequences:
i. Pricing objectives ii. Pricing Methods
iii. Pricing Strategies iv. Pricing decisions
a) i,iii,ii,iv b) i,iv,iii,ii
c) ii,i,iv,iii d) iv,ii,iii,i
2. Marketing must be understood in a new
sense that can be characterized as ______.
a) Get there first with the most
b) Management of youth demand
d) Telling and selling
3. ______________ means classification
of standardized product into certain well
­defined classes or groups.
a) Gradation b) Segmentation
c) Standardization d) Specification
4. Anything that can be offered to a market for
attention, acquisition, use or ­consumption
that might satisfy a want or need is called
_____________.
a) demand b) Idea
c) Product d) Service
5. When a company review sales, costs and
profit projections for a new product to
find out whether these factors satisfy the
­company’s objectives, they are in which of
the following new-product development
stages?
a) Business analysis
b) Commercialization
c) Concept development
d) Marketing strategy development
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Chapter - 14  Marketing and Marketing Mix XII Std - Commerce
6. Highest percentage of ideas for new and exchanging offererings that have value for
­products originates from which of the customers,clients, partners and society.
­following sources? d) 
Marketing is the last step in the chain of
a) Competitors b) Customers ­commerce where a buyer exchanges cash for a
c) Employees d) All the above sellers good or service, or the activity of trying to
bring this about.
7. Marketing is a process which aims at
________. 13. Assertion (A): Customers buy products
a) Production Reason(R): Consumers use products
b) Profit making (a) (A) is correct, but (R) is wrong.
c) satisfaction of customer needs (b) Both (A) and (R) are correct.
d) Selling product (c) (A) is wrong, but (R) is correct.
(d) Both (A) and (R) are wrong.
8. _______________ is the father of Modern
Marketing 14. Statement (A): Selling is important
a) Peter Drucker b) Philip Kotler not merely for increasing the profits of
c) Lester Wunderman d) None of the above ­businessmen, but also for making goods
and services available to the consumers in
9. ___________ are the form of human needs society.
take as shaped by culture & individual Statement (B): It is the process ­whereby
­personality. goods and services finally flow to the
a) Wants b) Demands
­consumers who need them and the firm
c) Needs d) Social needs
performs its function of distributing its
10. Which of the following risks are bore by a products among consumers.
marketer? Code:
a) Time risk b) Human risk (a) Statement A and statement B both are true
c) Political risk d) all the abov (b) Statement A is true but statement B is not true
(c) 
Statement A is true but statement B is the
11. Assertion(A): Selling is the major ­objective ­reason of statement A
of any marketing activity in the world (d) Statement A and B are true, but statement B is
Reason(R): Marketing completes with the not the reason of statement A
real sale of goods and services bought or
acquired by the seller. 15. Assertion (A): High customer ­expectations
(a) (A) is correct, but (R) is wrong. lead to dissatisfaction as product
(b) Both (A) and (R) are correct. ­performance never matches them.
(c) (A) is wrong, but (R) is correct. Reason (R): Product performance is always
(d) Both (A) and (R) are wrong. customer specific.
Codes:
12. Which of the following is the most correct (a) Both (A) and (R) are correct.
statement? (b) Both (A) and (R) are incorrect.
a) T he different activities includes in the delivery of (c) (A) is correct, but (R) is incorrect.
goods and services from producer to the u ­ ltimate (d) (R) is correct, but (A) is incorrect.
consumers or users is known as marketing.
b) Marketing is to ensure that the product is ANSWERS
­easily and effectively moved from the point of
1 b 2 c 3 a 4 c 5 a
­production to the target market ensures that the
6 b 7 c 8 b 9 d 10 d
product can be easily accessed by customers.
c) Marketing is the activity, set of institutions and 11 b 12 c 13 b 14 c 15 b
process for creating, communicating, delivering

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XII Std - Commerce
II. Very Short Answer Questions:
1. What is meant by Barter System?
The exchange of goods against goods without any
other medium of exchange like money is known as
barter system.
2. What is meant by Grading?
Grading means classification of standardized prod-
ucts into certain well defined classes.
3. What is meant by Branding?
Branding means giving a name or symbol to a
product in order to differentiate it from competitive
products.
Chapter - 14  Marketing and Marketing Mix
™™ It involves the holding and preservation of goods
from the time they are produced to the time
they are consumed.
™™ There is a time gap between the production and
consumption of goods.
™™ Therefore there is need for storing so as to make
the goods available to the consumers and when
they are required.
2. Write a note on packing.
™™ Packing means wrapping and crating of goods
before distribution.
™™ Goods are packed in packages or containers in
order to protect them against breakage, leakage,
spoilage and damage of any kind.

III. Short Answer Questions: IV. Long Answer Questions:

1. What is meant by Storage? 1. Explain the functions of marketing

™™ Storage is the one among the Physical Supply According to Professors Clark and Clark the ­following
function of marketing process. are the functions of marketing.

1. Functions of Exchange:
  Exchange refers to transfer of goods and services for money’s worth. This process can be divided into (a)
Buying and assembling and (b) selling
2. Functions of Physical Supply
  There are two important functions under this classification:
    i. Transportation ii. Storage and ware housing.
3. Facilitating Functions
  There are the functions which help or facilitate in the transfer of goods and services from the producer to
the consumer. They are not directly connected with the transfer of goods. Under this category the following
functions are included.

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Chapter - 14  Marketing and Marketing Mix
3. Write a note on Facilitating functions of
marketing:
i) Financing:
  Financing play a crucial role in the marketing.
­Without finance the activities of the markets
cannot be taken place. The finance may be
­classified into the following:
   a. Long-term finance
   b. Medium-term finance
   c. Short-term finance
ii) Risk Bearing:
  The marketers always bear the risk. The risk
taking ability of the marketer makes an incre-
ment in the process of earning profit. The follow-
ing are the risks involved in the marketing.
   a. Time risk
   b. Place risk
   c. Competition risk
   d. Risk of change in demand
   e. Risk arising from natural calamities
   f. Human risks
   g. Political risks
iii. Market Information: According to Clark and
Clark market information means “all the facts,
estimates, opinions and other information used
in marketing of goods”.
XII Std - Commerce
iv. S tandardization: Standardization means
establishment of certain standards based on
­
intrinsic qualities of a commodity. The q
­ ­ uality
may be determined on the basis of various
­factors like size, colors, taste, appearance etc.
v. G rading: Grading means classification of
­standardized products in to certain well defined
classes.
vi. B
 randing: Branding means giving a name or
symbol to a product in order to differentiate it
from competitive products.
vii. Packing: Packing means wrapping and crating
of goods before distribution. Goods are packed
in packages or containers in order to protect
them against breakage, leakage, spoilage and
damage of any kind.
viii. Pricing: Pricing is perhaps the most ­important
decision taken by a businessman. It is the
­decision upon which the success or failure of an
enterprise depends to a large extent. ­Therefore,
price must be determined only ­after taking all the
relevant factors into ­consideration.

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CHAPTER RECENT TRENDS IN MARKETING
15
Introduction
The market scenario in the world today is changing rapidly. Customers of today are global and they exhibit
international characteristics. Due to the developments of information technology, rapid means of transportation,
liberalization and mobility of people across the world, their buying habits has been forwarded. Hence the mar-
keters are turning from transaction thinking to relationship building and customer retention. The emphasis will
be given to Quality, Value and Customer Satisfaction. This chapter deals with the recent trends in marketing.

8. Pure play retailers are called

I. Choose the Correct Answers
1. Selling goods/ services through internet is
a. Green marketing b. E-business
c. Social marketing d. Meta marketing
2. Which is gateway to internet?
a. Portal b. CPU
c. Modem d. Webnaire
3. Which one represents a cluster of
­manufacturers, content providers and on-
line retailers organized around an activity?
a. Virtual mall b. Association
c. Metomediary d. Portal
4. Social marketing deals with:
a. Society b. Social class
c. Social change d. Social evil
5. Effective use of social media marketing
­increase conversion rates of _____
a. Customer to buyers
b. Retailer to customers
c. One buyer to another buyer’s
d. Direct contact of marketer
6. A company’s products and prices is visually
represented by
a. Shopping cart b. Web portal
c. Electronic catalogue d. Revenue model
a. Market creators b. Transaction brokers
c. Merchants d. Agents
ANSWERS
1 b 2 c 3 c 4 c
5 a 6 c 7 a 8 b
II. Very Short Answer Questions:
1. What is E business?
™™ Electronic business (e-business) via, web, inter-
net, intranets, extranets or some combination
thereof to conduct business.
™™ If all the business transaction carried out
through internet and other online tools is called
E-business.
2. What is green marketing?
™™ Green marketing implies marketing
­environmentally friendly products.
™™ It refers to holistic marketing concept with
growing awareness about the implications of
­
­global ­warming, non-biodegradable solid waste,
harmful impact of pollutants etc.
™™ Green marketing is also known as e ­ nvironmental
marketing, ecological marketing eco-friendly
­marketing and sustainable marketing.

7. Green shelter concept was introduced by 3. What is service marketing?

group: ™™ A service is any activity or benefit that one party
a. ACME b. Tata can offer to another which is essentially ­intangible
c. Reliance d. ICI and which does not result in the ownership of
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Chapter - 15  Recents Trends in Marketing
anything like business and professional services
insurance, legal service, medical service etc.
™™ Service marketing is a specialized branch of
marketing.
™™ Service marketing denotes the processing of
selling service goods like telecommunication,
­ ™™ E-tailing is a business to consumer (B2C)
banking, insurance, car rentals, healthcare,
­tourism, professional services, repairs etc.,
™™ The service products are mostly intangible,
6. What is Social marketing?
­inseparable from service provider .
4. Define E-Marketing.
“E-marketing is achieving marketing objectives
through use of digital technologies like ­internet, word
wide web, email, wireless media and ­management
of digital customer data and ­ electronic customer
management systems (E-CRM)”
5. What is E-Tailing?
™™ E- tailing or electronic retailing refers to selling of
goods and services through a shopping website
(internet) orthrough virtual store to the ultimate
consumer.
XII Std - Commerce
™™ The customer buys the product by paying
through credit card or other methods mentioned
at the shopping website.
™™ The customer receives the product at their
­preferred address through courier service.
­transaction model.
™™ E-tailing is also called online retailing.
™™ Social marketing is a new marketing tool.
™™ It is the systematic application of marketing
­philosophy and techniques to achieve specific
behavioral goals which ensure social good.
™™ For example, this may include asking people not
to smoke in public areas, asking them to wear
seat belts or persuading them to follow speed
limits.
™™ It helps to eradicate social evils that affect the
society and quality of life.

III. Short Answer Questions:

1. What is B2B and B2C type of E-Commerce?

Sl.No B2B (Business To Business) B2C(Business To Consumer)

1. The selling of goods and services between two busi- The transaction in which business sells the
ness entities is known as business to business goods and services to the consumers is called
business to consumer
2. B2B starts when the raw material is purchased and When the product is purchased or the service
ends till it is distributed to the showroom is obtained it comes to an end
3. Focus to be given to the relationship between busi- Focus will be given to the products
ness entities
4. The business relationship will be last for long period It will last for only short duration
5. Volume of merchandise sold is large Volume of merchandise sold is small

2. Explain the importance of social marketing.

™™ Social marketing is a new marketing tool.
™™ It is the systematic application of marketing philosophy and techniques to achieve specific behavioural goals
which ensure social good.
™™ For example, this may include asking people not to smoke in public areas, asking them to wear seat belts or
persuading them to follow speed limits.
™™ The primary aim of social marketing is ‘social good’ such as anti-tobacco, anti-drug, anti-pollution, ­anti-dowry,
road safety, protection of girl child, against the use of plastic bags.

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XII Std - Commerce
™™ Social marketing promotes the consumption of
socially desirable products and develops health
consciousness.
™™ It helps to eradicate social evils that affect the
society and quality of life.
Chapter - 15  Recents Trends in Marketing
™™ Expansion of market share
™™ Reduction of distribution and promotional
expenses.
™™ Achieving higher brand awareness.
™™ Strengthening database.

3. Discuss the objectives E-marketing. 4. Elucidate how E-Commerce differs from

™™ The following are the objectives of E-Marketing E-Business.

Sl.No E-Commerce E-Business

1. Trading or merchandise over the internet is known Running business using the internet is
as E-Commerce known as E-business
2. It is a subset. It is a major component of e-business It is a superset
3. It includes transactions related to money. It includes monetary as well as allied
­transactions
4. It requires a website that can represent the ­business It requires a website, CRM and ERP for
­running the business over the internet.
5. Internet network is used Internet,intranet and extranet are used.

5. Explain in detail about Niche marketing

Niche marketing:
™™ Niche marketing denotes a strategy of directing all marketing efforts towards one well defined segment of
the population.
™™ Actually there is no market in niche market.
™™ It is found by company, by identifying the need of customers which are not served or under served by the
competitors.
™™ The company which identified niche market develops solution to satisfy the needs of niche market.
™™ A niche market does not mean a small market, but it involves specific target audience with a specialized
offering.
™™ It aimed at being big fish in a small pond instead of being a small fish in a big pond.
™™ For example, there are various cinema halls across India, but there are few which have recliner seats to offer.
™™ Not everybody wants to watch a movie by paying 5x-6x times the cost of a normal ticket. T
™™ he sports channels like STAR Sports, ESPN, STAR Cricket and Fox Sports target the niche market of sports
enthusiasts.

IV. Long Answer Questions:

1. Explain in detail how traditional marketing differ from e-marketing.
Sl.No E-marketing Traditional marketing
1. It is very economical and faster way to ­promote It is very expensive and takes more time to ­promote
the products. product.
2. It is quiet easier for promoting product globally It is very expensive and time consuming to p
­ romote
in the short time product/service under traditional marketing.
3. E-business enterprises can expand their It needs more man power.
­operation with minimum manpower.
4. In this marketing product can be sold or bought That is not possible in traditional marketing.
24*7,round the year with minimum manpower

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Chapter - 15  Recents Trends in Marketing
2. Explain advantages and disadvantages of
e-tailing.
Advantages:
™™ E-tailers are convenient whereby consumers
can shop from the comfort of their homes at
any time of the day.
™™ Buy online and pick up in the store allows con-
sumers to have the best of both worlds.
™™ Infrastructure costs are lower for companies
that operate electronic retailing versus physi-
cal locations.
™™ Companies can move products faster and
reach more customers online compared to
physical locations.
™™ E-tailing allows companies to close unprofit-
able stores boosting their profitability.
4. Compare the concept of social marketing with service marketing.
Sl.No Social Marketing
1. It places emphasis on the long term well being of society It is the action of doing something for
as a whole
2. The focal point is society
3. It is a combination of consumer wants or needs, company It is intangible in nature. It is a
requirements and the long term good of society.
5. Discuss any two new methods of ­marketing
with it’s advantages.
1. Viral Marketing:
™™ Viral marketing is marketing technique that
impels the users to pass on a marketing mes-
sage to other users, creating a potentially
exponential growth in the message’s visibility
and effect.
™™ Viral marketing is able to generate interest
and the potential sale of a brand or product
through messages that spread quickly like a
virus from person to person.
™™ Messenger message and the environment
are vital element indispensable in ­spreading
message widely across various ­ distance
Hotmail Company owned by Microsoft
promote the services and advertisement
­ ™™ In this case ‘Y’ company promote its brand at
message instantly.
™™ The most widespread example in recent
times is the creation of moving, surprising
or spectacular videos on YouTube, which are
114 SURYA
XII Std - Commerce
Disadvantages:
™™ Creating and maintaining an e-tailing website
can be expensive
™™ Infrastructure costs can be substantial if
warehouses and distribution centers need to
be built to store and ship the products.
™™ Consumers may have a lack of trust with
shopping on an e-tailer’s website
™™ E-tailing doesn’t provide consumers with the
experience shopping that brick-and-mortar
stores offer
™™ Describe the various strategies pursued in
­recent day’s marketers.
™™ There is a developing generic competitive
strategy followed nowadays.
™™ It consists of three aspects: they are Superior
skills, Superior resources, Superior positions.
Service Marketing
someone or something
The focal point is those who are all in
need of service
­combination of consumer wants.
then shared on Facebook, Twitter and other
channels.
2. Ambush Marketing
™™ Ambush marketing technique is a new
technique whereby a particular advertiser
­
seeks to connect his product to the event in
the mind of potential customer without paying
sponsoring expenses to the event.
™™ In other words it is a method of building
brands in covert ways.
™™ For example X has sponsored a football event
to promote his brand.
™™ Every time camera zooms on reference, a
group of people sitting on the bench wearing
‘Y’ company brand name imposed shirt comes
into focuses.
X’s companies expenses.
™™ Bigger companies engage in ambush
­marketing tactics to undermine official event
sponsors.
XII Std - Commerce Chapter - 15  Recents Trends in Marketing
II. Very Short Answer Questions: in turn creates buzz about the brand on shirts it
create a memorable experience in the mind of
target audience which triggers good responses
1. What is meant by referral marketing?
to sales.
™™ Referral marketing is the method of promoting
™™ It is suited to small companies which cannot set
products or services to new customers through
apart big advertisement budget.
referrals.
™™ Referral marketing is refer to spreading the word
about a product or service through existing
IV. Long Answer Questions:
customers of business enterprises rather than
through traditional advertising. 1. Write about Multilevel Marketing:
™™ Word-of-mouth marketing, which occurs when ™™ Multilevel Marketing is the marketing strategy
others tell each other about a business, is also wherein the direct sales companies encourage
considered to be a form of referral marketing. its existing distributors to recruit new distributors
to facilitate the sale of goods and services.
2. What is meant by content marketing? ™™ The recruits are called as the participant’s
™™ Content marketing is said to be the art of “Downline” or distributor’s “Downline”.
communicating with customers and prospects
­ ™™ Example, Tupperware, and Amway are the
without selling. direct sales companies that use the multilevel
­
™™ The Content Marketing institute calls it marketing.
­non-interruption marketing. ™™ The multilevel marketing is also called as a net-
™™ Under this concept products/ services are work marketing, referral marketing or pyramid
­presented impressively to target market which selling.
respond to the content delivered in the form of ™™ For instance ‘A’ sells to ‘B’ a product.
good sales response and greater loyalty. ™™ In these sales ‘A’ gets commission on sale to ‘B’
who in turn sells to ‘C’, D, and E.
3. What is a commodity Exchange?
™™ A gets certain percentage commission on B’s
™™ A commodity exchange is an organized and
sales to C,D, and E.
regulated market that facilitates the purchase
­
and sale of contracts whose values are tied to
the price of commodities (e.g. crude oil, natural
gas, copper and gold).
™™ Typically, the buyers of these contracts agree to
accept delivery of a commodity, and the sellers
agree to deliver the commodity
www.nammakalvi.org
III. Short Answer Questions:
1. Discuss Guerrilla Marketing:
™™ The concept of Guerrilla Marketing was invented
as an unconventional system of promotions that
relies on time, energy and imagination rather
than a big marketing budget.
™™ Guerrilla marketing represents an advertisement
strategy to promote products/ services on streets
or other public places with monkey like shopping
malls, parks beach etc.,
™™ Consumers/ customers are taken by surprise to
make a big impression about the brand which

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