Class 12 Business Studies Chapter 11 Notes

Class 12th Commerce NCERT of Business Studies is a collection of great chapters that aims to enhance knowledge in various aspects of business and organisation. All key subjects, such as the definition of marketing, characteristics of marketing, functions of marketing, marketing mix, parts of the marketing mix, and so on, are covered in detail in Business Studies Class 12 Chapter 11 Notes. 

Students may use the Chapter 11 Business Studies Class 12 Notes to help them understand all of the important ideas discussed in this chapter. The revision notes are written in an easy-to-understand format to help pupils study more effectively. 

Business Studies Class 12 Notes Chapter 11 Marketing is provided with very simple language and step-by-step explanations. These notes are beneficial for students in quickly understanding the chapter. Not limiting themselves to just Class 12 Business Studies Chapter 11 Notes, students may access several additional study materials on the Extramarks website, such as CBSE revision notes, CBSE sample papers, CBSE previous year question papers, and more.

Key Topics Covered in Class 12 Business Studies Chapter 11 Notes

The key topics covered under Class 12 Business Studies Chapter 11 Notes include:

MARKET

The term “market” refers to a venue where buyers and sellers come together to undertake transactions involving the exchange of products and services. The word market is obtained from the Latin word “marcatus,” which means “to trade.” Markets are divided into two types based on the type of goods. Cotton, grain, and flower markets are just a few examples. They are sometimes divided into two groups based on quantity. Consider the wholesale and retail markets.

On the other hand, the term market has taken on a new connotation in modern times. All prospective customers of goods or/and services are now included. Register with Extramarks to get full access to Class 12 Business Studies Chapter 11 Notes and exclusive information about the upcoming examinations.

MARKETING

Marketing is referred to as “a human activity aimed at satisfying needs and desires through an exchange process.” -Philip Kotler

The process of engagement between customers and sellers with the goal of exchanging products and services is referred to as marketing. Extramarks Class 12 Business Studies Chapter 11 Notes provides an in-depth explanation of the subject’ Marketing’.

Marketing is a much subjective term that refers to various actions that take place throughout the exchange of products and services between customers and sellers.

Planning, creating the product, packing and labelling the product, standardising, branding, warehousing, transportation, advertising, pricing, and distribution are all examples of marketing activities. It also covers post-sale operations like customer service and feedback.

FEATURES OF MARKETING

Class 12 Business Studies Chapter 11 Notes on the Extramarks website provide students with a pointwise explanation of the features of marketing.

1. Needs and Wants: 

• Individual and organisational needs and desires are the focus of marketing.
• Needs: It is a state of feeling deprived of something unrelated to a specific commodity.
• Wants: Some elements, such as culture, personality, and religion, determine human wants.
• In a nutshell, a marketer’s duty is to understand consumers’ requirements and offer goods and services that meet those demands.

1. Market Offering: Market offering means a complete offer for a product or service by specifying its features:

• Shape
• Size
• Quality
• Taste 
• Colour
• It also defines the specific outlet or place where the goods or service can be obtained.
• The term “ideal” refers to a market offering established after analysing the needs and preferences of clients.

1. Customer Value:

• Buyers and sellers trade products and services as a result of marketing.
• In order for customers to purchase a product, the product’s value must outweigh the cost/price of the product.
• Customers will choose your goods over rivals if the marketer adds value to them.

1. Exchange Mechanism:

• Marketing is based on an exchange system, which means that items and services are traded for money or a valuable thing.
• For an exchange to take place, the following requirements must be met:

•  There are two or more parties present, such as the buyer and the vendor.
• Each side should give the other something of worth.
• There should be effective communication between the parties.
• Each side should have the freedom to accept or reject the offer, i.e. the transaction should be at will.
• Each side has complete discretion over whether or not to accept or reject the other’s offer.

WHAT CAN BE MARKETED?

• Organisation
• Events
• Information
• Experience
• Properties
• Person
• Palace
• Services
• Ideas
• Physical product

Extramarks provides Class 12 Business Studies Chapter 11 Notes that give students pointwise point explanations of the chapter in detail. Browse through Extramarks for these handy notes.

A MARKETER

• A marketer is someone who goes above and beyond to understand the requirements of customers, present the product or service, and persuade them to buy in the exchange process.
• Sellers, as marketers, are the ones who ensure that customers are satisfied. Customers’ wants and wishes are met by making products/services available and selling them to them.
• Marketers’ actions include everything they do to make it easier for producers and customers to exchange products and services.

MARKETING MANAGEMENT

As per Extramarks Class 12 Business Studies Chapter 11 Notes, the administration of marketing functions is referred to as marketing management. It is defined as the process of planning, coordinating, and regulating operations related to the marketing of services and goods in order to fulfil consumer wants and achieve corporate objectives.

“Marketing management is defined as the art and science of selecting target markets and acquiring, retaining, and growing customers by creating, delivering, and communicating superior customer service.”  -Philip Kotler

STEPS OF MANAGING MARKET

The steps of managing a market include

• Choosing a market to target.
• Producing items that fulfil the requirements and interests of customers to create demand.
• To deliver higher-value products/services to prospective consumers and convey these values to other potential purchasers to encourage them to acquire the product/service.

Extramarks provides Class 12 Business Studies Chapter 11 Notes to students with pointwise explanations of the chapter in detail. Browse through Extramarks for these detailed notes.

MARKETING AND SELLING

A brief explanation of Marketing and Selling.

• Marketing: It encompasses a wide range of activities, of which selling is simply one. Before making a sale, a marketer must consider the product’s nature, style, pricing, and the distribution channels and promotional mix most suited to the target market.
• Selling: The selling of any product or service through advertising, marketing, and salesmanship is referred to as selling. The goods are being transferred from the seller to the buyer. Selling’s fundamental purpose is to convert a product into cash.

DIFFERENCE BETWEEN MARKETING AND SELLING

The Class 12 Business Studies Chapter 11 Notes gives a detailed difference between marketing and selling. 

MARKETING MANAGEMENT PHILOSOPHIES

Class 12 Business Studies Chapter 11 Notes provide handy notes to students with a detailed explanation of the Marketing Management philosophies:

1. Production concept:

• Because there were fewer makers of industrial products in the early years of the Industrial Revolution, demand for these commodities was higher than supply.
• It was not difficult to sell; anyone who could produce could sell.
• As a result, the primary focus of corporate activity shifted to commodities manufacturing.
• Large-scale production can increase profits while lowering the average cost of production.
• Consumers choose things that are readily available and reasonably priced.
• The two most significant components that contribute to corporate success are improving production, which leads to increased availability of goods and selling them at a reasonable price.
• As a result, the primary focus was on increasing the efficiency of manufacturing and delivery.

1. Product concept: 

• The focus on manufacturing capacity resulted in an increase in supply over time.
• More supply and cheaper prices were insufficient to secure increasing sales and the firm’s continued existence and growth.
• With the growth in product availability, customers’ expectations shifted, and they began asking for higher-quality items with more features and more excellent performance.
• The focus turned away from quantity and toward quality.
• Profits might be increased by improving the product.
• As a result, the central focus is on product quality and the inclusion of new features.

1. Selling concept:

• Over time, changes in the marketing environment lead to increasing rivalry among sellers.
• As the number of vendors supplying quality items expanded, emphasising product quality and availability did not secure the firm’s survival and development.
• It was now necessary to attract clients and persuade them to purchase the merchandise.
• Firms must employ aggressive marketing and promotional strategies to sell items since it has been found that customers would not buy things unless they are convinced and encouraged to do so.
• Advertising, personal selling, and sales promotion, among other promotional activities, have proven effective in selling items.
• As a result, the central focus is on selling manufactured items through intense advertising strategies.

1. Marketing concept:

• Customer to this notion, customer satisfaction is the most crucial component that affects an organisation’s success.
• In order to excel in the long run, a company must first understand the current requirements of potential purchasers and then effectively meet those demands.
• Customer happiness is the fundamental goal of every firm.
• The following points summarise the marketing idea in a nutshell:
• The company must clearly identify the target client base and the market. All of the company’s marketing efforts must be focused on that specific target niche.
• It should strive to produce goods and services that are tailored to the needs of consumers and that meet those demands.
• It must ensure that the product can better meet the demands of customers than rivals’ products.
• The primary goal of all actions should be to generate profit.
• According to the marketing principle, if businesses focus on customer pleasure, marketing would be more efficient and successful. Selling would be simple if items were tailored to the demands of clients.

1. Societal concept:

• This notion takes into account societal issues such as pollution, deforestation, resource scarcity, and overpopulation, among others.
• All commercial actions that fulfil human desires and needs but are harmful to society’s interests cannot be justified in any way.
• While serving clients, businesses should not overlook the interests of society at large but should address questions of long-term societal welfare.
• Businesspeople must recognise and address the requirements and wants of their target market and deliver in an effective and efficient manner while also considering the long-term well-being of their consumers and society.
• The primary focus is on the demands of customers as well as the well-being of society.

Get on board with Extramarks and get access to Class 12 Business Studies Chapter 11 Notes, which will come in handy during your upcoming examination preparation.

FUNCTIONS OF MARKETING 

Class 12 Business Studies Chapter 11 Notes will prove to be valuable for students who are looking for easy and comprehensible notes. 

1. Gathering and Analyzing Market Information: 

• Fact-gathering and information analysis in a systematic manner.
• Examining the strengths, weaknesses, opportunities, and risks in a company environment.
• Customer wants and wishes are identified, purchase motives are determined, a brand name, packaging, promotional media are chosen, etc.
• Both primary and secondary sources of data are provided.

1. Product Designing and Development:

• Decisions concerning the product to be created and its qualities, such as quality concerns, packaging, new models and variants, and so on, are all part of this process.
• A good design may boost a product’s performance while also providing it with a competitive edge in the marketplace.
• Anticipate client demands and develop new items or improve existing ones to fulfil them.

1. Marketing Planning: 

• Create a marketing strategy that will help you achieve your marketing goals.
• It should include action plans for achieving these objectives.
• If a marketer wishes to grow his country’s market share in the next three years, for example, his marketing strategy should contain a plan for boosting production levels, product promotion, and so on.

1. Standardisation and Grading:

• Standardisation is the process of producing things that fulfil preset requirements in order to achieve uniformity and consistency (e.g., ISI Mark).
• Grading is the practice of grouping similar items into distinct categories depending on essential qualities such as quality, size, and so on.

1. Branding: 

• It helps to differentiate products, increase client loyalty, and increase revenue.
• The branding strategy, which defines whether each product will have its own brand name or if the same name of the brand will be used for all items, is an important decision area.

1. Packaging and Labeling:

• The process of creating and producing a package for a product that protects it from damage, spoiling, breakage and leaking is known as packaging. It also functions as a marketing tool and makes purchases easy for clients.
• The process of developing a label to be placed on a product is known as labelling. It might be as essential as a tag or as complex as detailed artwork. Colgate, Lays, and more brands come to mind.

1. Customer Support Services:

• Customer service is a very efficient way to increase potential customer purchases and build brand loyalty for a product.
• Its goal is to give the highest level of customer happiness while also increasing brand loyalty.
• Customer complaints and modifications, credit, maintenance, technical, and consumer information are just a few examples.

1. Promotion: 

• Goods and service marketing comprises telling clients about the company’s product, its characteristics, and other details and convincing them to buy the items.
• Advertising, public relations, personal selling, and sales promotion are all examples of promotional tactics.

1. Pricing of Product:

• The amount of money that buyers must pay in order to get a product is referred to as the product price.
• It has a significant impact on whether a product succeeds or fails.
• It is because the price of a product/service is linked to its demand; it should be determined after taking into account all of the elements that impact the price.

1. Physical Distribution:

• Under this function, there are two key decision areas:
  • The distribution channels or marketing intermediaries to be employed (for example, wholesalers and retailers); and the marketing intermediaries to be used.
  • The product’s physical transit from the place of manufacturing to the site of consumption.

1. Warehousing: 

• Proper product storage is essential to ensure a steady flow of items in the market.
• Storage and warehousing are used to defend against inevitable supply delays and satisfy demand fluctuations.

1. Transportation:

• The actual moving of commodities from one location to another is referred to as transportation.
• Various considerations, like the type of the product, the cost, the location of the target market, etc., should be considered when choosing a mode of transportation.

Browse Extramarks website for various resources, including Class 12 Business Studies Chapter 11 Notes. We will keep you updated with all exclusive news about the CBSE syllabus, important questions, CBSE past years’ sample papers, CBSE extra questions, and more.

ROLE OF MARKETING IN A FIRM

• In order for a company to achieve its goals, marketing is important.
• It places a high value on customer happiness, which is seen as a critical component of the company’s survival and success.
• It aids any organisation in efficiently achieving its objectives.
• It aids the company or organisation in recognising and analysing consumer demands, allowing them to produce and create products or services that meet those needs.
• It would also assist the company/organisation make items available in the market at a reasonable cost.

Register on the Extramarks website to access Class 12 Business Studies Chapter 11 Notes for revision and exam preparation.

ROLE OF MARKETING IN AN ECONOMY

• Marketing has a significant impact on the economy’s growth.
• It promotes economic growth by acting as a catalyst.
• It motivates people to do new things and start businesses that produce commodities that are in demand by customers.
• It aids in overcoming the challenges created by high prices due to production and consumption imbalances.
• It aids in the smooth flow of products by making adequate preparations for the physical distribution of items.
• It connects corporate and consumer centres, accelerating economic activity and resulting in higher incomes, more consumption, and increased savings and investment.

Class 12 Business Studies Chapter 11 Notes will help students prepare for their upcoming board examinations. Students can carefully go through these and comprehend all the concepts.

MARKETING MIX

• The marketing mix is generally referred to a company’s collection of marketing instruments that it employs to fulfil its marketing goals.
• Various marketing decisions in an organisation are influenced by various elements, some of which are controlled and others that are not.
• Controllable elements are those that the business can affect or control, such as price, branding, and advertising.
• Non-controllable variables are those that cannot be regulated at the company level, such as government policies, inflation, or commercial bank policies.
• A business regularly modifies the numerous controllable aspects in order to meet the various marketing objectives. These characteristics are essential pillars of marketing, commonly known as marketing tools.
• A company chooses the best combination and most suitable from the various available marketing tools. This blend of marketing tools used by the company is called a marketing mix. 

ELEMENTS OF A MARKETING MIX

The marketing mix is a combination of four key components. These characteristics are commonly referred to as the four Ps of marketing. Extramarks Class 12 Business Studies Chapter 11 Notes give a pointwise explanation of the same:

• Product: “Anything of value” offered for sale in the market is referred to as a product. Colgate, Dove, and more brands come to mind.
• Price: The amount of money a consumer must pay to receive a product or service.
• Place/Physical distribution: Making the goods physically available to customers at the moment of sale is known as physical product distribution.
• Promotion: Customers are informed about the items and are encouraged to buy them.

PRODUCT

Extramarks Class 12 Business Studies Chapter 11 Notes provides the concept of Product, one of four Ps, elaborately. In terms of marketing:

• A product is a collection of intangible and tangible traits with monetary worth and can be exchanged. They have the potential to meet the demands of customers. A product also comprises services in addition to physical commodities.
• A product is characterised not only in terms of its physical attributes (functional utility) but also in terms of the consumer’s happiness or utility. Client service, dealing with customer problems, and gathering feedback are all included in the package.

Extramarks Class 12 Business Studies Chapter 11 Notes provides handy detailed notes on the consumption of a product that provides satisfaction to the customer. When a consumer decides to buy a product, they are primarily concerned with the utility that will be gained by using it. A product is a collection of tools. The consumption of a product provides a client with a variety of satisfaction/benefits: 

• Functional benefits: The usefulness generated from the product’s core functionalities is referred to as functional benefits. A cooking gas range, for example, has a practical use as a cooking medium.

• Psychological benefits: The term “psychological benefits” refers to the feelings of pride and self-esteem that come with owning a product. For example, possessing a cooking gas range, which he utilises as a modern method of cooking, might provide a psychological benefit to the customer.
• Social benefits: Benefits in the form of peer approval, such as consumption or usage of a particular product, are referred to as social benefits.

Product Mix

Refers to key product quality, design, packaging, and assortment decisions, i.e. the number of products or items a given producer delivers to the market. Refer to Class 12 Business Studies Chapter 11 Notes for the details on the topic. 

Components Of Product Mix

1. BRANDING: The practice of assigning a unique name, sign, symbol, or word to a product in order to identify it. A generic name or a brand name are both acceptable options. The brand name serves to distinguish the company’s product from that of its rivals. Class 12 Business Studies Chapter 11 Notes elaborates on ‘branding’.

Terms related to Brand

• Brand: To distinguish the product from rivals’ products, it has a name, term, sign, symbol, design, or a mix of these. Parker, Raymond, and others, for example.
• Brand name: The verbal part of a brand is the element of the brand that can be spoken. For instance, Asian Paints, Uncle Chips, and so on.
• Brandmark: Part that can be recognised but not spoken. For example, Asian Paints’ Gattu or Onida’s Devil.
• Trademark: Part of which is legally protected, ensuring that no other company may use the same name or brand.

              Characteristics of a Good Brand name

• Short and simple: The name should be simple and short, easy to spell and say, and easy to remember. For Example, Pepsi and Coke.
• Self-explanatory: The name should be self-explanatory in the sense that it should convey an understanding of the product’s purpose, advantages, and attributes. Ujala, Dunkin Donuts, and other such businesses are examples.
• Unique: In every way, the name should be distinctive. It must also meet the specifications for packaging, labelling, and promotion.
• Adaptable: A brand name should be versatile in the sense that it may be used to launch new products if necessary.
• Legal protection: A brand name must be of such a kind that it may be registered and so get legal protection

                Advantages of Branding to Marketers of Goods and Services

• Helps in product differentiation: A company’s product may be distinguished from that of its rivals by branding. In this sense, it is possible to exert some influence over the market.
• Helps in advertising: It allows the product to be advertised. Advertising is impossible without branding.
• Differential pricing: Differential pricing is made possible through branding. It enables the company to charge a different price than its competitors.
• Easy introduction of a new product: The branding of an existing product serves as the foundation for the company’s launch of new items. This is because a new product would gain traction and profit from the existing brand’s reputation.

                Advantages of branding of goods and services to customers

• Product identification: This allows customers to recognise and identify the product amid various competing items quickly.
• Ensures quality: Consumers regard a brand as a guarantee of authenticity and quality.
• Status symbol: Brands serve as status symbols for customers, giving them a sense of fulfilment and pride.

PACKAGING

Packaging is the process of creating, designing, and manufacturing a product’s container or wrapping. It is one of the most crucial marketing roles. Class 12 Business Studies Chapter 11 Notes elaborates on ‘packaging’.

Level of Packaging:

• Primary packaging:  It is the immediate package of the product, for example, a Pepsi bottle.
• Secondary packaging: It is the next layer of protection of the product’s packaging, for example, the cardboard box in which the toothpaste is packed.
• Transportation packaging: Another layer of protection for identification, transportation and storage, for example, wooden cartons.

Functions of Packaging: 

• Protection: The product is protected from harm by proper packing. Chips, for example, are packaged in airtight canisters.
• Identification: The packaging helps in the quick identification of the product. For example, the pristine white and blue packaging of a Dove product, as well as the word D, may be recognised from a distance.
• Convenience: The packaging makes it easy for the user to handle the goods. Milk in packages and cold drinks in bottles, for example, are easy to transport from one location to another.
• Promotion: Packaging helps in the promotion of a product’s sale. The appealing packaging of Kinder Joy chocolate, for example, encourages buyers to purchase the product.

Class 12 Business Studies Chapter 11 Notes will help students prepare for their upcoming board examinations. Students can carefully go through these and comprehend all the chapter’s concepts.

                 Importance of Packaging:

• Rising standard of health and sanitation: Packaged items are favoured over loose commodities because they are less likely to be contaminated or adulterated.
• Self-service outlets: Consumers at such establishments choose products with appealing packaging.
• Product differentiation: Packing allows buyers to distinguish between items based on their size, colour, or packaging material.
• Innovative opportunities: Innovative packaging strategies expand the range of items that may be marketed. Products, for example, may now be kept fresh for extended periods without being refrigerated. As a result, such a feature may be leveraged to promote the product.

Students may jump on board with Extramarks Class 12 Business Studies Chapter 11 Notes for an immersive experience of detailed notes curated by the subject experts.

LABELLING

Labelling is the process of conveying information about a product in the form of a tag or label on the product’s package. These tags or labels provide descriptions of a product’s name, date of manufacture, quality, price, contents, and mode of use, among other things. Class 12 Business Studies Chapter 11 Notes elaborates on ‘labelling’.

Functions of Labelling: 

• Grading: Allows the goods to be classified into several categories. Lindt, for example, distributes a variety of chocolate flavours under numerous label categories.
• Identification: Assists customers in recognising a product or brand. For example, the product name is printed on the package, making it much easier to identify one’s favourite brand. Similarly, the label provides additional useful information such as the product’s contents, weight, and maximum retail price.
• Description of use and content: A label explains a product and identifies its components, as well as other pertinent information such as the product’s contents, the precautions to be taken when using it, the process for users, and so on. On a soup packet, for example, the ingredients are listed along with the preparation instructions.
• Promotion of the product: A label helps attract clients, allowing for product advertising. Furthermore, the label provides any information about sales marketing strategies.
• Information required according to the law: The product label also provides the information that is needed by law. Tobacco manufacturers, for example, are required to display a warning notice on the product’s packaging.

PRICE

Extramarks Class 12 Business Studies Chapter 11 Notes provides the concept of Price, one of four P’s, elaborately. 

• The amount of money spent by a customer to get a product is referred to as the price.
• In essence, this money reflects the whole amount of value traded in return for the advantage of owning or utilising the goods.
• Pricing plays a vital part in marketing since things cannot be sold in the market without a price tag or pricing restrictions. It is also a significant aspect in determining a product’s demand.
• In general, a product’s demand is inversely proportional to its price, meaning that as the price increases, so does the demand for the commodity, and vice versa.
• Marketers must appropriately choose a price by analysing many associated elements such as target consumers, competition pricing ranges, and the firm’s goals.
• The price established must be comparable to the value provided by the product since it serves as a benchmark against which firms/companies compete.
• As a result, this might be a factor that has a favourable or negative impact on a company’s sales and earnings.

Students may get on board with Extramarks and access Class 12 Business Studies Chapter 11 Notes.

FACTORS AFFECTING THE PRICE OF A PRODUCT OR SERVICE

Extramarks Class 12 Business Studies Chapter 11 Notes provides an in-depth explanation of the factors affecting the price of a product or a service.

1. Cost of Production: The most important factor in establishing the pricing is the cost of the goods. Producing, selling, and distribution costs are all included in the product cost. It may be divided into:

• Fixed cost: These are expenses that do not change depending on the degree of output. For instance, consider the cost of machinery and land.
• Variable cost: These are expenses that change depending on the amount of production. The variable prices rise in tandem with the amount of output and vice versa. Costs of labour and raw materials, for example.
• Semi-variable cost: These are expenses that fluctuate with the production level but are not proportional to it, similar to variable costs. Commissions are paid to middlemen, for example.
• Total costs: These costs are the sum of fixed, variable, and semi-variable expenses for a particular level of activity, such as the amount produced or sales volume.

In most cases, a company sets a price for its product in order to pay its costs and make a profit.

1. Utility and demand for the product: The price of a product has a direct relationship with its utility. It allows the vendor to demand a greater price while keeping the product’s functionality in mind. A person may be willing to pay the price for a product for as long as the product’s usefulness is equivalent to their sacrifice in exchange for the product’s price. Similarly, the seller attempts to recoup his costs via the product’s price. This is how the price of a commodity reflects the interests of both parties, i.e. buyer and seller.

• Elastic demand: If a given proportionate change in price causes a larger than proportionate change in demand, the demand is said to be price elastic. In this situation, the company’s decision to charge a higher price would result in a significant drop in demand.
• In elastic demand: If a proportionate change in price does not result in a considerable change in demand, the demand is said to be price inelastic. It is conceivable for a company to charge a greater fee in this situation. This is because demand will remain relatively constant even at a greater price.

As a result, items with elastic demand have a lower price than commodities with inelastic demand.

Students may register with Extramarks and make the most of Class 12 Business Studies Chapter 11 Notes, revision notes, important questions and other study materials. 

1. Degree of competition in the market: When there is a lot of rivalry in the market, a company cannot charge a greater price. This is because if the company charges a greater price, customers will go to its competitors instead. When there is minimal competition in the market, however, vendors may be able to demand a higher price for their goods.
2. Government regulations: Certain commodities’ pricing is occasionally regulated by the government. The government, for example, intervenes in the price setting of agricultural items such as wheat and rice.
3. Objectives of pricing: When determining the pricing of a product, a company examines several factors. Below stated are some of the most important price objectives:

• Profit maximisation is one of any company’s primary goals. If the firm’s goal is to maximise profits in the near term, it may set a higher price for the product. On the other hand, if a firm wants to maximise profits in the long run, it will charge a lower price now in order to get a larger market share and establish consumer loyalty.
• If a company wants to get a larger market share, it will offer a lower price to attract a larger number of people to its product.
• If a company wants to thrive in a competitive market, it must maintain product prices low or risk losing clients to competitors.
• If the company wants to improve the product’s quality, it may charge a higher price to pay for the increased expenditures.

Class 12 Business Studies Chapter 11 Notes covers all aspects of pricing, and students may refer to more study material on it on Extramarks.

1. Method of Marketing: Various components of marketing, such as distribution system, product differentiation, quality, and quantity of promotion, all have an impact on pricing. For example, the firm’s marketing strategies, such as intensive advertising, may incur additional expenditures, which are added to the product’s price to recoup these costs.

PLACE/PHYSICAL DISTRIBUTION

Extramarks Class 12 Business Studies Chapter 11 Notes provides the concept of Place/Physical distribution, one of four P’s, elaborately.

• The movement of items from the point of production to the point of consumption is referred to as place/physical distribution.
• It is focused on delivering goods and services at the appropriate location, quantity, and time.
• The company must make judgments in the following areas:

1. Physical transportation of products
2. Channels or middlemen that allow the product to be distributed

CHANNELS OF DISTRIBUTION

The mechanisms through which items are supplied to ultimate customers are distribution channels. Individuals, institutions, and agencies are examples of these. Because prospective customers are dispersed around the globe, a company requires distribution channels. As a result, it becomes more difficult for manufacturers to contact clients directly and sell them the goods. Class 12 Business Studies Chapter 11 Notes by Extramarks helps students easily grasp all the concepts.

FUNCTIONS OF THE DISTRIBUTION CHANNELS

• Arrangement: A middleman obtains commodities from a variety of sources. He classifies them into different homogeneous categories based on size, quality, and nature.
• Accumulation: The intermediary ensures adequate stock is available with him to ensure an uninterrupted flow of supplies.
• Allocation and packaging: These entail the supplier breaking down larger units of supply/stock into smaller units and packing them separately.
• Building variety: An intermediary must get various commodities from different manufacturers and offer them in varying combinations as customers demand.
• Promotion of product: Manufacturers’ promotional efforts are supported by intermediaries. Intermediaries, for example, can display banners and merchandise that they sell.
• Negotiation: Intermediaries serve as middlemen for producers and customers, negotiating deals. They make sure that the agreement meets the needs of both sides.
• Bearing risk: Intermediaries have a vast stock of items that they get from many sources. The middlemen keep the items until they are sold to the end-users. They must deal with a variety of hazards during the process, including swings in demand, pricing, and spoilage.

Class 12 Business Studies Chapter 11 Notes will help students prepare for their upcoming board examinations. Students can carefully go through these and comprehend all the chapter’s concepts.

TYPES OF CHANNELS OF DISTRIBUTION

The types of distribution channels include

Direct channel (zero level): A direct link is established between the manufacturer and the customer. Manufacturer-Customer. Mail order, online, and door-to-door sales are examples. Get a detailed explanation on Extramarks Class 12 Business Studies Chapter 11 Notes.

Indirect channel: When a manufacturer uses one or more intermediaries to transport items from the point of production to the point of sale, the distribution network is referred to as indirect.

• Manufacturer – Retailer- Customer (one level channel)

One middleman, namely retailers, is employed between the manufacturers and the customers, usually reserved for high-end commodities like watches, appliances, and vehicles (Maruti Udyog), among other things.

• Manufacturer- Wholesaler- Retailer customer (two-level channel) 

This channel is primarily used for the delivery of consumer products. Soaps, salt, and other consumer items are common examples.

• Manufacturer- Agent-Wholesaler-Retailer-Customer(three-level channel)

In this situation, manufacturers use their selling agents or brokers to interact with wholesalers, retailers, and eventually customers.

FACTORS DETERMINING THE CHOICE OF CHANNELS OF DISTRIBUTION

• Product type: The type of goods, whether perishable or non-perishable, industrial or consumer, determines the distribution route. Short distribution networks, for example, would be more appropriate for perishable items. Long channels are utilised for consumer items, whereas small channels are used for industrial products.
• Company’s characteristics: Financial strength and the degree of control the company wants to have over intermediaries are two important characteristics of a company that affect its distribution channel. Shorter distribution routes demand more cash and provide more control over intermediaries, whereas longer distribution channels cost fewer funds and provide less control over intermediaries. As a result, a financially powerful corporation or one that intends to exert greater influence over intermediaries might choose shorter distribution networks.
• Environmental factors of a business: Economic conditions and regulatory limits are other important considerations when deciding a distribution route.

For example, If there are complicated legal procedures at various distribution stages, a corporation would prefer shorter distribution channels.

• Competitive factors: The distribution channel chosen by a corporation is also influenced by the distribution channels selected by its rivals. For example, a corporation might not want to utilise the same channel as its competitors.
• Market factors: Various market characteristics, such as market size, geographical concentration of prospective customers, the volume of demand, and so on, influence the company’s choice of distribution channels. If prospective purchasers are concentrated in a limited geographic area, for example, shorter distribution channels might be more appropriate.

Class 12 Business Studies Chapter 11 Notes by Extramarks is extremely helpful for the students who would want to have in-depth knowledge of the distribution channels.

PHYSICAL DISTRIBUTION

Physical distribution is the physical transfer of things from the point of production to the point of consumption. It encompasses all operations necessary to transport the products physically. Transportation, warehousing, inventory control, and so forth. Refer to Extramarks Class 12 Business Studies Chapter 11 Notes for a detailed explanation of the topic.

Decisions of Physical Distribution

• Transportation of products: The physical transfer of commodities from the point of manufacture to the point of consumption is referred to as product transportation.
• Order processing: The operations that occur between the time an order is placed and the time it is delivered to the customer are referred to as order processing. It includes procedures such as placing an order, notifying the manufacturer of the order, and receiving the products. The distribution system should be set up in such a way that orders are processed quickly. Customer satisfaction is higher when processing is completed rapidly and accurately.
• Maintenance of inventory: Maintaining inventory ensures that things are delivered when and where they are needed. This provides a high level of client service and happiness. Inventory upkeep, on the other hand, comes at a price. As a result, a balance between costs and client happiness must be maintained.
• Warehousing: Warehousing is the process of storing products before they are sold to customers. The storage of products in a warehouse allows for immediate access to items at various locations. However, there are costs associated with storage. As a result, the advantages of storage must be assessed against the associated expenses in order to maintain a balance in accordance with the demand.

Class 12 Business Studies Chapter 11 Notes will help students prepare for their upcoming board examinations. Students can carefully go through these and comprehend all the concepts in the chapter.

PROMOTION

Extramarks Class 12 Business Studies Chapter 11 Notes provides the information on Promotion, one of four Ps. 

• Promotional activities are those carried out by a company with the goal of informing potential customers about the availability of a product, its characteristics, distinctive traits, and purpose.
• Product promotion is carried out with the goal of persuading potential buyers to buy the product.
• An organisation must pick which promotion medium to utilise and follow the necessary steps as a result.

A collection of promotional tools designed to persuade people about a company’s products and increase sales. The following are some examples of communication tools:

1. ADVERTISING

It refers to an impersonal method of product advertising that is paid for by the marketers. It helps in the attraction of buyers to the goods. Newspapers, periodicals, television, and other forms of advertising are common. Refer to Extramarks Class 12 Business Studies Chapter 11 Notes to get a detailed explanation of ‘Advertising’.

Feature of Advertising:

• Impersonal mode:  In the sense that there is no direct relationship between the client and the marketer, advertising is impersonal.
• The cost involved: Advertising is a kind of communication that is paid for. It entails a cost that the sponsors will provide.
• Identified sponsors: Sponsors are found and commence the advertising campaign and supply the necessary funding.

Limitations of advertising as a promotional tool:

• Less forceful: It is ineffective because advertising is an impersonal form of communication.
• Analysis of impact: The company cannot assess the impact or efficacy of advertising.
• Rigid: It’s a uniform method of communicating with potential customers that can’t be customised to meet the demands of individual customers.
• Low effectiveness: Because there are so many advertisements for similar items on the market, their efficiency is minimal.

Extramarks experts have prepared class 12 Business Studies Chapter 11 Notes; these notes throw light on all aspects of Advertising.

Advertising: Objections

1. SALES PROMOTION

Refers to a variety of short-term incentives presented to customers in order to persuade them to buy a product or service. Refer to Extramarks Class 12 Business Studies Chapter 11 Notes to get a detailed explanation of ‘Sales promotion’.

Sales promotion activity:

These activities include giving discounts, product combinations, and free samples, among others. These events complement the company’s other promotional efforts. Various sales promotion activities aid in enticing clients and incentivising them to buy. Companies utilise them a lot when they’re launching a new product. Sales promotion activities assist in increasing the company’s sales. A few examples of sales promotion activities are as follows:

• Rebate: Products are sold at a relatively  lower price for a limited time to clear off excess inventory.
• Discounts: Products are available for a lower price than the market price.
• Refund: It entails returning a portion of the purchase price to the buyer upon presentation of evidence of purchase.
• Product combination: Giving away a product with the purchase of other goods.
• Quantity gift: A larger quantity of the product is available for the same price.
• Instant draws and assigned gifts: When buyers buy goods, they are given a scratch card or a gift coupon.
• Lucky draw: Offering things as part of a lucky draw to a limited few.
• Usable benefits: Providing gift certificates that may be used later.
• Full finance at 0%: Offering easy installment schemes
• Sampling: At the time of the product’s introduction, potential buyers are given free product samples in little packets.
• Contests: Events and contests are held that include games and activities while advertising the product to attract as many clients as possible.

1. PERSONAL SELLING

It is a type of personal connection with consumers that is used to seal deals. Refer to Extramarks Class 12 Business Studies Chapter 11 Notes to get a detailed explanation of ‘Personal selling’.

Features:

• Personal form: Direct communication between buyers and sellers is required.
• Relationship development: Provides opportunities for the customer and vendor to form an intimate relationship.

             Merits of Personal Selling:

• Flexibility: The product’s sale presentation can be modified to meet the needs and preferences of the consumer.
• Direct feedback: Because of the direct interaction between the seller and the buyer, correct and direct feedback from the buyers can be obtained and utilised to modify the sales presentation to the demands of the potential clients.
• Low wastage: Less effort is wasted since the firm/company selects the target clients before contacting them.

Class 12 Business Studies Chapter 11 Notes by Extramarks is extremely helpful for the students in learning the various concepts of selling. 

Role of Personal Selling:

• Effective promotional tool: Aids in persuading prospects of a product’s benefits, resulting in increased sales.
• Flexible tool: More flexible than other promotional tools, allowing business owners to customise their offer to different purchase scenarios.
• Minimal wastage of efforts: Minimal waste helps business people become more efficient in their endeavours.
• Consumer attention: In a personal selling environment, it allows a businessperson to notice the loss of consumer attention and interest, which aids in completing the transaction successfully.
• Lasting relationship: Helps in the formation of a long-term relationship between salespeople and customers.
• Personal rapport: Assists in the development of personal relationships with clients, hence boosting a company’s competitive power.
• Role in the introductory stage: Plays an important part in the early stages of a new product’s launch, when clients are persuaded of the product’s benefits.
• Link with the customers: Salespeople provide three functions: persuasion, service, and information, serving as a bond between the company and its clients.

Importance of Personal Selling to Customers:

• Identifying the requirements: Customers are assisted in identifying their requirements and wants and determining how to meet those needs and wants.
• Up-to-date market information: Customers are given the most up-to-date market information, such as pricing changes, product availability, and new product introductions, to help them make better purchasing decisions.
• Expert advice: Customers are given expert advice/guidance to assist them in purchasing various items and services.
• Persuade customers: Personal selling persuades clients to buy new items to meet their requirements better and improve their level of living.

Class 12 Business Studies Chapter 11 Notes provide handy notes to students with a detailed explanation of the subject.

Importance of Personal Selling to Society:

• Converts exclusive demands: Converts current demand into effective demand, and economic activity in society is boosted due to this cycle.
• Generates employment: Provides jobless youngsters with money and work prospects.
• Career opportunities: Gives you the chance to build a rewarding career that will lead to promotion and job satisfaction.
• Movement of Salesperson: Increased salesperson mobility boosts travel and tourism in the country.
• Product standardisation: A diverse society increases product standardisation and uniformity in consumption patterns.

1. PUBLIC RELATIONS

It refers to activities carried out by a company or its products in order to promote or defend its image in the eyes of the general public. Refer to Extramarks Class 12 Business Studies Chapter 11 Notes to get a detailed explanation of ‘Public Relations.

Role of Public Relations in Marketing Management:

The following functions of the public relations department are discussed in Extramarks Class 12 Business Studies Chapter 11 Notes in relation to the role of public relations in marketing management:

• Maintaining Corporate communication: Organisations connect with the general public and their workers in order to retain goodwill. Newsletters, articles, brochures, and other types of communication are used to accomplish this.
• Product Publicity: The public relations department can simply assist with product promotion and publicity. The department can do this by holding seminars, cultural events, and press conferences, among other things.
• Press Relations: The company’s public relations department maintains solid contacts with the press so that factual and favourable news about the company, rather than distorted information obtained from other sources, spreads in the outside world.
• Counselling: The public relations department advises management on various topics, including donating money to charitable organisations and participating in events that promote organisational goodwill.
• Lobbying: Government authorities must be dealt with when it comes to business and economic policy. The public relations department must take an active and important role in advocating or decoding rules that impact the company.

DIFFERENCE BETWEEN ADVERTISING AND PERSONAL SELLING

Class 12 Business Studies Chapter 11 Notes here at Extramarks is as per the latest CBSE syllabus. Register online to access these handy notes and excel in your board examinations.

Class 12 Business Studies Chapter 11 Notes: Exercises and Answer Solutions

Class 12 Business Studies Chapter 11 Notes are available on the Extramarks website. Subject experts have prepared these notes as per the guidelines of CBSE. Register online with Extramarks to clear all the doubts and get access to all exercises and answer solutions. 

A list of detailed solutions for all the questions is listed below:

• Very Short Answer Type Questions and Solutions- 6  Questions
• Short Answer Type Questions and Solutions- 12  Questions
• Long Answer Type Questions and Solutions- 8  Questions

Stay tuned with Extramarks to get exclusive updates on the upcoming examinations and exam pattern, syllabus, notes, formulas, CBSE revision notes, CBSE previous year question papers, etc.

Class 12 Business Studies Chapter 11 Notes: NCERT Exemplar Class 12 Business Studies

The Class 12 Business Studies Chapter 11 Notes have been prepared to guide the students in their final exam preparation for the upcoming board examinations. These exemplar questions are a little more challenging, and they cover a variety of concepts covered in each chapter of the Class 12 business studies course. Extramarks give students access to these exemplar problems and solutions for Class 12 business studies chapter-wise.

Students will completely understand all the concepts covered in each chapter by practising this NCERT Exemplar for Business Studies in class 12. Each question in these resources is related to the topics covered in the CSBE Class 12 syllabus and is created by our specialists to offer the best solutions to students’ experiences. These questions reflect the pattern found in NCERT books to match the topics taught in each class and give students the most excellent practising materials or worksheets.