Marketing Notes Class 7

Marketing Notes Class 7 are given here in very simple language. Teachers are expected to discuss everything with the students in informal way first, encouraging them to participate in the discussions.

Marketing Notes Class 7

UNIT 1 CONCEPT OF MARKET

Types of Market in the Market place

There are predominantly three types of markets:

1. Product Market
2. Service Market
3. Virtual Market

A Market is a place where the buyer and sellers can exchange goods and services for money.

Forms of market:

Market can be physical like a retail outlet or virtual where the buyer and seller interact directly with each other online like Amazon, Flipkart, Meesho.

Features of Market

Major characteristics of all markets are:

1. Availability of a range of products

A variety of goods to choose from must be available to the customers, may it be physical market or virtual.

2. Buyers and Sellers

Presence of these two parties is essential i.e. buyers and sellers.

3. Competitive Model

In a market, sellers are usually large in number who attract large number of buyers by offering discounts and other benefits at competitive prices.

4. Fixed Monetary System

A common accepted currency of the country is used by the market place to facilitate transactions between buyers and sellers. Barter doesn’t exist these days.

Types of Market

1. Product Market

A product market is a marketplace where final/finished goods are sold to customers for ultimate use. The products can be pen, pencil, car, scooter, vegetables etc.

2. Service Market

A market where non-tangible or abstract goods are bought and sold is called service market. Services aim to assist and ease the life of a customer like hotel, entertainment, courier services.

Special Characteristics of Service Market

1. Heterogeneity – Services industry involves various processes and procedures which are different from person to person. E.g. taxi service, watching movie in a theatre.
2. Intangibility – Services are not in physical form. They cannot be stored but experienced or used simultaneously. The satisfaction of the service cannot be known before receiving the service.
3. Perishability – Services cannot be stored. Perishability means with the passage of time, if not availed, services cannot be brought back.
4. Inseparability – Unlike physical goods, the production and receipt of services are not different. They go hand in hand.
5. People Involvement – The services market is dependent on the people offering the service to meet the needs of a consumer.

3. Virtual Market 

Done in Class 6 also.

Marketing Notes Class 7

UNIT 2 CONCEPT OF MARKETING

Need for Exchange

Exchange is the basic concept of marketing that means buying and selling. But, buying and selling can take place only with the help of some medium of exchange i.e money or money’s worth.

Conditions to be fulfilled for exchange process:

1. a) There must be at least 2 parties, buyer and seller.
2. b) Both the parties must have something of value to be offered to each other, i.e. product.
3. c) Both the parties are free to reject or accept the offer.
4. d) Each party can communicate or deliver what they are offering.

Need for Competition

Competition means a situation in which someone tries to be more successful than others who are in the same situation. In market, various manufacturers or sellers compete to attract customers.

Benefits of competition

1. Promotes creativity: Competitions encourage creativity and new ideas are developed.
2. Choice to customers: Customers enjoy choice, and affordable prices.
3. Encourages innovation: Healthy competition also encourages innovations in business.
4. Technological development: Competition leads to technological progress.
5. Competition replaces the inefficient companies with more efficient companies.
6. Increases efficiency: Competition makes the businesses use their resources in efficient manner.

Importance of Marketing

Importance for Customers/ Society

1) Raising the standard of living: Marketing helps in improving the living standard of the people by offering a large variety of goods and services.

2) Generation of employment: Marketing helps in generating employment both in all areas, production as well as distribution.

3) Large choice to customers: Marketing also helps the customers to choose from a variety of products and services available in the market.

4) Provides value to the goods and services: Marketing provides value to the goods and services as they are available at the right place, right time and reasonable price.

Importance for business

1) Improvement of quality: Marketing enables the businessmen to improve the quality of their goods and services.

2) Generation of Income: Business organisations generate revenue and earn profit by carrying out marketing functions.

3) Creation and retention of customers: Marketing helps to create and attract new customers by supplying goods and services according to their needs and demands.

4) Reduction in Cost of production: It helps to increase the production of already existing products and reduce the cost of sale and distribution.

5) Increases reputation: Marketing helps in creating a good reputation that plays an important role in the growth of the organisation.

6) Source of advertising and promotion:  Marketing is a source of advertising the new products as well as promoting the existing products through advertisements and promotional activities.

7) Promotes Innovations: Marketing helps to promote new ideas in the organisation according to the change in customers taste, latest trends and innovations.

Core concepts of Marketing - Marketing Philosophies

The main purpose of Marketing Philosophies or concepts is to fulfil and identify the customer needs and demands with maximum satisfaction. A business can adopt these marketing in order to be effective:

1. Production Concept
2. Product Concept
3. Selling Concept
4. Marketing Concept
5. Holistic Concept

1. Production Concept:

This was the oldest concept of business when producers or marketers were limited. So, their production was also limited. According to this concept, consumers prefer wide availability and cheap products, so the focus should be on more production, low cost and mass distribution.

2. Product Concept:

As more and more companies started production units the supply increased and consumers had choice of product. So, there’s emphasize on providing quality products rather than quantity. So, the focus shifted to the improvement of product according to customer’s needs and taste.

3. Selling Concept:

With increased competition in the market, the focus shifted to selling the product using aggressive selling techniques and bringing the customers by giving discounts, gifts, hampers etc. along with the products or service.

4. Marketing Concept:

This concept favours identification of customer needs and target market before production and then doing the best to achieve this by giving the maximum satisfaction to the customers. It includes everything focus on production, product ,selling and satisfaction of customers, all at a profit.

5. Holistic Concept:

Also known as Societal Marketing/Human concept, this concept combines the marketing concept and welfare of consumers and society like environmental protection, employment generation, health benefits, education etc.

No company follows any one marketing concept in isolation. A mix of these 5 concepts of marketing, is used depending on factors like the customers taste, competition and latest trends.

Marketing Notes Class 7

UNIT 3 - SELLING CONCEPT

Both aspects of marketing i.e., buying as well as selling are considered to be two separate faces of the same 'coin' or transaction.

A 'good seller' always tries to help customers and is able to sell something for the satisfaction of his customer. His income depends on his making more and more sale.

Sales:

The term ‘Sales’ refers to a set of activities that results in the selling of goods and/or services.

‘Seller’ or ‘Salesman’ or ‘Saleswoman’ or ‘Salesperson are same. Similarly, ‘Buyer’, or ‘Purchaser’ or ‘Customer’ are same.

Selling is exchange of goods for money. Sale means a monetary transaction wherein buyer receives goods or services on payment of money in any form.

Receiving goods or services without payment of money in any form would be called gift or a donation.

A person who is interested in receiving the goods of value is called as a prospective customer, or potential buyer.

Profitability is achieved through sales volume but it is not favorable in a competitive environment.

Cost Price:

Cost price is the price paid by the seller to purchase a product. Cost Price plus a certain amount of profit makes the Selling Price.

Selling Price:

Selling Price is the price paid by the customer to purchase a product or service.

Selling price = Cost price + Profit

Marked Price or List Price:

As the name suggests It is the price that a seller quotes to the buyer. Discount is given on this list price. So, Selling price = List price – Discount

A product having a high selling price is not able to attract many buyers. A very low selling price can affect the profitability of the business. Buyers also think that it is of inferior quality. So, the selling price is very important factor affecting the profit of the business.

Marketing Notes Class 7 

Objectives of Sales/ Selling

1. To sell more and more goods to consumers.
2. To earn profits by selling goods and/or services to the consumers.
3. To search for new customers, to whom goods & services could be sold.
4. To secure consumers cooperation in stocking and promoting the products.
5. To keep customers informed about the changes in the existing products and launch of new and better products.
6. To provide assistance to customers regarding use of products.

Importance of Sales/ Selling

1) Selling is an essential and crucial activity:

Production and other activities in an economy depends on the selling activities.

2) Selling is a Productive activity:

Selling satisfy wants which in turn give rise to increased demand for various products and services. So, producers produce more.

3) Provides Satisfaction:

Selling considers consumer’s needs, likings, tastes, interests, feelings and rising expectations associated with buying and then provides satisfaction for consumers.

4) Promotes New Products and better use:

Selling increases awareness of the use of new products as the salesmen provide knowledge about the quality, design, and uniqueness of new products.

5) Promotes efficiency:

Selling helps in the maximum utilization of human resources, financial and natural resources by creating and promoting demand, which ultimately leads to increase in production.

6) Raise Standards of Living:

Selling makes available new goods and services to the customers at reasonable prices. This raises their standards of living.

7) Creation of Job Opportunities: Selling increases demand leading to increased production which ultimately creates job opportunities.

8) Selling adds to National Income:

More production, more employment opportunities, more income lead to increase in income – total as well as per capita.

9) Promotes Economic Growth:

Selling stimulates consumers’ interests, demands, and buying. This requires increase in production, which encourages large scale production and higher investments which are essential for the prosperity of a country.

Marketing vs. Selling

Marketing Notes Class 7

UNIT 4 - HAPPY CUSTOMER

Customer

A customer is a person who purchases a product in exchange for money.

Need, Wants, Demand and Choice of the Customer

A happy customer is a repeat customer, they are loyal customer. Customers are loyal to a company only if it satisfies their needs, wants and demands. So a marketer should THINK LIKE CUSTOMERS.

Need

Need refers to the basic human requirement e.g. food, water, shelter and clothes. These are the basic needs of any person for survival. After the basic needs are fulfilled the human beings move on to satisfy their other needs like friendship, education, entertainment, affection and status etc.

There are basically 3 types of need -

Physical Needs: e.g. air, food, water, shelter, clothing.

Social Needs: e.g. family, friends, relative.

Individual Needs: e.g. education, knowledge, environment, status etc.

Wants

Needs give rise to wants. Wants are directed by our surroundings, our environment, our culture, our thoughts process and our society. ‘Want’ makes the need for food to be satisfied with need for Burger and not routine food, for a Punjabi person.

Demand

When the customer has the ability to buy that need or want it gives rise to demand.

Marketers play an important role in creating demand by customizing needs and wants, by offering products at different prices and quality.

Choice

For new and repeat customers in the present times of competition, companies must provide choice to the customers for their maximum satisfaction. For this purpose the companies should:

1. identify and remain connected to customers.
2. encourage feedback and suggestions from customers.
3. provide speedy, efficient and good services to its customers.
4. give options and choices for all types of customers.
5. have proper planning and a holistic strategy to satisfy customers.

To help the customers come out of the confusion due to large number of choices, the companies follow attractive promotion strategies.

Check your Understanding 

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