Marketing management facilitates the activities and functions which are involved in the distribution of goods and services.
According to , “Marketing management is the analysis, planning, implementation and control of programs designed to bring about desired exchanges with target markets for the purpose of achieving organizational objectives.
It relies heavily on designing the organizations offering in terms of the target markets needs and desires and using effective pricing, communication and distribution to inform, motivate and service the market.” Marketing management is concerned with the chalking out of a definite programmer, after careful analysis and forecasting of the market situations and the ultimate execution of these plans to achieve the objectives of the organization.
Further, their sales plans to a greater extent rest upon the requirements and motives of the consumers in the market. To achieve this objective, the organization has to pay heed to the right pricing, effective advertising and sales promotion, distribution and stimulating the consumers through the best services.
To sum up, marketing management may be defined as the process of management of marketing
programs for accomplishing organizational goals and objectives. It involves planning, implementation and control of marketing programs or campaigns.
This concept advocates that a manufacturer should begin his task with the consumer focus. He has to primarily study the consumer and understand the needs, desires, requirements and conveniences of the latter. A manufacturer should design a new product or improve an existing one strictly keeping in mind the needs, desires etc. of the consumer. The product should exactly satisfy the consumer.
Therefore, a manufacturer should design and manufacture a product which will be accepted by the consumer rather than the one which can be manufactured by him easily. A consumer is basically fastidious and fickle minded. This makes that task of understanding the consumer and designing an appropriate product much more difficult, however this is the only way a manufacturer can succeed in a competitive market.
Selling should be preceded by customer study, marketing research and product development. The entire focus should be on the consumer and his needs.
“There will always, one can assume, be need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the consumer so well that that the product or service fits him and sells itself. Ideally marketing should result in a customer who is ready to buy. All that should be needed then is to make the product or service available”
The marketing Management refers to planning, organizing, directing, control of the activates which facilitate the exchange of goods and services between the producers to end consumers. Firms today need to spend money to create time, place and ownership utilities .The main features of modern marketing are as follows:
1. Marketing is a science as well as art: Marketing has evolved from the economics but it has a closer relationships with social and behavioral sciences. Marketing is closely associated with streams of science as well humanities and subject lines such as Economics, Law, Psychology, Anthropology, Sociology, Information Technology etc. Marketing heavily depends upon the demographic features of the target market, political environment, philosophy, mathematics, statistics etc.
2. Exchange is essence of marketing: Marketing revolves around commercial exchange. This also involves exchange of technology, exchange of information and exchange of ideas.
3. Marketing is Goal Oriented: The ultimate goal of marketing is to generate profits through the satisfaction of the customer.
4. Marketing is a continuous process: marketing is not an isolated, static process but is a complex, continuous and interrelated process. It involves continuous planning, implementation and control. It is an important functional area of the management.
5. Marketing is Consumer Oriented: All firms exist because of their business to satisfy the human needs, wants and demands. The ultimate objective of marketing is to find out what the consumer wants and how to fulfill consumer need. This leads to production of the goods and services as per the needs of the customer.
6. Marketing starts with consumer and ends with consumer: Marketing is consumer oriented and it is very important to know what the consumer wants.
1. Managerial Process: Marketing management is a managerial process involving planning, organising, decision making, forecasting, directing, coordinating and controlling. Stanley Vance defines management as the process of decision making and controlling. Every aspect of marketing, starting with identifying the consumer’s need and wants, identifying the targeted customer, product planning, development, pricing, promotion, distribution process requires planning, decision making, coordination and controlling.
2. Consumer Centric: All marketing activities are consumer centric. The consumers are the king. Marketing activities are based on the premise of “make what the market wants”. The principal objective of marketing is to create new customers and to retain current customer. Marketing management performs the task of converting the potential customers into actual customer.
This is possible through satisfaction of customer’s needs and wants by delivering them, appropriate goods and services according to their needs and wants, at right time and through convenient channel.
3. Research Analysis: The basis function of marketing is identification of consumer’s needs and wants .This requires continuous and systematic collection of data, analysis and reporting of data relevant to marketing activities. This helps the management to understand consumer’s needs, wants, preferences and behavior of the consumer towards firm’s marketing mix strategies. This helps in forecasting and planning future course of action.
4. Planning and Development: Marketing involves planning and development of goods and services. Organizations make a continuous endeavor towards planning, development and innovation of product and services so as to meet the changing demand, taste and preferences of the consumers.
5. Building Marketing Framework: Marketing activities are not just selling and distribution of ownership of goods and services from the producer to the ultimate consumer. But it involves a series of activities like research analysis, production, development and innovation, advertisement and promotion pricing decision, selling and distribution, customer relationship and after sales service. All these functional areas of marketing must be effectively planned, organized and built effectively to achieve best results. Marketing structure depends upon the size of the enterprise, geographical coverage of the operation, number of product lines, nature of product, size of customers.
6. Organizational Objectives: All marketing activities are based on overall organizational objectives. The marketer bridges the gap between overall organizational objectives of achieving high profit and maximization of sales and consumer’s interest of satisfying needs.
7. Promotional and Communication Process: The ultimate objective of a firm is to maximize sales volume and profit. This can be achieved through promotion and communication about the goods and services. This function of marketing manage men enables the firm to provide information about the product to the customers.
8. Controlling of Activities: Marketing management performs the function of controlling of marketing activities. Marketing management evaluates the effectiveness of marketing activities, to judge the efficiency of marketing personnel and the plans. This process involves measuring the actual performance with the standard and identifying the deviations and taking corrective actions.
Marketing management has obtained importance to meet thriving competition and the need for developed strategies of distribution to reduce cost and to increase profits. Marketing is very beneficial for the transfer, exchange, and movement of goods. Marketing management today is the most important function in a commercial and business enterprise. The following factors will help you to understand why marketing management is important in this competitive world:
Boost your Sale
Adam Smith has remarked that “nothing happens in our country until somebody sells something”. Marketing is the kingpin that sets the economy revolving. The marketing concept is about matching a company’s capabilities with customer wants. Once your product, service or company gets on the place that you expected, it increases your chances that consumers will make a sale. And more important is that marketing strategies also help to reduce the cost of sales and distribution.
Increase Company Reputation
The major marketing activities are buying, selling, financing, transport, warehousing, risk bearing, and build company reputation. The success of a company often rests on a solid reputation. The company’s image is very important! It is the soul of the business. And only marketing strategies can help any company to build a strong reputation by identifying the best opportunities worth pursuing as well as the threats to be avoided.
Source of New Ideas
The concept of marketing is a dynamic concept. Marketing differentiates a company from competition by recognizing the distinctive benefits and the supporting elements. Marketing also nourishes an environment in the marketplace for healthy completion. Marketing as a document of measurement gives scope for understanding this new demand pattern and improves the effectiveness of the Marketing message to customers and partners.
In short word, marketing management works for translating the company vision, mission, and objectives, into effective Marketing initiatives. What do you think about the importance of Marketing Management in business? Do you want to add something more? Let us know your feedback.
1. Marketing Objectives: Marketing management determines the marketing objectives. The marketing objectives may be short term or long term and need a clear approach. They have to be in coherence with the aims and objectives of the organization.
2. Planning: After objectively determining the marketing Objectives, the important function of the marketing Management is to plan how to achieve those objectives. This includes sales forecast, marketing programs formulation, marketing strategies.
3. Organization: A plan once formulated needs implementation. Organizing functions of marketing management involves the collection and coordination of required means to implement a plan and to achieve pre-determined objectives. The organization involves structure of marketing organization, duties, responsibilities and powers of various members of the marketing organization.
4. Coordination: Coordination refers to harmonious adjustment of the activities of the marketing organization. It involves coordination among various activities such as sales forecasting, product planning, product development, transportation, warehousing etc.
5. Direction: Direction in marketing management refers to development of new markets, leadership of employees, motivation, inspiration, guiding and supervision of the employees.
6. Control: Control refers to the effectiveness with which a marketing plan is implemented. It involves the determination of standards, evaluation of actual performance, adoption of corrective measures.
7. Staffing: Employment of right and able employees is very crucial to success of a market plan. The market manager coordinates with the Human Resource Manager of an organization to be able to hire the staff with desired capability.
8. Analysis and Evaluation: The marketing management involves the analysis and evaluation of the productivity and performs mace of individual employees.
9. Conclusion: Marketing Management has the responsibility of to perform many functions in the field of marketing such as planning, organizing, directing, motivating, coordinating and controlling. All these function aim to achieve the marketing goals.
Marketing process includes ways in which value can be created for the customers to satisfy their requirements. It is an endless series of actions and reactions between the customers and the companies making attempt to create value for and satisfy the needs of customers.
In marketing process, the situation is examined to identify opportunities, the strategy is formulated for a value proposition, tactical decisions are taken, plan is executed, and results are monitored.
1. Situation Analysis
Analysis of the situation in which the company finds itself serves as the basis for identifying chances to satisfy unfulfilled customer needs.
Situational and environmental analysis is done to identify the marketing options, to understand the company’s own capabilities and to understand the surroundings in which the company is operating.
2. Marketing Strategy
After identifying the marketing options available, a strategic plan is developed to pursue the identified options. An analysis is done and the best available option is chosen; a plan or strategy is made for that option.
3. Marketing Mix Decisions
At this step, elaborated tactical decisions are made for the controllable parameters of the marketing mix. It includes decisions related to product development, product pricing, product distribution and product promotion.
4. Implementation and Control
Finally, the marketing plan is executed and the outputs of marketing efforts are monitored to adjust the marketing mix according to the market changes.
This being the final step, it transforms the written or planned strategy into action and the product is presented according to this process.
Marketing management, like all other areas of management comprises of the function of planning, organizing, directing coordinating and controlling.
1. Marketing research:
Marketing research involves identification of needs, wants taste and preferences of the targeted customer. Marketing management conducts a continuous analysis of consumer’s behavior towards firm’s marketing mix strategies, business environment; competitor’s marketing strategies in order to plan effectively the marketing activities of future.
2. Determination of Objectives:
Marketing management performs the task of setting marketing objectives. The marketing objectives are set in accordance with the overall organizational objectives of profit maximization. Marketing objectives relates to attracting new customers, retention of current customer, expansion of customer base, introduction of new product, improvement of old product and so on. Marketing management aims at maximizing the customer’s value by providing high satisfaction to the customers.
3. Planning Marketing Activities:
Planning involves determining the future course of action. Planning helps in accomplishment of objectives in a systematic manner. Planning of marketing activities relates to determining product line strategies, planning for product diversification, advertisement and promotional activities, planning related to selling and distribution process.
Planning may be conducted on short term, medium term and long term basis depending upon the requirements. Plans should be flexible so as to adjust with the changing business environment.
4. Product Planning and Development:
Product is the basic element of marketing. Products are goods or services that are offered to the customer for satisfying their needs and wants. Products are customer oriented and offered to the customer’s as per their requirement and preferences. Product planning involves new product development, product innovation, product diversification plan.
5. Pricing of Product:
Pricing is a complex function of marketing management. In most of the cases prices form the decision making criterion for purchase decision. Pricing decisions are based on cost of the manufacturing and distribution of product, competitor’s pricing strategies, customer’s willingness to pay for the product, customer’s perception about the product.
Promotion and advertisement are essential in order to maximize sales. Promotion and advertisement is essential to provide information to the customers about the product, to attract new customers, to provide reminder to customers about the product and to continue purchase, to provide information about product improvement or introduction of new brand. Marketing management develops new techniques and tools for promotion of their product.
Distribution process facilitates easy availability of goods and services to the customers at right time and at right and convenient location. Selection of distribution channel depends upon the nature of the product, price of the product, availability of intermediaries for distribution and cost involved in the distribution process.
8. Evaluation and Controlling of Marketing Activities:
Marketing management performs the task of evaluation and controlling of the marketing activities. Evaluation enables identification of effectiveness of marketing plans and actions.
Marketing Decision Making It is every marketer’s goal to get inside the head of a consumer. You want to figure out how the consumer makes decisions and how you can get them to make a decision to purchase your product or service. There are 5 steps in a consumer decision making process a need or a want is recognized, search process, comparison, product or service selection, and evaluation of decision.
1. Problem Recognition
Most decision making starts with some sort of problem. The consumer develops a need or a want that they want to be satisfied. The consumer feel like something is missing and needs to address it to get back to feeling normal. If you can determine when your target demographic develops these needs or wants, it would be an ideal time to advertise to them. For example, they ran out of toothpaste and now they need to go to the store and get more.
2. Search Process
Most of us are not experts on everything around us. In the searching phase we research for products or services that can satisfy our needs or wants. Search Engines have become our primary research tool for answers. It is an instant and easy way to find out what you are looking for. Also don’t forget about actual human beings. Our friends and families all have had many different experiences and can offer us recommendations. In most cases recommendations from actual people instead of a search engines are preferred. You have more of a trust factor with people close to you then a computer program.
You also may have had past experiences that assist you in solving your problem. You may have had a life experience in the past that helps you make the correct purchase decision. You could also just know what decision to make just by picking up things over the years and knowing how to solve them.
In this stage you are also beginning your risk management. You might make a pro’s vs. con’s diagram to help make your decision. People often don’t want to regret making a decision so extra time being put into managing risk may be worth it. People also remember bad experiences over good ones, take that into account.
3. Evaluating Alternatives
Once the consumer has determined what will satisfy their want or need they will begin to begin to seek out the best deal. This may be based on price, quality, or other factors that are important for them. Customers read many reviews and compare prices, ultimately choosing the one that satisfies most of their parameters.
4. Selection Stage
After tallying up all the criteria for the decision the customers now decide on what they will purchase and where. They have already taking risk into account and are definite on what they want to purchase. They may have had prior experience with this exact decision or maybe they succumbed to advertising about this product or service and want to give it a try.
5. Evaluation of Decision
Once the purchase has been made, does it satisfy the need or want? Is it above or below your expectations? The goal for every marketer is not for a one-time customer but a repeating lifetime customer. One bad experience of buyer’s remorse and your brand perception could be tarnished forever. On the other hand, one superb experience can lead to a brand loyal customer who may even become a brand evangelist for you.
1. Keeping Abreast of Competitors' Actions
The marketing management function in a small business can be compared to a series of ongoing chess matches between you and your major competitors. To give yourself the best chance of winning these matches, the first step is to know what your opponents are doing and are likely to do. Every business owner needs to make gathering information about competitors a high priority. If a competitor has historically slashed prices in the summer, you need to have your own response to this tactic planned out so you don't lose customers.
2. Scarcity of Resources
Most small businesses have more ideas for marketing their products or services than they have funds available to execute these strategies. Prioritizing expenditures becomes of paramount importance. You must allocate these resources where they will have the strongest positive impact on sales. The challenge in this allocation process is that the business owner may not be certain about the likely effectiveness of a new marketing tactic. Experimentation takes place -- even guesswork. In some cases, you may guess wrong and the sales results from the tactic are disappointing.
3. Dealing with Competitive Disadvantages
Businesses have both competitive advantages -- aspects of their products and service level that make it easier to attract new customers -- and disadvantages -- areas where competitors' products or services are better suited to meet customers' needs. In the long run, a small business owner seeks to upgrade the company's market offering to narrow the gap between a company and its competitors. In the short run, your challenge is to create a marketing message that emphasizes your own company's strengths.
4. Listening to the Customer
Small business owners are close to their customers or customer prospects -- they may speak or interact with them on a daily basis. It's important to use these interactions as an opportunity to learn about what customers really want or need. Every conversation provides chances to gather information that can help you tailor your business operation to be closely aligned with these customer preferences. You have to make an effort to ask them what you can do to better serve their needs -- as well as finding out their opinions of your competitors. An additional challenge is that customer tastes are constantly changing and you must adapt your products or services to meet these changes.
5. Getting the Message Out
Small business owners have to use a variety of means to spread the word about a company and what it offers. Possible choices include direct mail, print, radio or television advertising, social networking and traditional in-person networking. A major challenge is time. Given businesses' operational management responsibilities -- overseeing all aspects of how the business runs -- owners may neglect setting aside time for planning and executing a marketing campaign. The effect of not spending enough time getting the word out is lower potential sales. You cannot afford to just hope that customers find your business.