WHAT IS MARKETING MANAGEMENT?
Marketing management refers to controlling, planning, organizing, and implementation. Marketing management also works on the implementation of strategies made to satisfy the needs of the customers and services. In short, marketing management performs all the functions in the field of marketing. It identifies the current marketing opportunities and strategies for exploring opportunities. The main purpose of marketing management is to remove the deficiencies observed in the marketing plans and policies. It also looks after the system of an organization.
However, marketing management also involves strategy to use of marketing mix. Majorly, this concept is made to determine the products and services made of the interests of customers. It explores the process of understanding, creating, and delivering value to the targeted business. The main benefit is that it smoothens the process of exchange of services from the seller to the buyer. It aims to make the efficient operation of marketing strategies.
Students pursuing an MBA in marketing management get to learn about all the strategies and techniques used in the marketing field. Areas such as sales, leadership management skills, market research, etc come in marketing management studies. Students will be able to analyze the marketing choice through the identification of competition, economics, and so on. Moreover, they will learn about the tools used in marketing strategy to ensure the everyday success of the company. Marketing management revolves around advertising, strategy, sales, and branding.
Core components of marketing
The concept of marketing management involves marketing and management. Management is a set of processes related to planning, organizing, directing, motivating, coordinating, and controlling a business organization’s various activities. On the other side, marketing stands as the procedure of satisfying customers’ wants and needs. Management of different types of marketing activities of an organization called Marketing Management.
Generally, marketing management functions involved in the distribution of services and goods. But, the distribution to the target audience heavily focuses on the psychological factors of marketing. The psychological factor focus on discovering consumers’ needs with the changing pattern of their preferences and buying behavior. Some of the important core components of marketing management are:
- Market research: It involves identifying consumer’s buying habits, market size, market growth and decline, and current trends.
- Market strategy: It is the path to sales goals. The market strategy looks at the entire marketplace and then makes a strategy according to that.
- Budget: It involves a month-by-month schedule of what you plan to spend on marketing.
- Target audience: It is important to know what the target audience is for good results.
Now our experts from My Assignment Help will tell you about the elements of marketing management.
Concepts of Marketing Management
For every business marketing management is very important. It helps businesses to understand the exact need and wants of their target audiences. It helps companies to improve products and services for satisfying consumers’ needs optimally. Also, it expands the technique to reach potential customers.
While practicing marketing management, a company needs to focus on different concepts. This includes the concept of production, product, selling, marketing, and societal marketing. This concept has emerged with the concept of capitalism during the mid-1950s. Companies that follow this concept believe that primarily customers want products that are accessible and affordable. Here we have mentioned all these concepts in a detailed manner:
The production concept is made for consumers to attract them more to a particular service. It follows an idea of targeting consumers who favour affordable and available products. This is the oldest and most followed concept in the field of marketing management. It has the right orientations which guide sellers.
Companies that adopt the production concept run a huge risk. One of them is concentration only on a narrow line operation. This may result in the loss of the main slight.
Most of the time, the production concept may lead a brand/company to marketing myopia. The management does focus on enhancing manufacturing or production and distribution efficiency. Though there can be some situations wherein the production concept can still prove to be a beneficial philosophy.
It works on the basis of an assumption made that customers prefer to use products with greater price and high-quality. However, the availability of such products does not influence their buying decision.
The product concept holds that consumers’ will favor products that offer the most quality and innovative features. In the product concept, marketing strategies are focused on making a continuos improvement.
Product quality and improvement are important parts of marketing strategies, sometimes the only part. Targeting only on the company’s products could also lead to marketing myopia.
For instance, let us consider a company that is making high-quality floppy disks. But does the customers really need a floppy in this grown-up world? Probably not.
Today, consumers have way better options than floppy disks. For storing the information they can use more effective products. They can be portable hard disks, SD memory cards, USB Flash drives, etc. This shows that the company should shift from its current manufacturing regime. No matter how good their floppy disks are, they will not turn out to be beneficial for expansion or growth. Thus, instead of focusing on making the best floppy disks, it aims at meeting the data storage requirements.
The selling concepts say that customers will not buy enough of its products unless it does not emerge on a large-scale. Moreover, Consumer will show their interest if the product is showing its promotional efforts to attract them. Under this concept, the management personnel focuses on building large sales transactions. It does not focus on creating a long-term customer relationship that may help them generate more profit.
You can consider it simply in which a company has the prime aim of selling the products it manufactures. It does not prioritize making products or availing services that its target consumer wants. It is transparent that such giant selling policies are prone to lose as it contains a high level of risks.
The marketers work by assuming that the consumers will be coaxed into purchasing the services will admire it. In case they don’t like it, they forget their disappointment and purchase it later again. This assumption is again considered risky as it is costly and poorly developed.
It uses to focus on making actual sales of products and services in every possible way of selling a product. It does not consider the product quality or customers’ need for the product.
This concept of promoting a product into a market and towards its prospective customers. A company that focuses on this concept uses to place its consumers at its center. Also, it gears all activities towards those consumers. A company always aims to measure and understand its target customers’ wants and needs and to understand it the company sets and executes marketing strategies according to the market research starting from the product conception to sales.
Relative to the other marketing concept, the concept of societal marketing is new. It highlights the wants and needs of a company’s target market along with the act of delivering better customer value compared to the competitors. Moreover, it emphasizes the significance of customer and social well-being by consumer welfare and societal welfare.
As per the marketing concept, the knowledge of the requirements and wants of consumers is highly responsible in achieving organizational goals. It stresses the fact that companies should be able to identify the demand of their target markets. Following this, they should deliver the desired products or services to satisfy customers. Also, an entity should consistently strive to produce better than its competitors to stand out.
Basically, this concept runs on a “consumer first” model. Under the marketing concept, customer aims and value and the gateway to reach sales goals and profit. It is thus considered to be a consumer-centric approach or “sense and responds” philosophy. The main job of a company following the marketing concept is not only finding the right customers for its products but also finding right products to its consumers.
Selling and marketing concept
At times students find selling concept and marketing concepts confusing and similar. However, they have a striking contrast. Both of them are unique in themselves, plus, they are completely different from one another.
Figure 1: Concepts of Marketing Management
In today’s rapidly growing and changing market competition, customers’ choice, companies use to consider all these concepts to set effective marketing strategies. The more the marketing strategies are effective the great a company becomes able to achieve its marketing objectives within less time and cost. All the five above mentioned market concepts are required to be followed properly by every business organization in order to perform its marketing management practices in the most effective way. Besides these marketing management concepts, there are seven basic principles that are required to be followed by every business organization while conducting marketing management practices. These seven marketing principles are a product (or service), price, place, promotion, people, process, and physical evidence. All these elements of marketing are tremendously significant for a company to plan, develop and market a product successfully. Now our Instant Assignment Help experts will tell you about the functions and importance.
Functions and Importance of Marketing Management
The marketing management process is solely concerned with chalking out a definite program, after analyzing and forecasting the prevailing market carefully. It helps an organization to execute its plans in order to achieve its objectives. The concept of marketing management becomes very important for business organizations intended to meet rapidly increasing market competition as well as the requirement for more improved distribution methods for reducing cost and increasing profits. In today’s highly competitive business environment, marketing management becomes one of the most vital functions in a business enterprise.
It assists a business organization to apply marketing techniques inside and outside of the organization and to manage resources of the organization that are held for conducting marketing activities. The reasons for which marketing management become very important to include its ability to satisfy customers’ needs, increase a company’s market share, production of new and existing products, launch new and improved products, and reduce the cost of distribution and sales. It also important because it provides employment opportunities and hence fulfills social obligations, and raises a country’s per capita income. By creating and increasing demand for products and services it accelerates market growth, competition, and new product development. The marketing mix often helps the management personnel to a great extent.
In terms of creating a highly effective strategy of marketing management, every business organization is required to have a clear and strong understanding of its own business operations, market from where it operates, and the customers for whom it operates. In order to assist a company to understand the market and the behavior of customers located in the market, marketing management takes a vital role by performing different types of functions. The key functions of marketing management are discussed below:
Setting marketing objectives
Every business organization has its own objectives and goals. Marketing objectives of an organization include the targets it wishes to reach or achieve through marketing. These marketing objectives need to be in coherence with the organization’s overall objectives which can be short-term or long-term depending upon the marketing type. By managing marketing related activities, a company becomes able to achieve its marketing objectives easily.
The root of every business is planning. It requires that a company’s marketing managers need to aware of every factor influences the external and internal business environment that might impact the company and its business operations. The managers must be able to forecast their company’s future condition by considering the environmental conditions. Once a company sets its marketing objectives, it starts to formulate a roadmap to follow for achieving these objectives. The company plans the way and formulates strategies, devices procedures and policies to achieve the goals it has set previously.
Organizing is a process of implementing the plan. It includes identification and grouping those activities which could contribute to achieving the marketing goals of an organization. In the field of marketing management, organizing is a way by following which a company’s management functions are organized to make each function contributes its best in the achievement of the marketing objectives. Other than this it involves every obligations, responsibilities, and supremacy of the people working as a member of a company’s marketing team.
For the managers of a company, it is their obligation to supervise whether the employees are working effectively and efficiently in order to support the organization to meet its goals. The managers of a company provide directions to the employees on how to work and what to achieve. Hence, the direction of a company’s management personnel motivates employees to give their best for the organization they work in. Proper direction of managers or management personnel not only motivates employees but also inspires them, guides them and build a good relationship with them by exercising effective leadership practices within an organisation. It ensures a smooth and conflicts free working environment that ultimately assists a company to meet its marketing objectives and goals.
It refers to the harmonious adjustments of marketing activities by an organization. It involves the task of creating coordination among different activities of a business organization such as product planning, development of a product, forecasting of sales, transportation, warehousing and more.
It is the procedure of hiring a required number of skilled personnel and employees for several positions in an organization. In order to manage the existing market, skilled employees are selected through an interview and after then they placed in different positions that suit them the best. The human resource manager along with the marketing manager selects personnel and employees and then trained them to make them fully capable of providing their best for the organization. By appropriate staffing, managers ensure the organization about gaining the maximum benefit from the employees recruited by them. Employment of the right and highly efficient employees is a crucial task in ensuring the success of the market plan.
The procedure of comparing the planned marketing activities with results and after that, rectifying errors, if any, is called controlling. Hence, in order to practice controlling activities, an organization must set some standards and its actual marketing performance needs to be compared with those standards for finding out flaws or defects. Then, corrective actions need to be taken for enhancing marketing activities. Controlling ensures a company that its performance does not deviate from its standards. While performing controlling activities, the performance standards established by the marketing managers of a company are often represented in terms of products (in units) produced, number of damaged or defective products, customer service level, costs, revenue, profits and more.
The functions of marketing management also involve analysis such as PESTLE, SWOT, etc . and evaluation of the productivity of a company’s marketing campaigns, programs as well as evaluation of its employees’ performance. This particular function of marketing management helps an organization to detect the loopholes of its marketing activities and to reset or reshape its marketing activities to achieve its marketing objectives successfully.
Figure 2: Functions of Marketing Management
Impact on an Organisation’s Success
In today’s highly competitive business world, marketing acts as the interface between an organization and its external environment i.e. its surroundings, more specifically with customers. It becomes one of the most crucial and significant activities of modern corporate companies and their management. The rapidly increasing competitive pressure, ever-changing markets, shorter product life-cycles in the globalized world becoming increasingly important to consider because these allow a company to create real-time corporate value. In accordance with the growing demand for conducting marketing practices, the management of marketing activities also increased. Marketing management practices of a company help it to focus on its customers’ demands in a consistent manner and make it more capable of capitalizing its potential customers.
It assists a company to make need-oriented focus to transform potential customers into actual customers, to create brand image and value and to build a profound insight into the customers and the industry from where it operates. Marketing management practices helps a company to reduce barriers to its growth. In terms of promoting and making a company and its products familiar to the target audience, marketing plays the most important role.
The process of managing the here major marketing activities like segmenting, targeting and positioning ensures a product’s success and failure Appropriate strategies of marketing management practices helps a company to identify the most profitable customer segment i.e. the target market, and to develop marketing events and campaigns for optimizing the consumers belongs to the target market. The more a company successfully selects a target market, the greater it will be able to make its product successful by injecting the ability to generate revenue into such a product. For more information, you can also contact Assignment Help, the experts would be happy to help.