Marketing Management is the art and science of targeting markets and increasing customer satisfaction by creating, delivering, and communicating superior customer values of management. It is a functional part of the business.
It is planning, organizing, directing, and controlling all the activities related to the marketing of goods and services to satisfy Customers' needs and achieve organizational goals. Production or purchase of goods has no meaning unless the firm is able to utilize them.
Concept of Marketing Management
The concept of marketing management involves the following processes:
Choose a target market
This is the first step to follow as to set a target and gather market information and analyze the available opportunities and threats. For instance, a firm may decide to manufacture LED televisions.
Create goods or provide services as per demand
The marketers first ascertain what the customer wants and then produce goods according to the customer's need to achieve maximum satisfaction of them.
Creating, developing, and communicating customer's superior values
A marketing manager's primary job is to create superior values so that the customers are attracted to the products and services and communicate these values to the prospective buyers and persuade them to buy these products by providing goods of pre-determined specifications or standards quality, price, and packaging.
A good design can improve a product's performance and give it a competitive advantage in the market. For instance, when we plan to buy any product, say, a car, we see not only its features like price, mileage, etc., but also design aspects like its shape, size, colour, style.
Every business concerns try to capture reasonable shares in the market to survive in the competitive world. For this purpose, various promotional methods are used to make the product and services popular. For instance, a marketer of LED TVs, having 8 percent of the current market share, aims at enhancing his/her market share to 20 percent in the next year.
He/She will have to develop a complete marketing plan covering various important aspects, including the method for increasing the production level, promotion of the products, etc.
Marketing goals are majorly set to build the firm's reputation through various image-building activities such as popularizing the products by advertising, conducting public relation program, etc.
Financial Success And Marketing Management
Financial success depends on the marketing ability as marketing management is the focal point of all the business activities. A business firm can achieve its goals by identifying the customers' needs. It satisfies them better than the competitors. It is the responsibility of a marketing manager to take the decisions in the areas of product, price, place, and promotion of goods and services.
The concept of Marketing Management has become an increasingly vital ingredient for business success. Good market management is a result of careful planning and execution, which profoundly affects the business.
Marketing management is not a production activity, but it includes merchandising, packaging, warehousing, transportation, branding, selling advertising, and pricing. It involves many performed activities even before goods are actually produced and continue even after the sale of goods.
For instance, activities such as gathering and analyzing market information to identify customer needs, developing appropriate market plans to achieve market objectives, designing suitable product packages, and giving it a brand name are performed before the actual production.
Similarly, many customer support services and client communication such as after-sales services, customer complaints, maintenance services, etc., are developed to maintain good customer relations for procuring repeat sales and creating brand loyalty for the company's product.
Marketing Management is how the exchange of goods and services can effectively and efficiently maximize customer satisfaction.
Marketing Management Philosophies
Marketing plays a significant role in the economic development of a country. It helps determine the correct type of products and services that the firm should manufacture, the places where it should make products available for sale, the price at which the products should be sold, and the channels that could be used for moving the product to the consumers.
Profits could be maximized by large-scale production, hence reducing the per-unit cost of production because customers would favour those widely available products at an affordable price. Therefore, the management should focus on improving production and distribution efficiency.
The main focus is on the quantity of the product
Means: Availability and affordability of product, improving production and distribution efficiency.
Ends: Profit through the large volume of production.
When the product is of high quality, the potential exchange would be realized because customers favour those products which are superior in quality, performance, and features.
The way to realize business goals lies in making products of high quality because customers favour high-quality products. Thus, the organization should devote energy to making continuous product improvements.
The main focus is on the quality, performance, and features of the product
Means: Continuous improvements in the quality, incorporating new features, etc.
Ends: Profit through improvements in quality of product.
The customer would buy or not buy enough unless they are adequately attracted and convinced to do so. Hence, for increasing the sale of products, aggressive selling and promotional efforts should be taken. To make a customer buy a product, he/she needs to be lured by offering a rebate, discounts, etc.
It undertakes a large-scale selling and promotional efforts. For instance, a commercial video production plays significant role in marketing management. Many firms aim to sell what they make rather than what the market demand is. Such marketing carries high risks.
The main focus is on an existing product
Means: Aggressive selling and promotional efforts, e.g., advertising, sale promotion, personal selling, etc.
Ends: Profit through sales volume.
In the long run, an organization can achieve its objective of profit maximization by identifying customer needs and satisfying them more effectively and efficiently better than the competitors do. Marketing aims to generate customer value at a profit.
The main focus is customer's need
Means: Integrated market in respect of product, price, promotion, and physical distribution.
Ends: Profit through customers' satisfaction.
The task of any organization is to identify the needs and wants of the customers and deliver the desired satisfaction effectively and efficiently so that the long-term well-being of customers as well as society is taken care of.
The main focus is customer's needs and society's well-being
Means: Integrated market in respect of product, price, promotion, and physical distribution.
Ends: Profit through customers' satisfaction and social welfare.
Functions of Marketing Management
Marketing Management is the functional part of a business which consists of a number of activities like planning, organizing, directing, and controlling related to the marketing of goods and services.
For the survival and growth of an organization, the market emphasizes satisfying customers by adopting marketing orientation. Hence, the organization can achieve its goals in the most effective manner.
Gathering and analyzing market information
The marketer first assembles market information and then makes a SWOT analysis, i.e., analyzing the organization's strengths and weaknesses and the opportunities and threats related to the market through the internet or any other medium.
This is necessary to minimize the risk and identify customers' views and needs before deciding on the firm's best opportunity.
It is another essential function of marketing management that leads to developing marketing plans to achieve the organization's marketing objectives that include the online marketing strategy for increasing the level of production, promotion of the product, etc.
Designing and development of the product
This is another marketing management activity that relates to designing and developing the product so that it attracts the target customers, which can improve the performance of the product and give it a competitive advantage in the market.
Grading and standardization
Grading refers to the classification of products into different groups based on their essential features such as quality, size, etc. It ensures that goods' quality is related to a certain quality and raises higher prices for high-quality products.
Whereas standardization is producing goods of pre-determined specifications and standards of quality, price, and packaging, it helps achieve uniformity in the output. It diminishes the need for evaluation of the buyers' products.
Packaging and labeling
These are considered to be the pillars of marketing. Packaging includes designing and producing the container or wrapper of a product, which protects the product from spoilage, leakage, breakage, and it also serves as a promotional tool. White labeling refers to designing the label to be put on the package.
It is the process of giving a symbol or sign to a product, which helps in distinguishing the product from the other competitors. This helps in promoting sales.
The Importance of Marketing Management
Marketing management plays an essential role in an organization's survival and growth by emphasizing customer satisfaction. Marketing is everywhere, either formally or informally. People and organizations engage in a vast number of activities related to marketing. Good marketing management has become an increasingly vital ingredient for business success.
Business planning and decision making
Marketing activities need to collect information that will inform a firm's production plans to decide the quantity, quality of goods they produce based on a perception of anticipated demand.
Developing an exchange relationship
Marketing helps the firms establish a successful relationship with their customers, producing the right product at the right price.
Good Marketing management aims to maximize customer satisfaction, which results in an increased demand for the products and increases sales, which helps the firm achieve increased profit.
Building links with society
Communication between the firm and society can be improved by advertising, sales promotions, and publicity.
Marketing Management has gained importance to meet increasing competition and the need for improved distribution approaches to reduce cost and increase profits.
Today, it is the most crucial function in a commercial and business enterprise. To a more significant extent, the sales plans rest upon the consumers' requirements and motives in the market. Marketing management helps decide the correct pricing, advertising, sales promotion, distribution, and stimulating the consumers through the best services.
Marketing is a vital aspect of the business since it contributes significantly to the success of the organization. Production and distribution depend largely on marketing. It Promotes Product Awareness to the Public, helps to boost productivity, and builds Company Reputation.
Marketing management can help find the right type of products and services that a firm should manufacture, the places where it should make such products available for sale, the price at which the products should be sold.
And the channels that should be used for moving the products to the consumers.
This linkage between the business and consumption centres generates economic activity, raising incomes, more consumption, and increased saving and investments. Marketing management facilitates the activities and functions which are involved in the trading of goods and services.
Marketing management for a firm is necessary as the production of goods has no meaning unless the firm can effectively sell its goods and services. Thus, the Importance of Marketing Management is crucial to any business.