WHAT IS MARKETING MANAGEMENT?
Marketing management refers to an organisational discipline that focuses on applying marketing orientation, methods and techniques practically inside business organisations and also focuses on the way a firm manages its marketing activities and resources.
Marketing management also called the science and art of selecting target markets for products and services and gathering, retaining, and growing consumer market through creating, communicating and delivering superior customer value.
Marketing is known as a process used for determining what kinds of products and services might become able to grab customers’ attention and to gain their interests. Furthermore, it is the strategies a business organisation needs to follow in practising sales, business development, and communication-related activities to run its regular operations.
According to the definition provided by the American Association of Marketing, marketing management is a process of planning and execution of the conception, distribution, and promotion of thoughts, ideas related to goods and services for creating, exchanging and satisfying individual as well as organisational objectives.
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 organisation’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 organisation called Marketing Management. In support of the statement made by Philip Kotler, marketing management includes planning, analysing, implementing and controlling programs that are designed for bringing the desired exchanges with the target audiences to gain personal as well as mutual gain.
Marketing management heavily relies on the adoption and coordination of product, price, place, and promotion for achieving the required response from the target audience. It focuses on the physical and psychological factors of Marketing. The physical marketing factors focus upon fulfilment of the demand and needs to buy better products by accessing better distribution channel and other functions.
On the other side, psychological factors use to focus on discovering consumers’ wants and needs along with the changing patterns of their buying behaviour, preferences, habits and more. Now our experts from Assignment Help Australia will tell you about the elements of Marketing Management.
Elements of Marketing Management
Marketing management practices are very important for every business as it helps businesses to understand and gauge the exact need and want of their target customers. It helps companies to improve products and services for satisfying customers’ needs optimally. Expand the technique to reach potential customers.
While practising marketing management activities, a company needs to focus on five different concepts such as production concept, product concept selling the concept, the marketing concept, and societal marketing concept. The production concept is oriented with the market domination of a business. This concept has emerged with the concept of capitalism during the mid-1950s.
During the 1950s as per production concept, companies were primarily concerned with manufacturing, production, and issues related to production and manufacturing efficiency. Companies that follow this concept believe that primarily customers want products which are accessible and affordable.
Product concept works on the basis of an assumption made that customers use to prefer products with greater price and quality and the availability of such products does not influence their buying decision.
Selling concept uses to focus on making actual sales of products and services. It focuses on every possible way of selling a product, without considering the product quality or customers’ need for the product.
The marketing concept is the concept of promoting a product into a market and towards its prospective customers. A company which focuses on this concept uses to place its consumers at its centre and gears its all activities towards those consumers.
A company always aims to measure and understand its target customers’ wants and needs and in order 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.
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 organisation 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 organisation 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 Assignment Experts will tell you about the Functions and Importance of Marketing Management.
Functions and Importance
Marketing management process is solely concerned with chalking out a definite program, after analysing and forecasting the prevailing market carefully. It helps an organisation to execute its plans in order to achieve its objectives. The concept of marketing management becomes very important for business organisation 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 organisation to apply marketing techniques inside and outside of the organisation and to manage resources of the organisation 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 fulfils 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.
In terms of creating a highly effective strategy of marketing management, every business organisation 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 behaviour 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 organisation has its own objectives and goals. Marketing objectives of an organisation include the targets it wishes to reach or achieve through marketing. These marketing objectives need to be in coherence with the organisation’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.
- Planning: 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.
- Organising: Organising is a process of implementing the plan. Organising includes identification and grouping those activities which could contribute to achieving the marketing goals of an organisation. In the field of marketing management, organising is a way by following which a company’s management functions are organised to make each function contributes its best in the achievement of the marketing objectives. Organising includes every obligations, responsibilities, and supremacy of the people working as a member of a company’s marketing team.
- Directing: 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 organisation 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 organisation 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 smooth and conflicts free working environment that ultimately assists a company to meet its marketing objectives and goals.
- Coordinating: It refers to the harmonious adjustments of marketing activities by an organisation. It involves the task of creating coordination among different activities of a business organisation such as product planning, development of a product, forecasting of sales, transportation, warehousing and more.
- Staffing: It is the procedure of hiring a required number of skilled personnel and employees for several positions in an organisation. 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 organisation. By appropriate staffing, managers ensure the organisation 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.
- Controlling: 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 organisation 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.
- Evaluation: The functions of marketing management also involve analysis 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 organisation to detect the loopholes of its marketing activities and to reset or reshape its marketing activities to achieve its marketing objectives successfully.
Impact of Marketing Management on an Organisation’s Success
In today’s highly competitive business world, marketing acts as the interface between an organisation 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 globalised 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 capitalising 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 optimising the consumers belongs to the target market. For more information, you can also check with Assignment Help.