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What is Marketing Management?

Marketing management is a business process of planning and executing the conception and pricing. promotion, and distribution of ideas, goods, and services to create exchanges that help to satisfy individual and organizational needs.

Or you can say that Marketing Management is a process that includes the use of marketing strategies to help your business to determine the place, price, product, and promotion so the business can make people buy their goods and services and make lots of profit from selling.

Objectives of Marketing Management

The followings are the objectives of marketing management:

1. Increase in Sales Volume
2. Increase in Net Profit
3. Growth of Enterprise

Increase in Sales Volume

The objective of marketing is not only the satisfaction of consumers’ needs but increase the sales volume of the concern also. An increase in sales volume will increase the profits of the concern as well as its future growth potentiality.

Increase in Net Profit

Profit is residual of sales minus costs. When sales increase, the costs reduce due to economic of scale and there is an increase in net profits. It is through marketing that proper consumer needs are sorted out and satisfied which in turn increases the net profits of the organisation.

So, a number of marketing experts agree that the maximisation of profits is one of the prime goals of marketing.

Growth of Enterprise

The object of an organisation is stability with growth and profitability. Marketing contributes to it by knowing all about the customers and providing them with what they demand. It will increase the goodwill, sales, and profits of the enterprise.

When an organisation has sufficient profits, then the resources are generated and invested back for growth. It has been realised that even at a level, the economy can grow by free playing or market forces.

Functions of Marketing Management

The followings are the functions of marketing management:

1. Analysis of Market
2. Formulating Marketing Goals and Objectives
3. Organising the Marketing Activities
4. Product Management
5. Controlling Marketing Activities
6. Customer Relationship Management
7. Employee Management
8. Identifying New Business Opportunities
9. Developing New Marketing Strategy

Analysis of Market

The main aim of marketing management is the creation and sale of company products. The sale of the product is possible only when the product is matched with the market. For it, the marketing manager has to make study the various environmental factors that affect the demand for their products. This analysis is done in marketing research.

Formulating Marketing Goals and Objectives

After analysing the market, the marketing manager lays down the marketing goals to be achieved. The long-term goal of all the marketing activities is to earn a suitable return on the resources employed in the business.

The short term goal may be fixed in terms of sales volume to be achieved in different market segments or the market share of the company in the total industry sales. As far as possible, these gaols must be verifiable and comparable.

Organising the Marketing Activities

The third responsibility of the marketing manager is to develop an internal organisation to achieve the goals laid down. The organising function includes the following:

• Determining the total marketing activities to be performed in the light of the analysis of market conditions.
  
• Grouping of these activities
  
• Assigning the grouped activities to individuals and departments.
  
• Delegating them authority
  
• Exacting responsibility from them

Product Management

Marketing manager plans and executes decisions in the matters concerning pricing, packaging, standardising, branding, and grading decision also. He has also to take decisions as regards advertising media, distribution channels, storage facilities, transportation and minimum product stock etc.

Controlling Marketing Activities

Control is an integral part of every managerial activity and the marketing manager is no exception. He has to control the various activities of his department, Successful performance of marketing activities cannot be ensured unless these activities are properly controlled.

Control involves the determination of standards of performance, measurement of actual performance, comparison of actual performance with the standards and correcting deviations if any.

Customer Relationship Management

The marketing manager performs the function of championing customer relationship management in the organization. The marketing manager collects this information from the organization’s customer database to help create a customer satisfaction survey.

Marketing managers then share this information with other employees to ensure they offer excellent customer service to their clients in order to build lasting relationships.

Employee Management

Marketing managers are in charge of the marketing department and therefore are responsible for employees within their department. They assign duties and set targets for departmental staff. It is also the function of marketing managers to perform periodic performance evaluations of the staff working for them.

Identifying New Business Opportunities

Marketing managers analyze market trends with an aim of identifying unexploited or new markets for the organization’s products and services. By studying the purchasing patterns of consumers, they can identify the peak and off-peak demand periods for their products.

By employing sales forecasting, they can estimate the future performance of the organization’s products. Also through market analysis and forecasting, they can develop strategies to ensure the organization remains competitive.

Developing New Marketing Strategy

Marketing managers are responsible for developing new marketing strategies for their organizations. These strategies outline clearly how an organization will promote its products and services to its target market with an aim of increasing its sales volumes and maintaining a competitive edge over its competitors.

FAQ Related to Marketing Management