Introduction to Marketing Management
Marketing Management
The term "Market" refers to where buyers and sellers gather to conduct transactions involving the exchange of goods and services between them. The term "market" arrived from the Latin word "Marcatus," which means “to trade”. Marketing is defined as "a human activity which is aimed at satisfying needs and desires through an exchange process." Marketing management is the administration of marketing functions. The creative management function promotes trade and employment by evaluating consumer needs and developing research to meet them. Marketing management is the functional area of business management that deals with consumer satisfaction.
Meaning of Some Important Terms
Needs: It refers to an individual's basic requirement, i.e., those items which are necessary and fundamental for existence.
Wants: It refers to the desire for a particular product. It tends to be ‘satisfier specific’.
Demands: It refers to the number of customers who are willing and able to buy products at various prices during a given period. Demand for any commodity implies the consumer’s desire to purchase the goods, the willingness and the ability to pay.
Utility: It refers to the satisfying power of a product.
Functions of Marketing Management
Functions of Marketing Management
Various functions of Marketing Management required to satisfy consumer wants are described below:
Marketing Research
Marketing Research is the careful study of the product's design, markets, and other activities. It aims to provide management with factual information as a basis for marketing decisions and actions. In the following areas, marketing management helps management to develop policies: products, markets, marketing policies, and sales methods.
Product Planning Development
It is the act of supervising the search for products, screening development, and commercialising new products, refitting existing lines, and closing down the unprofitable business. Businesses must satisfy consumers’ wants and needs for their long-lasting existence, assured by offering products and services that meet consumer requirements. Therefore, product planning is a very important function.
Standardisation and Grading
Standardisation is the process of setting up standards and producing products in adherence to those standards and also includes the process by which this conformity is assured. Therefore, it confirms the uniformity of the product's size, shape, design, colour, and physical properties. Grading is the process of storing goods in several grades or classes.
Product Pricing
One of the crucial decisions is the product's pricing, as it affects all the parties involved in production, distribution, and consumption. The price of the product affects the volume of production and the amount of profit of a product. A marketing manager has to make decisions on pricing very crucially.
Packaging
Packaging
Packaging a product is also an important marketing function. A package helps to contain, protect, and identify a product. It is an important sales tool. Good and attractive packaging helps in increasing sales of a product. Therefore, the marketing manager has to decide on the type and material of packing, its shape, size, design, and colour.
Advertising and Sales Promotion
Advertising is an activity of advertisement of commercial products or services to prospective customers. Advertising aims to promote the sale of products. The marketing manager has to make several decisions relating to advertising, such as selecting a suitable and economical medium, planning advertising programmes, preparing the advertising budget etc.
Distribution Management
One of the important functions of marketing management is the distribution of products. It involves the decision regarding the channel of distribution and its management. The distribution of products involves a long series of middlemen between the producer and consumer; the marketing manager has to ensure that it takes place well.
Features of Marketing Management
Want and Needs - Marketing management deals with the function of satisfying and fulfilling the wants and needs of the organisation and individuals.
Creating Offers in the Market - Marketing management helps create a complete market offer for a service or product.
Consumer Value - It helps provide value to the money invested by the consumer and provides the greatest benefit to their money.
Exchange Mechanism - Exchange services/ products for money or something that is of value for them, like a barter system.
Characteristics of Marketing Management
The important characteristics of Marketing Management are described below.
Specialised Business Function - Marketing management is a specialised business function. In the past, there was no need to develop a proper theory for the sale of a product, but with the dynamic changing environment, the requirement for the development of a specialised function for the promotion of goods is felt, which results in the development of marketing management.
Integrative Function - Marketing is an integrative function. To accomplish the organisational objectives, it integrates the various other business functions like production, finance, personnel, etc.
Social Function - As a social function, marketing impacts the lifestyles of people by influencing people's tastes, attitudes, desires, and more. The behaviour of consumers in the market is shaped by the marketing activities of sellers.
Management Function - Like other management functions, marketing is also a management function. The preparation of policies, strategies, and programmes related to marketing are mostly managerial functions. They must be planned, organised, directed, coordinated, and controlled to achieve marketing objectives.
Conclusion
The importance of marketing has been widened through many evolutionary processes and shaped as a consumer-orientation stage where the existence of a firm is measured by its ability to satisfy the consumer's needs and demands. The achievements of marketing objectives are two-fold, i.e., customer satisfaction and profitable sales. Marketing management is a creative management function that helps in achieving and dealing with consumer satisfaction problems.
Case Studies
1. Mahima took her kinswoman Ronika shopping at Mega Stores to buy her a brand new bag for her birthday. She was delighted once on payment of the bag she got a colour box and the bag free of value. Determine the technique of sales promotion used by the corporate.
Ans: The sales promotion technique used by the company is Product Combination.
2. Reynolds is a famous watch company. It performs various activities like market analysis, product designing or merchandising packaging, and warehousing. The corporation maintains healthy customer relations through various follow-up activities. This helps the corporation in getting repeat sales orders.
A. Name the concept related to activities mentioned in the above para.
B. Write any two features of the concept identified.
Ans:
A. Marketing is the concept related to the activities mentioned.
B. The two features of marketing are described below:
Want and Needs - Marketing management deals with the function of satisfying and fulfilling the wants and needs of the organisation and individuals.
Creating Offers in the Market - Marketing management helps create a complete market offer for a service or product.
3. Leisure Inn Hotel in Jaipur faced a retardance of low room demand due to the off-season. The Manager of the hotel, Mrs Priya, was terribly disturbed. She called upon the Marketing Manager, Mr Khan, for his suggestions. He advised that the hotel should announce an offer of a ‘2 days and 1-night hotel stay package’ with free breakfast and a one-day spiritual visit to Birla and Moti Dungri Temples. The Manager liked the suggestion very much. Determine the promotional tool which might be utilised by the hotel through which a large number of prospective journeying tourists all over the country and abroad can be reached and persuaded to use the incentive.
Ans: Advertising is the promotion tool that can be used by the hotel.
FAQs on Marketing Management: Key Objectives and Strategies
1. What is meant by marketing management?
Marketing management refers to the process of planning, executing, and overseeing marketing strategies to satisfy consumer needs and achieve organizational goals. It involves analyzing market research, setting objectives, and coordinating resources to promote products or services. Marketing management ensures a business stays responsive to changing market conditions while maximizing profits and customer satisfaction. By using different tools and techniques, marketing managers help organizations build strong brands and maintain a competitive advantage. Ultimately, effective marketing management aligns company offerings with customer demands in a dynamic marketplace.
2. What are the 4 types of marketing management?
There are four main types of marketing management philosophies, each focusing on different priorities in the marketplace. These approaches help businesses determine their overall marketing strategy. The four types are:
- Product orientation: Focuses on product quality and innovation, assuming customers will favor the best products.
- Sales orientation: Emphasizes aggressive selling and promotions to drive purchases regardless of customer need.
- Market orientation: Centers on understanding and meeting customer needs above all else.
- Societal marketing orientation: Considers both customer needs and the long-term interests of society.
3. What are the 5 C's of marketing management?
The 5 C’s of marketing management are a framework for analyzing and understanding the marketing environment. These components help businesses make informed decisions by considering all influential factors. The 5 C’s include:
- Company: Analyzing the organization’s strengths, weaknesses, and goals.
- Customers: Understanding target audiences and their needs.
- Competitors: Evaluating direct and indirect rivals in the market.
- Collaborators: Identifying partners and suppliers who impact success.
- Context/Climate: Assessing external factors like economic trends and regulations.
4. What job is marketing management?
Marketing management is a career that involves leading and coordinating marketing activities within a company. Professionals in these roles are responsible for developing campaigns, managing marketing teams, and ensuring products or services effectively reach their target audience. Marketing managers also analyze data and trends to adjust strategies, set budgets, and oversee brand positioning. A job in marketing management combines analytical thinking with creative decision-making and strong communication skills. Professionals in this field play a vital role in helping businesses grow and adapt in changing markets.
5. Why is marketing management important in business?
Marketing management is essential because it helps businesses attract and retain customers, increasing both sales and brand loyalty. Effective management guides product development, pricing, promotion, and distribution to ensure offerings meet market demands. Strategic marketing also helps companies adapt to competition and industry changes, reducing risks and maximizing opportunities. Without strong marketing management, a business can struggle to connect with its audience and grow in a competitive environment.
6. What are the main functions of marketing management?
Marketing management performs several crucial functions that help a business succeed in the marketplace. Key functions include:
- Market research: Gathering and analyzing data about customers and competitors.
- Product development: Designing offerings that meet customer needs.
- Pricing strategies: Setting prices to balance profit and customer value.
- Promotion: Communicating product benefits through advertising and public relations.
- Distribution: Ensuring products reach customers efficiently.
7. How does marketing management differ from sales management?
Marketing management and sales management are closely related but have distinct roles in business. Marketing management focuses on understanding market needs, creating strategies, and promoting products, while sales management centers on directly selling products to customers and leading sales teams. While both aim to drive revenue, marketing is broader and strategic, covering demographics, positioning, and branding. Sales management is more tactical, concentrated on converting leads and closing deals. Understanding their differences helps businesses coordinate efforts to achieve overall growth.
8. What skills are essential for effective marketing management?
Effective marketing management requires a diverse set of skills to design, execute, and monitor strategic campaigns. Important skills include:
- Analytical thinking: Ability to interpret data and market trends.
- Creativity: Developing unique ideas and messaging.
- Communication: Presenting information clearly to teams and clients.
- Leadership: Managing and motivating teams to achieve objectives.
- Digital marketing skills: Navigating social media, SEO, and online advertising.
