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.