Friday, May 24, 2024
HomeBusinessWhat is Marketing Management?

What is Marketing Management?

According to Philip Kotler, the marketing guru, “marketing management” is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.

Marketing management is what informs a firm’s marketing plan through the utilization of accurate market knowledge. This is usually obtained by means of research and surveys in a systematic approach. Being thoroughly aware of a company’s current market, setting realistic goals and targets, developing new market-penetration strategies as well as implementing effective marketing plans within budget are all part of marketing management. In a nutshell, marketing management is a business function which that makes and develops an institution’s marketing strategy.

What are the Objectives of Marketing Management?

Objectives of marketing management could be divided into the following three main categories:

  • Basic Objectives
  • Auxiliary Objective
  • Societal Objective
Objectives of Marketing Management

Basic Objective – The basic or fundamental objective of marketing management is to maximise consumer satisfaction, and maximising enterprise profitability through maximising consumer satisfaction. The twin aspects of this fundamental objective seek to reconcile the objectives of consumers with those of the organisation.

Auxiliary Objective – Auxiliary objectives of marketing management which are helpful in the attainment of its basic objective are as follow:

(i) Creation of Demand:

By identifying consumers’ needs, tastes, preference etc. through conducting marketing research and producing goods and services for the best fulfilment of consumers’ needs; marketing management creates customers or demand for its products. This function of demand creation is the basis of the operational life the business enterprise.

(ii) Maximising Market Share:

For ensuring long-term profitability of the business enterprise; marketing management has to pursue the objective of maximising market share. In order to attain this objective, marketing management has to constantly monitor its products according to changing consumer preferences and establish the uniqueness of its products among items offered for sale by competitors.

(iii) Building Goodwill:

Marketing management is supposed to build the goodwill of the enterprise, in the market; by manufacturing and distributing quality goods at affordable prices. Many leading industrial enterprises, in the world, have created goodwill for themselves, in this manner. For example, Tata Group, Birla Group, Ambani group etc.

(iv) Survival and Growth Amidst Intense Competition:

The marketing management must develop objectives, strategies and policies; as would help ensure the survival and growth of the enterprise amidst intensely competitive conditions. The survival of the business enterprise among intense competition becomes imperative; as; otherwise, attainment of any objectives of management would be in suspense.

In fact, all the worldly pleasures are of no use to a person, who is no more, in this universe. So also with business enterprises, which can realise any of their objectives, only when they manage to survive, in the competitive market.

(v) Conducting Marketing Research:

Marketing research is the heart of marketing management. All marketing management decisions are based on the outcomes of such research. Therefore, marketing management must create and well maintain a specialised ‘marketing research cell’ within the marketing department.

(vi) Development of Marketing Mix:

Marketing mix-a unique combination of various marketing ingredients like product, price, place and promotion is a practical instrument in the hands of the marketing manager to realize the objective of sales and profit maximization. Development of an appropriate marketing mix is, therefore, a significant auxiliary objective of marketing management.

How to Develop Effective Leaders in Your Organization

Societal Objectives: The important societal objectives of marketing management could be stated to comprise of the following:

(i) Best Utilisation of Nation’s Precious Resources:

Attainment of this social objective is possible when marketing management refrains from producing items whose consumption may be injurious to public welfare e.g. liquors, cigarettes, vulgar movies, unnecessary luxurious items etc.

(ii) Undertaking quality production at most reasonable prices; so as to enable the poorer sections of society to consumer the essential goods needed by them.

(iii) Minimising Costs of Distribution:

Marketing management should follow those marketing policies, which result in the minimisation of distribution costs; so that the price payable by the ultimate consumer is the lowest possible one.

(iv) Avoiding Unfair Trade Practices:

Marketing management must be socially responsible and must avoid indulging in unfair trade practices, like the following:

1. Undertaking false advertising

2. Resorting to profiteering through black-marketing.

3. Aiming at driving the small industrialist or trader cut of market.

4. Having unfair dealings with customers and suppliers.

5. Producing defective packaging; so that the packet contains less goods or inferior quality goods contrary to specifications on the packet-label.

(v) Emphasis on After-Sales Service:

Marketing management must pay utmost attention to after-sales services-free of cost; so that consumer does not feel being fleeced by the manufacturer or trader.

The objectives of marketing management are varied and complex. Still, all ultimately aim to achieve one overarching goal: maximizing the value of the company’s offerings for both the organization and its customers.

One key objective of marketing management is to conduct comprehensive market research and analysis to gain a deep understanding of the needs, wants, and behaviors of target customers. By gathering data on customer preferences, buying habits, and pain points, marketing managers can develop targeted marketing campaigns and product offerings that resonate with their audience and drive engagement and loyalty.

Another critical objective of marketing management is to develop and implement effective pricing strategies. By understanding the competitive landscape, analyzing market trends, and conducting thorough cost analyses, marketing managers can determine the optimal price point for their offerings, balancing profitability with affordability for customers.

Brand management is also a key objective of marketing management, which involves building and maintaining a strong, recognizable brand identity that resonates with customers. This can involve developing brand messaging, creating marketing collateral, and building customer relationships through social media and other channels.

Finally, marketing managers must also focus on driving sales growth and revenue generation. This can involve developing and implementing effective sales strategies, managing marketing budgets and resources, and measuring and analyzing the effectiveness of marketing campaigns.

The objectives of marketing management are multifaceted and complex, but all ultimately aim to drive business success by maximizing the value of the company’s offerings for both the organization and its customers.

Must Read How to Start a Business: A Step-by-Step Guide

What are the 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.

  • Standardization 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 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 to advertise programmes, preparing the advertising budget etc.

What is distribution management in marketing?

Distribution management refers to the process of overseeing the movement of goods from supplier or manufacturer to point of sale. It is an overarching term that refers to numerous activities and processes such as packaging, inventory, warehousing, supply chain, and logistics.

Distribution management is an important part of the business cycle for distributors and wholesalers. The profit margins of businesses depend on how quickly they can turn over their goods. The more they sell, the more they earn, which means a better future for the business. Having a successful distribution management system is also important for businesses to remain competitive and to keep customers happy.

Understanding Distribution Management

Distribution management is critical to a company’s ability to successfully attract customers and operate profitably. Executing it successfully requires effective management of the entire distribution process. The larger a corporation, or the greater the number of supply points a company has, the more it will need to rely on automation to effectively manage the distribution process.

Modern distribution management encompasses more than just moving products from point A to point B. It also involves gathering and sharing relevant information that can be used to identify key opportunities for growth and competitiveness in the market. Most progressive companies now use their distribution forces to obtain market intelligence which is vital in assessing their competitive position.

There are basically two types of distribution:

  1. commercial distribution (commonly known as sales distribution)
  2. physical distribution (better known as logistics)

Distribution involves diverse functions such as customer service, shipping, warehousing, inventory control, private trucking-fleet operations, packaging, receiving, materials handling, along with plant, warehouse, store location planning, and the integration of information.

The goal is to achieve ultimate efficiency in delivering raw materials and parts, both partially and completely finished products to the right place and time in the proper condition. Physical distribution planning should align with the overall channel strategy.

Must read Family Life and Parenting Styles

Advantages of a Distribution Management Strategy

Aside from keeping profits up, there are many reasons a company may want to use a distribution management strategy. First, it keeps things organized. If there was no proper management system in place, retailers would be forced to hold stock in their own locations—a bad idea, especially if the seller lacks proper storage space.

A distribution management system also makes things easier for the consumer. It allows them to visit one location for a variety of different products. If the system didn’t exist, consumers would have to visit multiple locations just to get what they need.

Putting a proper distribution management system in place also alleviates any potential for errors in delivery, as well as the times products need to be delivered.

Distribution Management as a Marketing Function

The fundamental idea of distribution management as a marketing function is that the management of distribution happens in an ecosystem that also involves the consideration of the following:

  1. Product: Not always a tangible object, product can also refer to an idea, music, or information.
  2. Price: This refers to the value of a good or service for both the seller and the buyer, which can involve both tangible and intangible factors, such as list price, discounts, financing, and likely response of customers and competitors.
  3. Promotion: This is any communication used by a seller to inform, persuade, and/or remind buyers and potential buyers about the seller’s goods, services, image, ideas, and the impact it has on society.
  4. Placement: This refers to the process that ensures the availability, accessibility, and visibility of products to ultimate consumers or business users in the target channels or customers where they prefer to buy.

Effective distribution management involves selling your product while assuring sufficient stocks in channels while managing promotions in those channels and their varying requirements. It also involves making sure a supply chain is efficient enough that distribution costs are low enough to allow a product to be sold at the right price, thus supporting your marketing strategy and maximizing profit.

How Does Distribution Management Impact Business?

Distribution management is a key leg in the business cycle for both distributors and wholesalers, with company sales and ongoing profitability impacted by how quickly and efficiently a company can sell and distribute their products.

What Activities Occur During Distribution Management?

Distribution management involves moving finished goods from a manufacturer or supplier to the so-called end user. The process includes warehousing, inventory management, packing, shipping, and delivery.

What Are the Main Distribution Channels?

Distribution channels are the intermediaries through which goods or services pass on their way to the final buyer or consumer. The main channels include wholesalers, retailers, distributors, and in some cases, the internet which we use predominately in 21 century to reach our audience.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

More From the Same

Recent Comments