What is Marketing Management about
Introduction to Marketing Management:
Many companies are faced today with strong competition and to survive in such a market environment.
It is necessary for them to understand the customer needs and to align all the business activities to those customer needs.
Introduce you to the essential understanding of marketing and into the key problems with marketing management.
Due to the introduction will provide you with three topics:
- First, you ought to study the most idea and understanding of marketing,
- Second, you get insights into several steps of the marketing management process and
- Third, you learn something about the choices marketing managers need to mate.
If you got the primary points you’ll get a deeper understanding of marketing management through our Master of Science, MBA, and Executive courses.
What is marketing about?
Marketing is primarily about the market and customer orientation of the entire company.
So marketing focuses on satisfying customer needs during a competitive environment.
Looking at the marketing definition during a more formal way we will take the worldwide accepted definition of the American Marketing Association:
“Marketing is an organizational function and a group of processes for creating communicating,
And delivering value to the customer and managing customer relationships in ways in which benefit the organization and its stakeholders”.
So within the daily business and practice marketing management is usually misunderstood.
People say marketing is advertising or marketing is sales but marketing management goes beyond.
So it’s the customer-oriented philosophy of the entire company.
Why is marketing important?
If you pose this question to yourself you’ll find a solution within the history of marketing management.
So if markets become more and more competitive customer orientation is vital for fulfillment.
If the customer has the selection between Company A and B.
He is going to be attracted by the corporate which fulfills his needs best.
Therefore companies need to check out customer needs during a competitive environment.
They have to satisfy customers by fulfilling these knees with the offers.
Impact of marketing:
If you are trying to answer this question you’ll check out a spiral or circle of various effects.
If a company has featured a low customer orientation it’ll not be able really to satisfy customer needs with the offers.
So customer satisfaction rates go down and customers won’t be loyal and therefore the company will lose customers.
To hold the customer base the corporate has got to acquire additional customers which is extremely costly.
So within the end of the day, this company has got to spend tons of money to draw in customers and to be sustainable within the market.
In comparison to the present negative circle of effects increasing customer orientation results in higher customer satisfaction rates.
And higher loyalty and lower acquisition cost and at the top higher and sustainable profitability.
Who applies marketing?
At first, you’d believe the buyer good industry.
But there are many more institutions that apply marketing and customary intention.
Think about industry goods manufacturers, theatres, hospitals, foundations, or environmental organizations.
They all need customer orientation during a competitive environment.
So marketing is applied by profit and nonprofit institutions.
They need professional marketing management to sustain success within the market.
How should the market thing be implemented?
Marketing is all about customer orientation and satisfying customer needs.
Therefore we glance at marketing during a dual way.
First of all, marketing should be implemented as a function within the corporate.
So all the marketing knowledge and expertise are bundled during a department.
In addition, thereto marketing is additionally a group of cross-functional processes.
That means marketing orientation and customer orientation should be included in R&D, production, and service.
So marketing managers need a lookout that the customer orientation is anchored altogether the departments within the corporate.
Role and Relevance of Marketing Management:
Now we’ve checked out marketing, but what’s marketing management?
Management is often explained by this planning process:
We would start with situation analysis we might check out markets, customers, and competitors and in our internal situation.
Then we might derive marketing goals.
Marketing goals are going to be implemented by defining marketing strategies.
And the marketing strategies are going to be achieved by designing marketing activities for the so-called marketing mix.
And then we’ve to determine a marketing organization and a marketing controlling process.
This is the entire marketing management process for implementing a knowledgeable marketing concept.
What is important when performing a situational analysis.
First of all, we’ve to start out with an analysis of our internal and external environment.
Looking at the external environment means we’ve to spot our strengths and weaknesses regarding meeting customer needs.
Looking at the external environment we’ve to spot the relevant market with the customers, the competitors, and sometimes retailers are included.
And then we’ve to research the customer needs that’s a big start line within the external analysis.
We have to seem at our brands and products as compared to the competitors.
In addition to the marketing research, we’ve also to require care about influencing factors of the macro environment.
Often the analysis of the macro-environment is named PESTEL analysis.
That means that we’ve to seem at:
- Ecological and
- Legal influencing factors.
The internal and therefore the external analysis will cause the so-called SWOT analysis.
Where we combine the internal strengths and weaknesses and external opportunities and threats.
Why should marketing goals be formulated?
We often observe false when situation analysis is directly followed by actions.
Action without orientations will cause modeling.
Therefore marketing goals should be formulated. So marketing goals should fulfill different functions.
First of all, they ought to give orientation,
Second, they ought to coordinate activities within the marketing department and within the company,
Third, they ought to motivate decision-makers to achieve the goals,
And finally, marketing goals should fulfill the control function.
That means activities and methods and their achievement should be controlled by having defined goals.
By defining marketing goals we will differentiate between economic and psychographic goals.
Looking at the economic goals:
- We have revenue goals,
- We have profitability goals,
- We can define market share as a goal or sales volume or the contribution margin.
These are commonly economic marketing goals.
Before we achieve these economic goals we’ve to vary something within the customers’ mind.
And therefore we’ve to deal with the so-called psychographic goals.
It’s an awareness of our brand.
It is to make a special image of our brand or a preference that the customer is willing to buy for our product.
And also satisfaction goals are important to seem or to make loyal customers.
Therefore the interplay of psychographic goals and economic goals is important for marketing planning.
In formulating goals often mistakes occur.
Therefore marketing goals need to be defined precisely marketing goals should include the subsequent elements:
First the content, for instance, increase awareness or increase revenue,
Second, the extent of the magnitude increase awareness by 10%,
And then the timing so increase awareness by 10% within the next 12 months,
Finally, the segment focuses on meaning increase awareness by 10% subsequent 12 months.
In Germany or in segment A or B or C.
Only by defining the goals therein way, you’ll achieve the functions.
We have seen before meaning the orientation function, the motivation function, and therefore the control functions of marketing goals.
Only by having defined the marketing goals in such a precise way we will the goal.
Which marketing strategies are appropriate for the achievement of the marketing goals.
We have to develop marketing strategies.
Marketing techniques are long-term plans for the achievement of advertising and marketing goals.
In the literature, you’ll find tons of strategy topologies to a lot of recommendations to develop marketing strategies.
There is no right and no wrong but marketing strategies can increase the probability of a successful marketing concept.
Now strategy topologies are often utilized in marketing management.
- The first strategy typology wars developed by ego ins of two structure growth strategies.
At existing markets and new markets and add existing products and new products.
And then the question is the way to grow.
If you check out existing markets and existing products you’ll grow with the penetration strategies.
For example by cross-selling.
If you would like to grow in new markets together with your existing products you would possibly go international.
So market development means you approach together with your existing products’ new markets.
And then you’ll develop new products for your existing customers that are called development strategy.
Finally, you’ll grow with a more risky strategy that’s if you approach new markets with new products which are named diversification.
- The second strategy typology was developed by Michael Porter.
His focus was on the way to create comparative advantage and he differentiated between two main sorts of strategies.
First is to make a competitive advantage by being the value leader within the market.
That means that the corporate has a rock bottom price for a reasonable quality of a product.
And then the other is quality leadership.
To create a competitive advantage by having the simplest quality within the market and needless to say for a better price indicates the so-called quality leadership strategy.
Michael Porter indicates that both strategies can happen within the mass Mac market and during a niche market.
So a top-quality leader is often profitable during a mass market but also during a small focused niche market.
In addition, to growth strategies and competitive strategies, we will mention tons of more strategy types like branding strategies or timing strategies.
All of those strategies well developed are going to be a basis or platform for the implementation of marketing measures or marketing actions.
What measures are often taken to implement the marketing strategy?
Under this question, we’ve to seem at the so-called marketing mix.
The marketing mix consists of all the measures which we will implement to form our company customer-oriented.
The classical marketing mix consists of the merchandise, the price, the place and promotion, and within these areas.
We have to implement measures which make our company more customer-oriented.
The product policy is usually called the guts of the marketing mix.
Without having a customer-oriented product or service.
Mostly you’ll fail to satisfy customer needs.
What decisions to be made within the product policy area.
It’s about product innovation, it’s about product differentiation and sometimes you’ve got to eliminate products from the market.
But you’ve got to form more decisions.
It’s about the branding of the merchandise or service it’s about packaging and offering additional services.
All these product activities be coordinated to fulfill customer needs.
The price policy is about setting the proper price and therefore the right conditions to draw in customers.
So what are the most decisions within the pricing area to be made?
It’s about setting a price for a replacement product or changing the worth for existing products.
Giving price promotions or price bonuses we’re changing the worth in a dynamic way.
Also, price differentiation may be the main topic within the area of pricing.
So the objective of pricing policy is to satisfy the willingness to pay of the customer during a competitive environment.
Decisions within the area of place or distribution policy are targeted to the question when and where our customers will get the merchandise.
Within the distribution policy area, we’ve to think about two sorts of decisions.
First, we’ve to define the proper distribution channel.
There is a sort of options to design the distribution channel.
Take a physical store or an online shop or a mail-order option.
The second main area of decision is the way to design the physical flow of the merchandise to the customer.
This is all about designing the logistical channel.
So defining the proper distribution policy will cause answering the question when and where our customers will get the merchandise.
Finally, we’ve to make a decision on the way to communicate with our customers.
This is the communication policy area there also are main decisions to form.
First of all, what’s the proper communication channel.
Is it print, newspaper, mailing, or the internet?
Second, we’ve to the site about what to inform the customer.
So it’s about the content for the communication campaign.
In this area mostly advertisement agencies will help the corporate to design an advertisement or a campaign for the communication policy.
All the communication measures should be coordinated to deal with the customer groups in an efficient way.
Finally all the communication channels and therefore the content of the campaigns should be co-ordinated and targeted to the customer segments which are defined in our situation analysis.
How should marketing be organized to answer this question we will check out different options.
First of all, we will define responsibility for coordinating our marketing activities on the merchandise level of so-called product management.
It could even be that we attempt to build responsibilities around our core customers.
It’s called important account management.
Another way is that marketing managers are liable for regions or countries.
And then we will define responsibilities by looking at different marketing functions like development pricing distribution or communication.
It is important that the marketing organization supports the thought that marketing is an overall philosophy of the company.
Why should marketing be controlled?
Marketing controlling is additionally a crucial part to regulate strategies and measures.
Which we’ve defined and implemented is one essential part to form our marketing management simpler and efficient.
So marketing controlling tries to define the most marketing metrics.
And the key success factors and marketing controlling gives also feedback to all or any the decision-makers who are involved within the marketing management process.
So now you got first insights within the basic understanding of marketing and the way the marketing management process works.