The Importance of Marketing Management

Last updated on August 31st, 2024 at 09:56 am

If you are looking information about marketing management, This article will help you understand the topic in the simplest way. However, before explaining marketing management, I would like you to understand the concept of marketing first.

The Concept of Marketing

Marketing can be defined by its objective, i.e., increasing sales by different promotional methods as a technique of achieving maximum popularity in their respective industry by being everyone’s choice. To achieve the objective of increased sales, marketing involves several operations in different segments. These four segments of marketing are place, price, product, and promotion. 

The concept of marketing revolves around understanding the needs and wants of consumers to achieve the organizational target. It gives the idea that the presumption of these needs and wants will lead to the accomplishment of the goals. Here, needs are the necessities, and want refer to the desires and choices of the consumers. 

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Introduction to Marketing Management 

Marketing management can be defined as the planning, directing, controlling, analysis, and application of marketing methods in order to achieve the desired target. This process of marketing management is to satisfy the market and to increase the market share further. 

The main identifying factor in marketing management is the output, which can be a product or some service. Depending on the output, the marketing management strategies will vary. 

Because a product is a tangible output, whereas a service is an intangible output, and due to the intangible nature of services, marketing for services is a difficult task. 

The Importance of Marketing Management

1. Customer Satisfaction

At the heart of marketing management lies the crucial task of comprehending and meeting customer needs and desires. This is not just a strategy, but a fundamental principle that can bolster customer loyalty and retention for companies.

2. Competetive Advantage

Businesses with robust marketing strategies don’t just compete, they stand out. They have the power to provide their unique values to the customers, setting them apart from the competition.

3. Revenue Generation

A meticulously planned and flawlessly executed marketing campaign has the power to draw in more customers, thereby boosting a company’s sales and revenue.

4. Brand Building

Marketing management assists businesses in enhancing brand reputation and creating a strong and unique presence in the market.

Philosophies of Marketing Management 

Philosophy is an idea that a business uses to operate on the basis of getting the planned outcome. That idea becomes the focal point for all business activities and provides the basis for strategic planning and decision-making.

The marketing concept mainly revolves around 3 philosophies. Those are 

• A production-oriented philosophy 
• Sales-oriented philosophy 
• A market-oriented philosophy 

I. Production-Oriented Philosophy

Production-oriented philosophy in marketing management is concerned about the production or manufacturing factors. There are several segments in this philosophical idea that enhance the process and outcome in their own ways. 

One of the focus areas is on reducing the cost by using mass production techniques. These mass production techniques help to produce on a large scale all while using the same number of workers. Machines are the main factors that help enhance the production quantity. 

This enables the organization to sell the product at a minimal cost without having to compromise on quality. By using this philosophy, the market share can be increased due to lower prices on the same quality product. 

II. Sales-Oriented Philosophy

As the name suggests, in this philosophy of marketing management, the aim is to increase sales using various methods. All the strategies and budgets are formed based on achieving the outcome of the maximum sale.

The organization uses aggressive selling strategies. They keep a close eye on any inquiries regarding their business and take the initiative to contact the consumer. They follow up on the consumer aggressively to make the sale. While making the strategies, they are made on a short-term basis so as to keep up with the changing trends nowadays. 

Organizations that adapted Sales philosophy are more dependent on their promotional techniques. In fact, the larger share of the budget is used for promotional activities. 

III. Market-Oriented Philosophy

  The third philosophy of marketing management i.e. Market oriented philosophy, the ideology of ‘Customer first’ is followed as the first priority. Following up on the customer-centric approach, the organization formulates its strategies. The design, advertising, and pricing, are all strategized while keeping their target customer in mind. 

The organization researches about the consumers, their choices, and their pricing preferences and analyzes that data to make the optimum strategy for their product and business. 

The Process of Marketing Management

Research and development 

The process starts when a business has to be commenced and the decision regarding what product has to be manufactured is made, or when a company desires to improve a previously existing product. The research is conducted with the aim of reaching the maximum population to get a more credible result. 

This research is comprehensive and focuses on all factors of the product. The aim is to collect the data regarding what peoples choice of preference is for quality, what price they expect the product to be, how they think the product could improve and on.

Different research methods are used for this part of marketing management, like surveys, interviews, focus groups, etc. This is done by the marketing research teams. Once the required data is collected, it is used for modification and decision making regarding the product.

Decision making

Decision making is a crucial part of marketing management process. The Marketing Research group then informs the management team regarding the results of the research. The data is analyzed to make an informed decision regarding product improvisation or new product manufacturing decisions. 

By using this data, the price, design, quality can be prioritized and modified upon. 

Supply and Demand

The marketing team is assigned the task of promoting the product and its features or improvisation. The marketing team creates the demand and the front line of The marketing team communicates the product demand to the production department so they can manufacture it accordingly. 

Marketing Mix 

There are four main components on which the marketing management have to operate: place mix, product mix, price mix, and promotional mix. These are the tools used in marketing management for enhanced results. 

Place mix

Place mix refers to the location which has to be considered for business. It is the study of different segments of the location and market. And then the analysis of collected data from these segments for defining, understanding, and strategizing for the selected segment. 

Market segmentation is done on a demographic, psychographic, geographic, and behavioral basis. Where each of the types has several sub-types to be considered for decision-making in marketing management. 

The STP model of marketing management, i.e., segmentation-targeting-positioning, is used as a framework/base for market segmentation. 

Along with segmentation, place mix also includes channel management and channel conflict management on vertical, inter-type, multichannel, and horizontal levels. 

The main objective of place mix in marketing management is to achieve these :

• The right place 
• The right time 
• The right quantity 

Product mix

Product mix in the marketing management refers to the dimensions of products. These dimensions include width, length, and depth. Where width is the number of products, length is the total number of products, and depth refers to the variety of products. 

Another aspect in the product mix is the product development process. This refers to the stages of product development given below. 

In the product development process, “drop” and “go” errors can happen. 

A “drop” error is when a good idea is dropped during selection. A “Go” error is when a problematic idea is adapted for the development process. 

The final segment of the product mix is the product life cycle. In this, the strategies to be adapted during each stage of the product life cycle are to be managed. Each stage requires a different strategy due to the changes in product demand in the market. These strategies include pricing, promotion techniques, targeted markets, etc. 

Stages of the Product Life Cycle (PLC)

The introduction stage is where a new product is launched in the market. This stage is a non-profit stage where the main goal is to capture a market share using market penetration pricing strategy. 

The growth stage is where the demand for products has increased and, as a result of this, the sales are boosted. At this stage, the organization keeps updating the product as per customer demand to retain the customer while aggressively promoting it simultaneously. 

The maturity stage is where the product has reached its limit for improvement. The product has been established and settled into the market. The main aim here is to defend the market share against new and already established competition. 

The decline stage is when the product starts to lose its value and a need for a new product arises. This happens when a new product with more innovative features arises and the whole process of the marketing management has to be performed. Like how Apple launches a new iPhone with more innovations each year to keep up and increase their market. 

Price mix

Price mix in marketing management is about the various aspects of pricing of the product and its varieties. Here, we take into consideration all the costs that are going to occur during the operations. These are considered so that the final price of the product or service can be determined in an optimal way.

The strategies here can differ according to the firms’ plans. 

If the firm plans on gradual growth, they will try to keep the price low to gain more market share. This strategy is usually used for products with lots of competition in the market. This type of planning is done for the long run in the market. 

The firm planning on a short-term basis would adapt a short-term and dynamic strategy for pricing. They would keep the price high to maximize the profit on a larger scale. This type of strategy is used for products with high demand and fewer suppliers. 

Promotion mix

A promotion mix is a group of strategies for promotional activities on different platforms. It focuses on communicating with the consumers regarding what the brand offers them, i.e., the pricing, variety, features, discounts, etc. 

There are a few elements that provide a basis for the promotion mix, they are :

Sales promotion activities are the actions taken by firms, such as flash sales, free demos, buy-one-get-one offers, discounts, etc. 

Personal selling is when a sales executive meets the customer in person and tries to make the sale. This is also called face-to-face selling. 

Direct marketing is a technique where firms promote their product or service directly to the customer through various means such as sales calls, mail, SMS, etc. 

Advertising is the most recognized and dynamic way of promoting and directing through public media. The firms run advertisements on TV, radio, social media, etc. 

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Final Statement

I hope this article helped you find something new and understand the concept of marketing and marketing management. If there are any other points about marketing management that were missing, let me know in the comment box.

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