THOUGHTS

Why Marketing Management is the Anchor of New Age Businesses

Nov 12, 2018

Over the years, the concept of marketing management has gained increasing importance due to the rising market competition, the need for improved methods of distribution, cost reduction, and the increased profit rates. It is one of the most important functions in a commercial and business enterprise. The key importance of marketing management is that it helps businesses to guide their marketing efforts and identify and fulfill the needs of its customers, benefiting both the customer and the company. Marketing management processes are driven by clear objectives including cost efficiency, product quality, and customer’s need fulfillment.

Marketing techniques form the heart of any business success. The most perspective of your business largely depends on successful marketing. As famously quoted by Philip Kotler, marketing management functions involve the analysis, planning, implementation, and control of programs designed to bring about desired exchanges with target markets, aimed at achieving organizational objectives.

Importance of marketing management

The importance of marketing management is gradually being recognized by several modern businesses as it contributes greatly to the success of the organization. The following are some of the key factors that will help you understand why marketing management is important in today’s highly competitive marketplace:

Improves goodwill of the company

Goodwill refers to the established reputation of a business. A company’s growth often rests largely on the solid reputation that they manage to build for themselves. In short, the company’s image in front of the outside world is the soul of the business. And only having the right marketing strategies can help any company to build a strong reputation. Goodwill can be built by identifying the best opportunities worth pursuing as well as the threats to be avoided.

Product launch

For new products/ services are introduced by companies they need to be made known to potential buyers. For businesses that are struggling to get acquainted with their potential customers and build long-lasting relationships with the customers, the right marketing management functions play a vital role in creating brand awareness. The importance of marketing management lies in the fact that it helps to understand the customer needs, improve the product and/or service, provide the right tools at the right time, and more importantly save more money for the business.

Boost sales

Marketing management functions are the kingpin that sets the economy revolving. The concept of marketing is all about matching a company’s capabilities with customer needs. Once your product, service, or company gets in the place that you expected, it increases your chances of inducing a sale. Marketing management functions also play a great role in reducing the cost of sales and distribution.

Source new business ideas

The marketing management process is a dynamic concept. Marketing differentiates a company from its competitors by recognizing the distinctive benefits and the supporting elements. Marketing also nourishes an environment in the marketplace for healthy competition. Marketing management gives scope for understanding this new demand pattern and improves the effectiveness of the marketing message that is being communicated to customers and partners.

Source of generating revenue

The performance of marketing management functions is important as it is the only way through which the company can generate revenue or income and bring in profits. Any activity that is connected with gaining income is a marketing action.

Key marketing management functions

To create an effective marketing management strategy, it is vital for business enterprises to have a strong understanding of their own business and the market in which they operate. Following are the key marketing management functions:

Planning

One of the key marketing management functions is planning. It requires marketing managers to be aware of environmental conditions facing their organization and also accurately forecast the future market conditions. Hence, after analyzing competitive strengths, weaknesses, opportunities, and threats of the organization, the marketing manager creates an action plan. This helps decide the marketing strategies that should be carried out to achieve the goals of the company.

Organizing

This marketing management function is concerned with developing an organizational structure and allocating human resources to execute the different marketing activities which include activities such as purchasing, selling, assembling, storage, transportation, packaging, pricing, advertising, and sales promotion.

Staffing

The success of marketing management depends on the appointment of right and able employees to perform different marketing activities. It is crucial for an organization to have marketing personnel with the desired capabilities and specialized skills in order to formulate and implement the strategies effectively.

Guiding the marketing activities

This marketing management function involves the manager giving the necessary input and guidance to the employees working in the marketing department. The marketing manager is expected to motivate, inspire, guide, and supervise his subordinates and provide them with good leadership skills. This will help the other members of the team to work effectively and smoothly for the organization.

Controlling the marketing activities

This function ensures that the company’s performance does not deviate from the standards that have been set. Here, the marketing manager establishes the standards of performance, compares the actual performance against the standards, and takes the necessary corrective actions in case any deviations are identified.

Scope of marketing management

Setting Marketing Goals

The key task of a marketing manager is to set the marketing goals and objectives. If the objectives are clearly and precisely defined, it can help them to direct the marketing efforts effectively. The goals and objectives must be correctly communicated with the employee concerned. As far as possible, it must be ensured that the objectives are expressed in quantifiable terms.

 Selecting Target Market

Segmenting the total market and selecting the target market is one of the key functions of marketing management. Marketing in modern companies is based on the target market, and not on the total market. Organizations might face difficulty in satisfying the needs and wants of the entire market. So, the efforts must be concentrated only on well-defined specific groups of customers, also known as the target market. All the marketing functions are directed towards meeting the needs and wants of the target market. The target market should be selected based on the company’s overall capacity.

Formulating Suitable Marketing Organization

A well-defined organizational structure is essential to successfully implement a marketing plan. On the basis of the type of products, geographical concentration of the market, and many other relevant factors, an appropriate organization must be designed. Companies can choose from a variety of options including – geographic organization, functional organization, and matrix organization. The appropriate structure should be prepared and modified based on the company’s requirements.

Marketing Research Activities

Marketing research an essential function of modern marketing. Marketing research involves the collection, analysis, and interpretation of data on any problem that concerns marketing. It provides managers with essential information on which marketing decisions are ideal. Marketing research is essential to adequately know about the consumers and market conditions. Most of the marketing efforts are based on information from marketing research sources.

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