Explain Marketing Management Process and its Importance?
Email This PostThe term Marketing Management Process and its Importance or Responsibilities of Marketing Management or Scope of Marketing Management are all the same.
Simple Marketing Management process involves-
Effective marketing results in high sales and profit for the organisation. The right offering is created by proper research of the environment, and finally it is made available for the potential buyers at the right price. The Marketing Management starts with understanding the customer, and creating the right product so that it is accepted by the customers.
Marketing management involves several activities, and marketing managers take different decisions based on the changing environments and organisations objectives. The organisations mission helps in deciding on the target market, and identifying and analysing marketing opportunities. Basis the target market selected strategies are formulated for each target market and a suitable marketing mix decisions are taken (Product, price, distribution and promotion). After this the marketing strategy is implemented and controlled.
I. Organisational Mission-
The mission of the organisation lays the foundation of the strategies involved for achieving its goals for a long term. Coining a clear Mission statement helps the management do self-analysis. It defines the organisations basic purpose and what it wants to accomplish. The mission statement is shared with everyone on the organisation as well as with the customers. It forms the soul of the organisation and gives its employees a direction.
Mission statement of eBay –
“We help people trade practically anything on earth. We will continue to enhance the online trading experiences of all – collectors, dealers, small businesses, unique item seekers, bargain hunters, opportunity sellers, and borrowers.”
Mission statement on Sara Lee – (Sara Lee Corporation, 1985, Annual Report, p. 6.)
“Sara Lee Corporations mission is to be a leading consumer marketing company in the United States and internationally by manufacturing, marketing and distributing:
Food and consumer packaged goods products through retail outlets;
Products and services for the food service industry; and
Consumer products through distribution channels that are direct to the consumer.
II. Internal and External Environment-
a. Macro environment-
These are demographic, economic, technological, natural, political-legal and social-cultural environment.
b. Environment of the company-
The departments within the company, resources, skill sets of employees, brand image, etc.
c. Suppliers, Intermediaries and competitors
Decisions related to the products, price, distribution, promotion activities.
d. Global environment
Domestic and international changes.
III. Market Analysis –
The organisations mission gives direction to the marketing managers in identifying marketing opportunities relevant to them. It is a step by step process by which the management does an analysis of the market in terms of its size and characteristics keeping a close watch on the competition. The management decides if the target market will be favourable for the organization in achieving its goals. Information of the market and the competitors is of importance for a favourable Marketing Strategy.
IV. Marketing Strategy –
The organization should have clearly defined responsibilities. This ensures smooth functioning of the marketing function and effective marketing strategies implemented. There are decisions taken with regard to the products, price, promotion activities and target markets (distribution and suppliers) to ensure all the activities are profitable, or they achieve the organisations objectives.
Marketing Strategy involves decisions on which markets to target and how to position products as well as the organisation in the minds of the existing as well as potential customers in relation to the competitors.
It gives clear guidelines on how the marketing objectives will be achieved.
The Marketing strategy consists of –
1) Target Market, Market Offering (Product decision), and allocation of resources
2) Marketing objectives for the Target Market
3) Marketing Program (Marketing Mix, 4P’s)
1) Target Market Selection (Product choice, investment, aligning resources, etc.) –
A target market is selected by breaking down a total market into sub-markets. This is one of the most important tasks of Marketing Management.
(a) The management has to decide if the entire product market is to be targeted, or to concentrate on only a specific demand with in that market
(b) The products that the organisation should offer and should not offer
(c) The management has to keep analysing the market for any changes in preferences and accordingly make changes to the strategy
(d) Whether to serve the market or not, based on the demand, competition, environmental changes.
2) Marketing goals for the target market –
Each Target market has a different Marketing Objective which should be aligned with the Organisations mission.
They are further divided into, 1.Performance, which are specific outcomes such as sales, profits, market share, and 2. Market support objectives, which deal with Brand image, customer awareness.
Objectives should be-
(a) Measurable
(b) Clearly defined as much as possible
For example, the organisation may aim to increase sales by 3% in the next quarter. This helps in measuring the achievements.
3) Marketing Mix decisions-
The organisations marketing function should be aimed at delivering customer satisfaction. Marketing is a process of creating and delivering value. The Marketing Mix has different elements that must be utilised with a proper mix to meet the organizations goals. These are the elements with which the marketer accomplishes his target of delivering a right value.
According to Prof. Keely and Prof.Lazor, “Marketing Mix is composed of a large battery of devices which might be employed to induce customers to buy a particular product.”
The four elements are —product, price, place (distribution), and promotion which constitute the marketing mix of the firm.
V. Implementing the marketing strategy-
Even the best marketing strategies fail if the implementation is ineffective. This involves turning marketing plans into actions to ensure marketing objectives are met. The marketing job is to influence and encourage people inside and outside the company to carry out all the tasks related to implementation of marketing strategy and the marketing mix. It is important that the plan is enthusiastically followed and there is a shared understanding within the organisation towards the marketing vision.
Thomas Bonoma has defined Marketing Implementation as-
Marketing implementation is the process that turns marketing plans into action assignments and ensures that such assignments are executed in a manner that accomplishes the plan’s strategic objectives.
It depends on an action plan which-
• Synchronises all the people and activities together,
• Forms strong organisational structure,
• Has decision and reward structure (HR activities), and
• Has marketing strategies aligning with the company culture (Organisations values and beliefs)(Making Your Marketing Strategy work”, Harvard Business Review, Mar-Apr 1984, Pgs. 69-76)
Thomas Bonomahas given the following skills for implementing marketing programs-
(a) Diagnostic skills- Identification of company level- Implementation failures mainly occur in marketing function, marketing mix, and marketing policy.
(b) Implementation skills- To implement programs successfully, marketing people need –
(i) Allocation skills for budgeting the resources
(ii) Organising Skills to develop an effective organisation
(iii) Interaction skills to motivate others
(c) Evaluation skills- skills to track and evaluate marketing actions.
VI. Marketing Control–
Itinvolves setting standards and monitoring the marketing performance to keep a tab on variation between the set standards and the objectives. Questions raised are- Did our planning and strategy work? What adjustments have to be made?
Planning holds the centre stage for the organisation during the early decisions of business venture, while Marketing Control is the emphasis for 75% of the marketing teams’ activities. Control gives the complete picture for any alterations in the marketing strategy.
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