Marketing management is the directing of an organization's resources to develop and implement the best possible strategy in order to reach its desired consumer segment with the goal of maximizing sales of a particular product or service.
The marketing manager is responsible for overseeing and planning new product development, advertising, promotions, and sales as well as managing both the day to day and long-term marketing strategy of an organization. Oftentimes the marketing and advertising departments at a company are joined as one department, the marketing manager will oversee both operations. He/she will also manage employee projects and tasks that help the company launch new products.
· Market Analysis
· Set Goals
· Forecast sales and profits
· Strategies, policies, procedures
· Planning and implementing promotional campaigns
· Coordinating marketing campaigns with sales activities
· Develop and organize marketing strategies
· Oversee the execution of marketing strategies
· Organize resources and overseeing marketing budget
· Product Planning
When planning out a new strategy for a product or service there are several routes a manager can take. The direction he/she decides to go will be mostly dependent on the current demand of the market. After conducting thorough market research and analysis, the manager will choose the best approach for that particular product.
Conversional Marketing is used during negative demand in which consumers strongly, for whatever reason, dislike a product or service. The task of conversional marketing is to convert negative demand into positive demand in order to eventually equal the positive supply level.
During a period of no demand a marketing manager will use stimulational marketing to create positive demand by connecting a product or service with an existing need and/or create an environment where a particular need is felt.
When a large number of consumers share a need that is not being fulfilled there is an opportunity to develop and market a new product or service.
When consumers no longer find a use for a product or there are alternatives available, it is the task of the marketing manager to recreate demand.
Sycro-marketing is used in periods of regular demand, often found in seasonal products. The task is to streamline demand to meet supply capacity.
Even during times of high demand, marketing managers must remain vigilant of the market, competitors, and potential threats.
When supply substantially out-paces demand some marketing managers will decide to attempt demarketing in order to reduce demand. Demarketing can also be used when a company wants to exit the market.
Marketing managers will try to destroy demand when that demand is considered unwholesome.
There are five marketing concepts managers must consider when deciding how to approach the development, advertisement, and sales of a new or existing product/service. It is the job of the marketing manager to analyze the market and understand its customer base to determine which approach will give the company its best chance to reach its goals for a particular product.
The production concept is used when the demand for a product is higher than its supply. The philosophy here is "Supply creates its own demand." Therefore, the focus is on manufacturing more product to make sure it is widely available.
Contrary to the production concept, this concept assumes consumers value products of a higher quality as opposed to price and availability. Therefore, the focus is more on quality and less on quantity. The idea of the product concept is that if you are selling a product of great quality, minimal marketing will be required to sell it.
Where the production and product concepts focus on the manufacturing, the selling concept focuses on the making of an actual sale. The number one focus for the manager is to make money, no matter the quality, needs of consumers, supply, or demand. Because of this, the selling concept entails very aggressive marketing. Typically, this concept will create more short-term sales but lacks in building customer relationships which may result in fewer repeat buyers.
The marketing concept works on the philosophy that consumers buy products that fulfill their needs. A manager that takes the marketing approach will conduct extensive market research to determine the needs of consumers and how to fulfill them better than its competitors. In theory, this should create repeat customers while increasing long-term sales.
Similar to the marketing concept, the societal concept wants to fulfill the needs of the consumers. However, marketing managers with this approach are also concerned about the well-being of society and feel a responsibility to tend to the world around them. The societal concept creates a balance of social and environmental welfare, customer relationships, and sales.
Marketing management employs tools from economics and competitive strategy to analyze the industry context in which the firm operates. These include Porter's five forces, analysis of strategic groups of competitors, value chain analysis and others.
In competitor analysis, marketers build detailed profiles of each competitor in the market, focusing on their relative competitive strengths and weaknesses using SWOT analysis. Marketing managers will examine each competitor's cost structure, sources of profits, resources and competencies, competitive positioning and product differentiation, degree of vertical integration, historical responses to industry developments, and other factors.
Marketing management often conduct market research and marketing research to perform marketing analysis. Marketers employ a variety of techniques to conduct market research, but some of the more common include:
A brand audit is a thorough examination of a brand's current position in an industry compared to its competitors and the examination of its effectiveness. When it comes to brand auditing, six questions should be carefully examined and assessed:
When a business is conducting a brand audit, the goal is to uncover business' resource strengths, deficiencies, best market opportunities, outside threats, future profitability, and its competitive standing in comparison to existing competitors. A brand audit establishes the strategic elements needed to improve brand position and competitive capabilities within the industry. Once a brand is audited, any business that ends up with a strong financial performance and market position is more likely than not to have a properly conceived and effectively executed brand strategy.
A brand audit examines whether a business' share of the market is increasing, decreasing, or stable. It determines if the company's margin of profit is improving, decreasing, and how much it is in comparison to the profit margin of established competitors. Additionally, a brand audit investigates trends in a business' net profits, the return on existing investments, and its established economic value. It determines whether or not the business' entire financial strength and credit rating is improving or getting worse. This kind of audit also assesses a business' image and reputation with its customers. Furthermore, a brand audit seeks to determine whether or not a business is perceived as an industry leader in technology, offering product or service innovations, along with exceptional customer service, among other relevant issues that customers use to decide on a brand of preference.
A brand audit usually focuses on a business' strengths and resource capabilities because these are the elements that enhance its competitiveness. A business' competitive strengths can exist in several forms. Some of these forms include skilled or pertinent expertise, valuable physical assets, valuable human assets, valuable organizational assets, valuable intangible assets, competitive capabilities, achievements and attributes that position the business into a competitive advantage, and alliances or cooperative ventures.
The basic concept of a brand audit is to determine whether a business' resource strengths are competitive assets or competitive liabilities. This type of audit seeks to ensure that a business maintains a distinctive competence that allows it to build and reinforce its competitive advantage. What's more, a successful brand audit seeks to establish what a business capitalizes on best, its level of expertise, resource strengths, and strongest competitive capabilities, while aiming to identify a business' position and future performance.
Two customer segments are often selected as targets because they score highly on two dimensions:
A commonly cited definition of marketing is simply "meeting needs profitably".
The implication of selecting target segments is that the business will subsequently allocate more resources to acquire and retain customers in the target segment(s) than it will for other, non-targeted customers. In some cases, the firm may go so far as to turn away customers who are not in its target segment.The doorman at a swanky nightclub, for example, may deny entry to unfashionably dressed individuals because the business has made a strategic decision to target the "high fashion" segment of nightclub patrons.
In conjunction with targeting decisions, marketing managers will identify the desired positioning they want the company, product, or brand to occupy in the target customer's mind. This positioning is often an encapsulation of a key benefit the company's product or service offers that is differentiated and superior to the benefits offered by competitive products. For example, Volvo has traditionally positioned its products in the automobile market in North America in order to be perceived as the leader in "safety", whereas BMW has traditionally positioned its brand to be perceived as the leader in "performance".
Ideally, a firm's positioning can be maintained over a long period of time because the company possesses, or can develop, some form of sustainable competitive advantage. The positioning should also be sufficiently relevant to the target segment such that it will drive the purchasing behavior of target customers. To sum up,the marketing branch of a company is to deal with the selling and popularity of its products among people and its customers,as the central and eventual goal of a company is customer satisfaction and the return of revenue.
If the company has obtained an adequate understanding of the customer base and its own competitive position in the industry, marketing managers are able to make their own key strategic decisions and develop a marketing strategy designed to maximize the revenues and profits of the firm. The selected strategy may aim for any of a variety of specific objectives, including optimizing short-term unit margins, revenue growth, market share, long-term profitability, or other goals.
After the firm's strategic objectives have been identified, the target market selected, and the desired positioning for the company, product or brand has been determined, marketing managers focus on how to best implement the chosen strategy. Traditionally, this has involved implementation planning across the "4 Ps" of : product management, pricing (at what price slot does a producer position a product, e.g. low, medium or high price), place (the place or area where the products are going to be sold, which could be local, regional, countrywide or international) (i.e. sales and distribution channels), and Promotion.
Taken together, the company's implementation choices across the 4 Ps are often described as the marketing mix, meaning the mix of elements the business will employ to "go to market" and execute the marketing strategy. The overall goal for the marketing mix is to consistently deliver a compelling value proposition that reinforces the firm's chosen positioning, builds customer loyalty and brand equity among target customers, and achieves the firm's marketing and financial objectives.
In many cases, marketing management will develop a marketing plan to specify how the company will execute the chosen strategy and achieve the business' objectives. The content of marketing plans varies from firm to firm, but commonly includes:
More broadly, marketing managers work to design and improve the effectiveness of core marketing processes, such as new product development, brand management, marketing communications, and pricing. Marketers may employ the tools of business process reengineering to ensure these processes are properly designed, and use a variety of process management techniques to keep them operating smoothly.
Effective execution may require management of both internal resources and a variety of external vendors and service providers, such as the firm's advertising agency. Marketers may therefore coordinate with the company's Purchasing department on the procurement of these services. Under the area of marketing agency management (i.e. working with external marketing agencies and suppliers) are techniques such as agency performance evaluation, scope of work, incentive compensation, RFx's and storage of agency information in a supplier database.
Marketing management employs a variety of metrics to measure progress against objectives. It is the responsibility of marketing managers to ensure that the execution of marketing programs achieves the desired objectives and does so in a cost-efficient manner.
Marketing management therefore often makes use of various organizational control systems, such as sales forecasts, and sales force and reseller incentive programs, sales force management systems, and customer relationship management tools (CRM). Some software vendors have begun using the term marketing operations management or marketing resource management to describe systems that facilitate an integrated approach for controlling marketing resources. In some cases, these efforts may be linked to various supply chain management systems, such as enterprise resource planning (ERP), material requirements planning (MRP), efficient consumer response (ECR), and inventory management systems.
Globalization has led some firms to market beyond the borders of their home countries, making international marketing a part of those firms' marketing strategy. Marketing managers are often responsible for influencing the level, timing, and composition of customer demand. In part, this is because the role of a marketing manager (or sometimes called managing marketer in small- and medium-sized enterprises) can vary significantly based on a business's size, corporate culture, and industry context. For example, in a small- and medium-sized enterprises, the managing marketer may contribute in both managerial and marketing operations roles for the company brands. In a large consumer products company, the marketing manager may act as the overall general manager of his or her assigned product. To create an effective, cost-efficient marketing management strategy, firms must possess a detailed, objective understanding of their own business and the market in which they operate. In analyzing these issues, the discipline of marketing management often overlaps with the related discipline of strategic planning.
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