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Marketing management

(Redirected from Marketing Management)

Marketing management is the strategic organizational discipline that focuses on the practical application of marketing orientation, techniques and methods inside enterprises and organizations and on the management of marketing resources and activities.[citation needed][1][2][3] Compare marketology,[4] which Aghazadeh defines in terms of "recognizing, generating and disseminating market insight to ensure better market-related decisions".[5]

Structure

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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.[6]

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 implies market research and marketing research to perform a primary analysis. For this, a variety of techniques are implemented. Some of the most common ones include:

Marketing managers may also design and oversee various environmental scanning and competitive intelligence processes to identify trends and inform the company's marketing analysis.

 
Example of SWOT analysis chart

Brand audit

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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:

  1. How well the business's current brand strategy is working,
  2. What the company's established resource strengths and weaknesses are
  3. What its external opportunities and threats are
  4. How competitive the business's prices and costs are
  5. How strong the business's competitive position in comparison to its competitors is
  6. What strategic issues are facing the business

When a business conducts a brand audit, the goal is to uncover the business's 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 the brand position and competitive capabilities within the industry. Once a brand is audited, any business that ends up with 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's share of the market is increasing, decreasing, or stable. It determines if the company's margin of profit is improving, or decreasing, and how much it is in comparison to the profit margin of established competitors. Additionally, a brand audit investigates trends in a business's net profits, the return on existing investments, and its established economic value. It determines whether the business's financial strength and credit rating are improving or worsening. This kind of audit also assesses a business's image and reputation with its customers. Furthermore, a brand audit seeks to determine whether 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 performance.

A brand audit usually focuses on a business's strengths and resource capabilities because these are the elements that enhance its competitiveness. A business's 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's 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's position and future performance.

Marketing strategy

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Main article: Marketing strategy

Two customer segments are often selected as targets because they score highly on two dimensions:

  1. The segment is attractive to serve because it is large, growing, makes frequent purchases, is not price sensitive (i.e. is willing to pay high prices), or other factors; and
  2. The company has the resources and capabilities to compete for the segment's business, can meet their needs better than the competition, and can do so profitably.[7]

A commonly cited definition of marketing is simply "meeting needs profitably".[8]

The implication of selecting target segments is that the business will subsequently allocate more resources to acquire and retain customers in the target segments 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.[9] 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.[10] The positioning should also be sufficiently relevant to the target segment such that it will drive the purchasing behavior of target customers.[9] 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.

Implementation planning

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Main article: Marketing plan
 
The Marketing Metrics Continuum provides a framework for how to categorize metrics from the tactical to strategic.

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": 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 P's 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's objectives. The content of marketing plans varies for each firm, but commonly includes:

  • An executive summary
  • Situation analysis to summarize facts and insights gained from market research and marketing analysis
  • The company's mission statement or long-term strategic vision
  • A statement of the company's key objectives often subdivided into marketing objectives and financial objectives
  • The marketing strategy the business has chosen, specifying the target segments to be pursued and the competitive positioning to be achieved
  • Implementation choices for each element of the marketing mix (the 4 Ps)

Project, process, and vendor management

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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 re-engineering 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, ERFx's and storage of agency information in a supplier database.

Reporting, measurement, feedback and control systems

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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 customer data platform 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.

International marketing management

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Globalization has led some firms to market beyond the borders of their home countries, making international marketing a part of those firms' marketing strategy.[11] 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 to 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.[12] 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.[7] In analyzing these issues, the discipline of marketing management often overlaps with the related discipline of strategic planning.

See also

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References

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  1. ^ Compare: D.David Winster Praveenraj; B. Nandini; Bushra Tasleem (2023). "Marketing Management". Marketing Management. Bangalore: Archers & Elevators Publishing House. p. 4. ISBN 9789394958241. Retrieved 26 July 2024. Marketing management is defined as the process of overseeing and planning new product development, advertising, promotions and sales.
  2. ^ Compare: Baker, Michael John (16 September 2017). "Marketing and corporate strategy". Marketing Strategy and Management (5, revised ed.). London: Palgrave. p. 52. ISBN 9781137342133. Retrieved 26 July 2024. [Philip] Kotler originally defined marketing management as 'the analysis, planning, implementation, and control of programs designed to bring about desired exchanges with target audiences for the purpose of personal or mutual gain.'
  3. ^ Compare: Botter, Ferna Maria Patricia (2010). "5.6: Maatschappelijke ondernemingen en marketing". Maatschappelijke ondernemingen: Naar een andere benadering van maatschappelijk ondernemen (in Dutch). Delft: Eburon Uitgeverij B.V. p. 167. ISBN 9789059724556. Retrieved 26 July 2024. Zo luidt de definitie van marketing management van de American Marketing Association uit 1985: 'Marketing (management) is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and services to create exchanges that satisfy individual and organizational objectives.'
  4. ^ Hollander, Stanley C (15 October 2011) [1980]. "Let us contemplate our navels: the need for a sociology of marketers and marketologists". In Lamb, Charles W.; Dunne, Patrick M. (eds.). Theoretical Developments in Marketing (reprint ed.). Chicago: Marketing Classics Press. p. 55. ISBN 9781613112342. Retrieved 26 July 2024. Marketology (and that ungainly term will help distinguish between study and practice) has and can draw substantially from sociology, anthropology and social psychology.
  5. ^ Aghazadeh, Hashem (29 April 2016). "Sphere of Marketology: Spectrum, Scope, Nature, Stakeholders, Features, and Functions". Principles of Marketology. Vol. 1: Theory (reprint ed.). Basingstoke, Hampshire: Palgrave Macmillan. p. 94. doi:10.1057/9781137379320_6. ISBN 9781137379320. Retrieved 26 July 2024. The core concept of marketology involves 'recognizing, generating and disseminating market insight to ensure better market-related decisions for providing superior value to key stakeholders' [...].
  6. ^ Porter, Michael (1998). Competitive Strategy (revised ed.). The Free Press. ISBN 0-684-84148-7.
  7. ^ a b Clancy, Kevin J.; Peter C. Kriegafsd (2000). Counter intuitive Marketing. The Free Press. ISBN 0-684-85555-0.
  8. ^ Kotler, Philip.; Kevin Lane Keller (2006). Marketing Management, 12th ed. Pearson Prentice Hall. ISBN 0-13-145757-8.
  9. ^ a b Ries, Al; Jack Trout (2000). Positioning: The Battle for Your Mind (20th-anniversary ed.). McGraw-Hill. ISBN 0-07-135916-8.
  10. ^ Porter, Michael (1998). Competitive Advantage (revised ed.). The Free Press. ISBN 0-684-84146-0.
  11. ^ Joshi, Rakesh Mohan, (2005) International Marketing, Oxford University Press, New Delhi and New York ISBN 0-19-567123-6
  12. ^ Kotler, P. and Keller, K.L. Marketing Management, 12th ed., Pearson, 2006, ISBN 0-13-145757-8

Further reading

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