Business Studies Part I
Business Studies Part II

Marketing Management

Marketing management means management of the marketing function. In other words, marketing management refers to planning, organising, directing and control of the activities which facilitate exchange of goods and services between producers and consumers or users of products and services. Thus the focus of marketing management is on achieving desired exchange outcomes with the target markets. Taking a management perspective, the term marketing has been defined as “the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational goals” by American Management Association, similarly Philip Kotler has defined Marketing management as the art and science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer values of management.

Process of Management:

A careful analysis of the definition reveals that the process of management of marketing involves:

  • Choosing a target market, say a manufacturer may choose to make ready-made garments for children up to the age of 5 years.
  • In respect of the target market chosen, the focus of the process of management is on getting, keeping as well as growing the customers. That means the marketer has to create demand for his products so that the target customers purchase the product, keep them satisfied with the firm’s products and also attract more customers to the firm’s products so that the firm can grow.
  • The mechanism for achieving the objective is through creating, developing and communicating superior values for the customers. That means, the primary job of a marketing manager is to create superior values so that the customers are attracted to the products and services and communicate these values to the prospective buyers and persuade them to buy these products.
  • Marketing management involves performance of various functions such as analysing and planning the marketing activities, implementing marketing plans and setting control mechanism. These functions are to be performed in such a way that organisation’s objectives are achieved at the minimum cost.
  • Marketing management generally is related to creation of demand. However, in certain situations, the manager has to restrict the demand. For example, if there is a situation of ‘overfull demand’, i.e., the demand being more than what the company can or want to handle, (like what the situation in our country was before the adoption of policies of liberalisation  and globalisation, in early 90’s, in most consumer products be it automobiles or electronics goods or other durable products.
  • The job of marketing mangers, in these situations would be to find ways to reduce the demand temporarily by say reducing the expenditure on promotion or increasing the prices. Similarly, if the demand is ‘irregular’, such as in case of seasonal products, (say fans, woollen clothes) the marketer’s job is to change the time pattern of demand through such methods as providing short-term incentives, to the buyers.

Thus, the marketing management in not only concerned with creating demand but with managing the demand effectively, as per the situation in the market.

Marketing management facilitates the activities and functions which are involved in the distribution of goods and services.

According to Philip Kotler, “Marketing management is the analysis, planning, implementation and control of programmes designed to bring about desired exchanges with target markets for the purpose of achieving organisational objectives.

It relies heavily on designing the marketing management tools.

Importance of Marketing Management:

  1. Introduction of new products in the market.
  2. Increasing the production of existing products.
  3. Reducing cost of sales and distribution.
  4. Export market.
  5. Development in the means of communication and modes of transportation within and outside the country.
  6. Rise in per capita income and demand for more goods by the consumers.