Marketing management is a composition of two terms ‘marketing’ and ‘management’. Where the term `marketing’ is a set of actions and processes of a company associated with buying and selling of goods or services. ‘Management’ is a function of coordinating the integrated efforts of people towards a common goal by effective utilisation of available resources.
`Marketing management’ is an organisational approach which focuses towards the accomplishment of marketing objectives of the organisation such as achieving customer satisfaction, securing high sales and profit, etc. Therefore, it includes various techniques and processes aimed at fulfilling all the inter-related marketing objectives.
Process of Marketing Management
Following are the steps involved in the process of marketing management
Step 1: Setting Marketing Objectives:
The first step of the marketing management process is setting marketing objectives. While setting objectives, the organisational mission must be considered. The mission helps the marketer to conduct the proper environmental scanning and search for new opportunities.
Step 2: Analysing Marketing Opportunities:
In the next step, different marketing opportunities are analysed in accordance with the strengths and weaknesses of the organisation, which can be internal or external. The availability of further opportunities can be examined on the basis of the project or work assigned. A consistent market information system is needed for the effective analysis of the opportunities. This enables the marketers to have information regarding choices and preferences of target customers, their geographical locations, buying behaviour, social behaviour, etc.
Step 3: Researching and Selecting Target Markets:
After analysing the opportunities, the research and selection of the target market is carried out. For selecting a target market, it is very essential to understand how the attractiveness of a particular market can be measured. There are various techniques which are used to measure the market potential and forecast future demand.
Under the modern marketing concept, the whole market is divided into several small segments. These segments are evaluated to select the target markets, and then different positioning strategies are applied to each market.
Step 4: Designing Marketing Strategies:
This is the most crucial step in the marketing management process. In this, the marketing strategy of an organisation is designed for the target markets. The strategy reflects the overall plan of the organisation for achieving marketing or business objectives. Marketing strategy states the major approaches through which an organisation can achieve its business goals in a target market. It also comprises of basic decisions related to the marketing mix, marketing expenditure and marketing distribution. This step also involves extensive marketing research for the development of the firm-market system. Based on the system, four Ps of the marketing mix, viz., product, price, place, and promotion are determined and applied to the consumers. The organisation should also decide the total expenditure to be used for the marketing mix.
Step 5: Planning Marketing Programmes:
The broad marketing strategies alone are not enough to meet the organisational goals. In order to achieve business goals and implement marketing strategies, the organisation requires effective marketing programmes. These marketing programmes include decisions regarding the product characteristics, packaging, policies related to services, branding, pricing (retail as well as wholesale), credits, discounts and allowances, recruitment, selection and integration of different marketing intermediaries for effective distribution, advertisement, sales promotion, personal selling, direct marketing, etc.
Step 6: Organising, Implementing and Controlling the Marketing Effort:
The concluding step in the marketing management process involves the organisation of resources and implementation and control of the marketing plan. A marketing organisation is designed to apply the marketing plan into action, that is, for the implementation of the marketing plan.
Once the plan is executed, activities concerned with customer feedback and sales forecast are organised. This is done to evaluate the effectiveness of the marketing plan. In the marketing plan, control is a very essential component through which alterations or modifications can be done.
Controlling in marketing is responsible for determining performance standards, analysing actual performance, and minimising the difference between the actual and desired performance. It involves three main elements, i.e., measuring, analysing, and monitoring. The marketing manager compares the actual performance with the standard performance and takes corrective measures if required. In the case of applying corrective measures, the reason for the deviation is identified by conducting market research.