Marketing Management

Marketing Management: The analysis, planning, implementation, and control of programs designed to create, build, and maintain beneficial exchanges with target buyers for the purpose of achieving organisational objectives.

Marketing management seeks to affect the level, timing, and nature of demand in a way that helps the organisation achieve its objectives. In other word marketing management is demand management. Demarketing is one of the tool of marketing management.

Demarketing: Marketing to reduce demand temporarily. The aim is not to destroy demand, but only to reduce or shift it.

e.g. Advertising to reduce the use of electricity or gas.

Marketing Management Philosophies:

there are five alternative concepts under which organisations conduct their marketing activities. They are-

Production, Product, Selling, Marketing and societal marketing concepts.

Production Concept:

The philosophy that consumers will favour products that are available and highly affordable and that management should therefore focus on improving production and distribution efficiency.

e.g. Henry Ford's whole philosophy was to perfect the production of the Model T so that its cost could be reduced and more people could afford it.

Product Concept:

The idea that consumers will favour products that offer the most quality, performance, and features and that the organisation should therefore devote its energy to making continuous product improvements. A detailed version of the new-product idea stated in meaningful consumer terms.

 

Figure: Selling and Marketing concepts contrasted

Selling Concept:

The idea that consumers will not buy enough of the organisation's products unless the organisation undertakes a large-scale selling and promotion effort.

Most firms practice the selling concept when they have overcapacity. Their aim is to sell what they make rather than make what the market wants.

Marketing Concept:

The marketing management philosophy that holds that achieving organisational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do.

Societal Marketing Concept:

The idea that the organisation should determine the needs, wants and interests of target markets and deliver the desired satisfactions more effectively and efficiently than do competitors in a way that maintains or improves the consumer's and society's well being.

Figure: Societal Marketing Concept