Marketing Aptitude - Marketing Management and Planning
Category : Banking
Marketing management is a business discipline which focuses on the practical application of marketing techniques and the management of a firms marketing resources and activities. Marketing management employs various tools from economies and competitive strategy to analyse the industry, context in which the firm operates.
- Characteristics of Marketing Management
- Marketing management is consumer oriented.
- Marketing management is a specialised branch of general management.
- It considers consumer satisfaction as a marketing activity.
- It is based on the principle of socio-economic satisfaction.
- It lays emphasis on beneficial results of sale instead of quantity of sale.
- It lays emphasis on integrated marketing.
- Objectives of Marketing Management
- To determine the marketing objectives for which all the functions will be performed.
- Forecasting sales for future, preparation of marketing programmes, formulation of marketing policies and strategies regarding production, etc.
- Organization, for the purpose of marketing management, means the determination of organizational structure of marketing department.
- Helps in taking decisions regarding prices of the product.
- Helps in the production activities of an organization.
Concepts of Marketing Management
There are four main stages of the marketing concepts which are as follows
- Consumer Oriented Concept
Orientation to consumer needs is the main target for the success of marketing activities. More customers know what they need. This is the main reason that while deciding the production targets in industrial business, consumer's desires present itself as a paramount.
- Marketing Oriented Concept
Marketing orientation has three common alternatives such as sales orientation, product orientation and production orientation which can be adopted by a company. With marketing orientation, a business revolves its strategic decisions around the wants and needs of the target market, including potential customers.
- Consumer Satisfaction Concept
According to this concept, the position of consumer is the foremost position in all the business activities. Business can achieve the long-term prosperity by satisfying its customers which induce the customers to repurchase.
Businessmen should keep the following points in mind
(i) Consumer is always correct.
(ii) Consumer is the king of the market.
(iii) Consumer s position is at the top.
(iv) Consumer is a boss.
It seems to be the best marketing concept. It focuses on consumer needs and wants, profits and also the social welfare. This helps in improving the image of the company.
Importance of Marketing Management
- In Indian economy, the significance of the marketing management could be described in the following way
- Procuring Maximum Results with Minimum Efforts In our country, the resources are quite limited. By the minimum efforts, we have to achieve the maximum results. It could be possible only when we understand the significance of marketing.
- Importance for Consumers Consumer can select the product in an effective manner if he is properly aware about the concept of marketing.
- Increase in Living Standards Organization provides new products to the society which helps to increase their living standards through marketing. For this, different ways of better living can be discussed on the basis of advertisements and sales promotion.
- Economic Growth Through marketing management, economic growth can be achieved because when there is less marketing and usage of the product by the consumer, there will be idle stock of manufactured goods and raw-material accumulated with the manufacturers.
Functions of Marketing Manager
- To work with the top management.
- To supervise and coordinate various activities of his department.
- To maintain the existing markets and to discover the new markets for the products.
- To evaluate the product from time to time so that necessary modifications and alterations may be made in the product.
- To study the needs of the market from time to time so that new product may be introduced in the market to attract more consumers.
- To select specific channels of distribution according to the needs and requirements of the enterprise.
- To prepare marketing programme.
- To keep himself in touch with the economic and political environment so that he may take the necessary decisions.
Difference between Marketing Management and Sales Management
It is responsible for a person going to a particular store.
It is the reason that the person buys a product from that store.
It is not the part of sales management.
Sales management is a part of marketing management
Its main purpose is to increase the prosperity of business.
Its main purpose is to sale the product
It works as an Independent concept.
It works under the concept of marketing management.
It has a wide scope
It has a limited scope.
Marketing planning is the process whereby companies reconcile their objectives and opportunities.
"Marketing planning is the work of setting up objectives for marketing activity and of determining and scheduling the steps necessary to achieve such objectives."
—The American Marketing Association
- Elements of Marketing Planning
- Determination of objectives
- Forecasting the future
- Policies Procedures
- Programmes Schedule
- Rules Strategies
- Objectives of Marketing Planning
The objects of marketing planning in an enterprise can be described as follows
- To formulate marketing plans on the basis of sales forecasting.
- To minimize future uncertainties as for as possible.
- To co-ordinate the activities not only of its own department but it helps in co-ordinating the activities of all the departments of the enterprise.
- It helps in controlling the activities of all the departments of the enterprise.
- It makes a difference between the problems of key nature and that of routine nature.
- It helps in checking all the wastages in the enterprise.
- It is helpful in maintaining healthy competition within enterprise.
- Helpful in increasing the efficiency of employees.
- Importance of Marketing Planning
- It prepares planned strategies and programmes or the future so that future uncertainties may be minimized and the objectives of the enterprise may successfully be achieved.
- The objectives of the enterprise are clarified by marketing planning and clearly explained to all the concerned employees of the enterprise.
- It helps in co-ordinating all the managerial activities of the enterprise.
- It increases the organisational efficiency by making decision-making process quick and by defining individual duties, rights and liabilities of all the employees of the enterprise.
- It checks all unnecessary expenses and hence leads to economy in the operations of enterprise.
- It is helpful in controlling functions.
- It stresses upon the achievement of pre-determined objectives of the enterprise through maximum satisfaction to the consumers.
- Process of Marketing Planning
Process of marketing planning includes the following steps
Step 1 Goal Setting
- Corporate objectives
Step 2 Analyzing the Current Situation
- Marketing audit
- SWOT analysis
- Marketing assumptions
Step 3 Creating the Marketing Strategy
- Marketing objectives and strategies
- Forecasts of expected results
- Create alternative plans
Step 4 Allocating Marketing Resources and Monitoring
- Marketing budget
- Detailed action plan
- Market strategies means methods to improve marketing activities. Good marketing strategy envisages good and proper relationship management.
Classification of Marketing Planning
Marketing planning activities can be divided into three parts
It means planning for a period of more than one year. It involves the development of basic objectives and the determination of fundamental policies to guide future efforts of an enterprise. Generally, this type of planning relates to the planning of a new product, product diversification, expansion of product line, etc.
It is the planning of marketing activities for a period of less than one year. This type of planning is the liability to medium level of management. The problems to be dealt by this planning are—adjustment: in the prices of products to face the competition, adjustment in the quantity of production to meet the changes in demand.
It is the planning of activities to be performed in the future. Adhoc planning is not a regular and systematic form of planning and it is the solution to the problems arising in the actual performance of marketing activities.
Target consumers remains at the centre of any marketing process.
Factors Affecting the Marketing Planning
A large number of factors affect the marketing planning. These factors are as follows
Internal factors are those factors that arise in the enterprise itself. These factors include the following
- Size of the company.
- Risk bearing capacity of the enterprise.
- Financial resources of the enterprise.
- Organisational structure of the enterprise.
- Technical knowledge available with the enterprise.
- Channel of distribution.
- National Factors
- These factors include the following
- Population of the country and its regional distribution.
- National income of the country.
- Distribution of national income.
- Sectoral distribution of national income.
- Price trends in the country.
- Industrial policy of the country.
- Trade policy.
- International Factors
- These factors include the following
- International monetary system.
- International stability and peace.
- Scientific and technical developments in the world.
Tasks Performed in Marketing Planning
The major tasks performed in marketing planning are
- Environmental Appraisal
- Analysing the environment and spotting the opportunities and threats.
- Analysing the market and customer.
- Analysing industry and corn-petition.
- Internal Appraisal of unit
- Analysing the strengths and weakness of the unit.
- Analysing the health and status of the different products.
- Analysing the competitive advantages and core competencies of the firm.
- Fixing the Marketing Objective of the Unit
- Assessing the current performance of the unit in the key areas.
- Establishing measurable, clear-cut and explicit goals in each key area.
- Shortlisting the areas in which marketing objectives have to be set.
- Developing the Marketing Strategy
- Selecting the target market.
- Deciding the positioning strategy.
- Developing the marketing mix.
- Developing the Functional Plans of Marketing
- Product plan and production plan formulation.
- Sales forecasting.
- Channel planning.
- Sales promotion planning.
- Advertising planning.
Forecasting is the art of estimating future demand by anticipating what buyers are likely to do under a given set of future conditions. Sales forecasting provides the backbone to marketing. "The company forecast is the expected level of company sales based on a chosen marketing plan and assumed marketing environment".
- Factors of Sales Forecast
- Sales forecasts can be based on three factors
- What customers have done in the past in the market?
- What customers are actually doing in the market?
- What customers say about their intentions to continue buying products in the industry?
- Types of Sales Forecasting
There are two major types of forecasting
- Macro Forecasting
It is concerned with forecasting the market trends in totality. This is about determining the existing level of overall demand and forecasting what will happen to the demand in the future.
- Micro Forecasting
It is concerned with detailed unit sales forecasts. This is about determining a products market share in a particular industry and considering what will happen to that market share in the future.
- Process of Sales Forecasting
- Setting goals for forecasting
- Gathering data
- Analysis of data
- Choosing the best method
- Evaluation of forecasting outcomes
- Functions of Sales Forecasting
- Sales forecasting forms the backbone of marketing.
- It provides numbers regarding the sales.
- It provides vital clues regarding customer's tastes, preferences and needs.
- It helps the firm to handle its marketing planning and marketing strategy formulation.
- It helps the firm to develop its budgets and attain its marketing objectives.
- Market share means percentage share of business of the company as compared to peers.
- A fall in the market share implies competition has increased.
- Market share can be increased by increasing the sales.
- The potential market is the set of consumers who are buying the company's products. It is based on future trading.
- A 'benchmark' means a standard value set for comparison between the competitors.