Definisi Of Marketing ManagementMarketing management is what guides a company's marketing plan through the use of accurate market knowledge, which is usually obtained through research and surveys, in a systematic approach. Knowing the company's current market, setting realistic goals and targets, developing new market penetration strategies and implementing effective marketing plans in the budget are all part of marketing management. In short, marketing management is a business component that makes and develops an institution's marketing strategy.
Today, most companies have adopted various marketing concepts, but this is not always the case. Let's understand the main marketing concepts.
Marketing Management ConceptsThe main concepts of marketing management are three namely: The production concept, Sales concept, Marketing concept. let's look at the explanation of each of these concepts
Production conceptAccording to the concept of production, companies must focus on goods that can be produced most efficiently and also focus on creating a supply of cheap goods that creates demand for products.
The key questions that must be asked by the company before producing an item are:
Can we produce goods?
Can it be produced enough?
This concept worked well during the 1920s because the goods produced were mostly staples and there was a relatively high level of demand that was not met. Almost everything that can be produced is sold easily by the sales team whose job is to complete the transaction at a price determined by the cost of production. Overall, this concept was valid until the late 1920s.
Sales conceptAccording to this concept, the company will not only produce goods but will also try to convince customers to buy them through advertisements and personal sales. Before producing a product, the key questions are:
Can we sell the goods?
Can we count enough for that?
This concept pays little attention to whether the item is really needed. The goal is just to beat the competition with a little focus on customer satisfaction. Marketing is an operation that is carried out after the product is developed and produced and many people come to associate marketing with hard sales.
Marketing conceptThe concept of marketing relies on marketing studies to determine market segments, their size, and their requirements. To meet these requirements, the marketing team makes decisions about parameters that can be controlled by the marketing mix.
This concept was introduced after World War II because customers can choose and only buy goods that precisely meet their changing needs and these needs are not immediately clear. The key questions are:
What do customers really want?
Can we fix it while they still want it?
How can we make customers satisfied?
In response to this smart customer, the company began to adopt the marketing concept, which includes:
Focus on customer needs before developing a product
Align all of the company's operations to focus on those needs
Realize profits by successfully satisfying customer needs in the long run
When companies began to adopt this concept, they actually set up separate marketing departments whose purpose was to meet customer needs. For the most part, this department is a sales department with expanded responsibilities. While this widening sales department structure can be found in several companies today, many of them have organized themselves into marketing organizations that have a customer focus worldwide.
Elements of Marketing ManagementEvery role in our business world today requires us to know and apply at least some marketing elements in it. This is no longer about using marketing and sales interchangeably as a term, but setting a clear context for what marketing actually involves. There are many marketing courses in India that help one to find out more about marketing management, its concepts and applications. Of course, marketing analytics work wonderfully to improve your marketing analytic skills. This knowledge is very valuable in any organization or role in which you work.
Let's look at the main elements of marketing management.
Product or ServiceIt's about the features, strengths, and core values that the product or service has and feels. Marketing ensures that they are shared with the target customers in the best way.
PriceThe price point at which a product is sold is a marketing discussion because it not only needs to capture the costs incurred but also must reflect the position of the brand itself.
The placeThe place or channel where the product is sold is very important. We must ensure that it is distributed through places that are accessible to potential buyers.
PromotionBrand personas are determined by promotion. It is targeted to increase brand recognition and sales. Advertising, sales promotion, and public relations are part of this element.
PersonThis includes all people who are related to the organization in some form or role, that is, the Board or management, employees, customers, vendors, and so on. They determine the culture and goals of the business, and whether the organization will grow to the next level or not.
ProcessThe actual system and operational processes of the organization are the core of the way the final product comes out to consumers. A great process will ensure that costs are minimized. Keeping operational excellence in mind and designing processes are important. That will also result in profit maximization.
Physical ProofPhysical presence or evidence has a big role to play especially in the service industry. This helps customers connect at different levels with the brand and also reflects how the organization and its products are felt.
That's the core element that together forms marketing management. They are equally important from an organizational perspective and there are long-term implications from each of them. Organizations need to work on their marketing mix and strategies with this in mind.
Such is the explanation of the definition of marketing management, its concepts and components as reference readings related to marketing management.