Marketing Management Introduction
Author: Exforsys Inc. Published on: 5th Nov 2009
Marketing management is a broad scope of the study of marketing focusing on the practical application of the techniques and marketing activities of a certain company or business. This business discipline encompasses marketing planning and strategy, orientations, and processes needed in attaining company goals by providing value to clients. Since it has a wide coverage involving all factors required to satisfy customers, marketing management must be all-pervasive and part of every employee’s scope of work, from the subordinates to those in the higher management.
Marketing Research and Analysis
A business firm must be able to conduct a marketing research and create an analysis of the market as these processes help in the understanding of business goals and the way the market operates. Structurally, marketing analysis is conducted with focus on the customers or potential market, the organization or the company, and the competitor.
In customer analysis, a very important aspect is developing market segmentation where various customers are categorized into different classifications. Marketing managers must be able to profile each market segment and classify them according to variables such as demographics, behavior, needs, and other factors to be considered in grouping customers. When the customers and potential market are properly segmented, it is easy to fulfill and satisfy their needs based on the factors considered for each classification.
The second aspect is to make an internal marketing analysis within an organizational structure. A business or company should be able to understand its core competencies and its capacity to compete with other businesses. This means putting into great consideration company resources and manpower, cost position in comparison to other organizations, and profitability of the company. Company analysis is figuring out how the business can thrive in a competitive market and the industry it functions.
Apart from developing detailed profiles on different market segments, competitors should also be studied in terms of strengths and weaknesses. A business that knows the moves and understands the trend of its competitor is able to get into the main competition and is not left behind. So, marketing managers must know how to analyze other businesses in the industry they operate in, considering factors such as source of profit, resources, cost structure, and product comparison among others.
In marketing management, research is very crucial in the process of creating market analysis. With marketing research, a company is able to gather the data necessary for accurate market analysis. There are two primary methods in conducting a marketing research. The first technique is called qualitative marketing research and an example for this is focused-group study. The other one is called quantitative marketing research which may be conducted through statistical surveys.
In the field of marketing, once a business is finally able to adequately profile its customers and competitors, along with its competitiveness in a particular industry, marketing managers can design marketing strategies that are important in capitalizing on company profits and resources. Important strategic decisions in marketing are grounded on specific objectives such as that of maximizing revenue, market share, and level of profitability.
In attaining the marketing objectives, a company must determine the specific market segments targeted for the particular business. With a specific selection of target customer segments, company resources are maximized instead of being put to waste and revenue increases subsequently. Additionally, companies are also able brand their business with a key benefit that distinguishes the company from the rest of its competitors.
A company that aims to excel in business must allocate time in developing and maintaining good marketing orientation. A business with market orientation puts utmost importance and focus to the customers. Marketing managers perform this in a structural process with the help of different departments within the organization. The marketing department can work hand in hand and coordinate with research and development team, engineering, operations, manufacturing, sales, and other departmental areas to materialize marketing schemes. Simply put, intra-departmental efforts and interaction help the entire company push its marketing plans.
Before marketing programs and activities are even implemented and performed to the target markets, these plans should be workable within the organization. Marketing plans must be effectively fulfilling internally so that the company is confident enough that it will work and become efficient when these programs are applied to the identified market segments.
Importance of Marketing
Author: Exforsys Inc. Published on: 6th Nov 2009 | Last Updated on: 4th Jan 2011
Marketing is a very important aspect in business since it contributes greatly to the success of the organization. Production and distribution depend largely on marketing. Many people think that sales and marketing are basically the same. These two concepts are different in many aspects. Marketing covers advertising, promotions, public relations, and sales. It is the process of introducing and promoting the product or service into the market and encourages sales from the buying public. Sales refer to the act of buying or the actual transaction of customers purchasing the product or service.
Since the goal of marketing is to make the product or service widely known and recognized to the market, marketers must be creative in their marketing activities. In this competitive nature of many businesses, getting the product noticed is not that easy.
Strategically, the business must be centered on the customers more than the products. Although good and quality products are also essential, the buying public still has their personal preferences. If you target more of their needs, they will come back again and again and even bring along recruits. If you push more on the product and disregard their wants and the benefits they can get, you will lose your customers in no time. The sad thing is that getting them back is the hardest part.
Marketing Promotes Product Awareness to the Public
It has already been mentioned in the previous paragraph that getting the product or service recognized by the market is the primary goal of marketing. No business possibly ever thought of just letting the people find out about the business themselves, unless you have already established a reputation in the industry. But if you are a start-out company, the only means to be made known is to advertise and promote. Your business may be spending on the advertising and promotional programs but the important thing is that product and company information is disseminated to the buying public.
Various types of marketing approaches can be utilized by an organization. All forms of marketing promote product awareness to the market at large. Offline and online marketing make it possible for the people to be educated with the various products and services that they can take advantage of.
A company must invest in marketing so as not to miss the opportunity of being discovered. If expense is to be considered, there are cost-effective marketing techniques a company can embark on such as pay-per-click ads and blogging.
Marketing Helps Boost Product Sales
Apart from public awareness about a company’s products and services, marketing helps boost sales and revenue growth. Whatever your business is selling, it will generate sales once the public learns about your product through TV advertisements, radio commercials, newspaper ads, online ads, and other forms of marketing. The more people hear and see more of your advertisements, the more they will be interested to buy.
If your company aims to increase the sales percentage and double the production, the marketing department must be able to come up with effective and strategic marketing plans.
Marketing Builds Company Reputation
In order to conquer the general market, marketers aim to create a brand name recognition or product recall. This is a technique for the consumers to easily associate the brand name with the images, logo, or caption that they hear and see in the advertisements.
For example, McDonalds is known for its arch design which attracts people and identifies the image as McDonalds. For some companies, building a reputation to the public may take time but there are those who easily attract the people. With an established name in the industry, a business continues to grow and expand because more and more customers will purchase the products or take advantage of the services from a reputable company.
Marketing plays a very essential role in the success of a company. It educates people on the latest market trends, helps boost a company’s sales and profit, and develops company reputation. But marketers must be creative and wise enough to promote their products with the proper marketing tactics. Although marketing is important, if it is not conducted and researched well, the company might just be wasting on expenses and time on a failed marketing approach.
Types of Marketing
Author: Exforsys Inc. Published on: 7th Nov 2009
The concept of marketing encompasses a wide coverage and may even be associated with sales. In fact, sales and marketing are two different concepts although both are closely coordinated. Marketing is the presentation of the products and services and making them available to the customers with the goal of generating profits.
Sales, on the other hand, is the output of marketing implementations. A business produces good product sales out of effective marketing programs while poorly planned marketing plans end up in low sales generation.
Focusing more on the concept of marketing, a business organization must invest in intensive marketing activities, what with the stiff competition that exists in almost every kind of industry. Marketing introduces your products and services to your potential customers and target market. It is an important factor in the success of a business.
Marketing is otherwise known as advertisement of the products and services that your company can offer to the market. So, the old maxim that no advertising is the worst kind of advertising remains to be true especially at this time when modern marketing methods have been introduced.
Marketing can be conducted in various types and techniques. A company can invest in any marketing technique that works best and is effective to the customers. But in this article, let us mention three proven types of marketing that most companies have been using in their product and services campaigns.
The advent of modern marketing has been very helpful for most business, but traditional marketing is still as effective and powerful as it used to be. Not to be overlooked in this age of computers and internet technology, offline marketing is still widely used by many businesses.
Tri-media or advertising through print ads, television, and radio have proven to be effective means of advertising and increasing product awareness even until now. Newspapers continue to be used actively and widely circulated by many print media organizations where businesses occupy portions and spaces in the Classified Ads to introduce their products and services.
However, companies reap more benefits if online and offline marketing methods are combined. A good example is the use of direct mail in order to lead customers to the company website. In fact, a company can save a lot with proper combination of marketing methods since offline marketing can be costly.
Online marketing is equally powerful and effective as offline marketing. In fact, companies save a lot on their marketing campaigns which are done through the internet. Small-scale businesses can benefit greatly from online advertising if marketing budget is an issue.
Apart from the savings a company can get, it can also advertise its products alongside large-scale companies. Affiliate marketing is a common type of online marketing where a company ties up with an affiliate or an online advertiser that will take care of advertising the company’s products and services to thousands of online users. Another example is online video campaign with a production cost that is a lot lesser than television advertising.
One particular advantage of online marketing over traditional forms of advertising is that it can easily reach a huge number of individuals in a short span of time. Plus, the advertisement lasts longer and is unlimited.
Word of Mouth Advertisement
Word-of-mouth marketing is probably the best form of advertisement a company can ever invest in. Not a single penny is spent by the company with this kind of advertising; only excellent customer satisfaction is needed to make this campaign effective. Always keep a proactive approach in dealing with customers and go the extra mile. Building good relationships with customers keeps them in the business. The good news is they will tell their friends and people they know about your company and the kind of customer service you have. With an effortless process, your customers gradually increase in number which in turn increases company profit.
In business, companies must understand that everything is a risk. Even the cost of investing in marketing campaigns is a risk since it is not a guarantee that the company will succeed. But a company that will not make the move to be known to the public will also run the risk of losing the business eventually because of lack of public awareness on the products and services. Any type of marketing can be effective as long as a proper marketing strategy is designed.
Author: Exforsys Inc. Published on: 10th Nov 2009
Marketing orientation is defined as the implementation or completion of a marketing concept that essentially caters to the customers. The term is otherwise known as marketing concept or consumer focus.
With marketing orientation, a business revolves its strategic decisions around the wants and needs of the target market, including potential customers. A company that is marketing-orientated has the commitment to valuing customers and the customers’ needs. In fact, it can even contribute to the transformation of a company’s business culture.
This marketing concept involves three essential steps in being customer-focused. First, the wants and needs of the customers are researched and identified. Then, the research outputs are studied by the marketers and new products are created based on the consumer needs. Finally, customer satisfaction is aimed after public awareness and introduction of the product is made.
A marketing-orientated business is characterized by various attributes. The company makes good and extensive use of marketing research, develops new and broad products, highlights product value and benefits, uses product innovation methods, and designs supplementary services or customer benefits such as delivery, installation, warranty, and credit availability. All these are geared toward customer advantage.
Marketing orientation has three common alternatives which can be adopted by a company and these are sales orientation, product orientation, and production orientation.
As the term clearly implies, a business organization that makes use of product orientation primarily focuses on product quality. A company believes that if the products offered in the market are of good quality and high standard, customers are sure to buy and take advantage of it. The production of these high quality products are either a response to the needs of the customers or by pure innovation.
A good example would be mobile phone companies. Let us take Apple as an example of a company that always makes sure their phones have a competitive edge over the rest of the mobile phone manufacturers. They create phones with features that attract the target market. So, in the field of technology, Apple may be considered a technical leader.
Companies that employ product orientation invest on product innovation as a way to attract the market. But, in order to keep the competitiveness in a certain industry, a company should always highly consider the recent changes and developments in technology and customer preferences. Otherwise, it may lose its ground to other competing businesses.
Sales-orientated organizations are targeted not on the customer needs and product quality but the selling and promotion of the products to the market. Typically, this marketing concept includes selling the company’s existing and current products along with the use of promotional methods in order to gain a maximized profit. Businesses that seem to have a hard time selling their available product or services are more aggressive in pushing sales, pricing, and distribution.
If the company’s product stocks have barely moved and remain stagnant on the store shelves, for example, the company will utilize sales orientation to push the sales of these stocks without much consideration for customer tastes and preferences.
As such, a sales-orientated business does not place a high priority on production but may need to employ product orientation by innovating existing products to suit to changing customer preferences.
This alternative is different from product orientation in a way that product-orientated businesses are concerned more on the creation and manufacturing of as many product items as possible. A company that focuses more on generating high volume of its products is aiming to maximize revenue growth and profitability.
With product orientation, product output has more importance than the customer needs. A business may focus on this type of orientation if it is more than capable to cater to a large market without having to risk on the production.
The law of economics is highly relevant and applicable to this orientation. If the demand is high, the company may increase the supply of the products as a way to generate more profits.
A significant increase in profit is usually observed if the high demand for a product or service is coupled with minimal changes in customer preferences. Only when a company is confident that selling and promotion is not an issue can they focus on production orientation.
Read Next: Market Segmentation
Author: Exforsys Inc. Published on: 8th Nov 2009 | Last Updated on: 9th Nov 2009
A successful business organization takes competition seriously by being aggressive in their marketing campaigns. But a careful company studies the market trend first and understands the movement in the business world before investing on marketing programs which can be costly and risky.
One of the ways in studying the market is through a marketing research. This process has to be given high consideration since the outputs and results will help the company figure out the suitable marketing campaigns for the targeted customers.
Marketing Research Explained
Market research, also referred to as marketing research, is a vital aspect in the concept of marketing management. It refers to the gathering or collection of data that will serve to be useful to a company or business. The data gathered may be about customer profiles or the industry competitors. Market research is commonly confused with marketing research. The former focuses on the markets while marketing research pertains to the marketing processes. But in the long run, both terms have been widely and generally accepted with a common perception.
Marketing research is performed by the availability of both primary and secondary data. Primary research is conducted by the company itself so data is collected by the company. An example for this is a survey. On the other hand, secondary research utilizes data that is already gathered and collected like that of the book of statistics. This method of data gathering is less costly but the primary research is more advantageous as it caters directly to the needs of the company.
There are two major methods in data collection: qualitative and quantitative research. Qualitative research is targeted at determining the reasons people buy a product or use the service and it is also geared at assessing product value. It elicits more of people’s ideas about a product or service. Focus groups or group discussions are primary means of conducting qualitative research. Quantitative research aims more at collecting numerical data and a very common way of doing this is through surveys.
Characteristics of Marketing Research
Every company that conducts marketing research must know the features of a good marketing research. First, it should have a systematic approach. Any research or study done randomly will not yield productive results. A methodological process must be observed when performing procedures. Apart from that, advance planning and proper documentation are important.
Next, a marketing research must be objective and ideal. The results generated must be accurate as much as possible and the process of doing the research must be impartial. A research output must be conducted on neutral grounds and free from any bias and personal considerations. This also stresses the importance of ethics in marketing.
Thirdly, marketing research, as the term alone implies, entails identification, data collection, data analysis, and distribution or awareness. Every phase is equally important as the other during the entire marketing process. When a business is able to identify a market opportunity or probably a marketing concern, information is needed to study it and conduct thorough investigation. Once findings are inferred, these should be presented to the marketing management for further action.
Importance of Marketing Research
For anything that is not known and is yet to be understood, research is an effective means of finding things out through the information gathered. In marketing, research is a very crucial component in marketing management decisions.
For example, when the company finds out that the target market segments have new or additional preference after conducting marketing research, this realization paves way for creation of new product lines. This way, the management decision on marketing plans is more effective and less risky.
Marketing research is in fact the basis of all marketing activities and functions. All important marketing decisions are grounded on good and reliable research in order to achieve and maintain a competitive position in the industry. Because relevant and accurate information are presented about the customers and other variables from a research, uncertainties and improbabilities are removed in inferring marketing decisions.
From a good and accurate marketing research, the management can move on to designing an effective marketing plan for the business. Research must be ongoing in order to update the business with changes and modifications in the market trend and customer preferences, including changes in competitor’s marketing activities.