Lesson 1, Topic 1
In Progress

Marketing Management

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Marketing management is significant section of management process which envelops the distribution of marketing activities. According to theorist, Rustom S. Davar, the term ‘marketing management’ means the discovering of the consumers’ needs, converting them into the products or services and the activity of transforming the product or service to the ultimate consumer, so that needs of specific categories or groups of the customers could be so satisfied that by the most favourable utilization of the resources, they could derive the maximum benefits. Bulk of literature has demonstrated that marketing management is the core procedure to allocate the resources of the organization toward marketing activities.

The main role of a marketing manager is to direct expenditures of marketing funds. Cundiff and Still stated that the marketing management is that branch of the general management which is associated with the direction of activities in order to achieve objects concerned with distribution. It can be established that the marketing management is that managerial or management function which performs the marketing activities. Marketing management is the art and science of selecting target markets and getting, keeping, and growing customers through creating, delivering and communicating superior customer value.

Kotler has constructed a systematic framework of marketing management. After five decades of development and experience from practices with Fortune 500, we generally classify modern marketing management into two steps. Step 1: Analysis and strategy, namely the stage of “3C+STP”.

“3C” is the basis of strategic analysis: Corporation, Customer and Competition. Corporations should utilize their comparative advantage to the maximum, to better meet customers’ needs and have diversified com- petition with their rivals. A good strategy must deal with the relations among corporations, customers and competitors and manage their dynamics. Only corporations who can handle all of these factors have the chance to win the battle (Figure 1.3.).

STP refers to the three elements of marketing strategy. In modern marketing strategy theory, Market Segmentation, Market Targeting and Market Positioning constitute the three essential factors of marketing strategy, which is called STP marketing

Market segmentation refers to the process in which marketing people divide the market of a product through market investigation into several segmented ones based on consumption groups according to their different demands, desires, purchasing behaviours and habits. Every consumption group is a segmented market in which customers require similar demands. Target market is a subset of the total market for a product or service.

Market positioning is chosen according to the competitive landscape of similar products on the market and the importance attached by customers to certain features of a product. The strategy aims to create strong and unique images of their products and deliver this information to customers for recognition. The essence is to differentiate the company from other players, which makes customers identify such difference and choose the company that gives preference to their views.

We call Step 2 the Marketing Theory of the 4Ps (Marketing 4Ps) or the process of creating, capturing, communicating and delivering value. To be more specific, it includes product strategy, what products to develop and how, how to integrate the product line and how to make “viral” products in the digital era to ignite the market. Price strategy is also

part of the 4Ps, which consists of price policy and how to adjust price in response to market dynamics. Third, promotion strategy refers to the portfolio of communication goals, channel and media and how to build brand image, awareness, loyalty and assets. Last one is the placement strategy, including design, plan and management of channels as well as the corresponding sales strategies.

“3C+STP+4P” is the framework of the marketing management, an achievement over five decades of efforts and practices, made by Kotler and his partner corporations. Although 4C or 4V was proposed, they are just observations made from another angle and are not an upgradation of the traditional framework of the marketing strategy and management.

As technology, client and data become integrated, the main features of the digital marketing strategy that we have discussed earlier are connection, turning consumers into bits, data talking, engagement and dynamic improvement. These five factors can be used to see whether marketing strategies are digitized or not. Marketing, technology and data are over- lapped; when these elements are taken account of and when “STP+4P” are upgraded in practice, the following challenges show up (Figure 1.4.)

· how to move from rigid planning to agile adaptation;

· how to speed up strategic speed and operational speed;

· how to transform from a one-way, low-frequency release of a business

· to a continuously evolving user experience;

· how to interact more directly with the audience;

· how to embrace trials and failures;

· how to avoid increasing complexity;

· how to integrate deeply with the organization;

· how to drive growth driven by innovation;

· how to make a centralized system more open and transparent.

Next, we return to the framework of the marketing management to see how each module has been upgraded in the digital era. As CEOs, CMOs, senior executives or consultants, we can see that the upgrading is sought as much in thinking patterns and methodologies as in technical tools and big data.

In the past decade, marketing has undergone tremendous changes and we found an inclusive concept to redefine marketing services in the digital era, the “new normal of marketing”. Some ideas (like market segmentation, brand, consumer behaviour, sales process) remain alive, but they have been fundamentally changed.

The following are the six core components of marketing, essential to be redefined in the digital age, in which, each consumer’s behaviour is responded to instantly (for example, to read online posts, or to ask friends on Facebook and a trustworthy local car dealer about the car before buying). Generally, these constitute the basis for a “New normal of marketing in the digital age”.

(1) Upgrading marketing research in the digital age

(2) Upgrading the marketing strategy STP in the digital age

(3) Upgrade of product strategy in the digital age

(4) Upgrade of price and channel strategy in the digital age

(5) Upgrade of brand strategy in the digital age

(6) Upgrade of customer service strategy in the digital age

Marketing Management Tasks

A marketing manager should perform several tasks including the following;

· Conduct marketing research to generate information on consumers and products. In the era of big data, the access to low-cost research and intelligent technology for information processing makes quantitative research with big samples affordable and makes the attitudes of consumers known by information.

· Study competitors’ products and market trends. Do market research

· Monitor and estimate future demand for products.

· Develop new products and services through marketing research, customer feedback and other sources of information.

· Identify and implement promotion strategies to attract customers.

· Prepare marketing plans, budgets and schedules.

· Decide on price and price offers to customers.

· Monitor customer satisfaction over time.

Functions of marketing managers

The marketing manager’s job is to develop effective marketing strategies that give the company a strong competitive advantage in its target market. This involves 4 key functions;

1. Marketing analysis involves examining the company’s markets and marketing environment to find attractive opportunities.

2. Marketing planning involves setting marketing objectives and deciding on the marketing strategies to achieve the objectives.

3. Implementation is putting the plans into action. It involves day-to-day activities that translate the plan to work.

4. Marketing control is essential because surprises may occur during implementation. Control is the process of measuring and evaluating the results of marketing strategies and taking corrective action to ensure that objectives are attained