Marketing Management: Definition, Functions, Objectives, Duties, and Concepts

Marketing management or what is often called marketing management is a type of management needed for all businesses. This marketing management concerns products or services to be better known by consumers. Therefore, the company must understand the complete discourse regarding marketing management.

Marketing management must be considered by an organization or company because it contributes many things to the smooth process of product marketing.

Marketing management is also tasked with measuring and analyzing the strategic marketing process of a company or organization. Marketing management has a very important role in a company or organization because with marketing management the company can reach the desired target market and get more consumers.

1. Definition of Marketing Management

Marketing management (marketing management) is the analysis of planning, implementation, and control of programs designed to create, build and maintain profitable exchanges with target buyers to achieve organizational goals or company goals.

According to Kottler and Keller (2012) states that marketing management as the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.

Marketing management (marketing management) comes from two words, namely management and marketing. Marketing is the analysis, planning, implementation and control of programs designed to create, build and maintain profitable exchanges with target buyers to achieve company goals.

While management is the process of planning (planning) , organizing (organizing) , actuating (actuating) , directing (directing) , and monitoring (controlling).

Marketing management is an attempt to plan, implement which consists of organizing, directing and supervising or controlling marketing activities within a company in order to achieve company goals efficiently and effectively.

According to Sofyan Assauri (2013) marketing management is an activity of analyzing, planning, implementing, and controlling programs designed to establish, build, and maintain profits from exchanges through target markets in order to achieve company goals in the long term.

Philip (2005) also explains that marketing management is the process of planning and executing, thinking, pricing promotions, and distributing goods and services to create exchanges that meet individual goals within the organization.

Marketing management involves setting marketing goals and objectives, developing marketing plans, managing marketing functions, putting marketing plans into action, and controlling marketing programs.

The existence of marketing management itself is because marketing a brand is an important matter for the company. Therefore, all decisions taken must be planned. You can learn about this in the Marketing Management book below.

2. Marketing Management Function

The function of marketing management includes analyzing activities, namely analysis carried out to find out the market and its marketing environment so that it can be obtained how big the opportunities are to seize the market and how big the threats must be.

Explanation of integrated and mutually supporting marketing functions, among others:

a. Market analysis

Not all companies have a formal marketing and sales department, but every company must have and carry out various important elements contained in marketing and sales activities with the main aim of making new and old customers interested in returning to use the products and facilities offered continuously. continuously.

To find out opportunities and threats as well as consumer needs and desires, there are several things that must be considered in the process of market analysis activities, namely: analysis of opportunities and threats, as well as analysis of consumer behavior.

b. Market segmentation

Market segmentation is the activity of dividing a market into different groups, where each group has almost the same characteristics.

By conducting market segmentation, marketing activities can be carried out in a more targeted manner and resources in the field of marketing can be used more effectively and efficiently.

Market segmentation must meet the requirements including: measurable both the size and breadth as well as the purchasing power of the market segment, accessible so that it can be served effectively, substantial so that it can be profitable if served, and actionable and all programs that has been designed to attract and serve market segmentation can be effective and efficient.

c. Define target market

Setting a target market means assigning an active value to each section and then selecting one or more market segments to serve.

The activity of determining the target market includes: evaluation of market share (section size and growth such as data on customer age, income, gender of each segment), attractive structure in terms of profitability, and objectives and available resources.

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d. Market placement

The new company must be able to identify the position of existing competitors before determining its own placement. Kotler (1992) explains there are two options, namely:

1) Put yourself next to one of the existing competitors and fight for market share. Leaders can do this if they feel the company can make superior products, has a large market, and has more resources.

2) Develop a product that has never been offered on the market today. Before making this decision management must be sure that technically a product can be made quickly, economically a superior product can be made at the planned price level, as well as an adequate number of consumers who like the product.

e. Marketing planning

Marketing activities carried out by a company are important to be coordinated and directed to achieve company goals in general and marketing objectives in particular.

The marketing coordination and direction tool is a marketing plan. Regardless of what type of management style is adopted by a company in planning it must carry out the following four stages:
1) Define the company’s mission
2) Identify the company’s strategic business units, analyze and evaluate existing business portfolios
3) Identify new business arenas that will be entered.

Thus it can be concluded that marketing planning aims to provide a systematic and neat approach for companies by:
1) Balancing and aligning marketing activities that ensure the achievement of goals and objectives.
2) Using ways of doing business in the field of marketing in an incentive and optimal manner.
3) Quick, precise, and regular control over records, ideas or thoughts as well as marketing efforts or activities within the company.

Philip Kotler as one of the figures in marketing management released the book Marketing Management Edition 13 Volume 1 which you can get only at sinaumedia.

3. Purpose of Marketing Management

a. Creating demand or requests

One of the goals of marketing management is to create demand in various ways. Making related ways to find out consumer tastes and consumer preferences for goods or services produced to meet consumer needs.

b. Increase profits

The marketing team is the only team that generates revenue for the company. Sufficient profit must be obtained as a result of the sale of goods or services wished to satisfy. If the company does not generate profits, then the company will not be able to survive. In addition, profit is also necessary for the growth and diversification of the company.

c. Create new customers

Companies are established to sell products or services to customers. Therefore, consumers are the basis of a company’s business. It is consumers who provide income to the company and determine what the company will sell.

Creating new consumers means exploring and identifying customer needs more broadly. If a company wants to advance and stay in business, creating new customers is crucial. So it is necessary to analyze and understand consumer desires.

d. Satisfying customers

Creating new consumers is not enough. Companies must develop and distribute products (goods or services) that meet customer expectations to provide satisfaction. If consumers are not satisfied, then the business will not be able to generate revenue to meet costs and to get a reasonable return on investment.

Satisfied consumers or customers do not mean only buying goods or services according to consumer needs. They will also make recommendations to those closest to them and can make the goods or services being marketed more widely known.

e. Image a good product in the eyes of the public

Building a good product image in society is another marketing management goal. If the marketing team provides quality goods and services to consumers at reasonable prices, it will certainly create a good image for consumers.

In its application, Sinaumed’s can read the book Application of Marketing Management Tools in the Product Development Process (BP) which can help you better understand the relationship between product image and marketing management.

4. Main Duties of Marketing Management

The main task of marketing management is to market the company’s products so as to achieve a long-term profit level for the company, to ensure the survival and development of the company. Marketing management tasks are also inseparable from demand. So, the task of marketing management (marketing management) is not only to seek and develop demand for the company’s products but also includes setting the amount, timing and nature of requests in accordance with company goals.

In general, the number of requests for goods or services can be greater or less or equal to the number of requests expected by a company. There are eight characteristics of demand that give rise to different marketing tasks. The eight requests include:

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a. Negative demand

Negative demand is when all or part of an important segment of the potential market does not want the good or service and in fact it is conceivable that people will avoid paying the price.

b. No demand (no demand)

No demand means a condition in which all or some important segments of the potential market are not or are less interested in certain goods or services.

c. Latent demand (hidden demand)

Latent demand means where many people feel a great need for goods or services that have not been produced until now.

d. Faltering demand

Faltering demand is a situation in which the demand for certain goods or services tends to decrease if not followed by improvement efforts.

e. Irregular demand

Irregular demand is a condition where there is a time pattern of demand marked by seasonal fluctuations.

f. Full demand

Full demand is a situation where the amount and time of request is in accordance with the amount planned by the company. So, all requests can be fulfilled and there are no requests that cannot be fulfilled or there are no offers that are not solicited.

g. Overfull demand (excessive demand)

Overfull demand is a situation where the existing demand for certain goods or services exceeds the level of the company’s willingness to fulfill them.

h. Unwholesome demand

Unwholesome demand is an atmosphere in which a request is felt to be a violation or outside the limits of legislation and is not desirable to be offered or contains elements that are less desirable.

Private Basu also provides a view that the main tasks of marketing management include:

  • Developing concepts aimed at satisfying and serving unfulfilled consumers.
  • Study the needs and wants of consumers.
  • Create a product design.
  • Conduct testing of the validity of the product concept.
  • Develop packaging and branding.
  • Set a price to get a decent return on investment.
  • Manage the course of distribution.
  • Creating effective marketing communications with various media.
  • Pay attention to consumer satisfaction.
  • Evaluate and continuously develop a marketing plan based on results.

The concept of Marketing Management is also developing, where at first it was often used to monopolize the marketing department, now it has become an activity of all departments in a company. You can understand this better in the Marketing Management book by Prof. Dr. Thamrin Abdullah, Dr. Francis Tantri.

5. Marketing Management Concept

a. Production concept

The production concept is the concept that consumers or customers will favor products that are available and affordable and management must strive to improve production and distribution efficiency. This concept is the oldest philosophy used in sales.

This concept still applies to situations where the demand for the product is greater than the supply, and when the cost of the product is higher and productivity improvements are required to reduce it.

b. Product concept

The concept that consumers will favor the best quality products and the most innovative traits means that companies must devote energy to continuous product improvement.

c. Sales concept

The concept that consumers will not buy enough of a company’s products unless the company undertakes a large-scale sales and promotion effort.

This concept is usually applied to goods that consumers may not think of buying, for example: insurance. This industry must be adept at tracking potential customers and selling product benefits to consumers with the aim of selling the goods or services the company makes, not what products consumers need.

d. Marketing concept

This marketing concept believes that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors.
The marketing concept came into effect because sales began to fall, product growth slowed, purchasing patterns changed, competition increased, and selling costs increased.

e. Social marketing concept

The societal marketing concept means the concept that companies must determine market needs, wants and interests and deliver the desired satisfactions more effectively and efficiently than competitors in a way that maintains or improves the welfare of consumers and society.

This concept invites marketers to build social and ethical considerations in their marketing practices. This is to balance and harmonize the three main factors that are important, namely company profits, satisfying consumer desires and public interest.

To better understand the concepts contained in it, Sinaumed’s can study them through the book Basic Marketing Management Concepts of Strategy to develop their insights and knowledge.

6. Marketing Management books

Bibliography :

  • Kotler and Keller. 2009. Marketing Management. Volume I. 13th Edition. Jakarta:
    Erlangga
  • Kotler, Pllip. 2000. Marketing Management. Millennium Edition. Jakarta : PT.
    sinaumedia Group Index.
  • Kotler, Philip. 2005. Marketing Principles Volume I. Jakarta: Erlangga.
  • Kotler, Philip. 2005. Marketing Principles Volume I. Jakarta: Erlangga.