Philosophies of Marketing Management
The modern marketing management is the organizational discipline which emphasis on the practical application of marketing orientation, techniques and methods inside any business enterprise. The marketing manager is responsible for scientific planning, organizing, directing, motivating, coordinating and controlling the activities related to the marketing of goods and services to satisfy the needs and wants of consumer (or customer). According to Philip Kotler, marketing management is the art and science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer value.
To carry out marketing activities of business enterprise the following philosophies of marketing management can be studied as follows:
It is one of the oldest concepts of business that rely on the philosophy that supply creates its own demand. In it, market managers assume that consumers (or customers) will prefer those products which are widely available at an affordable cost. Hence, they focus on high productivity, low costs and mass distribution. This concept is beneficial in developing countries like India, China, etc. where consumers are more interested in obtaining the product than its features.
This concept stated that consumers (or customers) will favor those products which offer superior quality, performance and innovative features. The major drawback of this concept is that a new or improved product may or may not be successful unless it is priced, distributed, advertised and sold properly. For example, companies’ viz. electronics, mobile handsets, etc. rely on a philosophy that a good product creates its own market and does not require heavy marketing expenditure, which might be profitable or not.
The philosophy of this concept is that customers will buy products only if large-scale promotion and selling efforts are carried out by the company. This concept is applicable for companies having over capacity of goods and services in which their goal is to sell what they produce than what the customer really wants.
The marketing concept is based on the customer-centered, sense-and-respond philosophy. Here, marketing manager focuses on the need and wants of the customer and deliver better satisfaction than its competitors.
Societal Marketing concept
This concept focuses not only on the customer satisfaction but also gives importance to consumer welfare/societal welfare. Under this concept, marketing managers always analyze the needs, wants and interests of target markets and deliver superior value to customers more effectively and efficiently than competitors which results in the overall welfare of customers and society.
Nature of Marketing Management
Functional area of management
As a managerial function, it includes planning, organizing, directing, staffing, controlling of various marketing activities.
Practical application of marketing
The marketing management includes all the activities viz. advertisement, sale promotion, gift coupons, discounts, etc. which are necessary for satisfying the needs and wants of the consumers.
Determination of Marketing Mix
The marketing management determines the appropriate marketing mix for the business enterprise. All activities viz. product designing, promotion, pricing, etc are done in a way that the customers readily accept the products.
The overall goal of business is profit-making. Thus, by customer satisfaction, marketing management increases market share and revenue of the business enterprise.
Under this managerial function, the management requires specialized knowledge of markets, products, consumer behavior, consumer knowledge of markets, consumer’s tastes and preferences, business environment, etc. for the effective and efficient marketing activities.