Marketing Management: Functions and Importance

Marketing Management refers to the process of planning, organising, implementing, and controlling marketing activities to satisfy customer needs and achieve organisational objectives effectively. It focuses on analysing market opportunities, developing suitable marketing strategies, and ensuring that products or services reach the target audience efficiently.
In simple terms, marketing management ensures that the right product reaches the right customer, at the right place, through the right channels, and at the right price — thereby creating mutual value for both the business and its customers.

Definition

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.”

According to Cundiff and Still,

“Marketing management is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organisational goals.”

Thus, marketing management combines analytical thinking, creativity, and coordination to achieve profitable customer satisfaction.

Functions of Marketing Management

The functions of marketing management represent the activities and responsibilities undertaken to achieve marketing objectives. They can be classified as planning, organising, directing, and controlling marketing operations.

1. Marketing Planning

• It involves identifying marketing goals, analysing the market environment, and determining strategies to achieve objectives.
• Includes decisions regarding product design, pricing, promotion, and distribution.
• Helps in anticipating future market opportunities and challenges.

Example: A mobile company plans to launch a new smartphone model after studying consumer preferences and competitor pricing.

2. Market Research and Analysis

• Marketing management begins with understanding customer needs and market trends through systematic research.
• Involves collecting, analysing, and interpreting data about consumer behaviour, competitors, and market potential.
• Provides insights that guide product development, pricing, and promotional strategies.

Example: Conducting surveys or focus groups before launching a new product.

3. Product Planning and Development

• Involves designing and developing products that meet customer needs and preferences.
• Includes decisions on product features, branding, packaging, labelling, and quality standards.
• Product innovation and modification are continuous processes in response to changing market demands.

Example: A company developing eco-friendly packaging for its products to meet sustainability goals.

4. Pricing Management

• Price is a crucial element of the marketing mix that affects demand, profitability, and competition.
• Marketing management determines pricing strategies based on factors such as production costs, consumer perception, competition, and market conditions.
• May use strategies like penetration pricing, skimming, or value-based pricing.

Example: Setting competitive prices during a product’s introductory phase to attract customers.

5. Promotion and Communication

• Involves creating awareness and persuading potential customers to purchase products.
• Marketing management selects appropriate promotional tools such as advertising, sales promotion, public relations, and personal selling.
• Digital marketing, influencer collaborations, and social media campaigns are modern promotional techniques.

Example: Launching an online campaign or TV advertisement to promote a new product.

6. Distribution (Place) Management

• Ensures that products are available to customers at the right time and place.
• Includes decisions related to distribution channels (wholesalers, retailers, e-commerce), logistics, transportation, and inventory management.
• Aims at optimising supply chain efficiency and customer convenience.

Example: A food delivery company using technology to track and manage its supply chain.

7. Customer Relationship Management (CRM)

• Focuses on building and maintaining long-term relationships with customers.
• Includes after-sales service, feedback collection, and loyalty programmes.
• Helps retain existing customers and attract new ones through word-of-mouth and trust.

Example: Loyalty points and membership rewards offered by retail stores and online platforms.

8. Marketing Control and Evaluation

• Monitoring and evaluating marketing activities to ensure that objectives are achieved effectively.
• Involves comparing actual performance with planned targets, identifying deviations, and implementing corrective actions.
• Tools like sales analysis, market share analysis, and customer satisfaction surveys are used for control.

Example: Evaluating the success of an advertising campaign based on sales data.

Supporting (Ancillary) Functions of Marketing Management

Apart from core functions, marketing management also includes certain supporting activities that ensure successful marketing operations:

1. Standardisation and Grading: Ensuring product uniformity and categorising products based on quality.
2. Packaging and Labelling: Protecting the product and providing essential information.
3. Transportation and Storage: Ensuring safe and timely delivery of goods.
4. Sales Forecasting: Estimating future demand to plan production and inventory.
5. Financing: Providing credit facilities to dealers and customers to stimulate sales.

Importance of Marketing Management

Marketing management holds immense importance in both business and economic development.

1. Customer Satisfaction

• The central aim of marketing management is to identify and meet customer needs effectively.
• It ensures that products are designed, priced, and delivered to satisfy customers’ expectations.

2. Increase in Sales and Profitability

• By attracting and retaining customers, marketing management helps in expanding the market base and boosting profits.
• Efficient marketing strategies improve sales volume and revenue generation.

3. Optimal Resource Utilisation

• Marketing management ensures efficient allocation and use of resources like manpower, materials, and capital.
• Prevents wastage and enhances organisational efficiency.

4. Market Expansion

• Helps businesses explore new markets and customer segments.
• Encourages global marketing, enabling firms to reach international customers.

5. Builds Brand Image and Loyalty

• Through consistent product quality, effective communication, and customer service, marketing builds a strong brand reputation and customer trust.

6. Adapts to Market Changes

• Helps businesses adjust to technological, economic, and competitive changes in the environment.
• Promotes innovation to meet emerging customer demands.

7. Employment Generation

• Marketing activities such as distribution, advertising, retailing, and market research create vast employment opportunities.

8. Promotes Economic Development

• Marketing connects producers with consumers, facilitating efficient distribution of goods and services.
• Enhances production, trade, and overall national income.