Management is what the manager does. So what the marketing managers are doing can be called marketing management. But let us define marketing management in a different way. It is actually what the marketing manager has to do.
From a common-sense point of view, initially, they must find the total demand for their product in the market not only in quantity but also in quality. As the taste preference of different buyers may be different.
The organization has to please every customer with their desired products and services if possible with their expertise and capability. That is why a major query is for whom we should be producing the product?
Because it may not be possible for the organization to produce goods for each individual in the community and even the organization may not have that capability from a capital or human resource point of view.
So firstly a manager has to find and select the group of people for whom they will produce and Grameen Phone wants to shift its sell from pick hour to off-pick hour by charging less is a practice of de-marketing.
Deliver the goods and services according to cost-benefit analysis. This group of people whom the organization is actually going to serve now is called the target market.
For example, Executive Motors is distributing automobiles (e.g; BMW cars) only for ‘high class’ people of Bangladesh.
Executive Motors could or can import and distribute TOYOTA, which is affordable for the mid-class people. But they are concentrating on a specific class (e.g; high class) according to the cost-benefit analysis and their capability. After selecting the target market, now the organization has to decide what should be there offering to the target customer.
That means the organization has to decide about the product/service category, price mechanism, advertising, and sale promotional tools and distribution policies (a combination of these are called marketing mix). The marketing mix has to be prepared in such a way that the organization can please customers.
Because making a good relationship with a customer should be the main aim of the organization as they (customer) will help the organization to achieve its goal of making a profit. Ultimately two major tasks have to be done by the managers are, choosing and selecting target customer and finding the way to please the customer to build a profitable relationship is called marketing management. In fact, marketing management is a combination of customer management and demand management.
De-marketing: Another dimension of marketing: A marketing manager has to deal with no demand (explosive or space shuttle), adequate demand (demand for education in private universities), irregular demand (demand for hotels at Cox’s Bazar), and too much demand (like Tele-talk connection).
So marketing managers are not only engaged in creating demand rather they must be concerned about managing or some cause in reducing demand. Marketing to reduce demand temporarily or permanently is called de-marketing. The aim of this type of managerial task should not be to destroy demand rather reduce or shift it.
For example, Fantasy Kingdom may request the people not to come in certain holidays as there will be a huge rush of the customer on that specific day and that may create dissatisfaction with the customer as they have to wait in a long queue to enjoy a ride. Well, that is what we call de-marketing.
Here the Fantasy Kingdom is trying to shift the demand of the people to other days of the week when a crowd is relatively poor. But is the Fantasy Kingdom requests the people having heart or cardiac diseases to avoid rides like a roller coaster or magic carpet may be the example of destroying demand called de-marketing?
Think of government campaign on less use of water ins dry season is the case of de-marketing by the social organization not by the producer. Grameen Phone has different call rates for different hours.
In peak hours their call rate is high, discouraging the people from making calls at peak time because heavy calling at peak hours may create network problems thus customers will be dissatisfied. So they are trying to shift the call from peak to an off-peak hour by giving a lower call rate in off-peak hours.
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