What is Marketing Management? (Definition and Examples)

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 preferences of different buyers may be different.

Marketing management definitions

Institute of Marketing Management, England, has defined Marketing Management as “Marketing Management is the creative management function which promotes trade and employment by assessing consumer needs and initiating research and development to meet them. It co-ordinates the resources of production and distribution of goods and services, determines and directs the total efforts required to sell profitably to ultimate user”.

According to Philip Kotler, “Marketing Management is the art and science of choosing target markets and building profitable relationship with them. Marketing management is a process involving analysis, planning, implementing and control and it covers goods, services, ideas and the goal is to produce satisfaction to the parties involved”.

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 sales 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 to ‘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, sale promotional tools, and distribution policies (a combination of these is 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 that have to be done by the managers are, choosing and selecting target customers 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 but rather to reduce or shift it.

For example, Fantasy Kingdom may request the people not to come on 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 the crowd is relatively poor. But if the Fantasy Kingdom requests the people having heart or cardiac diseases to avoid rides like a roller coaster or magic carpet may be an example of destroying demand called de-marketing?

Think of a government campaign on less use of water ins the dry season as the case of de-marketing by the social organization, not by the producer. Grameen Phone has different call rates for different hours.

During 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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