Marketing Management Marketing Management. The essence and function of marketing management 2023
Marketing requires management as an integral system at the n-th level in the management system. To reveal the essence of the concept of "marketing management", it is necessary to once again change the essence of its constituents to the basics of their relationship.)
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(With the development of market relations, with their formation, the concepts of "marketing" and "management" are firmly entangled in our lives. Marketing is a complex phenomenon that is characterized by a variety of human activity (from industry to political conflict and sports). Social movements). Because of this, it does not fit into one phrase, as it is known that the concept of "marketing" has more than 2000 definitions, which cover all nuances, different types. Refine the specifics of human activity and economic development.
[In the original sense, marketing meant the sale of goods, for which there was sufficient market to sell, so that marketing efforts were largely confined to distribution work. As market saturation, enterprises were forced to perform more systematic sales tasks. The understanding of marketing has changed. Currently, marketing can be interpreted, firstly, as a theory of enterprise behavior, which includes the needs of consumers and buyers and the continuous direction of all decisions related to the market (as a principle of enterprise management Marketing); Second, marketing means, attempting to gain an advantage from consumers over competitors through a set of specialized market activities (marketed as tools); Third, Marketing can be described as a method of marketing as a systematic search for solutions based on modern tools. Marketing is today understood as an expression of a market-oriented management style, characterized by creative, systematic and often aggressive approaches /).
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Thus, next to the word "marketing", the verb "managed" appears. We use this without exception for all areas and types of activities where management is required. We are accustomed to any particular inconveniences and do not feel it, although we are well aware that it is not possible to use all the techniques and methods in managing the activities of Parliament to manage an enterprise. Could; Driving a car is not the same as managing a team. Possibly, in this regard, the following division was introduced in English-speaking countries:
"To manage", to manage in the economic sector (company, store, wholesale warehouse, etc.);
"To govern", to manage in the political arena (government, regional leadership, etc.);
"To control", to manage in the field of technology (machines, technical complexes, etc.).
Managing the role of marketing in organization management ♦ Organizational principles of marketing management marketing objectives management in marketing management system ♦ Marketing information support organization marketing organization organization marketing control marketing integrated marketing system
Role of marketing in running an organization
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Revival of production, its interests and preferences towards the consumer is possible only when the market is saturated and in healthy competition. Therefore, enterprises now need to tune into the marketing philosophy of the business and have sufficiently selected means to achieve these goals, for active economic and economic activities with clearly defined goals.
No organization can exist for its own sake. Its main function is to cater to the needs of the groups of the population it was formed. Marketing tools and tools are best suited for this task.
Marketing - The only way to stay "away" in a turbulent flow of time. The role of marketing is so important in the success of an organization that it is impossible to approach it narrowly.
P. According to Doyle, the concept of marketing today is "... the heart of the business system. In an economy built on the principles of competition, buyers have the opportunity to choose between goods from different companies. Consumers want to buy goods that they Offers have the highest value. - The function of perception of the value and value of the company's offers. Accordingly, to achieve success, the company must offer a product of higher value and quality at a lower price than its competitors. When \ u200b \ u200b cannot be counted until the company offers a competitive price and product quality. Gaining profit ”.
E. Williams, president of IBM, defined what business is in the early 1960s: "Business is something that has customers." If there is no exchange, then the business of buying and selling, there can be no business, because it is a fundamental part of it.
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The marketing system can only be imprinted on our approach that constitutes a business transaction;
The implementation of every new business transaction leads to the welfare of society, and a particular business - profit;
The idea of competition, which is susceptible to closed and strict operating systems, where it is the main source of self-development in modern economic life, is already becoming a hindrance to development.
The concept of marketing, derived from the English word market used in the field of economic management, suffix -a means a verb, which performs what kind of work in the market. Several other definitions of marketing are also known. Normalizations are shown in Fig. (Figure 25).
Marketing ideas - the core of the business system. It is based on social, moral and ethical norms of commercial communication, international codes and rules of professional integrity, interests of consumers and society.
T. Leavitt revealed a new approach to entrepreneurial activity in the early 60s of the XX century after publishing his article "Myopia of Marketing" in the scientific work of Harvard Business School, arguing that the goals of an enterprise The most reliable guarantee to be obtained is to determine the needs and desires of selected consumer groups. Ensuring the required level of satisfaction of requirements, more efficient means than target markets and competitors.
This new approach to entrepreneurship rejected the old concept of business - the desire to maximize profit through mass production and intensive marketing efforts.
F. A comparison of the two approaches shown by Kotler is shown in fig. 26.
Figure: 25 Summary of Modern Marketing
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The concept of modern marketing as a new business philosophy reflects the company's adherence to the principle and practice of consumer sovereignty: to produce what the consumer needs, and to benefit from the full satisfaction of its needs.
These requirements are possible only when the enterprise is financially independent and its management starts on humanitarian grounds.
The introduction of the marketing concept into entrepreneurship practice allows one to address a set of issues:
Reproducing the bilateral relationship between seller and buyer through market research, distribution, product promotion and advertising;
Coordinating all actions to satisfy consumer interests as the main goal of entrepreneurship.
The introduction of marketing in business practice means that businesses must do such tasks themselves and follow a policy that, first of all, meets the needs of consumers, and only then runs out of available resources and opportunities.
Businessmen have to rethink the issue of their competitors, attracting entrepreneurs who claim their share of the total demand of consumers.
Figure: Comparison of 26 intensive marketing concept sales intensive concept
The marketing concept reflects the idea that all types of entrepreneurship are aimed at satisfying the consumer's interests.
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"A consumer is an important person who has ever visited our office or addressed us by post. The consumer does not interfere in our work, that is its main goal and essence. We do not provide a service to the consumer when We take care of him. On the contrary, he is the one. Someone does us a favor by contacting our firm. The consumer is the one who cannot be argued with, who cannot be made fun of. No one ever has Has not benefited from arguing anything with the consumer.
The consumer is the one who brings us our desires. Our job is to fulfill this desire for us and profitably. "
L. Bean, American Entrepreneur
Increasing its consumer circle is a law for any enterprise that wants to increase its capital and be effective in the market.
The size and capacity of markets for mass production is constantly changing. And traditional social structure is not only becoming more and more complex, which is mixed, including demographic and rational terms. It becomes more dynamic and changes almost daily. This, in turn, continuously generates new consumer demands. And all together make traditional approaches and marketing methods less effective. All marketing efforts should be directed towards finding a comparative (competitive) advantage.
Consumers Expect Today's Entrepreneurs
Peace and security;
Worry about things that are difficult to cope with;
Facilities;
Communications;
Quality;
Opportunities to be your partner;
Be able to return things they are not very happy with;
Providing direct access to the enterprise they are working with.
The manager, acting on the principles of modern marketing, achieves the business goals set for the organization by the most complete satisfaction of needs through the reconciliation of the relationship between consumers and the manufacturer with a focus on consumer preferences.
In-house marketing goals - ensuring profitability of operations, achieving high commercial results, a fixed profit within a certain time frame, available resources and production capacity, winning planned market share and more.
The essence of marketing is revealed through its principles.
■ Purposefulness and the ultimate practical result of the enterprise's activity is to reduce market share.
■ The enterprise's orientation to the long-term consequences of market activity, with its fundamentally new consumer qualities, pays special attention to predictive research and development.
■ An integrated approach to achieving the set goals, as business success is only ensured by a whole set of mutual marketing tools.
If a company sets itself many goals and objectives related to financial activities and follows the interests of other business participants, it is not enough. The difference between a consumer-oriented company and a company striving for high financial performance is that the former's management considers the resulting benefits of successfully meeting the needs of the consumer.
Marketing principles remain the basis of success for many firms, but they will be affected by the difficult market environment in the future.
The company's strategic priorities of the XXI century are to accelerate response to change, adapt goods and services to consumer needs, improve information systems, and strive for higher quality standards.
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Companies adapt to the market, meet its needs and at the same time achieve their political goals - competition, profit, return on equity, and more. D. F. Kotler believes \ u200b \ u200b that such interests are rooted in marketing and is characterized as a social management process, during which. Individuals and groups of people get what they want, through the creation of wealth.
Marketing functions - These are mainly the functions of entrepreneurship, as they are associated with the process of managing the exchange of goods and services produced by the enterprise. Marketing functions can be represented as a cyclical process (according to A. Hocking):
Figure: The cyclic process of implementing 27 marketing functions
In Western and domestic literature on the problem of marketing management, there is not a single approach to the definition of marketing functions. A universal approach came to the definition and description of marketing functions. Is observed in Kratov, which separates four blocks of complex functions and several sub-functions in each of them. Structurally, they look like this.
Analytical work:
Market research such as;
consumer Research;
Study the corporate structure of the market;
Product studies (object structure);
Study of the internal environment of the enterprise. production function:
Organization of production of new goods, development of new technologies;
Organization of material and technical supplies;
Management of quality and competitiveness of finished products.
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Sales Function (Sales Function):
Organization of the distribution system;
Service arrangements;
Organization of a system of demand generation and sales promotion;
Implementation of targeted product policy;
Pursue Targeted Price Policy. Control and monitoring function:
Organization of strategic and operational planning in the enterprise;
Information support for marketing management;
Market management;
Communication subdivision of marketing. Organization of communication systems in the enterprise;
Organization of marketing control (feedback, functioning of communication and information systems in the same premises).
Among the complex of marketing management functions, management and control functions are given greater weight.
For enterprises working in market conditions, marketing provides proven cuisines to achieve satisfactory commercial results of economic activities, including:
A certain order of analytical work;
Entering favorable market areas;
The formation of changing environmental factors, including consumer behavior, in the interests of the enterprise;
Figure: 28 plan of marketing activities of the enterprise
Building a favorable image of the company and all its activities in the public eye.
The marketing management of the enterprise is aimed at attracting consumers and maintaining customer loyalty for the long term (Fig. 28).
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Functions Marketing Management:
The definition of target markets is determined by the level of effective demand and the capacity of service organizations;
Marketing research to obtain and analyze information about current and potential needs of buyers in selected markets;
Development of a product that will meet needs and desires;
Planning the marketing mix to provide consumers with insights to provide a sustainable communication channel for customer satisfaction and continuous improvement of the product and marketing mix and changes in needs and competitive landscape.
Building a customer-centric enterprise requires clarity of goals, persistence in achieving them, and active participation of all personnel. The process of implementing this idea includes:
Determine the mission of the organization;
marketing audit
Strategy formation;
Personnel training and retraining;
Implementation;
Maintaining customer attention.
Now the work has been done to organize the enterprise in such a way that its employees are finding new, more effective ways to meet the needs of consumers.
The most important tasks of managing the sustainability of an organization:
■ Study and select the targets of consumers in the manufacturing sector of the market.
■ Develop a marketing proposal, that is, explain the benefits to the consumer in service, packaging, and product components, create a price scale and methods of advertising, and also inform targeted consumers that the company has done its job. Is resolved in target market segments.
■ Seek support from other functional areas of the company.
■ Regulating and supervising the correct execution and effective performance of tasks.
The idea of marketing is to literally "permit" all the structures of a firm, not just one marketing entity.
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The implementation of ancillary marketing in relation to new business lines deserves special attention. Here the problems of entering new markets and manufacturing new products for the company are solved. In this case, marketing should play two important roles.
■ Identifying new opportunities. Marketing is very functional area which is responsible for identifying new opportunities, collecting and analyzing relevant information and attracting the attention of top management of the company about new opportunities.
■ Recommendations for proposed strategic actions. Strategic alliances, distribution and the decision to exit or acquire the market are directly related to marketing. An important factor of dissatisfaction and failure of such actions is, as a rule, the lack of serious marketing processing of such decisions.
The modern economic world has become more dynamic than it was many decades ago. The timing of replacement of some goods and services with others has become significantly faster, with some product lines being replaced by others in only two or three years. And in markets such as fashion apparel, footwear, computers, mobile devices, software, and computer games, updates are also made in short intervals.
Dynamic changes in engineering and technology lead to significant movements in the redistribution of consumer demand and financial flows. The indirectness of many product groups to business and end consumers sometimes occurs so quickly that competing companies do not have time to reorganize their business, marketing, and production policies to suit new economic trends.
This means that the life cycle of products has decreased significantly, and to maintain their market share, manufacturers must accelerate research and development. This requires additional financial resources and continuous intensive market research, on the basis of which innovative products are produced. Competitive conflict is lost by the company which lags behind the industry average pace of product line updates, inferior in marketing research and development to other market players.
This theoretical platform is the basis of the concept Marketing Management , which suggests that business management should be done spontaneously or not by trial and error, but based on market monitoring, trends in current and future demand. Only research and analysis of market conditions can become a reliable starting point for effective company management (see Figure 1).
Thus, the concept of marketing management (e.g., F. Kotler) has been emphasized to research the external environment , the future demand of businesses and end consumers. The research results serve as the basis for restructuring the production, product and management structure of the company, the formation of new divisions and laborers. It is expected to be able to manage innovation and risk by placing its finger on the pulse of the market.
The idea of combining the concept of marketing and enterprise management in terms of theoretical approach is very successful and productive. However, in the practical implementation aspect, fundamental difficulties that were previously hidden in the details begin to appear. For example, applying marketing management concept in practice prevents uncertainty .
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Suppose a company makes a mobile phone. Many other global industry leaders are in the same business, supplying smartphones and simple phone models to retailers. How to determine the direction of future demand? What will be in demand - expensive devices or relatively simple devices with many additional functions? What would consumers like - design, minimum size, functionality, or some new feature?
Marketing research can only partially overcome this uncertainty. The consumer cannot accurately determine at an abstract level during a survey, without testing its attributes, looking at the corresponding model before the eyes. This is where the mistakes of strategic management are revealed. For example, based on the results of surveys and focus groups, the company's management software decides to consolidate blocks, expand memory and processor power. For these purposes, large amounts of money are allocated, deducted by the company from its own profits or by attracting bank loans.
After their arrival at the manufacture and sale of new models of smartphones, it is revealed that they are purchased sluggishly, with no R&D costs paid, resulting in the business losing its competition quickly.
Thus, even with high quality marketing research, the risks associated with the launch of an innovative product on the market cannot be completely leveled. Unpleasant surprises may come from competitors who have introduced new models of their smartphones to the market, new technologies or operating systems that have appeared at the very last minute, new designs, hidden defects in an innovative product, or any other circumstance. Which affect demand.
In the system of market marketing research, any errors, unnoticed, misinterpretations may appear - and then the company will assume the innovation risk is high . Like Nokia, one can become an outsider from the world's market leaders in two or three years, placing bets on the wrong directions.
On the other hand, nothing can be done to introduce innovations, - we are all familiar with the sad story of Kodak, who underestimated the potential of developing photographic devices based on microelectronics. Continuing in analog photography, the former international photo industry giant lost ground in the years it filed for bankruptcy.
Briefly stated, we note that the concept of marketing management, with all its internal logic and validity of approach, in practice faces some of the difficulties associated with the uncertainty of future demand growth and its focus on product groups .
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