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Marketing Management

Lakshmi Challa

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Introduction

Marketing managers are

concerned with marketing

organization, products, brands,

channels, physical distribution,

pricing, advertising andpersonal selling.

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Management Process

The management process

consists basically of: (i)

developing a plan or

programme; (ii) executing it;

and (iii) evaluating the results.

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Management

Management is required to plan,

organize, co-ordinate and control the

affairs of the organization. It bringsthe human and material resources

together and motives the people for

the achievement of the objectives of

the organization.

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Process of Management

Planning

Organizing

Staffing

Directing Coordinating

Controlling

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Planning:

It is an intellectual process. It is a continuous andnever ending process. It is performed bymanagers at all levels. Planning means deciding inadvance what should be done, what to do, when

to do, where to do it, how to do it and how toevaluate the result.

The process of planning includes thedetermination of organizational objectives, and

the formulation of plans, policies, strategies andprogrammes, procedures and schedules toachieve the desired organizational objectives.

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Organizing:

Organizing means bringing together themanpower and other resources viz. men, money,

machinery, materials, etc. and putting them into

working order for the achievement of objectives

laid down in the enterprise.

Louis Allen defines organization as the process

of identifying and grouping the work to be

performed, defining and delegating responsibilityand authority and establishing relationship for

the purpose of enabling people to work most

effectively together in accomplishing objectives.

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The process of organization

involves the following steps:

To identify the work to be performed.

To classify or group. To assign these groups of activities, or work to

individuals.

To delegate authority and fix responsibility. To establish structural relationships

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Staffing:

This function involves manning the positionscreated by the organization process. It isconcerned with human resources of an

organization. According to Koontz and ODonnel, The

managerial function of staffing involves manningthe organizational structure through proper and

effective selection, appraisal and development ofpersonnel to fill the roles designated into thestructure.

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Staffing consists of the following:

Man power planning i.e. assessing manpower

requirements in terms of quantity.

Recruitment, selecting and training

Placement of man power

Development, promotion, transfer and

appraisals

Determination of employee remunerati

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The functions of directing It involves the following activities:

Communication: It is a process of passing informationfrom one person to another. It involves systematictelling, listening and understanding.

Leadership: It is the process of influencing the behaviorof sub-ordinates and guiding and leading the sub-ordinates in the proper and systematic performance ofwork.

Motivating: It is the task of inspiring the sub-ordinates

to do their work with interest and enthusiasm for theaccomplishment of the goals of the organization.

Supervision: Supervision means overseeing the workperformance of the sub-ordinates.

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Coordinating:

An organization is divided and sub-divided intodifferent segments or sections for the purpose ofreaping the benefits of specialization. Because ofthe division of activities, it is necessary to

synchronize, harmonize or, unify the activities ofthe various groups of people towards theattainment of the objectives of the enterprise.Co-ordination is the orderly arrangement of

group efforts for unifying the actions of thevarious groups for achieving the common goals ofthe organization.

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Controlling:

It is concerned with seeing that all activities ofthe controlling of the enterprises are being

conducted in conformity with the plans.

Controlling may be defined as determiningwhat is being accomplished, that is, evaluating

the performance and if necessary, applying

corrective measures so that the performance

takes place according to plans

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The process of controlling

It involves the following steps:

Establishing standards of performance.

Measuring actual performance with thestandard.

Comparing the actual performance with the

standard.

Finding the variances or deviations, if, any, and

Taking corrective actions or measures.

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Determining Objectives:

The main objectives are

To obtain certain profit in the long run and

also good sales.

Setting goals and communicating with the

concerned persons.

Goals set should be realistic and relevant.

Planning operation decisions should be in line

with the goals.

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Planning:

Planning is a manner of achieving goals.

The period of setting goals can be short or

long; may cover product or products.

The method of adopting an overall plan of

action for achieving the pre-determined

objective is termed as strategy.

The detailed methods and techniques used in

implementing the strategy isTactics.

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Organizing:

Process of arranging activities and the people toachieve the maximum output with highest degreeof efficiency.

Organizational policies and practices should becompatible with marketing plans.

Should have the necessary capabilities forachieving the marketing goals.

A draft of promotional programmes andcampaigns are planned for taking actions inexecuting the policies and implementing themarketing plans.

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Coordination

There should be a coordination of all activitiesthat are carried out by the company to sustainthe customer.

Effective coordination between sales, advertising,marketing research, customer service is required.

Production department should coordinate withmanufacturing department for proper quantity

and quality of products at the right time and forgiving information about the product for salestraining.

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Controlling

This is required for proper decision and action.

The four phases of the controlling function are

Establishment of performance standards Measurement and feedback of performance

results

Evaluation of actual performance againststandards, and

Action is indicated by the evaluation

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Staffing

Important function is to assess the human

resources for proper selection of personnel. To eliminate or reduce management

problems.

Operating Implementation of the programme.

Important as success depends upon the waythe business is operated.

Includes operating sales force and directing anadvertising programme.

E l ti

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Evaluating:

The results of the company's

activities are analyzed and

evaluated.

Determines if they have beensuccessful in goal setting and

implementation.

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Evaluating

It comprises of four areas

Analysing marketing costs by territories, productsor customer groups.

Evaluation of performance of the individualsalesmen.

Evaluation of the effectiveness of advertisingprogrammes by both manufacturers and

middlemen. Performance evaluation of middlemen by

individual manufacturers.

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Marketing Organisation Structure

It is necessary to keep in mind that the aim of

the company is to satisfy customers' needs

before deciding the type of organisation

structure. It should be customer oriented,should not be rigid so as to make it difficult to

adjust to the changing conditions. The

organisation may be on the basis of functions,products, types of customers or a combination

of these.

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Types of organizations

Functional Organization

Products Organization

Territory or Area Organization

Customers Type Organization

Combined Type Organization

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Functional Organisation

The simplest and most common type and is

suitable for a small company.

The work of the marketing department is

divided according to functions with all the

functions reporting to a marketing executive.

It is based on the principle that more varied

skills are needed to handle different marketing

functions effectively.

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Products Organisation Structure

Marketing decision of particular products or

brands are assigned to the product manager.

The product manager decides on matters like

advertising and sales promotion in

consultation with the advertising sales

promotion marketing research and

publications managers.

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Territory or Geographical

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Territory or Geographical

Organisation Structure

The duties are divided and assigned on

the basis of specific areas to different

persons.

The regional manager and his staff

become experts in their particular

territory with all matters concerned withthe customers.

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Customers Organisation Structure

Emphasis is laid on the types of

consumers, distributors, retailers,

ultimate consumers.

Separate groups will be formed

for marketing programmes fordifferent types of customers.

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Combined Organization Structure

The function and product type of structure iscombined with the territorial type.

Generally has

Functional managers of sales, marketing services,and marketing information;

Product managers of food, chemicals,pharmaceuticals, toiletries, etc.,

Market managers of consumer, agricultural andindustrial products.

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Division of Authority

In a small marketing department, the entire

work is to be handled by the marketing

executive

In a large organisation responsibilities are

generally divided by the chief executive

among specialists, with technical knowledge

of activities -advertising, marketing researchor distribution and sale.

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Activities of the Marketing

Department The Marketing Manager or the Marketing department has the

follow specific responsibilities.

Develop a marketing policy

Organize the marketing function

Build a vigorous, strong sales force

Sponsor a continuing programme of business research

Analyze and interpret data on indicated trends

Participate in corporate decision making and develop detailedsales plans and budgets

Determine the most desirable channels of distribution

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Plan and direct the actual selling effort

Co-operatewith other functions at the top company level

Co-operate with other members of top management

Exercise general policy control over advertising and sales

promotion Provide those customer services that company products

demand

Give special attention to company's overseas marketingproblems

Encourage good employee relations

Periodically review the over-all marketing organisation andprogramme

The Functions of the Marketing

Manager