Marketing management involves selecting target markets not only to attract new customers but also to retain existing ones. It is a business discipline grounded in research and the practical application of marketing techniques, as well as the management of marketing resources. Professionals excelling in this field are known as marketing managers. Their role is to influence the timing and level of customer demand to support sales, which varies depending on the business size and the corporate environment. For instance, in a large production company, a marketing manager may oversee a specific product category, being accountable for its profit and loss. Meanwhile, in small businesses, the responsibilities of a marketing manager are often handled by the company’s partners.
Creating and communicating superior customer value is critical to increasing customer numbers. The activities and resources dedicated to retaining existing customers and acquiring new ones fall under marketing management. Its scope extends beyond developing a product to ensuring its sustainability in the market. The term "marketing management" has diverse interpretations depending on individual companies, their marketing departments, and the roles of other departments like operations, finance, pricing, and sales.
Before formulating a marketing strategy, a company must thoroughly analyze its business and market landscape. This is where marketing management integrates with strategic planning. Typically, marketing strategies involve three key analyses: customer, company, and competitor. Through customer analysis, markets are segmented into distinct customer groups based on characteristics such as geographic location, demographics, behavior patterns, and needs. For example, a segment of frequent buyers with low price sensitivity and potential growth could be prioritized with significant investment. This approach not only retains such customers and attracts similar ones but may also discourage focus on less valuable segments. Meeting customer expectations better than competitors leads to higher sales and increased profitability.
Company analysis focuses on understanding the organization's cost structure and resource allocation compared to competitors. It helps accounting executives assess the profitability of individual products. Periodic audits are conducted to evaluate the strengths of various company brands.
Competitor analysis enables marketers to build detailed customer profiles and understand their company’s strengths and weaknesses in comparison to competitors. Factors such as cost structure, resources, competitive positioning, vertical integration, product differentiation, and profitability are examined and compared with the company's performance in these areas.
To conduct marketing analysis, marketing managers rely on research methods such as qualitative and quantitative research, experimental techniques, and observational techniques. These studies and analyses provide the foundation for making strategic decisions.
Once the research is complete, marketing managers can develop strategies aimed at boosting company profits and revenues. Additional goals might include long-term profitability, market share expansion, and revenue growth.
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