Marketing management

Marketing management is a process of controlling the marketing

aspects, setting the goals of a company, organizing the plans step by
step, taking decisions for the firm, and executing them to get the
maximum turn over by meeting the consumers' demands.

Objectives
The objectives of each business are pre-set which is led by objectives
of marketing management. The basic and important objectives of
marketing management are:

• Attracting new customers

The important objective of marketing management is to attract new

customers to increase the sales of products. Different strategies are set
to make sure that maximum customers get attracted to the company's
products like displaying ads on TV channels or social media, pamphlets,
and arranging a sales team that demonstrates the products.

• Satisfying the demands of customers

Another important objective of marketing management is to keep

satisfied the customer who is associated with the company's products
for a long period. For this purpose, the quality matters a lot but apart
from this good service is also concerned like an on-time supply of
products and without damage, the products are supplied.

• Profitability

Without earning profit a company could not survive longer. Earning

profit is the backbone of a company. It is necessary to earn profit for
growing, diversifying a business, and its maintenance as well. For this
purpose, a company must know what is market management? And how
to achieve these market targets? A company’s management team
keeps the marketing on track by entertaining their old and reliable
customers and attracting the new customer to make maximum profit for
maximum growth.

• Creating a good public reputation

Public reputation plays an important role in the growth of a company. If

the company has stood as a good public figure it means it has more
chances to grow and diversify but if stands with a bad reputation, it will
no longer survive. By marketing, the reputation of a company can be
made good and trustworthy for the consumers.

What Are the 4 Ps of Marketing?

The four Ps are the key considerations that must be thoughtfully
reviewed and wisely implemented in order to successfully market a
product or service. They are product, price, place, and promotion.

The four Ps are often referred to as the marketing mix. They

encompass a range of factors that are considered when marketing a
product, including what consumers want, how the product or service
meets or fails to meet those wants, how the product or service is
perceived in the world, how it stands out from the competition, and how
the company that produces it interacts with its customers.

The four Ps were introduced in the 1950s.

1. Product

A product is any good or service that fulfills consumer needs or desires.

It can also be defined as a bundle of utilities that comes with physical
aspects such as design, volume, brand name, etc. The type of product
impacts its perceived value, which allows companies to price it
profitably. It also affects other aspects such as product placement and
advertisements. Defining the product also is key to its
distribution. Marketers need to understand the life cycle of a product,
and business executives need to have a plan for dealing with products
at every stage of the life cycle.
The type of product also dictates in part how much it will cost, where it
should be placed, and how it should be promoted.

2. Price

Price is the amount that consumers will be willing to pay for a product.
Marketers must link the price to the product's real and perceived value,
while also considering supply costs, seasonal discounts, competitors'
prices, and retail markup.

In some cases, business decision-makers may raise the price of a

product to give it the appearance of luxury or exclusivity. Or, they may
lower the price so more consumers will try it.

Marketers also need to determine when and if discounting is

appropriate. A discount can draw in more customers, but it can also
give the impression that the product is less desirable than it was.

3. Place

Place involves choosing the place where products are to be made

available for sale. The primary motive of managing trade channels is to
ensure that the product is readily available to the customer at the right
time and place. It also involves decisions regarding the placing and
pricing of wholesale and retail outlets.

That means placing a product only in certain stores and getting it

displayed to the best advantage.

The term placement also refers to advertising the product in the right
media to get the attention of target consumers.

For example, the 1995 movie GoldenEye was the 17th installment in
the James Bond movie franchise and the first that did not feature an
Aston Martin car. Instead, Bond actor Pierce Brosnan got into a BMW
Z3. Although the Z3 was not released until months after the film had
left theaters, BMW received 9,000 orders for the car the month after
the movie opened.
4. Promotion

The goal of promotion is to communicate to consumers that they need

this product and that it is priced appropriately. Promotion encompasses
advertising, public relations, and the overall media strategy for
introducing a product.

Marketers tend to tie together promotion and placement elements to

reach their core audiences. For example, In the digital age, the "place"
and "promotion" factors are as much online as offline. Specifically,
where a product appears on a company's web page or social media,
as well as which types of search functions will trigger targeted ads for
the product.

How To Use the 4 Ps of Marketing in Your Marketing

Strategy
First, analyze the product you will be marketing. What are the
characteristics that make it appealing? Consider similar products that
are already on the market. Your product may be tougher, easier to use,
more attractive, or longer-lasting. Its ingredients might be
environmentally friendly or naturally sourced. Identify the qualities that
will make it appealing to your target consumers.

Think through the appropriate price for the product. It's not simply the
cost of production plus a profit margin. You may be positioning it as a
premium or luxury product or as a bare-bones, lower-priced alternative.

Placement involves identifying the type of store, online and off, that
stocks products like yours for consumers like yours.

Promotion can only be considered in the context of your target

consumer. The product might be appealing to a hip younger crowd or
to upscale professionals or to bargain hunters. Your media strategy
needs to reach the right audience with the right message.
When Did the 4 Ps Become the 7 Ps?
Three newer Ps expand the marketing mix for the 21st century.

• People places the focus on the personalities who represent the

product. In the current era, that means not only sales and
customer service employees but social media influencers and
viral media campaigns.
• Process is logistics. Consumers increasingly demand fast and
efficient delivery of the things they want, when they want them.
• Physical evidence is perhaps the most thoroughly modern of the
seven Ps. If you're selling diamond jewelry on a website, it must
be immediately clear to the consumer that you are a legitimate
established business that will deliver as promised. A
professionally designed website with excellent functionality, an
"About" section that lists the principals of the company and its
physical address, professional packaging, and efficient delivery
service are all critical to convincing the consumer that your
product is not only good, it's real.

Product Life Cycle

The term product life cycle refers to the length of time from when a
product is introduced to consumers into the market until it's removed
from the shelves. This concept is used by management and by
marketing professionals as a factor in deciding when it is appropriate
to increase advertising, reduce prices, expand to new markets, or
redesign packaging. The process of strategizing ways to continuously
support and maintain a product is called product life cycle management.
Products, like people, have life cycles. The life cycle of a product is
broken into four stages—introduction, growth, maturity, and decline.

A product begins with an idea, and within the confines of modern

business, it isn't likely to go further until it undergoes research and
development (R&D) and is found to be feasible and potentially
profitable. At that point, the product is produced, marketed, and rolled
out. Some product life cycle models include product development as a
stage, though at this point, the product has not yet been brought to
customers.

i. Introduction Stage

The introduction phase is the first time customers are introduced to the
new product. A company must generally includes a substantial
investment in advertising and a marketing campaign focused on
making consumers aware of the product and its benefits, especially if
it is broadly unknown what the item will do.

During the introduction stage, there is often little-to-no competition for

a product, as competitors may just be getting a first look at the new
offering. However, companies still often experience negative financial
results at this stage as sales tend to be lower, promotional pricing may
be low to drive customer engagement, and the sales strategy is still
being evaluated.

ii. Growth Stage

If the product is successful, it then moves to the growth stage. This is

characterized by growing demand, an increase in production, and
expansion in its availability. The amount of time spent in the
introduction phase before a company's product experiences strong
growth will vary from between industries and products.

During the growth phase, the product becomes more popular and
recognizable. A company may still choose to invest heavily in
advertising if the product faces heavy competition. However, marketing
campaigns will likely be geared towards differentiating its product from
others as opposed to introducing the goods to the market. A company
may also refine its product by improving functionality based on
customer feedback.

Financially, the growth period of the product life cycle results in

increased sales and higher revenue. As competition begins to offer
rival products, competition increases, potentially forcing the company
to decrease prices and experience lower margins.

iii. Maturity Stage

The maturity stage of the product life cycle is the most profitable stage,
the time when the costs of producing and marketing decline. With the
market saturated with the product, competition now higher than at other
stages, and profit margins starting to shrink, some analysts refer to the
maturity stage as when sales volume is "maxed out".
Depending on the good, a company may begin deciding how to
innovate its product or introduce new ways to capture a larger market
presence. This includes getting more feedback from customers, and
researching their demographics and their needs.

During the maturity stage, competition is at the highest level. Rival

companies have had enough time to introduce competing and
improved products, and competition for customers is usually highest.
Sales levels stabilize, and a company strives to have its product exist
in this maturity stage for as long as possible.

A new product needs to be explained, while a mature product needs to

be differentiated.

iv. Decline Stage

As the product takes on increased competition as other companies

emulate its success, the product may lose market share and begin its
decline. Product sales begin to drop due to market saturation and
alternative products, and the company may choose to not pursue
additional marketing efforts as customers may already have
determined whether they are loyal to the company's products or not.

Should a product be entirely retired, the company will stop generating

support for it and will entirely phase out marketing endeavors.
Alternatively, the company may decide to revamp the product or
introduce a next-generation, completely overhauled model. If the
upgrade is substantial enough, the company may choose to re-enter
the product life cycle by introducing the new version to the market.

The stage of a product's life cycle impacts the way in which it is

marketed to consumers. A new product needs to be explained, while
a mature product needs to be differentiated from its competitors.

Advantages of Using the Product Life Cycle

The product life cycle better allows marketers and business developers
to better understand how each product or brand sits with a company's
portfolio. This enables the company to internally shift resources to
specific products based on those products' positioning within the
product life cycle.

For example, a company may decide to reallocate market staff time to

products entering the introduction or growth stages. Alternatively, it
may need to invest more cost of labor in engineers or customer service
technicians as the product matures.

The product life cycle naturally tends to have a positive impact on

economic growth, as it promotes innovation and discourages
supporting outdated products. As products move through the life cycle
stages, companies that use the product life cycle can realize the need
to make their products more effective, safer, efficient, faster, cheaper,
or better suited to client needs.

Limitations of Using the Product Life Cycle

Despite its utility for planning and analysis, the product life cycle doesn't
pertain to every industry and doesn't work consistently across all
products. Consider popular beverage lines whose primary products
have been in the maturity stage for decades, while spin-offs or
variations of these drinks from the same company have failed.

The product life cycle also may be artificial in industries with legal
or trademark restrictions. Consider the new patent term of 20 years
from which the application for the patent was filed in the United
States.1 Though a drug may be just entering their growth stage, it may
be adversely impacted by competition when its patent ends regardless
of which stage it is in.

Another unfortunate side effect of the product life cycle is prospective

planned obsolescence. When a product enters the maturity stage, a
company may be tempted to begin planning its replacement. This may
be the case even if the existing product still holds many benefits for
customers and still has a long shelf life. For producers who tend to
introduce new products every few years, this may lead to product waste
and inefficient use of product development resources.