The basic purpose of marketing management is to achieve the objectives of the business, with the primary business aim being attaining reasonable profits by satisfying the needs of customers.
Objectives of Marketing Management:
1. Creation of Demand:
– The foremost objective of marketing management is to create demand through various means. This involves a conscious effort to understand the preferences and tastes of consumers, offering goods and services to satisfy their needs.
2. Customer Satisfaction:
– Marketing management must study the demands of customers before offering goods or services. The focus is not just on selling products but ensuring the satisfaction of customers’ needs, emphasizing a customer-centric approach.
3. Market Share:
– Every business aims to increase its market share, i.e., the ratio of its sales to the total sales in the economy. This involves competition with other businesses, and innovative marketing strategies are employed to achieve this objective.
4. Generation of Profits:
– Marketing is the key department responsible for generating revenue for the business. Sufficient profits are essential for the survival and growth of the business. Profits are not just a financial outcome but also crucial for the growth and diversification of the firm.
5. Creation of Goodwill and Public Image:
– Building a positive public image is another objective of marketing. It involves providing quality products at reasonable prices and creating a positive impact on customers. Activities like sales promotion, advertising, and customer-centric practices contribute to building goodwill.
Major Importance of Marketing Management:
1. Transfer, Exchange, and Movement of Goods:
– Marketing facilitates the transfer, exchange, and movement of goods. It ensures that goods and services are made available to customers through various intermediaries such as wholesalers and retailers.
2. Raising and Maintaining the Standard of Living:
– Marketing significantly contributes to raising and maintaining the standard of living in the community. By providing an uninterrupted supply of goods and services at reasonable prices, marketing has revolutionized and improved living standards.
3. Creation of Employment:
– Marketing involves a complex mechanism that engages many individuals in various functions. This creates employment opportunities, and the performance of marketing functions sustains high levels of business activity.
4. Source of Income and Revenue:
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– Marketing is the primary source of income and revenue for a business. It involves obtaining income by selling goods and services and brings in profits. Marketing actions are directly connected to obtaining income and sustaining business activities.
5. Basis for Decision-Making:
– Marketing provides essential information for business decisions, including what to produce, how to produce, when to produce, how much to produce, and for whom to produce. It plays a pivotal role in guiding business activities.
6. Source of New Ideas:
– Marketing is a dynamic concept that evolves with time. It acts as a source of new ideas, adapting to changes in consumer preferences and introducing innovative products and strategies to meet new demands.
7. Development of an Economy:
– Marketing is instrumental in the development of an economy. It sets the economy in motion, and a well-organized marketing function contributes to economic stability and growth.
In conclusion, marketing management is indispensable for the success of a business, addressing both financial and societal aspects, and playing a vital role in the overall development of an economy.