Marketing Management - Elements of Marketing Strategy - Essay Example

? Marketing Management Introduction Marketing management basically entails putting into practice, tracking and re-evaluating a company’s marketing resources and activities. Marketing management revolves around how large a company is and the industry in which it works. Efficient marketing management uses the company’s resources in order to increase the customer’s base, as well as improve the customers’ opinions on the company’s products and services. Marketing management further increases the company’s perceive value. Many companies seek success in various factors. These factors include: excellent information systems, qualified workforce, and modern technology all contribute to business success. Nevertheless, successful companies, such as Coca Cola Company, McDonald’s foods, Starbucks, and other renowned companies have had a similarity: they have a strong customer orientation programs and have heavily invested in marketing on their products and services. Marketing Management In essence, marketing consists of strategies and tactics that are used to identify, create and maintain satisfying relationships with customers that results in value increase for the companies and the customers. Successful companies dedicate efforts to sensing, serving and satisfying the needs of customers in the unique target markets. Companies like Apple have attained brand equity through constant innovation an excellent customer service. Moreover, Apple products are built on advanced communication technology and additional feature like email and messages capabilities, which have increased the level of customer satisfaction. Basically, the Apple Company has been able to implement technology, and innovation in all the marketing mix elements (Boone and Kurtz, 2010). Marketers should always understand that business revolves around the creation and delivery of value to customers. The customer value is said to be the variation between the customers’ value gained from owning and using the products and the cost of obtaining the products. Of importance to note is that successful marketing managements entails identifying the right market for the products and services and designing the appropriate marketing communication messages, which are tailored to the particular market and target customers (Green and Keegan, 2012). Elements of Marketing Strategy The marketing strategy of any company is composed of various elements, which interrelate. The main element is the market selection and the product planning, which basically involves the product line and the product offering of the target market. A company can either choose a single market strategy or multi market strategy. In single marketing strategy, the company will concentrate its efforts in servicing the single unique market segment while avoiding competition with the dominant players. In a multi marketing strategy, the company will serves several distinct markets hence the importance of carefully selecting the target markets which are viable. In a total marketing strategy, the company will offer differentiated products to different market segments; hence it should utilize the marketing variables such as price, promotion, products, as well as, the distribution strategies in competing effectively in the entire market (Haberberg and Rieple, 2008). The company should ensure that thorough scrutiny should be able to decide and take up on the best marketing strategy that ought to be used. For instance, the Apple Company has been able to anticipate and bear the market risks including the effective promotion of the Apple products such as iPods and phones. According to Hartline and Ferrell 2010, a company may also choose an early entry where it brings into the market a new segment after the market leaders hence the company should ensure that it uses superior marketing strategies and sufficient resources to compete with the market leader. A company could also choose a laggard entry strategy where it enters in the market through imitation of market leaders hence, should have excellent promotional abilities, and enough market research capabilities (Heinemann, 1999). Basically, Apple has come out as a company that has been able to put to use different marketing contact strategies like, public relations, advertising, and publicity in persuading customers to purchase the products. In fact, the marketing management decisions in the Apple Company are aimed at educating the customers on the uses of the products and giving them notices of new launches (Henry, 2008). Brand Equity With reference to the works of Philip Korter, a product is comprised of three levels (Kotler, 2003). The first level is a core product and the benefit of purchasing the products. The next product level of the product is the real product that comprises of the branding or the additional features, which the main product offers to the customer such as Mac book, PowerBooks, iPod, MP3 music players, iTunes, iPad and personal computers. This is the differential advantage that the company offers to the market over the competitor’s products (Kotler, 2005). For instance, the Coca cola Company has been able to bring into the market different flavoured drinks, which have not being brought by other companies that manufacture soft drinks internationally. The third level of the product is the augmented product, which are the additional non tangible benefits being offered by the product. The product features in this level include the after sales services, warranties, and other service which particular companies are in positions to offer to the customers after the sale. The augmented products are meant to give customers peace of mind after the purchase of products and /or services (Johnson et al., 2011). Five Forces’ Framework According to Michael porter’s five forces of competitive position model offer a perspective analysis of the competitive edge of n company. The five forces which include; Competitive rivalry, Buyer bargaining power, Supplier bargaining power, and threat of substitutes (Kotler and Keller 2009). The forces have been known to assist many companies to recognise the dynamics on the entire industry so as to develop and maintain competitive advantage. Essentially, they bring up competition and competitiveness of the market, which forms the basis of the competitive environment (Reuer, 2004). A part from the rivalry from the existing companies in the market with inclusion of having threats of the new products that are joining the market, it is believed that other forces such as supplier power, buyer power, and the threat of substitute products determine the success of a company. In fact, Michael porter suggests that these five forces are interconnected with the ability of a company to offer quality products or services to its customers, as well as, making profit. Never the less, the intensity of the competition in the marketing world is determined by the strength of these forces (Sadler and Craig, 2003). For instance, in regard to McDonald‘s an international fast food company’s competitive rivalry, it is apparent that the immense competition in fast foods has been marked by many existing and upcoming small fast food companies who scrabbles against each other in order to intensify their customer base. This further leads to competition becoming eminent to an extent of pushing the McDonald Company into tightening it market management. BCG Matrix The Boston Consulting Group is a tool that has been utilised in the evaluation of company‘s position in terms of its products range. It enhances company’s focus on its products and/or services with regard to making decisions to keep, those to let go and those that should be invested further into (Saloner et al., 2006). Moreover, the Boston Consulting Group matrix is the most effective way of screening the company’s available opportunities, and also helps to think about the best location to allocate resources in the bid to maximise profit. This process of bring out the functions of this matrix have two parameter that are put into consideration. They include market share and market growth (Shimpss, 2008). Total market percentage denotes market share being serviced by a company measured in the terms of revenue or unit volume. In essence the increase in market share rises in the proportion of the market in, which a company controls (Tallman, 2007). Boston matrix assumes that if a company under consideration enjoys a high market share then it is high likely that it will make more profit. This strategy has been developed on the argument that the company to have an achievable market management, it must be in the market for a long time and be able to learn how to be profitable, thus enjoying the scales of economies (Wong, 2010). Conclusion Marketing entails all the strategies which are geared at creating and maintaining relationships with regard to customers and satisfying their needs. The way in which a company manages it marketing strategies determine the competitive strength in the industry The main element is the market selection and the product planning, which basically involves the product line and the product offering of the target market. A company can either choose a single market strategy or multi market strategy. Additionally, a company should ensure that it brand equity is well set for the market especially in giving the customers a peace of mind in after they have purchased products or services, also known as the after sales services. Moreover, the Boston Consulting Group should be ensure practised to ensure that there is evaluation of company‘s position in terms of its products range. A successful company should put into practise Michael porter’s five forces of competitive position model offer a perspective analysis of the competitive edge of a company Bibliography: Boone, L and Kurtz, D. 2010. Contemporary business. New York. Routledge. Green, M. and Keegan, W., 2012. Global marketing. New York: Prentice Hall. Oxford: Haberberg, A and Rieple, A., 2008. Strategic management: theory and application. Oxford; New York: Oxford University Press. Hartline, M and Ferrell, O., 2010. Marketing strategy. London. Springer. 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Wong, K., 2010. Approved marketing plans for new products and services. New York: Sharpe. Read More