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CHAPTER 7
MARKETING MANAGEMENT
INTRODUCTION
Basically, humans as consumers buy goods and services to satisfy their wants and needs in life. This means that consumers do not only buy the product or goods, but what they buy are the benefits or uses of the product. Human desires and needs are unlimited, but the resources they have are limited. Therefore, in order to obtain an item to fulfill these desires and needs, a person will be willing to exchange or sacrifice the object or items they own, such as money or other objects.
There is a fundamental difference between the desires and needs of human life. Wants are human needs that are shaped by a person's culture and personality. Meanwhile, needs are instinctive, namely a statement of a feeling of lack of something, for example a person who feels hungry will look for things that can be eaten.
This is in accordance with the opinion of Kotler and Armstrong (2001). There are several types of factors that influence why someone buys a particular product to fulfill their needs and desires. Apart from product type, economic factors, psychological factors, sociological and anthropological or cultural factors also determine a person's purchasing behavior.
UNDERSTANDING MARKETING One of the definitions of marketing in a broad sense is as stated by Philip Kotler as follows: Marketing is a social and managerial process in which individuals and groups obtain their needs and desires by creating and offering products that are of value to each other.
In connection with the definition of marketing that has been stated above, it seems necessary to examine several core/basic concepts of marketing. That is :
- Needs , the main concept that underlies marketing is human needs. A need is a condition that is felt to not exist within a person. Humans have complex and multilevel needs as stated by Abraham Maslow, namely; physical needs, security and safety, social, esteem, and self-actualization needs. Human behavior in meeting needs is determined by which level of need is most urgent. If one level of need has been met then it will cease to be a motivator factor.
- Wants are human needs that are determined by culture and individual personality. As a result of the diverse cultural patterns, a person's desires will be influenced by their socio- cultural environment. Basic food needs in Indonesia will of course be different from the basic needs of Americans. The needs of rural communities are different from the needs of urban communities. These differences in wholeness give rise to differences in the desires of each individual and group of society. The desires can be explained and the objects that will fulfill them. Human desires are unlimited, while the resources to fulfill these desires are limited. The problem is how humans overcome or adjust to unwanted desires limited by the available resources.
- Demand , demand is a desire supported by purchasing power. If it is not supported by purchasing power, desires will remain just wishful thinking. Human desires, which are unlimited, cannot all be translated into requests, therefore they must adapt to the power and resources available. For certain products that are elastic, ultimately the amount of demand will influence the price of a product offered.
- Products , in general, products are differentiated into products in the form of goods (tangible) and services (intangible), and other means that can fulfill human needs and desires. This word product is also often referred to as satisfier, resource, and offer. Consumers have a tendency to choose products that have the same benefits as similar products but at a cheaper price or the same price but better quality.
- Value and Satisfaction , the concept that guides consumers to choose which product they will choose among the various products offered is (customer) value. Consumers will generally choose a product that provides the greatest benefits at minimal or affordable
costs. For example, if we want to buy a car, of course we will consider various aspects such as comfort, safety, fuel consumption, motor vehicle tax, and so on. Each of these aspects has its own value. The total or amount and values minus the costs incurred by the customer (such as monetary, time, energy and psychological costs) is the value that we will compare with other similar products. So customer value means the value delivered to the customer (customer delivered value), namely the difference between the total customer value (total customer value) and the total customer cost (total customer cost). Consumer satisfaction of a product depends on the product's performance and consumer expectations. If the performance of a product that has been purchased is below expectations, consumers will certainly feel dissatisfied, if the product performance is the same as expectations, consumers will certainly feel satisfied, if the performance is above expectations, consumers will be very satisfied. Consumer expectations are shaped by past purchasing experiences, information and friends, information and information, and information and other sources.
- Transactions , transactions are trades of value between two parties. Transactions are units of measure and exchange. One form of unit of measurement is money, but not all transactions involve money. Sometimes transactions occur between goods and goods (for example between IPTN airplanes and Proton Saga and Malaysian sedans), between goods and services (for example the services of a doctor in a rural area in exchange for a chicken), or between services and services ( for example, the services of a consultant are exchanged for the health examination services of a doctor). Such transactions are called Barter Transactions.
- Relationships , good marketing works not only to exchange products, but in the long term is able to build relationships with customers, distributors, dealers or suppliers. Nowadays marketing tends to change from efforts to maximize profits on each individual transaction to maximizing mutually beneficial relationships with customers or other parties. One of the concrete efforts and concepts for this is the establishment of a public relations department in government and private institutions
- Market , the market consists of all potential customers who have certain needs or desires and are willing and able to participate in exchanges to fulfill those needs or desires. The market is the result and series of activities/processes called marketing. Based on the dominance of power held by the parties involved, markets can be grouped into buyers' markets and sellers' markets. Based on intended use products, markets can be grouped into consumer markets and organizational markets (industrial markets, government markets, and reseller markets)
- Marketing is a social or managerial process by which individuals and groups obtain their needs and desires by creating product offerings of value to each other. Marketing is not only carried out by business organizations but also non-business organizations, such as government agencies or social institutions, or consumer organizations.
Meanwhile, from a modern marketing perspective There are 6 (six) very important
marketing concepts, namely:
1. Production Concept , businesses that use the production concept generally focus
too narrowly on their own production activities. Because according to this
concept, consumers will buy products that have been produced by the company
and have been sold to the market.
2. Product Concept , as the name of this concept suggests , the company will give
importance to the features or quality of the product. The company thinks about
long-term business development by making products that only match the best
quality standards, which are provided to consumers.
If this happens, it means that the marketing management that was created was successful.
Seeing this understanding, management is very necessary , because of marketing
activities Nor will it be optimal as expected if it is not managed by good marketing management. Because it is impossible for a company to sell a single product or service if no consumers know about the product or service being sold.
The management actor in the marketing sector is a marketing manager who will study the financing structure, sources of profit, resources and competencies. Other things that marketing managers cannot fail to study are product differentiation and competitive position, level of vertical integration, history of response to industry developments and other factors that are still related to competitors.
MARKETING MANAGEMENT CONCEPTS
The marketing management concept is defined asa business philosophy in which the
satisfaction of consumer needs is an economic and social condition for the continuity of the
company's defense. The goal is to provide satisfaction with what consumers want (Stanton,
In the modern marketing concept, this means that finding out about consumers and making products that suit their needs is quite difficult. So it is very important for sellers to gain knowledge about the things consumers want and how these things can be provided to them. Only then, the company can survive in the market and earn profits.
MARKETING MANAGEMENT FUNCTIONS A business or company that is developing must understand good marketing management, especially in the current era of globalization where many competitors are competing to market their products, not just across regions , but even overseas.
Marketing management functions include analyzing activities, namely analysis carried out to understand the market and its marketing environment so that greater company profits can be obtained. Which means that companies are obliged to carry out marketing management and make it an important strategy to achieve company goals.
There are several marketing management functions , namely :
1. Market analysis Not all companies have a formal marketing and sales department, but every company definitely has and implements various important elements contained in marketing and sales activities whose main aim is to make new and old consumers interested in using the products and facilities offered continuously. continuously. To find out opportunities and threats as well as consumer needs and desires, there are several things that must be considered in the process of market analysis activities, namely: analysis of opportunities and threats, as well as analysis of consumer behavior. 2. Market segmentation Market segmentation is the activity of dividing a market into different groups, where each group has almost the same characteristics. By segmenting the market, marketing activities can be carried out more focused and marketing resources can be used more effectively and efficiently. Market segmentation must meet the following requirements: can be measured (measurable) in terms of size and breadth as well as the purchasing
power of the market segment, achievable (accessible) so that it can be served effectively,
substantial so that it can be profitable if served, and can be implemented (actionable)
and all programs which has been designed to attract and serve market segmentation can be effective and efficient.
3. Determine the target market Determining the target market means assessing the activity of each section and then selecting one or more market segments to serve. Activities to determine the target market include: evaluation of market sections (size and growth of sections such as data on
customer age , income, gender of each segment), attractive structures in terms of profitability, and targets and resources owned.
4. Market placement New companies must be able to identify the positions of existing competitors before determining their own placement. Kotler (1992) explains that there are two options, namely: a. Position yourself next to one of your existing competitors and fight for a share of the market. Leaders can do this if they feel the company can make a superior product, has a wide market, and has more resources. b. Developing a product that today has never been offered on the market. Before making this decision, management must be sure that technically a product can be made quickly, economically a superior product can be made at the planned price level, and that the number of consumers who like the product is sufficient. 5. Marketing planning Marketing activities carried out by a company are important to be coordinated and directed to achieve company goals in general and marketing goals in particular. The marketing coordination and direction tool is marketing planning. Regardless of the type of management style adopted by a company, in planning it must carry out the following four stages: a. Determine the company mission b. Recognize the company's strategic business units, analyze and evaluate existing business portfolios c. Recognize the new business arena that will be entered.
MARKETING MANAGEMENT OBJECTIVES In general, there are 7 Marketing Management Objectives, including:
1. Building Demand Sales can only occur if there is demand from consumers. To build this demand, various marketing efforts are needed to arouse consumer interest and curiosity about the goods. 2. Building Consumer Satisfaction It is not enough just to get demand from consumers to achieve company targets. The next goal is to build consumer satisfaction by understanding consumer needs/desires, and knowing how the product can fulfill these needs/desires. 3. Get Market Share The next marketing management goal is to get positive progress from product market share. The market is like a cake, and each piece of cake is an illustration of market share. All companies hope for an increase and expansion of market share or sales. Although sometimes the target is only to maintain the market share that has been obtained. 4. Benefit The ultimate target of all companies is to make a profit. And each company sets a different nominal profit as a measure of its success. Achieving this nominal profit is one of the goals of marketing management. How companies can sell with optimal margin values can produce maximum sales levels. 5. Get Imaging According to Expectations Apart from making a profit, the goal is to get an image that meets expectations. A good image of the product and company will have a positive effect on the company, both in terms of consumers, partners, investors and the workforce. 6. Maintaining Business Continuity Marketing is the company's spearhead for achieving sales targets, satisfaction and profit targets. That is the reason why company continuity is also part of marketing management objectives. 7. Satisfying Customers It's not enough to attract new customers. Businesses need to develop and distribute products and services that meet customer expectations to ensure their satisfaction. If customers are dissatisfied, the company will not be able to generate revenue to cover costs and get a reasonable return on investment. Happy customers don't just mean buying a product because it meets the customer's needs. They also provide
right digital media will target the right target. This method of selecting media is not limited to demographics (gender, age , location, job, etc.), but needs to be seen from
lifestyle,gadget usage habits, social environment, and others. Furthermore, a person's
references to using media can be influenced by various parties, such as family members, co-workers, and many more.
4. Collaboration This may sound strange, but if you want to survive amidst business competition in the digital era, you must be able to collaborate. This means that a marketer must be able to
find cooperationpartners who can strengthen the position of their product. However,
be careful, don't just choosea partner because the risk could destroy the reputation of
the product that you have worked so hard to build. A good collaboration is a collaboration between two products that complement each other. Avoid collaborating
with parties that make substitute or even similar products. Because if the quality of a
partner's product is better, then there is a possibility that consumers will move to them.
An example of a good collaboration is collaboration between white bread products and margarine or jam. Both are products that complement each other if consumed together. Another form of collaboration is marketing motorbikes with oil, and there are many other examples. The core marketing concepts are important points to remember, especially by those working in marketing. However, if someone has occupied the managerial level, then whatever unit or field they are in, they must understand this concept too. Because it is impossible for a unit to be separated from its responsibility from the marketing unit in satisfying customers. A successful marketing activity is when each unit works together to achieve the same goal.
Bibliography of this Chapter
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