Connect with us

Management

Marketing Management: All You Need to Know

Published

on

Marketing Management

The major goals of every business enterprise are to provide reliable products that satisfy the desires of its customers and, thereby, generating high profits. However, you must understand the place of Marketing Management as a key managerial function in achieving these major organizational goals. In this article, I will walk you through the scope, objectives, features, and functions of Marketing Management. Knowing these, as a business owner, you’ll need to set up a Marketing Management department for your enterprise.

Marketing Management:

Marketing management is the process of decision making, planning, and controlling the marketing aspect of a business enterprise. The study of marketing management leads to a better evaluation of marketing activity in terms of its performance in meeting consumer needs. This process of marketing management takes place within the marketing system, which involves the manufacturing, wholesaling, and retailing sectors. That is, marketing management can be done in each of these sectors.
Furthermore, marketing management deals with organizing and implementing marketing programs, policies, strategies, and tactics to create and satisfy the demand for the company’s customers. By so doing, they generate growing profits in a competitive market as they attract customers consistently to their products.

Scope of Marketing Management:

Having understood the concept of marketing management, let’s consider the depth it covers.

  • Marketing Research:


This has to do with discovering what your prospective customers want. Marketing management analyses customers’ reactions to product quality, pricing, promotion, and channels of sales/distribution. Moreover, it considers the marketing strategies of other competitive businesses in the same economy while developing its own.

  • Determination of Objectives:

This is another scope of Marketing Management that involves setting marketing goals and objectives. The objectives cover new product production, old product improvement, attracting and retaining customers, etc.

  • Planning and Control of Marketing Activities:


This involves setting and following organized procedures to meet marketing objectives. Hence, marketing management takes care of planning for marketing strategies, product diversification, advertisement, promotional activities, etc. which are parts of marketing activities.
Also, Marketing Management monitors all marketing activities. This scope of marketing evaluates the success of marketing plans and execution.

  • Product Planning and Development:

As the business progresses, there arises the need for new product manufacturing, as well as old product improvement and diversification, hence, the need for Marketing management. It also decides the product quantity to a target market at a given time.

  • Pricing of Product:

The market value of products is an essential scope. The price is a function of the following: production cost, distribution of products, trending price in the market, customers’ perception of the products, and their willingness to make purchases.

Read Also: Penetration Pricing Policy

  • Promotion:


Marketing management controls the means of providing necessary information about products to the customers. Furthermore, it secures new customers and retains existing ones by informing them about product improvement and new product emergence. Marketing Management develops strategies, as well as employs good tools, for sales promotion.

  • Distribution:

Distribution means engaging reliable channels to make products available to the customers and at the right time. Marketing management chooses the channels for distributing products, which depend on the production cost and nature of products.

The Objective of Marketing Management:

  • Creation of Demand:

Marketing managers find out the desires of the customers and provide them with the products to satisfy them. With these products available to the customers, their demand for the products increases.

  • Customer Satisfaction:

The satisfaction of customers’ needs is more important to the marketing managers than selling the goods. Consequently, customer desires influence the products made available to them.

  • Increase in Market Share:

The Market Share of a business firm is simply the ratio of its sales to the overall sales made in a specific market. All business owners want to increase the market share of their business. Due to this, Marketing managers bear the responsibility of maximizing the business’s market shares. To achieve this, they engage innovative ideas in production, packaging, advertisement, promotion, and distribution of products.

  • Generation of Profits:

A business enterprise loses its worth and essence when it doesn’t make profits from its sales. For this reason, the Marketing Management department plays a vital role in sales, so that the business can make high profits and maintain its growth.

  • Creation of Good Repute:

The people’s perception of a business enterprise concerns the marketing managers. Hence, by providing want-satisfying products to the people, marketing managers positively influence their perception of the enterprise.

  • Creating Customers:

Every thriving business has target customers, whom they satisfy with their products. Moreover, the business creates more customers by providing them with new products according to their tastes. For this reason, the marketing management department explores and discovers the needs of customers and ensure they get them.

Marketing Management Functions:

  • Planning Marketing Activities:

Marketing management develops effective strategies that cover the processes of all marketing activities. It plans and coordinates the processes of product manufacturing/improvement, pricing, distribution, etc. of an enterprise.

  • Market Assessment for Opportunities:

Market conditions change with time, and often present challenges and opportunities for growing businesses to identify and harness. Through its frequent market assessment, the department looks out for those opportunities and draws plans to leverage them.

  • Organizing Personnel Involved in Marketing:

In line with the marketing goals of an organization, marketing management monitors the duties of people involved in marketing processes. It ensures that the right persons handle their respective duties.

  • Directing and Motivating Employees:

The employees in an enterprise need directives from their superiors to accurately perform their duties. Hence, good leadership skill is a necessity for marketing goal achievements. Additionally, good leadership consistently motivates and encourages employees to commit more to better service for enterprises’ goodness. Good managers understand business ethics and, hence, treat their subordinates well.

  • Evaluating and Controlling Marketing Efforts:

Marketing Management occasionally evaluates the performance/effectiveness of efforts put into sales/promotional processes. When it identifies problems. It solves it and implements better goal-achieving techniques.

Features of Marketing Management:

  • Focus on customer needs:

Study and understand what the needs of the consumer are, this knowledge will influence other product-related activities, for instance, product designing, pricing, etc.

  • Providing consumer satisfaction:

Design the appropriate product for consumer satisfaction. Organizations grow as they satisfy the need of customers.

  • Integrated marketing management:

This involves joining all the managerial functions in an organization together, in other to provide customer satisfaction.

  • Achieving Organizational Goals:

Organizational goals involve growth, increasing market share, high profit, or Return On Investment (ROI). Thus, by satisfying the needs of the consumers, they achieve these goals.

  • Innovation:

Innovation in marketing concepts has to do with exploring and engaging new and unusual methods in other to understand the consumers. It is also useful in designing appropriate products for the consumers’ needs.

READ ALSO: Marketing Mix

Victor Chizaram Elendu is a graduate of Chemical Engineering from the Federal University of Technology, Owerri, Imo State, Nigeria. In addition to his engineering pursuit, he has an unwavering passion for business and entrepreneurship. He takes several business courses at various levels. He believes that youths can do well when properly informed in the right direction to tread. Hence, he writes. Learn more from Victor's posts on this site.

Advertisement
1 Comment

1 Comment

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    Business

    Family Business Succession Planning: Creation, Template, Model, and Sustainability

    Published

    on

    Family Business Succession Planning

    Introduction


    Many family-owned businesses don’t make it past the second generation, and only a few get to the third. The primary reason is the lack of family business succession planning. 

    If you own a family business, you may be wondering how to prepare the next generation to take over. However, in this article, we’ll share insights about family business succession planning. Additionally, you’ll learn how to create a plan that’ll be sustainable in your absence. 

    Succession in most family-owned businesses operates around the assumption that the next generation can successfully run the company as the predecessor did. However, this idea fails to account for the fact that each new generation has different leadership skills, abilities, and interests. 


    Also, there’s the factor of the business context that shifts or evolves, which businesses fail to consider. Here is where family business succession planning becomes relevant. 

    What is Family Business Succession Planning?

    Family business succession planning is a process where a family-owned business devises strategies to hand over the reins to a next-generation family member. A succession plan is why multi-generational family businesses have a firm staying power. From one generation to another, they keep upholding the organization’s vision and founding principles. 


    Therefore, heads of family businesses need to start planning for their successor as soon as possible. The reason is that it may take years to groom a strong and capable leader. Also, the more time business owners spend executing a succession plan, the smoother the transitioning process will be.

    Read Also: Corporate Level Strategy – Definition and Types

    The Creation of a Family Business Succession Plan

    Michael Evans of the Newport Board Group recommends five significant steps that family-owned businesses should follow, to create a viable succession plan. These steps also comprise several mini-steps, and they include:

    Establish Goals and Objectives

    Leaders of family businesses should first identify clearly the visions, goals, and objectives of the organization. This step also addresses the importance of continued family involvement in leadership and the option of bringing in external professional management. 


    Additionally, the management team should consider retirement goals and the cash flow needs of exiting family members. Likewise, they should take into account the personal and business goals for the incoming generation.

    Establish a Decision-making Process

    This step identifies and establishes, in a written document, the process for involving family members in the firm’s decision making. It also lays out procedures for resolving disputes.

    Establish the Succession Plan

    In creating the succession plan, management should identify successors- both managers of the company and owners of the business. They should also define each family member’s role, either active or non-active, and any additional support the successors may require.

    Create a Business and Owner Estate Plan

    This phase addresses any tax implications to the owner or business upon transfer of ownership, death, or divorce. It also reviews the owner’s estate planning strategies to minimize taxes and avoid delays in stock transfer. Furthermore, it should create a buy or sell agreement that is fair, reflective of the business’ value, and tax strategic.

    Create a Transition Plan

    The business owner should consider the options of an outright purchase versus a gift/inheritance, or the possibility of combining both options. This step also considers external financing or self-financing from the retiring owners in case of a sale. Finally, the business owners should establish a timeline for implementing the succession plan.

    Family Business Succession Planning Template

    Family business succession planning may seem difficult to carry out. Therefore, most family-led organizations employ the help of professionals like lawyers and accountants when crafting a plan. 

    However, if you’d like an easy way to go through the process yourself, you can use a planning template. There are several of these templates online, either for free or a small fee. A template makes the planning process a breeze, and also gives the succession plan a professional look. 

    Family Business Succession Planning Model

    A succession planning model helps illustrate the family’s interaction on management and ownership of the family business. A simplified model, called the Three Circle Model, consists of the ownership circle, the management circle, and the family circle. 

    Three circle model of family business succesion planning

    These circles represent the interaction/impact that each component has on the family and the management of the business. It also illustrates the relationship between each element and the other. Furthermore, it shows how they meet in the middle, indicating a mix of family, ownership, and management at some point in the business.

    From the circle, it’s easy to see how the three components’ interaction can create challenges and provide unique opportunities. Therefore, the family business’s ability to transfer ownership to the next generation depends on the management of the family component.

    Read Also: Concept of Management in Business

    Sustainability in Family Business Succession Planning

    If you run a family business, you’ll want to give your company the best chance at a transition. Most importantly, you’ll want to ensure that the business thrives for several generations after your exit. To ensure the sustainability of a succession plan, consider these tips.

    Plan Early

    Sustaining a succession plan begins with the timing of crafting the plan. As a rule of thumb, you should prepare a succession plan at least ten years ahead. The earlier you plan, the better your chance to mentor the successor and the smoother the transition process.

    Involve Family Members

    The best way to avoid discord among family members is to involve them in the planning process. It also helps you identify which family member wants to be involved in the business or intends to pursue other careers. 

    Be Realistic About Picking a Successor

    While it may be your desire to leave the business to your first-born, he/she may not have the necessary managerial skills. So, it’s best to do an honest assessment of which family member is capable before picking a successor. 

    Train Your Successor

    A succession plan can’t be sustainable without training the next generation to take over the business. Consider dedicating some years to work with your successor while teaching him/her the required business skills.

    The Bottom Line

    Irrespective of how successful a family-owned business becomes, leadership roles must change someday. This event may be voluntary, as in the case of retirement or involuntary, such as death or incapacitation. However, a succession plan ensures that the business will continuously operate with no disruptions and minimize tax implications for all parties. 

    Business leaders should start building their exit strategy right into their business plan. Firstly, long-term succession planning helps businesses determine how well the successor can execute management tasks and gives them time to learn. Lastly, it helps to facilitate an orderly transitioning of management and ownership.

    Continue Reading

    Management

    MANAGING COST: 5 best keys for cost management

    Published

    on

    Managing cost

    What Is Cost Management?


    Cost is an amount that has to be paid or spent to buy or obtain something. Managing cost or cost management means to adjust certain conditions that cause an increase or decrease in cost. In production, research, retail and Accounting a cost is the value of money that has been used up to produce something or deliver a service and hence is not available for use anymore.

    In business, the cost may be acquired, which means the cost of money spent on acquiring something. In accounting, cost is defined as the cash amount or cash equivalent given up for an asset.
    All these definitions of cost have been given because no matter the variations, they are still similar and also apply in every part of a business. In business, cost has become the most important factor, the information on cost can greatly affect the existence of the business. Cost is a major determinant in business activities and operations.

    Before setting up a business, you must ascertain the start-up cost and the cost of running the business operations. Cost information is one of the most important information any business entity should pay very close attention to.


    Having considered what cost is, managing cost is key in any business decision and it makes a substantial part of strategic planning and decision making. Cost management focuses on cost reduction and continuous improvement and change rather than cost containment. Cost management consist of those actions that are taken by managers to reduce cost, some of which are prioritised on the basis of information extracted from the accounting system.
    It is important that you know all the approaches that can be used to reduce cost even if these methods do not rely on the accounting information. You should also note that, although cost management seeks to reduce cost, it should not be at the expense of customer satisfaction. Ideally, the aim is to take action that will both reduce costs and enhance customer satisfaction.

    Ways to effective cost management

    To properly manage cost, we have to first identify cost objects and cost centre. Also, cost estimation should be done with the utmost expertise so that the actual cost will be generated and properly allotted to the cost centres and cost objects from which they were incurred.


    The way cost is allocated, should be done with great skill, traditional or arbitrary style should be avoided, rather Activity-Based Costing(ABC) should be used, so overheads can be properly allotted.

    Here are some good practises towards managing cost in order to increase profit.

    1. IDENTIFY COST OBJECTS AND COST CENTRES

    Cost objects are activities for which separate measurement of cost is desired e.g cost of products, cost of service, cost of operating a particular department or sales territory, while cost centres are described as locations where overhead cost are initially assigned, they consist of departments in an organisation like sales, marketing and the likes. Once these have been identified, you can objectively sort out ways of reducing such costs.

    2. PROPER ALLOCATION OF COST

    Since you have been able to identify the cost objects and centres, cost should be properly assigned to where there were incurred. If we say the sales department generated the most cost, such should be identified and properly assigned to the sales department rather than spreading it to other departments which did not contribute to the cost. Once the cost has been properly assigned and allotted, it can thereon be worked on and reduced in order to increase profitability.

    3. MAINTAIN A PROPER COST MANAGEMENT DATABASE


    A database of all the cost of the business should be maintained, with cost appropriately coded and classified, so that relevant cost information can be extracted to meet each requirement. A suitable coding system enables cost accumulated by the required cost objects(such as product or service, departments, distribution channels, etc) and also to be classified by appropriate categories.

    Read More: Promotion Strategy: All you need to know

    Typical cost classification within the database such as (direct material, direct labour and overhead) and by cost behaviour (fixed and variable). Maintaining a cost database is key because it could be used for future decision making. In addition, the database should be reviewed and updated at periodic intervals and kept up to date.

    4. COST REDUCTION TECHNIQUES SHOULD BE IDENTIFIED

    There are certain workable techniques that can be applied to properly reduce cost. These techniques identify how cost is incurred, it shows what could be reduced and how best to reduce it, in order to arrive at the least cost possible without compromising quality. Some of the techniques that can be used are;

    A. LIFE CYCLE COSTING, it estimates the cost of a product over its entire life cycle from introduction to exit from the market, in order to determine whether the profit earned during manufacturing phase will cover the cost incurred during the pre and post-manufacturing stages.

    B. TARGET COSTING; this includes determining the target price which customers will be willing to pay for the product, deduct a profit margin from the target price to determine the target cost, estimate the actual cost of the product and if actual cost exceeds the target cost, investigate ways of driving down the actual cost to the target cost.

    Read More: Low cost Marketing strategy

    C. TEAR-DOWN ANALYSIS; Involves examining a competitor’s product in order to identify opportunities for product improvement and /or cost reduction. The competitor’s product is dismantled to identify its functionality and design and to provide insight into the processes that are used and the cost to make the product. The aim is to benchmark provisional product design with the design of competitors’ and to incorporate any observed relative advantages of the competitor’s approach to product design.

    D. VALUE RE-ENGINEERING; Is an examination of the factors affecting the cost of a product or service in order to devise means of achieving the specified purpose at the required standard of quality and reliability at the target cost. The essence of value re-engineering is to achieve the assigned target cost by, identifying improved product designs that reduce product’s cost without sacrificing functionality and or eliminating unnecessary functions that increase the product’s cost and for which customers are not prepared to pay extra.

    Read Also: Market Segmentation: All you need to know with examples

    In conclusion, when managing cost we should have in mind that cost can never be eliminated totally but if properly managed, the certain cost could be avoided, also cost details should be given huge attention because, cost determines profit and prices, so cost should be given proper credence in the analysis. Expertise should be used so as to get the required benefits. Certain cost procedures might seem costly to operate but in the long run, it saves a lot of Costs too. Also, a very detailed database of cost should be maintained, updated and reviewed so it can provide necessary information when needed for the particular purpose. Finally, cost should not be reduced to the point where quality is now compromised, because customers want the best quality at the cheapest price possible.

    Continue Reading

    Management

    Laundry Equipment: 12 Must Have Equipments to start with

    Published

    on

    Laundry Equipment: 12 Must Have Equipments to start with

    In obsolete times, There was almost nothing like laundry equipments.


    Laundry happens by the riverside or in bowls.

    Laundry was so stressful and time consuming then.

    For instance, the ancient laundry came with stamping of feet on the clothes especially clothes like Jeans.


    Lines and grasses did a good job in airing and drying of clothes after washing.

    However, Technology has made everything easier, hence, laundry equipments was brought into existence.


    “Are you in the class of people who do not enjoy doing laundry especially when you don’t have the right laundry equipments and tools?”.

    Then, this article is for you.

    In this Article, we have been able to give you a clear and comprehensible meaning of laundry processes and laundry equipments, Steps to an easy laundry process and 10 laundry equipments to start with.

    Laundry


    Laundry simply means the act of washing of clothes or textile materials.

    Moreover, it is also said to be a place where clothings or textile materials are washed.

    There are two types of laundry;

    1. The in-house laundry.

    2. The commercial laundry.

    Laundry Processes.

    Laundry processes are the step by step procedure to follow in the act of washing of clothes or textile materials.

    The laundry process is defined as the act of;

    1. Soaking:

    This is done by adding water to the bucket, ensuring that the fabric is well covered by the water, adding the necessary detergents or stain remover and stir it till the stain dissolves and allow to rest for 15-25 minutes before washing.

    2. Washing:

    washing is a popular method of cleaning a cloth, usually with water, soap or detergent.

    Furthermore, the time of washing varies between the extent of dirts in the clothings.

    3. Rinsing:

    This is very similar to washing, usually with cold water.
    The difference is that it dilutes the dirt and the detergent.

    4. Drying:

    Drying is the act of removing moisture from a clothes or textiles, usually after washing.

    5. Ironing:

    This is the act of using a heated iron to remove wrinkles and aids in the killing of germs through heat.

    6. Folding:

    This is the act of bending clothes to cover part of itself.

    Most importantly, Before taking in the neat clothes , you should fold them neatly.

    Laundry Equipments.

    Laundry Equipment are tools and machineries used in laundry services.

    Commercial laundry equipments are used in professional textile laundry and used by all companies that are offering textile laundry and management services.

    Steps To An Easy Laundry Process.

    1. Sort the clothes.

    2. Choose a Detergent preferably an all-purpose detergent.

    3. Select a Water Temperature and Cycle on the washing machine.

    4. Check everything to ensure it was done properly

    5.Load the Washing machine with the clothes and wash

    6.Unload the Washing machine

    7. Load the Dryer.

    8. Unload the dryer and Air properly.

    12 Essential Laundry Equipments To Start With.

    1. Washing Machine.

    The washing machine is the most important laundry equipment in the laundry room.

    Most importantly, it is advised to go for a machine that has the capacity to handle the kind of laundry you intend to be doing and still fit in comfortably in your laundry room.

    Constant cleaning of the washing machine is necessary for the machine last long.

    This applies also to all equipments.

    2. Dryer/ Drying Machine.

    Drying machine is an equipment that is more convenient and less stressful to use the dryer than having to hang the cloth outside.

    However, you should also check the dryer often to ensure that ther e are no debris left inside.

    3. Clothes Drying Rack.

    Ths crying rack is an essential laundry equipment for airing clothes.

    Some clothings like towel don’t do so well in the dryer hence drying rack is needed.
    Its is convenient too.

    4. Iron.

    The iron is best stored in the laundry room.
    Ironing is done to remove creases from clothes.

    Also, the heat from the iron helps to kill germs and prevent spread of disease.

    Meanwhile, clothes that stayed in the dryer for long should NOT be ironed to prevent wearing off of the cloth.

    5. Ironing Board.

    There are different kinds of ironing boards but the best kind of this laundry equipment is the Fold-out ironing board that can be removed when not in use.

    Consequently, This helps to conserve space in the room.

    6. Sink.

    The presence of sink in a laundry room helps you to easily handle stains in clothes, hand-wash light clothes and keep everywhere tidy.

    7. Detergents.

    Every laundry room requires a good detergent.
    It should be budget friendly too.

    Meanwhile, An all-purpose detergent is a necessary in the laundry room.

    8. Stain Removers.

    It is however important to have these stain Removers handy because clothes get stained frequently.

    And again, discover what works for you and your laundry.

    9. Baking soda.

    This plays a great role in removing odours and stains from clothes.
    It’s a type of cleaner.

    Also, baking soda should be handy and always kept in the laundry room.

    10. Laundry Additives.

    Additives like bleach, vinegar, etc can help in making washing very easy.

    They play a great role in laundry services.

    11. Sewing kit.

    This is the kit you store materials for mending or stitching torn clothes.

    However, The stitchings are to be done during sorting or before washing.

    Storing of some products here are okay too.

    12. Waste Bin.

    All laundry room needs a waste bin for little wastes from the laundry services.

    Conclusively, Ensure there is a dry towel always on the floor to prevent slipping and falling.

    Continue Reading

    Trending


    %d bloggers like this: