Marketing Management
Strategic marketing management is essential to successful business growth. Marketing management involves the processes of planning, analysis, and coordinating control programs. An idea is conceived, priced, promoted and distributed through marketing management. The first step in marketing management is to set smart objectives for the business. Development of strategies to achieve these objectives then follows. The company then formulates tactics of product, price and place to implement the outlined procedures. Proper marketing management helps a business implement its strategies and achieve its desired outputs (Keller and Kotler, 2009). Companies can penetrate their target markets and immerse financial benefits from them. Marketing management helps a business achieve long term goals through short term achievements. The long term goals can include obtaining large market shares, establishing a brand presence and customer satisfaction and retention. Most successful have strategic marketing management and action plans.
Marketing action plans arising from the set objectives and goals. Investment decisions relate to specified targets. The owner of the restaurant has specific goals that he hopes to achieve by investing in the brewpub. The viability of his investment project lies in the likelihood of achieving his goals. The brewpub has taken strategic management to ensure its success in line with the investment. Strategic management has been carried out through set action plans. One action plan is added marketing costs for social media and website marketing (Keller and Kotler, 2009, p. 42). Social media and internet marketing are effective strategies to reach a high number of people. Technological advancements have allowed most people access to computers and smartphones, which will enable them to search for products and services online. The brewpub has targeted such customers by establishing its brand presence online.
The brewpub is viable for investment because it has a well-established brand presence. Through social media marketing and the company website, the brewpub has penetrated its target market. The brewpub can hence advertise its products online, and interested customers can make purchases. Through strategic marketing management, the business can establish a broad market allowing it to reach markets without being physically there (Keller and Kotler, 2009, p. 8-9). The widespread network easily attracts investors looking to gain financial benefits. Social media and the company website have hence been managed to engage the brewpub and its customers more deeply. The brewpub can alert customers when there are new products or promotions and also get feedback from them. Feedback allows the business to identify areas of improvement and explore new opportunities. For instance, the company can learn what drinks customers prefer to others.
Marketing management has allowed the business to meet its demand requirements. Demand s successfully met when excess demand not huge compared to the total market. The brewpub adjusted its numbers so that the excess demand is just 10% of the aggregate demand. The adjustment allows the business to meet at least 90% of its demand obligations. Continued marketing management ensures that the business’s supply does not go to wastes not wasted. Excess demand constitutes the demand that is not met by supply (Mullins and Walker, 2013, p. 282-305). Having excess demand indicates that the business has not fully met all the customers’ needs. The investment would allow brewpub to increase its production capability. Through increased capacity, the company will be able to meet its demand obligations. Eventually, the more the number of customers served, the more the business grows successfully. Marketing management will hence help create a balance between supply and demand.
Budgeting is an essential aspect of marketing management. 10% portion of the revenue is allocated towards marketing costs. The company has focused more on social media and website marketing which have proven beneficial. However, the brewpub has also assigned a considerable amount of its budget towards local advertising and trade shows. The two additional strategies also help gain more traffic for their social media and website platforms. The variable costs have also been changed, which constitutes a budgeting aspect (Wood, 2003). Such a change allows the business to free up resources towards marketing and improving supply chain management. Through a developed supply chain, it is easier to balance both supply and demand obligations. The product portfolio can also is altered to meet seasonal requirements through adjusted variable costs.
The seasonal demands of a business are continually varying as can be identified during marketing management. For example, there are certain months where the brewpub is selling a type of drink in high volumes more than others. The business has therefore studied its high and low seasons for specific drinks by adjusting their per cent monthly demand. The adjustment allows the brewpub to manufacture more beers as and when they are required. As a result, the excess demand for beers when they are in their peak season is met. Besides, the possibility of having an excess supply of beers not in season will be eliminated. Strategic marketing management, therefore, allows the business to meet its objectives effectively (Mullins and Walker, 2013, p.17-18). The excess demand reduces, and there is a balance between supply and demand. The business is also able to establish the right brand presence and customer satisfaction.
References
Kotler P, Keller K, (2009). Marketing Management, 13e Pearson Prentice Hall, pp. 8-9.
Wood, M. (2003). The Marketing Plan: A Handbook, Prentice-Hall.
Mullins J., Walker O., Marketing Management, McGraw Hill, ©2013, pp. 4-42.