The goal of any business is to make a profit. And if advertising is costing more money than it brings in, perhaps the entrepreneur should reconsider his approach to marketing.
What is Marketing Management
Types of Marketing Management
Marketing strategy and management process
Methods and approaches to marketing management
Marketing Management Indicators
Expert Advice
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What is Marketing Management
Table of Contents
Marketing is like a bridge between the seller and the buyer. The entrepreneur’s task is to build this communication correctly, ensure product promotion, organize the flow of potential clients and subsequent sales. To prevent the bridge from breaking, it needs to be maintained, that is, marketing must be managed.
You can learn how to manage marketing — analyze the market and competitors, identify trends, make marketing and product decisions, increase profits — on the course “Market Analysis and Assessment”. Suitable for beginners, business leaders, marketers, analysts and product managers.
Types of Marketing Management
Marketing management is like a multi-layered cake. Each layer – or type of management – is meaningless on its own, but when you put it all together, marketing works. Here’s how to think about it.
The bottom layer of the pie is operational management. These are tasks that the performer, for example, an SMM specialist , solves regularly: creates creatives, sets up advertising, tracks advertising campaign indicators.
Above is also operational management, but more in-depth. It is carried out with a certain frequency: once a week or less. For example, the same SMM specialist tracks and analyzes such important indicators as conversion , number of leads , sales, engagement rate and others.
The top level is strategic management. Here, the level of expenses, revenue, and number of refusals are controlled. Depending on the specifics and size of the company, this can be done by a marketer, head of sales, or business owner. At this level, the entrepreneur himself evaluates the cost of attracting users, their LTV , the return on investment in marketing in general, and individual advertising campaigns in particular.
Marketing strategy and management process
Typically, the marketing management process is represented as a sequence of the following actions:
1. Analysis of the market , target audience, competitors .
2. Development of company strategy and marketing strategy , formulation of goals and objectives.
3. Implementation of strategies.
4. Monitoring and control.
This method is more suitable for large companies with a marketing department and a solid budget for implementing strategies. In small and micro businesses, the marketing management process can be divided into two stages: setting a task and monitoring its implementation. If resources allow, elements of “big” marketing are used, for example, a freelance marketer analyzes the market and the company’s target audience. But strategic planning tasks are often delegated to the accounting or finance department.
Depending on the stage of the company’s development, the duration of the cycles may vary. For example, when launching a business or a new product, you have to set tasks and monitor the results more often. Then the manager has a buffer period of time, and then he or she again actively sets tasks for the marketer and analyzes the results. This cyclicality can be represented as a sine wave.
Ideally, the initiative in communications should come from the contractor. For example, an entrepreneur and a marketer agreed that they discuss the results once a week. This means that the rest of the time the customer does not interfere with the process. The exception is critical situations, such as when the volume of orders has dropped sharply, advertisements are not shown, or a force majeure has occurred on the market.
Another way to simplify the marketing management process is to implement data visualization . For this, you can use Excel or more complex tools like Yandex DataLens, Power BI . On graphs and dashboards, all indicators are visible in dynamics, and it turns out that there is no need to waste time on analytics. At the same time, both the owner and the team understand in which direction they are moving and, if necessary, can adjust processes.
Methods and approaches to marketing management
Marketing management is the process of planning, coordinating, and controlling marketing activities aimed at achieving business goals. The choice of a method or approach to marketing management depends on the company’s conditions and objectives. Here are some of them:
● Market segmentation
dividing potential customers into groups with common needs and characteristics. Segmentation allows you to spend resources correctly and apply targeted marketing efforts.
● Positioning
defining the unique place of the product in the market and creating a brand image that distinguishes it from competitors.
● SWOT analysis
an assessment of the company’s strengths and weaknesses, opportunities and threats it faces in the market.
● Marketing mix
is a combination of the four basic elements of marketing: product, price, distribution and promotion.
● Marketing research
collection and analysis of information about the market, consumers and competitors.
● Customer Relationships
creating and maintaining long-term relationships with customers, keeping them in a loyal customer base.
● Targeted marketing management
focus on achieving specific goals, such as increasing sales or improving brand image.
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Marketing Management Indicators
Depending on the business area and the size of the company, marketers track several dozen indicators. In small and micro businesses, you can focus on the main ones:
● Traffic
This is the number of unique users who paid attention to the product: went to the site, visited the group on social networks. This indicator is the starting point of the entire volume of potential clients: the greater the volume of visitors, the higher the chance of a purchase. It allows both to calculate subsequent indicators and to monitor the overall dynamics, for example, whether the volume of potential clients is decreasing.
● Conversion
Globally, it is the ratio of the particular to the general in the links of the sales chain. For example, the ratio of clicks on an advertisement to the total number of impressions in percentage equivalent. Conversion helps to determine how interested the audience is in the company’s offer and to identify the degree of subsequent positive actions of the attracted traffic.
● Customer acquisition cost (CAC)
This metric helps you find out how much money a company spent to turn a user from general traffic into a company client, and understand how profitable it is to sell a product through a specific channel or to a specific audience segment.
● Sales volume and cost
This is the total number and cost of goods or services sold over a certain period. Sales volume can be measured in money or units, such as pieces, liters, kilograms. This indicator is useful for dynamically analyzing the state of the project.
● Return on Marketing Investment (ROMI)
This indicator is needed to understand which advertising channels are effective and bring in customers, and which ones should be abandoned.
The main goal of any business is to make a profit
And the key principle of marketing is its payback and efficiency. Regardless of the business area, the owner must understand how much he gets from each ruble invested in advertising.
