The very basis of economics is to try and satisfy the infinite needs of people with finite and scarce resources. In public administration this is especially true, as public services need to work within their allocated budgets, while still trying to meet the insurmountable needs of the people.
The world of marketing management however, tries to satisfy the needs of people while still remaining profitable. This involves identifying which products and/or services meet the expectations and satisfies the needs of the consumer, while still garnering a profit for the enterprise, and doing away with products and/or services which fail to do so. Thus marketing management is customer orientated.
Marketing managers have to work within the predetermined goals of an organisation and draft up step by step plans and make decision for the organisation to get the maximum turnover possible, while also meeting the demands of their customers.
This involves studying the market, the competition, and the target audience to get a better understanding of the market you are operating in. Then using the four p’s of marketing management, namely products, place, price, and promotion, to make the environment more favourable for the organisation in order to maximise profits.
The objective for marketing management is as follows:
Attracting new customers
New customers improve sales, which improves profits. This can also increase the market share and have an effect on reputation towards the public (positive or negative).
Satisfying demands of customers
Apart from attracting new customers, the organisation must strive to adequately satisfy the demands of their current customers. The mind-set of quality over quantity is important here, because if you provide a good quality product/service, you will get more returning clients and increased reputation.
Profitability
The main goal of any private organisation is to make a profit and is the backbone of the entire operation. Without profits, the enterprise cannot survive. Not only does this involve working under budget constraints (as marketing can become quite expensive), it involves keeping old clients happy, while attracting new clients, thus maximising profits for the organisation.
Maximising market share
Trying to maximising your share in the market will maximise the amount of profits received as well. There are various ways in which this can be achieved, by doing market studies, offering promotions, having unique packaging, increasing public reputation, etc. If your market share is higher than your competitors (you have more customers) your profits will be higher.
Creating positive public reputation
Organisations do not operate within a vacuum, thus they need to take the communities they are in, into consideration. Bad market reputation will lead to poor sales and poor profits. The inverse is also true. Good reputation provides opportunities for growth and diversification, which can increase overall profitability.
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