Management and the Success of a Company - Essay Example

The importance of Management and marketing within business organisation and the impact of technology 09 October 2012 Introduction It is difficult to define management in few words because of the complex parameters involved in the management process. In simple terms, management is the process of dealing or controlling things or people. One of the most common function of management is getting things done through others. “According to Henri Fayol, "To manage is to forecast and to plan, to organise, to command, to co-ordinate and to control” whereas Peter Drucker, defined Management as a multi-purpose organ that manages business and manages managers and manages workers and work"(Akrani, 2011)1 From the above definitions, it is evident that management is highly complex term which has got multi dimensions. On the other hand, marketing is a process of informing the customers about the value or utility of a product or service, and to encourage the customers to purchase it. “It is defined as the process of determining the needs and wants of consumers and being able to deliver products that satisfy those needs and wants. Marketing includes all of the activities necessary to move a product from the producer to the consumer” (What Is Marketing?, n.d, p.13)2 Importance of management Management is a process which helps to achieve; group goals, Optimum Utilization of Resources, reduction of costs. It is a process which establishes sound organization and equilibrium. Moreover, it helps the society to achieve prosperity (Importance of management.2012)3. Man, material, machine, and money are the four most important resources of an organization. Management is the process, which helps the coordination of all these organizational resources. For example, finance department is responsible for the management of money in an organization. Same way, human resource department look after the manpower resources whereas engineering or production department look after the machineries and materials. Even though different departments are controlling the organizational resources, it is the process of management, which helps them to utilize these resources judiciously so that the organization benefits from these resources. Many people have the illusion that management is a function restricted only to the executives of an organization. In fact, Management is a function usually undertaken by people of all calibre. For example, a housekeeper is responsible for managing the resources of a house properly whereas a construction worker is responsible for managing the works assigned to him. A housewife manages the education of her children while her husband manages other family matters. In short, management is a function which can be seen everywhere. It is impossible for this world to move a step forward without management of different kinds. All organizations depend upon group efforts. Group action and joint efforts have become necessary in every walk of life. Management is required wherever two or more people work together to achieve com­mon objectives. The success in group efforts depends upon mutual cooperation among the members of the group. Management creates teamwork and coordination among specialized efforts. Management is indispensable in all organizations whether a business firm, a govern­ment, a hospital, a college, a club, etc. Management is a creative force which helps in the optimum utilization of resources (Kuldip, 2012)4. No two individuals are alike. This is true in the organizational world also. It should be noted that current organizations are heavily globalized so that they forced to employ people from different parts of the world. Diversity helps organizations in many ways. At the same time diversity creates lot of problems also. Coordination of diverse workforce is extremely difficult. Management is the process, which helps human resource managers to coordinate diverse workforce effectively. For example, an American working in a Chinese organization may face language problems. It is the duty of the human resource department to help the American in understanding his Chinese counterparts. For this purpose, HRM should provide Chinese language education to the American. Here we can say that the HRM department is managing the language problem of the American with the help of the training give to him. According to Bloom et al (2012), “substantial variation in management practices across organizations in every country and every sector, mirroring the wide spread of productivity and profitability within industries” (Bloom et al, 2012, p.12)5. Importance of marketing Marketing plays a very essential role in the success of a company. It educates people on the latest market trends, helps boost a company’s sales and profit, and develops company reputation. But marketers must be creative and wise enough to promote their products with the proper marketing tactics. Although marketing is important, if it is not conducted and researched well, the company might just be wasting on expenses and time on a failed marketing approach (Exforsys Inc., 2009)6 Even though selling is the major objective of all marketing processes, modern organizational theories say that marketing is process which is much more than selling of a product or service. For example, the value of relationships with the customers is well understood to the business world now. Marketing is the process, which helps an organization to establish sound relationships between the organization and the customers. Earlier, organizations were keen in finding new customers. They neglected the needs of the existing customers. However, modern organizational principles say that existing customers is as important as new customers to an organization. Marketing executives are responsible for sustainment of existing customers and for the identification of new customers. Marketing has the ability to make or break an organization. Even better quality products fail in the market in the absence of proper marketing activities. Same way, even cheap quality products may excel in the market with the help of effective marketing activities. For example, Parker Pen Company tried to follow a unique marketing strategy everywhere in the world for selling its writing equipment during the beginning of globalization. They thought same product needs same marketing strategy everywhere in the world. However, their strategy failed miserably. They failed to recognize the fact that the product may be the same, but the markets are different. Even though nobody has any doubts about the quality of Parker Pen products, the company is on the verge of destruction now because of poor marketing strategies. On the othe hand many cheaper Chinese writing equipment are excelling in the market with the help of attractive or effective marketing strategies. The success of Chinese companies is attributed to their abilities to formulate customized marketing strategies for each region. Sachin Tendulkar could be better brand Ambassador in India; however, he may not be the same in America. In America, tiger Woods could be a better brand ambassador than Sachin. These cultural differences between different markets should be taken into the account while marketers formulate their marketing strategies for different regions. In short, marketing has the ability to make or break an organization. Marketing is the process, which helps the organizations to identify the needs of the customers and also the demand of a particular product or service in the market. For example, Apple has recently introduced iPhone 5 in the market. It should be noted that Apple forecasted the demand of iPhone 5 correctly and produced enough units to cater the needs of the customers. Market study or the feedbacks from the market helped Apple to assess the probable demand of iPhone 5 in the market. The future with technology It is difficult to predict what is going to happen in future. It is impossible to think of an organization without computers and internet facilities. Most of the offline marketing strategies were given way for online marketing at present. Technology is advancing rapidly as time goes on. Yesterday’s technologies are outdated today and today’s technologies may not be suitable for tomorrow. Type writers were a big surprize in 60’s and 70’s. During the 80’s desktop computers replaced typewriters. Desktop computers given way for laptops in the 90’s. The beginning of 2000 witnessed the entry of tablets and smartphones. Today, it is easy for a person to operate his smartphone just like a computer. In other words, most of the computer functions can be accomplished with the help of a smartphone now. These technological developments influence management and marketing in many ways. It is easy for a marketing executive or a manager to arrange meetings with his clients with the help of videoconferencing like modern technologies. There is no need for the manager to travel long distance to meet his clients. In short, the distance between the organization and its customers are getting reduced as time goes on with the introduction of new technologies. Instant communication is the most important help provided by computers and internet. Instant communication helps managers and marketers to communicate with their customers in time. Online marketing is getting more and more popularity nowadays because of the advancements in technologies. Social networks are used extensively for the viral marketing purposes nowadays. “The term “viral marketing” describes the phenomenon by which consumers mutually share and spread marketing-relevant information” (Hinz et al, 2011, p.55)7. These trends may continue in future also. The use of technology in management and marketing today Technology is creating customer choice, and choice is altering the marketplace. Gone are the days of the marketer as salesperson. Gone as well is marketing that tries to trick the customer into buying whatever the company makes. There is a new paradigm for marketing, a model that depends on the marketers knowledge, experience, and ability to integrate the customer and the company. Six principles are at the heart of the new marketing. The first, "Marketing is everything and everything is marketing”. The second, "The goal of marketing is to own the market, not just to sell the product". The third principle says that "marketing evolves as technology evolves." The fourth principle, says that "Marketing moves from monologue to dialogue". The fifth principle says that "marketing a product is marketing a service is marketing a product." The sixth principle says that "Technology markets technology (McKenna, 1991)."8 In the management field also, technology is used extensively. It should be noted that most of the prominent companies in the world are operating internationally nowadays. For example, Microsoft has business units in India, China, Middle East like prominent countries or regions. It is not necessary for Bill Gates to travel all these countries or regions to manage his business. he can control all his business activities, while staying in America, with the help of new technologies. Conclusions Management and marketing are two of the most important functions of an organisation. It is impossible for an organization to move ahead without marketing or management. Marketing and management have the ability to make or break an organization. New technologies help marketers and managers immensely in formulating new marketing and management strategies. Bibliography Akrani, Gaurav. 2011. What is Management? Definitions Meaning and Features.[Online] http://kalyan-city.blogspot.in/2011/04/what-is-management-definitions-meaning.html [Accessed on 09 October 2012] Bloom, Nicholas; Genakos, Christos; Sadun, Raffaella; Van Reenen, John. Management Practices Across Firms and Countries. Academy of Management Perspectives. Feb2012, Vol. 26 Issue 1, p12-33 Exforsys Inc. 2009. Importance of Marketing. .[Online] http://www.exforsys.com/career-center/marketing-management/importance-of-marketing.html[Accessed on 09 October 2012] Hinz, Oliver. Skiera, Bernd. Barrot, Christian & Becker, Jan U. 2011. Seeding Strategies for Viral Marketing: An Empirical Comparison. Journal of Marketing Vol. 75 (November 2011), 55–71 Importance of management. 2012. [Online] http://www.managementstudyguide.com/management_importance.htm[Accessed on 09 October 2012] Kuldip. 2012. What is the importance of management in the modern business world? [Online] http://www.preservearticles.com/201106168019/what-is-the-importance-of-management-in-the-modern-business-world.html[Accessed on 09 October 2012] McKenna, R. 1991. Marketing is everything. Harvard Business Review [1991, 69(1):65-79] What Is Marketing?, [Online] http://www.asbcentral.com/marketing%20pdf/what.pdf [Accessed on 09 October 2012] Read More