Concepts of company marketing management
Table of contents: The Kazakh-American Free University Academic Journal №5 - 2013
Solomina Xeniya, Kazakh-American Free University, Kazakhstan
Mukhamediyeva Ardak, East Kazakhstan State University in honor of S. Amanzholov, Kazakhstan
Marketing is one of the speediest developing sphere of Economics.
The choice of effective means of marketing management made by any company depends
on manager’s skill to consider a tendency particular to development of one or
another market. The main means are to increase quality, price, customers’ complacency
and develop firm relations with them, make business management effective,
integrate management functions and learn how to think globally, increase
hi-tech technologies role in international business, etc.
Therefore marketing as concepts of company management is a base of
intercompany management aimed at achieving high economic activity efficiency in
conditions of present market.
Mr. Philip Kotler defines marketing as analysis, planning,
implementation of and control for execution of measures aimed at establishing,
strengthening and maintaining profitable trades with target customers to
achieve certain company tasks such as gaining benefit, increasing sales,
enlarging market share, etc. .
Therefore, the principle of marketing management is to find an
optimal number of customers sufficient for selling the entire products amount
produced by a company. This includes establishment and widening of a demand as
well as its change and shortening. In this matter marketing management task is
to affect a level, time and a pattern of demand to help a company to achieve
aims as established. Marketing management is a demand management. Marketing
management covers the issues of (1) study related to preferable level of demand
for certain company goods; (2) analysis of a situation when a real demand
overrides an expected one. Marketing management includes sales, sales
stimulation, advertizing campaign and marketing research, goods management and
As an example, please, refer to definition by Mr. Vitaly Kutsenko:
Marketing management is a process that includes analysis, planning, plans
implementation and measures execution control to establish, strengthen and
maintain mutually profitable trades and purpose-oriented markets so that
company aims (to gain profit, increase sales volumes, enlarge market share,
tec.) are achieved .
Therefore according to the definition above and general concept of
management Mr. Vitaly Kutsenko denotes the following functions of Marketing
Management in any industrial company:
– analysis of a market (identification of its potential, capacity,
condition, demand, behavior of customers, competitors assessment, etc.) and
market possibilities of a company with regard to its resources;
– planning, i.e. development of production and sales marketing
programs on a basis of market forecasts, etc.;
– structuring of a marketing team in a company; implementation of
plans as established (certain tasks development, authority and responsibilities
assignment to implement marketing measures, etc.);
– motivation and development of financial and moral incentives for
company employees in order to increase labor efficiency;
– control and analysis of marketing plans (measures) implementation
Concepts of company’s marketing activity management as a part of
market concepts shall be defined by a combination of economic relations between
sellers and buyers, goods, services and ideas demand and supply.
In accordance with a Marketing Management Theory by Mr. Philip
Kotler there are five alternative concepts used as a basis by trading and
nonprofit companies to be operable :
1. Concept of production process improvement: Customers prefer
cheaper goods, therefore a company shall decrease production costs.
2. Concept of goods improvement: Customers prefer goods of a high
quality. Sales stimulation is not supposed to be required. A company shall be
oriented on goods quality increase. Some producers believe that achievement of
this goal can make sales better. However goods quality is equally important as
a service system including marketing.
3. Concept of selling effort intensification: Significant efforts in
selling stimulation are required for successful selling.
4. Concept of marketing: Investigations shall be conducted to help a
company to indentify and satisfy the demand of a target market.
5. Concept of a socially ethical marketing: A company shall make
marketing decisions with regard to customer’s demand, own requirements and
overall society requests .
Each company is interested in efficient management of its
international marketing. Market opportunities analysis, target international
markets selection, marketing complex development, marketing measures
implementation shall be considered for efficient international marketing
management. International marketing management process is a combination of
items as stated above.
The main principles of marketing management in a company shall be an
issue for consideration. It is well-known that a base of efficient company
management is a marketing strategy as developed in details and implemented in
business. According to Ukrainian scientist, Mrs. Nataliya Kudenko, marketing
strategy covers marketing planning when developing marketing mission and goals
. Achievement of company strategic goals is impossible without exactly
developed business trends and identification of company uniqueness. On opinion
of Mr. Georgy Bagilyev the main goals of a company doing an international
business are the following: potential demand increase, competitive advantage
enrichment, commercial risk decrease, production and distribution costs
reduction, products life-cycle extension .
Therefore, a marketing strategy is an initial point of a business
planning and overall business management. Company marketing management system
is developed for strategic plans implementation as proposed by Mr. Sergey
Mkhitaryan (see Picture 1) .
1. Functioning scheme of company marketing management
Company marketing management is described on a Picture 1. Company marketing
management starts with marketing environment analysis when company external
environment is analyzed with regard to internal resources in order to determine
a possibility to achieve a goal as established (SWOT-analysis).
Marketing strategic planning is done on a basis of marketing
environment analysis. As a result a business strategic orientation is defined
and strategy is developed for each direction as chosen. Selection of target
markets includes market segmentation, target segments selection and goods
positioning. Segmentation allows dividing all the customers according to demand
and reaction to marketing impact. Target segments selection is based on their
attractiveness analysis as well as company goals and resources. This stage is
devoted to differentiated product proposal for each segment. Goods positioning
includes measures for company proposal and image development aimed at gaining a
separate advantageous position in minds of a group of customers.
According to Mr. Sergey Mkhitaryan each strategic direction is a
combination of a certain market segment and a product proposal for this
segment. A company business-case that includes all the strategic directions
shall be balanced with financial flows. There shall be directions gaining
profit at the present moment and investment directions to be profitable in
Further marketing complex shall be developed for each direction on a
basis of selected strategies. According to Mr. Vitaly Kutsenko marketing
complex is a combination of marketing tools and measures to be used in the most
advantageous (optimal) way . Company goods and communications development
shall be related to marketing complex.
The next stage is marketing plans implementation on all company
division levels. The main job in this regard is done by marketing division:
sales division, market investigation division, advertising division, etc.
Degenerative feedback allows a company to take into consideration a
reaction of marketing environment to company impact when doing business, says
Mr. Sergey Mkhitaryan. Marketing strategy is just a hypothesis to be verified
and modified if necessary .
Marketing control is the final point on a management scheme shown on
Picture 1. Control task is to determine difference between actual and scheduled/standard
values and corrective actions development. Please, note plans implementation as
well as strategy conformance to market reality shall be under control.
Marketing strategy shall be modified as far as it is a kind of supposition and
hypothesis at the initial stage.
Marketing management circuit allows company to adapt to market conditions
change and advance to strategic goals as established. According to Mr. Anatoly
Romanov company goals achievement depends on three main factors such as (1)
strategy as selected, (2) organizational structure and (3) structure way of
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Table of contents: The Kazakh-American Free University Academic Journal №5 - 2013