Concepts of company marketing management

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. [1].

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 price formation.

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 [2].

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 [2].

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]:

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 [2].

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 [3]. 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 [4].

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) [5].

Picture 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 future [5].

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 [2]. 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 [5].

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 functioning [6].

BIBLIOGRAPHY

1. Котлер Ф., Армстронг Г., Сондерс Дж., Вонг В. Основы маркетинга: Пер. с англ. – 2-е европ. изд. – М.; СПб.; К.: Издательский дом «Вильямс», 2007. – 944 с.

2. Куценко В.М. Маркетинговий менеджмент: Навч. посiб. – К.: МАУП, 2008. – 184 с.

3. Куденко Н.В. Стратегiчний маркетинг: Навч. посiбник. – К.: КНЕУ, 2007. – 152 с.

4. Багиев Г.Л., Тарасевич В.М., Анн Х. Маркетинг: Учебник для вузов. 3-е изд./ Под общ. ред. Г.Л. Багиева. – СПб.: Питер, 2007. – 736 с.

5. Мхитарян С.В. Отраслевой маркетинг. – М.: Эксмо, 2007. – 368 с.

6. Романов А.Н., Корлюгов Ю.Ю. Красильников С.А. и др. Маркетинг: Учебник; Под ред. А.Н. Романова. – М.: Банки и биржи, ЮНИТИ, 2007. – 560 с.