Often clients come to us with complaints like: “The site does not work”, “Contextual advertising is very expensive”, “Offline promotion is dead”.
And they ask to solve exclusively this or that problem. But when you start to delve into the project, you realize that for example contextual advertising set up fine.
But the site does not convert well, because it is weak or incorrect.
Always like this. One is good, the other is bad. Therefore, to achieve a result, a systematic approach and integrated marketing are required, and not a band-aid for a broken knee.
And before we start, first I'll tell you how it usually happens. The company's sales are falling or they urgently need to be raised, so some kind of advertising campaign is launched.
And it’s good if different ones are connected, but in most cases it’s one advertising channel promoting one promotion.
And the evaluation of effectiveness occurs directly on it, and then often by eye. And that's...not quite right.
How to
Correctly use an integrated approach and integrated marketing. But it is not immediately clear what it is.
And if you study the definition of integrated marketing, it does not become clearer. Here's what we notice in textbooks from university lecturers:
Integrated marketing is the total set of variable and measurable marketing factors that an enterprise uses to stimulate the response it needs among consumers of its products.
Something is not there at all. So, let's formulate another definition. And if so?
Integrated marketing- a number of systematic, justified and arranged in a system of activities that are aimed at the successful promotion of the company's products on the market.
And for this successful promotion, integrated marketing will use all the necessary tools for the speedy achievement that have been put in front of it.
If you do not refer to the same university teachers, then all activities within the integrated system are divided into 4 main groups:
- Product. A product or service that is offered to a potential customer.
- Price. How much a potential customer must pay to get the product they want.
- Place. This is a product distribution platform (shops, online stores, dealers, etc.).
- promotion methods. The activity of the enterprise to promote the product and encourage potential customers to purchase it.
Often only 4 groups of events are perceived as marketing or even complex marketing.
From it, many tools are used? Logic, right? But in fact, this is only a part, and not complex marketing itself, and even more so not just marketing. And now you will definitely not be deceived by fake marketers.
And… the most attentive have learned that now I am writing about 4P or marketing mix. That's right, integrated marketing is built on 4 basic elements. However, we have already discussed this approach in the article.
Here we will talk about how you can take on and set up complex marketing.
But before we move on to specific actions, I will focus on a few advantages of using an integrated approach in marketing compared to using separate marketing tools:
- KM is a strategy for achieving the long-term goals of a particular business, which is measured only in money.
- KM is an individual work with a company that any owner wants. There are no template solutions and a universal approach.
- KM is a work built on the state of the entire industry, the company's competitors and a full-fledged business analysis.
System marketing is expensive and therefore many owners are afraid to even think about it.
But if you are going to go far and on a large scale, then there is no way without it, you need a measured and global approach. By the way, which we always work out for our clients in .
Let me remind you. If you need to learn how to organize several advertising channels in a bundle, then you will have to be patient and first read a boring, but necessary theory.
In a professional approach, integrated marketing is more than combining a banner on the street and advertising on social networks into one chain.
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It all starts with… a goal
Integrated marketing, first of all, begins with the goal that you want to achieve.
And I will tell you right away - it is not only a marketer or the head of the marketing department who develops and puts them, as is customary in Russia.
For some reason, there is such a belief that a marketer should do all this, although this is not so. This requires the participation of the entire management of the company.
Healthy. If you want to know who a marketer is and what he does, I highly recommend reading the article.
But back to the goals, without which you can not even begin to study this type of marketing. By the way, this is the main mistake of many leaders, they are in a hurry to start quickly, although they do not understand what the expected result is.
And a goal like money is not the only choice. Therefore, I tell you 4 main goals for preparation:
- Business goals. It is for these purposes that the leaders of the company are responsible. This is achieving a certain position in the market, obtaining a given level of sales or profit (these are different things, if that).
- marketing goals. Moreover, long-term: from 1 year to 5 years. This is where attracting new customers, increasing loyalty to the product, or changing .
- communication goals. This is what the client should do when he sees the advertising message of the company. Their task is to create a need for a product or increase its recognition among consumers.
- Media goals. Indicators for measurement. They should be as specific and clear as possible. Just an increase in sales is not accepted.
For our clients, when setting goals, we use .
This is when you go backwards. Build big goals out of small ones. So the calculation process becomes more transparent, and each student can implement this action.
Even I can!
For example, marketing goal- increase the number of requests for the purchase of products from social network Vkontakte by 50%.
Building a comprehensive strategy
Of course, the goal itself is cool. But what to do next? After all, building a good complex on goals alone will not work.
Therefore, after a detailed study of 4 types of goals, although you have a detailed understanding of the actions and approximate costs, there are still quite a few steps to draw up. Hats off, I will give this understanding.
0. Shaping the foundation
Unfortunately, I will now voice our personal passions. In order for you to benefit from the direction of integrated marketing, you need to prepare the basic elements of your business for action.
And for this, the first thing you need to decide is what you have from the list below, and what you should work on first separately.
This is not the whole list of basic things in the company, I will call it minimal. If you do not have this, then consider that further work will go down the drain.
Therefore, first of all, we build the foundation, and only then, after that, we set up the walls and roof in the form of system marketing.
1. Collection of information
The next step is preparation. You need to study everything that is in the company now, what results you get, and what, on the contrary, negatively affects you.
If you do not know the inside of the business well, then you can make a mistake, which in integrated marketing is measured in hundreds of thousands of rubles.
- Key tasks of your business;
- business problems;
- Business processes;
- , etc.;
- Market analysis;
I also draw your attention to the fact that this is not the whole list, it can be continued for a very, very long time.
You know better than me what needs attention in your company and what can be left for dessert.
2. Forecast of the result
Remember I wrote about decomposition? So, the meaning of a marketing strategy, especially a complex one, lies in its correctness.
Rather, in her professional assessment. Before its development and launch, it is necessary to evaluate it, that is, to predict its results. This is not as difficult to do as it might seem.
You can estimate the volume of leads that you can get as a result of launching a marketing campaign.
Approximate volume of traffic for each channel. In the case of offline advertising, this could be reach. As well as the approximate advertising budget that it will require.
If the effectiveness of the channel cannot be assessed in advance, then it is necessary to set the time frame and budget for its test. However, it is better to try to build a hypothesis.
3. Strategy formation
Only after having goals and a complete analysis, you can proceed to the choice of methods and channels.
The most important thing to understand is that in a marketing strategy there is no such understanding as ONLY attracting customers.
When developing a marketing strategy, it is necessary to take into account: coverage, attraction, conversion (transformation from potential to real), customer retention and return.
Here you should determine in general strokes what you will use to achieve your goals.
For example, you decide that you will build the entire movement on .
Naturally, you made such a conclusion, because you know what problems you have and what tasks the companies face in this moment.
4. Implementation of tactics
And now the most boring thing is to draw up, in which all the channels of attraction necessary for this and the budget for them will be listed.
And the most important thing! For the thousandth time! Do not focus on developing only one: offline or online promotion channel.
Also, do not focus only on attracting customers. Use both. Implement the entire marketing mix. Otherwise, they will come to you and turn around.
Evaluation of results. Someone highlights this as a separate stage, but I think that this should be the default.
Moreover, the results of his work should be tracked in real time, and not after six months or more.
Yes and no is the main question.
So we got to the most important thing. Fly in the ointment in a barrel of honey. After all, if everything is so wonderful: the company has developed a strategy that satisfies its goals.
And the promotion tools have been worked out and they can be implemented, so why are so few companies involved in complex marketing?
Why? There are two reasons for this: it is difficult, I would even say very. In fact, it's incredibly difficult. And it's very expensive.
Not so unbelievable, but still for many companies this amount is not lifting.
And in order to fully answer this question for you, I will briefly describe three possible options implementation of integrated marketing services of this approach and our choice.
On one's own
For an independent implementation of CM in a company, there must be at least a specialist who will lead all this and will implement it.
And there aren't many of those anymore. In addition, he must have assistants, or proven freelancers.
Agency
Or rather, even an integrated marketing agency, as they call themselves. And for the most impatient, the cost of implementing this approach is on average in the market from 300-400 thousand rubles a month.
And unfortunately, this is the lowest bar. After all, this cost includes the work of: the head of the direction, the project manager, the seo specialist, the smm specialist, the designer and the copywriter (etc.). That's why it's so expensive.
Symbiosis
As a rule, agencies and in-house marketers hide that complex marketing is NOT ONLY.
It's all. This is work with both online and offline tools (banners, leaflets, commercial offers).
And there are very few people and agencies that understand both. Therefore, symbiosis is the ideal choice according to our many years of experience.
Scary. Implementation period and payback period of integrated marketing is at least 3 months.
But if I were you, I would prepare to invest first, and after 6-12 months only start to get the effect. But one that will surpass all one-time actions in a few goals.
Briefly about the main
We live in the 21st century. Because information is growing and spreading rapidly. The marketing tools that are being used are also being updated faster than we breathe.
At the moment, there is even a joke: “While you are writing the table of contents for a book about working on Facebook, he manages to change the algorithms of his work.”
Therefore, if you use only 1-2 channels to attract customers, then there is a high probability that customers will simply pass by and not notice you.
When in the case of a comprehensive strategy and integrated marketing, you can at least not only attract a client to your office or to your website, but also keep it and return it later if necessary.
After all, then you will have worked out all the tools necessary for this. Yes, it is long and expensive. But very effective.
The logic of the analysis of the features of the stages marketing planning leads to the need to consider the issue related to the organization of a system for monitoring the implementation of the marketing plan. Marketing control - a constant, systematic check and evaluation of the position and processes in the field of marketing, ensuring the adaptation of the company in a changing marketing environment.
In most literary sources, when considering the systemic nature of marketing control, the following forms are distinguished: strategic control, which involves a comprehensive analysis and audit, and tactical control, which is based on the current accounting of the results of marketing activities and their revision.
The value of marketing control in the conditions of intensification of marketing communications of the company increases significantly. Marketing control cooperates and directs the interaction of all subjects of the marketing system in order to ensure the conditions for their effective entrepreneurial activity. In modern conditions, marketing control is considered not only as the last stage of marketing planning, but also as an independent subsystem of an integrated model of marketing interactions of a company - marketing controlling. This subsystem is understood as a comprehensive assessment of the strategy and tactics of the company's marketing interactions and the search for its competitive advantage in target markets while pursuing a marketing policy at a level higher than that of competitors. The marketing controlling system includes the following elements:
1) coordination of the company's marketing efforts to meet the needs of customers;
2) planning of control measures;
3) analysis of the actual results of marketing activities;
4) informational analytical support for the adoption process marketing solutions;
5) the organization of a specialized controlling service, which can be created on a centralized basis (representatives of this service are part of the top management) or on a decentralized basis (when controller managers are specialists in the firm's functional substructures).
The organization of the marketing controlling subsystem is associated with the solution of the following issues:
Setting goals and objectives;
Evaluation and selection of marketing control methods;
Analysis of controlled indicators;
Development of a system of measures that correct the strategy and tactics of the company's marketing interactions;
Determination of directions for integration with other subsystems of the integrated management model marketing communications firms (planned, informational, organizational, motivational, etc.).
To solve these issues, the company needs to determine the goals and objectives of the existing subsystem of marketing controlling, highlight the main functions of the latter, select methods of marketing control and evaluate the main controlled indicators.
In table. 4.6 presents the main elements of decision-making technology in the marketing controlling subsystem: main goals, main tasks, methods and indicators.
The result of using the listed elements of decision-making technology in the marketing controlling system should be:
Revealing the degree of achievement of the goals of marketing interactions of the company (analysis of deviations);
Finding out opportunities to improve the strategic and (or) tactical state of the company in the target market;
Determining the degree of adaptability of the enterprise to changes in the surrounding marketing environment (feedback analysis);
Assessment of the actual level of competitiveness of the marketing communications system created by the company.
The firm will obtain these results by applying a whole range of marketing control methods and analyzing benchmarks. Processing indicators requires:
o comparison of planned and actual values;
o determination of acceptable limits of deviations;
o assessment of the factors that caused these deviations;
o developing measures to improve the marketing mix as a whole or its submixes. Improving the entire marketing mix is associated with a radical adjustment and coordination of marketing plans. Improving the work of individual submixes requires adapting marketing plans to changes in some factors target market(markets).
Table 4.6. DECISION-MAKING TECHNOLOGY IN THE MARKETING-CONTROLLING SYSTEM
|
Main goals of control |
Main goals |
Marketing Interaction Controlling Functions |
Basic methods of marketing control |
Indicators |
|
o effectiveness of the marketing mix o the results of the activities of the marketing service and related functional units o change in marketing potential o performance of the distribution network o factors of the company's marketing environment |
o coordination and aggregation of marketing plans o adjusting the goals and objectives of the planned subsystem of marketing interactions o adaptation of marketing plans to changes in the company's marketing environment o creation of a systematic control over the results of the company's marketing activities o organization of current accounting of the results of marketing activities |
o diagnostic o analytical o coordinating o corrective o adaptive o methodological o informational |
o expert assessment methods o control chart method o reporting analysis methods (IT analysis method, swot analysis method, method of planned and selective audits) o current analysis methods (balance method, reporting) o revision (comprehensive, selective) |
o analysis of costs, profits o analysis of turnover o analysis of the rationality of the marketing system o analysis of the structure of marketing costs in relation to planned and actual volumes of trade o analysis of factors of deviation of actual values from planned turnover |
For example, analyzing one of the main indicators of the marketing-controlling system - the cost-profit indicator, the company determines the reasons for the fall (growth) of gross revenue, answering the question, what share of the deviation of the strategic sales volume from the planned one is due to a change in the physical value of sales, and what share is due to a change in prices . The planned improvement measures will answer this question:
a) pricing policy (revision of prices, discount systems for customers, pricing methods and models);
b) marketing policy (conducting an in-depth ABC analysis in order to clarify the boundaries and composition of the target market; revising relations with resellers for the benefit of either retail or wholesale trade);
c) communication policy (detailed revision of the advertising budget and the structure of all costs for product promotion in order to optimize the communication mix and search for new forms of bringing products to the end consumer).
Among marketers, the term "marketing system" is used quite often, and its specific content is not disclosed. Foreign authors also do not have a concrete and substantive definition of this term. General definitions include the following: "... A marketing system consists of the collective marketing activities of tens of thousands of profitable and non-profit organizations ...". This term does not cover the content this concept, but use it at the level of society and general reasoning, in a non-strict sense, without putting specific content into it.
This definition also does not reveal the essence of the marketing system for the organization (enterprise) level.
In relation to the enterprise, the definition of the marketing system is given as "a set of its information, organizational, planning and control elements that ensure the relationship and interaction of the enterprise with the market" .
The marketing system is considered both at the level of economic management, within the framework of the organization's interaction with its external groups of influence, and at the level of individual economic entities, which does not give it a clear definition. The difficulty in defining the concept of "marketing system" lies in the fact that the very concept of "marketing", as shown above, its role and functions are interpreted in different ways and in the abundance of types of marketing.
To give the most complete definition of the term "marketing system" we will analyze the very concept of "system".
A system is a set of elements that cannot be divided into independent parts. The main feature of any system is that this whole set, thanks to its connections, acquires a certain unique property, which is not possessed by any of the elements included in the system and which is violated every time any element is excluded from the system. The main parts of any system are input, process or operations, output and feedback.
For the marketing system, the first element of entry is information, various kinds of data, the transformation of which allows you to make informed marketing decisions, recommendations that allow the appearance of a market novelty product on the market. The second entry element is the external environment. The third element sets the laws of organization and functioning of the system, restrictive conditions. The output is implemented marketing solutions, recommendations, ideas of the system. Feedback connects the output and input of the system, that is, marketing activities are carried out in interaction with its external environment. The system must meet the following requirements:
- - the behavior of each element of the system affects the behavior of the system as a whole;
- - the behavior of the elements of the system and their impact on the whole are interdependent.
In marketing, depending on the specifics of its use in specific conditions and the completeness of the implementation of individual tasks, there may be no separate subsystems, while it may be considered that the marketing system is functioning. Any system has organization and structure. The organization of the marketing system is a way of connecting the elements of the system in the process of its functioning to achieve the goal.
The structure of the marketing system can be considered from different positions. If we consider marketing as a set of processes, methods, means, then marketing is considered as technological system. If we study marketing in terms of the functions of the activities of its performers and the tasks set, then marketing is presented as social system. If we consider marketing in terms of economic results due to marketing activities, then marketing is an economic system.
The variety of types of marketing systems as separate ones makes it difficult to determine its structure, and only their combination gives complete system marketing.
The general marketing system can be divided into separate subsystems-functions according to the information technology principle based on individual marketing tasks. There are the following subsystems-functions of marketing: marketing research, preplanned marketing analysis, marketing planning and marketing control.
“..Under the marketing system of an enterprise, one should understand a set of various elements - material and conceptual, as well as people who are connected in a certain way with each other and through their interaction ensuring the development of marketing strategies, as well as tactical marketing decisions that allow the enterprise to pursue a balanced, reasonable product and pricing policy on the market…" . This definition of the marketing system is more consistent with its purpose as one of the attributive functional factors. economic activity enterprises (firms, organizations, corporations, etc.).
Consider the components of the marketing system.
1. Marketing planning
Marketing planning in different organizations is carried out in different ways. This concerns the content of the plan, the duration of the planning horizon, the sequence of development, the organization of planning. Thus, the scope of the content of the marketing plan for different companies is different: sometimes it is only slightly wider than the plan of the sales department. Individual organizations may not have a marketing plan at all, as an integral document. the only planning document for such organizations there may be a business plan drawn up either for the organization as a whole or for individual areas of its development. In general, we can talk about the development of strategic, usually long-term plans and tactical (current), usually annual or more. detailed plans marketing.
A strategic (long-term) marketing plan, developed for 3-5 years or more, characterizes the current marketing situation, describes the strategies for achieving the goals and those activities, the implementation of which leads to their achievement.
A marketing plan is developed for each strategic business unit of the organization and, in terms of formal structure, usually consists of the following sections: executive summary, current marketing situation, dangers and opportunities, marketing objectives, marketing strategy, action program, marketing budget and control.
Executive Summary - The opening section of a marketing plan that provides a brief summary of the main objectives and recommendations included in the plan.
The current marketing situation is the section of the marketing plan that describes the target market and the organization's position in it. Includes the following subsections: market description (down to the level of the main market segments), product overview (sales volume, prices, profitability), competition (for main competitors, information is provided regarding their product strategy, market share, prices, distribution and promotion), distribution (sales trends and development of main distribution channels).
Hazards and Opportunities - A section of a marketing plan that identifies the major hazards that a product may encounter in the marketplace. The potential harm of each hazard is assessed, i.e. complications arising from unfavorable trends and events that, if not targeted by marketing efforts, can lead to the undermining of the viability of the product or even to its death. Every opportunity, i.e. an attractive direction of marketing efforts, in which the organization can gain advantages over competitors, should be evaluated in terms of its prospects, and the ability to successfully use it.
Marketing goals characterize the target orientation of the plan and initially formulate the desired results of activities in specific markets. Goals in the field of product policy, pricing, bringing products to consumers, advertising, etc. are lower level targets. Usually goals try to express quantitatively. However, not all of them can be defined in this way. The following formulations can serve as examples of qualitative goals: to survive in a competitive environment, maintain a high prestige of the company, etc.
The marketing strategy includes specific strategies for target markets, the marketing mix used, and marketing costs. Strategies developed for each market segment should address new and emerging products, pricing, promotion of products, bringing the product to consumers, and should indicate how the strategy responds to the dangers and opportunities of the market.
Program of Action (promptly - calendar plan), sometimes simply referred to as a program, a detailed program that shows what needs to be done, who should carry out the orders received and when, how much it will cost, and what decisions and actions should be coordinated in order to fulfill the marketing plan.
Three types of marketing programs can be distinguished:
- 1. The program for the transfer of the enterprise as a whole to work in marketing conditions.
- 2. A program in certain areas of the complex of marketing activities, and, above all, a program for the development of certain markets with the help of certain goods.
- 3. The program for the development of individual elements of marketing activities, for example, an advertising campaign.
At a glance domestic marketers, the greatest interest for the leaders of Belarusian enterprises are programs for entering the market with certain products.
Usually, the program also briefly describes the goals that the program activities are aimed at achieving. In other words, the program is a set of activities that must be carried out by the marketing and other services of the organization so that, with the help of the chosen strategies, the goal of the marketing plan can be achieved.
Marketing budget - a section of the marketing plan that reflects the projected values of income, costs and profits. The amount of income is justified in terms of forecast values of sales volume and prices. Costs are defined as the sum of production, distribution and marketing costs, the latter are detailed in this budget
In practice, various methods are used to determine the marketing budget; Let's look at the most common:
- 1) “Funding from Opportunities”. This method is used by firms focused on production, not marketing. The only advantage is the absence of any major conflicts with production units due to their unconditional priority. The imperfection of the method is in the absolute arbitrariness of the allocation of specific amounts, their unpredictability from year to year and, as a result, the impossibility of developing long-term marketing programs, planning the marketing mix and all the activities of the company.
- 2) The "fixed percentage" method is based on the deduction of a certain percentage of the previous or expected sales volume. This method is quite simple and is often used in practice. However, it is also the least logical, since it makes marketing dependent on sales volume. When focusing on the results of the completed period, the development of marketing becomes possible only on the condition of its previous success. If there is a market failure and the volume of sales decreases, then following this and proportionally, the amount of deductions for marketing also falls. As a result, the firm finds itself in a dead end.
- 3) The maximum spending method assumes that you need to spend as much money on marketing as possible. With all the apparent "progressiveness" of this approach, its weakness lies in the neglect of ways to optimize costs. Moreover, given the long time between spending on marketing and achieving results, the use of this method can lead the firm too quickly into insurmountable financial difficulties, and, as a result, to move away from the marketing concept.
- 4) The method of accounting for a marketing program involves carefully accounting for the costs of achieving specific goals, but not in themselves, but in comparison with the costs of other possible combinations of marketing tools.
Taking into account the shortcomings inherent in each of the above methods separately, it should be noted that the budget drawn up on the basis of an integrated approach using individual elements of all the methods considered will be the most justified. This method of budgeting can be based, for example, on focusing on the implementation of the task, taking into account the actions of competitors and the funds that the company can allocate for marketing.
Section - control - characterizes the procedures and methods of control that must be implemented to assess the level of success of the plan. To do this, standards (criteria) are established by which progress in the implementation of marketing plans is measured. Measurement of the success of the plan can be carried out for the annual time interval, and quarterly, and for each month or week.
All of the above sections characterize both strategic and tactical plans, but the main difference between them lies in the degree of detail in the development of individual sections of the marketing plan.
Marketing planning is increasingly used by many companies in Belarus, although it meets many opponents. There are cases when enterprises, having adopted this powerful tool of the market economy, subsequently abandoned it. There is a perfectly logical explanation for such facts. The fact is that the system of planning in general and strategic planning in particular is not subject to blind copying, which was observed in most cases. Any enterprise has individual characteristics related to the organizational structure, values, technology, personnel, scientific potential, etc. Thus, organizations to achieve maximum economic effect, it is required to adapt the existing marketing planning system to the environment in which it operates.
2. Organization of marketing activities
The implementation of the concept of marketing in the enterprise requires the creation of an appropriate marketing service. At present, without such a service, which provides marketing research to study the prospects for demand, consumer requirements for the product and its properties, the trends of these requirements under the influence of various factors, it is difficult for manufacturers to survive in the competition. The ultimate goal of the functioning of marketing services is the subordination of all economic and commercial activities enterprises to the laws of existence and development of the market. Both manufacturers and consumers of products are interested in this. In the evolution of marketing departments, four stages of development can be distinguished, each of which is also found in the activities of today's companies.
To determine the structure of marketing management means to establish individual elements in the subject of marketing management, to identify their subordination and interconnection in the process of making and implementing management decisions. Such subordination and interrelationships can be very different.
The following organizational structures of management are most often considered:
- - functional management structure;
- - management structure built on the commodity principle (commodity management structure);
- - management structure built on a regional basis (regional management structure);
- - matrix management structure.
Let's take a look at what each structure is.
Functional structure of marketing. This form of organization means that marketing is on a par with other functional divisions of the company.
Problems associated with such an organization:
- a) group selfishness, difficulties with coordination;
- b) the solution of tasks that go beyond the limits of competence is transferred to the top, which entails the danger of excessive centralization;
- c) employees do not always understand the ultimate goal; motivation decreases. From the point of view of adaptability to the environment, the functional structure is able to respond to quantitative fluctuations in demand, but there is not enough coordination to solve more serious problems. Therefore, it is better suited for companies with a homogeneous production program.
Product management is sometimes introduced to overcome coordination problems within a functional organization. His task is to coordinate the work of various enterprise services in connection with the release of this product.
Features of the product manager are as follows:
- - the activity of the manager is evaluated by the success of the product;
- - the manager performs, as a rule, a coordinating role without specific powers;
- - different product managers must compete for company resources (capacity, finance, etc.);
- - when managing products, there is a high probability of conflicts, a clear separation of powers is necessary.
Product management improves the product planning process, adaptability to the market, and coordination of service activities, but this requires the support of the enterprise management.
The management structure built according to the commodity principle differs from the one discussed above in that in this case paramount importance is attached to the management of commodity production. To ensure this high-level management, a product line department, as well as departments of product groups and individual products, are created.
The head of the product department coordinates all activities for the implementation of the marketing mix for this product. He knows about the market opportunities of the goods and can take the necessary management decisions taking into account changing market requirements.
Usage commodity structure management requires significantly more marketing management costs than they could be when choosing a functional structure. However, such costs are quite justified if the company produces fundamentally different products or the product range includes a significant number of assortment positions.
The regional management structure involves the creation of a network of representatives of the marketing management service in certain geographical regions. Such representatives directly live in these regions, they are well aware of the customs and traditions of local buyers, which allows them to organize the sale of goods at the proper level.
The use of a regional marketing management structure enables the company to establish close relationships with contact audiences, timely identify the real needs and requirements of potential buyers, their attitude to the company and its products.
Thus, a company using a regional marketing management structure creates favorable conditions for taking into account the characteristics of customers and offers them products that best suit their needs and needs.
The matrix structure of marketing management is based on at least two structuring criteria.
With their help, companies are trying to overcome the problems that are characteristic of one-dimensional management structures. The harbingers of matrix structures can be called product management and project management. main feature such a structure is that it involves a number of marketing programs, for each of which a leader is appointed. Program managers determine what needs to be done and when, and department heads determine how this work must be carried out in the relevant departments. It must be borne in mind that there is no ideal organizational structure of the marketing service that would be suitable for any conditions; when choosing the form of the structure, one should take into account, first of all, the company's goals and environmental conditions.
It must be borne in mind that there is no ideal organizational structure of the marketing service that would be suitable for any conditions; when choosing the form of the structure, one should take into account, first of all, the company's goals and environmental conditions.
Marketing activities begins with a comprehensive market research, within which the market requirements for the product, the market itself are studied, its segmentation is carried out, and competition is studied in the identified segments.
Comprehensive market research is the starting point in marketing. The second function is to study the internal environment or the capabilities of the enterprise. The study of the internal environment (a comprehensive audit of activities) of the enterprise underlies the setting of goals and the formation of a market strategy - the third function of marketing. The development of a market strategy involves the selection of a target market (segment) and the definition of methods and time to enter the market. Then the marketing mix is developed, which is represented by four elements: product policy, price policy, distribution policy, communication policy. Each element includes an independent set of activities, the implementation of which forms an appropriate policy in the field of marketing.
The organization of marketing activities as a system of functions should be considered not only in conjunction with the tasks within the marketing process, but also with the tasks of managing the personnel of marketing services. This approach integrates the functional and organizational aspects of marketing activities, combining the functions of management and marketing.
This means that the application of the concept of marketing in an enterprise presupposes the existence of a certain organizational form that corresponds to the content of the management process and is characterized by:
- 1. Composition and content of functions.
- 2. The required number of employees involved in the implementation of these functions.
- 3. Composition structural divisions control apparatus.
- 4. Hierarchical construction of the control apparatus.
- 5. Organization of interaction between both structural divisions and individual employees.
So far, insufficient attention has been paid to the content side of marketing at enterprises in various industries and, as a result, its organizational support is reduced to a simple renaming of sales departments into marketing departments. At the same time, it is overlooked that neither in terms of number, nor in terms of official composition, nor in terms of professional training, the existing sales divisions are not adapted for marketing activities. Therefore, the problems associated with the study of the marketing process and its structural organization, are of practical importance.
In an enlarged form, the marketing system includes the following:
1. Enterprise-manufacturer of products, whose functions include the production of products.
2. Enterprise-supplier, whose function is to provide necessary resources production of products. It is better for the manufacturer if it is possible to use resources from different areas, then the supplier competes. If resources are scarce, then manufacturers have to compete.
3. Market. It is the place where supply and demand, buyer and seller meet, where goods are exchanged for money, where the end result of marketing is manifested.
4. Intermediary. These are organizations or people who are engaged in the exchange of goods, providing communications, insurance, labeling of goods, identifying markets, etc. This includes transport, warehouses, wholesalers and individual traders, and in foreign markets - sales agents, brokers, consignees, credit facilities and more.
5. Competitors. These are enterprises (associations) that produce similar products (services). Distinguish functional competition when miscellaneous goods can perform one function; specific (for example, an electric or mechanical coffee grinder); intercompany, when products of the same type are produced, but at different enterprises. As a rule, competitors are associated with all of the above subsystems.
Finally, the marketing system also includes the internal sphere, which means a clearly defined group of people who show real or potential interest in the enterprise and can have a great influence on it. Among them, organizations or people are distinguished:
– interests that, in principle, coincide with the interests of the enterprise (banks, stock exchanges, financial departments, etc.);
- who may not show interest in the enterprise, but the enterprise is interested in their interest (mass media, information commercial publications, etc.);
- who show interest in enterprises, but in which the enterprise is not very interested (consumer organizations, mass buyer, legislators, etc.).
All this taken together, with all the mutual benefits, is called the marketing system.
We know that marketing in one way or another affects the interests of everyone, be it a buyer, a seller or an ordinary citizen. But these people may have goals that contradict each other.
What should society expect from the marketing system? This question is relevant, because the authorities different levels are increasingly resorting to the regulation of the marketing activities of firms. In some cases, government intervention can literally go to extremes.
In India, some government officials would like to ban branding of sugar, soap, tea, rice and other staples. They argue that brand naming, packaging, and advertising drive up the retail price of goods.
In Norway, some government officials are calling for a ban on personal ownership of certain "luxury items" such as swimming pools, tennis courts, airplanes and luxury cars. In their opinion, Norway's resources are too limited to be spent on such purposes. These officials advocate "collective consumption" expensive goods and services.
In the early 1970s, the Federal Trade Commission took a series of measures to ensure "advertising truth." The provision on the justification of advertising requires that firms be prepared to provide documentary evidence of any content contained in advertisement statements. The Correctional Advertising Regulation requires a firm guilty of spreading a false statement to spend 25% of its advertising budget on messages that clarify the actual state of affairs. The counter-advertising provision makes it easier for anti-product groups (eg anti-smoking groups) to have access to the media to express their opinions.
The likely and already ongoing tightening of marketing regulation on a worldwide scale leads to the most essential question: what is the true purpose of the marketing system? Four alternative responses are offered: achieving the highest possible consumption; maximum customer satisfaction; presentation of the widest possible choice; maximizing the quality of life.
Achieving the highest possible high consumption
Many business leaders believe that the purpose of marketing is to facilitate and stimulate the highest possible consumption, which in turn creates the conditions for maximum growth in production, employment and wealth.
Behind all this lies the claim that the more people buy and consume, the happier they become. However, some doubt that the increased mass of material goods brings with it even more happiness.
Achieving maximum customer satisfaction
According to this point of view, the goal of the marketing system is to achieve maximum customer satisfaction, and not the maximum possible level of consumption. Consumption a large number chewing gum or owning a larger wardrobe only means something if it ultimately leads to greater customer satisfaction.
Unfortunately, customer satisfaction is difficult to measure. First, no economist has yet figured out how to measure overall satisfaction with a particular product or a particular marketing activity.
Second, the immediate satisfaction that individual consumers derive from specific "goods" does not take into account "evils" such as pollution and damage to the environment.
Third, the degree of satisfaction experienced by the consumer of certain goods, such as status items, depends on how few others have those goods. Therefore, it is difficult to evaluate the marketing system on the basis of the indicators of satisfaction that it brings to the public.
Providing the widest possible choice
Some marketers believe that the main goal of the marketing system is to provide the greatest possible variety of goods and provide the consumer with the widest possible choice. The system should give the consumer the opportunity to find products that best suit his taste. Consumers should be able to improve their lifestyle as much as possible, and, therefore, get the most satisfaction.
Unfortunately, maximizing consumer choice comes at a cost. First, goods and services will become more expensive as big variety will cause an increase in the costs of their production and maintenance of stocks. Higher prices will lead to a decrease in real incomes of consumers and the scale of consumption. Secondly, increasing the variety of products will require the consumer more time and effort to get acquainted with various products and evaluate them. Thirdly, the increase in the number of goods does not at all mean for the consumer an increase in the possibility of a real choice. There are many brands of beer in the United States, and most of them taste the same. When within a product category there are many branded products with minor differences from each other, this situation is called branded abundance and the consumer is presented with an imaginary choice. And, finally, consumers themselves do not always welcome a wide variety of goods. Some, when faced with an excess of choice in certain product categories, experience a feeling of confusion and anxiety.
Maximizing the quality of life
Many believe that the main goal of a marketing system should be to improve the "quality of life". This concept consists of: 1) the quality, quantity, assortment, availability and cost of goods, 2) the quality of the physical environment and 3) the quality of the cultural environment. Supporters of this view tend to evaluate the marketing system not only by the degree of direct consumer satisfaction it provides, but also by the impact that marketing activities have on the quality of the physical and cultural environment. Most agree that for the marketing system, improving the quality of life is a noble goal, but recognize that this quality is not easy to measure, and its interpretations sometimes contradict each other.
Many people think that marketing is only for large companies in the developed capitalist countries. In fact, it is used within and outside of business in all countries.
7.Marketing environment: concept, components
The firm's marketing environment is a set of active actors and forces operating outside the firm and influencing the ability of marketing management to establish and maintain successful collaborative relationships with target customers. The marketing environment is made up of a micro-environment and a macro-environment. The microenvironment is represented by forces that are directly related to the firm itself and its customer service capabilities, that is, suppliers, the firm itself with its internal environment, marketing intermediaries, customers, competitors and contact audiences. The macroenvironment is represented by the forces of a wider social plan that influence the microenvironment, such as demographic, economic, natural, technical, political and cultural factors. Let's characterize each of the components of the marketing environment.
Table 1
Factors of the marketing environment of the company and their characteristics
| Marketing Environment Factors | Characteristics of the factors of the marketing environment |
| Marketing microenvironment | |
| 1. Firm | top management of the company, financial service, R&D service, logistics service, manufacturing, etc. |
| 2. Suppliers | Business firms and individuals providing the company material resources necessary for the production of a particular product. |
| 3. Marketing intermediaries | Firms that help a company promote, market, and distribute its products to customers (wholesale and retail resellers, distribution firms, marketing services agencies, and financial institutions). |
| 4. Clientele | The main types of clients of the firm are: the consumer market, the manufacturer's market, the reseller market, the public institutions, international market. |
| 5. Competitors | The main types of competitors in marketing: desires-competitors (alternative options for consumer behavior); commodity-generic competitors (alternative ways to satisfy a specific desire), commodity-species competitors (other varieties of the same product that can satisfy a specific desire of the buyer); competing brands (different brands of the same product that can satisfy the desire of the consumer). |
| 6. Contact audiences | Any groups that have an actual or potential interest in the organization or influence its ability to achieve its goals. Types of contact audiences: financial circles, media contact audiences, government contact audiences, civic action groups, local contact audiences (the public), the general public, internal contact audiences (own workers and employees). The contact audience can be beneficial (sponsors), desired (whose support the firm seeks) and undesirable (societies or consumer groups that boycott the firm's products). |
| The macro environment of the firm | |
| 1. Demographic environment | Population size, birth rate and death rate, age and sex composition of the population, urbanization process, population migration, changes in the way of family life (crushing of family cells, etc.), etc. |
| 2. Economic environment | Type of economy, income level and distribution, economic dynamics, industrial efficiency, financial dynamics, state intervention in the economy, external orientation (orientation to the external market), investment orientation, socio-economic consensus and stability, current price level, inflationary processes, structure consumer spending and savings, etc. |
| 4. Natural environment | The presence and scarcity of the main types of raw materials, the threat of their (resources) exhaustibility, the processes of rising energy prices, the growth of environmental pollution, state policy in the field of rational use and reproduction of natural resources. |
| 5. Scientific and technical environment | The state of engineering and applied science, the acceleration of scientific and technological progress, the emergence of new opportunities (biotechnology, robotics, etc.), the dynamics of R&D allocations, state control for the quality and safety of goods. |
| 6. Political environment | Lawmaking in the framework of business regulation, antimonopoly regulation, increased requirements from state institutions that monitor compliance with laws, the political system in the country (parties, movements, lobbying, oligarchy), political and legal stability in the country. |
| 7. Cultural environment | Faith (religion and its significance in people's lives), art, morality, morality, censorship, customs and traditions in the country, cultural institutions and their support from the state, etc. |
In this way, marketing environment consists of areas in which the company must look for new opportunities and monitor the emergence of potential threats.
8. Marketing policy of the enterprise
As you know, the marketing policy of the enterprise includes commodity,
pricing, marketing policy, as well as the policy of promoting goods on the market.
It is according to this scheme that the policy of the enterprise will be outlined: from the choice
product, determining its price, various methods sales to the final stage -
promotion of goods, the stage at which the profit of the enterprise is increasing from
sale of goods.
Commodity policy of the enterprise.
At this stage, marketers, using market research, competitors and
consumers, develop a program of action for the enterprise in the field of
production of goods (assume which goods will be used
maximum demand, meet the needs of the buyer, determine
its quality compared to competitors), set the rules for
creation of new products, predict the life cycle of the product. So more
details about commodity policy.
Enterprise pricing policy
The pricing policy of the enterprise includes issues of wholesale and retail
prices, all stages of pricing, tactics for determining the initial commodity prices,
price correction tactics. Solving these questions, marketers set on
goods the most favorable price, which helps to improve profitability
Sales policy of the enterprise
The distribution system of goods is one of the most important in marketing policy.
enterprises. In marketing policy, marketers touch upon issues of choice
the most optimal distribution channel, the method of marketing the goods, which, when
effective use will undoubtedly increase the company's profits.
Marketing promotion goods
Promotion refers to the totality various kinds activities
to bring information about the merits of the product to potential
consumers and stimulate their desire to buy it.
Modern organizations use complex communication systems to
maintaining contacts with intermediaries, clients, various public
organizations and layers.
Product promotion is carried out by using in a certain
sales and public relations methods.
9.Marketing concepts are the initial positions characterizing the active orientation market activity enterprises at various stages of its development. The concepts of production, commodity, marketing, consumer, as well as integrated, strategic and social-public orientation are distinguished.
1. The production concept was focused on reducing the costs associated with the release of goods and increasing labor productivity.
2. Commodity concept of marketing. Based on the favorable attitude of the consumer to the product. The goal was to produce as much as possible more items, and then by all means force the consumer to buy them (XIX-XX centuries).
3. The sales concept is based on the fact that buyers will buy the offered goods if they make certain efforts in the process of selling them.
All these concepts came from the need to solve the problems of production and the seller. A fundamentally new stage was the orientation to the needs of the buyer, to the solution of his problems (20-30s).
4.Consumer (market) concept of marketing (50s). It means, first of all, the subordination of production, trade and all other activities of the enterprise to the requirements of the market. This approach is based on the definition of needs and real consumer assessments of the range and quality of goods, recognizing the need to adapt production and marketing to these needs. The consumer becomes the main object of market activity, and now the enterprise proceeds from the fact that it is possible to make a profit only through the creation and maintenance of consumer satisfaction.
5. Integrated marketing. Assumes both a focus on a new product and on the consumer. This makes it possible to significantly reduce the risk in the production process.
6.Strategic marketing, which is based on consumer and competitor orientation. Its content is to meet the needs of consumers while achieving superiority over competitors by creating a product with better quality parameters or setting a lower price.
7. The concept of public marketing. It is aimed at satisfying not only the individual needs of the individual, but also the whole society. There is a kind of coordination and linking of the profit of the enterprise, the needs of the buyer and the interests of society.
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| Definition of the current situation (mission and business content) | | | Organization of the educational process. Section 2. Systems and characteristics of marketing 2.1. Marketing system. 2.2. Principles, goals, objectives and functions of marketing. 2.3. Characteristics of the types of marketing. 2.4. Marketing Complex. 2.5. Marketing environment. 2.1. Marketing systemThe concept of a marketing system is private in relation to general concept systems. System - a complex of subsystems, elements, components and their characteristics, the interaction between which and the environment determines the formation of a qualitatively new integrity. Marketing is applied regardless of the degree to which market relations are developed, since it acts as a real system that links the internal and external activities of the company, and also coordinates the interaction of all subjects included in the marketing system. The marketing system can be represented as a diagram shown in Fig. 2.1. Marketing system- this is a set of socio-economic subjects (elements) of the market environment, each of which has independence and integrity, is in continuous interaction regarding the formation and development of demand for goods and services in order to make a profit and meet the needs of a partner in the established chain of their communications. The marketing system includes various elements, which include: suppliers, competitors, intermediaries, consumers and an enterprise whose activities are the subject of research or analysis. The formation and functioning of the marketing system takes place in a certain environment, which is created under the influence of factors and conditions of the market space and disturbances from socio-economic, political, cultural, demographic and environmental factors. A developed market environment is a prerequisite for the effective functioning of the marketing system.
Within the framework of a single enterprise, the following marketing systems are distinguished: − marketing Information system; − marketing means system (marketing mix); − marketing management system. Marketing Information System - a set of structures, procedures and methods designed to systematically collect, analyze and use the firm's internal and external marketing information. Marketing media system (marketing mix) - a set of techniques and methods, specific tools that the company uses to achieve its goal, solve the relevant market tasks in order to better meet the needs of target markets. Marketing Management System includes three interrelated elements: marketing planning, marketing service organization and marketing control. 2.2. Principles, goals, objectives and functions of marketing The following can be distinguished basic principles marketing: 1. Careful consideration of the needs of the consumer, the state and dynamics of demand, business conditions. 2. Creation of conditions for maximum adaptation of production to the requirements of the market, to the structure of demand, based on a long-term perspective. 3. Informing potential consumers and influence them with the help of marketing tools. Marketing objectives are grouped into five groups: − market (market share, market conquest, identification of promising markets); − marketing (creating the image of the company, activities to form public opinion, sales volume, profit volume, competition); − structural and managerial (improvement management structures); − providing (pricing policy, sales promotion, consumer properties of goods, product distribution parameters); − activity control. − reducing excessive costs in market communications; − elimination of unreliable goods; − introduction of product packaging that would comply with the environmental sky requirements. The marketing activity of an enterprise can be represented as a sequence of four stages, each of which includes a certain group of functions. Stages of marketing activities (marketing functions): 1. Market Opportunity Analysis: − analysis of marketing environment factors; − planning, collection, processing, analysis of marketing information; − market research; − analysis of the competitive environment; − study of consumer behavior; − company microenvironment diagnostics. 2. Choice of target markets: − market segmentation; − assessment of market segments; − product positioning. 3. Marketing mix development: − development of new products; − determining the type of demand for goods; − formation of competitive advantage; − stage definition life cycle goods; − development of a strategy for trademarks, packaging, service; − determination of the pricing policy; − determination of the policy of distribution of goods; − definition of promotion policy (communications). 4. Marketing Management − making strategic marketing decisions; − marketing planning; − creation of organizational forms of management; − control. 2.3. Characteristics of the types of marketing The typology of marketing types is currently unsettled. However, it is possible to single out the main types of marketing according to certain classification criteria (Table 2.2). Table 2.2 - Classification of types of marketing
Consider all of these types of marketing in more detail. depending from targeting marketing activities Distinguish: product-oriented marketing; consumer-oriented marketing; mixed marketing. Product oriented marketing applies when The activity of the enterprise is aimed at creating a new product or improving the product. The main task in this case is to encourage consumers to purchase new or improved products. Consumer oriented marketing is used if the activity of the enterprise is aimed at meeting the needs directly emanating from the market. Here the main task of marketing is the study of potential needs, the search for a market “niche”. Marketing activity focused on the product and the consumer is called mixed marketing. depending from scope Distinguish: marketing of consumer goods; marketing of industrial goods; trade marketing. Consumer Product Marketing aimed at individual consumption. Despite the difference between separate categories goods, all types of marketing of consumer goods are characterized by the following features: − originality of demand (need); − a large share of individuality in decision-making; − multi-stage indirect marketing; − anonymity of the market contact. Marketing of industrial goods (industrial marketing) is engaged in the sale of factors of production - investment goods. Features of marketing goods for industrial purposes require the following factors to be taken into account: − production necessity, i.e. demand and needs for final products (consumer goods) for the production of which an investment product is used; − collectivity and formality of decision-making in the sphere of acquisition of investment goods; − relatively small compared to consumer goods, the number and high concentration of demand carriers; − direct process of negotiations and transactions; − special accents when using marketing tools (commercial credit, special terms of delivery and payments). Essence trade marketing is to treat the merchant not as a competitor and not as a partner in the distribution channel, but as an intermediary client. The process of implementing the principles of trade marketing includes four main stages: − needs analysis: understand how traders work and their expectations; − segmenting merchants or highlighting merchants with the same needs and expectations; − selection of the target segment, a priority for the manufacturer; − development of a proposal adapted to target segment(segments). AT depending on the period of time for which the marketing policy of the enterprise is being developed, they distinguish: strategic marketing, tactical marketing, operational marketing. Strategic Marketing - marketing, which develops and implements the general program of actions of the enterprise for a period of more than 5 years; its goal is the efficient allocation of enterprise resources to reach the target market. Tactical Marketing- a type of marketing, the task of which is to create an enterprise action program on the market for a period of not more than 5 years. Operational Marketing- marketing that develops and implements a marketing mix toolkit for a period of up to one year. At the operational level, the current tasks put forward by market conditions are solved. The unconditional requirement is that even these short-term tasks should not contradict the long-term strategic goals of the company. Demarketing is aimed at reducing the demand for goods or services that cannot be satisfied due to insufficient level of production possibilities, limited commodity resources. The main demarketing tools are a significant increase in prices, the cessation of advertising work. Its purpose is not to eliminate demand, but only to reduce its level. Supportive Marketing is used in conditions when demand is active, stable, then measures are taken to support this nature of demand. Counter marketing implemented in order to ensure the well-being of the consumer in the event that the product does not meet the requirements of scientific and technical progress, environmental protection, rational use of material resources. Used when the demand is considered irrational. Depending on the applied concept of marketing management howl activities at the enterprise There are the following types of marketing: production, product, marketing, market. Production Marketing– marketing, which is considered considers the production process (production volumes, labor productivity, production costs) as the main way to achieve commercial success in the market; effective in a market where demand exceeds supply (manufacturer's market). Product Marketing- marketing, which focuses the entrepreneur's attention on quality, functional characteristics, product cost (commodity policy) as the main tool for achieving commercial success. sales marketing- marketing, which uses a system of methods for the sale of goods and services as the main way to achieve commercial success in the market.
Market Marketing- marketing, which focuses the attention of the entrepreneur on better and more complete satisfaction of the needs of the market as the main tool for achieving commercial success. AT depending on the degree of coordination performed at the enterprise functions distinguish between integrated and non-integrated marketing. AT integrated marketing close coordination, coordination and harmonization of all marketing functions enterprises. AT non-integrated marketingall functions of marketing activities are carried out by various departments of the enterprise (sales, prices, technical information, advertising, etc.). AT depending on the ultimate goal of marketing activities businesses distinguish between commercial and non-commercial marketing. Marketing in the commercial field of activity or marketing commercial organizations engaged in entrepreneurial activities for the purpose of generating income (profit). Marketing in a non-profit field of activity or brand- ting non-profit organizations, or social marketing, associated mainly with the creation of a positive public opinion in relation to a particular organization or individual. AT Depending on the types of products, there are: marketing of goods and marketing of services. Product Marketing explores the characteristics of the organization effective sales and ensuring the profitability of entrepreneurial activities of various profiles of enterprises, depending on the characteristics of the products. Service marketing. Its object is services that have a number of features that are taken into account when conducting marketing research: − abstractness, intangibility of the result;
− inability to store and store; − only in exceptional cases transportable result; − often one-time, individual provision; − difficult to standardize result. AT Depending on the level of tasks to be solved, micro- and macromarketing are distinguished. Micromarketing is a form target marketing, the practice of tailoring products and marketing programs to the needs and demands of well-defined and fairly narrow geographic, demographic and behavioral segments. Problems macromarketing as opposed to problems micromarketing should be considered from the point of view of the interests of society and the country as a whole. AT depending on the degree of differentiation of marketing functions tions are distinguished: global, differentiated, narrowly targeted marketing, individual marketing. They are also targeted marketing strategies. Global (undifferentiated, mass) marketing - Related Articles Latest Articles
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