Marketing activities of enterprises include marketing research. Marketing research represents the systematic collection, processing and analysis of all aspects of the marketing process, namely: product, market conditions, competitors, sales methods and techniques, pricing systems, sales promotion measures, demand generation systems, etc.
Marketing in modern conditions is necessary at all stages of the operation of an enterprise. It happens that enterprises, in order to save money, refuse marketing research. According to experts, the losses from this significantly exceed the costs of research.
The main objective of marketing research is comprehensive market research. Market research consists of two main blocks: the study of general economic conditions and the conditions of a specific market.
The study of general economic conditions involves tracking and detailed consideration of the processes and changes occurring in the national economy of a particular country, the economic community or the world economy as a whole, and contains an analysis of the main macroeconomic proportions and trends.
The study of commodity market conditions includes an analysis and forecast of the state of the market for a specific product and involves the study of industries and consumption of products, their interrelations.
To study market conditions, a wide range of indicators is used, which can be grouped into the following main groups:
- 1) Production indicators - volume and dynamics of production for the industry as a whole; rate of product renewal; volume and dynamics of real investments; information about the order portfolio;
- 2) Indicators of domestic trade turnover - the turnover of wholesale and retail trade, which allows us to assess changes in effective demand for products for industrial, technical and consumer purposes; sales volumes of the largest wholesale and retail trade enterprises; cost of living indices; consumer costs (volume and structure); volume of consumer credit; data on domestic cargo transportation;
- 3) Indicators of foreign trade - physical and value volumes, indices of foreign trade turnover; volume of exports, imports, their indices; geographical distribution of exports, imports; trade balance; commodity structure of exports, imports; specific gravity countries in world exports, imports;
- 4) Indicators of dynamics and price levels - wholesale price index; aggregate wholesale price index;
- 5) Financial indicators - issue of securities; stock prices of enterprises dominating in the industry; NBU refinancing rate; inflation rate; exchange rates; loan interest; bank deposits.
To assess competitors, you need to collect the following information:
- 1) Product range, main products or groups of products, areas of specialization;
- 2) Nomenclature of exports and imports, the company’s place in the world market for the most important goods;
- 3) Composition of governing bodies; organizational management structure;
- 4) Production and material and technical base of enterprises, the number and location of enterprises, their capacity, the number and location of sales organizations, service stations;
- 5) Number of employees in the company;
- 6) Key indicators financial condition enterprises over a number of years; assets, sales volumes, net profit, investments, etc.;
- 7) Production, technical and other connections with other enterprises.
After this it is advisable to comparative analysis competitors to develop enterprise strategy. Identification of current and potential competitors is based on two approaches. The first is related to the assessment of the needs satisfied in the market by the main competing firms. The second focuses on classifying competitors according to the types of market strategies they employ.
In the first approach, we identify the following main groups of competitors:
- 1) Firms that offer a similar type of product in the same markets;
- 2) Firms serving other markets for similar products whose entry into this moment, on this market is likely;
- 3) Firms producing substitute products that can displace this product from the market.
Identifying competitors based on groupings by strategy type is a widely used method. At the same time, the strategy in the field of expansion in the market, strategy in the field of pricing policy and quality policy, and strategy in the field of technology are examined.
The results of the study of competing forms should be an assessment of the strengths and weaknesses of their activities (SWOT analysis).
The main task of comprehensive market research is to study demand. Demand determination includes an assessment of the magnitude and structure of actual demand, and a prospective assessment of market demand. The first step in determining current actual demand is to determine it for the year preceding the year of research, or for several previous years. Since market demand is influenced by many factors, to forecast it it is necessary to identify the key factors that determine the dynamics of demand and assess the degree of their influence on demand.
The most common methods for determining future needs are considered normative, statistical-extrapolation and the method of expert assessments. It is advisable to combine these methods, which will reduce the error compared to using each method separately.
After calculating the needs, the intragroup structure of needs is determined (by individual types, brands).
Analysis of consumer millet requires the study of the most important demographic factors influencing the state of demand and its dynamics, namely: the population of the country or segment, the birth rate, the age composition of the population, and the geographical distribution of the population.
When analyzing purchasing power, the level of income of the population, the volume and conditions for providing consumer credit, the amount of savings of the population, level of education and professional composition are determined.
The system of indicators necessary to analyze consumer requirements for a product and consumer preferences includes General requirements consumer to the product: the novelty and technical level of the product, workmanship, uninterrupted operation, the level of after-sales and technical service and the nature of the services provided, the ratio of the price of the product and the beneficial effect of its use.
An important component of the market research process is supply analysis. To assess supply, a number of indicators are used: quantitative assessment of the supply of a competing product; the share of enterprises - the largest suppliers of goods to the market and assessment of their production areas; structure of offers on the goods market; price level for goods.
The actual market share is determined by the ratio of the actual sales volume of a given company to the total sales volume for a particular market.
From annual reports of companies and periodicals, information is also obtained about the plans and programs of individual companies on R&D costs, expansion of production capacity and modernization of production.
When analyzing the offer of a specific product important has a study of development trends in the relevant world market. Firms are conducting research to identify prospects for scientific and technical progress; much attention is paid to expected discoveries that could lead to significant changes in the field of production on the world market.
To analyze product supply, the following sources of information are used:
- 1) Analytical review special books and magazines;
- 2) Studying competitors' advertising;
- 3) Study of publications of patent services;
- 4) Viewing the daily economic press;
- 5) Visiting fairs and exhibitions;
- 6) Watching special television programs;
- 7) Conversation with suppliers and clients
- 8) Studying published market research data.
Strategic planning is the management process of creating and maintaining a strategic fit between a firm's goals, capabilities and marketing opportunities.
At the same time, it is important to consider the assessment of the potential external and internal production and resource capabilities of the enterprise. When there is a gap between a firm's goals and its potential capabilities, it can be filled in three ways. The first is intensive development associated with identifying future opportunities that are embedded in the current system and marketing management structure. The second - integrated (comprehensive) development, involves opportunities that need to be identified or created in the process of ongoing business. The third - diversification development, means identifying opportunities that are not related to the company's current business.
Advantages strategic planning are that it forces managers to constantly think forward and promotes clear coordination of the use of resources and efforts of the company.
To successfully ensure the strategic planning process it is necessary:
- 1) Clearly define the goals of the company;
- 2) Take into account external and internal factors, assess their impact on the company’s activities during the period under review;
- 3) Reach agreement between different departments on common strategic goals, tasks, and specific methods;
- 4) Based on the fact that flexibility, adaptability, and capacity for strategic planning of a company’s activities on a company scale depend on the participation of the largest number of employees at all levels in the strategic planning process.
The planning process goes through four stages:
- 1) Development of common goals;
- 2) Definition of specific, detailed goals and objectives for a given period of time;
- 3) Determination of ways and means to achieve them;
- 4) Monitoring the achievement of set goals by comparing planned indicators with actual ones.
Planning is always guided by data from the past, but strives to determine and control the directions of development in the future. Therefore, the reliability of planning depends on the accuracy and correctness of accounting calculations for previous periods.
The basis for specific areas of production activity of the enterprise are individual tasks, which are defined both in cost and in quantitative terms. In this case, planning should start from the so-called bottlenecks: Lately at Ukrainian enterprises these are sales, finance and quality labor.
The strategic marketing plan covers all areas of enterprise activity, ensures that each division defines clear goals in interaction with the general objectives of the company, and fulfills whole line other functions.
The strategic planning process consists of six interrelated stages or elements:
Defining the organization's objectives;
Setting marketing goals;
Situational analysis;
Marketing strategy development;
Implementation of marketing tactics;
Observation of results.
Although each planning stage has specifics for individual types organizations, but the use of such planning is clearly useful for all types.
Defining the organization's objectives. The organization's objectives relate to its long-term orientation to any activity and its corresponding place in the market. They are complex and formalized.
Setting marketing goals. Each department in the enterprise must set its own goals marketing activities. They are usually defined both in quantitative terms (sales volume in conventional units, percentage of profit growth, market share) and in qualitative terms (innovation, position in the industry). There is a strong trend among organizations to combine quantitative and qualitative indicators.
Through the process of situational analysis, an enterprise identifies marketing opportunities and challenges it may encounter. Sometimes a situational analysis shows that, despite the firm's efforts, it should abandon the production of this group of goods.
Marketing strategy determines how the marketing structure must be applied to attract and satisfy target markets and achieve the goals of the enterprise. Marketing structure decisions focus on product planning, sales, promotion and price. Every part of the organization needs a strategy, and these strategies need to be coordinated.
Tactics are specific actions that are taken to implement a given marketing strategy. This takes into account two important marketing decisions related to the level of investment in marketing activities and the timing of marketing activities.
Monitoring results involves comparing planned indicators with actual indicators, that is, with actual achievements over a certain period of time. To do this, you can use budgets, time schedules, sales data and cost analysis. If actual performance lags behind plan, then appropriate measures must be taken after the areas where problems arise are identified.
In some cases, plans have to be revised due to the impact on sales and costs of changing factors that are not controlled. Some forward-thinking companies are developing plans that provide in advance for a number of actions and measures to be taken in the event of the listed changes in considered and unaccounted factors.
Thus, we can conclude that every enterprise must have a systematic marketing plan, in which all its components must be integrated, coordinated and coordinated. A coherent plan is clarity in setting goals, precise definition of your markets, a logical combination of long-term, medium-term and short-term plans. At the same time, all marketing management functions must have reliable, accurate and timely communication.
Zhulikova O.V., Reshetnikova E.O.
The current state of the domestic market is characterized by a high degree of dynamism, variability of conditions, and requires enterprises to apply management concepts that will allow them to successfully compete and realize their potential. This management concept is marketing, which provides an integrated approach to enterprise management. But Russian practice shows that at the level of small and medium-sized enterprises there are serious problems associated with ineffective marketing, primarily due to the level of training in the field of marketing of the management of small enterprises. At the same time, there is a meaningful desire by management to improve the quality of management of marketing activities. One of the most important elements of management is the analysis of marketing activities. But the most “bottleneck” of the analysis is the selection of methods for analyzing marketing activities, without which it is impossible to assess the degree of compliance of marketing strategy and tactics with the state of the competitive environment. Therefore, despite the variety of methods for analyzing marketing activities, there is a problem of choosing the direction and method of analyzing marketing activities, especially in relation to small enterprises. One of possible ways The solution to this problem is to develop a methodology for selecting and evaluating the use of methods for analyzing the marketing activities of an enterprise.
Development of a methodology for selecting and evaluating the use of methods for analyzing the marketing activities of small retail enterprises
Marketing management in an enterprise includes four main elements of management: analysis, planning, motivation and control. The article focuses specifically on analysis as a basic element of managing marketing activities.
First of all, it is necessary to consider the basic definitions included in the title of the work.
Marketing activities are activities related to the implementation of marketing functions in order to generate and reproduce demand and ensure the company’s profit.
Analysis of marketing activities - assessment, explanation, modeling and forecast of processes and phenomena of the product market and the activities of the enterprise itself using economic, statistical and other research methods.
The quality of analysis of marketing activities depends on the methods of analysis. The method of analysis is a way of studying economic processes and the results of enterprises' activities based on special techniques and methods of analysis.
Based on the terms presented above, the work proposed defining such a definition as “method of analysis of marketing activities,” since an analysis of sources and methodological materials revealed the lack of a definition of this term.
Marketing activity analysis method- a way to study, measure and generalize the processes and phenomena of the commodity market and the influence of various factors on changes in the results of an enterprise’s activities in order to improve them.
Selection correct method analysis is a very important and serious task, since the results of the analysis depend on it, on the basis of which all further decisions are made to manage the marketing activities of the enterprise. When considering various sources, as a rule, several areas of analysis of marketing activities are identified, while in the considered theoretical works there is no clear correspondence between the areas and methods of analysis of marketing activities. Nuraliev S.U. highlights such main areas of research as the market and its forecasting, the structure of market participants, consumers and demand, goods and assortment, product price, competitors and the external environment, sales promotion and advertising, the internal environment and its capabilities, product distribution and sales channels. Missorina M.A. believes that the market, competitors, consumers, prices, and internal potential of the enterprise should be subject to research.
The work examines such main areas of analysis as: market analysis, competitor analysis, product policy analysis, pricing policy analysis, sales policy analysis, communication policy analysis. The first two directions analyze the external environment, the remaining directions were chosen in accordance with the 4P concept: product, price, place, promotion.
For the identified areas of analysis, appropriate analysis methods were selected. Table 1 presents the directions of analysis in accordance with the 4P concept.
Table 1 Directions and methods of analysis taking into account the 4P concept
| Directions of analysis | Analysis methods |
|---|---|
1 Market analysis:
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2 Competitor analysis:
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3 Product policy analysis:
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4 Analysis of pricing policy:
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5 Analysis of sales policy:
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6 Analysis of communication policy:
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Modern marketing theory notes that the 4C concept is most suitable for retail enterprises: Customer needs & wants, Customer Cost, Convenience, Communication. According to V.V. Nikishkin, this is a more progressive approach to the formation of a special trade offer, therefore, the marketing manager of a retail enterprise needs to base the development of marketing activities precisely on the 4C concept.
Table 2 presents the classification of methods for analyzing marketing activities in accordance with the 4C areas, such as: consumer analysis, customer cost analysis, consumer convenience analysis, communications analysis.
table 2 Directions and methods of analysis taking into account the 4C concept
| Directions of analysis | Analysis methods |
|---|---|
1 Market analysis:
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2 Competitor analysis:
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3 Consumer analysis:
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4 Customer cost analysis:
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5 Consumer convenience analysis:
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6 Communication analysis:
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Despite the fact that for a retail trade enterprise it is necessary to study consumers as the main factor influencing the activity of the enterprise, one should not forget about the traditional concept of 4P marketing, because the resource capabilities of the enterprise may not correspond to the possibility of developing a new market segment or introducing new products into the range .
In our work, we proposed a combination of directions in accordance with the concepts of 4P and 4C. Table 3 highlights the areas of analysis and the corresponding methods of analysis based on combining the concepts of 4P and 4C.
Table 3. Directions and methods of analysis of marketing activities
| Directions of analysis | Analysis methods |
|---|---|
1 Market analysis:
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2 Competitor analysis:
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3 Consumer analysis:
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4 Product policy analysis:
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5 Analysis of pricing policy:
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6 Sales policy analysis:
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7 Analysis of communication policy:
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The next methodological task facing the management of the enterprise is to select a specific method from those presented above. To do this, it is necessary to identify criteria for evaluating the analysis method. There are various quantitative and qualitative criteria, but for small businesses the criteria should be simple, intuitive, and applicable to all methods of analysis. The most important criterion should be compliance with the purpose of the analysis. Setting a goal is important First stage any type of activity. The goal becomes the criterion by which the effectiveness of the activity is determined, that is, the effectiveness of the analysis method used is determined by the success in achieving the set goals. Thus, a number of criteria have been identified by which one can evaluate the method of analyzing the marketing activities of small retail enterprises:
- compliance with the purpose of the analysis;
- compliance with resource capabilities;
- level of information reliability;
- cost of the method;
- completeness of information.
Also, to evaluate the analysis method, a scale for converting qualitative assessments into quantitative ones is necessary; in this work, I propose the use of the following scale:
- absolute compliance with the method evaluation criterion – “5”;
- incomplete compliance with the method evaluation criterion – “4”;
- partial compliance with the method evaluation criterion – “3”;
- complete non-compliance with the method evaluation criterion – “2”.
The result of the study is the proposal of an algorithm for selecting methods for analyzing marketing activities for a small enterprise, which is presented in Figure 1.
Picture 1. Algorithm for selecting and evaluating methods for analyzing marketing activities
In order to select a method for analyzing marketing activities, an enterprise must evaluate those analysis methods that are currently used by the enterprise. The evaluation of the methods used is carried out according to several criteria (compliance with the purpose of the analysis, compliance with resource capabilities, cost of the method, level of information reliability, completeness of information) through expert assessments. If the assessment showed that the methods used do not achieve the goal for which the analysis was carried out, are expensive to use, provide insufficiently complete information or information the level of reliability of which can be disputed, then it is necessary to decide on the selection of other methods for analyzing marketing activities. In order to compile a set of methods for analyzing marketing activities, it is necessary, firstly, to identify the most problematic areas of marketing activities, secondly, based on Table 1, to create alternative sets of methods for analyzing marketing activities, and thirdly, to evaluate each of the sets of analysis methods according to the selected criteria and select a set of methods for analyzing marketing activities. Next stage– conducting an analysis of the marketing activities of the enterprise and introducing the results of the analysis into the activities of the enterprise. As noted above, conclusions about the state of the external and internal environment of the enterprise, and, consequently, management decisions aimed at managing the marketing of the enterprise depend on the correct selection of methods for analyzing marketing activities.
Using the proposed methodology for selecting and evaluating methods for analyzing marketing activities using the example of Master LLC
Master LLC is a retail trade company that sells billiard accessories, home lighting, and household furniture. The company is also represented on the Internet in the form of an online store.
In order to select the necessary methods for analyzing marketing activities, first of all, it is necessary to evaluate the currently used methods for analyzing marketing activities.
This company currently uses only one direction of analysis - consumer analysis and one method of analyzing marketing activities - Yandex.Metrica. Yandex.Metrica helps to analyze only consumers, their visits, which pages they come from, which pages they view.
Let's evaluate the use of Yandex.Metrica based on the selected criteria.
Table 4. – Qualitative assessment analysis carried out using Yandex.Metrica
| Criteria for evaluating the analysis method | Qualitative assessment | Expert review |
|---|---|---|
| Fit for the purpose of the analysis | Since this enterprise quite often updates its product range due to an insufficiently stable position in the market, the goals of the analysis should be:
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2 |
| Compliance with resource capabilities | Yandex.Metrica is quite simple method analysis, you only need a computer and access to the network. To use it you do not need to have any special skills; if problems arise while using it, there are “Help” and “Questions and Answers” sections. That is, the method absolutely corresponds to resource capabilities. | 5 |
| Cost of the method | Yandex.Metrica is a free resource, which is a big advantage when assessing costs. | 5 |
| Level of information reliability | Since there is a possibility of error in both the counter and the chance of hitting the page, the information received in Yandex.Metrica cannot be completely reliable. | 4 |
| Completeness of information | In this case, the completeness of the information is related to the purpose of the analysis; if the goal was only to study consumer behavior and website traffic, then the information would be quite complete. Although Yandex.Metrica does not provide information about the preferences and opinions of consumers, for this it would be possible to conduct a survey on the site. But for the intended analysis purposes, the completeness of information reaches only a partial level of compliance. | 3 |
Thus, from this table it is clear that this method of analysis does not require costs and corresponds to the resource capabilities of the enterprise, but at the same time it absolutely does not correspond to the purpose of the analysis, which is the most important factor.
Since the analysis method used does not give complete information to make informed management decisions, it was decided that it was necessary to change the set of methods for analyzing the marketing activities of Master LLC.
In Table 3, 7 main areas of analysis were identified - market analysis, competitor analysis, consumer analysis, product policy analysis, pricing policy analysis, sales policy analysis, communication policy analysis.
The specific conditions of an enterprise’s activity in the market require the selection of only four areas of analysis of marketing activities: consumer analysis; supplier analysis; competitor analysis; analysis of product policy.
Since the management of the enterprise makes decisions to expand the range only on the basis of existing suppliers and established relationships with them, analysis of the activities of suppliers can be excluded.
Analysis of consumer behavior and drawing up a portrait of consumers is carried out using Yanedex.Metrica, but it is also necessary to analyze consumer preferences.
Thus, the objectives of the analysis are:
- identification of consumer preferences;
- competitor research;
- study of the assortment.
To select specific methods of analysis, we will compose a set of alternatives for using methods for analyzing the marketing activities of Master LLC. The evaluation of sets is carried out according to previously identified criteria.
From this table it can be seen that the most suitable is set 3, because it has the maximum rating, that is, it most fully meets the requirements and capabilities of the enterprise.
Table 5.– A set of alternatives for using methods for analyzing the marketing activities of Master LLC
Thus, to identify consumer preferences, we will use a survey, since this is the most inexpensive method presented, especially if it is conducted on the company’s website.
To analyze competitors, we will use such an analysis method as constructing a map of strategic groups of competitors, because of all the listed methods of analysis presented in Table 3, this method allows us to analyze all areas of activity at once, in our case these are three areas - lamps for the home, household furniture and billiard accessories.
The third purpose of the analysis is to study the product range. This analysis can be carried out using three methods - the BCG matrix, XYZ analysis and ABC analysis. We cannot be sure of the reliability of the information when calculating the market share of the main competitor, so we exclude the BCG matrix. XYZ analysis is more suitable for optimizing inventory. Therefore, we will use ABC analysis.
Thus, having determined the necessary areas of analysis and selected specific analysis methods, an analysis of the marketing activities of Master LLC was carried out based on a compiled set of methods for analyzing marketing activities.
Firstly, in order to check the correctness of introducing such a product category as furniture into the assortment, an ABC analysis was carried out.
Table 6.– Results of ABC analysis
ABC analysis confirmed the correctness of the management decision, made on an intuitive level, since the furniture is included in group A.
Secondly, to determine the development prospects of Master LLC, a map of strategic groups of competitors was built. This method of analysis allowed us to conclude that the company can try to occupy the furniture segment with low prices, since there is only one direct competitor. Let's build a map of strategic groups of competitors for Master LLC (Figure 2).
Figure 2.– Map of strategic groups of competitors
Thus, this method of analysis allowed us to conclude that the company can try to occupy the furniture segment with low prices, since there is only one direct competitor.
Thirdly, an analysis of consumer preferences was carried out, which showed that consumers are interested in dacha and garden furniture, sofas and beds at low and medium prices.
The compiled set of methods for analyzing marketing activities in three areas allows us to conclude that it is necessary to enter the low-price segment with the offer of sofas, beds and country and garden furniture.
Thus, the methodology proposed in the work for selecting and evaluating methods for analyzing marketing activities makes it possible to improve the quality of the marketing activities of a small enterprise through a more accurate and complete analysis of the external and internal environment of the enterprise.
Conclusion
The theoretical foundations of the analysis of marketing activities are considered and criteria for evaluating methods for analyzing the marketing activities of a retail enterprise are highlighted. One of the main tasks of the marketing department is, without a doubt, the analysis of marketing activities. The quality of analysis of marketing activities depends on the methods of analysis. Selecting the right analysis method is a very important and serious task, since the results of the analysis depend on this, on the basis of which all further decisions are made to manage the marketing activities of the enterprise. Marketing analysis means collecting information about the activities of an enterprise, studying it in its main areas, and using the results obtained to select directions for business development as a whole and its individual components.
Currently exists a large number of marketing analysis tools, so an enterprise may have the problem of selecting the most suitable method for analyzing marketing activities. For this purpose, the work proposed a methodology for selecting and evaluating methods for analyzing marketing activities.
In order to select a method for analyzing marketing activities, an enterprise must evaluate those analysis methods that are currently used by the enterprise. The evaluation of the methods used is carried out according to several criteria (compliance with the purpose of the analysis, compliance with resource capabilities, cost of the method, level of information reliability, completeness of information) through expert assessments. Based on the assessment, a decision is made on the need to change the set of methods used to analyze marketing activities. In order to compile a set of methods for analyzing marketing activities, it is necessary, firstly, to identify the most problematic areas of marketing activities, secondly, based on Table 1, to create alternative sets of methods for analyzing marketing activities, and thirdly, to evaluate each of the sets of analysis methods according to the selected criteria and select a set of methods for analyzing marketing activities.
Conclusions about the state of the external and internal environment of the enterprise, and, consequently, management decisions aimed at managing the marketing of the enterprise depend on the correct selection of methods for analyzing marketing activities.
Based on the proposed methodology, the selection and evaluation of methods for analyzing marketing activities for the small retail enterprise Master LLC was carried out.
Based on the analysis, specific recommendations were given for the implementation of the marketing activities of Master LLC, that is, the developed methodology made it possible to select analysis methods on the basis of which the external environment and capabilities of the enterprise were more fully assessed, which in turn led to the adoption of informed marketing decisions, that is, it improved the quality of management of the marketing activities of the retail trade enterprise Master LLC.
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Introduction........................................................ ........................................................ ............ 3
1. Theoretical foundations of marketing activities.................................... 6
1.1. The essence of the concept of marketing activities of an enterprise.................................... 6
1.2. Factors and indicators that determine the direction of marketing activities 10
1.3. Evaluation and significance of marketing activities.................................................. .. 26
2. Assessment and analysis of the management of marketing activities of Firm "Krug" LLC.................................................... ........................................................ .................... 34
2.1. Characteristics of the economic activities of Firm "Krug" LLC..................................................... 34
2.2. Study of the dynamics of absolute performance indicators of LLC Firm "Krug" 38
2.3. Study of the dynamics of performance indicators of LLC Firm "Krug" 40
2.4. Study of the structure of the product range of LLC Firm “Krug”.................................... 43
2.5. Research on the dynamics of product prices......................................................... ...................... 48
2.6. Study of deal structure................................................................... .................................... 49
2.7. Study of the product distribution system of LLC Firm "Krug" ..................................... 51
2.8. Analysis of the client market................................................................... .................................. 53
2.9. Study of the effectiveness of the product promotion system................................................... 54
Conclusion................................................. ........................................................ .... 59
List of sources and literature used.................................................... 60
INTRODUCTION
Currently, not a single enterprise in the system of market relations can function normally without a marketing service at the enterprise. And the usefulness of marketing is increasing every moment. This happens because the needs of people, as we know, are limitless, and the resources of an enterprise are limited. Each subject has its own needs, which cannot always be satisfied efficiently. Everyone needs their own individual approach. Therefore, in the new conditions, the enterprise that can most accurately highlight and capture the diversity of tastes survives. Marketing contributes to this.
Not all managers now have a clear understanding of the market and the difficulties they may encounter. Under conditions of centralized planning, when supplying manufactured products, managers did not think about sales: the sales network and trade were obliged to accept it. The budget covered the costs of inefficient production and financed capital construction. The main task of enterprise managers was the strict implementation of plans, in the development of which they practically did not participate.
In market conditions, the distribution network may refuse products, the state does not cover losses, banks dictate their terms when issuing loans, and competition inherent in the market appears. An enterprise that is not adapted to market relations can thus quickly go bankrupt. To avoid this, specialists in the field of economic activity need to master management methods and techniques in market conditions.
In a modern country, marketing is just beginning to develop, so the experience of marketing activities of domestic enterprises is very limited. At the same time, they are often guided by the principle “sell what they take, and for any price.” This certainly goes against the very idea of marketing.
The implementation of strategic investment policy and strategic marketing is difficult due to the general unstable state of the economy, the uncertainty of the political situation, and the lack of a consistent state investment policy. In this regard, it is necessary to develop more alternative options strategic plans development of the company, more often adjust goals and strategies depending on the new situation. But already now, most managers understand that the success of an enterprise largely depends on effective management, making optimal decisions, market research, and personnel selection. And all this is fully or partially included in the subject area of marketing.
The modern concept of marketing is that all activities of an enterprise are based on knowledge of consumer demand and its changes in the future. Moreover, one of the goals of marketing is to identify unsatisfied customer needs in order to direct production to satisfy these requests. The marketing system makes the production of goods functionally dependent on requests and requires the production of goods in the range and quantity required by the consumer. That is why marketing, as a set of established methods for studying markets, also directs its efforts to creating effective sales channels and conducting comprehensive advertising campaigns.
Interest in such a multifaceted and now so relevant topic as marketing, and it should be noted that every year it becomes more and more, if not global, is growing not only within a single country, but also in the world as a whole. This is explained by the fact that marketing affects the interests of each of us every day of our lives. Whether we're selling a car, looking for a job, raising money for a charity, or promoting an idea, we engage in marketing. We need to know what the market is, who operates in it, how it functions, what its needs are.
As already noted, in conditions of market relations and especially in the transition period to the market, marketing is one of the most important economic disciplines. The effective functioning of the entire national economy depends on how well the marketing system is structured.
The object of the study is LLC Firm "Krug".
The subject of the study is the marketing activities of Krug Firm LLC.
The purpose of this practical work is a study of the marketing activities of Firm Krug LLC and the development of measures to improve it.
In accordance with the goal, the objectives of the work are:
1) provide a theoretical justification for the enterprise’s marketing strategy;
2) analyze the economic activities of LLC Firm “Krug” and marketing activities;
During the internship and when writing the work, literature from domestic and foreign authors was widely used, as well as a number of periodicals on this issue.
1 THEORETICAL FOUNDATIONS OF MARKETING
ACTIVITIES
1.1 The essence of the concept of marketing activities of an enterprise
Experts put a double meaning into the term “marketing”: it is both one of the management functions and an integral concept of management in market conditions. Since marketing is a way of convincing the masses to make a purchase, most people mistakenly equate this concept with sales and promotion. The difference is this: Sales primarily involves face-to-face contact—the salesperson deals with potential buyers. Marketing uses the media and other methods to capture the attention and persuasion of many people - people who may not have any direct contact with anyone in the marketer's company.
One of the leading management theorists, Peter Drucker, puts it this way: The goal of marketing is to make sales efforts unnecessary. His goal is to know and understand the client so well that the product or service will exactly suit the latter and sell itself.
Marketing is a complex, multifaceted and dynamic phenomenon. This explains the impossibility of giving a complete description of marketing that is adequate to its essence, principles and functions in one universal definition.
The term “marketing” originated in the United States at the turn of the 20th century, and marketing began to be considered as a leading management function in the 50s.
Currently, about 2000 definitions of marketing have been put forward, each of which examines one or another aspect of marketing or makes an attempt to comprehensively characterize it.
F. Kotler offers following definition: Marketing is a social and managerial process aimed at satisfying the needs and wants of individuals and groups through the supply and exchange of goods. Key Concepts this definition– needs, requirements and demand; product; costs and satisfaction; exchange, transactions and relationships.
The UK Public Marketing Institute defines marketing as “the management process of identifying, anticipating and satisfying customer requirements and generating profit.” Similar American organizations define marketing in approximately the same categories.
Basic principles follow from the essence of marketing. However, in domestic and foreign literature“Marketing principles” mean quite different things.
Marketing is based on the following principles:
1) produce what the consumer needs;
2) enter the market not with an offer of goods and services, but with means of solving consumer problems;
3) organize the production of goods after researching needs and demand;
4) concentrate efforts on achieving the final result of the company’s production and export activities;
5) use the program-target method and an integrated approach to achieve the goals;
6) apply tactics and strategies for actively adapting the production of goods to the requirements of the market with a simultaneous targeted impact on it in order to cover all links in the chain of promotion of goods to the consumer with marketing;
7) focus the enterprise’s activities not on immediate results, but on the long-term perspective of effective communications based on strategic planning and forecasting the behavior of goods on the market.
Hence, the marketing function includes activities that facilitate the process of marketing and selling products. The marketing function combines the following subfunctions:
Marketing research;
Planning policy in the field of production and product range;
Pricing;
Product promotion;
Product distribution and sales;
Marketing management.
Depending on the scope of action, the following types of marketing are distinguished:
Services Marketing;
Marketing an organization is an activity undertaken to create and maintain a favorable image of the organization;
Marketing of an individual is an activity aimed at creating, maintaining or changing public behavior towards specific individuals. For example, politicians use personal marketing to increase their popularity;
Place marketing is an activity undertaken with the aim, for example, of attracting tourists to holiday destinations, developing residential areas;
Marketing of ideas - activities aimed at vaccinations, reducing the consumption of tobacco products, alcoholic beverages, etc.
From the point of view of stage-by-stage internationalization, domestic and international marketing are distinguished. Domestic marketing includes local marketing when a company enters a local market with a product. National marketing involves a company going beyond the region where it is located and operating throughout the country.
International marketing begins with simple export activities, then includes the creation of subsidiaries, branches, branches in foreign countries and ends with the creation of international corporations with branches scattered throughout the world.
The highest point in the development of international marketing is global marketing, which involves the free movement of goods, labor and capital around the world.
By type of activity there are:
Financial Marketing;
Innovative marketing (in the field of development and implementation of innovations, achievements of scientific and technological progress, know-how);
Industrial (in the field of production and meeting the need for industrial products);
Marketing in the service sector.
The type of marketing is also determined by the state of demand. From this point of view, the following types of demand are distinguished: negative, hidden, falling, irregular, full, excessive, irrational and lack of demand.
Thus, marketing is a system of organizing and managing the production and sales activities of enterprises, studying the market in order to create and satisfy demand for products and services and make a profit.
1.2 Factors and indicators that determine the direction of marketing activities
Marketing activities are a set of activities focused on researching issues such as:
Analysis of the external (in relation to the enterprise) environment, which includes markets, sources of supply and much more. The analysis allows us to identify factors that contribute to or hinder commercial success. As a result of the analysis, a data bank is formed for making informed marketing decisions;
Analysis of consumers, both current (current, buying the company’s products) and potential (who still need to be convinced to become relevant). This analysis consists of studying the demographic, economic, geographic and other characteristics of people who have the right to make purchasing decisions, as well as their needs in the broad sense of this concept and the processes of purchasing both our and competing products;
Studying existing and planning future products, that is, developing concepts for creating new products and/or modernizing old ones, including their assortment and parametric series, packaging, etc. Outdated goods that do not provide a given profit are removed from production and export;
Planning of product distribution and sales, including the creation, if necessary, of appropriate distribution networks with warehouses and stores, as well as agent networks;
Providing demand generation and sales promotion (FOSSTIS) through a combination of advertising, personal selling, prestigious non-profit events (“public relations”) and various kinds economic incentives aimed at buyers, agents and direct sellers;
Ensuring pricing policy, which consists of planning systems and price levels for exported goods, determining the “technology” for using prices, loan terms, discounts, etc.;
Satisfaction of technical and social norms the country importing the goods of the enterprise, which means the obligation to ensure adequate levels of safety in the use of the goods and environmental protection; compliance with moral and ethical rules; proper level of consumer properties of the product;
Management of marketing activities (marketing) as a system, i.e. planning, implementation and control of the marketing program and individual responsibilities of each participant in the enterprise, assessment of risks and profits, and the effectiveness of marketing decisions.
To implement the above activities, it is necessary to take into account the large role of those on whom the effectiveness of the marketing strategy essentially depends, namely marketing entities, which include manufacturers and service organizations, wholesale and retail trade organizations, marketing specialists and various consumers. It is important to note that while responsibilities for marketing functions may be delegated and shared different ways, in most cases they cannot be completely neglected; they must be carried out by someone, first of all, by the marketing service.
The marketing process begins with studying the buyer and identifying his needs, and ends with the purchase of goods by the buyer and the satisfaction of his identified needs.
It is also obvious that the type of marketing determines the way it is managed. Marketing management, as defined by F. Kotler, is the analysis, planning, implementation and control of activities designed to establish, strengthen and maintain profitable exchanges with target buyers for the sake of achieving certain tasks organization, such as making a profit, increasing sales volume, increasing market share, etc. .
The task of marketing management is to influence the level, timing and nature of demand in a way that will help the organization achieve its goals.
Simply put, marketing management is demand management. There are five main approaches (concepts) on the basis of which commercial organizations carry out their marketing activities.
1. concept of production improvement;
2. concept of product improvement;
3. concept of intensifying commercial efforts;
4. marketing concept;
5. concept of social and ethical marketing.
These concepts characterize the various periods and major social, economic and political changes that occurred in developed countries in the past century. The dominant trend of the changes that have occurred is a shift in emphasis from production and goods to sales, as well as to the problems facing consumers and society as a whole.
1. Production concept, or concept of production improvement. According to this concept, the consumer focuses on affordable goods that have a low price. Enterprises that adhere to this concept have predominantly serial or large-scale production with high efficiency and low cost, and the sale of their goods is carried out through numerous trading enterprises. The main prerequisites for the existence of this concept of managing marketing activities include the following:
a) most of the actual and potential consumers have low incomes;
b) demand is equal to or slightly exceeds supply;
c) there is a rapid decrease in high production costs(usually for new products), which leads to gaining a larger market share.
The efforts of enterprises following this concept, as a rule, should be aimed at improving the production process, and consequently, at reducing costs and increasing labor productivity and production efficiency.
The production concept is followed by manufacturers who are clearly focused on an industry with good growth prospects, have low diversification and operate under conditions of minimal political and social control.
Diversification is an expansion of the range of products produced and types of services provided based on the simultaneous development of many unrelated industries.
2. Product (product) concept, or the concept of a quality product, or the concept of improving a product. The main idea of this concept is to focus consumers on certain goods or services that are superior in technical characteristics and performance to their analogues and thereby bring more benefits to consumers. At the same time, manufacturers direct their efforts to improve the quality of their goods, despite higher costs and, consequently, prices. Factors that support the existence of such a marketing concept include the following:
a) society needs not quantitative, but qualitative characteristics of the standard of living;
b) instability of the economic situation:
c) inflation;
d) monopolistic market restrictions;
e) rapid obsolescence of goods.
3. The sales concept, or the concept of intensifying commercial efforts, assumes that consumers will buy the goods offered in sufficient quantities only if the company makes certain efforts to promote the goods and increase their sales.
The main prerequisites for using the sales concept are as follows:
a) the main task of the company is to achieve a certain volume of sales of its goods;
b) consumers will not buy goods in the amount required from the firm's point of view without some impact;
c) consumers can be forced to buy these goods using various methods sales promotion;
d) buyers will make repeat purchases or there is a sufficient number of potential consumers.
Firms that are guided by the sales concept usually assume that consumers do not have a clear intention to purchase their products, and therefore it is necessary to actively search for potential buyers.
It should be borne in mind that in practice, the implementation of the sales concept is associated with the imposition of a purchase, and the seller strives to conclude a deal at all costs, and meeting the needs of the buyer is a secondary point. Sometimes such a practice can lead to loss of the market for the manufacturer.
The fact that a sales concept can still be effective over a long period of time is due to the following reasons:
a) many buyers believe that they are able to protect their interests;
b) buyers who are dissatisfied with the purchase soon forget about their feelings of dissatisfaction;
c) buyers who are dissatisfied with their purchase do not very often share their impressions with other buyers;
d) buyers who are dissatisfied with their purchase are unlikely to file a complaint with a society that protects their interests;
e) there is always a sufficiently large number of potential buyers.
4. Market, traditional marketing concept, or marketing concept. This concept differs from other concepts in that: a) the company sees its task in meeting the needs of a certain group of consumers; b) the company is aware that meeting these needs requires conducting a whole range of marketing research to identify them;
c) the company’s marketing activities are constantly monitored and analyzed; d) the company is confident that the results of its efforts to satisfy demand will lead to repeat purchases of products and will ensure favorable public opinion.
The marketing concept replaces the sales concept and changes its content. What is the difference between the sales concept and the marketing concept?
Activities based on the sales concept begin with the product available to the company. Wherein main task is to achieve the sales volume necessary to make a profit through various sales promotion activities. Activities based on the concept of marketing begin with identifying actual and potential customers and their needs. The firm plans and coordinates the development of specific programs to address identified needs. It makes profit by satisfying the needs of customers.
Thus, the marketing concept is a customer orientation, supported by a set of measures aimed at meeting market needs.
The marketing concept is part of a policy known as "consumer sovereignty", where decisions about what should be produced should be made not by the firm or the government, but by consumers. This truth can be expressed in another definition of marketing: “Marketing is love for one’s neighbor, for which you receive a fee in the form of profit.” Consequently, the company produces what the consumer needs, and, thus maximizing the consumer’s well-being, ensures that it receives the necessary profit.
5. Social and ethical concept of marketing. The social and ethical concept of marketing, characteristic of the current stage of development of human civilization, is based on a new philosophy of entrepreneurship, focused on meeting the reasonable, healthy needs of the carriers of effective demand. Its goal is to ensure the long-term well-being of not only an individual enterprise, but also society as a whole.
The norms of social and ethical marketing limit, in a certain sense, entrepreneurial initiative and production activity, making it dependent on the guidelines of social development and on the unconditional requirement to preserve the environment.
The desire of an enterprise for constant expansion, a monopoly position in the market, maximizing profits by reducing production costs and increasing sales prices was until recently a generally accepted and recognized motivational basis for entrepreneurial activity. Marketing of the era of mass production and mass distribution is a typical example of precisely this content of entrepreneurial activity, which ultimately led, in a poorly regulated market, to overproduction of the mass of goods, deepening cyclical crises and other economic and social consequences destructive for society.
The constant desire of many enterprises for unlimited growth is still the main driving force of economic policy, but at the same time it is also the reason for the impending global catastrophe of the community due to the accumulation of weapons of mass destruction, habitat destruction, depletion of natural resources and other real threats to human civilization. Therefore, it became necessary to exclude the principle of unlimited economic growth, which is understood primarily in such purely quantitative terms as maximizing profits and increasing the gross national product.
People associate growth not only with an increase in income, but also with development, i.e. with a different value system. There is a gradual realization that scientific and technological progress, up to a certain stage, serves human interests, but, having passed the peak of usefulness, it begins to play the opposite role, although it continues to contribute to economic growth.
In order to correctly assess the usefulness of economic growth, it is necessary to develop criteria for its acceptability. Many scientists are increasingly inclined to think that balance should be used as the main criterion, which, however, does not mean a complete rejection of any growth or development. Such balance can be defined as a state of society in which the satisfaction of today's normal healthy needs:
does not reduce the chances of future generations to live a decent life. Economic growth will be considered acceptable only in cases where it supports or enriches the internal and external connections of the system, including the system of the enterprise as the main economic unit.
It is necessary to expand and enrich the very concept of marketing management with new approaches in order for environmental protection to become one of the significant goals of marketing management in an enterprise. Even in its most modern expression, marketing has exclusively economic goals and strives to balance the economic interests of the consumer and the producer. However, the growing interdependence of economic and social processes ultimately led to the fact that marketing gradually included serious social tasks - ensuring employment, humanizing working conditions, constant training and retraining of managers, technical personnel and production workers, expanding the participation of team members in management enterprise.
In the mid-80s, the marketing concept was enriched due to the introduction of the system environmental assessments. The beginning was made by a number of entrepreneurs who, in their practical activities, drew attention to the fact that consumers, as carriers of effective demand, are increasingly striving to increase the quality of life in the process of satisfying their needs.
The concept of quality of life includes not only the abundance and availability of high-quality goods and services, but also the preservation and even improvement of the quality of the living environment. Innovative entrepreneurs in their companies began to develop and implement programs for processing secondary raw materials and other industrial waste, recycling urban waste, introducing new waste-free and energy-saving technologies, and other environmentally, socially and ethically oriented innovations.
Initially, measures to protect the environment were considered undesirable within the framework of business activities, because their implementation required large costs and could, from this point of view, worsen the competitive position of the enterprise. However, the business community and the public soon stopped evaluating environmental activities only in terms of unproductive costs. Moreover, these costs have come to be seen as an investment in the future and even as a means of achieving superiority over competitors. Environmentally conscious marketing is common among today's most forward-thinking entrepreneurs.
A powerful impetus for entrepreneurs to increase the number of environmental activities was the emergence and organizational formation of a mass movement for environmental protection, which does not oppose marketing and reasonable healthy consumption, but for all economic activities to be carried out on the basis of environmental safety and harmlessness and for the sake of increasing quality of life.
An important factor in limiting economic activity and reorienting it to meet the needs of citizens was the formation at the beginning of the 20th century of a movement to protect consumer rights. This organized movement of citizens and some government bodies and institutions is aimed at expanding the rights and opportunities for buyers (consumers) to influence sellers (producers).
The traditional rights of buyers (consumers) include: the right to refuse to purchase goods offered by the seller; the right to expect that the product is harmless and safe to handle, that the product, when used, will exactly correspond to the seller’s statements (for example, operating instructions); the right to receive complete information about the most important qualities of the product; the right to protection from questionable products and unfair marketing practices (for example, false advertising); the right to influence the improvement of products and marketing activities to improve the quality of life.
Consumers have all legal grounds to protect their interests from various types of unfair activities of commodity producers and sellers. This is sending letters to the management of enterprises or the media, filing complaints with state and local authorities and even general or special courts.
If we consider the activities of an enterprise internationally within the framework of organizing and conducting purchase and sale transactions with foreign counterparties, international scientific, technical and production cooperation, every entrepreneur should know that any of listed types activities in the international market are regulated in addition to national laws and regulations by a number of international codes. These codes, which introduce uniform rules in international economic relations, as well as certain standards and norms of business communication, were developed by the International Chamber of Commerce (ICC) with the support and participation of a number of international specialized organizations. The content of international codes defining fair commercial practices is discretionary in nature. However, if the relevant specialized public national organizations agree with the provisions of international codes and establish similar norms and rules for national participants in international economic relations, then it is considered that members of such national specialized organizations voluntarily undertake the obligation to comply with all the basic provisions in their commercial practice international codes.
The use of international codes in commercial practice significantly increases the responsibility of entrepreneurs and their professional specialized organizations, unions and associations to consumers and society as a whole, helps to overcome and eliminate unfair methods of competition from commercial practice, regulates and introduces all types of business activities within a certain legal framework .
Moreover, the ICC considers international codes to be the most important cement for self-regulation of business activity, since the rules of conduct established by these documents are developed by entrepreneurs themselves, including in the interests of their business activities. There is a belief in business circles that such self-regulation of business activity is more preferable than government regulation measures, in particular because they are easier to adapt to the dynamically changing conditions of the external and internal environment of enterprises, to modern scientific and technological progress and socio-economic changes in society. The active use of the provisions of international codes in everyday commercial activities contributes to the widespread dissemination of positive business practices in business structures.
International codes developed by the ICC regulate entrepreneurial activity in the field of fair competition, advertising, sales promotion, marketing social research etc.
The transition to developed commodity-money relations and a socially oriented market economy inevitably leads to the formation within the management structures of public, private and other enterprises of a marketing approach to solving problems of production and sale of goods and services. Naturally, this approach involves, first of all, the reorientation of all production and economic activities towards the consumer, taking into account his interests, tastes and preferences, and rejecting dictates from manufacturers and suppliers of goods and services.
The socio-ethical concept of marketing is characterized by the following most typical and mandatory requirements:
1. The main purpose of the enterprise must be to satisfy the reasonable, healthy needs of consumers in accordance with the humane interests of society.
2. The enterprise must be constantly searching for opportunities to create new products that better satisfy the needs of customers. It must be prepared to systematically introduce improvements to products in accordance with the interests of customers.
3. An enterprise must refuse to produce and sell goods that are contrary to the interests of consumers in general and especially if they can cause harm to the consumer and society as a whole.
4. Consumers, relying on their own actions and public opinion, should support only those enterprises that expressly show concern for satisfying the normal healthy needs of the carriers of effective demand.
5. Consumers, caring about preserving and improving the quality of life, will not buy goods from enterprises that use environmentally friendly harmful technologies even for the production of goods needed by society.
6. An enterprise must create and implement such social and economic development programs that serve not only the interests of the enterprise itself and its workforce, but are also useful for social development region in which the company operates.
Since the goal of the social and ethical concept of marketing is to ensure the long-term well-being of not only an individual enterprise, but also society as a whole, when managing marketing at the enterprise level, it is necessary to take into account at least four points: the needs of the buyer (consumer), the vital interests of the consumer , the interests of the enterprise, the interests of society.
The use of each of them is mandatory and, first of all, raises the question of what should be the balance of interests of producers, consumers and society as a whole. Indeed, quite often these interests come into conflict with each other.
The implementation of the marketing concept in an enterprise requires the creation of an appropriate marketing service. Currently, without such a service that provides marketing research to study the prospects of demand, consumer requirements for a product and its properties, trends in these requirements under the influence of various factors, it is difficult for manufacturers to survive in competition. The ultimate goal of the functioning of marketing services is to subordinate all economic and commercial activities of the enterprise to the laws of the 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
The first stage is marketing as a distribution function. Marketing of goods at this stage was relatively simple. Marketing is limited to distribution tasks. The sales department plays a relatively important role. Market research, sales and advertising planning are of little importance.
The second stage is the organizational concentration of marketing tasks as a sales function. The emergence of sales problems and a better understanding of the role of marketing led to significant organizational changes. Sales activities began to come under the auspices of one manager. In addition, sales-related functions of other departments (training salespeople, customer service, sales planning) are transferred under his leadership.
The third stage - the separation of marketing into an independent service, is characterized by the emergence specialized service marketing, which has equal rights with other divisions of the enterprise. The marketing service became responsible not only for product planning and development, but also for pricing. The marketing manager (and not the production manager) makes decisions about the appearance, packaging, and name of the product. However, each department has its own interests, which may vary significantly.
The next stage - marketing as the main function of the company - is to orient all areas of the company's activities to the requirements of marketing. Marketing is seen as the main function of the company. This concept is sometimes implemented if a “marketing person” becomes the head of the company. Essentially, most companies are in the third stage of marketing development.
IN real life there are many various forms organization of a marketing service, however, we will limit ourselves to considering only some basic organizational structures:
1) Functional structure of marketing. This form of organization means that marketing acts on an equal basis with other functional divisions of the company. The structure of the functional marketing organization is presented in Appendix A.
Problems associated with such an organization:
a) group egoism, difficulties with coordination;
b) the solution of problems 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 final goal, i.e. motivation decreases.
From the point of view of adaptability to the environment functional structure able to respond to quantitative fluctuations in demand, but lacks coordination to solve more serious problems. Therefore, it is better suited for companies with a homogeneous production program. To overcome coordination problems within a functional organization, product management is sometimes introduced. His task is to coordinate the work of various enterprise services in connection with the release of this product.
2) Organization by products. The more diverse the program, the more diversified the company, the more dynamic the market, the better the product organization fit. The organization structure by product is presented in Appendix B.
These structures may be subordinate to the marketing department or company management. When organized by product, functions related to all products (corporate strategy, public relations) are usually transferred to the upper levels of management.
3) Organization by clients. When organizing customer marketing, each department is assigned a specific group of customers or part of the market (for example, working with wholesale trade, retail trade and industrial enterprises). The organization's structure by client is presented in Appendix B.
Sometimes a manager is assigned only one, but very important client. This structure is justified if the market segments are large enough and differ significantly from each other. The most important management task in this case is to maintain optimal relationships with customers for the enterprise, and from the standpoint of all products. The problems of this structure also lie mainly in the coordination of individual areas and the implementation of common functions (research, supply, etc.).
4) Organization of marketing on a geographical basis (presented in Appendix B). Such structures may be suitable for companies with a large sales volume, within which there are regions with different requirements for the product. In practice, such management structures are relatively rare.
5) The matrix marketing organization is based on at least two structuring criteria. With their help, companies are trying to overcome the problems inherent in one-dimensional management structures. Harbingers matrix structures can be called product management and project management.
It must be taken into account that there is no ideal organizational structure 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.
1.3 Evaluation and importance of marketing activities
Determining the effectiveness of marketing activities is very important, especially at the stage of deciding to conduct a specific event. Here the question arises about methods for determining the effectiveness of marketing activities at the planning stage.
The problem of determining the economic efficiency of marketing activities has two goals:
1. Justify the effectiveness of marketing activities at the stage of development or decision-making; choosing the optimal option.
2. Determination of the final effectiveness of marketing activities after the end of a certain period of time, based on the actual results achieved.
Determining the economic efficiency of marketing activities is also necessary in order to identify the factors influencing the efficiency indicator of marketing activities, their interdependence, if any, the nature of their influence on the efficiency indicator, and identify reserves for increasing efficiency.
Factors, their classification, relationships, and impact on profit are shown in Fig. 1.1.
Since it is closely related to the indicator of product sales volume, the diagram shows a bunch of indicators profit - sales volume.
To determine the effectiveness of marketing activities at an enterprise, it is necessary:
In the process of developing a marketing plan, determine the criteria against which the process in implementing the marketing plan will be measured (monitoring the results of marketing activities).
Determination of costs associated with marketing (drawing up a marketing cost estimate, which presents all items of marketing costs).
The marketing effectiveness indicator itself is determined by comparing the achieved effect as a result of marketing activities (which is most often, but not necessarily, expressed in the form of profit or income) to the costs that caused this effect.
Figure 1.1. Scheme of the main factors of the micro- and macroenvironment in which the company operates and which influence the final result of the company’s work
Note. Source:
To determine the effectiveness of marketing activities, you first need to determine the effect (result) of this activity.
Experts give different answers to this question. There is an opinion that marketing does not obey cause-and-effect laws. Therefore, the use of quantitative methods when planning or assessing the actual results of a marketing event is difficult. Proponents of this opinion believe that not all goals can be formulated quantitatively. Examples of qualitative goals include the following: survival in conditions of aggravated competition, maintaining the high prestige of the company, etc. The use of quantitative methods is limited for the following reasons:
The complexity of the object of study, the nonlinearity of marketing processes, the presence of threshold effects, for example, the minimum level of sales promotion, time lags (for example, consumers’ reaction to advertising is often not immediate);
The effect of the interaction of marketing variables, which for the most part are interdependent, for example, price, assortment, quality, output volume;
The difficulty of measuring marketing problems; It is difficult to measure consumer responses to certain stimuli, such as advertising, so they are often used indirect methods assessments;
The instability of marketing relationships caused by changes in tastes, habits, assessments, etc., the relative incompatibility of personnel involved in marketing and the use of quantitative methods in its assessment. The former give priority to informal methods, the latter to mathematical modeling.
The above is largely due to the fact that marketing deals with human behavior rather than technical phenomena.
Marketing specialist, professor at London Business School Kenneth Symonds, notes that nothing is ever repeated in marketing, everything is different for different situations. Marketing is targeted to specific customers, and every customer is different. General rules are the enemies of marketing. Therefore, determining the effect of marketing activities is, first of all, diagnostics, and not the development of methods and theories.
There are other schools of marketing, for example, the school of Philip Kotler (USA), which assigns a much greater role to quantitative methods for substantiating marketing decisions. In order to determine the effectiveness of marketing or a specific marketing activity, it is necessary that the goal be formulated quantitatively. Terms such as "maximize", "minimize", "penetrate", "increase" are valuable if they are associated with some quantitative measure. For example, “as a result of a marketing event, the cost of production should decrease by 3% in one month.” Since such a goal is formulated quantitatively, it is easy to check the level of its achievement, as well as to compare the result with the costs of this event, this is efficiency.
Currently, quantitative methods in marketing research are used more and more often, and quite a lot of models have already been developed that make it possible to determine the most important parameters of market activity.
There are several groups of quantitative methods when conducting marketing research:
Multivariate methods (primarily factorial and cluster analyzes). They are used to inform marketing decisions that are based on numerous interrelated variables. For example, determining the sales volume of a new product depending on its technical level, price, advertising costs, and another element of the marketing mix.
Regressive and correlation methods. Used to establish relationships between groups of variables that describe marketing activities.
Simulation methods. They are used when variables influencing the marketing situation (for example, describing competition) cannot be analytically solved.
Methods of statistical decision theory. They are used to stochastically describe the reaction of consumers to changes in the market situation.
Deterministic methods of operations research (primarily linear and nonlinear programming). These methods are used when there are many interrelated variables and it is necessary to find the optimal solution, for example, an option for delivering the product to the consumer, providing maximum profit, through one of the possible distribution channels.
Hybrid methods combining deterministic and probabilistic (stochastic) characteristics. They are used primarily to study distribution problems.
Network planning models.
These seven groups of quantitative methods do not exhaust their diversity. More than 60 methods can be used in marketing research.
In this work, based on the method of quantitative assessment of the result of marketing activities, by constructing mathematical model A methodology for determining the economic efficiency of marketing activities will be developed. IN general view The formula for calculating efficiency is as follows
efficiency = effect/cost
This indicator can be used to express the effect of marketing activities. Theoretically, we can say that the effect of a marketing event can be understood as its goal, expressed quantitatively, but in the program of marketing goals, a complex of various events has different goals. Therefore, it is more advisable to select one main indicator and use it to calculate the effectiveness of each event. As such an indicator, this paper proposes to use the change in profit from product sales. For example, the goal of a marketing event is formulated as follows: increase the number of distribution channels by x over period y. First, we determine how much the number of distribution channels actually increases; secondly, this circumstance led to an increase in sales volume, which, in turn, led to an increase in profits from product sales. Thus, the effectiveness of this event will be calculated by dividing the increase in profit only due to the event under consideration (ΔPm) by the costs associated with this event (Zm):
Em = ΔPm/Zm
where Em is the effectiveness of the marketing event;
ΔПм - increase in profit due to this marketing event;
Zm - costs for this marketing event.
Economic effect from marketing activities can be expressed by indicators: an increase in sales volume (in value and physical terms), an increase in profit from product sales, an increase in the market share of a particular enterprise.
Indicators characterizing the costs of a marketing event determine the amount of funds allocated for marketing; or a cost estimate is drawn up separately for each event.
The efficiency indicator is influenced by many factors, so economic justification a specific direction of marketing activity should be built on the minimum of obtaining results; as the lower bound of efficiency, after we are sure that the desired efficiency value lies above the lower bound, we can enter additional parameters.
At the same time, an effective mechanism for assessing the functioning of the marketing system at the enterprise allows you to quickly determine it internal capabilities, assess the quality of document flow between departments and the marketing service, discover hidden reserves for the development of the organization in order to increase the efficiency of its commercial activities.
It is advisable to base the analysis of the effectiveness of marketing management at an enterprise on the calculation of the dynamics of indicators characterizing the profitability of the commercial activities of an economic entity and its competitiveness:
share of profit from the commercial activities of the enterprise;
volume of products shipped;
volume of demand for the enterprise's products (market capacity);
marketing service expenses;
enterprise competitiveness coefficient.
The share of an enterprise's profit from commercial activities is the determining indicator when assessing the quality of the organization, functioning and management of the marketing system, because The goal of any business enterprise is to maximize the profit it receives.
Indicators of demand for the company’s products and the amount of their actual shipment over a certain period of time make it possible to determine the company’s ability to fully satisfy consumer demand, which in market conditions also becomes one of the main goals.
The analysis of marketing service expenses must be compared with the above indicators to assess the adequacy of the funds spent to the financial results of business activities.
Thus, there are a number of indicators that allow us to evaluate the marketing activities of an enterprise.
2 Assessment and analysis of the management of marketing activities of LLC Firm "KRUG"
2.1 Characteristics of the economic activities of KRUG LLC
Name: LLC Firm "Krug".
Location and postal address: 422000, Republic of Tatarstan, r.p. Arsk, Vatana street, 2.
Organizational and legal form: limited liability company.
Form of ownership: private.
Start-up capital in the amount of 8,400 rubles was contributed by the founder of the company.
Authorized capital as of the date of application: 300,000.00 rubles.
Participant: individual – Zakirov Talgat Mukhametovich.
Purpose of activity:
Expansion of the market for goods and services, as well as receipt of profit and its distribution among participants in accordance with current legislation and the Charter of the Company;
Providing nearby areas (Arsky, Baltasinsky, Sabinsky, Atninsky) with products necessary in all spheres of human activity;
Marketing development;
Technical development enterprises;
Personnel policy;
Expansion and improvement of the material and technical base;
Increase in retail space.
Subject of activity:
Retail alcoholic drinks, including beer;
Retail trade of food products, including drinks, and tobacco products in specialized stores;
Wholesale trade of alcoholic beverages, including beer;
Wholesale trade of food products, including drinks, and tobacco products;
Retail trade in household chemicals, synthetic detergents;
Purchase, processing, storage and sale of agricultural meat, dairy and fish products;
Trade-purchasing and trade-intermediary activities;
Carrying out commercial operations on contractual terms in accordance with the established procedure;
Carrying out freight transportation, forwarding and warehouse services;
Organization and holding of lotteries;
Collection and disposal of all types of waste;
Charity.
Long-term plans: construction of a shopping and entertainment complex.
LLC Firm "Krug" was created in 1997. Were open grocery stores in Arsk. In order to expand the territory of the sales market, in May 2006 it was decided to lease a shopping complex in the center of the village, in the eastern part of the village and in the village of Chulpanovo for grocery stores. There is a sufficient number of storage facilities. A new store is currently under construction.
From the moment of its formation to the present day, the company’s activities can be called successful. Thanks to a qualified management team, the enterprise has managed over the years not only to recoup the funds invested in the purchase of warehouse space and equipment, but also to receive net income. Sales have almost quadrupled in three years, driven by:
Sales of products at affordable prices;
Special prices for a certain period, flexible system of discounts;
Market research.
Principles of attracting new customers without losing existing ones: selling in small wholesale and deferred payment.
Sales methods:
Promotion of your products on the market;
Public relations.
The pricing policy will continue to be oriented towards sales to buyers of medium and small businesses.
Competitiveness: the quality of goods and services in comparison with other market representatives is that the products are sold in modern stores.
Company advantages:
Good company image;
Effective, stable and reliable work in the sales market for 10 years;
Good organization of company management and system of distribution and delivery of goods;
Quality and reliability of products sold and services provided;
The company’s own financial resources, its financial stability, timely payment of all taxes, loans and other payments;
Product compliance with quality standards and product warranty are strictly observed;
Low pricing policy.
Table 2.1.1.
Source data table
| INDICATORS |
STUDY PERIOD |
|||
| Product volume |
||||
| Cost price |
||||
| Profit from product sales |
||||
| Product range |
||||
| Food products |
||||
| Monetary |
||||
| Offsetting |
||||
2.2 Study of the dynamics of absolute performance indicators of Krug Firm LLC
To identify trends and describe the dependence, we will use standard methods of statistical information processing:
average value of indicators.
2. Rate of change in indicators.
, 
3. Average rate of change.
4. Average square deviation.
,
average deviation of indicators from the average level (average spread from the average line).
5. Variation.
6. Extremum relation.
this is an increase in performance.
Initial information with statistical processing data of the enterprise in table 2.2.2.
Table 2.2.2.
Dynamics of absolute performance indicators of the enterprise LLC Firm "Krug".
| Indicators |
Study period |
||||||||
| Product Q |
|||||||||
| Cost price |
|||||||||
| Profit from product sales |
|||||||||
In the period under review, the average value of production volume was 176,787 rubles. The indicator under consideration in the second period decreased by 26%, and subsequently a pronounced trend of its growth developed in the 4th period. The indicator reaches its maximum value. The average spread of data from the average level was 82,943 rubles. or 47%, which is an unstable indicator. The growth reserve for production volume amounted to 2.947 times, i.e. the volume of production could further increase.
However, the revenue indicator showed a completely different trend. In the second period, the indicator reached its maximum value, and in the 3rd and 4th periods its decrease was noticeable. At the same time, the average spread of data was 72,700 rubles. or 36.7%. Although the growth reserve for this indicator was 3,429 times. The cost indicator in the second period fell by 86.5% with an average value of 95,919 rubles. In the third period it increased again by 64.5%, and in the 4th period it again decreased by 55.5%. At the same time, the average spread of data was 65,417 rubles. or 68%.
The profit indicator began to show a downward trend from the third period. Its average value was 101,943 rubles, but in the second period the company made the greatest profit, because in this period the cost was the lowest of all 4 periods. The average spread of data was 92,840 rubles. or 91%. However, there is still a very large growth reserve (8,143 times).
It should also be noted that the company does not sell all its products, this is especially evident in the 4th period. This may be a consequence of which company has chosen a product policy, distribution policy or pricing policy.
2.3 Study of the dynamics of performance indicators of Krug Firm LLC
We will consider generalized performance indicators as performance indicators:
1. Profitability of production. This indicator is calculated by the formula:
2. Profitability of sales.
3. Specific current costs:
Initial data are presented in Table 2.3.3.
Table 2.3.3.
In the second period, unit current costs are 0.18%, which is less than one. This suggests that with such a number of specific current costs, LLC Firm “Krug” received the greatest profit (see table 2.2.2 “Dynamics of absolute indicators of the enterprise’s activity”) and with the lowest cost (see table 2.2.2.). Also, another factor is that the volume of production was higher than the cost.
In the third and fourth periods, unit operating costs also remain less than unity (0.84% and 0.102%, respectively), but during these periods the firm earned much lower profits. This is explained by the fact that the volume of production has increased and, along with it, the cost has also increased.
In the second period, R pr-va and R pr-zh are very different from each other.
R pr-va > R pr-zh - this means that there were unsold products in the warehouse.
In the third and fourth periods, these indicators differ, but not much (2.88% and 2.25%, respectively). This suggests that Firm Krug LLC has practically sold all its products.
If we compare the average value of the indicators, we can see that R pr-va > R pr-zh. This is explained by the fact that the company did not sell all the products that were purchased.
2.4 Study of the structure of the product range of LLC Firm "Krug"
The assortment of goods includes all assortment groups and assortment positions proposed by Firm Krug LLC.
An assortment group is a set of interrelated products, i.e. breadth of product range.
An assortment item is a specific product included in an assortment group, i.e. depth of product range.
For ease of analysis, we will divide the entire range of goods into two groups: food products and household chemicals.
For clients of Krug Firm LLC, price is something with which you can compare the performance of competing products. Those. customers consider price in terms of affordability and the quality and quantity of goods purchased.
LLC Firm "Krug" for three months (periods 1, 2, 3 under study) almost did not change the prices for its products, i.e. prices did not affect revenue or profit. The most common pricing method is to include your costs in the price of the product. But you should also consider another method based on current prices.
That. Firm Krug LLC used two methods:
1. Including your costs in the price of the product.
2. Method based on current prices.
2.6 Deal structure research
For every enterprise or firm, the type of transaction is very important.
A transaction is an exchange of values between two parties.
Firm Krug LLC uses two types of transactions:
The graph shows that with an increase in netting transactions and a slight decrease in cash transactions in the second period, the company achieved the highest return on sales. But as soon as netting transactions decreased, and cash transactions, on the contrary, increased, the profitability of sales in the third period decreased. However, in the fourth period, the firm continued to use netting transactions less and less, and began to use cash transactions more. At the same time, sales profitability began to increase.
Judging by the chart, we can say that the most preferable for the company are netting transactions, but it is not worth closing cash transactions.
2.7 Study of the product distribution system of LLC Firm "Krug"
For a company, the choice of distribution channel is a very serious issue, the decision of which depends on the assessment of the retailer.
The distribution channels chosen by a firm influence all subsequent marketing decisions of the firm.
A distribution channel is a system of enterprises, organizations, and individuals that deliver goods or services from producers to consumers.
The length of the distribution channel depends on the intermediate levels located in it.
Krug Firm LLC is one of these intermediate levels.
In order to identify which distribution channel is the most preferable for the company, we calculate the distribution channel structure indicator:
,
j – channel type
The dynamics of the distribution structure are presented in Table 2.7.6 and Figure 2.4.
Table 2.7.6
Firm Krug LLC is a wholesale trading company and has two distribution channels (indirect and direct).
Based on Figure 2.4, we can conclude that both distribution channels have different effects on profitability of sales.
The task of any company is to make its products known. This is the purpose of promoting a product to the market.
Promotion is all kinds of methods used by a company to coordinate the activities of employees, communicate with customers and establish contacts with other interested parties.
There are many opportunities for promoting products, and their combination makes up a product promotion program.
A promotional program is the means used by a company to communicate with customers in order to gain their trust.
There are four main ways to promote a product:
2. sales promotion
3. publicity
4. personal selling
LLC Firm "Krug" used two methods of product promotion:
Our company's advertising is aimed at both large buyers and the common consumer. Therefore, the management of Firm Krug LLC chose several means of mass influence (in the program “Native Land” on the TNV-Archa shopping and entertainment complex, a page in the newspaper “Arsky Vestnik”, as well as in the “running line”).
Sales promotion is a special way of promoting products, different from personal selling and advertising.
The purpose of this method is to attract customers and convince them to purchase our product. There are many forms of sales promotion. LLC Firm "Krug" used one of these forms - a discount from the price, i.e. A regular customer who purchases a product (or enters into a transaction) for a large amount receives a discount of 5% of the concluded transaction.
The structure of product promotion is located in table of initial data 2.9.8 “Dynamics of costs for advertising and sales promotion”.
Table 2.9.8.
| INDEX |
STUDY PERIOD |
||||
| Costs for |
|||||
|
In the fourth period, the company stopped using the promotion system because regular customers and, profitability of sales increased. Conclusion Any form of enterprise, when entering the market, almost always encounters difficulties. And immediately the leaders of these organizations begin to fight for survival in this market, to fight with their competitors, and in these conditions, any organization, even the smallest one, needs to develop its own marketing policy in order to achieve increased efficiency of its organization. Although Krug Firm LLC appeared on the goods market more than 10 years ago, it needs to engage in marketing research to promote its products on the goods market, grow profits and meet the needs of its customers. Based on the research, it can be concluded that in some situations the company used certain marketing methods, but not in all. It follows from this that the organization needs to create a special marketing department that will promote and distribute goods in new markets and satisfy customer needs. And the main goal of this department will be to strengthen its position in a competitive market and increase profits. List of sources and literature used 1. Ambler T. Practical marketing / Transl. from English Under the general editorship. Yu.N. Kapturevsky. - St. Petersburg: Peter Publishing House, 2003 - 400 p. 2. Assel Henry. Marketing: principles and strategies: Textbook for universities. - M.: INFRA-M, 2004 - 804 p. 3. Berezin I.S. Marketing and market research. - M.: Russian Business Literature, 2003 - 416 p. 4. Golubkov E.P. Fundamentals of Marketing: Textbook. – M.: Publishing house “Finpress”, 2004 - 656s 5. Gruzinov V.P. Scheme of marketing activities. - M.: “Infra - M”, 2004 - 305 p. 6. Kotler F., Armstrong G., Saunders D., Wong V. Fundamentals of Marketing: Transl. from English - 2nd European ed. - TO.; M.; SPb.: Publishing house. house. "Williams", 1998 – 105 p. 7. Kotler F. Marketing management - St. Petersburg: Peter Kom, 1998 – 896 p. 8. Marketing: Textbook for universities. / N.D. Eriashvili, K. Howard, Yu.A. Tsypkin et al.; Ed. N.D. Eriashvili. - 3rd ed., revised. and additional - M.: UNITY-DANA, 2003 - 631 p. 9. Moiseeva N.K., Konysheva M.V. Marketing management: theory, practice, information Technology: Textbook. allowance. / Ed. N.K. Moiseeva. - M.: Finance and Statistics, 2002 - 304 p. 10. Richard Ott. Creating demand. Effective tips and recommendations for marketing your products and services / Translation from English. - M.: Information and Publishing House "Filin", 2003 - 320 p. 11. Ambler T. Practical marketing / Transl. from English Under the general editorship. Yu.N.Kapturevsky.-SPb: Publishing House “Peter”, 1999.-400 p. 12. Assel Henry. Marketing: principles and strategies: Textbook for universities.-M.: INFRA-M, 1999.-804 p. 13. Bagiev G.L., Tarasevich V.M., Ann H. Marketing: Textbook for universities; Under the general editorship of Bagiev G.L.-M.: Publishing House "Economy", 1999.-703 p. 14. Introduction to Marketing, 5th edition: Transl. from English: Educational pos. – M.: Williams Publishing House, 2000.-640 p. 15. Volkov K. To be a Russian textile: Interview with the president of the Russian Textile Alliance // Company Management. - 2004. - No. 10. - P. 6-11. 16. Issues and experience of marketing activities of enterprises // Current problems of economics: Materials of scientific and practical conference: In 2 parts. Part 1 / Ed. N. S. Nedashkova. - Mn.: BSEU, 2004. - P.39-103. 17. Gilbert A. Churchill Marketing Research - St. Petersburg: Peter Publishing House, 2000. - 752 p. 18. Golubkov E.P. Modern trends in marketing development // Marketing in Russia and abroad. - 2000. - No. 4.-P.3-17. 19. Dichtl E., Hershgen H. Practical marketing: Textbook / Transl. with him. A.M. Makarova; Edited by I.S. Minko. - M.: Higher school, 1995. - 255 p. 20. Isaulova S. S. Marketing trends in the struggle for consumers (German experience) // Marketing. - 2004. - No. 3. - pp. 28-36. 22. Kozlovskaya T. Tender procurement system: registration and implementation of procedures // Finance, accounting, audit. - 2003. - No. 12.-P.69-75. 23. Kozlovskaya T. Tender procurement system: scope of distribution, procedure and execution // Budgetary organizations (Appendix to the journal "Chief Accountant"). - 2001. - No. 1.-P.17-23. 24. Melnichenko L.N. The evolution of marketing management: main stages and modern tendencies// Marketing in Russia and abroad. - No. 5. 1999. –pp.53-62. 25. Muromtsev S.V. Marketing management of an industrial enterprise // Marketing. - 2004. - No. 3. - P. 37-43. 26. Nikishkin V.V. Marketing: yesterday and in the new millennium // Marketing and marketing research. - 2004. - No. 1. - pp. 83-85. 27. Polishchuk N.V. On the issue of procurement on a tender basis // Economics. Finance. Control. - 2004. - No. 6. - pp. 120-128. 28. Pokhabov V.I. Fundamentals of Marketing: Textbook. allowance. – Mn.: Vysh.shk., 2001. – 271 p. 29. Romanova M. V. Marketing project management in industry // Marketing. - 2004. - No. 3. - P. 44-52. 30. Ryabkov Alexey Assessing the effectiveness of the marketing service using the balanced scorecard system (BSS) // Marketing, advertising and sales. - 2005. - No. 1. - pp. 25-31. 31. Hershgen H. Marketing: the foundations of professional success: Textbook for universities: Transl. from German - M.: INFRA-M, 2000. - 334 p. 32. Khrutsky V.E., Korneeva I.V. Modern marketing: a handbook on market research: Textbook. – 2nd ed., revised. and additional - M.: Finance and statistics.-528 p. | |||||
Hello! In this article we will talk about such an important component of an enterprise’s marketing activities as marketing analysis.
Today you will learn:
- What is marketing analysis of an enterprise;
- What are the stages of marketing analysis of an organization;
- What methods and types of marketing analysis of a company exist;
- How to apply marketing analysis with an example.
What is marketing analysis?
Any activity begins with planning. Planning, in turn, begins with analysis. The marketing activities of the enterprise are fully subject to these rules. Marketing analysis allows you to identify problems and find ways to solve them, provides basic information for making decisions regarding the marketing mix.
Without a quality marketing analysis, you risk facing the following problems:
- Receive a product that will not be in demand;
- Meet insurmountable “barriers” when entering the market and selling products;
- Face something that is too much for you;
- Select the wrong market segment and product positioning;
- Make the wrong decisions on each of the elements.
This is only a small part of the problems that await you if you neglect the marketing analysis of your enterprise.
Marketing analysis of the company – analysis of information obtained as a result of various marketing studies to make decisions regarding the marketing mix and company behavior in a competitive market.
Marketing research – activities for the systematic collection of information necessary for making marketing decisions.
Marketing research is divided into “field” and “desk” research.
Field marketing research involves collecting primary information using one of the following methods:
- Observation of the research object. You can observe consumers at retail outlets, you can evaluate the display of goods and much more;
- Experiment. For example, changing the price of a product at only one outlet in order to analyze the elasticity of demand. Used to determine the influence of any factor on a purchase.
- Interviewing. This includes various surveys (telephone, Internet, mail).
Desk research involves studying existing data. Sources can be both internal information (accounting data, databases, reports, plans) and external (data from statistical bodies, data from marketing, production and trade associations, databases of independent organizations).
The main stages of marketing analysis of a company
Marketing research and marketing analysis are inextricably linked.
You can imagine any analytical marketing activity of an enterprise in the form of four stages of marketing analysis:
- Planning marketing research . This stage includes setting the objectives of marketing research, determining the type of research, identifying the audience or sources of information, determining the location of the research, preparing tools for conducting the research, setting deadlines and drawing up a budget;
- Collection of information. At this stage, information is directly collected;
- Analysis of collected information;
- Interpretation of the received data into a report.
When conducting a full marketing analysis of a company, it is necessary to obtain and process information about the internal environment of the organization, the external environment of the organization and the meso-environment of the organization. When analyzing each environment, the specialist must go through the stages of marketing analysis described above.
Let's look at what methods and tools of marketing analysis are used in the marketing analysis of each environment.
Types and methods of marketing analysis
There are four types of marketing analysis:
- Marketing analysis of the organization’s external environment;
- Marketing analysis of the company's mesoenvironment;
- Analysis of the internal marketing environment of the enterprise;
- Portfolio analysis.
We will consider methods of marketing analysis in the context of the type of marketing analysis within which they are used. We start with an analysis of the organization's external environment.
Methods for analyzing the external environment of an organization
External environment of the organization – the realities in which the organization operates.
An organization cannot change its external environment (but there are exceptions, for example, oil companies).
When analyzing the external environment of an organization, it is necessary to assess the attractiveness of the market. To assess the attractiveness of the market, it is effective to use such a method of marketing analysis as PESTEL-analysis.
Each letter of the name of PESTEL analysis denotes an external environmental factor that can either have a strong impact on the organization or not affect it at all. Let's look at each factor.
P– Political factor. The influence of the political factor is assessed using answers to the following questions:
- Is the political situation in the country stable? How does the political situation affect?
- How do tax laws impact your business?
- How does government social policy affect your business?
- How does government regulation affect your business?
E– Economic factor external environment. Its assessment involves answers to the following questions:
- How does the level of development of a country's GDP affect your business?
- How does the general economic situation affect your business? (economic growth, stagnation, recession or economic crisis)
- How does inflation affect your business?
- How do exchange rates affect your business?
- How does per capita income affect your business?
S– Sociocultural factor, requires answers to the following questions:
- How do demographics affect your business?
- How does the lifestyle of citizens influence your business?
- How does the attitude of citizens towards leisure and work affect your business?
- How does the socially accepted distribution of income among family members affect your business?
T – Technological factor and questions for its analysis:
- What impact does the amount of government spending on research in your field have?
- How does technological development in the industry affect your business?
E– Environmental factor requires answers to the following questions:
- How does environmental legislation affect your business?
- How does the volume of natural resources produced affect your business? (consider the natural resources that are used in your business)
- How does the quality of extracted natural resources affect your business? (consider the natural resources that are used in your business)
L – Legal factor and questions to analyze its impact on your enterprise:
- How does this or that law affect your business? (it is advisable to identify the laws that regulate activities in your market).
We recommend answering these questions using a scale from -3 to 3, where “-3” – has a strong negative impact on the organization, “-2” – has a moderate negative impact on the organization, “-1” – has a weak negative impact on the organization. organization, “0” – has no impact, “1” – has a weak positive impact on the organization, “2” – has an average positive impact on the organization, “3” – has a strong positive impact on the organization.
As a result, you will get the total influence for each factor. Factors with positive result have a beneficial effect, with a negative – negative. If any factor has a very strong Negative influence, you need to think about the feasibility of doing business in this area.
Methods for analyzing the mesoenvironment of an organization
The meso-environment of the organization is presented external factors that have a direct impact on the activities of the organization. Meso-environment analysis is aimed at assessing the attractiveness of the market and the level of competition in the market, determining overall consumer demand.
The tool that most fully reflects the factors influencing the mesoenvironment was invented by Mike Porter and is called the “5 Forces of Competition Model”.
Porter's 5 forces of competition model consists of five blocks. Each block is a separate factor in the influence of a competitive market on your organization.
The central block is “Competitive environment”. This block contains all current market players - you and your direct competitors.
You need to determine the following parameters of the competitive environment:
- Main players and their market shares;
- Number of players;
- Level of market development;
- Strengths and weaknesses of your closest competitors;
- Information about your competitors’ costs for various expense items (production, marketing, etc.).
Second block - “The threat of new players.”
It is represented by the following parameters:
- Existing barriers to entry into the market (patents, licenses, government regulation, etc.);
- Required initial capital;
- Necessary costs for product differentiation;
- Access to distribution channels;
- Experience of existing companies on the market (the more experience, the less the threat of new players appearing);
- Existing barriers to exiting the market (penalty, liability to suppliers and consumers).
Third block - "Substitute goods." Such companies are not your direct competitors, however, with high elasticity of demand, they can pose a big threat.
The parameters for assessing this factor are as follows:
- The degree of consumer loyalty to your product;
- The difference in price between your product and substitute products;
- Level of professionalism of consumers (the more professional the consumer, the weaker the influence of the parameter);
- Cost of switching to a substitute product.
Fourth block - "The power of buyers in the market" which lies in the ability of buyers to dictate their terms of cooperation.
This factor is represented by the following parameters:
- The number of buyers in the market (the fewer buyers, the greater their power);
- The volume of purchase of a product by one consumer (the larger the purchase volume, the greater the influence);
- Availability of buyer unions;
- Width of product selection (the greater the choice, the greater the power of influence).
The fifth block is presented strength of suppliers in the market.
The parameters for assessing this factor will be as follows:
- The degree of difficulty of switching from one supplier to another;
- Volume of purchases from one supplier;
- Availability of companies to replace existing suppliers;
- The degree to which the quality of raw materials influences your business.
Write down the data you have for each parameter, analyze the information and give points from “-3” to “3”, depending on the degree of influence of each parameter. Extreme values “-3” and “3” indicate a strong threat and positive impact of the parameter, respectively, “0” means that the parameter does not have an impact on your business. The total value for a factor will allow you to see the most “dangerous” factors, the influence of which must be neutralized in the near future.
Analysis of the organization's microenvironment
An analysis of the organization's microenvironment is carried out to identify the strongest and weakest points of your business. For these purposes, an analysis tool such as "Chain of Values".
The value chain reflects all business processes that are implemented in the organization. Business processes are divided into main (during which the production and distribution of products occurs) and auxiliary (which provide the main activity with everything necessary).
We will not dwell on this model in detail, since it is quite simple. Let's depict it in the form of a table, where we designate all the business processes that need to be assessed. The rows indicate auxiliary business processes, the columns indicate the main ones.
| Supply of auxiliary products and resources that are not related to the main production (for example, soap in the office) | ||||
| Research and development (R&D) | ||||
| Organizational structure management | ||||
| Human Resource Management | ||||
| Incoming logistics (raw materials, materials, equipment) | Primary production | Outbound logistics – product distribution system | Marketing and Sales | After sales service and maintenance |
Evaluate each business process in your organization and you will see which steps produce the core value of your product and what makes your product special. Those business processes that provide greater value to your product are the most developed and have a positive impact on competitiveness - strengths your organization, the rest are weak.
Interim analysis
SWOT -analysis represented by a combination of environmental factors of the organization (direct and indirect influence). SWOT analysis is a matrix; the vertical axis shows the opportunities and threats of the external environment, and the horizontal axis shows the strengths and weaknesses of the organization itself. Let's depict it for greater comfort.
| Strengths | Weak sides | |||||
| 1 | 2 | 3 | 1 | 2 | ||
| Possibilities | 1 | |||||
| 2 | ||||||
| 3 | ||||||
| Threats | 1 | |||||
| 2 | ||||||
| 3 | ||||||
| 4 | ||||||
We received opportunities and threats as a result of PESTEL analysis, and weaknesses and strengths as a result of using the “Porter’s 5 Forces of Competition” and “Value Chain” models, we write them out in columns and rows.
As a result, at the intersection of external and internal environmental factors, we must write the following solutions:
- The intersection of strengths and opportunities: how strengths can be used to achieve opportunities;
- The intersection of strengths and threats: how we can use strengths to neutralize threats;
- The intersection of weaknesses and opportunities: how weaknesses can be overcome by exploiting opportunities;
- The intersection of weaknesses and threats: how to minimize the impact of threats.
Business Portfolio Analysis
After we have researched the market and the company, we can evaluate the various areas of the organization's business or, more simply, the products it produces.
At the moment, there are quite a large number of different methods of portfolio analysis, but the simplest and most popular of them is - matrix BCG . Let's immediately visualize this tool.
| Relative market share | |||
| High | Low | ||
| Market growth rate | High |
"Star"– products with high sales growth rates and large market shares. At the same time, it requires large investments, which makes the profit from the product insignificant. |
"A dark horse"– products with a small market share but high sales growth rates. Strategy – investment or disposal |
| Low |
"Milch cow". Such products have a large market share and high profits, but have low sales growth rates. Strategy – redirecting funds received from “cows” to other business units |
"Dog"– products with low sales growth rates, small market shares, low profits. Strategy – deliverance |
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Thus, we identified the most promising products in the range and chose a strategy for each of them.
The second component of portfolio analysis is staging life cycle each product in the range . This analysis allows you to choose a product marketing strategy and eliminate unprofitable products.
Most often there are four stages:
- Birth of a product or entry into the market. These products are new to the market, have consistently positive sales growth rates, but have either no profits or negative profits. As a rule, such a product has few competitors;
- Height. Products at this stage of the life cycle have the highest sales growth rates, but practically no profit. Competition at this stage is quite high;
- Maturity. The phase of the life cycle when sales growth rates fall, and profits and the level of competition in the market reach maximum values;
- Recession. Sales growth rates are approaching zero, profits are declining, and there are practically no competitors.
Marketing analysis of an enterprise using the example of the Gruzovichkof company
Let's analyze the activities of one of the actually existing Russian companies. Using the example of the cargo transportation company Gruzovichkof. At the same time, we will be able to see how to correctly understand and read a marketing analysis of an enterprise.
Stage 1. We start with PESTEL analysis, that is, we describe only the influencing factors (by question) and assign points. At the same time, we have reduced the number of influencing factors, excluding the economic one, since it has no influence at all, and combining the political and legal ones, since in this industry they are closely related to each other.
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Political-legal: -1 Restriction on the entry into Moscow of vehicles with a carrying capacity exceeding 1 ton (a special pass is required); +2 The need to confirm a license to carry out cargo transportation; +1 The need for regular technical checks of the car; -1 Difficulty in purchasing technical support due to sanctions; -2 A ban on the use of motor fuel of low environmental classes in Russia. -1 |
Economic: -4 Economic crisis in the country; -1 Changes in oil prices; -2 The volume of industrial production, wholesale and retail trade (in the provision of cargo transportation services for legal entities). -1 |
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Sociocultural: 0 Declining per capita income has a negative impact on demand; -2 The increase in population movement within the country will cause an increase in demand for cargo transportation services. +2 |
Technological: +4 The appearance of equipment that plots the route and calculates the cost of the trip; +2 Possibility of cashless payment and ordering services via the Internet. +2 |
As we can see, the technological factor has the greatest positive impact, while the economic factor has a negative impact.
Stage 2. Conducting an analysis using Porter's 5 Forces of Competition model.
We describe the parameters for each factor and assign points. As part of a report, it is better to do this in a table.
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2. Entry and exit barriers “+9” Initial capital for the purchase of a vehicle fleet and auxiliary equipment; +2 Obtaining permission to enter the city; +3 Obtaining a license for cargo transportation; +2 Monetary losses. +2 |
3. Substitute products "0" Railway transportation of goods. 0 |
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1. Level of competition “0” Highly competitive market, the most dangerous competitor is Gazelkin (38%); -2 A large number of companies with a small market share; 0 The market has not reached complete saturation. +2 |
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4. User power "-4" The consumer has enough wide choose(high competition); -3 Consumers have their own cars, which increases the demands on the company, since in many cases it is easier for them to refuse services in favor of moving on their own. -1 |
5.Supplier strength "-5" Cooperation with the only automobile plant "GAZ" may cause difficulties during the transition; -3 Contracts with gas stations prevent the transition to other fuels. -2 |
Thus, the greatest negative influence is exerted by the power of suppliers and the power of consumers.
Stage 3. Conducting analysis through the application of the “Value Chain” model.
For the Gruzovichkof company it will look like this:
| The company's infrastructure includes a financial department, planning department, accounting department, purchasing department, logistics department (purchasing), repair bureau | ||||
| Personnel management includes the process of attracting, hiring, monitoring and motivating personnel | ||||
| Technological development: use of the latest navigation systems, passing daily technical inspection of vehicles | ||||
| Logistics support for the main production: supply of cardboard packaging from the supplier, agreement with gas stations, purchase of additional equipment from the supplier (navigation systems) | ||||
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Purchasing cars from a dealer. Car parking in the company's fleet, storage of cardboard packaging in a warehouse |
The main product is a freight transportation service. The main elements of the product are: the technical component (vehicle and additional equipment) and contact personnel (driver, loaders) | Distribution of products occurs through telephone communications and online orders. The service is provided at the time and place specified by the customer. |
Promotion: paper advertising media (posters, flyers), billboards, TV advertising, radio advertising, Internet advertising | Service: additional service – loaders; choosing a car of the required format |
Stage 4. Conducting a SWOT analysis, as a result of which we will receive general results and conclusions for all three analyzes performed.
We write out the most powerful threats and opportunities from the PEST analysis and highlight strengths and weaknesses based on analysis using the “Porter’s 5 Forces of Competition” and “Value Chain” models. We get a small sign.
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Strengths: 1. High feed speed of the machine 2. Large (diverse) vehicle fleet 3. Low prices (compared to competitors) 4. Availability of additional services (loading, packaging) 5. Availability of permission to enter the city |
Weak sides: 1. Old cars 2. Long wait for dispatcher response 3. Difficult process online order |
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Threats: 1. Difficulties in connection with the Federal Law “On freight forwarding activities” 2. Economic crisis 3. Rising fuel prices 4. Lack of need for the service due to the presence of a car in almost every family |
Possibilities: 1. Decrease in the level of competition due to the adoption of the law “On restriction and control of the import of cargo into the city territory” 2. Increased demand due to rising real estate prices, increased mobility of the population, and fashion for holidays in the countryside 3. Emergence of new technologies We build a matrix and write solutions at each intersection. In the future, from these decisions you will form an enterprise development strategy |
At this point, the general marketing analysis of the enterprise is completed and we can sum it up.
As a result of marketing analysis, we received:
- A complete assessment of the attractiveness of the industry (market);
- Assessing our company’s position in this market;
- We identified the competitive advantages of our product (company);
- Determined ways to use our competitive strengths against competitors;
- We identified the main competitors, their strengths and weaknesses;
- Assessed the level of competition in the market;
- We received an information base for determining the future strategy of the organization (marketing strategy).
