Текст книги "Marketing and Pricing"

THEME 7. Department of Marketing

Marketing Management is the analysis, planning, implementation and monitoring of activities on the establishment of effective relationships with target customers.

Marketing activity is an activity the enterprise arising from the goals, objectives and functions of marketing.

Marketing management in the enterprise is carried out at the following levels:

Strategic is setting goals and objectives of the marketing activities for a period of five years or more;

Tactical is the development of marketing programs for a period of 2—5 years; Operational is the development of the annual marketing plan within the business plan of the enterprise;

Operational is the implementation of the activities planned at the level of operational marketing;

Organizational is the creation of the enterprise unit (division marketing of March) which provides a solution marketing problems;

Control is the analysis and evaluation of the marketing environment, the level of achievement of goals and objectives of marketing.

For the organization and coordination of all works in marketing at the enterprise creates service (department) marketing.

Marketing control is the process of analyzing and evaluating the results of marketing and howling of the enterprise, the implementation of corrective actions to achieve the objectives of marketing.

The monitoring process of marketing includes the following steps:

setting targets;

determination of actual values;

the comparison of planned and actual values;

determining the causes of the deviation of the actual values from the plan;

the development of proposals for the improvement of the actual values of the indicators in the event of impairment.

The objects of control of marketing are: sales and profits and market share by segment and goods, the ratio of the cost of marketing and sales volumes and profits, competitive products, companies, processes and structures, activities, goals, objectives, strategies, marketing information.

The main objectives in developing marketing plans for the company are:

Ensuring sales growth;

Expansion of markets of goods;

Customer satisfaction;

The main marketing strategies that ensure achievement of these goals are: intense, integration and diversified development of the enterprise.

Intensive development is the market penetration and development of new products. Integration development is the ties improving with the suppliers and intermediaries, improving the channels of distribution of goods. Diversified development is the development and sale of new goods in new markets.

The company’s marketing plan includes the following major sections:

the analysis and evaluation of the marketing situation;

marketing goals and objectives for the planning period, the marketing strategy;

program of action on a range of marketing, the marketing budget;

control of marketing.

Stages of marketing planning at the enterprise are:

Analysis, evaluation and prediction of marketing situation, identifying current and potential problems of marketing;

Defining the purpose of marketing for individual market segments and products;

Analysis of the economic portfolio of the company;

Planning for economic development portfolio;

Analysis of the company’s marketing strategies;

Selection of the basic strategies for markets and goods.

Marketing planning is carried out in different organizations in different ways. This applies to the content of the plan, the duration of the horizon planning, development sequence, organization planning. So, the range of content marketing plan for different companies is different: sometimes it is only slightly wider than the plan of the sales department. On the other hand, a marketing plan based on the broadest consideration of business strategy, resulting in the development of the integrated plan covering present all markets and products. Some organizations, especially small enterprises may not have the marketing plan as a whole document that incorporates multiple types of marketing plans. The only planned documents of these organizations may have a business plan drawn up to the organization as a whole or for individual directions of its development. In this regard, provides information on market segments and their capacity market share, the characteristics of consumers and competitors, are described by the barriers to entry; formulate strategies markers Keating, are forward-looking assessment of the volume of sales for a few years (possibly for 5 years) with a breakdown made folding.

The annual marketing plan describes the current marketing situation, the goals of marketing activities, and marketing strategies for the current year.

The annual marketing plan includes plans for a separate production, certain types of products and individual markets. Thus the annual howl marketing plan operates at the level of individual units of organization and marketing functions, and includes in its membership issues in the following areas:

Market research;

Product policy;

Price policy;

The communication policy.

This approach to the planning of marketing, combining the solution of its strategic and tactical goals, makes it possible to overcome the contradictions that arise when trying to split marketing on the strategic and operational. In this case, it is understood that the strategic branding is essentially a continuous and systematic analysis of the needs of the market that displays on the development of efficient goods held for specific groups of consumers having special properties that distinguish them from goods of competitors and thus, giving the manufacturer to create a sustainable competitive advantage.

The operational marketing is pricing, promotion and distribution of goods, that is, the use of a number of species of vigorous activity, providing the sale of goods.

In recent years in our country shows the interest in the development of business plans. It seems appropriate to define the place of business plan in the planning system company, its connection with the plans of the marketing. Although for small businesses can be developed only one business plan for most enterprises a business plan is just one of the plans of their production and business and sales activities. Business plan is a plan of production and economic and marketing activities of the enterprise, which occupies an intermediate position between the strategic plan of the company and its annual marketing plan.

The purpose of a business plan is to establish a sufficiently broad goals and strategies of business activity for the Strategic Bussiness Unit (SBU) the period up to five years. In this aspect, that business plan is similar to the strategic plan, which also focuses on a sufficiently long period of time. Another common feature of these two plans of a strategic consideration of the development or acquisition of new products, entering new markets in order to achieve desired financial goals. The business plan, as well as a marketing plan based on thorough market research.

A business plan can include the following sections: details of the organization, a description of the business, including characterization of ownership; its current state and prospects of development management of the organization, including brief biographical information on the leaders, characteristic of the products, goals and strategies; market research (market segments and their size characteristics of consumers, competitors, market share, barriers to entry), strategies of marketing, forward-looking assessment of the volume of sales for a few years (maybe five years) with a breakdown made folding, funds and use them with a detailed justification of needed hard currency; justification terms of repayment.

You can select several principles that should be used by domestic enterprises in the planning of their marketing activities:

A systematic approach to planning. Business plan is a system that volumes unifying set of interrelated plans, one of which is the marketing plan.

A variety of types of businesses, their goals and objectives of manufactured products (services) that generates a variety of approaches to the planning of marketing activities.

Multivariate situational planning.

Dynamic, continuous nature of planning, the immediate entry in the plans of all changes affecting the activities of the company.

Participation in the planning, every employee implements plans of marketing is to take part in their development.

Marketing organization in the enterprise includes:

Determination of the organizational structure of marketing management, personnel recruitment and placement;

Establishing the rights and obligations of employees of marketing;

The creation of conditions to employees to meet the challenges of marketing;

The organization of interaction with other departments.

To identify the organizational structure of marketing management is to identify the elements of the management system, establish a relationship of subordination and in the process of making and implementing decisions.

Functional responsibilities of marketers are defined by job descriptions. It is also established the qualifications, knowledge, rights and responsibilities of the employee.

One of the modern ways of increasing the effectiveness of the activities of the major companies is a re-engineering (the reorganization of the corporation), based on the transition to a flatter management structures (with fewer levels of hierarchy in the management), on wide application of approaches to marketing and computer information technology, to shift the emphasis to the management of business processes instead of managing the small functions. Reengineering requires managers and specialists of greater professionalism and universalism, creative approach to business.

Type of organizational structure of marketing management is determined by the sign, on which the internal structural divisions of the marketing department stand.

The main structures of marketing management are:

Functional;

Commodity (functional and commodity);

Regional (functional and regional);

Matrix – that suggests the presence of a number of programs, each of which have arisen as a director and a set of functional units.

An extensive marketing service is organized in many industrial enterprises in Belarus now. Most of them are organized on the basis of established markets. Such continuity is playing the negative role because that commitment from the supply management concept.

Sophistication of marketing services in the industry is largely depended on the size of the enterprise and production, ownership, industry.

Control of marketing is the process of analyzing and evaluating the results of marketing and howling of the enterprise, the implementation of corrective actions to achieve the objectives of marketing.

The monitoring process of marketing includes the following steps:

setting targets;

determination of actual values and the comparison of planned and actual values;

determining the causes of the deviation of the actual values from the plan;

development of proposals for improving the actual values of indicators in the event of deterioration.

The objects of control of marketing are: sales and profits and market share by segment and goods; the ratio of the cost of marketing and sales volumes and profit; competitiveness of products, businesses, processes and structures; activities, goals, objectives, strategies, marketing information.

As a result, monitoring and analysis of a marketing plan and strategy can be corrected. The reasons for the adjustments may be changes in the external and internal environment, planning errors, deficiencies of marketing management.

The annual schedule control includes analysis of sales;

Competitive position (and its dynamics);

The ratio between costs and sales;

Financial analysis;

Customer relationship to the company and its products.

Control of profit on goods, groups of buyers is based on the analysis of balances income and expenses.

Monitoring the effectiveness of the cost of marketing involves the analysis of policy sales, distribution and promotion of products.

From time to time the company needs to evaluate the effectiveness of marketing activities. Such an assessment is carried out through a revision of the brand-Thing in strategic control.

Audits are:

Macro-environment (natural, economic, demographic, political, of scientific and technical, social factors, cultural factors, etc.);

Micro-environment (competitors, suppliers, buyers, brokers, contact audience), the marketing mix;

Market research (segmentation and positioning);

Marketing management (objectives, strategy, current marketing plan, management structure, control).

SECTION 2 PRICING

THEME 9. THEORETICAL BASIS OF PRICING

Prices are the indicator of the economy as a whole. Historically speaking, the essence of prices was seen from 2 perspectives:

1. Cost Theory (19-th century Marx) the essence is to ensure that the price of a warrior, is a monetary expression of value of goods. Cost is embodied and materialized in a product of social labor. Therefore, the price being a form of monetary value reflects the costs of socially necessary labor.

2. Economics (western economy theory) Product price does not depend on the manufacturer’s cost, but on the evaluation of the usefulness of such expenses by the buyer. Neoclassical direction is when the market economy works best, if each of its subjects has maximum economic freedom. Free movement of prices on the market is a market economy. Austrian School is when the price has no objective basis and is determined not by the amount of labor in the production of goods, and subjective perceptions of the usefulness of the good, which estimates of the consumer in terms of the final result of consumption of this product.

While developing a theory of market pricing appeared (Marshall). The theory is based on the theory of production costs (value theory) and the theory of marginal utility. The market price is the maximum price that a consumer is willing to pay based on the assessment of subjective utility and that the minimum price at which the manufacturer agrees to sell goods.

The theory of regulated capitalism. Keynes showed that in a developed market economy showed that prices cannot perform the function of the classical universal operational control. Prices are inactive, and disorient entrepreneurs in deciding whether a change in output. Therefore, achieving the equilibrium state of the economy, together with overcoming the negative effects (inflation, no-unemployment) is only possible as a result of deliberate government regulation.

Model of social market economy. The basic idea of this model in conjunction of elements of market and planned economy.

Friedman proposed a theory of resuscitation (active development of economic processes) – monetarism. It is targeted limit of growth of money supply in the economy. Money plays the main role in the economy, as they have an impact on the price level.

The transition from a planned to a market economy implies the definition of state price policy. The main directions of money policy in the Republic of Belarus in the short and long term are reflected in the developed and adopted by the government in the concept of pricing in the Republic of Belarus. The aim of perfection of pricing system is the creation of such a mechanism, which would create the conditions for the effective use of resources, raising competitiveness of the economy, the priorities of state policy, while maintaining equilibrium in the market and on this basis to improve the living standards of the population.

The pricing principles are the following: a combination of free and regulated prices;

• segregation of subjects pricing installed and price regulation;

•establishing regulated prices at a level ensuring subjects of the economic coverage of economically justified costs and obtaining of sufficient for the expanded reproduction of profit, if necessary to the provision of government subsidies and other measures of government support;

• state control over the laws of the pricing.

Legal basis for public policy in the area of pricing in the country, as well as the scope of the free and regulated pricing, the power of state bodies exercising regulations of pricing and control over them, were laid down in the law of the Republic of Belarus «On pricing.» The same document set rights, obligations and liability of pricing into which the Company with the right to a legal entity, the entrepreneurs, the republican and local governments. The Decree of the President of the Republic of Belarus «On certain measures to stabilize prices (tariffs) in the Republic of Belarus» in addition to the existing legislation on pricing was adopted.

In particular, the Decree established that the territory of the Republic of Belarus is not allowed the growth of prices (tariffs) for goods (works, services), without taking appropriate measures to protect the population.

Republican government set prices on a number of goods and services. In particular, the Ministry of Economy approves the price on crude oil, natural gas and LPG, petroleum, electricity, certain socially important goods, products of defensive value, alcohol, vodka, rent, trade margins. The right to approve and monitor prices also endowed with the Ministry of transport and communications, telecommunications, health care, culture, housing and municipal, forestry and others.

Local authorities are given the power to regulate prices and trade margins for socially important goods and services such as heat and water supply, sewerage for businesses, public services for the population, transportation of passengers by public transport, products, catering and others. The possibility to limit prices on the products of subordinate enterprises also ministries and departments have.

The pricing methodology is common to all levels of pricing, that is, the basic rules and regulations of pricing do not change and do not depend on who sets the price and for how long. This is a prerequisite for establishing a single price system, operating in the economy.

The components of the methodology of pricing methods are methods of pricing and pricing principles.

The most important principles of pricing are:

• scientific substantiation of prices;

• orientation of the target price;

• continuity of the pricing process;

• unity of the process of pricing and enforcement costs.

The principle of the scientific substantiation of prices is the need for knowledge and the account in the pricing of the laws of the market economy, and, above all, the law of value, the law of supply and demand.

Scientific substantiation of prices is based on a thorough analysis of the conjunction tours of the market, all market factors, and the existing system of prices. It is necessary to identify trends in the development of production in the future, to forecast changes in the level of costs, demand, quality of goods, etc. The scientific substantiation of prices depends largely on the completeness of the information support for their establishment, it requires an extensive and diverse information and, above all, economic.

Targeting prices is based on the necessity to define the priority economic and social problems whose solution should be used for money. An example is the orientation of the price development of a fundamentally new, advanced products, increase of its quality. For these products immediately after its release, and to expand its production prices are set to provide maximum (monopoly) profits. Target priorities and target the direction of price changes at each stage of economic development.

The principle of continuity is determined by the dynamics of the pricing process. This is evident, for example, that the product in its movement from raw materials to finished product undergoes several stages. For each stage of goods movement its price is set.

The principle of unity of the pricing process and monitor observance of prices is that public authorities, which defines the regulatory and price are required to control them. Such control is distributed primarily on products and services, on which is accomplished in government regulation (gas, electricity, socially important goods and services). In addition, monitoring is carried out and on those products for which prices are set free. The purpose of this control is to verify the correct application of the established by the laws of the pricing rules. In case of violation of discipline prices businesses and organizations are imposed administrative and economic sanctions. They distinguish state control, control of public bodies at different levels of pricing and public control by the trade unions and consumers.

It is necessary to distinguish the methodology and methods of pricing. Based on the methodology the strategy is developed; and methods contain specific guidance and tools to the implementation of this strategy.