UDC 339.138
THE MARKETING MIXEQUILIBRIUM IN THE DEVELOPMENT AND CONTROL MANAGEMENT STRUCTURE
StetsenkoV. А.
National University of Food Technologies, Ukraine, Kyiv
Summary. Derived indicator for the marketing mixequilibrium has been presented in the article along with improved classification of varieties of marketing control by means of equilibrium control.
Keywords: the balance of marketing mix, business development, marketing control.
Стеценко В. А. Збалансованість маркетингового комплексу в структурі управління розвитком та контролі/ Національний університет харчових технологій, Україна, м. Київ
Анотація. У статті розроблено показник збалансованості маркетингового комплексу, удосконалено класифікацію видів маркетингового контролю шляхом введення контролю збалансованості.
Ключові слова: збалансованість маркетингового комплексу, розвиток підприємства, маркетинговий контроль.
Стеценко В.А. Сбалансированность маркетингового комплекса в структуре управления развитием и контроле/ Национальный университет пищевых технологий, Украина, г. Киев
Аннотация. В статье разработан показатель сбалансированности маркетингового комплекса, усовершенствована классификация видов маркетингового контроля путем введения контроля сбалансированности.
Ключевые слова: сбалансированность маркетингового комплекса, развитие предприятия, маркетинговый контроль.
Introduction. Constant aggravation of competition contributes to find the ways for improving business activity at every stage and in every link of the business. The need to improve the planning, analysis and control of marketing activities is stipulated by its significant place in the interacting system of the business.
Results. Pashchenko О.P. affirms that business development should be considered in the context of a composition of the business potential that is assets, productive, marketing and financial, etc. business strength[5].
That is the overall business development is conditioned also by the development of its marketing activity, which is reflected in increasing the effectiveness of marketing investments.
There are various methodological approaches for analyzing the effectiveness of marketing mix.
In native science Shapran O.S has developed a dynamic indicator of the marketing balance condition ( DIMC ) which is a set of indexes organized in the weight and growth rate in such a way as the maintenance of this order in real dynamics provides the desired business performance[6].
Kapustina T.A proposed a model for the separate analysis of all marketing balance elements. The output provision of the developed model is that sales are directly dependent on the business marketing balance and that its different components affect the sales volumes with different strength[2].
However, the theoretical and methodological aspects of determining the effectiveness of marketing mix in today's conditions demand further developments and adjustments.
In marketing theory the marketing mix is described as a balanced combination of controlled marketing elements which are used by the company to achieve its marketing goal in the target market[4]. Thus, the marketing mix contains manageable elements which can be directly generated and changed by the company during marketing activities, such as: to create a certain quality of the product, to set up the selling price of the goods, to determine the location and the form of their sale in the market and to create an appropriate promotion system. Thereby business expenses on each marketing mix item are directly related to the intentions of the company, its actual state in the market and external market factors.
The result of marketing activities depends directly on the cost structure in the marketing budget. Determination of optimal ratio of the cost on marketing mix elements will conduce to obtaining the maximum effect from marketing activities and achieving marketing mix equilibrium.
To determine the level of marketing mix equilibrium a coefficient of marketing mix equilibrium has been developed (the formula no.1):
(1)
Where - is actual level of the expense ratio on the n-marketing component in the company, - an expense ratio on the n-marketing component under equilibrium distribution.
The value of the coefficient marketing mix equilibrium varies between 0 and 1. Taking this into account it is proposed to divide the range into 4 equal parts (Table 1).
Тable 1
The Scale of marketing mix equilibrium coefficient values
|
Equilibrium coefficient value |
Marketing mix equilibrium rating |
|
0<≤0,25 |
The equilibrium level is high |
|
0,25<≤0,5 |
The equilibrium level is moderate |
|
0,5<≤0,75 |
The equilibrium level is low |
|
0,75<≤1 |
The marketing mix is not balanced |
If the value of is zero, then marketing components’ expenses can be designated as completely balanced. The higher value the lower the equilibrium level.
After the marketing mix equilibrium indicator was incorporated into research methodology of marketing activity the need to update the classic attitude to marketing control by adding equilibrium control has been appeared. (Table 2).
Table 2
Types of marketing control*
|
Type of control |
Target of control |
Methods |
|
Annual plans’ execution control |
To determine whether planned results have been achieved |
Marketing analysis Analysis of market share Comparison of costs and sales Financial Analysis Marketing evaluative analysis , etc. |
|
Returns control |
To determine for what purposes the company use money and where they have been lost |
Returns rate by - goods: - territories; - byers; - market segments; - distribution channels; - the size of channels; - and so on. |
|
Performance control |
To evaluate and improve the effectiveness of spending money and the impact of marketing expenses |
To evaluate the performance of the - sales staff; - advertisement; - sales promotion; - distribution; - and so on. |
|
Equilibrium control |
To analyze the rationality of funds distribution between marketing elements |
The analysis of the marketing mix equilibrium level. Determination of the integral equilibrium index |
|
Strategic control |
To clarify whether the company uses its maximum capacity as to the markets, goods and distribution channels |
Marketing effectiveness evaluation tools Marketing audit Marketing quality revision Ethical and social company’s responsibility revision |
* Developed by the author using papers [1], [3].
Annual plans’ control is aimed at assessing the annual indictors of the company performance and comparing it with the planned indicators. It provides versatile analysis of the company’s state: competitive market position, financial stability, marketing activities. It is implemented by managers of medium and high level.
Returns control is the evaluation and implementation of corrective actions for the purposes of ensuring a profitability of various goods, territories, customer groups, distribution channels, activities in different markets.
Marketing control of the company level is focused in general at obtaining the information which is necessary for evaluation of marketing activities’ effectiveness and making management decisions based on it.
Strategic marketing control is a regular check of the compliance of the goals, strategic guidance, company’s programs and other strategic marketing decisions to marketing and tradable opportunities which have been already existed and those which are forecasted.
Thus, as a result of the control activities the effectiveness of strategic and tactical marketing plans of the company is evaluated as well as achievements in the field of marketing activities, the «Prices - Costs - Income» ratio and the results of innovations, etc.
Marketing control at the level of marketing department aims to evaluate the effectiveness of specific aspects of marketing activities during the short runs and evaluate the management competence of this unit for the long run.
Primarily the equilibrium control provides identification and evaluation of the equilibrium of company’s marketing mix components.
Resulting effect of the control is a corrective impact on the controlled factors and development of recommendations for the adaptation of company’s activity to marketing environment factors that are not controlled[1].
Conclusions: Development of marketing mix equilibrium indicator provides, firstly, the analysis of the distribution costs efficiency in the marketing budget, and secondly , the emergence of a new type of marketing control , thirdly , the possibility of making the most effective management decisions. All this contributes to the business development and improvement of its competitive position in the market.
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