Finance 231 Alausaeva A K Marketing is

Finance 231 Alausaeva A. K.

Marketing is at the same time philosophy of business and the active process. The first purpose of this chapter is the description of system of thinking, specification of ideological bases of marketing and their principal consequences for AND operations of the organization of firm. Marketing as the active process decides a row of the tasks necessary for accurate functioning of market economy. The second purpose of this chapter is the description of these tasks, importance and which complexity came to light in connection with changes in technology, economy, competitiveness and an international situation. Then we research consequences of these changes of the environment for control of firm and in particular marketing.

The term "marketing" - in literal sense advance process on the market - doesn't reflect fully an internal duality of process and accents more the "active" side of marketing in comparison with "analytical". To describe this duality, apply the terms "strategic" and "operational" marketing.

Operational marketing is an active process with short-term planning horizon directed on already existing markets It is classical commercial process of receiving the given sales volume by use of the tactical means relating to goods, sale, the price and communication. Main objective of operational marketing - generation of the income from sales, i. e. a target turn. It means "to sell" and secure orders for purchase by use of the most effective methods of sales in case of simultaneous minimization of expenses. The purpose of achievement of a certain sales volume is transformed to the production program for department of AND operations in the program of storage and physical sale for sales department. Thus, operational marketing is a defining element which directly influences short-term profitability of firm, Activity of operational marketing - a decisive factor in firm activities. especially on those firm functions. Regardless of, whether the goods "are retracted" by the market or pushed" technologically, it shall pass monitoring of strategic marketing for an assessment of its economic and commercial competence. Coherence between service of researches and development (Research and development), production and strategic marketing plays in this regard a crucial role. The choice of the market of the goods, growing out of this coordination, creates a basis for determination of production capacities and acceptance of investment decisions and is therefore vital for support of equilibrium of all financial structure of firm.

Strategic marketing is first of all the analysis of needs of individuals and the organizations. From the point of view of marketing the buyer not so much needs goods, how many wishes a solution which can provide goods. The decision can be found by means of different technologies which in itself continuously change. Role of strategic marketing - to track evolution of the given market and to reveal) the different existing or potential markets or their segments on the basis of the analysis of the needs needing satisfaction. The revealed commodity markets represent the economic opportunities which attractiveness should be evaluated. Attractiveness of the commodity market is quantitatively measured by concept of capacity of the market, and dynamically characterized by duration of the existence, or life cycle. For specific firm attractiveness of the commodity market depends on its competitiveness, otherwise, from its ability to meet the needs of buyers better, than rivals. Competitiveness will exist until the firm retains competitive advantage or thanks to the special qualities distinguishing it from rivals, or owing to higher performance providing with it advantage on expenses.

The specified operation on judgment and strategic planning is very other than operational planning and demands other abilities from its participants. Nevertheless, these two functions are mutually additional in the sense that the structure of the strategic plan shall be tightly coordinated to operational marketing. Operational marketing places emphasis on such variables, as the price, distribution system. advertizing and goods advance. while strategic marketing is directed on a choice of the commodity markets. on which the firm has competitive advantage, and on the forecast of the general demand on each of the target markets. Proceeding from this forecast, operational marketing, sets the purposes on a gain of a share of the market, and also the marketing budget necessary for their achievement.

Some firms restrict strategic thinking to the administrative personnel surrounding the managing director and placed in headquarters, far from operational work. But, to be effective. strategy shall be based on profound knowledge of the market, and implementation requires it appropriate plans of penetration for the market, and also a policy of sale, pricing and advertizing. Without it even the best plan has a few chances of success. The selected organization of marketing shall therefore at the expense of the interfunctional coordination to provide involvement in the course of strategic marketing of all levels of firm. In major companies very effective there was a commodity organization of control; in small and medium-sized companies the same results can be received by creation of time and periodic structures, such as the groups of strategic planning consisting of key managers. All effectively operating companies anyway are engaged in strategic planning. This function it becomes considerable more important in connection with technological, economic, competitive and welfare changes, characteristic for the 1980 th and 1990 th years

1) to base the activities on strategic opportunities. reliable and accurately certain, 2) to develop monitoring systems of the environment of marketing and the competitiveness analysis, 3) to increase ability of adaptation to changes in the environment, 4) regularly to reconsider a business briefcase.

In the conditions of the present competitive environment anybody actually doesn't dispute importance of marketing. Hardly someone will doubt that a directivity of all business activity on need of the buyer or the user is the only way to do business. Despite a consensus, many companies in practice are restricted to only operational marketing, leaving marketing strategic in the sphere the benefits of intentions. One business - understanding of the concept of marketing; following of this philosophy of action absolutely other. The company perceiving this philosophy, will be delivered before need of creation of the organization controlled by the market, appearance and which actions are collocated to the marketing concept. Creation of excellent value for a customer when receiving profit is something much bigger, than marketing function. It is the purpose of all organization activity, instead of one department. Differently, strategic marketing is too important for the organization as a whole. to bring together it only to activities of commercial services.