DEVELOPING MARKETING PRICING STRATEGY IN THE ENTERPRISE MANAGEMENT SYSTEM
Kyrylo Ogdanskiy, PhD in Economics, Assistant Professor, University of Customs and Finance, Dnipro
Valentyna Shevchenko, Candidat of Science (Public
Administration), Associate Professor, Alfred Nobel University, Dnipro
Olga Katerna, PhD in Economics, Associate Professor, National Aviation University, Kyiv
Nadiia Antypenko, Doctor of Economic Sciences, Professor, National Aviation University, Kyiv
Abstract. It is substantiated that vulnerability of industrial enterprises to the complex changes of the internal and external environment is largely explained by lack of certain management tools for the enterprises, namely organizational-economic and information support for industrial marketing management monitoring. The monitoring means a specially organized systematic surveillance on compliance of the results of industrial marketing management with the defined goals in order to make the necessary corrective management decisions in modern conditions of functioning of enterprises and deepening of crisis phenomena in the external environment. In order to build a system of competitiveness marketing management of an enterprise and products, a conceptual model of developing a pricing management system for an industrial enterprise is proposed in the article, which includes the following activities: defining the purpose of building a "pricing management system", setting the tasks of building a system within the chosen goals, development of the main components for implementation of the set tasks, study of conditions and factors that influence the choice of forms and methods of price management, construction of a situational model of price management, selection of the criterion for price management efficiency from the point of view of implementation of competitive enterprise strategy.
Keywords: enterprise pricing strategy, price management system, monitoring, industrial marketing, management tools
РОЗРОБКА МАРКЕТИНГОВОЇ ЦІНОВОЇ СТРАТЕГІЇ В СИСТЕМІ УПРАВЛІННЯ ПІДПРИЄМСТВОМ Огданський Кирило Миколайович, кандидат економічних наук, доцент, Університет митної справи та фінансів, Дніпро
Шевченко Валентина Миколаївна, кандидат наук з державного управління, доцент, Університет імені Альфреда Нобеля, Дніпро
Катерна Ольга Костянтинівна, кандидат економічних наук, доцент, Національний авіаційний університет, Київ
Антипенко Надія Василівна, доктор економічних наук, професор, Національний авіаційний університет, Київ
Анотація. Обґрунтовано, що вразливість промислових підприємств до комплексних змін внутрішнього і зовнішнього середовища багато в чому пояснюється відсутністю у підприємств певних інструментів управління, а саме організаційно-економічної та інформаційної підтримки моніторингу управління промисловим маркетингом. Моніторинг означає спеціально організоване систематичне спостереження за відповідністю результатів управління промисловим маркетингом певним цілям з метою прийняття необхідних коригувальних управлінських рішень в сучасних умовах функціонування підприємств і поглиблення кризових явищ у зовнішньому середовищі. З метою побудови системи управління маркетингом конкурентоспроможності підприємства і продукції в статті запропонована концептуальна модель розробки системи управління ціноутворенням для промислового підприємства, яка включає в себе наступні заходи: визначення мети побудови "системи управління ціноутворенням", постановка завдань побудови системи в рамках обраних цілей, розробка основних компонентів для реалізації поставлених завдань, вивчення умов і факторів, що впливають на вибір форм і методів управління цінами, побудова ситуаційної моделі, вибір критерію ефективності управління цінами з точки зору реалізації конкурентної стратегії підприємства.
Ключові слова: цінова стратегія підприємства, система
управління цінами, моніторинг, промисловий маркетинг, інструменти управління
The current market conditions of economic development are characterized by aggravation of competition between manufacturers both in the domestic and foreign markets, development of globalization processes, which are accompanied by increased activity of technogenic changes, which in turn puts increased demands on production enterprises in terms of increasing competitiveness of products.
Вісник Університету «Україна», № 7 (34), 2023
Success of any business unit, regardless of the activity profile, depends on its ability to react and properly track any changes occurring in the external environment and reflect them in the strategy of prospective development, commercial and product policy of the enterprise in the form of appropriate management decisions.
In the industrial sphere, the situation is complicated by the specific features of production systems of enterprises and products, which increases the risk of their entry into the markets. Accordingly, in such circumstances, the role of marketing activity is growing significantly, but not as an independent function that can be observed in the practice of most manufacturers, but as one of the main systems of the enterprise, which provides communication with the external environment in close interaction with its production subsystem. Therefore, there is a need to develop an effective industrial marketing management mechanism for an enterprise, which will ensure implementation of its competitive strategy, closely coordinated with its production subsystem.
The purpose of the work is a scientific substantiation and development of theoretical and methodological foundations, scientific and methodological and practical recommendations on development of the mechanism of industrial marketing management for enterprises.
Problems of managing competitiveness of production for an enterprise on the basis of marketing are sufficiently studied by many scientists-economists (Hallberg, N. L. (2017)).
However, their solution still requires considerable effort in many scientific and practical fields. In particular, this concerns development and production of new competitive products, that is, the innovative activity of an enterprise, as well as its promotion on the market, improving marketing strategies, i.e. using innovative marketing (Yang, M., & Gabrielsson, P. (2017)).
In the conditions of constant increase of the cost of material resources, the main direction of increasing competitiveness of products is to reduce its material intensity (Rinallo, D., Bathelt, H., & Golfetto, F. (2017)).
Therefore, from our point of view, it is advisable to consider the process of managing the material consumption of products on the basis of marketing as one of the components of the process of managing competitiveness of the manufactured products. (Anees-ur-Rehman, M., Wong, H. Y., Sultan, P., & Merrilees, B. (2018)).
According to the goal of the study, one of the tasks that is solved in this paper is theoretical substantiation of the modern concept of marketing (Iankova, S., Davies, I., Archer-Brown, C., Marder, B., & Yau, A. (2019)). However, according to experts, not all businesses, organizations, firms that declare or profess the marketing concept, put it into practice (Adrodegari, F., & Saccani, N. (2017)).
Such businesses are limited to the formal elements of marketing: introduction of positions of Vice President (Deputy Director) on marketing, product manager, development of marketing plans or implementation of its individual functions, such as market research (Payne, A., & Frow, P. (2017), Gummesson, E. (2017)).
In comparison to other types of marketing, industrial marketing has received insufficient attention in Ukrainian marketing science, although the industrial marketing is one of the most complicated and requires special attention and specific approaches at all stages of the enterprise activity: development, production and delivery of industrial products to the consumer (Wieland, H., Hartmann, N.N., & Vargo, S.L. (2017). Therefore, the importance of industrial marketing is explained by specific features of the industrial sphere itself.
Summarizing, we should note that in the current conditions of globalization of economic activity, which is often accompanied by economic and socio-political instability and uncertainty, it is impossible to ensure effective functioning of industrial enterprises without industrial marketing on the basis of a clear and modern system of managing their marketing activities. (Kienzler, M., & Kowalkowski, C. (2017)).
Insufficient use of marketing is caused, on the one hand, by a lack of full understanding of the needs and capabilities of marketing tools, and on the other hand, by lack of qualified specialists in this area. (Bankvall, L., Dubois, A., & Lind, F. (2017)).
Analyzing various sources of information, it is safe to say that in most companies marketing is limited mainly by promotional activities and methods of promoting products or services (Cortez, R. M., & Johnston, W. J. (2017), Felix, R., Rauschnabel, P. A., & Hinsch, C. (2017)).
Excessive use of marketing is observed in those organizations that, for simple tasks, involve highly skilled professionals who should solve the problems, which leads to excessive marketing costs, impossible to compensate by business activities (Malshe, A., Johnson, J. S., & Viio, P. (2017)).
That is why, before deciding on the use of marketing principles in the activities of enterprises and organizations, it is necessary to determine the required level of application of marketing (Efrat, K., Gilboa, S., & Yonatany, M. (2017)).
Marketing activity is particularly important for industrial enterprises, which usually sell their products far beyond their location. In case of a boundary region, marketing is transformed into a regional and / or international (Cambra-Fierro, J. J., Centeno, E., Olavarria, A., & Vazquez- Carrasco, R. (2017)).
Вісник Університету «Україна», № 7 (34), 2023
However, in turn, it should be acknowledged that, despite increased attention on the part of researchers to marketing management problems, this issue is less studied for the industrial field than its general direction, where its main streams and relevant schools are developed. Therefore, a number of theoretical and practical problems related to development of a marketing management system in the process of implementing a competitive industrial enterprise strategy remain poorly researched.
The theoretical and methodological basis of the work is a set of general scientific and special methods that allow to systematically solve problems in the chosen direction of research.
To solve the set problems, the following methods of scientific research were used: dialectical cognition - for posing problems of research, exploring and elaborating in detail the object of study; abstraction and morphological analysis - for clarification and ordering of the categorical- concept apparatus in the chosen direction of research; philosophical and historical analysis - for studying evolution of the general principles of marketing theory; abstract-logical approach - for theoretical generalization of research results and formation of intermediate and final conclusions based on them; graphic-analytic method - for providing material clarity and schematic representation of a number of theoretical and practical provisions; experimental - for testing scientific and methodological approach to assessing effectiveness of marketing activities at industrial enterprises.
The informational base of the research consists of official reports and analytical publications of leading international economic organizations; basic provisions of scientific works of scientists within the problem field studied; reporting data and source documentation of industrial enterprises; information from the Internet; results of the author's own scientific and empirical studies.
Despite a large number of methods and approaches in today's pricing policy, there is an urgent need for the industry for proper pricing and a sound and efficient pricing policy. This is especially true in the case of enterprises with mass production of a narrow range of products, when different manufacturers do not have a fundamental difference in the technical level of goods.
In this case, the marketing pricing policy is reduced to setting such prices and manipulating them in order to take a stable position on the market, to take its maximum share and to maximize profit. This, in turn, will allow to solve strategic and operational tasks.
Due to importance of linking price levels to volumes of sales, this issue is given much attention in modern marketing. Thanks to it, the main focus is not on setting the maximum price level, but on choosing the optimal value that will give the maximum profit to the enterprise.
It is established that the cycle of strategic price management at an industrial enterprise has a long-term period and includes several cycles of tactical (mid-term) management, and the last - several cycles of operational (short-term) management, which ensures continuity of the strategy implementation process
The main goal of strategic price management is to establish the best price level, the level that will maximize profit, that is, provide rational marketing price management from a strategic perspective, integrate existing techniques and methods of price management when using marketing tools, and therefore creating a long-term competitive advantage.
With methodological support of formation of a price management system using a marketing approach for an industrial enterprise, it is necessary to form a conceptual model of marketing price management (Figure 1), which should be based on a differentiated approach to price management, depending on the goals and market situation, which is aimed at implementation of competitive strategy of an industrial enterprise.
The model shown in Fig. 1 covers such theoretical and practical areas as:
integration of price management tools depending on the management level;
construction of basic and organizational-functional model of strategic price management system formation;
developing a situational model of six types of price management;
selecting a method of evaluating effectiveness of implementing the development data.
From the point of price management, the in-out model can be extended, reflecting the essence of the economy of production, the main objects of influence in this system, as well as factors of the external and internal environment of the enterprise, which determine the nature, orientation and effectiveness of the managerial influence. Accounting totality of the last two components will allow to determine the most appropriate of the available alternative directions of competitive strategy for the enterprise. These three reduced variables - the dynamics of the financial state of the enterprise, strategic orientation and type of competition - are the axes of the matrix in Figure 1.
In the proposed matrix, when selecting strategic guidelines, two main ones were used. The first guideline is technological, when both the well- established production of goods and search for new goods are based on available technologies that are inherent in the activity of the enterprise on the market. The second guideline is marketing, when all resources of the enterprise are focused on meeting the needs of consumers.
It is well-known that the index of profit dynamics during the planning period compared to the basis may either remain unchanged or be longer or shorter, reflecting three possible variants of changing the financial position of an enterprise in a certain time interval, which is reflected in the matrix of situational price management (Fig. 2).
Due to the six quadrants formed by taking into account three independent variables an enterprise may choose its own approach to price management that is appropriate to the strategic position of the enterprise. Each quadrant is characterized by a special orientation of price management processes (Table 2), and positioning in one of the quadrants of the matrix corresponds to a certain stage of enterprise functioning, which largely determines the nature of price management actions.
In each individual quadrant, the enterprise sets different goals and develops specific strategies to achieve them, all with the aim of finding the best business activity in each situation, predicting effective ways of development, strengthening own position or transition to the best for business segments of the market.
Traditionally, a product competitiveness indicator is a function of two variables: price (and, accordingly, its costs both for production of goods and its operation) and quality. It is established that in assessing competitiveness of a product it is also necessary to take into account another its parameter - maintenance, which means the whole range of branded services provided by the supplier to the consumer during the entire operational cycle.
In its turn, quality should include the technical and functional state of the product, uniqueness, environmental safety and innovation. Innovation should be understood as a set of new product features introduced at the enterprise for the first time.
Thus, the success of goods on the market is determined by a combination of three parameters - price, quality, service. Finding the right combination of these parameters is a promising way to manage prices. In this connection, the author introduces a new concept of "space of product competitiveness”, characterized by indicators of price, quality, service. Once in this space, the product will be sold to the benefit of the enterprise, provided the highest level of consumer satisfaction. Description of the parameters that form the space of product competitiveness are presented in Table 3.
Under current conditions, characterized by a high level of dynamism of the economic situation, successful functioning of industrial enterprises depends largely on their ability to respond to and adapt to changes in the external and internal environment. An important role in this process belongs to monitoring, which, on the basis of systematic surveillance, analysis and predicting of controlled indicators, ensures timely and complete management information necessary for making informed decisions and evaluating their possible consequences.
It remains problematic to ensure systematic monitoring in some areas, including marketing. Vulnerability of industrial enterprises to complex changes of the internal and external environment is largely explained by the lack of certain management tools at the enterprises, namely organizational and economic, information support of industrial marketing management monitoring.
Industrial marketing management monitoring system is an information-analytical system of providing process of industrial marketing management of enterprise with timely qualitative and quantitative data for regulation and correction of organization of its marketing activity, effective management of current state of innovative activity and prospects of further innovative development.
Management accounting data are used to form the monitoring information-analytical base. An information-analytical monitoring base is a system of indicators that reflects a given state of marketing activity, which is determined by goals of industrial marketing management.
It can vary in both quantity and composition of indicators according to adjustments to the goal and performance indicators of marketing activities, which can be conducted to eliminate the effects of factors and bring the object to the balanced state.
In modern economic crisis conditions, the system of monitoring performance of marketing activities of the enterprise should be dynamic, because changing external environment causes constant corresponding changes in the internal environment, and therefore, the indicators that form its basis require constant revision.
Organizational and economic support of industrial marketing management monitoring is aimed at creation of a special monitoring service and realization of the following complex tasks: organization of the process of gathering, accumulation and transfer of information; organization of information support of problem solving; control over implementation of management decisions in the mechanism of industrial marketing management.
Monitoring information support is its important component, enabling timely acquisition of reliable data on the current state of the enterprise, which is determined by the goals of industrial marketing management, and the prospects of its change taking into account the impact of the external environment.
In the result of the conducted research an organizational model of price management at an industrial enterprise with a maximum orientation on marketing principles was developed, which allows to show cause and effect relations during its functioning, and to a certain extent to reflect results of interrelations of objects of the given environment that takes into account the degree of influence on the process of external and internal factors. In addition, a functional scheme of price management was developed, which takes into account the degree of influence on the performance of nonfinancial factors on the pricing process, supported by an appropriate program of actions in the system of strategic pricing management at an enterprise using specific financial indicators.
A general model of pricing and pricing factors management in the industrial sphere is formed, supported by appropriate measures aimed at achieving the strategic goals of the enterprise, and will also make it possible to control in real time the status of strategy implementation. At this stage, due to applying the proposed model, the enterprise will be able to approach the pricing process not only on the basis of own expenses, but in addition to this, on the basis of the level of consumer (tangible) value, demand trends and other non-financial indicators, which will allow to adjust the cost manufactured products to increase profits.
In order to develop a marketing method for establishing a final price for industrial products, the nature of the decision-making on purchasing such products was carried out, and taking into account the current changes on the industrial markets and change of priorities (identified in the previous sections), the general scheme of such decision-making process was improved.
Analysis of achievements of economists has revealed the necessity of calculating the best price. In today's economy, there are methods of its calculation, but despite their value, they all have a one-sided orientation (only take into account either market or internal factors), which greatly reduces their efficiency in the industrial sphere.
In this regard, appropriate studies have been conducted that have identified a possibility of developing an appropriate methodology for establishing the best price, taking into account the degree of influence of all relevant factors.
Application of this formula is not limited to the sphere of activity and the type of goods manufactured. With equal success it gives the desired accuracy of calculations for both industrial and consumer products.
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