Marketing audit of gene products
The theoretical basis of marketing in a company. Role of marketing in a company. New tendencies of marketing audit perfomance. Biotechnology market description. Marketing audit results analysis. Analysis of the internal environment of the organization.
Рубрика | Маркетинг, реклама и торговля |
Вид | дипломная работа |
Язык | английский |
Дата добавления | 01.07.2017 |
Размер файла | 1,1 M |
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Barriers of the market
According to (Marketline Research, 2016): «Strong intellectual property (IP) assets are vital for success in this market, and this raises barriers to entry» and there are more barriers below.
Firstly, biotechnology start-ups are typically spin-off companies, based on innovative products or processes resulting from discoveries in academic research. Such companies have long start-up periods with little profit; combined with high fixed costs, they must therefore secure a high degree of venture capital backing. This may be difficult to obtain given the long time before any return on investment is seen, as well as the relatively high risk that a start-up will not succeed in bringing a new product to market.
Then, an unfavorable macroeconomic and political situation creates risks when implementing investment projects in Russia. The outdated industrial base of domestic biotechnology companies that are not GMP certified significantly limits the production of innovative products and their withdrawal to foreign markets. High dependence on imports, for example, in the production of biotechnological substances.
The lack of qualified personnel, the lack of modern educational programs hinders the introduction of biotechnologies in existing plants. There is a significant shortage of financing R & D, in particular, departments of the Russian Academy of Sciences (PWC Global Report Team, 2015). The "half-heartedness" of state programs for supporting R & D does not allow to bring the development to the stage of commercialization and organization of industrial production of new products. Unclear localization rules for foreign biopharmaceutical companies, as well as the absence of similar programs in other biotechnology segments, do not stimulate the inflow of foreign direct investment into the Russian economy.
The lack of modern legislation, standards and technical regulations, environmental standards, restrains the development of certain segments of biotechnology (for example, biodegradable polymers, biological plant protection products, cellular technologies, etc.) (Воронин, 2013).
PEST-Analysis
Each of the four considered groups of environmental factors: political, economic, sociocultural / demographic and technological - contribute to the development and distribution of market densities in the world. In order to distribute these factors in order of importance, we will consider each of these factors separately. Political Unlike other factors of the environment under consideration, political factors are a direct product of the active will of the states that have the goal of winning a strategically important market, strengthening their positions on it and subsequently expanding. · Today, a lot of attention is paid to the biotechnology theme both on the world stage and in Russia. · Designate biotechnological industry as a national growth engine sectors · Various policies supporting biosimilar industry in accordance with the medical savings (Мальсагов, 2015) · No unified permit procedures among countries · Overlapping investment of national R&D projects (Marketline Research, 2016) Economical For health care costs, the leader is again the United States, which spends on health, according to WHO, 15% of GDP. There are also opposite examples: in Pakistan, on the contrary - one of the lowest indicators - only 3% of the country's GDP. The average country that is part of the Organization for Economic Cooperation and Development spends about 8% Of its gross national product for health needs; Only Switzerland and Germany go beyond 10%. (ВОЗ, 2015) · The volume of biotechnology gets seriously heavy (MOEX, 2015) · Innovation and personalized medicine and income increase (ВОЗ, 2015) · Reduction of R&D investment in pharmaceutical industry · Gradual strengthening of market entry for developing countries Social As noted above, in almost all regions the population of the older age group is growing. This trend is particularly evident in the advanced economies. From sociocultural factors it is necessary to note the increasing need of patients to independently monitor and take responsibility for their health, which gave impetus to the development of a whole product segment of diagnostic tests - "Quick" tests for self-use (OTC - over-the-counter tests). · Aging population increase · Individualization of bioeconomy paradigm shift · Ethical issues in the process in securing of biological resources · Scientification of natural substance for globalization (ВОЗ, 2015) Technology One of the engines of the industry can be called the constant appearance and development of new technologies. At the moment, the "boom" is going through molecular diagnostics - a segment that grew out of technologies based on several fundamental discoveries of recent decades. · Low clinical trial success rates · Difficult to find initial target · Absence of toxicity of active metabolites · Stagnation of initial clinical phases due to immaturity of market · Needs of complex understanding required for biosimilar technologies (MOEX, 2015) |
One of the tasks of the marketer is to understand which of the environmental factors is most important for the enterprise in terms of the attractiveness of the industry, its capabilities and threats. Moreover, the answer to this question can be different for different market participants - a transnational giant and a small company, only planning to exit or seeking a way to the market in question.
Consider the situation from the point of view of a Russian small or medium-sized manufacturing company, which aims to win and strengthen its position in the world market of biotechnology diagnostics, and occupies a stable position in the Russian market.
The first factor is the political factor that has economic consequences. It is with the obstacles of a political nature that Russian manufacturers in the world market first of all face, since the availability of ISO, GMP, CE, FDA certificates is a necessary condition for entry.
Even with the latest innovative technology available, the manufacturer needs to go through all the registration stages, costly in terms of money and time, for introducing it to the market. It is necessary to pay attention to the receipt of certificates to the manufacturer first of all.
Second place in importance, it is assumed, is occupied by economic factors. As shown above, at the moment economic factors prevail over demographic ones. Despite the fact that the potential market capacity is high and continues to increase due to the high incidence, the real capacity is still determined by the economies of the regions
Technological advantage can be a great help to the manufacturer, but experience shows that the development of truly valuable technology requires a lot of money and the Russian enterprise should be ready for it, if it calculates and bets on the new technology. It should be noted that the approach to solving the problems of developing and introducing new technologies to companies is potentially profitable, based on intensive cooperation with scientific and innovative centers and organizations.
Five Forces Analysis
An analysis of the five Porter (Margretta, 2013) forces will be carried out based on the performance of companies that produce and sell biotech products. The key buyers will be companies that provide services to the end customer (providers).
Figure 7 Five forces analysis summary
The rapid growth of the market should prompt new players to enter the market, and also soften the competition, which is estimated as an average level (Marketline.com, 2016). There is a certain differentiation between suppliers, which weaken their positions.
Despite the fact that the industry has experienced fairly rapid growth (MOEX, 2015) over a period of several years, the industry is experiencing a high concentration of private intellectual property. At the very least, this is explained by the fact that start-ups are expensive, since they require significant investments in research, equipment procurement and further development.
Buyer Power
Figure 8 Buyer power force
The main flow of high technology consumers is concentrated in the agro-cultural sector and in the biomedical sector. While the medical biotechnology sector is the most profitable in comparison with all the others, the agro-industrial sector occupies a large volume of the market and is growing at a rapid pace. Successful products produced by manufacturers are often differentiated by their patent and profitability. All these factors reduce the buyer power.
Vital medicines may show very low sensitivity to prices, but rarely in this case the decision to purchase depends on the client. In many countries (including Russia), at least a few prices for the most essential drugs are controlled by the state.
There are many different approaches, but a common one is reference pricing, in which the price of each drug in the country is benchmarked to its price in a set of comparison countries. While the details of price regulation are complex, the overall impact translates into an increase in the buyer's belief.
Supplier Power
Figure 9 Supplier power force
The cost of biotechnology companies depends primarily on intellectual property (Marketline Research, 2016). The nature of this business allows them to be independent of suppliers. Various kinds of materials, tools, computers and other equipment are very specialized, but they are widely available.
The main suppliers are manufacturers of chemical reagents and laboratory equipment. Facts suggest that there is some degree of differentiation between suppliers (MOEX, 2015).
Factors supporting supplier power include the small likelihood of backward integration by market players, and, whereas buyers cannot substitute certain raw materials or equipment with any others, the suppliers have ample choice of customers in markets other than biotechnology. In general, the strength of the supplier is at an average level.
New entrants
Figure 10 New entrants
Government regulations in most countries are extremely strict, requiring lengthy and costly clinical trials of new drugs, and safety testing of Genetically modified (GM) crops. In order to clinically test, manufacture, and market biotech products, (especially for therapeutic use) players must satisfy mandatory procedures and safety and effectiveness standards established by various regulatory bodies (Бурмистров, 2012). The compliance costs and the possibility that a new product may ultimately fail, as well as the necessary tests constitute another entry barrier. Overall, the threat of new entrants is assessed as weak. Government regulations in most countries are extremely strict, requiring lengthy and costly clinical trials of new drugs, and safety testing of Genetically modified (GM) crops. In order to clinically test, manufacture, and market biotech products, (especially for therapeutic use) players must satisfy mandatory procedures and safety and effectiveness standards.
Threat of substitutes
Threat of substitutes
For the biotechnology market, conventional therapeutic drugs, tests, etc. will be substitutes. All substitutes are produced by chemical synthesis procedures which makes it difficult to assess their actual usefulness. However, the continued growth of the biotechnology market makes it clear that some types of synthetic (conventional) goods or services are still less effective and reliable than those produced by biotechnology.
While patent protection can stop the threat posed by alternative types of drugs and chemicals for a period of time, it is likely that there will be a company in the market that can produce a similar product or service at a lower price. In general, the threat of substitutes is assessed as a medium-low.
Degree of rivalry
Figure 11 Degree of rivalry
In countries where the market is not developed (including Russia) (Marketline Research, 2016), a small number of companies will co-exist without special interventions on each other's activities. In the world market, however, there is a large number of start-ups and several large players (Merck, Amgen, La Roche).
This order of things increases rivalry. Companies can differentiate their product with a narrow focus on one area of medicine, but if you want to create something like a breakthrough in the biotechnology market, you will need a long, careful and costly investment in R & D and clinical trials. Even with positive results in the final stage of testing, a critical situation may arise, which will lead to devastating consequences for the company. All these factors increase the strength of companies' rivalry with each other.
The world market is growing much faster than the pharmaceutical market as a whole, which lowers the overall level of competition between companies. In the end, the strength of rivalry is regarded as average.
Chapter 3. Marketing audit results analysis
Before proceeding to the results of the analysis of the strategic aspects of the company's marketing functioning, we will review its history, characterize the key principles of the organization's activities, as well as the specifics of its internal environment, which may to some extent affect the final strategic choice.
Company characteristics
The company "Genoanalytika" was founded in 2007 by a group of Russian businessmen and scientists from the institutions of the Russian Academy of Sciences. The initial direction of the company's activity was performing experimental works on fundamental and applied tasks for academic customers. In 2009, the first in Russia service of personal full genome genetic testing "My Gene" (a genetic passport) was launched. In 2013, the first in Russia service for noninvasive prenatal diagnosis of aneuploidy of the fetus "DOT-test" was created. At present, they have: doctors of biological sciences, candidates of science, post-graduate students of Moscow State University. Lomonosov and FIC Biotechnology RAS. Many of their employees successfully combine scientific activity with work in the company, introducing their theoretical and experimental developments into corporate projects. Experiments and analyzes are realized without outsourcing - all stages of work are carried out in Russia in the research laboratory
Key areas of work (ЗАО "Геноаналитика", 2017)
* Reproductive medicine
* Genomics and transcriptomics
* Agrobiotechnology
* Bioinformatics and Systems Biology
* Oncogenetics
* Microbiology
* DNA Genealogy
* Pharmacogenomics
* Predictive and preventive medicine
Main products of the company (ЗАО "Геноаналитика", 2017)
* Non-invasive prenatal diagnosis (DOT test)
* Preimplantation diagnosis of aneuploidy (PGD)
* Molecular karyotyping (chromosome microarray analysis)
* Full-genomic sequencing
* Study of transcriptome
* Epigenetic research
* Genotyping and analysis of methylation on microchips
* Bioinformatic data processing
Features of the company's activities
* Branches are represented in more than 150 cities of Russia and Belarus.
* The company is the developers and executors of their own research and, accordingly, we have the opportunity to monitor each stage of production.
* Products and projects are provided with scientific and intellectual capital.
* The company has the lowest time
* The system of bonuses and discounts is discussed individually with each partner. (ЗАО "Геноаналитика", 2017)
Principles for the formation of the marketing strategy of the company “Genoanalytika”
According to the information received during the interview with the top management of the company, the function of marketing the company was based on the following principles:
1) Orientation, first of all, to highly specialized specialists in the field of gene research;
2) Development of a wide range of products, which, due to their specificity, are very demanding for a particular kind of research;
3) Establishment of partner relations with the B2B sector.
4) Positioning based on the advantages in quality.
Hence it can be concluded that when entering the market the company did not focus on identifying key consumer preferences. This led to the fact that, despite the great potential on the Russian market, the company could not successfully occupy any of the market segments firmly, thereby losing ground to its main competitors.
Table 4
Name |
Description |
Term of execution |
Cost, ? |
|
DOT-Test |
Genetic diagnosis of major fetal trinosomes |
10 |
29000 |
|
Molecular karyotyping |
Determination of the presence of microinsertions and microdeletions |
21 |
26000 |
|
Molecular karyotyping + 1 person |
Determination of the presence of microinsertions and microdeletions |
21 |
52000 |
|
My gene is health |
Full genetic passport |
42 |
35000 |
|
Full-Sequencing Sequencing |
Full decoding of the genome |
65 |
95000 |
This circumstance allows us to conclude that the development of the company's marketing strategy when entering a specific market must necessarily rely on its thorough analysis and identification of specific characteristics that affect the functioning of the market as a whole and the formation of demand for it in particular
Pricelist of products of the “Genoanalytika” company
The main partners of the company are the suppliers of research equipment: Illumina, Life Technologies, Applied Biosystems, etc.
The mission of the company can be formulated as follows: "Development and popularization of gene research in Russia, creation of jobs in the biotechnology market in the country, ensuring accessibility of research to ordinary citizens."
The long-term goal of the organization is to occupy a leading position in the biotechnology market in Russia and to win all state tenders in which the company participates.
Since its inception, the Genoanalytika has become a full-fledged participant in the market for genetic research, has won numerous tenders for the implementation of private, has formed a group of loyal loyal customers. However the brand awareness shows low results
Brand recognition in comparison with key competitors
Figure 12
This kind of low level of recognition is directly related to the company's mention in the media. Below is a graph that describes the statistics of the company's mention in the Media from the beginning of 2016 to April 2017:
Figure 13
As can be seen from the presented data, the company has a very low rating of mention in the media. The only peak occurred in January 2016, when at the Moscow State University. Lomonosov started an accelerator.Overall activity in mass media may be considered on an ultra low level.
Analysis of the internal environment of the organization
The company attaches great importance to the development of organizational culture. So, during the pre-diploma practice I had a chance to communicate practically with the whole team of the company. Much attention is paid to ensuring that every member of the company feels like a significant part of it; A lot of effort is attached to the successful adaptation of new employees of the company, as well as the process of development and motivation of personnel. Relations between the members of the team are built on an informal and friendly basis; In the office there is no dress code - all this in a total empowers employees and allows them not to experience psychological barriers that can adversely affect their productivity.
Any company in the formation of a competition strategy should, to one degree or another, rely on its capabilities; For this, it is necessary to carefully study its strengths and weaknesses, comparing various aspects of its activities with key rivals. In the framework of this study, SNW-analysis and SWOT-analysis of the company were conducted.
Parameters for which the analysis was carried out can be divided into 2 groups: those related to the internal environment of almost any company (personnel, corporate culture, finance, marketing and sales, technology) as well as the interviews and external factors that influence the success of the activity Companies in the Russian biotechnology market.
General aspects:
1) The staff. The company pays great attention to the selection of specialists for their positions, since every member of the team in the company plays a really important role.
2) Corporate culture. According to Jeffrey Zonenfeld the company lays on a "Club culture" basis which is characterized by loyalty, dedication and teamwork. Here the experience of workers is valued, they come here young and stay for a long time (often before retirement), gradually moving towards the highest service level. Workers have high professional competence. Such organizations are perceived by others as closed, changes in them occur slowly and gradually.
3) Technology. The company uses technological innovations that are identical in comparison with competitors.
4) Sales. The company's marketing strategy copies the one that was used by competitors, so this aspect of the company is on par with competitors. This is also approved by the interview analysis below.
Aspects that have the greatest impact on the possibility of obtaining competitive advantages in the Russian biotechnology market:
1) The price. The exchange policy is an important element of the overall strategy
Enterprise, is directly included in such a large section as Market strategy. It combines both strategic and Tactical aspects and in the most general form can be defined as Activities of the company's management to establish, maintain and Change in prices for manufactured goods, carried out in line with the general Strategy of the enterprise and aimed at achieving its goals and objectives. The company adheres to the policy of "better quality", guaranteeing the client the best result. “Genoanalytika” seeks to expand its range, thereby adhering to the strategy of differentiated prices. This strategy is applied by enterprises that establish a certain scale of possible discounts and premiums to the average price level for different markets, their segments and customers, the characteristics of the market and its location, the time of purchases and modifications of goods. This strategy provides for seasonal discounts, discounts for the amount of goods purchased, discounts for regular partners, the establishment of different price levels and their ratio for different goods in the overall product range, as well as for each of their modifications.
2) Relationship with customers. At the moment, the characteristics of the process of communication with the client, since the company has not properly established marketing communications. Since the company can not attract investment in the proper amount, the company does not have enough funds to market, which makes it difficult to create strong ties with the audience. During the analysis of the interview, I discovered the introduction of the CRM system at the initial stage, but the matter has not progressed much.
3) Interaction with logistics. The organization pays great attention to building an effective system of working with suppliers on mutually beneficial terms, which are much better than those of its main competitors.
4) Segmentation strategy. The company strives to act on a broad segment, meeting the needs of all customer groups. Taking into account the factors considered earlier, as well as the fact that the company does not yet have a strong brand, this strategy becomes too risky.
5) The principle of positioning. The basis for positioning the company is its quality and good reputation, while the survey showed that this is not enough to fully meet consumer expectations.
SNW-Analysis
Table 5
SNW-analysis sheet Source: author |
||||
Criterion |
S |
N |
W |
|
Staff |
||||
Corporate culture |
||||
Positioning principle |
||||
Assortiment Policy |
||||
Interaction with B2B clients |
||||
Interaction with B2C clients |
||||
Pricing |
||||
Marketing |
||||
Reputation |
||||
Finance |
Analysis based on interviews taken and in the course of pre-diploma practice shows that not all standard elements of the company's work are maintained at a high level.
Thus, it can be concluded that the marketing organization of the company was chosen far from the best way, since it does not pay due attention to a significant part of the factors that are vital for the proper functioning of the company in the market.
Interview analysis
Methodology
To conduct the interview, I chose the approach of marketing environment audit by F. Kotler. The activities of any organization are aimed at achieving its goals. These goals are the starting point in the development of plans and marketing programs, the process of implementation of which must ensure accurate progress to the targets set. Evaluation of the degree of compliance with the goals and marketing programs provided through marketing control, or marketing-audit.
The purpose of the marketing audit is to find out the existing problems in the organization of marketing activities and develop appropriate measures for their overcoming, criteria are developed for assessing non-economic control objects, in particular, the quality of work of units that implement different functional areas of marketing. Criteria for assessing the performance of marketing services are:
1) Macromedia (demographic, economic, technological, political and cultural aspects)
2) The interaction environment (markets, consumers, competitors, channels of distribution, suppliers, society)
3) Audit of marketing strategy (company purpose, marketing tasks, marketing strategy, budget
4) Audit of marketing organization (formal structure, functional efficiency, consistency)
5) Audit of marketing systems (marketing information environment, marketing planning system, new product development system)
6) Audit of marketing effectiveness (profitability analysis, cost analysis)
7) Audit of marketing functions (goods, price, distribution, advertising, promotion, image creation, sales service
Based on the interviews that I made during the pre-diploma practice, I conducted actions on 6 criteria of marketing audit. Transcripts are shown below in the Application:
The interaction environment
The company's management revealed a similar view of the company's main competitors, the role of the company and its goals. In general, employees see the same goals and objectives, they are agreed on the advantages and disadvantages of the company, with the exception of small discrepancies.
The main "scream" about which the employees spoke-the lack of investment in the company, which is explained by the analysis outlined above.
Analysis of marketing strategy
The company understands that marketing is very important for development, but due to a lack of specialists, funds and a clear positioning of the company's products on the market, the company can not achieve high sales figures, improve recognition in the market and generally improve its performance.
Audit of the marketing organization
Based on the interview and personal experience of being in the company, it was concluded that the marketing organization is critically bad because of the reasons described above. Moreover, the company has for several years not been able to organize the activities of the department effectively. Moreover, only now the employees have gradually begun to somehow optimize the work of the department (which doesn't exist).
Audit of marketing systems
As the marketing organization is in a deplorable state, marketing systems are almost completely absent. Marketing research is almost not conducted, the majority of employed employees work in related departments, or are outsourcers. The exchange of information is slow and delays. The system needs reorganization, it is necessary to establish the work of the marketing department from scratch.
Marketing effectiveness audit
The effectiveness of marketing is estimated by spontaneous primitive parameters, which does not provide the completeness of dynamics and worsens the representativeness of the data for analysis.
Findings
· The company Genoanalitika acts on the market, which is very sensitive to changes in the external environment, including sanctions imposed on Russia, which affects the complexity of the organization of equipment supplies to the country.
· The company has a number of advantages compared to its competitors, but due to the current economic situation, as well as due to internal problems, the company is forced not to realize the opportunities arising on the market, but concentrate on keeping current positions.
· The company is highly dependent on suppliers and hyper-dependent on investment. In this situation, it is possible to conclude more profitable long-term contracts with suppliers and build long-term relationships with consumers.
· Due to the poor organization of the marketing department, all the company's performance indicators suffer, which plays a huge role in the development and promotion of the company's brand. It is urgent to establish marketing activities.
In order to understand how the marketing strategy of the company as a whole looks and how it functions, I asked several questions, the purpose of which is to identify the existing plans for implementing the strategy:
1) Increase brand awareness among the main audience. This, in the opinion of the respondents, is critically important, since without recognition, business will not work.
2) Increase the effectiveness of the marketing function. The work of the marketing department in such a company is a critical element of efficiency, however, due to lack of funds, the company is forced to limit its marketing needs. From what the company is already doing to improve the efficiency of its work, it is possible to single out the introduction of the CRM system, loyalty programs, holding public events
3) The company seeks to attract as much investment as possible to direct them to its development. However, all managers say that without ties in the political sphere, you can not achieve the desired results. At least, the negotiations are currently under way, but so far they have not led to any significant results.
4) The company constantly improves the system of interaction with suppliers. Now the company has more than 20 suppliers of reagents and equipment that pass several stages of selection, as one of the competitive advantages of the company in the market is the quality of the services provided.
This development plan will operate in the company for three years. It is for this time that management intends to achieve results in the market.
Below is the SWOT analysis, which I conducted during pre-diploma practice:
Table 6
SWOT-Analysis |
||
Strengths - High scientific authority of the company - Links with industry leaders in the industry - Perfectly adjusted technological process - Growing interest in the industry from clients and investors |
Weaknesses - The market is still extremely unclaimed - Extremely weak marketing policy - Lack of positioning of the company in the media - Strong dependence on suppliers |
|
Opportunities - Construction of the company's original positioning taking into account the image and activities of competitors - The possibility of developing research topics for different target audiences |
Threats - A skeptical attitude of the main share of the target audience to genetic research services in general - The overwhelming presence of Genotech on the market - More active presence of players in the market Source: author |
Survey analysis description
The aim of the survey conducted in this paper is to compare the manager's vision with the real market situation. The management of the company may misunderstand the real situation and so ruin the company's effectiveness. This analysis is made in order to understand, what people know and think about dna-testing industry.
Respondents were people who could become potential clients of the company. The number of respondents was 166 people. The survey was conducted on the Internet to make the collection and processing of data more understandable and convenient. The average age of the respondents was 27.5 years. In the survey, 65.2% of men and 34.8% of women participated.
Figure 14
Among the subjects, 57.2% did not know about genetic testing technologies, while 42, 8% knew. This indicates that the subject of genetic research is not known to the public. This kind of phenomenon is explained by the relative novelty of the industry, its underdevelopment and a small share
Source: author
Figure 15
Source: author
Figure 16
on the pharmaceutical market.
It is also important that most of the respondents who knew about the research were tested. This may mean that in the media information about this type of research is rare, which also indicates a poor coverage of topics.
When asked how the respondents found out about the possibility of testing, the answers vary, but in 50% of cases, respondents learned about such services from friends, relatives or colleagues.
Source: author
Figure 17
Based on the analysis of interviews, several conclusions can be drawn. First, the topic of genetic research in the country is unpopular. This is indicated by a low level of awareness among respondents. Secondly, people who did know about the company did not learn about it through Media, but through friends, colleagues and friends, which means that companies that are on the market use marketing communications inefficiently.
Recomendations
Based on the analysis of the theoretical material, conducted interviews and surveys, I developed a number of recommendations for improving the marketing function of the company "Genoanalytika".
Recommendations are divided into three stages, dependent on importance and cost of use. In the future, the company will be able to improve its performance indicators, adhering to these recommendations. Three blocks are called "Critical", "Important" and "Recommended".
The first set of recommendations contains actions that the company must urgently take to stabilize, maintain and strengthen business processes aimed at the marketing function. This set of recommendations is critically necessary for the company so the potential effectiveness was counted. Other two blocks were developed were made at the request of the founder of this business so these two blocks are more like an advice.
The second set of recommendations contains actions to be taken when free funds are available. These actions will allow the company to freely develop and improve its activities, allowing to build successful strategies for promotion and introduction to the market.
The third set of recommendations contains actions that need to be taken to protect the company from business risks in the long term.
"Critical" block
First of all, the "Genoanalytika" company needs to organize a real marketing department with a clear organizational structure and clearly defined tasks. Such actions are obvious and necessary for existence in the future. The organization of the marketing department is recommended to follow the following scheme, which is classical (Соловьев, 2010) for a relatively small company in the market.
(Котлер, 2003)
This approach will avoid unnecessary costs for the organization of activities.
The average cost of creating a marketing department under this scheme is as follows:
Title |
Quantity |
Price (rub.) |
|
Office table |
5 |
2000 |
|
Chairs |
5 |
1000 |
|
Computers and peripherals (office printer) |
5 |
8000, 77000 |
|
Jalousie |
4 |
10000 |
|
Air conditioning |
1 |
15000 |
|
Total |
20 |
217000 Prices were taken taking into account the average cost of the market by the author |
In total, the organization of the work of the marketing department supply will cost an average of 217,000 rubles
Title |
Salary |
Bonus per quarta |
Salary per Year |
Tax (30%+13%) |
|
Head of Department |
45000 |
25000 |
640000 |
||
Marketer |
28000 |
15000 |
486000 |
||
PR Specialist |
35000 |
15000 |
520000 |
||
Advertising and SMM Specialist |
28000 |
15000 |
486000 |
||
Total |
2132000 |
3048760 Salaries were counted as an average on the market (source: http://hh.ru) |
In total, the organization of the work of the marketing department will cost an average of 3 265 760 per year.
After that, it is worthwhile to include SMM in the work of the marketing department. Social Media Management will quickly (Бурмистров, 2012) and relatively cheaply (Бурмистров, 2012) build a layer of loyal, interested customers who will provide a good client base. The costs of developing the SMM system can be minimal, so we will consider them to be zero.
Moreover, companies, in addition to traditional scientific events that are held on their own initiative, or on the initiative of other companies, should conduct non-scientific activities that will increase brand awareness, increase media and public interest in the necessary topics, develop interest in preventing diseases in a potential Audience. At the cost of such activities are treated in the same way, and even cheaper than scientific activities, since the scale of such events is somewhat less.
Further, it is necessary to automate the main business processes in the company in order to speed up the company's response and speed to external impact. To do this, you need to implement a CRM-system. Application software for organizations, designed to automate strategies for interaction with customers (customers), in particular to increase sales, optimize marketing and improve customer service by storing customer information and the history of relationships with them, establishing and improving business processes and subsequent analysis Results. CRM - a model of interaction based on the postulate that the center of the entire business philosophy is the client, and the main activities of the company are measures to ensure effective marketing, sales and customer service. Support of these business goals includes the collection, storage and analysis of information about consumers, suppliers, partners, as well as on the internal processes of the company. Functions to support these business goals include sales, marketing, consumer support.
The introduction of a CRM system costs an average of 40,000 rubles. Average in the market (in the aereal of companies that have no more than 30 employees. Source: http://hh.ru)
Also, for an innovative company it is a must to provide optimization of planning processes, so it is recommended to integrate BPM. BPM is the concept of process management of an organization that treats business processes as special enterprise resources that are continuously adapted to permanent changes and relies on such principles as clarity and visibility of business processes in the organization through modeling of business processes using formal notations, using software Simulation support, simulation, monitoring and analysis of business processes, the ability to dynamically rebuild business process models by the participants. BPM answers questions like where, when, why and how the work is done and who is responsible for its implementation.
The average cost of implementing a BPM-system for a company of this scale is 100,000 rubles
As a result, 217000 + 40000 + 100000 +3048760 = 3315760 rubles should be invested in the company in order to ensure the efficient operation of the department at a minimum level.
Evaluation of the effectiveness and effectiveness of the proposed measures.
At this stage, it is difficult to say whether the proposed measures will be effective, since the innovation market is in an environment of constantly changing rules of the game, but the history of introducing optimization processes into the company's work shows that the degree of rationality of using the financial, material, time and human resources of the organization (efficiency) Increases when using the measures I proposed.
In order to calculate the effectiveness of the proposed measures, we calculate the economic effect from the introduction of measures:
, where:
E = economic effect
Rp - Planned revenue figure
C - Implementation costs
Rr - Sales revenue for the last period
E = ( 1000000 - (3315760)) - 5760000 = 924240
The economic effect of measures can be: positive - the cost of activities is less than the additional profit; Negative - the cost of activities above the additional profit; Neutral - the costs of activities are equal to the additional profit.
Thus, it can be concluded that the economic effect of the proposed activities is positive, as the cost of activities for 3315760 rubles increased the volume of work to 924,240 rubles.
The efficiency of costs for improving the system of motivation of personnel can be determined using the indicator of profitability of the proposed activities,%
Where:
E - Economic effect from the introduction of measures (rub.)
C - Expenses for realization of measures
= 27%
Now we calculate, the payback period of the proposed measures to improve the marketing function, due to the resulting increase in revenue from the sale of services:
Where:
E - Economic effect from the introduction of measures (rub.)
E - Expenses for realization of measures
= 3.5
Therefore, the costs of improving the marketing function will pay off within three and a half years, which fits into the company's development plan, the information about which was described in the analysis of the interview. According to the experience of professionals, the marketing department implementation will raise up the profit of the company up to 300% (Margretta, 2013).
"Important" block
After the "critical" measures are taken in the company, it is worth to audit the company's business processes as a whole in order to find out what areas of the company's life require renovation and optimization. As it became known from the interview, the structure of the company has not changed since 2009, i.е. From the foundation of the company. For such a long period of time, much could be changed and optimized. The cheapest, but nevertheless, effective measures to optimize business processes will be the following:
1) 1) Carrying out a full and objective study of the company's business processes, drawing up a map of the company's business processes
2) 2) Carrying out a photo of the working day of the department employees in order to identify the time expended for each operation.
3) 3) Conducting timekeeping to identify unoptimized operations and processes in the company
4) 4) Conducting analytical work to reduce the cost of inefficient operations on a working day.
Such measures will allow the company to work together without spending scarce resources on inefficient activity. The usefulness of carrying out this kind of activity is proved by our own experience in the company EY, which deals with audit and consulting. In the course of work with a large retail network (data on the company are not disclosed, since they are a trade secret), on optimization of business processes alone it was possible to increase the profitability of the company from one store by 15%.
Average cost of timekeeping services = 50000 rub. The cost is calculated on the basis of average market data taking into account the specifics of the company's activities and the number of employees
After the business processes in the company are established, it is necessary to consider the possibility to integrate ERP software into the company's activities. ERP is an organizational strategy for the integration of production and operations, labor management, financial management and asset management, focused on the continuous balancing and optimization of enterprise resources through a specialized integrated software package providing a common model of data and processes for all areas of activity. ERP-system - a specific software package that implements the ERP strategy.
Further, for the successful functioning of marketing in the company, it is recommended to develop a clear marketing strategy that will be based on the principles of diversified growth and the concept of concentrated marketing. Such measures will allow to direct the company's efforts to the target audience. The formation of the marketing strategy should be carried out in four stages:
· Stage of analysis of the marketing capabilities of the organization. It is an assessment of the strengths and weaknesses of the operation of an enterprise, its advantages in a particular market and the possible risks;
· * Stage of selection of markets for functioning. It presupposes the analysis of demand and supply, consideration of a certain type of market, its pros and cons, consumer composition, as well as the demand for products produced by the enterprise;
* Stage of marketing program development. It is formed from the definition of the peculiarities of the price policy, the methods of positioning of one or another product on the market, the holding of an advertising company, and also the control over the sale of products;
* The stage of approval and implementation of marketing programs. Assumes their reasonable analysis in the context of the provisions of the general strategy of organization and crisis management.
The average cost of these actions varies, however, the efficiency of it is proven by thousands cases Зайковская А. С. Анализ эффективности внедрения ERP-системы на предприятии. - 2015.
“Recommended” block
After the full establishment of processes within the company, management should look at additional measures to improve the marketing function in the company. Such measures include the evaluation of the effectiveness of the marketing function. Periodically conducted Evaluation of the effectiveness of the marketing strategy of the enterprise makes it possible to understand whether its concept was correctly chosen, and also to monitor the implementation of the set goals. To do this, it is necessary to carry out a detailed analysis of several components of the marketing strategy:
1) Analysis of sales of products. An assessment is made of sales markets, product popularity among customers, market expansion opportunities, the definition of new sales locations, and their availability to the target audience. Factors affecting sales activity are assessed. It will be interesting to analyze the popularity of a particular product.
2) Analysis of sales in relation to the volume of the order. This ratio allows you to determine what should be a simultaneous implementation in order to obtain the greatest market effect. It is also important to ascertain the amount of the minimum order for production.
3) Analysis of sales to customers. Here there is a definition of the category of buyers, whose needs should be taken as the basis of the enterprise in the first place.
4) Analysis of factors of sales volume / market share. The analysis allows to reveal the distribution ratio of market segments and the volume of products sold to customers, which makes it possible to concentrate on the types of goods that are significant for the company.
Marketing audit will give an opportunity to see the degree of deviation of strategic marketing results from the planned ones. If they differ significantly, it makes sense to review the strategy, or completely abandon it and choose an alternative. If the design is carried out successfully, it allows the company to achieve high results in the long term and to take the leading market positions.
Conclusion
The objectives of the study were fully achieved. The theoretical basis of the study on the objectives of marketing audit and methods of its application in the company were analyzed. A review of external and internal factors affecting the function of marketing in a company engaged in genetic research was conducted.
The obtained data allowed to evaluate the internal potential of the company, as well as to familiarize with external factors that influence its activity. For further research, a survey of the target audience was conducted, as well as a interview with the company's top managers.
The results of the research formed the basis of the third part, in which I formed a package of proposals to improve the marketing function of the company. I also identified the problematic areas of the company that required modernization, or were absent altogether.
Based on the recommendation, the further development of the organization entirely depends on the decisions of the company's management. Thus, the goal of the research was fully achieved. The tasks necessary for solving it were solved in accordance with the original plan.
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