Conceptual principles of formation marketing strategy of agricultural enterprises in the conditions of wartime
Justification of the improvement of the mechanism of formation of the marketing strategy of agricultural enterprises. A complex of current organizational and management actions of the enterprise, aimed at using the exchange to meet the needs of consumers.
Рубрика | Маркетинг, реклама и торговля |
Вид | статья |
Язык | английский |
Дата добавления | 24.02.2024 |
Размер файла | 545,5 K |
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Institute of National Academy of Agrarian Sciences of Ukraine
Kharkiv National University of Radio Electronics
Conceptual principles of formation marketing strategy of agricultural enterprises in the conditions of wartime
Krasnorutskyy Oleksiy
Marenych Tetiana
Marchenko Valerii
Polozova Tetiana
Murzabulatova Olena
Krasnorutskyy O., Marenych T., Marchenko V., Polozova T., Murzabulatova O.
Conceptual principles of formation marketing strategy of agricultural enterprises in the conditions of wartime
Abstract
The article is devoted to the characteristics and justification of improving the mechanism of formation of the marketing strategy of agrarian enterprises in wartime conditions. It was determined that the marketing strategy acquires the status of a priority in the system of enterprise strategies and should be organically combined with the overall corporate strategy. It was found that there are different approaches to revealing the essence of the terms "marketing", "marketing management", and "marketing strategy", which require their author's definition. In the article, marketing is understood as a complex of the enterprise's current organizational and management actions, aimed at using the exchange to meet the real needs, requirements, and wishes of consumers and achieve the goals of the manufacturer (seller) with an orientation to social ethics. It has been proven that marketing strategy is a separate concept with its own goals and tools for achievement, which is focused on creating an appropriate system of relationships with consumers. At the same time, the marketing strategy of an enterprise is defined in a broad sense as a set of ideas regarding general, non-detailed ways of creating or changing consumer perceptions of a product over a specified period using available marketing tools and available resources in certain competitive conditions, which allows the enterprise to achieve commercial success and general goals. It is advisable to form the marketing strategy of an agricultural enterprise based on the basic concept of its development and consider resources and opportunities, the state and features of competition, demand trends, external environmental conditions, and internal factors in the relationship. It was concluded that when developing a clear and understandable marketing strategy, it is crucial to set achievable and measurable development goals, use only verified data when analyzing the current state of the market and one's own capabilities, find alternatives, and approach solving problems creatively and creatively. Each aspect of the agribusiness marketing strategy is suggested to be viewed digitally. It was determined that the primary goal of the marketing strategy in a "peaceful" time is to obtain the maximum profit to achieve a sustainable competitive advantage due to the understanding of consumer needs and market realities. In wartime - continuity, and profitability of production, preservation of jobs, payment of wages, provision of logistics, and building relationships of trust, support, and care with buyers and customers. It is well-founded that marketing underwent significant transformations during the war, and accordingly, the principles of developing its strategy also changed. The principles of marketing strategy formation in agricultural enterprises in wartime conditions include the following: social orientation; justified riskiness; flexibility and maneuverability (adaptability); concentration of efforts on current areas of marketing activity; focus on obtaining results in the short term; relationship and interdependence of strategy and tactics.
Keywords: marketing, marketing strategy, marketing management, marketing tools, principles of marketing strategy formation, marketing plan, agricultural enterprises.
Анотація
marketing strategy need consumer
Красноруцький О.О., Маренич Т.Г., Марченко В.А., Полозова Т.В., Мурзабулатова О.В.
Концептуальні принципи формування маркетингової стратегії сільськогосподарських підприємств в умовах воєнного часу
Стаття присвячена характеристиці та обґрунтуванню вдосконалення механізму формування маркетингової стратегії аграрних підприємств в умовах воєнного часу. Визначено, що маркетингова стратегія набуває статусу пріоритетної в системі стратегій підприємства та має органічно поєднуватися із загально корпоративною стратегією. З'ясовано, що існують різні підходи до розкриття сутності термінів «маркетинг», «маркетинговий менеджмент», «маркетингова стратегія», що вимагало авторського їх визначення. Під маркетингом в статті розуміється комплекс актуальних організаційно-управлінських дій підприємства, спрямованих на використання обміну для задоволення реальних потреб, вимог, побажань споживачів і досягнення цілей виробника (продавця) з орієнтацією на соціальну етичність. Доведено, що маркетингова стратегія є окремим поняттям із власними цілями та інструментами їх досягнення, що сфокусоване на створенні відповідної системи взаємовідносин із споживачами. При цьому маркетингову стратегію підприємства у широкому сенсі визначено як сукупність ідей щодо загальних недеталізованих способів створення чи зміни уявлень споживачів про продукт за визначений проміжок часу за допомогою дос¬тупних маркетингових інструментів та наявних ресурсів у певних конкурентних умовах, що дозволяє підприємству досягнути комерційного успіху та загальних цілей. Маркетингову стратегію аграрного підприємства доцільно формувати на основі базової концепції його розвитку та враховувати при цьому ресурси та можливості, стан і особливості конкуренції, тенденції попиту, умови зовнішнього середовища та внутрішні фактори у взаємозв'язку. Зроблено висновок, що розробляючи чітку та зрозумілу маркетингову стратегію, важливо ставити досяжні та вимірні цілі розвитку, при аналізі поточного стану ринку та власних можливостей використовувати тільки перевірені дані, знаходити альтернативи, підходити до розв'язання проблем творчо та креативно. Кожен аспект маркетингової стратегії агробізнесу пропонується розглядати через цифрову призму. Визначено, що головна мета маркетингової стратегії в «мирний» час - отримання максимального прибутку, досягнення стійкої конкурентної переваги за рахунок розуміння потреб споживачів і реалій ринку; у воєнний час - безперервність і беззбитковість виробництва, збереженість робочих місць, виплата заробітної плати, забезпечення логістики, вибудовування з покупцями і замовниками відносин довіри, підтримки та турботи. Обґрунтовано, що маркетинг у період воєнних дій зазнав суттєвих трансформацій, відповідно і принципи розробки його стратегії теж змінилися. До принципів формування маркетингової стратегії в аграрних підприємствах в умовах воєнного часу віднесено такі: соціальна спрямованість; виправдана ризикованість; гнучкість та маневреність (адаптивність); концентрація зусиль на поточних напрямах маркетингової діяльності; спрямованість на отримання результату в короткостроковій перспективі; взаємозв'язок та взаємообумовленість стратегії та тактики.
Ключові слова: маркетинг, маркетингова стратегія, маркетинговий менеджмент, маркетингові інструменти, принципи формування маркетингової стратегії, маркетинговий план, аграрні підприємства.
Introduction and statement of the problem
Fierce competition in the market economy and the need to flexibly respond to current changes in the markets and various industries cause new demands of business entities. At the same time, the success of a business depends on its ability to adapt to changes in the external environment: predict and change the nature of production activities, promote, and supply new products, accurately define areas of innovation and investment, etc. Achieving the future success of any enterprise is possible only under the conditions of development and compliance with a specific, comprehensive plan for the long-term course of action - its strategy. The marketing strategy acquires the status of a priority in the system of enterprise strategies and must be organically combined with the overall corporate strategy. Even though the primary goal of the operation of all manufacturing enterprises on the market is the same - to make a profit, there is no single marketing strategy for achieving it that would be acceptable for all enterprises. Due to different marketing strategies, the company is faced with the dilemma of choosing the optimal strategy that would consider all factors of the internal and external environment. However, the marketing strategy of an agricultural enterprise differs from similar strategies of enterprises in other branches of the national economy, mainly due to the specific features of agricultural production and products. In addition, in wartime conditions, the formation of a marketing strategy is influenced by the transformation of marketing, which requires a thorough analysis and development of the theoretical and methodological foundations of the strategic marketing orientation of enterprises during military operations. Despite the unfavorable and unforeseen circumstances associated with the war, management personnel of agricultural enterprises recognize the importance of marketing, the need to develop a marketing strategy, and its practical implementation. At the same time, in most business entities, essential elements of the marketing strategy, except for the price, are practically not used. This concerns analytics, identifying strengths and weaknesses, consumer knowledge, selecting potentially helpful marketing tools, etc.
Analysis and research of publications
The work of many domestic and foreign scientists is devoted to studying theoretical, methodical, and applied aspects of forming an effective marketing strategy at the enterprise level. It is worth highlighting the work of such authors as M.O. Bagorka [1], S.I. Boguslavska [2], O.S. Borysenko [3], M.I. Belyavtsev, V.N. Vorobyov [4], Vakulenko Yu.V. [5], Byvsheva L.O., Kondratenko O.O., Kovalenchenko A. [6], Koval O.V. [7], Zozulyov O., Pidmogilna O. [8], Kotler F. [9], L.M. Pronko, K.S. Tokar [10], L.V. Shulga [11] and others. [17; 19; 21-23]. At the same time, disclosure of the procedure for forming the company's marketing strategy, considering the specifics of the activity of a specific sphere of the economy and unforeseen events, particularly military actions, requires significant development.
The purpose of the article
The purpose of the paper is to characterize and substantiate the procedure for forming the marketing strategy of an agrarian enterprise to develop recommendations for improving the mechanism of its formation in wartime conditions.
Presenting main material
The terms "marketing", "marketing management", "marketing strategy" have confidently entered the national scientific terminology. They are widely used in scientific discussions and literary sources. Despite the sufficient prevalence of marketing in the practice of foreign companies and the deep level of research into marketing activity by scientists, there needs to be an unambiguous interpretation of these terms in the economic literature. There are many approaches to the definition of marketing, the emergence of which led to the aggravation of the problems of the sale of goods and increased competition. From the moment the first definition of marketing was given, and until recently, every researcher in this field has considered it necessary to formulate his view of the problem, which depends to some extent on the research subject.
Summarizing the positions of foreign and domestic scientists on the essence of marketing and its role in the economic processes of society, the scientists formulated several approaches to its definition:
a conceptual approach, according to which marketing is defined as a direction of business thinking, a philosophy of business activity, a complex and systematic approach to solving competition problems through meeting the needs of consumers with the maximum benefit of an economic entity;
a functional approach, which is based on marketing functions that, according to the authors, the enterprise can perform;
the product approach, which is based on the theory of the product life cycle and the tasks that marketing must solve at each stage of the life cycle;
a systemic-behavioral approach, according to which marketing is considered from the point of view of problems associated with changes in the marketing system and the expected characteristics and consequences of such changes (input-output system; system of power; system of communications; system of adaptation);
institutional approach, according to which marketing is considered as a system with many elements interacting with each other and with elements of external systems;
National approach - When defining marketing, it is based on taking into account sociocultural, demographic, geopolitical, economic, and other factors that are dictated by specific national characteristics;
a management approach that considers marketing a management tool for a firm operating in certain economic conditions [12, p. 261].
It is the management approach that reveals the content of marketing management. According to this approach, marketing can be interpreted as:
the leading branch of economic management of the entire set of activities related to the transformation of consumers' purchasing power into effective demand for specific products or services, bringing them to the final or intermediate buyer to increase the desired profit or achieve other goals;
the method of managing the trade and production system, which involves the definition, forecasting, and creation of needs and wishes, the organization of the company's resources and capabilities with the aim of meeting needs, obtaining the most significant effect for consumers and the enterprise;
a market-oriented system of organization and management of all areas of the company's business activity, from the idea of the product through production to its commercialization and delivery to the consumer with subsequent service;
creation of the product's usefulness according to the factors of time, place, form, and ownership, which is carried out through the organization of production and promotion of the firm's goods, ensuring their implementation and sale [12, p. 262].
Belyavtsev M.I. and Vorobyov V.N. believe that the main thing in marketing is "a dual and complementary approach. On the one hand, this is a thorough study of the market, demand, tastes, and needs, orienting production to these requirements from the second - active influence on the market, existing demand, on the formation of needs and purchasing preferences. This determines the basic principles of marketing management" [4, p. 5].
The modern economic dictionary interprets the concept of "marketing" as follows: "Marketing (from the English market - market) is a wide-ranging activity in the field of the market of goods, services, and securities, carried out to stimulate the sale of goods, development, and acceleration of exchange, for the sake of better meeting needs and making a profit. Marketing is designed to adapt production to market requirements" [13, p. 218].
The author's vision of the essence of marketing is as follows: marketing is a complex of actual organizational and management actions of the enterprise, aimed at using the exchange to meet the real needs, requirements, and wishes of consumers and achieve the goals of the producer (seller) with an orientation to social ethics.
Representatives of marketing schools mainly interpret marketing management as marketing management, i.e., the implementation of management activities according to the "4R" complex, strengthening this direction with exercises of traditional management functions, such as planning, operational management, control, and motivation. Instead, managers consider marketing as a function of enterprise management.
As for the strategy, scientists interpret it as a set of long-term measures to build, grow, and operate a business; a system of actions, measurements, and decisions aimed at achieving future results; an approach to the effective allocation of resources to ensure the temporary development of business in a changing external environment. In particular, the Modern Economic Dictionary interprets it as follows: "Marketing strategy is the company's marketing efforts to sustainably promote its products to the market, including defining goals, analysis, planning marketing activities, monitoring [13, p. 378].
Borysenko O. S., Shevchenko A.V., Fisun Y.V., and Krapko O.M. concluded that there are different approaches to defining the term "marketing strategy":
Marketing strategy is a system of organizational, technical, and financial measures to increase production sales, competitiveness, and positive impact on demand and supply;
Marketing strategy is a way of achieving marketing goals in the marketing complex;
marketing strategy - vector of business activity in creating market positions of any company;
Marketing strategy - the company's marketing activity in target markets determines the leading solutions for achieving marketing goals [3, p. 130].
First of all, it should be noted that the marketing strategy should not be equated with the general strategy of the enterprise, commercial, or operational strategy. Marketing strategy is a separate concept with its own goals and tools for their achievement, which is focused on creating an appropriate system of relationships with consumers. In our opinion, the marketing strategy of an enterprise, in a broad sense, is a set of ideas about general, non-detailed ways of creating or changing consumer perceptions of a product over a certain period with the help of available marketing tools and available resources in certain competitive conditions, which allows the enterprise to achieve commercial success and general goals.
According to this definition, to build an effective marketing strategy, the company needs:
Determine the goal associated with creating or changing consumer perceptions of the product. Such representations are usually built around one or more elements that can ensure the attraction and retention of consumers according to the specifics of the market and its needs. The most common aspects of the system of consumer perceptions are satisfaction with consumption, product usefulness, reliability and quality assurance, brand status and exclusivity, service level, availability and distribution, time-tested, price- quality ratio, digitalization of services, etc. Determining which elements should occupy a central place and become the goal of the company's marketing strategy depends on the current situation in the market, analysis of the strengths and weaknesses of the product and the company, financial opportunities and the competitive position, etc;
Determine the time frame required to obtain results because different strategies require different time frames to succeed. Awareness and knowledge of the time frame for achieving the first results and implementing the strategy as a whole is an essential component of strategy development, which allows you to avoid inflated expectations and premature conclusions about the effectiveness of the strategy being used;
availability of available marketing tools and resources. If the company does not have its financial resources or the ability to lend money for marketing activities, then the development of a strategy that involves the use of expensive tools loses all meaning. The marketing strategy must be based on a realistic marketing budget and available human resources, owned or outsourced;
Consider competitive conditions that affect the company's activities. Analysis of the competitive environment and marketing practices helps to outline the range of practical strategies, determine the minimally necessary set of tools for successful marketing, assess one's capabilities, and get closer to creating one's own effective strategy and marketing plan with the help of creative ideas [20].
Thus, the development of an enterprise's marketing strategy is a rather complex task that requires, on the one hand, a deep analysis of one's capabilities, external conditions, and competition, and on the other hand, practical skills in defining a strategy and knowledge of marketing tools for its implementation in the form of a marketing complex (fig. 1).
Fig. 1. The essence of the concept of «marketing strategy»*
*Source: developed by the authors
The determination of the company's strategy depends on specific circumstances. The differences in their elements explain the various marketing strategies-in the company's competitive positions, marketing goals, financial, production capabilities, and management personnel. Even though the primary goal of all manufacturing enterprises on the market is to make a profit, only some marketing strategies would be acceptable for some enterprises. Due to different marketing strategies, the business faces the dilemma of choosing the optimal design.
Marketing strategies are divided according to the following main features (table 1). As evidenced by the data in the table. 1, it can be argued about a great variety of marketing strategies. There are other signs of classification of marketing strategies.
However, they are either derived from general features or have no expressed independent object. Thus, according to the Modern Economic Dictionary, passive and intensive marketing strategies are distinguished" [13, p. 378].
Most scientists consider the marketing strategy to be the most critical functional strategy that ensures the market orientation of the enterprise.
Table 1. Types of marketing strategies and their characteristics*
SiRn |
Types |
Characteristic |
|
By elements of the marketing complex |
Merchandise strategies |
Focused on solving issues related to the development and introduction of new products (innovation strategy), their maintenance and improvement (variation strategy), and withdrawal of outdated products from the market (elimination strategy). |
|
Pricing strategic |
Include two types of strategies - a high-price or "creamer" strategy (setting high prices when introducing a new product to the market with a gradual reduction in costs) and a penetration strategy or low-price strategy (setting low prices for products to penetrate new markets, gaining demand, market share with subsequent price increases). |
||
Distribution strategies |
This is an intensive distribution strategy (sale of goods through many retail outlets), a selective distribution strategy (selective conclusion of an agreement with intermediaries who are interested in the sale of goods), an exclusive distribution strategy (intermediaries are granted the right to sell goods in a specific regional market). |
||
Promotion strategies |
This is a product promotion strategy (intensive stimulation of intermediaries to promote the product and a method for attracting consumers (the leading communication efforts are focused on end consumers)). |
||
Sign |
Types |
Characteristic |
|
Depending on the general state of the company and its marketing guidelines |
Survival strategy |
This is a defensive strategy used during a crisis of the company's economic activity, that is, during bankruptcy. The main goal of this strategy is to overcome difficulties by reviewing and adjusting all the company's marketing tools (product, pricing, distribution, and promotion). |
|
Stabilization strategy |
They are used in a sudden or unexpected decline in the company's leading indicators or when business development changes. This strategy focuses on the balance of hands and their further expansion and transition to a growth strategy. |
||
Growth strategy |
Growth in sales volume, profit, and other company indicators is predicted. They are divided into the following varieties: Intensive growth marketing strategies - involve achieving marketing goals by increasing available resources. This is relevant for companies that have not exhausted the opportunities associated with existing products and markets. They distinguish the strategy of deep penetration into the market (increasing the company's sales volume and market share without changing its product positions), the strategy of market development (the introduction of the company's existing products into new markets), and the strategy of product development (the development of a new product for existing market segments); Integrative growth marketing strategies - combining a company's efforts with other companies to increase sales, market share, and profits. The company can join forces with an intermediary (forward integration strategy), a supplier (backward integration strategy), suppliers and intermediaries (vertical integration strategy), competitors (horizontal integration strategy); - Diversification marketing strategies - involve the company's entry into new business areas. The following diversification strategies are distinguished: concentric - involves the company's production of new products that are technologically or commercially related; horizontal - for existing customers, new products are produced that are technologically unrelated to existing products; conglomerative - the development of new types of activities that are neither technologically nor commercially related to the existing ones. |
||
Depending on the segmentation of sales markets |
Undifferentiated marketing strategy |
It assumes that the company enters the market with a single product and develops a single marketing complex, focusing on the general needs of consumers. |
|
Differentiated marketing strategy |
It involves the development of several market segments, each of which a separate product and the corresponding marketing complex are developed. When applying this strategy, the following strategies for choosing the target market can be used: the strategy of product specialization (one product is offered to different market seg ments); strategy of segment specialization (the company sells goods in one segment); a strategy of selective specialization (a wide range of products for different market segments); strategy of complete market coverage (the company offers a wide range of products for all groups of consumers). |
||
Concentrated strategy |
This company focuses on one market niche and is attractive to small businesses with limited resources. |
||
Depending on the competitive position of the company and its marketing guidelines |
Strategies of the leader |
Can be implemented using: strategies for expanding market capacity (attracting new consumers to the company's products, finding new needs); strategies for increasing market share with the existing capacity (improvement of product quality, product change, diversification, gaining price leadership, improvement of sales activities, improvement of the effectiveness of advertising activities, strengthening of the innovation process, integration); strategies for protecting market positions (flank protection, positional protection, mobile protec tion, preventive protection, retreat strategy). |
|
Strategies of candidates for leadership |
Can be implemented using: compilation strategies (use of various marketing strategies of the leader in terms of product, price, sales and advertising activities); imitation strategies (imitation of some aspects of the leader's strategy, but with the introduction of specific differences in packaging, brand, advertising, and price policy); - adaptation strategies (the follower's use of the leader's product as a basis for its improvement or adaptation to a certain market). |
||
Follower strategy |
Can be implemented using: - compilation strategies (use of various marketing strategies of the leader in terms of product, price, sales and advertising activities); imitation strategies (imitation of certain elements of the leader's strategy, but with the introduction of certain differences in packaging, brand, advertising, price policy); adaptation strategies (the follower's use of the leader's product as a basis for its improvement or adaptation to a certain market). |
||
Niche strategies |
Can be implemented using: - strategies for maintaining positions (the company maintains its positions in a niche); - integration strategies (when the rate of growth of the niche lags behind the rate of growth of the niche); niche leadership strategies (typical for cases of accelerated growth of both the niche and the niche); strategies for exiting the niche (when the growth rate of the niche lags the growth rate of the niche). |
||
Sign |
Types |
Characteristic |
|
The sign of competition |
Price leadership strategy |
It drives the company to reduce costs and turnover to achieve the lowest level in the industry. |
|
Differentiation strategy |
The company's product must differ from competitors' products and be unique for the consumer. At the same time, costs and prices are not necessary. |
||
Focusing strategy |
This is the concentration of the company's activity on one (or a few) market segments and gaining price leadership or differentiation in them. |
||
Depending on the positioning according to the BKG matrix |
The strategy of intensification efforts |
Investing resources to increase market share for promising strategic business units (SBUs) such as Question Marks. |
|
Strategy for maintaining competitive positions |
Investing resources to support the market share of such SGPs as "Stars" and strong "Milk Cows". |
||
Harvest strategy |
Weakening of marketing efforts on weak SGPs ("Milk Cows") and unpromising SGPs ("Question Marks" and "Dogs")). |
||
Strategy of elimination |
Withdrawal of SHP from the company's product portfolio ("Dogs")). |
*Source: summarized by the authors based on [3, p. 132-135].
The role of practical strategies is to support competitiveness. Specialists offer the following the company's overall business strategy and types of functional marketing strategies (table 2).
Table 2. Types of functional marketing strategies and their characteristics*
Type of strategy |
Characteristic |
|
Assortment strategy |
Reveals the order of development and the place of each product group in the general assortment of the enterprise, establishes the degree and order of rotation of the variety, and the rules for differentiating goods from each other. It may include an action plan for bringing new products or services to market. |
|
Promotion strategy |
Designates directions for product promotion on the market methods of establishing communication with consumers, contains a plan for organizing product advertising, rules for supporting new models and the company's main products, and sets limits on financing advertising campaigns. |
|
Distribution strategy |
Justifying the priority method of product distribution, the main channels of promotion to the end consumer, the rules of interaction with dealers and other intermediaries, and the quantitative and qualitative indicators of effective product distribution. |
|
Pricing strategy |
Defines the basics of price competition in the market, the procedure for determining wholesale and retail prices for products, discount policy, profitability criteria, and the process for raising prices. |
|
Target market selection strategy |
Formulates the critical rules of market segmentation and priority directions for promoting the company's products. |
* Source: formed based on [14]
The enterprises of the agrarian sphere of Ukraine have been operating for a long time in an unstable market situation. The weak financial position of commodity producers, the low solvency of consumers, and the uncertainty of factors in enterprises' external and internal environments make it challenging to achieve the proper quality of agricultural products and are the main reasons for the decrease in the volume of its production and sales. Under such conditions, the role of the assortment policy of enterprises in creating competitive advantages in the market of agricultural products is significantly increasing. Therefore, the problem of managing product assortment and parameters is of relevance and practical significance.
Since the market environment is very dynamic, agricultural producers need to assess competitive advantages and disadvantages depending on the current situation and analyze groups of competitors. External competitive advantage is based on the excellent qualities of the product (goods), which creates value for the buyer by reducing his costs or increasing the efficiency of his activities. It increases the enterprise's market position in such a way that it can force the market to accept a higher selling price than competitors. Internal competitive advantage is an enterprise's cost or management advantage that creates value for the product manufacturer. Allows to reduce the cost price to a greater extent than the priority competitor. Both types of competitive advantage have different origins and nature and, hence, are often incompatible, as they require different approaches, skills, and cultures.
The marketing strategy is implemented both in the field of production and in product sales. The ratio of these components enables companies to work with old products in new markets and with new developments in developed markets. Marketing activity in a market economy is an objective necessity of orientation of all spheres of enterprise activity (scientific and technical, production, sales) to consider market demand, needs, and demands of consumers. It is aimed at defining specific goals and ways to achieve them. It is necessary to study social and individual needs to produce products that will find sales and bring profit, and market demands as a condition and prerequisite for production.
The main factors contributing to the sale of agricultural products are:
many consumers,
the growth of demand for products in the country and the world,
the presence of branded stores and advertising.
The use of unique technologies, innovative developments, and improvements in packaging allows the creation of competitive types of products. Factors that hold back implementation include
actions of competitors;
demographic and political factors;
production and technological (raw material shortage, dependence on the seasonality of product use), and other factors.
Financial, economic, and social factors that lead to the problem of changes in demand for products have the most negative impact on the activities of enterprises. Consumers are becoming more demanding, and new imported products are appearing. The problems with implementation may be the limitation of this product line and insufficient advertising, particularly at the stage of introducing new products to the market.
During the martial law, many agrarian enterprises found themselves in complete uncertainty regarding the conduct of business, including the conduct of various marketing activities. Many commodity producers have reduced their sown areas due to hostilities and occupation mining of fields. Enterprises lost a lot of production facilities and buildings due to the destruction and part of the livestock during hostilities. Experts estimate that the cost of destroyed agricultural machinery alone reaches $3 million [15]. Due to the increase in the price of production factors (primarily fuel and electricity) and the low liquidity of agricultural producers, there is a reduction in the application of fertilizers and plant protection products, which reduces productivity due to the simplification of production technology. Disruption of logistics chains leads to an increase in the cost of products. Low domestic prices for agricultural products do not ensure the payback of production costs. At the same time, the gap between world and domestic prices for farm products is increasing. Current export capacity needs to meet the needs of exporters, and transportation costs remain high. Manufacturers are in a difficult financial position and, as a rule, are not ready to invest in PR, marketing, or advertising. Crises encourage enterprises to minimize their operating costs.
Fig. 2. Factors determining survival strategies agricultural enterprises in wartime conditions*
Modern challenges do not allow domestic agricultural enterprises to survive in the long term, which requires a radical change of priorities and strategies. If, in the pre-war period, most farmers used stabilization and growth marketing strategies, then in wartime - survival strategies (fig. 2) even of production, the preservation of jobs and the payment of wages, logistics. The peacetime marketing philosophy, which consists of the fact that the manufacturer should produce such products that are guaranteed to sell in advance and receive the planned level of profitability and mass of profit by the enterprise, is undergoing adjustment. In wartime, the emphasis in marketing shifted towards building relationships of trust, support, and care with buyers and customers. It is necessary to form such forms of communication, which are based on understanding customers' needs in this challenging period. Therefore, for agrarian businesses in the current economic conditions, the way out of the situation is to move away from traditional marketing tools, direct offline communications, recommendations, and the introduction of new modern online tools that can help promote products (works, services). Digital marketing can be one of the most powerful channels for selling agricultural products (results, services) for farmers [21].
The practical choice of marketing strategies depends on how well the marketing goals are set and the methods used to achieve them. As a rule, the methods include:
collecting data about the target audience,
analyzing competitors,
implementing and comparing certain methods to choose the optimal ones.
A wartime marketing strategy must consider customer needs, preferences, behaviors, concerns, and the bottom line. That is why bots are gaining popularity; artificial intelligence contains answers to specific questions and creates the illusion of live communication. The marketing strategy should be based on actual data about buyers for better sales conversion, which will ensure the development effect, the ability to track the results of the enterprise's work and determine the direction of activity. Therefore, businesses must rely heavily on the latest market research to understand new approaches better and manage effectively in the future to achieve their financial sustainability and increase profits.
The generalization of literary sources shows that most scientists are focused on the following stages of the formation of marketing strategies:
Definition of marketing goals by the general strategy of the enterprise
Formation of a set of measures for the realization of set goals
Adjustment of the marketing strategy to changes in the external environment
Development of a marketing complex
Control and evaluation of the effectiveness of the chosen strategy
The main stages are analytics, direct company marketing strategy development, implementation, and control.
The author's approach to the marketing strategy formation algorithm is presented in fig. 3. production and sale of goods must meet the needs of buyers, the market situation, and the capabilities of the company; 2) satisfaction of customers' needs and compliance with the modern technical and artistic level; 3) presence on the market at the time of the most effective possible sale of products; 4) constant updating of products produced or sold; 5) unity of strategy and tactics for quick response to changing demand [16].
Fig. 3. Marketing strategy development algorithm agricultural enterprise
* Source: summarized and improved by the authors based on [6; 19-20]
When developing a marketing strategy, according to Bohuslavska S. I. [2, p. 10-11], the principles of marketing formulated by F. Kotler should be considered. These are the principle of consumer and producer freedom, the principle of limiting potential harm, the focus on satisfying basic needs, the principle of economic efficiency, the direction of innovation, the principle of educating and informing consumers, and the principle of consumer protection [9].
Among the main principles of forming a system-integrated corporate marketing strategy, O. Zozulyov and O. Pidmogilna singled out the following: the direction of systematicity, the focus of objectivity; the principle of partnership, the principle of coherence; the code of interactivity [8, p. 46-47].
Byvsheva L.O., Kondratenko O.O., and Kovalenchenko A. identified the following principles of marketing strategy formation in agricultural enterprises: purposefulness, flexibility, concentration of efforts, focus on long-term results, synergistic effect [6, p. 120].
These principles have the right to exist in a "peaceful" time. Since marketing underwent significant transformations during the war, the principles of developing its strategy also changed. The principles of marketing strategy formation in agricultural enterprises in wartime conditions and their characteristics are presented in the table. 3.
Table 3. Principles of marketing strategy formation in wartime conditions*
Principles |
Characteristics of the principles |
|
Social orientation |
The focus of the mission, goals, and orientation of all spheres of the company's activity is on meeting the needs and eliminating the concerns of the consumer, on the one hand, and the preservation of human resources and the continuity of the production process, on the other. |
|
Justified riskiness |
Adequate response to circumstances and manifestations of competition, optimization of resources to work within existing and likely limitations. |
|
Flexibility and maneuverability (adaptability) |
Adaptive response of production and sales to existing and potential demand; use of flexible pricing in response to changes in the military and political situation; situationality; helpful marketing tools and their integration. |
|
Concentration of efforts on current areas of marketing activity |
Attention to production, financial, and sales efforts on current directions of marketing activity (systems and methods of product sales; search for markets, consumers, satisfaction of physical needs of the population; price policy; selection of optimal forms and methods of communication policy). |
|
Focus on obtaining results in the short term |
Concentration of efforts on the most critical tasks facing the enterprise, in particular production and sales, achievement of immediate goals. Forecasting, development of innovative products, and implementation of innovations to obtain the expected result are not priorities in the short term. In high uncertainty and military operations, developing a long-term strategy and setting long-term marketing goals is impractical. |
|
Interconnection and interdependence of strategy and tactics |
Formation and implementation of tasks of the enterprise in individual markets (segments) and for each product in the short-term period based on the marketing strategy and assessment of the current market situation with constant adjustment of tasks considering changes in economic and other factors. First, goals are formulated within the framework of the chosen strategy, and then a plan of tactical actions to achieve them is drawn up. Tactics are a component of strategy, which can be quite variable. Strategic choices should be consistently translated into decisions and action programs that form the basis of the operational level. Tactical tasks are subordinated to strategic ones and do not negate global goals. |
Source: developed by the authors
Marketing is understood as a complex of the enterprise's current organizational and management actions, aimed at using the exchange to meet the real needs, requirements, and wishes of consumers and achieve the producer (seller) goals with an orientation to social ethics. The marketing strategy of an enterprise, in a broad sense, is defined as a set of ideas regarding general, non-detailed ways of creating or changing consumer perceptions of a product over a specified period with the help of available marketing tools and resources with certain competitive conditions, which allows the enterprise to achieve commercial success and general goals.
The marketing strategy of an agricultural enterprise must be formed based on the basic concept of its development and consider resources and opportunities, the state and features of competition, demand trends, external environmental conditions, and internal factors in the relationship that will be reflected in the result. Therefore, when developing a clear and understandable marketing strategy, it is crucial to set achievable and measurable development goals, use only verified data when analyzing the which involves planning marketing actions in the four most essential directions: Product, Price, Place, and Promotion (respectively, product, price, place promotion). However, the concept has been extended over the past decade to 7P, then 8P, and 12P. It should be noted that even in the 8P version, the content can significantly differ from the author and company, not to mention 12P. Following business needs and the marketer's vision, the following areas of planning marketing efforts are added to the classic 4Ps - People, Partners, Process, Physical Evidence, Performance, Positioning, Public Relations, Proof Points, and others [18].
Conclusions
The analysis of the scientific literature proved the absence of an unambiguous interpretation by scientists of the concepts of "marketing" and "marketing strategy," which prompted the authors to their own definitions.
The marketing strategy is closely related to the marketing plan. Some researchers believe that a marketing strategy is a plan, others claim that a marketing plan should also include market positioning, and still others - that only specific actions to promote the product within the marketing mix. A marketing plan is a document that contains the company's primary marketing goals, strategy, and tools for achieving them, including an action plan for a certain period [17, p. 287].
Structurally, the marketing plan consists of a marketing strategy, branding and positioning, and planning of marketing programs in the form of a marketing complex. Distribution and popularization of the brand, that is, raising awareness of the brand and creating its image, are achieved only with the help of the marketing mix. A marketing classic is the concept of the 4P marketing complex,current state of the market and one's own capabilities, find alternatives, and approach solving problems creatively and creatively. It is essential to consider every aspect of an agribusiness marketing strategy through a digital lens.
It was determined that the primary goal of the marketing strategy in a "peaceful" time is to obtain the maximum profit to achieve a sustainable competitive advantage due to the understanding of consumer needs and market realities in wartime - continuity, and profitability of production, preservation of jobs, payment of wages, provision of logistics, building relationships of trust, support and care with buyers and customers.
It is well-founded that marketing underwent significant transformations during the war, and accordingly, the principles of developing its strategy also changed. The principles of marketing strategy formation in agricultural enterprises in wartime conditions include the following: social orientation; justified riskiness; flexibility and maneuverability (adaptability); concentration of efforts on current areas of marketing activity; focus on obtaining results in the short term; relationship and interdependence of strategy and tactics.
Література
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