Ph.D., Associate Professor
Petrо Vasilenko Kharkiv National Technical University of Agriculture
DEVELOPMENT STRATEGY COMPETITIVE DOMESTIC AGRICULTURAL ENTERPRISES
Historical experience of the development of civilization shows that market relations promote the advance of a robust economic system designed to improve efficiency and capable of self-regulation. [2, p.161].
World practice shows that the marketing in the conditions of the development of a market economy is one of the defining elements of any entity involved in commercial activities. Agrarian marketing has specific features of its own; it differs greatly from similar systems in other branches, and is characterized first of all and particularly by the specificity of agricultural production and the specific properties of agrarian products as a whole .
It should be noted that today marketing activities are not sufficiently made use of by agrarian companies.
Therefore, task number one is to identify the peculiarities of the management of marketing activities in which agrarian companies are involved. One more important problem deals with the identification of a development strategy that would allow us to find the most advantageous approach to the management of marketing activities both from industrial and commercial standpoints.
Contemporary economic literature describes different marketing approaches to the management of marketing activities; however, a properly well-reasoned choice of one of these approaches applicable to the conditions of the agrarian production in Ukraine has not been made so far.
Therefore, the purpose of this research is to make a thorough analysis of available marketing approaches to the management of marketing activities and to choose the optimal marketing approach applicable to agrarian market conditions.
Foreign and domestic economic literature sources share very often different and rather interesting opinions on marketing approaches to the management of the activities of different entities in the market. However, when analyzing the Ukrainian agrarian market it is rather important to focus attention particularly on the works of local economists that give consideration to marketing approaches from different points of view.
One of the main approaches to the management of activities is the marketing approach that is actually the philosophy of the contemporary management of companies aimed at the assessment of supply and demand for specific goods, the procurement of appropriate resources for the production to meet public demand and state-of-the- art product delivery to the consumer to earn the maximum profit [3, p.311]. Economic books place emphasis on three different approaches to the management of marketing activities of the companies, in particular the planning-based approach, the network approach and the approach targeted at the action.
The planning-based approach is considered to be the most popular. It includes two basic stages, in particular doing marketing research and formulating marketing plans that can be fulfilled sequentially or in parallel using formalized and complicated methods or different analytical tools [1, p.107]. The common goal of the planning–based approach is to find a balance between the internal environment and the external environment of the company; the latter is very often unfavorable to it. If the intra-company environment is stable, then such marketing planning is not necessary. On the other hand, if the environment is extremely unfavorable, marketing planning is impossible. Therefore, using this approach marketing planning can be possible provided the following conditions are met and provided it is based on such assumptions:
- marketing research is done according to the rules that regulate the quality of the research done;
- formal marketing planning puts the success of the company in direct dependence on the planning, however the existence of this relationship is rather doubtful, because the statement that the assertion that the planning will result in success is not obvious;
- it is more complicated to do planning work for small-size companies or small and average businesses, because these are more oriented at action rather than at planning, their employees are less responsible and pay little attention to marketing problems (and in many cases they fail to admit the need for marketing in the practical activity of agrarian companies);
- with time, marketing plans and the strategies that were formulated previously become formalized.
According to the network approach, the market represents an aggregate of specific independent entities that establish long–term relations with consumers during their interaction [2, p.163]. Common features of the network approach and the planning-based approach are that these are based on specific assumptions, in particular the establishment and the development of long-term relations; the short-term relations in the form of individual transactions in the market are not the matter at issue. Long-term relations between the commodity producers, resellers and consumers are based on mutual trust, which allows for the reduction of transaction costs and it also allows us to lay down the foundation for the joint use of resources. When the network approach is used, the marketing strategy and the activity management are not considered to be the result of planning; these result from the interaction that occurs due to long-term relations.
As to the approach targeted at the action, planning here plays an insignificant role. In this case the company is supposed to have a high capacity for action that should be provided by strategic management with the following features:
- regular monitoring of the internal environment and the external environment;
- developing the individual scenarios of the events for the nearest future;
- creating efficient financial and managerial potentials;
- regular formulation of the efficient situation-related strategy;
- providing opportunities for the realization of the quick-response and the ability to act .
As regards the peculiarities of marketing strategies and the management of marketing activities at agrarian companies, it should be noted that at different levels of market operators different approaches to the organization of their marketing activities prevail on the given market.
From our point of view, the network approach works at the level of the producing operators of agrarian products as the primary participants of market relations, which is conditioned by a considerable discreteness of their number. At the level of reselling operators that specialize in commercial and purchasing activities, the main approach to the management of their marketing activities is considered to be the planning-based approach. Trading companies prefer to vary between the approach stressing action and the planning-based approach.
The approaches to the management of marketing activities are different, but these are interrelated with each other. It should also be noted that the system of the management of marketing activities for agrarian companies includes three subsystems. The first subsystem provides functional support for the management of marketing activities, and serves as a link between two other subsystems that provide the marketing research of the market environment and the marketing activities of the company.
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O.V. Ivaschenko // Bulletin KhAI. The series "Economics and Natural Resources." Issue 5 - H: KhAI, 2007. - P. 161-165.
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