Chapter 2 Tourism Marketing Concepts

2.3. Tourist enterprise - the main link in the implementation of the marketing concept Tourist enterprises are an important component that forms a tourist offer in the subsystem "subject of tourism". A variety of tourism enterprises operate in the tourist area.

Question 9 Marketing objectives Answer From the point of view of social significance, there are 4 alternative marketing objectives. 1. Increased consumption 2. Maximizing customer satisfaction 3. Maximizing consumer choice 4. Improving quality

2. “Winning Marketing Strategies. Hundreds of Proven-Effective Marketing and Sales Strategies for Every Business Situation, Barry Feig 380 pages. My rating is 5. This is probably one of the best books I've read in recent years, almost every page contains practical advice on how to make your marketing better. it

7.3. Marketing concepts and directions in the enterprise As noted earlier, marketing is used both in commercial and non-commercial activities, for example, in activities related to charity, dissemination of public ideas (

General characteristics of the marketing mix

The concept of "marketing complex" was first scientifically established in 1964 by Harvard Business School professor H. Borden. However, its origins go back to the distant 40s. XX century, when D. Callitop first applied the so-called recipe approach to the study of marketing costs. The seller was defined by him as "the designer of the marketing program from the ingredients", since it is he who plans the strategy of competition, at the same time is a manager who is able to integrate all the components into the marketing mix.

In 1960, J. McCarthy, in order to create a qualified cadre of marketers, synthesized a marketing complex from elements such as product, chain, distribution and promotion, creating the "4P" model.

Currently, the most common is the definition of a marketing complex, which characterizes it as a set of controlled factors aimed at the occurrence of predictable and desired responses of a certain market segment. These are activities that a company is able to carry out in order to promote its goods on the market.

Marketing mix (marketing mix) - it is a set of controllable variables that the enterprise uses together in an effort to elicit the desired response from the target market. The function of the marketing mix is ​​to form a complex that not only satisfies the needs of potential customers within the target markets, but also maximizes the efficiency of the enterprise.

J. McCarthy's concept<"Р" заключается в следующем: комплекс маркетинга состоит из четырех элементов: товар (продукт - product), price (rice), distribution (distribution) of goods to consumers (place - place) and promotion of goods (promotion).

Let's take a closer look at each of the above components.

One of the most important components of the marketing mix is product (goods), or assortment policy, which directly depends on the direction of cash flows, its assessment and forecast.

The assortment can be changed in accordance with three approaches: vertical, horizontal and integrated. Vertical change assortment represents the beginning of the release of products previously purchased from other manufacturers, as well as its promotion in its own retail network. Horizontal change - this is the expansion of the assortment and entry into new sales markets within the framework of the existing cooperation. A complex approach characterized by the expansion of the assortment both vertically and horizontally.

Price as the most important economic tool of the marketing mix has a direct impact on the nature of the profitability of the enterprise. To determine the price of any product, the most important indicators of the possibility of its sale are the demand for similar products, the sensitivity of purchasing power, competitiveness, as well as the level of costs associated with all production and sale. Therefore, a very important area of ​​activity of the marketing service of the enterprise is a reasonable choice of an effective pricing strategy aimed at developing a policy of a single or differentiated, high or low, stable or unstable, preferential or discriminatory prices, as well as a policy that provides for all kinds of surcharges and discounts.

Choice of distribution system (distribution) is decisive in determining the direction of the sales policy and can be carried out both by the enterprise itself and with the involvement of resellers - wholesale and retail sellers, distributors, brokers, dealers, all kinds of agents, etc.

The implementation promotion of goods (communication policy) the market is promoted by advertising, public relations (public relations), sales promotion and direct marketing (direct marketing). All these tools are aimed at promoting a product by stimulating the activities of sellers, intermediaries and, of course, buyers. They consist in holding various promotions, contests, lotteries, providing all kinds of gifts, discounts, benefits, etc. in order not only to increase sales and create an image of new products, but also to promote and consolidate the image of a particular brand.

In order to competently plan the profitability of the company in the short and medium term, it is necessary to resort to help operational marketing. It is a fairly effective tool based on a well-thought-out marketing strategy based on measurements, processing market data, and converting it into reliable information. Sometimes the most at first glance fashionable and high-quality product does not find demand because of its price and availability for the mass consumer.

The modern approach to the marketing mix is ​​not limited to the concept of the marketing mix "4P", but seeks to include additional components in it, which make it possible to form such approaches as the "6P", "7P" and even "P" model.

The most successful (in terms of prevalence in the minds of marketers and scientists) of the "extended" interpretations of the marketing mix can be called the concept of "7P", in which three more are added to the "4P": people (people), purchase process (process) and physical attribute (pehysical evidence).

People - contingent related to the sale and purchase process. Purchase process - what is associated with the buyer's activity in the selection of goods. Physical Attribute - a material item that can serve as a confirmation of the fact of the provision of a service for the client.

The concept of "7P" was originally created for marketing services, but now an increasing number of researchers are trying to apply it to "product" marketing. However, this makes her even more vulnerable to criticism.

In accordance with the aforementioned approaches, marketing mix models may include the following additional elements:

• o packaging (package);
• o purchase (purchase) - not only the prerequisites for making a purchase, but also the consequences of making such a decision;
• o clientele (people) - contingent related to the process of buying and selling;
• o staff (personal);
• o purchase process (process) - what is associated with the buyer's activity in the selection of goods;
• o environment (physical premises) - conditions created by the seller in order to more efficiently sell their goods;
• o profit (profit) - capital received in the form of income relative to the invested funds;
• o public relations (PR), creating a positive reputation for the product and the organization as a whole.

At its core, the "4P" concept is a marketing position, from the point of view of which the seller approaches the formation of his sales strategy, and the consumer perceives it as obtaining possible advantages and certain benefits.

Currently, there is the following trend: to improve the balance of the internal and external marketing environment, concept "4C", elements of which are:

• o customer needs and requirements (customer needs and wants);
• o purchase costs (cost to the customer);
• o information exchange (communication);
• o convenience (convenience).

Consumer preferences are highlighted as a priority. Moreover, this priority operates at all stages of the process of production and sale of goods or services without exception. An interesting approach, but it raises doubts for three reasons.

First of all, it does not conflict with the concept of "4P", which also prioritizes consumer preferences. Therefore, there is no reason to give preference to the "4C" concept. According to the "4C" concept, suppliers, competitors, and contact audiences are indispensable factors to consider when developing a marketing concept. However, as practice shows, these factors cannot be considered decisive. Accordingly, the concept "AS" is more theoretical than practical.

And finally, consumer management is doomed to failure in advance, since this element of the external environment is practically uncontrollable.

As can be seen from the analysis, despite certain attempts to increase the number of components of the marketing mix, ultimately it remains unchanged. However, it is quite relevant to conduct research in the field of interaction between the marketing complex and the environment, resources and marketing tools.

The order of the elements of the marketing mix clearly shows the sequence of the implementation of the main marketing functions:

• 1) it is impossible to raise a question about any marketing program if the marketer does not have at his disposal product, which can be offered to the market with a certain value for the consumer;
• 2) if there are at least two parties, each of which is interested in exchanging with the opposite party, they must have some means to interact. The proposed product must be available to the interested consumer, therefore the next function of the marketing mix distribution;
• 3) the consumer always evaluates the product not only on the basis of a set of its consumer properties, but also on the amount of costs associated with its acquisition. We are talking about the well-known marketing ratio "price-quality". Experts more clearly define this ratio as "utility - quality": the consumer analyzes the utility of the product offered to him and the price of this utility acceptable to him. The next element of the marketing mix is price policy;
• 4) potential participants in the transaction will never be able to learn about each other if there is no communication between them, so the last element of the marketing mix is communication policy.

The parties to the transaction must be sufficiently informed about the essence of the available proposals, and each of them, using the means of communication, must convince of the attractiveness of their own proposal.

An alternative marketing mix model has been proposed Chekitan S. Dev and Don E. Schultz In the magazine "Marketing Management" for January-February 2005. In essence, this is the same model "4P", only from the "reverse" side - through the eyes of the buyer. In this model, each of the elements of the classic formula "4P" is associated with an element of the model "SIVA":

• o product - solution (solution) - how suitable a solution to the problem was found (to meet the needs of buyers);
• o promotion - information (information) - whether buyers are aware of the decision, and if so, from whom they receive sufficient information to make a purchasing decision;
• o price - value (value) - whether the buyer is aware of the value of the transaction; what costs he will incur, what benefits; what he can donate, what will be the reward;
• o distribution (eng. distribution - distribution) is a term implying the distribution, distribution or interposition of any objects. Effective distribution allows a firm to properly form distribution channels for their goods.

The main models of the marketing mix and their comparison are shown in table. 4.2.

The company itself determines with which marketing complex it can enter the market. In this it can be based both on its own experience and on the most effective forms of marketing activities of other companies.

The marketing mix is ​​a special set of tools that allows the marketer to achieve the main goal: to satisfy the needs of buyers and increase sales. With the help of these funds, demand is generated and management is carried out.

Marketing concept and goals

The concept of marketing appears in the second half of the 19th century, when, in response to overproduction, it became necessary to find new tools to spur product sales. The new concept was defined as a specific activity aimed at increasing the company's profits. Today, there are at least a thousand different definitions. In general, marketing is understood as a process aimed at studying the market and forming a circle of consumers of a product.

The main goal of marketing is customer satisfaction. For this, the market is studied, the product is designed, its price is determined and promotion is planned. Marketing seeks to establish between the manufacturer and the buyer of a product in order to maximize consumption. In addition, he is faced with the goals of in-depth research of the market situation and the study of consumer needs and characteristics of his behavior. It is designed to increase customer satisfaction with the product in order to lead them to repeat purchases. Improving the quality of life of consumers, expanding the range of products for the fullest satisfaction of the needs of the population is also the sphere of marketing. Based on these goals, the functions of marketing are determined: sales, analytical, product-production, communication, management and control.

Marketing mix theory

In 1953, American marketing first used the term "marketing mix", by which Neil Borden understood a special set of tools to achieve the desired marketing results. Later McCarthy refined this concept and developed which has become synonymous with the concept of "marketing mix". It included elements such as product, price, place, promotion. He found that four basic elements, without which it is impossible to organize enterprises, exist in any type of production and are universal.

In general, a marketing mix is ​​a set of measures and tools that allow a company to influence the demand for goods and services produced.

Product

The first is the product (or product). This is the starting point of marketing activities, and it refers to a certain item or service that has a certain value for the consumer. Even at the design stage, it is necessary to include in the product those qualities and properties that will be in demand from the consumer. For the successful implementation of the product, the marketer needs to have a good idea of ​​what need he is able to satisfy, what are the advantages and weaknesses of the product. You should also imagine what improvements to the product can increase its sales, in which markets it can be in demand. To increase sales, it is necessary to take care of product packaging, its attractiveness and information content, and for quick identification of the product by the consumer. To form consumer loyalty to the product, it would be nice to provide guarantees and additional services for the client.

Price

The marketing mix includes pricing. This is a very important action on which the success or failure of a product in the market depends. The price should not be too low or unmotivatedly overpriced, as it can scare away the buyer. Despite the seeming ease of maximizing profits at the expense of a high price, one should be very careful when setting a high or low cost, since it is a powerful factor in the image of the product and the manufacturer. The price must be competitive, adequate to the purchasing power of consumers and the chosen strategy. Price can become a promotion tool in strategies such as market penetration or skimming. When designing the cost of a product, you should provide for several options for different distribution channels, the possibility of providing discounts.

Place of sale

Choosing a distribution site is an important element of the marketing mix. This choice is based on a thorough analysis of consumer behavior. It is necessary in the course of the study to identify the places where it will be most convenient for the consumer to make a purchase. Organization of sales, like other methods of sales promotion, should push a person to buy. The procedure for purchasing a product should be extremely simplified and quick, the consumer should not spend a lot of effort on making a purchase. When developing a marketing strategy, you should define the markets for your reach and distribution channels. Also an important part of the sales organization is the merchandising system (advertising at the point of sale, including the display of the product, atmosphere and navigation in the store).

Promotion

The marketing mix is ​​what is most often associated with promotion. Indeed, promotion is a critical component of the marketing mix. In its structure, it is customary to distinguish four groups of tools: advertising, sales promotion methods, PR. These funds are used in combination, solving long-term and short-term tasks. Advertising and sales promotions usually produce quick results, PR is a low-intensity technology and has a delayed impact. A set of promotion tools is implemented in the form of the company's media strategy. Different tools are used for the B2B and B2C markets.

Marketing tools

A marketing mix is ​​a kind of action plan; operations cannot be reversed or released as unnecessary. Each element of the complex requires coordinated and thoughtful marketing actions. The main marketing tools are the sales, pricing, product and communication policies of the enterprise. In addition to the marketing mix, there is the concept of a media mix - a set of means for promoting a product in the information environment. This includes direct advertising in the media (radio, television, etc.), event marketing, various promotions, advertising on the Internet.

You probably know that the preparation of organizational plans for the production and sale of products for the future, strategic and operational, is the responsibility of the department responsible for the marketing complex at the enterprise. Actually, this complex will become the main topic of the article.

Definition of marketing

To begin with, let's give a scientific definition of the concept of "marketing". Marketing is a multi-component system for approving the structure of production and further marketing of products (both the sale of goods and the provision of services), which is based on meeting consumer demand by anticipating the preferences of potential buyers. Enterprises today are developing in a rather difficult market economy. It is quite natural that the market determines a whole range of problems and questions to which firms need to find an answer.

The main issues of the market economy for the producer participants are as follows:

• What and how to produce?
• How many products do you need to produce?
• How to effectively organize intra-organizational planning and management of the production process?
• Who will buy the manufactured products?
• What is the most effective way to survive in a competitive market environment?
• How do you work out the best way to distribute goods to potential buyers?

If you don’t like scientific definitions, just remember these questions, because at its core, marketing answers exactly to them.

Production and distribution plans

The organization's plans, mentioned above, include forecasts of future market conditions, short and medium term goals of the enterprise. In addition, the plans include the development of a marketing complex (a kind of PR-company): the strategy of behavior and tactics of the company's actions in market conditions, its price, product orientation and sales policy, as well as an advertising or communication path of action.

Definition of the marketing mix

A marketing mix is ​​a collection of controlled, fickle marketing factors used primarily to generate interest and positive feedback from the target market audience.

Otherwise, this complex is called marketing-mix. The marketing function "mix" is to form a set of elements of the marketing mix. A complex that not only satisfies the needs of the target audience of potential consumers, but also maximizes the effectiveness of the organization's activities.

"Marketing mix" is mainly used to solve the tasks set in the marketing policy of a certain economic entity on a market segment specified during the development of the complex.

A brief history of the marketing mix

The first attempts to systematize disparate marketing tools were made in the middle of the last century. appeared in an article by J. Calliton. It looked like the author decided to come up with some recipe for effectively solving marketing problems.

Albert Frey was the first to put forward the idea that marketing variables must necessarily be divided into two main groups:

• make up an offer (brand, packaging, price, product, service);
• form methods and means (advertising, distribution channels, PR, sales promotion, personal sales).

The 4P model, which has become a marketing classic, was proposed by American Jerry McCarthy in 1964. It was a marketing complex of special components: product, price, location, promotion. By a lucky coincidence, all elements began with P (it has not been established that the author chose them on purpose). Actually, in such an odious way, the popular name of the model today was formed - 4P. The name became a fundamental factor in the popularity of this marketing model due to the fact that it was simple and easy to remember. McCarthy's concept of 4P was first shown to a wider audience in 1965 by Neil Boden, the author of the 4P article. Paradoxically, such a long-standing marketing model has indeed become (and continues to be) generally accepted, while the innovative and revolutionary models of our time cannot repeat or even come close to its success.

Experts recognize the model developed by Booms and Bitner in 1981 as still somewhat acceptable. The authors in the new concept added three more Ps to the four Ps: process, people, physical rationale (for example, the rationale for the provision of a service). Bitner and Booms did not think about the name for a long time, deciding that 7P was quite original and acceptable. (More on this later.)

One of the most revolutionary marketing models was proposed by Bob Lotheborn in 1990. The author decided to speak at a scientific conference, setting out in his report the main principles of building the 4C model. (Read more about this concept below.)

Dev and Schultz created the SIVA in 2005, innovatively reflecting the 4P classic through the eyes of the consumer. That year generally turned out to be rich in marketing revolutions: Otlakan proposed the 2P + 2C + 3S model (information about both models is in this article.)

General characteristics of marketing

Marketing is designed in such a way that the entire system is based on the availability of the product itself. No product - no marketing. However, it is not enough to simply find a product; it must certainly have some value (utility) for the consumer. The product of the offer must be available to the consumer who is interested in purchasing it, otherwise the offer does not make sense. If there are at least two parties showing interest in exchanging with the opposite participant in economic relations, there must necessarily be some means of interaction between them. Actually, marketing deals with these tasks.

The ratio that determines consumer consciousness sounds like "price - quality". The buyer always rates the product on the basis of the amount of costs that were spent on its purchase. The above ratio can be given as a "price - utility" option: the consumer analyzes how useful this acquisition can be for him and what price he is willing to pay for this utility.

Another element of the marketing mix is ​​communication. How else can the manufacturer know about the consumer? The parties to the transaction will certainly communicate, otherwise it would be very difficult for them to solve the assigned tasks.

Main elements

There are classic and non-classic variants of the marketing mix.

Classic elements of a marketing mix:

• Product. This concept includes both goods and services: packaging and design, technical characteristics, assortment and its definition, quality level and many others.
• Price. The next element has the meaning of determining such characteristics as the rate of return, cost price, discounts, the optimal price for the consumer, the value of the product in the consumer's perception, and so on.
• Distribution (product reaching the consumer's authority). In this case, we are talking about the choice of points of sale (retail outlets), intermediaries in the transaction, channels and methods of product distribution, and so on.
• "Promotion" of the product. Promotion of a product on the market refers to the work of establishing effective public relations and personal sales, as well as advertising mechanisms, product sales promotion, and the like.

There is no need to separately say that communication channels are established between all marketing elements. Thus, the quality characteristics of the product and its functionality (capabilities) quite reasonably affect the formation of the price of the product. This particular example is connected with the fact that the consumer (often on an intuitive level) evaluates his purchase according to a single criterion - the ratio of price and efficiency (utility). That is, the buyer unconsciously compares the cost of the product with the set of benefits that this product can offer him.

4P

The classic structure of the marketing mix is ​​the 4P concept: product, price, place, promotion. Actually, all the elements of the model are described in detail above. The 4P marketing complex determines the organization's policy in the areas of commodity sales, price characteristics, sales and communication. However, the main thing in determining the vector of activity of any enterprise is the direct sale of products. In its process, elements of the marketing mix may well change. Permutations in this case are a means of more effective impact on consumers, possible with the resources available to the organization. In this case, there is a real possibility of "betrayal" of the company itself, so it is extremely important to maintain your own understanding of marketing and follow a special marketing path.

Modern models

In modern conditions, there is a constant development, and, consequently, the complication of the competitive component of the market. In this regard, new elements are added to the improvement of the marketing complex, forming the concepts of 5P - 12P, 4C and others. However, the increase in the components of the concept of "marketing complex" does not cause a violent positive reaction among all specialists.

The main reason for dissatisfaction, highlighted by the opponents of the idea of ​​expanding the complex, is the possibility, in their opinion, of violation and deformation of the very concept of marketing as such, the transfer of the role of additional elements from the management plane of marketing. It is also important that the four main components can indeed be comprehensively studied and controlled by marketers, which is difficult to say about additional elements.

7P

Experts recognize the 7P as the most successful of all the options for expanding the 4P model. To the four Ps, which were mentioned earlier, are added:

• People - everyone involved in buying and selling.
• Process (purchase process) - an active choice by the consumer of the desired product.
• Physical Evidence (physical attribute) - a kind of material item that satisfies the client as confirmation that the service was provided and is completely legitimate.

The model with the P family was originally created for marketing services, but is now actively used in the commodity version.

Other P

The main 4P marketing mix is ​​also criticized by experts for focusing on the micro level or the fact that only the seller is affected. As part of the expansion of this concept, the number of P in the marketing economy increases.

• Purchase - the reasons and consequences of the purchase.
• Package - represents not only the prerequisites for making a purchase, but also the consequences.
• Profit (profit).
• Physical Surround - The manufacturer's updated performance enhancing conditions.
• PR (public relations) - forms a positive consumer perception of the organization.

4C

A very bold attempt to shift the focus to the consumer is the formulation of the 4C model. Its main drawback, which does not allow the concept to function effectively, is the absolute rejection of P-components.

This marketing mix includes:

1. Customer needs and wants
2. Cost to the customer
3. Communication (exchange of information).
4. Convenience (consumer convenience).

All the components that make up the model clearly demonstrate an attempt to reorient from the manufacturer to the consumer at all stages of both the production of products and the subsequent sale of the goods. There is also a desire to create an antagonist of the four R. But the author, apparently, did not think that the classic elements of the marketing complex also take into account the needs of the buyer in one way or another. When using the 4P concept, no one will get away from analyzing customer expectations and other research in the field of marketing. Moreover, in addition to producers and consumers, the 4P model takes into account both competitors and suppliers.

SIVA

A relatively new alternative to tradition (SIVA was published in Marketing Management magazine in 2005). It is not for nothing that we use the definition "alternative". In this variant of the marketing complex, a substitute SIVA element has been selected for each component of the classic 4P concept. The classics seem to be presented "from the inside out" - through the eyes of the consumer.

The ratio of 4P and SIVA looks like this:

• PRODUCT -> SOLUTION (solution).
• PROMOTION -> INFORMATION.
• PRICE -> VALUE.
• PLACE -> ACCESS (access).

Now, in more detail about each of the four SIVA elements:

• Solution Searching for the most acceptable solution to the problem in order to fully meet the needs of the buyer.
• Information Who should provide the consumer with information about the product and how to do it in order to ensure the sale of the product.
• Value On the costs and benefits of the buyer, on his losses and remuneration.
• Access Where should the buyer look for help in deciding how easy it is to find or purchase a particular source?

2P + 2C + 3S

The Otlakan model applies exclusively to e-marketing, representing a mix of service marketing and narrowing. Actually, this is the main drawback of the concept. Now let's indicate all the elements of the model:

• 2P - Privacy, Personalization.
• 2C - Community (community), Customer Service (customer service).
• 3S - Sales Promotion, Security, Site.

Marketing complex is a balanced combination of controlled marketing elements that an enterprise uses to achieve its marketing goal in the target market.

1) marketing mix;

2) complex "4 Ps";

3) classification "4 Ps";

4) marketing complex;

5) marketing mix;

6) marketing composition;

7) marketing tools;

8) a set of marketing tools;

9) controllable marketing factors;

10) controllable marketing factors.

Historically, the term "marketing mix" (from the English word "shih" which means "mix") coined in 1953 by Neil Borden, president of the American Marketing Association, at one of the meetings of this association. N. Borden invented this general term based on the works of James Culliton, which the meaning of the practical work of a marketer reduced to a combination of certain constituent elements (tools). The word "mix" in the phrase "marketing mix" means a combination, a combination of certain elements of marketing to achieve target market results by an enterprise. Over time, the term "marketing mix" undergoes a certain metamorphosis both in the name and in the content. 1960 EJ McCarthy proposed the "4 Ps" complex. He identified four main elements of marketing, each of which begins with the English letter "P". The complex "4 Ps" includes the following elements:

1) "producto (from English -" Product ")

2) "price" (from English - "Price")

3) "place" (from English - "Place") - in this context - "place of goods on the market", that is, the marketing activities of the enterprise (sale)

4) "promotion" (from English - "Promotion").

Thus, the McCarthy complex was named "4 Ps". The small English letter "s" in the name of the complex is used for two reasons:

First, English grammar provides for the plural "s" at the end of a word;

Secondly, in order to emphasize the English-speaking origin of this complex and not to confuse in this context the English "P" with the Ukrainian (Russian) "P".

With the "4 Ps" concept, McCarthy noted that the product, its price, its placement and sale on the market, and consumer awareness are the basic elements whose harmonization prompts the consumer to make a purchase.

The enterprise uses the elements of the "4 Ps" complex to influence the target market (see Fig. 3.7).

Rice. 3.7. The essence of the "4 Ps" concept

table 3.6

Description of the concept "4 Ps "

The characteristic features of the "4 Ps" concept are presented in Table 3.6, as follows:

1) Basic conceptual meaning the concept of "4 Ps" is that it shows the relationship between the main subjects of the market - the manufacturer and the consumer.

2) Components element concept "4 Ps" - consumer and marketing complex (product, price, sale, promotion).

3) Basic subjects (ie participants) of the "4 Ps" concept - consumer and producer (enterprise that produces goods or provides services).

4) Main an object the concept "4 Ps" - the consumer. This means that he is at the center of this concept and the efforts of another subject of the concept - the manufacturer - are directed at him. The consumer is an element of the "4 Ps" concept, but not an element of the marketing mix.

5) Main principle the concept "4 Ps" - compliance of the elements of the marketing complex (complex "4 Ps") with the requirements of the consumer. This principle is at the same time a general conceptual principle of marketing as an enterprise management system, as a function and philosophy of business.

Each element of the marketing mix has a specific meaning, plays a specific role and performs a specific function in this complex. The functions of the elements of the marketing mix are presented in Table 3.7.

table 3.7

The main functions of the constituent elements of the marketing mix

The element "product" is a marketing tool aimed at the formation of such qualities and functional properties of the company's goods that meet the requirements of the target market and contribute to the satisfaction of its needs.

Forming the quality characteristics of a product, a mass-producing enterprise will evaluate the product from the point of view of the consumer and understand what criteria the consumer is guided by when buying the product.

The "price" element is a marketing tool that determines the size of the sales price for the goods of the enterprise, the forms and methods of its payment by the consumer. Price is the monetary value of the product's value to the consumer. If the consumer perceives the price as super high, it means that the product offer of the manufacturing enterprise does not provide adequate value to the consumer.

The element "sale" is a marketing tool that covers the sphere of circulation of goods produced by an enterprise, forms the methods of their proof from the manufacturer to the end consumer, determines the intensity, methods and forms of selling goods on the market for the target consumer.

The element "promotion" is a marketing tool that generalizes the stimulating function of marketing and is designed to generate the demand of the target market in the direction necessary for the enterprise. Promotion covers direct and indirect forms and methods of informing and influencing the consumer.

Each element of the marketing mix also includes in its composition other elements that detail and concretize its content within the framework of the main function performed by this element. For example, the "promotion" element covers the following constituent elements: advertising, public relations, methods of promoting sales of goods, and personal sale of goods.

These elements of promotion reproduce the stimulating function of marketing and are aimed at the implementation of the main function of promotion - the formation of the demand of the target market in the direction necessary for the enterprise. But each constituent element has its own peculiarity and characteristic features for the realization of this goal: advertising is a paid indirect form of providing information about goods and the company; public relations summarizes the totality of the enterprise's activities aimed at creating and maintaining its target image; methods of promoting the sale of goods - these are short-term incentives to encourage target buyers to make a purchase; personal sale involves a demonstration of the product by a representative of the enterprise during a conversation with a potential buyer for sale.

The detailed (concretized) content of the constituent elements of the marketing mix are presented in Table 3.8.

table 3.8

Elements of the marketing mix have a different temporal focus on their adjustment and change opportunities (see Table 3.9).

Typically, a business can quickly change product prices, sales and advertising costs, but developing new products and transforming distribution channels is time consuming. Therefore, in the short term, an enterprise may slightly change the elements of the marketing mix, while the strategic aspects of the marketing mix (especially in the field of marketing innovation policy) take a lot of time.

table 3.9

Possibilities for temporary changes in marketing elements in the marketing mix

A marketing mix is ​​a set of controlled marketing elements that are combined in a certain way to achieve the desired result of the demand of the target market of the enterprise for the implementation of its marketing goals. Based on this, the definition of "marketing mix" has the following characteristics:

1) submits to the purpose of marketing;

3) contains controlled (manageable) factors (elements) of marketing;

4) forms a certain combination of constituent elements.

Subordination to the marketing goal means that the marketing mix

must be consistent with the marketing goal and be focused on achieving it.

Focus on the target market of the enterprise means that the target market (consumer) is the main object of the marketing mix. The marketing complex is formed after determining the target market (segment) of the enterprise and setting marketing goals for it. When deciding on a target market, a marketer must understand how consumers of that target market choose a product from competing offerings on the market. The company must clearly know its customers, understand their needs, requests and create a marketing complex that would effectively meet these requirements and needs. Therefore, a marketing mix is ​​a means of influencing an enterprise on the target market, primarily on consumer demand in accordance with the marketing goal. This influence does not always occur upward, for example, in the case of such a type of marketing as demarketing, the main goal of which is to reduce demand and withdraw goods from circulation, the marketing mix is ​​also aimed at achieving this goal of reducing demand.

The marketing mix includes controlled (managed) elements of marketing, that is, those that the company can directly form and change in the process of marketing activities. The state of control over a certain variable means the ability to define and change its value. In terms of the marketing mix, the state of controllability means that the enterprise, represented by the marketer, can manage each element of the marketing mix, that is, define, create and modify this element. The company directly creates and changes the elements of the marketing mix: it forms a certain quality of the product, sets the selling price of the product, determines the form of its sale on the market and creates an appropriate promotion complex. Thus, the enterprise has a direct impact on the elements of the marketing complex, in contrast to uncontrollable external market factors - factors of the marketing macro environment and competitors, suppliers, consumers, intermediaries.

From the aforementioned characteristic features of the marketing complex (contains controlled elements of marketing), its next characteristic follows logically - the presence of certain combinations of constituent elements. Since the enterprise directly forms all the constituent elements of the marketing complex, then by providing each element with certain characteristics (Table 3.8.), You can create many combinations of this complex. Taking into account the possibilities of modern information technologies and considering each element of the marketing mix as a variable, it is possible to provide it in digital form, which will allow the creation of an infinite number of options for the marketing mix. At the same time, different combinations will lead to different market results, therefore, out of the possible combinations, only one should be chosen - the most effective.

To be effective, the marketing mix must meet certain requirements (see Figure 3.8).

Rice. 3.8. Requirements for an effective enterprise marketing mix

The first two principles of efficiency - focus on achieving the marketing goals of the enterprise and meeting the needs of the target market - follow from the essence of the marketing mix and at the same time are its characteristic features discussed above.

The principle of a balanced combination of constituent elements complex marketing means the need to create from these elements a certain organic coordinated set.

All elements of the marketing mix - product, price, sale and promotion - must be optimally balanced with each other and form a single harmonious combination (harmonious complex). For example, if the product of an enterprise is of high quality, then the price should serve as a sign of this quality and reproduce these advantages - the price will also be high (prestigious). Promotion should aim to communicate these benefits to the target audience. The sale of a product should also be aligned with the overall strategic market position of the product. In this case, it will be exclusive.

It is necessary to avoid the conflicting ineffective combination of elements in the formation of the marketing mix. For example, in the early stages of marketing development in Ukraine, some enterprises proclaimed the following advertisement: "We offer high quality goods at the lowest prices." Such advertising is an example of a conflicting combination of "product" and "price" marketing elements. You do not need to be a highly qualified marketer to understand that high quality goods objectively cannot provide the lowest price. In this case, either the quality of the product is not as high, or the price is not as low as advertised. Therefore, later, enterprises began to show in their advertisements the optimal combination of price and quality: "European quality at an affordable price", "high quality at an affordable price", etc.

The principle of forming (ensuring) the competitive advantages of the enterprise means that the marketing mix has to form such a combination of marketing elements that better than competitors, meets the needs of the target market by creating different advantages for the consumer from competitors.

The principle of compliance with the resources and capabilities of the enterprise emphasizes the need for a real and rational construction of the marketing complex in accordance with the resource capabilities of the enterprise. These resource opportunities are determined by the state of the financial, labor, technical, technological and organizational resources of the enterprise according to their ability to implement the formed marketing complex.

The main elements of the "4 Ps" marketing mix (product, price, distribution, promotion) represent the four main directions of marketing decisions. Management of the marketing complex is aimed at creating such elements of the complex that best meet the needs of the target market and satisfy its needs better than competitors. Thus, the management of the marketing mix forms the main area of ​​implementation of the marketing concept.

The advantages and disadvantages of the marketing mix are summarized in Table 3.10.

Table 3.10

Advantages and disadvantages of the marketing mix "4 Ps "

The marketing mix "4 Ps" serves as the foundation of marketing theory and practice. At the same time, a clear definiteness and systematization of the marketing complex is an indispensable, but insufficient condition for creating a methodology for its successful application.

The marketing mix has certain drawbacks.

At first, the constituent elements of some "4 Ps" are correlated with each other. For example, the "packaging" element refers to both Product and Promotion. The "personal selling" element can be viewed both from the standpoint of its belonging to the Place element as a variety of selling methods, and to the Promotion element as a promotional marketing event.

Secondly, complex marketing "4 Ps" requires some adaptation to a specific type of business and / or market.

Thirdly, the content of the elements of the marketing mix is ​​closely intertwined with other functions of economics and management. For example, when shaping a marketing pricing policy, it is difficult to determine where marketing functions end and finance and accounting functions begin. Or in the area of ​​innovation: how much does marketing have to delve into technology issues and problems? Indicative in this sense is the expression of Peter Drucker: “There are two and only two basic functions of a business - marketing and innovation. Marketing and innovation create (produce) the result, all other functions are just costs. "

Fourth, the marketing mix does not quantify the contribution of each element to the marketing mix. For example, an element of the complex is essential in a certain market situation and how can this be quantified? How to measure and assess the impact of the marketing mix itself on the results of the company's marketing activities? The theory of marketing requires further development of methods for measuring and forecasting both independent and joint influence of the tools of the complex - marketing "4 Ps".