Marketing. Textbook

satisfaction of demand for consumer goods or services; 2) a set of targeted influences on subjects and objects of the marketing system to improve or maintain the competitive advantage of a company, product or service, as well as to maintain or grow profits.

Marketing functions — individual types or complexes of specialized activities carried out in the process of organizing and implementing marketing. The most important functions of marketing include: marketing research and information collection; marketing planning; marketing organization; new product development; product promotion; sales and distribution of the product.

Marketing information system (MIS) — 1) a constantly developing system of interconnection of people, equipment and methodological techniques, designed to collect, classify, analyze, evaluate and disseminate relevant, timely, accurate information for use in the field of marketing for the purpose of planning and implementation and control over the use of marketing activities; 2) a set of personnel, equipment, techniques and methods for systematic collection, analysis, synthesis and transmission of information used in the process of developing and making decisions in the field of marketing.

Marketing logistics — 1) a section of business logistics, including methodology, theory, techniques and methods for optimizing flows of all types that accompany marketing activities; 2) a set of methods by which the marketing system analyzes, synthesizes and optimizes flows of all types accompanying a product or service from the manufacturer to a specific buyer, as well as communications between subjects of the marketing system in the process of their interaction.

Marketing management — 1) marketing management at various levels of a market economy; 2) targeted coordination and formation of all company activities related to market activities at the enterprise level, at the market level and at the level of society as a whole; 3) management activities related to the implementation of planning, organization, coordination, control, audit, stimulation of all divisions of the marketing department (management) of the enterprise; 4) a set of principles, methods,

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means and forms of marketing management in order to intensify the process of formation and reproduction of demand for goods and services, increasing profits.

Marketing management process — the sequence of actions of divisions of the marketing service (management) to achieve tactical and strategic marketing goals (for example, analysis of market opportunities, selection of target markets, development of a marketing mix, development of marketing plans, controlling, etc.).

Marketing mix — 1) marketing structure; components, elements of the marketing system; processes that make up marketing; 2) structure of marketing expenses; 3) marketing recipe; a comprehensive program of activities to promote goods or services from the producer to the end consumer.

Marketing mix — a marketing recipe, the use of which allows an enterprise to best satisfy the needs of target markets and adapt to possible environmental disturbances. The simplest structure of a marketing recipe requires coordinated activities in the field of product, pricing, sales and communication policies (the well-known 4P formula: Product, Price, Place, Promotion).

Marketing models — 1) a form of qualitative and quantitative description, representation of the behavior of subjects of the marketing system in the process of their interaction regarding the creation and reproduction of demand for goods and services in order to obtain or increase profits; 2) a set of models (simulation, regression, correlation, etc.) reflecting and describing the functional, resource, cause-and-effect relationships of subjects and the marketing environment in the design, organization, planning, operation and development of the marketing system; 3) marketing mix model or each of its components (product policy model, pricing model, advertising model, etc.).

Marketing networks — 1) quantitative and qualitative characteristics of the process of interaction between three interrelated components: participants (firms), resources and activities; 2) a model of communication connections between subjects of the marketing system

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regarding the exchange of resources in the process of interaction based on the heterogeneity of the resource and the randomness of the manifestation of strong and weak connections of each of the participants in this exchange; 3) the sphere of manifestation of dependence and interaction of power of each of the subjects of the marketing system when their resource potential changes.

Marketing plan — a detailed sequential presentation of the activities by which it is expected to achieve the set marketing goals.

Marketing planning — a process, procedure associated with drawing up a marketing plan and choosing a marketing strategy aimed at increasing product sales and maximizing the company’s profits.

Marketing potential — 1) an integral part of the enterprise’s potential; 2) the total ability of the marketing system (enterprise) to ensure the constant competitiveness of the enterprise, the economic and social situation of its product or service on the market through planning and conducting effective marketing activities in the field of demand research, product, pricing, communication and sales policy, as well as the organization of strategic planning and monitoring the behavior of the product, competitors and consumers in the market.

Marketing process — an ordered set of stages and actions associated with the search and selection of ideas, new needs and their embodiment in a product or service, the development and sale of these products to the relevant markets or trade and distribution network.

Marketing research — 1) systematic search, collection, processing and integration of information that is related or relevant to all problems of marketing goods and services; 2) the process of searching, collecting, processing data and preparing information for making operational and strategic decisions in the business system; 3) the process of planning, organizing and conducting research on the sales market, the internal environment of the company, marketing tools, the market for productive forces (labor, raw materials, money market and capital market), the external environment, benchmarking and marketing intelligence.

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Marketing research design — 1) design and construction of the marketing research process, its model; development of a rational plan for conducting research and searching for marketing information. Can be done manually and using information technology; 2) a creative procedure for studying the state and predicting changes in the behavior of subjects of marketing research over time, according to resources and needs.

Marketing research process — a set of stages and actions related to the formulation of a problem situation, preliminary planning of the study, development of the design of the research concept, collection of information (data), processing and preparation of information, summing up the results of the study (analysis and forecast).

Marketing statistics — 1) a field of statistics that studies the state and dynamics of the market and market relations at different hierarchical levels of business activity; 2) type of professional activity for collecting, processing and analyzing data on the state and development of marketing systems; 3) a set of data and indicators characterizing the state of the internal and external marketing environment.

Marketing system — a set of socio-economic formations (elements) of the market space (environment) that have independence and integrity and are in continuous interaction regarding the formation and development of demand for goods and services in order to make a profit. The marketing system includes the following elements: producer company, supplier company, competitor company, intermediary company, consumer (market).

Marketing-controlling — a system for organizing control of the results of an enterprise’s marketing activities. Includes control and audit subsystems, which involve, respectively, planning, organizing and conducting processes for measuring, auditing and evaluating the results of the implementation of concepts, strategies and marketing plans, and the effectiveness of management activities to achieve tactical and strategic marketing goals.

Methods for collecting primary information. The following methods of collecting information are distinguished. Observation is one of

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the possible ways of collecting primary data, where the researcher makes direct observations of people and settings. An experiment is a method of collecting primary information in which the researcher selects subjects that are comparable to each other, creates different environments for such groups, and controls the variables of the main characteristics of the subjects. Based on the control results, cause-and-effect relationships are analyzed and conclusions are drawn about the primary information. A survey is a method of collecting primary information in descriptive research. The form of the survey is an interview, which can be conducted by telephone. This is the best method for collecting information as quickly as possible. During the interview, the interviewer has the opportunity to explain questions that are unclear to the respondent. The most versatile of all survey methods, but the most expensive, is the personal interview. It requires careful planning and control; personal interview can be individual or group.

Microenvironment — a component of the company’s marketing environment, represented by forces that are directly related to the company itself and its capabilities to serve its clientele, i.e. suppliers, marketing intermediaries, customers, competitors and contact audiences.

Motivation — 1) the process of intensifying the motives of an individual or group of individuals in order to intensify their actions to make a decision to satisfy some need; 2) motivating actions that influence the buyer’s activity in the process of making a purchase decision.

New product development — the process of creating original, improved and modified products based on the enterprise’s own research and development. This process typically includes steps such as idea generation, idea selection, new product concept development and testing, marketing strategy development, business analysis, new product development, test marketing, and commercialization.

Packaging — 1) container, the material in which the product is placed. Designed to preserve the properties of the product after its manufacture, as well as to make the cargo compact for ease of

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transportation; 2) development and production of a container or shell for a product; 3) the most important advertising medium.

Positioning of a product on the market — actions to ensure a product’s competitive position in the market and the development of an appropriate marketing mix.

Price — 1) monetary expression of value, the amount of money that consumers must pay to receive a product. The price the firm charges must be consistent with the perceived value of the offering; 2) an effective tool for the marketing mix, marketing mix.

Pricing methods — methods used in setting prices for products and services. There are three pricing methods: cost-based, customer-line based, and competitive price-based.

Pricing policy — a set of measures and strategies for managing prices and pricing, the art of setting prices for goods (services) that would correspond to production costs, market conditions, satisfy the buyer and bring planned profits. Pricing policy is considered only in the context of the general policy of the company.

Product — 1) an economic category, which in its most general form can be defined as a product sold on the market. Object of purchase and sale; 2) a set of basic consumer characteristics of the product that satisfy the specific needs of the buyer; 3) services and benefits provided by the consumer that complement the product and facilitate its sale; 4) the

“environment” of the product as such (product design, product quality, design, brand, packaging).

Product innovation — 1) the process of continuous improvement of a product associated with the creation of original, improved or modified products. It is of primary importance among measures to ensure the length of the product life cycle and the profitability of the enterprise. Includes ways to differentiate and diversify a product; 2) launching new products or a new group of products onto the market.

Product policy — a set of activities and strategies aimed at setting and achieving business goals, which include the entry of a new product or group of products into the market (innovation), the modernization of goods

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already on the market (variation) or the withdrawal of a product from the production program (elimination), as well as assortment policy.

Product strategies — 1) the main fundamental directions of product policy, following which an enterprise can ensure a stable sales volume and profit at all stages of the product life cycle. Product strategies usually include: innovation, variation, elimination of a product or service; 2) development of directions for optimizing the product range and determining the range of goods that create conditions for stable competitiveness and efficient operation of the company.

Quality — a set of properties of a product that determine its ability to satisfy the specific needs of consumers and meet the requirements. In sales contracts, the parties agree on quality indicators, the procedure for checking it, the presentation of documents certifying that the quality of the delivered goods meets the agreed requirements, and, if necessary, the conditions for the delivery and acceptance of goods in terms of quality are fixed, as well as the provision of guarantees on the quality and shelf life or storage of goods.

Research of marketing operations — 1) a set of methods (mathematical programming, graph theory, game theory, decision theory, pattern recognition theory, etc.) used in the system for developing and making marketing decisions; 2) “the art of giving bad answers to those practical questions that are given even worse answers in other ways” (T.A. Saaty, American specialist in the field of operations research).

Service — 1) use values entering the market, which predominantly do not acquire materialized forms; 2) the type of activity or benefit that one party can offer to the other.

Strategic marketing — 1) systematic and ongoing analysis of the needs and requirements of key consumer groups, as well as the development of concepts for effective products or services that allow the company to serve selected customer groups better than competitors, and thereby provide the manufacturer with a sustainable competitive advantage; 2) analysis of the needs of individuals and organizations;

3) clarifying the company’s line, defining goals, creating a development

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strategy and ensuring a balanced structure of the product portfolio; 4) the process of developing a strategic mix, the main directions of the company’s strategic policy in the field of goods, prices, communications, distribution and sales, taking into account the factors of the constantly changing marketing environment.

Target market — a market selected as a result of a study of markets for a particular product or service, characterized by minimal marketing costs and providing the company with the main share of the result of its activities (profit or other criteria for the purpose of introducing a product or service to the market).

Test marketing — the evaluation of a product and its marketing program in order to obtain and study the reaction of consumers and intermediaries to the appearance of this product in real market conditions. Used to forecast sales and profits.

The company’s marketing environment — a set of active subjects and forces operating outside the company and influencing the ability of the marketing management to establish and maintain successful cooperative relationships with target clients (partners). The marketing system consists of a microenvironment and a macroenvironment.

The concept of marketing — 1) the philosophy of organizing business, conducting business of a company, organization or individual operating in conditions of market relations, i.e. consumer and profit oriented; 2) a system of basic ideas, provisions and tools of marketing activities that are used to achieve the goals of the enterprise — making a profit and meeting the needs of the end consumer. Depending on the specific state of the environment, the level of development of market relations (seller market or consumer market), traditional, production, sales, commodity, socio-ethical and service marketing concepts are distinguished.

The Internet — 1) means of business communication; 2) computer information hypermedia for communicative interaction of market subjects; 3) global computer network, a multi-level communication model for the implementation of interactive network procedures using interactive

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information multimedia; 4) market environment, the electronic sphere of exchange, purchase and sale of goods and services in the World Wide Web environment using multimedia resources (video, audio, graphics, etc.).

The life cycle of a product — a certain period (cycle) of time, reflecting the main stages of development of a product from the moment of its development to its withdrawal from the market; the level of profit of the seller (producer) at each stage (stages) of the cycle directly depends on it. In the process of developing product sales and making a profit, five stages are usually distinguished: the stage of product development (pre-market), the stage of introducing the product to the market, the stage of growth in product sales, the stage of maturity (saturation), the stage of decline in sales or elimination of the product from the market.

The synergistic effect in the marketing system — the result of the orientation of all subjects of the marketing system in the process of their interaction towards the needs of the consumer and the satisfaction of his needs. Achieved through proper planning, coordination and organization of the process of interaction between participants in the process of joint entrepreneurship and cooperation of entities. It can be positive (2 × 2 = 5) and negative (2 × 2 < 4), depending on the effectiveness of the interaction of partners, the presence, absence or possibility of predicting and preventing negative feedbacks that disturb the process of interaction of factors. The magnitude of the synergistic effect of independent elements of a marketing system is greater than the sum of the effects of these elements acting independently (see: G. Haken, Synergetics. M.: Radio, 1980).

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