1. On Management in Russia

In the early years of the new Russia, it was said the foreign entrepreneur would probably do better than the multinational corporation. He was seen as flexible and willing to adapt to Russia's circumstances and culture, whereas the giant corporation might try to impose its own way of doing business and inevitably face problems.

That may have been true at one time, but it seems that major companies are finally waking up. After a few years in Moscow, they are starting to realize that simply transferring their successful methods of doing business elsewhere in the world will not work in Russia. Rather, they are learning how to work with Russians on Russian terms.

The president of a successful Russian food company, for example, said last year that he has a formula for business that has worked well: people, ideas, money. That is, first he must like the people with whom he is dealing. Then they must have good ideas. Finally, they must show him the money. But it has to be in that order.

Some American companies are learning that the way to make Russians feel secure enough to accept American money and ideas varies with the partners' background, age, family status and other personal factors. But it almost always comes down to relationships. Treat Russian counterparts as you would treat a friend rather than an enemy or even business partner. Of course, there are always exceptions, but as a general rule a purely business relationship will not work to anyone's satisfaction.

Some managers begin to learn that their style of management should be more relaxed than usual with Russians. The carrot usually works much better than the stick, because failure has much more meaning in Russia that in America. Among the lessons to be learned are:

• Let work and personal life intermix in a way that companies could never accept in the West;

• flexible schedules (for the right people) and birthday parties – even for partners and others outside the firm with whom the company works – are good ways of bringing a personal touch;

• аs much as possible, act on the basis of personal and not business relationships;

• and, if necessary, live with emotionalism as a part of it all.

This would sound terribly inefficient to most American managers. But most Russians are intelligent, well educated and hard working. If they need to feel more personally secure and involved than most Americans to do their jobs well, so what?

6.9 Marketing and Advertising

Marketing concept includes various elements such as planning, research, new product development, sales, communications, advertising, etc. Marketing starts with production and later studies all its stages before, during and after production. In the sales area, marketing provides information about forward demand for the company's products or services, helps to find and promote demand for products and services.

Advertising is an important element of the marketing plan. It is used to increase sales by making the product or service known to a wider audience, and by stressing its superior qualities. A company can advertise in many ways, depending on how much it can spend on advertising. The different media for advertising include television, radio, newspapers, magazines and direct mail, by which advertisers send letters, brochures and leaflets directly to potential customers.

Advertising is a highly developed business. A lot of money is spent on advertising in every country.

Marketing planning is an integral part of the marketing mix and it depends on a thorough situation analysis.