Tran.T.T.T

 

Odessa National Polytechnic University, c.Odessa

 

Features defining the essence of marketing costs

 

Marketing costs take a larger part of the total cost of each enterprise. The effect from marketing activities directly affects the production and sale of products in the market. However, the lack of a common and clear definition of this concept even in the legislation makes it difficult to research and analyse.

In paragraph 19 of P (S) BU 16 "Expenses on sales" with a list of all cost elements, which include the following costs associated with the implementation of the (sales) of goods (products, works, services) [1]:

       cost of packaging materials for packing of finished goods in warehouses of finished products;

       costs for the repair of containers;

       salaries and commission bonuses to sellers, sales agents and employees of offices providing sales;

       costs of advertising and market research (marketing);

       costs of pre-sale preparation of goods;

       travel expenses of employees engaged in marketing;

       costs of maintaining fixed assets, other tangible fixed assets associated with the sale of products, goods, works and services (operational leasing, insurance, depreciation, repairs, heating, lighting, security);

       costs of transportation, handling and insurance of the finished products (goods), freight forwarding and other services related to the transportation of products (goods) in accordance with the terms of the contract (basis) of supply;

       costs of warranty repair and services;

From this list, we could see that, firstly, "marketing costs" occupies only a small portion of many elements in the sales expenses. Secondly, what we see in those paragraphs, may not show the essence and features of these costs.

The ambiguity of this concept is an opportunity for research scientists to express their opinions and to give a clear statement. There are different approaches to the definition of the enterprise marketing expenses, which are presented in Table 1.

 

Table 1 - Some concepts of marketing costs

Author

The concept of "marketing costs"

Tax Code of Ukraine

[2]

the cost of services in placing of the products of the taxpayer at the points of sale, services for the study, research and analysis of consumer demand, the introduction of goods (works, services), the taxpayer databases of sales, services for the collection and dissemination of information about products (works, services)

G.L Bagiev, M.Tarasevich B., H. Ann [3, P. 216]

the totality of the costs necessary to carry out marketing activities and marketing events on the formation and reproduction of demand for goods and services.

Chaykovska І.V., Plotnikov SV, Pochernin VM [4, P. 47]

it is the aggregate cost of the enterprise on the analysis of market opportunities, developing a set of marketing events,

their embodiment in the life of the control of marketing

Feder R.A [5, 47]

costs associated with the sale of goods (such as advertising, the seller’s commission) or distribution (for example, transport costs); this is one of the types of operational and time expense.

Piercy N. [6, P. 5]

funds that  the company spends on advertising and marketing.

Pritichenko T.I, Rudenko Y.V [7]

enterprise means accompanying the analysis and realization of marketing technologies directed towards the development of brand product / service, sales staff, the company as a whole and capable of gross profit growth.

J.L Thomas T. Nagle [8,9]

the totality of costs, which are necessary for the implementation of marketing activities and marketing events for the formation and reproduction of demand for goods and services

Egorov S.E, Volkova O.A [10]

These costs ensure the realization of goods having an investment character, which can bring a lot of revenue in the future

Bakhareva Y.V [11]

It is the aggregate of all expenses of the enterprise, necessary for the implementation of marketing activities

 

Looking at the work of scientists of the above, we can conclude that there are different opinions about the concept of marketing expenses. They are as follows:

       complement and define the theoretical concept of "marketing costs" on the basis of legislation or a personal research each author;

       clarify the economic substance of marketing expenses;

       each of these conclusions gives different views on the composition of the marketing costs.

 Thus, according to our opinion, the marketing expenses include the nature of operating expenses that are directly related to the production activities and sale of products on the market. The importance of these costs for the company's development is obvious therefore, it is necessary to create a system of management of account of these costs, suitable for each company according to their scale.

 

References

1.Положение (стандарт)бухгалтерского учета 16 «Расходы на сбыт», утв. пр. От 31 декабря 1999 г.  № 318 [Электронный ресурс] : электронный портал «Закон2». – Режим доступа http://zakon2.rada.gov.ua/laws/show/z0027-00

2. Налоговый кодекс Украины (с изменениями, внесенными согласно Закону N 2856-VI (2856-17) от 23.12.2010). Содержание и основные комментарии: Пособие. Часть 1 [Tекст]. - Полтава: РИО ПДАА, 2011. - 299с

3. Учебник для вузов / Г. Л. Багиев, В. М. Тарасевич, X. Анн; Под общ. ред. Г. Л. Багиева. — 2-е изд., перераб. и доп. — М.: ЗАО «Изд-во "Экономика"», 2001. — 718 с.

4. Быковская И.В. К вопросу о формировании маркетингового бюджета / И.В. Быковская, С.В. Плотников, В.М. Подчернин // Маркетинг в России и за рубежом. - 2001. - № 6 (26). - С. 46-52.

5. Feder R.A. How to Measure Marketing Performance // Harvard Business Review. – 1965. – No. 3 May-June. – S. 132 – 142.

6. Piercy N. Marketing Asset Accounting // European Journal of Мarketing. – 1986. – Vol. 20, No. 1. – S. 5 – 15.

7. Притиченко Т.И.,Руденко Ю.В «подходы к определению расходов на маркетинг» электроные ресурсы : http://repository.hneu.edu.ua/jspui/bitstream/123456789/4441/1.pdf

8. Ламбен Ж.-Ж.Стратегический маркетинг. Европейская перспектива : Учебник /Ж.-Ж.Ламбен : – Пер. с фр. – СПб.: Наука,1996. – 589 с.2.

9. Нэгл, Томас Т. Стратегия и тактика ценообразования: Руководство по принятию решений, приносящихприбыль : пер. с англ. / Томас Т. Нэгл ; Пер. О. Игнатенкова, Ю.Н. Каптуревский .

10. Егорова С.Е.,Волкова О.А «анализ эффективности и аудимаркетинговой дестельности» [Электронный ресурс] Режим доступа : http://www.auditfin.com/fin/2010/1/03_04.pdf

11.  Подходы к маркетинговому бюджетированию и их влияние на оценку эффективности маркетинговых затрат. » [Электронный ресурс] Режим доступа http://nbuv.gov.ua/j-pdf/Oif_apk_2013_2_19.pdf