Pylypenko D.R.
Simon Kuznets Kharkiv National
University of Economics, Ukraine
MARKETING SUPPORT OF MANAGEMENT ORGANIZATION OF THE INTEGRATED CORPORATE
LOGISTICS SYSTEMS
Current economic conditions are
characterized by the expansion of integration trends role and the emergence of
various kinds of associations. The management organization of such associations
requires considering simultaneous of the two concepts which are widely
represented in the scientific literature but are in not full consensus with each
other. According to the first concept the matter of the enterprise logistics
system is being transformed and expanded into integrated chains of value
creating. The second concept is related to more significant reorientation of marketing
systems towards support of cooperation and interaction with a narrower range of
consumers.
The basis of each of these concepts has been formed by the objective processes
such as reducing time horizon planning, organizational boundaries blurring,
restructuring of enterprises, fundamental and radical restructuring of business
processes, expansion of interaction with competitors and the work activation with
subcontractors, the introduction of new information and communication technologies
and etc. These tendencies call for providing
synchrony and support of high performance of all commodity flow participants. According
to the opinion of A. Rushton, P. Crowther and P.Wacker it is possible only on
the basis of the logistics methodology [8, p.5 22] or, according to the opinion
of Handfield R. and E. Nichols, on the
basis of the introduction of supply chains management system [2, p.23]. It
should be noted that the logistics management pays more attention to optimizing
the flow within the organization, while supply chain management is carried out
basing on the idea that internal integration alone is not sufficient [1, p.27].
Accordingly, it is necessary to take into account
the opinion of D. Seifert [9]. This author claims that now the conventional is view,
according to which there are three main ways of organizing economic activity
(hierarchy, market and network) and there takes place a gradual transition to
market transactions, that develops within long term relationships. At the same
time, as a part of approaches focused on creating, maintaining and developing
long-term partnerships, marketing plays the main integration function. Its
main objective is to find effective partners in the market, ways of interaction
with them for common resources consumption, finding competitive advantages, the
managing of market relations portfolio through the adaptation to the partners
in accordance with established agreements on cooperation and partnership.
The first work on partnerships marketing
were focused on dual relationships of enterprises [3], the loyalty analysis of
customers selected by companies [7] or cooperative interaction while carrying
out joint financial classic market researches [4]. Later researchers covered
the wide range of network relations and there were formed several approaches to
determining marketing of relationships: British, North American, European and
German approaches [5]. The main difference
between the approaches is various scope of marketing relationships and
differences in the procedures of interaction analysis. In our opinion, the most appropriate is to determine
the partnerships marketing as a continuous process of identifying and creating
new values with individual consumers, and then joint receiving and dividing
benefits of this activity between the parties of interaction [6, p.20] .
Analyzing
this interpretation it is fair to say about increasing of the consumer role and
transition from consumer manipulation to forming genuine consumer interest
(communication and knowledge sharing); focus of process of installation,
support and development of relationships with customers and other partners for
achieving common goals; focus on analysis, planning, realization and control
measures which cause, stabilize, strengthen and renovate business relationship
with stakeholders of corporations, mainly with consumers, and focus on the creation of mutual value in the course of
these relations; support and development of a network with individual customers
for mutual benefits through interaction, individualization for a long time.
So with regard to the relevance of the two mentioned
concepts their combination could be offered, in this case we obtain a set of
partnerships and value creating chain. At the same time it is proposed to introduce
certain limitations that should be taken into account while organizing the logistics
chain management: the only entity that invests in the supply chain is the final
consumer who decides to purchase the product; support of stable logistics
system functioning can only be provided when all members of the supply chain
receive additional income from their cooperation; supply chain management consists
of ensuring favorable conditions for
creating additional value. Thus, the main goal is such positioning of companies
in the supply chain, which allows them to provide the highest level of consumer
satisfaction and value in use in conditions of effective use of the competencies
of all organizations participating in this supply chain.
The concept of partnerships marketing allows to
determine two aggregate levels related to the relationship with the
end-consumer (loyalty programs) and relationships with partners in the middle
of the logistics value creating chain. In this context it is arguable that the
second level of partnerships marketing in some ways is related to institutional
theory and the interaction fields, proposed by N. Fligstein [10], in which actors
with different organizational capacities are building their behavior with each
other.
It should be noted that marketing partnership has
considerable integrating property. Thus, if the formation of the logistics
value creating chain takes place without regard to marketing principles, as a
rule membership of the logistics system is formed by accident, chains can be
excluded heedlessly, the importance of presence of the individual chains, that
correspond to successive technological stages of customer satisfaction, is
underestimated. So in order to expand customer relationship firstly it is
necessary to decide: what type of customers is proposed to attract, what type
of customers’ future benefits are related to, what type of new consumers is
likely to be interested in the company products?
In the context of interaction prolongation
the actual are questions of determining the type of customers that should be kept,
defining those who provide the greatest profits or those who can go to the
competitors and identification of dissatisfied clients. The developing of relationships
also requires posing specific questions, such as: interaction with what customers
can create added value, what products can attract and interest specific
customers, what products are being bought in conjunction with others?
Taking
this into account analytical assurance of developing loyalty programs deserves
more detailed consideration. One of the most common methods is the method
"sales funnel" (it breaks logistic process in stages, each of which
affects the final volume of sales and determines prospects) and another common
method is the customer classification method MEANACTS (abbreviation that means:
money, emotions, authority, need, areas of uniqueness, competition, timescale,
scale). It is also possible to carry
out the surveys concerning the assessment of various attributes of the proposed
product. Along with that it is worth to mention its certain limitation, caused
by the subjectivity of expert opinion or own preferences of consumers in focus
groups. That is why it is proposed to ground the selection of consumers in
order to establish partnerships on building dynamic loyalty models that will
determine the dependence between the fluctuations of behavior loyalty level and
identifying by the company some of its determinants. For this it is may be used
methods of correlation and regression analyze (e.g. dependence between the
level of consumer commitment and the certain components of the loyalty program or
attributes of the proposed goods).
Moreover
it is proposed the widely use of matrix methods, specifically the construction
of matrices "number of customers - the duration of cooperation",
" procurements dynamics - customer satisfaction", "loyalty type
- loyalty components", "the product - the market - the
customer", "satisfaction - loyalty "and then on the basis of the
matrix to identify strategic alternatives of the company development and customers
selection. It makes sense to base the obtaining of numerical values to
determine the quadrant matrix on the fuzzy information processing methodology
and set theory. With similar methods it is possible to conduct internal
consumers rating.
In
summary, it is proposed to reduce the uncertainty and the negative impact of
the market environment, to improve competitiveness and operating effect of the
company, to engage it into participation in the logistics value creating chains
and to form institutional interaction fields based on the concept of marketing
partnerships.
Along with that, such approach requires
further researches in two directions, which is theoretical justification of ways
of building a separate company management system, acting within the integrated
value creating chain, and management organization of enterprise logistics
system. Also, it is necessary to detalize the possible types of relations in
the marketing system and to set in accordance with tem the multi-objective problem
of loyalty program optimization.
References:
1. Christopher Ì. Logistics & Supply Chain
Management. – London: Financial Time Prentice Hall,
2011. – 288 p.
2. Handfield
R.B. Supply Chain Redesign. Transforming
Supply Chains into Integrated Value Systems / R.B. Handfield, E. L. Nichols. –
Prentice Hall PTR, 2003. – 398 ð.
3. Håkansson H. International Marketing and Purchasing of Industrial Goods.
– New York: JOHN WILEY & SONS, 1982. – 415 p.
4. Hollensen S. Marketing Management: A Relationship
Approach. – London: Financial Times Prentice Hall, 2010. – 698 p.
5. Kennedy
K.N. Implementing a Customer Orientation: Extensions of Theory and Application
/ K.N. Kennedy, J.R. Goolsby, E. Arnold // Journal of Marketing. – 2003. – ¹4.
– Ð67-81.
6. Kotler P. Marketing Management (14th Edition) / P.
Kotler, K. Lane . – London: Prentice Hall, 2011. –812 p.
7. Parker B. Introduction to Globalization and Business: Relationships
and Responsibilities / Barbara Parker. – London: SAGE Publications, 2005. – 537
p.
8. Rushton A. The handbook
of logistics & distribution management / A. Rushton, P. Croucher, P. Baker. –
London: Cogan Page, 2010. – 664 p.
9. Seifert D. Collaborative planning, forecasting, and
Replenishment: How to Create a Supply Chain Advantage. – New Yourk: AMACOM, 2003. – 432 p.
10. Flingstein N.
Institutional Process and Organizational Fields [electronic resource]. – access
mode: http://www.sagepub.com/upm-data/56770_Chapter_8_Scott_ Institutions_and_Organizations_4e_2.pdf