Anna D. Kukharuk,

cand. of sciences in economics, senior lecturer,

department of international economics, faculty of management and marketing,

Danyil D. Zmitrovych,

4^th year student of faculty of management and marketing,

National technical university of Ukraine "Kyiv polytechnic institute", Ukraine

PROBLEMS OF FUNDING UKRAINIAN INDUSTRIAL ENTERPRISES’ MARKETING ACTIVITY

Topicality of research is justified by the importance of financial resources reserve to conduct marketing activities under economic and political crises - the period of radical changes in functioning of economic system. The ability of companies use marketing tools effectively on time affects on company’s market position and vector of its further development as a whole.

The study aims to clarify and summarize the problems of financing the marketing of industrial activities to form the theoretical basis for further research concerning the effectiveness of marketing tools in business.

Based on the nature of the marketing management [1], it is fair to say that identifying and summarizing the problems of funding the marketing activities of the enterprise covers such items as studies of the functioning of the market, organization of the sales and promotion of company’s products (services), product and price policy of the company, organization of marketing service etc.

According to [2] at the end of 2014 the total number of businesses of all sizes and types of activities, except individual entrepreneurs, budget institutions and the banking sector, amounted to 341 ths., 12.4% are industrial enterprises, 95.2% of them are small and micro companies. Study results obtained are relevant to small enterprises.

Analysis of the industrial enterprises of Ukraine, scientific sources and official statistics [2] made it possible to distinguish three main groups of problems of funding the marketing of ukrainian small enterprises.

Operational problems, or unprofitable operations. Medium and large businesses are more economically resistant, therefore small companies are the first to respond to any change of the environment, including the crisis. Lack of financial resources and a large rate of borrowed funds in the capital structure significantly complicate the stabilization of the business processes, therefore it is difficult to earn and the optimum amount of profit from sales of products and services. The above mentioned affects the ability to create financial reserves as a result of profit distribution. Thus, there is a gradual reduction of the marketing budget of small businesses.

Methodological problems. Financial planning and determination of the required amount of financial resources for the next period – processes based on previous evaluation of results of activity. One aspect of this assessment is return of expenses for marketing activities. The algorithm of evaluation includes a number of procedures covered in [3, c. 19]. Due to the fact that it is difficult to calculate the economic effect of marketing costs, and the number of factors influencing the extent of the effect is significant, often funding of marketing activities planned is not justified due to scientific and methodological points of view.

Managerial problems. According to [4, c. 58] the company is able to operate with their own funds (if their share in the capital structure is over 75%), borrowed resources (if this amount does not exceed 60% of total assets), and on the basis on the mixed financing (the equable distribution of its own and borrowed funds). The main problem for the manager here is to justify apportionment of resources for funding from various sources.

The study solved the task of specifying the content of problems of financing the marketing of industrial enterprises’ activities. The solution to these problems is strategic task for small businesses.

Given the content of problems mentioned above, it is possible to determine the following specific tasks aimed to their solution:

- to rationalize the distribution of profits from sales of products and services in the reporting period;

- to develop methods of evaluation the effectiveness of marketing activities which able to provide representative values;

- to analyze the advantages and disadvantages of various funding sources for a particular company and to make reasonable choice of optimal one.

References:

1. Rayko D.V. Model of marketing management in management system of industrial enterprise / D.V Rayko, L.E. Lebedeva // Marketing and Management of Innovations. - 2015. - № 1. - pp. 107-123.

1. Number of enterprises by size of economic activity in 2014 / Economic activity: statistician. info [electronic resource]. - The official website of the State Statistics Service of Ukraine. - Access: http://www.ukrstat.gov.ua/.

2. Melenchuk J.T. Theoretical and methodological approaches to evaluating the effectiveness of marketing of enterprises / J.T. Melenchuk // Technology audit and production reserves. - 2015. - № 1/6 (21). - pp. 18-21.

3. Brazhnyk L.V. Sources of financing entities of enterprises / L.V. Brazhnyk, I.A. Ralko, V.A. Yaloveha, V.A. Zavalevska // Proceedings PDAA. - 2013. - Vol. 1 (6). - P. 57-62.