PATTERNS IN MARKETING PRACTICES OF RUSSIAN COMPANIES ACROSS FOUR FINANCIAL GROUPS

A.Grigoriev,Darya Lagutaeva,Olga Tretyak 글로벌지식마케팅경영학회 2016 Global Marketing Conference Vol.2016 No.7

This paper broadly addresses the development of optimal marketing budget allocating among firms in the Russian market and applies methodologies produced by the contemporary marketing practices (CMP) project (New Zealand, the university of Auckland). From that project, it would seem that there are two separate paradigms that distinguish modern firms, namely a transactional approach and a relational approach. In a transactional type, the marketing campaign depends entirely upon closing the sale, based on a marketing miх or 4P conception. Relational marketing is based, rather, on a long term relationships with the customer, and it is generally typical of B2B markets where a limited number of companies try to develop customer’s loyalty due to the strong competition. Using marketing practices according to these two paradigms in Russia as an emerging market, however, reveals a difficulty in determining how to apply the CMP method to businesses: how is firm efficiency in these markets associated with one paradigm or the other? Is the situation in Russia typical for transition or emerging markets, or is it closer to that of advanced market economies, and which patterns in marketing practices do companies from different financial level prefer? Finally, how can firms use this approach to optimize marketing resources allocation? These questions were not resolved by the CMP project, yet they are critical for understanding the evolution of firms in transition countries such as Russia. The theoretical understanding in the literature shows a general cross-country relationship between marketing practices and firm efficiency. It is generally admitted that marketing creates value for a company, e.g. by analyzing customer database, selecting profitable clients segments, activities of the company, choosing an appropriate business model and strategic direction of the company. These are some of the most prominent reasons why marketing and company’s revenues are closely connected (Doyle, 2000; Rust et.al. 2004). The literature on marketing practices additionally identifies several regularities for developed and emerging markets: 1. Increased effectiveness can be achieved primarily by using database technology: switch marketing attention from markets to customers (individuals) and analyze clients flow. (Sheth and Sisodia, 2002; Rust and Chung, 2006) 2. Markets should be aimed not only at the customer acquisition but also at the customer retention. (Sheth and Sisodia, 2002) 3. Marketing is mostly characterized by delayed effect in time, implying companies should relate marketing activities with longer term effects (Dekimpe, Hanssens, 1995). 4. The consumer-company interrelation influence on the cumulative level of the marketing assets of the company. (Reinartz and Kumar, 2002)

ECONOMIC ANTECEDENTS OF LOW CUSTOMER ORIENTATION LEVEL OF FIRMS IN THE BRICS: PRELIMINARY HYPOTHESES

Nikita I. Popov,Olga A. Tretyak 글로벌지식마케팅경영학회 2014 Global Marketing Conference Vol.2014 No.8

This research is aimed at finding the economic antecedents of comparatively low level of customer orientation of the firms in the BRIC countries. To generate propositions regarding antecedents, the market environment and conditions for doing business, and management practices and entrepreneurial activity in BRICs are compared based on the cross country studies by the World Economic Forum, the World Bank and the Global entrepreneurship monitor consortium. Also the conclusions regarding the consumer products markets and firm market strategies in emerging countries are generated on the basis of academic literature review in comparative strategic management and expert views on management in emerging countries. The outcome of the research is a group of propositions on the economic determinants of gaps in the level of customer orientation between the developed and the emerging markets. Three potential causes of the comparatively low customer orientation related to the management practices of firms can be hypothesized. First, the level of business management sophistication in the BRIC countries is assessed to be lower compared to the developed countries. Second, the state capitalism, the dominant economic paradigm of the BRIC countries is not conducive to fostering the quality of business management. Third, local entrepreneurs enter the markets being necessity-driven and have relatively low capabilities and are less skilled in the application of the modern management practices. The development of markets in the BRIC countries also could be informative for explaining the relatively low average level of customer orientation of the emerging market companies, and one can infer three potential causes. First, the consumer markets in the BRICs are growing with a fast pace, so suppliers are more powerful than consumers. Second, the intensity of competition at the BRIC markets is comparatively low. Third, the emerging markets today are represented by the less demanding consumers, and on such markets mass marketing might be a winning strategy. Further study could potentially allow us to improve and test empirically the above formulated propositions regarding the sources of gaps in the level of customer orientation between the companies of the developed and emerging markets.

ECONOMIC ANTECEDENTS OF LOW CUSTOMER ORIENTATION LEVEL OF FIRMS IN THE BRICS: PRELIMINARY HYPOTHESES

Nikita I. Popov,Olga A. Tretyak 글로벌지식마케팅경영학회 2014 Global Marketing Conference Vol.2014 No.7

This research is aimed at finding the economic antecedents of comparatively low level of customer orientation of the firms in the BRIC countries. To generate propositions regarding antecedents, the market environment and conditions for doing business, and management practices and entrepreneurial activity in BRICs are compared based on the cross country studies by the World Economic Forum, the World Bank and the Global entrepreneurship monitor consortium. Also the conclusions regarding the consumer products markets and firm market strategies in emerging countries are generated on the basis of academic literature review in comparative strategic management and expert views on management in emerging countries. The outcome of the research is a group of propositions on the economic determinants of gaps in the level of customer orientation between the developed and the emerging markets. Three potential causes of the comparatively low customer orientation related to the management practices of firms can be hypothesized. First, the level of business management sophistication in the BRIC countries is assessed to be lower compared to the developed countries. Second, the state capitalism, the dominant economic paradigm of the BRIC countries is not conducive to fostering the quality of business management. Third, local entrepreneurs enter the markets being necessity-driven and have relatively low capabilities and are less skilled in the application of the modern management practices. The development of markets in the BRIC countries also could be informative for explaining the relatively low average level of customer orientation of the emerging market companies, and one can infer three potential causes. First, the consumer markets in the BRICs are growing with a fast pace, so suppliers are more powerful than consumers. Second, the intensity of competition at the BRIC markets is comparatively low. Third, the emerging markets today are represented by the less demanding consumers, and on such markets mass marketing might be a winning strategy. Further study could potentially allow us to improve and test empirically the above formulated propositions regarding the sources of gaps in the level of customer orientation between the companies of the developed and emerging markets.