Научная статья на тему 'Investigation of relationship marketing in the franchising activity of trade companies'

Investigation of relationship marketing in the franchising activity of trade companies Текст научной статьи по специальности «Экономика и бизнес»

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Ключевые слова
ПіДПРИєМНИЦТВО / ТОРГіВЛЯ / ДИСТРИБУЦИЯ / ДИСТРИБУЦіЯ / DISTRIBUTION / ПАРТНЕРЫ / ПАРТНЕРИ / PARTNERS / ФРАНЧАЙЗИНГ / FRANCHISING / МАРКЕТИНГ ВЗАИМОДЕЙСТВИЯ / МАРКЕТИНГ ВЗАєМОДії / PARTNERSHIP MARKETING / УЗГОДЖЕННЯ іНТЕРЕСіВ / ЕФЕКТИВНіСТЬ / ЭФФЕКТИВНОСТЬ / EFFICIENCY / УСТОЙЧИВОЕ РАЗВИТИЕ / СТАЛИЙ РОЗВИТОК / SUSTAINABLE DEVELOPMENT / ПРЕДПРИНИМАТЕЛЬСТВО / ENTREPRENEURSHIP / ТОРГОВЛЯ / TRADE / СОГЛАСОВАНИЯ ИНТЕРЕСОВ / COORDINATION OF INTERESTS

Аннотация научной статьи по экономике и бизнесу, автор научной работы — Lisun Y.

The article reveals the essence and constituents of the concepts of «relationship», «interaction», «marketing relations», «marketing partnership», «partnership» of the trade business. The essence of the terms «distribution» and «franchising» is investigated and the place of franchising in the structure of organizational and legal forms of distribution systems is determined. It analyses the activity of trading companies and the franchising market of Ukraine is conducted. The article analyses main strengths and weaknesses of franchising activity are summarized with the use of SWOT analysis, which makes it possible to clarify the nature of the partnership relations in the franchising business. The article shows that relationship marketing is a mechanism for the development of business entities based on the integration of basic functions, partnerships and corporate interests. Franchising framework consists of various forms and principles of cooperation, ranging from the simplest, which consists in the distribution of franchisor goods using its brand and trade standards, to the most complex form of cooperation, which consists in proposing an entire franchise system. It analyses the segmentation of franchises in the field of trade on the basis of such features as investments, the cost of a franchise, the payback period, the number of staff, technological requirements for doing business, which makes it possible to clarify the degree of manifestation (saturation) of the partnership.

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Текст научной работы на тему «Investigation of relationship marketing in the franchising activity of trade companies»

2S. Zalunina, O. M. Construction of aggregates of features of the building complex of the territory for conceptual grouping scheme [Text] / O. M. Zalunina // Eastern-European Journal of Enterprise Technologies. - 2014. - Vol. 4, No. 3 (70). -P. 29-33. doi:10.15587/1729-4061.2014.26278

29. Zalunina, O. M. Postroenie kontseptual'noy skhemy grup-pirovki oblastey Ukrainy po makroekonomicheskim parametram v stroitel'nom sektore [Text] / O. M. Zalunina // Problemy ekonomiki. - 2014. - Vol. 4. - P. 91-96.

30. Zalunina, O. M. Determine the relationship of industries related to regional development [Text] / O. M. Zalunina // Technology Audit and Production Reserves. - 2015. - Vol. 1, No. 7 (21). - P. 8-12. doi:10.15587/2312-8372.2015.38434

31. Zalunina, O. M. The economic dimension of management decisions in the building industry [Text] / O. M. Zalunina // ScienceRise. -2015. - Vol. 9, No. 1 (14). - P. 42-46. doi:10.15587/2313-8416.2015.50512

32. Zalunina, O. M. Formation of optimal production scale of building materials [Text] / O. M. Zalunina // Technology Audit and Production Reserves. - 2016. - Vol. 1, No. 3 (27). -P. 45-49. doi:10.15587/2312-8372.2016.60447

33. Zalunina, O. M. Construction of complex index for evaluation of investment attractiveness of building projects [Text] / O. M. Zalunina // ScienceRise. - 2016. - Vol. 5, No. 1 (22). -P. 41-45. doi:10.15587/2313-8416.2016.69662

34. Zalunina, O. M. Formation of condition severity index of the industrial-building systems [Text] / O. M. Zalunina // Technology Audit and Production Reserves. - 2016. - Vol. 2, No. 5 (28). - P. 38-42. doi:10.15587/2312-8372.2016.65971

35. Zalunina, O. M. Formuvannia bahatorivnevoi systemy pokaz-nykiv vymiru dobrobutu naselennia [Text] / O. M. Zalunina, V. V. Druzhynina, N. F. Aleksieieva // Aktualni problemy eko-nomiky. - 2017. - Vol. 4 (190). - P. 100-112.

36. Zalunina, O. M. Prioritety informatsionnogo polya, ispol'zuemye v upravlenii predpriyatiem [Text] / O. M. Zalunina // Nau-koviy visnik Uzhgorods'kogo natsional'nogo universitetu. Se-riya «Mizhnarodni ekonomichni vidnosini ta svitove gospo-darstvo». - 2016. - Vol. 6. - P. 132-135.

ФОРМИРОВАНИЕ 6Л0К0В КАТЕГОРИАЛЬНОГО АППАРАТА СТРОИТЕЛЬНОЙ ОТРАСЛИ

Проанализирован зарубежный опыт по вопросам развития строительной отрасли. Классифицированы существующие подходы к понятию строительная отрасль. Предложено рассматривать строительную отрасль как детенсивную экономическую систему в строительстве, объединяющую деятельность совокупности предприятий и производств, обладающих признаком ресурсного единства. Сформированы блоки категориального аппарата, включающие промышленный, отраслевой, управленческий и социальный подходы.

Ключевые слова: строительная отрасль, строительный комплекс, строительные организации, строительство, блоки.

Zalunina Olga, PhD, Associate Professor, Department of Management, Kremenchuk Mykhailo Ostrohradskyi National University, Ukraine, e-mail: olvialavina@gmail.com, ORCID: http://orcid.org/ 0000-0002-7478-4528

UDC 339.187.144 DOI: 1G.15587/2312-8372.2G17.113283

lisun y. INVESTIGATION OF RELATIONSHIP

MARKETING IN THE FRANCHISING ACTIVITY OF TRADE COMPANIES

В роботi автором уточнено сутнкть та складовi понять «маркетинг вкдносин», «маркетинг взаемодп», «партнерство» в торговельному пiдприeмництвi. Дослгджено суттсть термту «дистрибущя» та «франчайзинг» та визначено мкце франчайзингу у структур'1 оргатзацш-но-правових форм дистрибуцшних систем. Узагальнено сильт та слабт сторони франчайзинговоï дiяльносmi з використанням SWOT-аналiзу.

Kлючoвi слова: пiдприeмницmво, торгкля, дистрибущя, партнери, франчайзинг, маркетинг взаeмодiï, узгодження ттереск, ефективнкть, сталий розвиток.

1. Introduction

In dynamic competitive conditions, the marketing aspect of mutual relations and interaction of companies becomes especially important, since it is marketing that integrates the goods and services of the company, their perception by consumers, location and promotion, taking into account the actions of competitors and business partners. The theoretical and methodological aspects of marketing relationship of trade companies operating on the basis of franchising require further study.

2. The object of research and its technological audit

The author researches the marketing aspect of mutual relations and interaction of companies, since it is marketing

that integrates the goods and services of the company, their perception by consumers, place and promotion, taking into account the actions of competitors and business partners. Further theoretical and methodological aspects of relationship marketing of trading companies operating on the basis of franchising have been obtained. Scientific research is aimed at clarifying the essence and components of relationship marketing in the field of trade and determining its features, due to the technology of franchising.

3. The aim and objectives of research

The aim of the article is investigation of the theoretical and methodical aspects of relationship marketing in supply chains in the implementation of commercial entrepreneur-ship on the basis of franchising. Achieving the aim of research necessitated the solution of the following tasks:

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1. To conduct a comparative analysis of the essence of the concepts of «relationships», «interaction», «relationship marketing», «marketing interaction», «partnership» in commercial entrepreneurship.

2. To explore the essence of the term «distribution» and «franchising» and define franchising in the structure of organizational and legal forms of distribution systems.

3. To monitor the activities of trade companies and the franchising market in Ukraine.

4. To summarize the strengths and weaknesses of franchising with the use of SWOT analysis, in order to clarify the nature of partnerships in trading companies operating on the basis of franchising.

5. To carry out the segmentation of franchises in the sphere of trade on such criteria as investment, the cost of the franchise, the payback period, the number of personnel, technological requirements for doing business, in order to clarify the priority of the manifestation of partnership relations.

4. Research of existing solutions of the problem

The competitive environment raises requirements to the quality of products and customer service, requires a purposeful and systematic formation of loyal consumer demand. In this connection, the issues of mutually beneficial cooperation, strategic partnership, construction of activities based on relationship marketing acquire the topicality [1, 2].

The questions of relationship marketing are investigated by domestic scientists and scientists from the near abroad [3-8]. Marketing, logistics, commercial, technological aspects of distribution and the activities of trade companies are investigated in [9-17].

The works [18, 19] are devoted to investigations of the relationship marketing and interaction in supply chains, as an important component of trading activity. The problems of distribution, inter-channel and intra-channel cooperation are covered in the work [20]. The work [21] is devoted to the issues of relationship marketing in supply chains.

Relationship marketing ensures the construction and regulation of processes in the management system in order to ensure the maximum satisfaction of the interests of all partners at the expense of personal, individualized continuous contacts [6, 7]. In this aspect, franchising as one of the effective forms of business relations in entrepreneurship, enhances the achievements and advantages of relationship marketing, acting as a platform for its implementation.

Theoretical aspects of franchising, the construction of network franchise structures, the formation of franchising relationships and their regulatory support are studied in the works of domestic and foreign scientists [22-27].

In providing competitive advantages in a series of trades, it is not only the advantageous price of an integrated trading offer that is of decisive importance, but also the increase in the value of the trade offer for consumers. Therefore, further research requires aspects of both the relationship marketing in supply chains and the overall marketing of interaction in the franchising activities of trade companies.

5. Methods of research

The methodological basis of the research is a set of scientific methods of dialectical and comparative analysis, synthesis, grouping and generalization. The basis of quantitative re-

search results is the official information of the State Statistics Service of Ukraine and the data of the Franchise Group.

The methodological essence of the research results is that relationship marketing in supply chains is considered as an identification tool and increasing the value of the potential aggregate proposition of supply chains for the segment and the specific consumer, the mechanism for effective implementation of such proposition, and ensuring the value of strategic relationships. Integration of relationship marketing and supply chain management of trade companies is interpreted in the concept of demand chain management, based on a purposeful systematic formation and increase in value for the end user. This approach contributes to addressing the issues of increasing the price of an integrated supply and its value to consumers.

6. research results

The analysis of literary sources testifies to the lack of an unambiguous approach to the interpretation of the essence and content of the concepts of «mutual relations» and «relationship».

A number of scientists (V. Cherenkov) treats the term «relations» from the standpoint of the resource approach, as reserve opportunities or resources in the idle state [6, 28], emphasizing the difference in the term «interaction» that consists in the action of the elements on each other, the result of which is the creation new quality elements.

Other scientists hold diametrically opposite opinions, noting that the essence of the term «relation» («relation marketing») is not contradicting the term «relationship» («re-lationship marketing») and treat them as synonyms. That is, relationships are considered as «a category reflecting certain systemic processes of the action of elements on each other, their mutual conditioning and generation by one subject to another. Relationships in any system are an objective and universal form of its movement and development through the appropriate links between the relevant elements. They determine the existence and organization of any system» [6].

In our opinion, processes realized through appropriate links that do not involve a change in the quality of the object (properties of elements) are treated as «relation-ships». And the processes that cause a change in the quality of the object (the properties of the elements) cause the feedback of the object in the form of a change in its properties are treated as «interaction». That is, interaction is a «concentrated form» of active relationships [29-31].

Relationship marketing, in contrast to classical marketing, provides for the continuation of the process after the commission of an act of sale (exchange) in order to meet the needs (parties' goals) and the formation of long-term relationships with consumers and partners (stakeholders) involved in communications [30]. This is the place of marketing in the formation of partnership interaction (interdependent actions) of companies.

Relationship marketing is most revealing in the distribution, promotion and marketing of products. I. Mischuk and V. Lozinsky note that distribution «is a complex system in which a producer of products and various intermediaries are involved, which on a contractual basis jointly ensure the implementation of a set of activities for the promotion of products to the final consumer and sale» [15].

Distribution is the process of promoting goods to the final consumer with the involvement of distributors and

J

dealers, applying a single marketing and technology policy, approved by the supplier (manufacturer) [9].

The main organizational and legal forms of distribution systems are: a business company, a franchise network, a partner network, a purchasing group.

Investigating the sphere of franchising and relationship marketing, partnership is of key importance, which is expedient to understand as a kind of relations between different actors, the meaning of which is forming a unified position on certain issues and organize joint actions. When implementing a partnership in the sphere of trade, in the process of interaction between the buyer and the seller, the main components are the contract, obligations, agreement, the right to conduct a pre-defined type of economic activity [30]. It is these concepts and categories that constitute the essence of franchising, as one of the organizational and legal forms of the distribution of their systems.

Franchising is advisable to understand «entrepreneurial activity on which, on a contractual basis, one party (the franchisor) undertakes to transfer to the other party (franchisee) for a remuneration for a certain period a set of exclusive rights to use the sign for goods and services, brand name, services, technological process and (or) of specialized equipment, know-how, commercial information protected by law, as well as other objects of exclusive rights (franchise) stipulated by the agreement» [27].

The activities of trade companies, in particular the distribution system in the sphere of commodity exchange,

function through the realization of such processes (supply chains) as: the order of goods, formation of stock of goods, storage and transportation, redistribution, packaging and transport technology. The main goal of supply chain management for franchising trading companies is to «... achieve the interests of participants in such chain by ensuring the economic efficiency of the material flow» [6].

This approach contributes to solving the issues of increasing the price of an integrated supply and its value for consumers, which is the essence of trading activity, the indices of changes in the main indicators of which are presented in Fig. 1.

The main structural indicators of trade companies are: the number of companies, volume of sales, number of employed workers.

When constructing a mechanism for marketing relationship of trade companies, it is necessary to take into account the following features (Table 2, Fig. 2):

- small companies (in particular very mills) account for the overwhelming majority - 97 %, accumulating 40 % of employed workers and forming 23.7 % of the volume of sold products;

- medium-sized companies account for 2.9 % of total employment, providing employment for 33.4 % of employees and forming 46.1 % of sales;

- large companies account for 0.1 %, accumulating almost a quarter (26.6 %) of employed workers and forming a third (30.2 %) of the volume of sales.

1.150

1.100 1.050-

0.9500.900-

0.8500.800-

\1129 >1.124

1.064 /

1.013 \ ■ .

ITWTP-^---' -0.993

0 930

^—~- 0.890

2011

2012

2013

2014

2015

1.150

1.100

1.050

0.950

0.900

♦ Number of companies —■—Number of employed workers —*— Volume of sales

fig. 1. Indices of the basic structural indicators of wholesale and retail trade companies (built by the author) [32]

Table 1

The main structural indicators of companies by their size by type of economic activity «Wholesale and retail trade; repair of motor vehicles and motorcycles» [32]

2010 2011 2012 2013 2014 2015

Number of companies, total 110154 111638 103798 110414 93972 93798

large companies, % 0.2 0.2 0.2 0.2 0.1 0.1

medium-sized companies, % 3.7 3.7 3.8 3.3 3.2 2.9

small companies, % 96.1 96.1 96.0 96.5 96.7 97.0

of them are very small, % 82.7 82.9 82.4 84.4 85.2 86.1

Volume of sold products, total 1406132.7 1587116.5 1623609.6 1612134.4 1629690.6 1831054.7

large companies, % 29.3 30.7 29.6 30.7 32.2 30.2

medium-sized companies, % 45.6 46.7 48.3 47.7 45.1 46.1

small companies, % 25.1 22.6 22.1 21.6 22.7 23.7

of them are very small, % 8.0 7.2 7.2 7.1 7.7 8.1

Number of employed workers, thous. 1241.1 1246.7 1193.4 1156.0 1015.2 903.4

large companies, % 21.1 22.1 25.2 27.4 27.7 26.6

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medium-sized companies, % 34.6 34.1 32.6 31.7 33.6 33.4

small companies, % 44.3 43.8 42.2 40.9 38.7 40.0

of them are very small, % 19.6 19.8 19.2 19.1 19.2 20.7

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Table 2

The main structural indicators of companies by their size by type of economic activity «Wholesale and retail trade; repair of motor vehicles and motorcycles» [32]

2010 2011 2012 2013 2014 2015

Number of companies, total 110154 111638 103798 110414 93972 93798

Financial result (balance), million UAH 14883.5 21591.5 9608.0 -6047.5 -128134.8 -86341.7

Share of profitable companies, % 62.5 66.7 66.0 67.2 66.7 76.0

Share of loss-making companies, % 37.5 33.3 34.0 32.8 33.3 24.0

The level of profitability (loss) 9.8 15.0 12.2 10.2 -12.8 -2.4

The number of franchisors Rate of change to the previous year

fig. 2. Dynamics of the number of franchisors for 2001-2014 [33, 34]

The development of partnership and relationship in the business environment is based on the use of various resources: material, technical, energy, personnel, information and unconditionally financial (Table 2).

The worsening of the general economic situation adversely affected the financial condition of the trade companies and led to the loss of wholesale and retail trade in the macroeconomic aspect: the financial result of 2015 amounted to 86341.7 million UAH and the level of profitability (loss) - 2.4 % [32].

At the same time, a positive phenomenon is the decrease in the share of loss-making companies for 2014-2015 from 33.3 % to 24 %. The level of losses of companies by 2015 - 2.4 % compared to the same indicator for the previous period - 12.8 % [32].

According to the Franchise Group, franchise objects predominate in business ownership in Ukraine: public catering - 75 %; retail - 77 %; services to the population -79 % [33, 34]. During the 2008-2014, the number of franchisors increased from 240 to 567 units; the number of franchising objects increased from 14.700 to 31.750 units; the number of international franchises and brands increased from 38 to 187 [33].

In total, franchisors who work in Ukraine, 425 companies are actively expanding their networks by opening their own and franchising facilities (Fig. 2).

According to the Franchise Group in the structure of franchising in Ukraine, the most developed is public catering, trade in light industry goods, car service and household services. In terms of price policy, franchises of household services are more accessible, and objects of

hotel and restaurant business and production make up the segment of expensive franchises.

7. SWOT analysis of research results

Using the SWOT analysis method, it is expedient to analyze the strengths and weaknesses, opportunities and threats of franchising of trading companies (Table 3, 4).

The processes of distribution, promotion and marketing of products at the levels of all participants of the franchise network are characterized by a number of differences in the control and coherence of policy in marketing, financial, organizational and managerial aspects (Table 4).

The franchise distribution system for light industry goods (clothing and footwear) is characterized by a low degree of partnership in the relations of the concerned parties, since the franchisor determines the conditions and principles of cooperation and franchisees cause little influence on the development of the network. Franchising in the sphere of clothing trade is more uniform in terms of the amount of investments (especially the segment «youth clothing»), personnel and technological requirements of doing business (Table 5).

So, in terms of the number of brands in the Ukrainian market, franchises predominate in the direction «Women's Clothing», «Women's and Men's Clothing». In second place by the number of brands are franchises in the direction of «Men's Clothing» and «Sportswear». The separate segments of the market is franchising for the sale of children's clothing and footwear.

Table 5

The segmentation of the franchise market in Ukraine in the sphere of trade (clothing and footwear) [33, 34]

Table 3

Opportunities and threats of franchising of trading companies [34, 35]

Opportunities Threats

1. Development of small and medium-sized business. 2. Development of logistics and distribution channels. 3. Development of a franchise network. 4. Development of marketing and advertising technologies. 5. Offers in the labor market for the selection of personnel. 6. Improvement of production and service technologies. 7. Expansion of cooperation with business partners in a single technological space. 8. Formation of long-term relations with stakeholders on the basis of relationship marketing 1. Increase in the cost of resources. 2. Decline in the purchasing power of consumers. 3. Change in the behavioral characteristics of the end user, fluctuations in demand. 4. Activation of competitors. 5. Improving the quality standards of goods and services. 6. Complications of legal support for the franchise network: little clear procedure for selection and selection criteria for network participants; Complications and approval of the terms of contractual relations

Trade name, market segment Investments, thousand UAH Payback period, months Staff, people Areas, m2

Women's clothing

TM Karen Millen (England) 800-1200 12-18 4 80

KRISSTEL TM 800-900 - 2-3 50-100

TM MAXA (Italy) 590-260 18-24 2-3 50-100

TM «Melio» («smart casual») 367 6-18 2 40-70

TM «Cat Orange» 150-350 6-12 - 50-100

TM «JHIVA» 95-100 6-8 3 60

Men's clothing

TM «Vaismann» (Germany) 880-1100 18-24 4-5 80-130

TM «VDone» («Vidivan») 550-1250 6-16 - 80-200

Men's and women's clothing

TM Tom Tailor (Germany) 1600-2000 24-36 5 120-350

TM «Top Secret» 500 18-24 - -

TM «GARSIA» 120-1000 36-48 3 70

TM Sella 600 24 - -

Youth clothing

TM OASIS 800-1200 12-18 4 80

TM «Pimkie» (France) 800-1200 24-36 4 80

TM «Rip Curl» (Australia) 800-1200 12-18 4 80

Sportswear

TM «BONA Sport» (Ukraine) 1000-1200 16-18 3 100-120

TM Columbia (USA) 324-600 12-24 10 100

TM KELME (Spain) 120-800 12-18 4 80

TM «Trespass» (England) 120-800 12-18 4 80

Children's clothing

TM «Parasolo» 230-250 12-18 4 40

TM BabyArt 15 3-6 1 15-50

Footwear

TM «Milana» (Italy) 2000 18 4 100-130

TM Antonio Biaggi 1000-1500 16-18 5 100-150

TM «Respect» 700 10-15 4 80-25

Crocs TM 300-500 12-18 5 40-80

TM «Ti Amo» 300 12 4 70

Table 4

Strengths and weaknesses of franchising of trading companies [34, 35]

Capital investments in the sphere of franchising (Table 5) can be conditionally divided on the level: high (8001200 thousand UAH), medium (260-600 thousand UAH), low (95-150 thousand UAH). The payback period of franchising projects with a high level of investment is on average 18-24 months. The required number of staff averages from 3 to 10 people.

Strengths Weaknesses

For a franchisor (franchise provider)

Marketing and financial aspect: 1. Stabilization of turnover and profit from activities through the provision of a franchise. 2. Rapid promotion and development of the network brand. 3. Rational costs for expanding distribution channels. 4. Optimization and reduction of costs for promotions and advertising. Organizational and management aspect: 5. Monitoring of business activities of participants in a franchise network. 6. Distribution of competences and responsibilities on a third party (customers, supervisory bodies). 7. Orderliness of recruitment and management of personnel Marketing and financial aspect: 1. Obtaining a smaller part of the profit (the main part of the income of the franchisee). 2. Difficulties with the introduction of a franchise in an unsaturated competitive market. Organizational and management aspect: 3. Insufficient motivation of the franchisee (in matters of business profitability). 4. The need for legal support for the brand. 5. The possibility of separating the franchisee, in case of strengthening the position in the market. 6. The probability of non-transparent reporting by the franchisee (understating the level of profit and corresponding payments to the franchisor). 7. Failure to comply with franchisee requirements and standards of the agreement

For franchisee (recipient of franchise)

Marketing and financial aspect: 1. Risk reduction in starting a business. 2. Receiving assistance in financing. 3. Obtaining economic, social, environmental benefits through economies of scale (network effect). 4. Use the achievements and advantages of marketing research, advertising campaigns, promotions in the network at the expense of the franchisor. Organizational and management aspect: 5. Favorable terms of cooperation with counterparties and network participants. 6. Rules for the functioning and development of the network, corporate culture. 7. The possibility of learning by using experience, trademark, copyright or trademark. 8. Obtaining assistance in choosing the location of the franchise facility Marketing and financial aspect: 1. Restriction of sale (territory, the structure of goods, suppliers are regulated). 2. Inefficient policy of the franchisor can have a negative impact on the profitability of the franchisee. 3. Financial expenses (license payments, contributions to the advertising budget of the network). 4. High costs of adaptation to established standards in the field of merchandising. Organizational and management aspect: 5. Control by the franchisor. 6. Insufficient motivation from the franchisor. 7. Losses associated with leaving the network

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8. Conclusions

By results of researches, it is necessary to note:

1. The use of the term «relationship» is broader than the term «mutual relations», as it provides for mutual action and changes in the characteristics of participants in franchising: franchisor, franchisee, consumers and other business entities. Relationship marketing is a mechanism for the development of business entities based on the integration of basic functions, partnerships of mutually beneficial managerial and corporate interests.

2. A franchise network is one of the organizational and legal forms of distribution systems that can also be represented by an economic company, a partner network, a purchasing group. The franchise network is characterized by an average level of interaction, since the actions of the main participants are regulated in accordance with the terms of the franchise.

Within the framework of franchising, there are various forms and principles of cooperation, ranging from the simplest ones, which are the distribution of franchisor's goods using its brand and trade standards, to the most complex form of cooperation, which consists in offering an entire franchise system.

3. Monitoring of the activities of Ukrainian trade companies at the end of 2015 evidences about a reduction in the number of trade companies, and the number of employed workers. At the same time, an overwhelming number (97 %) are small companies that provide 40 % of employed workers and 23.7 % of the volume of sold products.

4. Strategic analysis of franchising activities using SWOT analysis shows that the main threats to franchising in Ukraine are: increasing the cost of resources, activating competitors, changing behavioral characteristics of consumers and complicating the legal field of franchising. Weaknesses are: difficulties with using a franchise in an unsaturated competitive market; insufficient motivation of the franchisee; high costs of adaptation to established standards in the field of merchandising and advertising.

According to the results of the SWOT analysis, it is established that franchising in the sphere of trade requires: improving the legal support for franchising; implementation of a flexible tax policy; assistance at the level of government programs and programs of the Franchising Association for the Development of Small and Medium-sized Businesses; implementation of regional support for small and medium-sized businesses, which is concentrated most of the employed workers and the volume of sold products.

5. The segmentation of participants in the franchise network makes it possible to establish that in the sphere of trade in light industry goods, franchising is realized in the following directions: «women's clothing», «man's clothes», «men's and women's clothing», «youth clothing», «sportswear», «children's clothing» clothes, shoes».

The change in the behavioral characteristics of groups of consumers (women, youth, people involved in sports) has a particular importance. When forming and promoting the interaction of franchising activities of trade companies, it is advisable to take into account the following signs of network participants: parameters of competitive behavior, distribution channels, supply chain planning, institutional relations and specialization, long-term functioning and development [36-39]. Relationship marketing facilitates

the adoption of consolidated decisions on the competitive behavior of the manufacturer, the seller and the consumer, the institutionalization of relations, the achievement of common interests of all stakeholders.

In the sphere of trade, there is a need to compose activities and establish social aspects of interaction primarily in small business. The implementation of educational consultative programs and projects becomes crucial in shaping the relationship marketing and development of franchising as a form of partnership.

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ИССЛЕДОВАНИЕ МАРКЕТИНГА ВЗАИМОДЕЙСТВИЯ В ФРАНЧАЙЗИНГОВОЙ ДЕЯТЕЛЬНОСТИ ТОРГОВЫХ ПРЕДПРИЯТИЙ

В работе автором уточнена сущность и составляющие понятий «маркетинг отношений», «маркетинг взаимодействия», «партнерство» в торговом предпринимательстве. Исследована сущность термина «дистрибуция» и «франчайзинг» и определено место франчайзинга в структуре организационно-правовых форм дистрибьюторских систем. Обобщены сильные и слабые стороны франчайзинговой деятельности с использованием SWOT-анализа.

Ключевые слова: предпринимательство, торговля, дистрибуция, партнеры, франчайзинг, маркетинг взаимодействия, согласования интересов, эффективность, устойчивое развитие.

Lisun Yanina, PhD, Associate Professor, Department of marketing and advertising, Kyiv National University of Trade and Economics, Ukraine, e-mail: yanalw@ukr.net, ORCID: http://orcid.org/0000-0002-5250-2809

UDC 65.011

DOI: 10.15587/2312-8372.2017.108794

Koios i. MATERIAL FLOW MANAGEMENT

OF INDUSTRIAL ENTERPRISE ON LEAN PRINCIPLES

Охарактеризовано матергальний потгк як складник потоку створення цтностг, де вгдбуваеться змта матергально-речовог форми виробничихзапасгв до готового виробу з одночасним створенням цтностг для споживача. Запропоновано модель управлтня матергальним потоком промислового тдприемства на засадах ощадливостг з використанням процесного, функцюнального та системного тдходгв. Розкрито доречнгсть використання сукупностг методгв ощадливого виробництва в реалгзацгг окремих функцш управлтня матергальним потоком промислового тдприемства з оргентащею на безперервне вдосконалення створення цтностг для споживача.

Ключов1 слова: потгк створення цтностг, матергальний потгк, управлтня матергальним потоком, ощадливе виробництво, промислове тдприемство.

1. Introduction

In today's conditions, the necessary component of the production process is the availability of a sufficient number

of appropriate quality of production stocks. Priority direction of increasing the efficiency of industrial enterprises is the proper provision of value to consumers of finished products. The main objective of the industrial enterprise is

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