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Baltic Journal of Economic Studies
---Vol. 10 No. 2, 2024
DOI: https://doi.org/10.30525/2256-0742/2024-10-2-232-237
MARKETING SUPPORT OF THE ENTERPRISE COMPETITIVENESS
MANAGEMENT SYSTEM
Tetiana Savchenko1, Olena Nikoliuk2, Roman Bakay3
Abstract. In the context of an aggravated competitive situation both in domestic and foreign markets, marketing tools for ensuring the competitiveness of an enterprise are becoming increasingly important. With the simultaneous growth of the role of a systematic approach in strategic planning both in the overall activities of the enterprise and its development prospects, and the level of competitiveness of the enterprise and its competitive position in specific markets. The subject of the study is the theoretical and methodological foundations of enterprise competitiveness management. The purpose of the article is to form a system for managing the competitiveness of enterprise on the basis of marketing. Methodology. To achieve the research objective, the following tasks were set and solved: a critical analysis of scientific approaches to the formation of a system for managing the competitiveness of enterprise, substantiation of the theoretical and methodological foundations for the formation of a system for managing the competitiveness of enterprise, clarification of the components of this system, and identification of the types of links between the components of the system for managing the competitiveness of enterprise. The following methods and approaches to research were employed in the study: an abstract and logical approach was used to examine the theoretical and methodological foundations of interaction management; an analysis of theoretical approaches to the formation of the enterprise competitiveness management system was conducted; an inductive and deductive approach (used to determine the factors influencing the formation of the enterprise competitiveness management system) was employed; a systematisation and generalisation approach (to clarify the approaches to the formation of the enterprise competitiveness management system) was also utilised. Results. The article considers processes of formation of the system of enterprise competitiveness management. It characterises and groups approaches to the system of management of competitiveness of an enterprise. The factors of influence on the level of competitiveness of enterprise have been determined. The structure of the system for managing the competitiveness of enterprise is described. Practical implications. The suggested integrated approach will help to clarify the role and functional links between the components of the enterprise competitiveness management system, taking into account the influence of factors of the marketing environment of enterprise and the marketing tools for assessing and improving the competitiveness of enterprise. Value/Originality. The proposed integrated approach to the formation of a system for managing the competitiveness of enterprise on the basis of marketing, unlike the existing ones, recognises the key role of competitiveness of enterprise products in assessing the competitiveness of enterprise, allocates the subject and object of competitiveness management, is based on the levels of strategic planning, takes into account the influence of factors of the marketing environment of enterprise and reveals the marketing tools for assessing and managing the competitiveness of enterprise.
Keywords: integrated approach, enterprise competitiveness management system, product competitiveness, assessment methods, marketing environment, marketing tools, strategic planning.
JEL Classification: D41
1 Odesa National University of Technology, Ukraine (corresponding author) E-mail: savchenko1802@ukr.net
ORCID: https://orcid.org/0000-0001-7990-1570 ResearcherID : AAA-9860-2019
2 Odesa National University of Technology, Ukraine E-mail: alenavn11@gmail.com
ORCID: https://orcid.org/0000-0002-1665-0361 ResearcherID: W-4105-2017
3 Odesa National University of Technology, Ukraine E-mail: roman.bakay@gmail.com
ORCID: https://orcid.org/0000-0003-3548-6517
This is an Open Access article, distributed under the terms of the Creative Commons Attribution CC BY 4.0
1. Introduction
In today's globalised economy, competition in the markets is becoming particularly intense, affecting all countries and industries. The growth of market activity in the domestic market is leading to the emergence of many new businesses and brands, which further increases competitive pressure. One of the key reasons for the low competitiveness of Ukrainian enterprises is their inability to compete for expanding their share in domestic and foreign markets, as well as to promote their products and attract consumers, putting their interests at the centre of production and commercial strategy. The formation of a competent marketing strategy to improve the competitiveness of an enterprise is also hampered by the low level of organisation in the search, selection and distribution of information flows that accompany this process.
Theoretical and practical aspects of competition and competitiveness of enterprises are studied by Ya. Bazyliuk, L. Balabanova, V. Blonska, Z. Varnalii, V. Heiets, O. Drahan, Ya. Zhalilo, A. Zahorodnii, S. Klymenko, F. Kotler, V. Lahodiienko, M. Porter, M. Saienko, and other domestic and foreign scientists. However, the impact of marketing tools on the state of competitiveness of an enterprise has not been sufficiently studied.
The objective of this study is to develop a system for managing the competitiveness of enterprises based on marketing principles. In order to achieve the research goal, the following tasks have been set and solved: a critical analysis of approaches to the formation of a system for managing the competitiveness of enterprise; the substantiation of the theoretical and methodological foundations for the formation of a system for managing the competitiveness of enterprise; the clarification of the components of this system and the identification of the types of links between its components.
The following methods and approaches to research were employed in the study: an abstract and logical approach was used to examine the theoretical and methodological foundations of interaction management; an analysis of theoretical approaches to the formation of the enterprise competitiveness management system was conducted; an inductive and deductive approach (used to determine the factors influencing the formation of the enterprise competitiveness management system) was employed; a systematisation and generalisation approach (to clarify the approaches to the formation of the enterprise competitiveness management system) was also utilised.
2. Analysis of Approaches
to the System for Ensuring the Management of Enterprise Competitiveness
In the context of competitiveness research, there is a need for a deeper analysis, since any limitation in
its assessment is methodologically unjustified. It is necessary to consider competitiveness as a complex process that depends on various factors. Taking into account the whole set of these factors will allow to more fully reveal the essence of the tasks of solving existing problems in this area.
In the analysis of competitiveness at different levels, from the product to the national economy, there are different approaches to assessment, which may differ. Sokolova L. V draws attention to the relationship between the competitiveness of a product, enterprise and country. She argues that product competitiveness is a manifestation of enterprise competitiveness, and enterprise competitiveness reflects the overall competitiveness of the country (Savchenko, 2015). However, such an approach to assessing the competitiveness of an enterprise may not sufficiently take into account the impact of internal resources of an enterprise on its competitiveness and ability to quickly adapt to changes in the external environment.
Determination of the level of competitiveness of an enterprise is an integral element of the process of managing the competitiveness of an enterprise.
In a volatile market environment, enterprises have to solve a complex task - to create an effective competitiveness management system that requires a strategic approach. The key principle of strategic competitiveness management is the concept of a strategic dynamic vision that adapts to changes in the strategic paradigms of the enterprise. Thus, competitiveness management should be comprehensive, including all aspects of management, and aimed at maximising the use of internal resources and ensuring long-term competitive advantages. However, the effective operation of the competitiveness management system requires the selection of an optimal scientific approach that meets the conditions and needs of a particular enterprise.
Most authors agree that competitiveness management is a certain system that includes a comprehensive approach to planning, coordination and control of various aspects of the enterprise or country's activities. Such a system includes analysis of internal and external factors, strategic management, innovation, human resources, marketing, financial planning and other aspects aimed at achieving and maintaining competitive advantage. Competitiveness management involves continuous monitoring and adaptation to changes in the economic and socio-cultural environment in order to achieve and maintain a successful market position. Nevertheless, the content of such a system of enterprise competitiveness management is interpreted differently (Maslani et al., 2024; Savchenko et al., 2023; Floyd, 2024).
Given the significant differences between the considered systems of competitiveness management, it is necessary to summarise the authors' experience
and identify the key aspects in the considered systems of enterprise competitiveness management (Table 1).
The main approaches to the formation of a competitiveness management system can be summarised into four groups: structural, situational, process and systemic.
The structural approach is based on analysing and rationally determining the significance of various factors, priorities, methods, principles and tools, as well as their interaction for the purpose of optimal resource allocation. Effective correlation between these elements allows to increase the validity of decisions and improve the efficiency of the management process.
To achieve this goal, it is important to use ranking methods that allow to determine the relative importance of each element in the context of a particular task or situation. The development of clear ranking criteria facilitates an objective assessment and selection of optimal solutions.
It is important to consider the principles of equity, efficiency and cost-effectiveness when allocating resources. This means that every decision should be supported by analytical justifications and be in line with the organisation's strategic goals.
In modern management, particularly in the context of complex and changing market conditions,
flexibility and adaptability of approaches to resource allocation are of particular importance. The ability to respond quickly to changes and take into account new factors helps ensure the stability and success of strategic management.
The situational approach involves the use of alternative methods to achieve the same goal when making or implementing management decisions, taking into account the uncertainty of the circumstances. This approach emphasises that the choice of certain parameters and management methods depends on a specific situation in a specific place and at a specific time.
Management decisions cannot always be seen as absolute or static. Situations and conditions are constantly changing, and therefore it is important for managers to have flexibility in choosing strategies and tools to achieve their goals. Alternative methods allow to take into account different scenarios and respond to unforeseen circumstances.
Applying this approach requires the ability to analyse the situation, assess the risks and use the tools that are best suited to achieve the goal in a given context. This may mean using different strategies, techniques, or even changing one's approach during the course of a project or assignment.
Table 1
Analysis of approaches to the enterprise competitiveness management system
Key distinction Approach content Advantages Disadvantages
Structural ap proach
Identification of three levels of strategic marketing management: strategic, tactical and operational (Zrybnieva, 2020) The competitiveness management system is based on three levels of strategic management, each of which includes a number of subsystems Clearly structured subsystems make it possible to distribute functions and tasks by levels of strategic management at the enterprise in a balanced manner The question of the role of the level of product competitiveness in the system of enterprise competitiveness management remains pending
Situational approach
Identification of objectives and description of tools for ensuring the enterprise competitiveness management system (Martyn et al., 2022) The system of competitiveness management is divided into theoretical and practical levels, depending on the distribution of goals by priority, practical tools for achieving the goals are proposed Specific solutions are proposed depending on the diagnosed problems The role of product competitiveness in determining the level of enterprise competitiveness is not defined
Process-based approach
The system includes a mechanism for managing competitiveness (Kovalenko et al., 2012) Four subsystems: management, managed, target and support subsystems, as well as levers, tools and indicators Managed and controlling subsystems are defined The factors that influence the level of competitiveness of an enterprise are not identified
Systematic approach
The competitiveness management system takes into account the impact of external and internal environment factors (Suslikov et al., 2023) The system distinguishes between the controlling and managed subsystems, taking into account the influence of the marketing environment The managed and controlling subsystems are defined, not only the factors, but also the level of influence of factors on the state of competitiveness of enterprise are determined The tools for increasing the level of competitiveness of the enterprise are not defined
Source: compiled by the authors
The key advantage of this flexible approach is the ability to adapt to changes in the environment and take into account uncertainty. This allows for more efficient use of resources, minimisation of risks and success even in difficult market conditions.
In the process approach, the general management functions are viewed as interdependent components of a single chain of actions. The management process can be represented as a sequence of stages that starts with strategic marketing, goes through planning, process organisation, accounting and control, and ends with motivation and regulation.
Planning involves the development of specific strategies, tactics and action plans to achieve the objectives. Processes are organised through the creation of an organisational structure, distribution of responsibilities and resources between departments.
Accounting and control ensure that performance is assessed, compliance with goals is verified and timely adjustments are made. Motivation directs the efforts of staff to achieve common goals, stimulating effective work. Regulation includes managing changes in the organisational structure and processes to support strategic goals.
A systematic approach to managing competitiveness includes an analysis of the two main components that determine the efficiency of an enterprise:
The primary-external environment includes all external factors that affect the company's operations. It includes system input and output, communication with the external environment and feedback from it. Analysing this environment allows to understand current market trends, competitive advantages and threats, and identify opportunities to improve competitiveness.
The secondary-internal structure covers a set of internal components that ensure the influence of the management entity on the object and allow achieving the system's goals. These components are interdependent and include the organisational structure, management processes, human resources, technology and other resources required for optimal functionality. The analysis of this structure allows to identify problematic situations, improve the efficiency of resource and process management, and optimise internal processes to achieve a competitive advantage.
The use of a systematic approach to competitiveness management allows for a comprehensive assessment of all aspects of an enterprise's activities, considering them as interrelated elements of a single system. This approach contributes to the balanced development of the organisation and allows it to respond effectively to changes in the external environment, ensuring stability and success in the market.
Thus, the carried out analysis of approaches to formation of the enterprise competitiveness management system has once again proved that the
problem is complex, the existing approaches have both advantages and disadvantages and require further improvement.
3. Formation of the Enterprise Competitiveness Management System on the Basis of Marketing
Managing the competitiveness of enterprises in today's unstable environment is becoming an extremely difficult task, the solution of which is accompanied by a constant infusion of additional information that must be taken into account in order to make informed decisions. An important component of such an information system is marketing information, which is responsible for characterising the marketing environment and the competitive situation in specific markets where the company sells its products. It is an undisputed fact that the competitiveness of an enterprise's products and the competitiveness of the enterprise itself are inextricably linked, and determining the competitiveness of products involves providing comparative marketing characteristics of products in terms of quality, price, promotion and distribution.
Therefore, when forming a competitiveness management system, it is necessary to use an integrated approach: not only the management mechanisms should be taken into account, but also the marketing tools that help to achieve the planned level of competitiveness of the enterprise (Figure 1).
Factors of the external macro environment have both positive and negative impacts on the development of the enterprise in general and on the level of its competitiveness. The analysis of factors primarily involves identifying opportunities and threats to the development of the enterprise, ranking them by degree of importance and finding means (if necessary) to neutralise the impact. The enterprise cannot influence the impact of these factors, but it can adapt to the environment and minimise the consequences (Savchenko, 2015).
External microenvironmental factors also have an impact on the enterprise's activities, forcing it to respond to the actions of the factors, but the enterprise also has a corresponding impact on the microenvironmental factors. Changes in the company's marketing policy (expanding the range of products, reducing prices, etc.) cause a corresponding reaction from competitors, stimulating them to respond.
The production of competitive products is the key to achieving a certain level of competitiveness of an enterprise. The competitiveness of products is influenced by their marketing support: product, pricing, distribution and communication strategies. Marketing support for products can be divided into three levels: strategic (marketing strategies), tactical
Factors of the external macro-environment economic, socio-cultural, political, legal, technological, natural and geographical
Factors of the external micro-environment consumers, competitors, suppliers, intermediaries contact audience
Control subsystem
Managed subsystem
Strategic level Tactical level Operational level Product competitiveness Assessment methods: differentiated, comprehensive, mixed Operational level Tactical level Strategic level
Product strategy Product quality and range Improving product quality and expanding the range Increase profitability Financial position of the company Financial strategy
Pricing strategy Product price levels Decrease/ price increase Rebooting production facilities Production capacity utilisation Production strategy
Communication strategy Means of promotion Intensification of advertising and sales promotion Reduced production costs Production profitability Economic strategy
Distribution strategy Sales channels Extension / reduction of the length and width of distribution channels Activation of motivational mechanisms Productivity Personnel strategy
Determination of the company's competitive position (the company's market share and its growth/decline trends)
Figure 1. The system of enterprise competitiveness management based on marketing
Source: compiled by the authors
(marketing mix) and operational (a system of measures to improve product competitiveness).
The internal environment of the enterprise is represented by its structural units (management entity) and characterises the general state of the enterprise. The object of management (administrative body) influences the increase of the enterprise's
competitiveness, taking into account the influence of factors of the marketing external and internal environment.
The state of competitiveness of an enterprise is influenced by the efficiency of management in all types of activities, which, in turn, can also be divided into three levels: strategic (financial, economic, production
and personnel strategies), tactical (state of production, finance, personnel, etc.), and operational (a set of measures to improve efficiency in all types of activities of the enterprise).
The level of competitiveness determines the market share of an enterprise and its competitive position. Taking into account the trends over a certain period of time, a competitive strategy is proposed for the enterprise, which should minimise external threats and reveal the strengths of the enterprise. Based on the content of the enterprise's competitive strategy, its corporate strategy is formed, which takes into account the strategic vision of the enterprise's management regarding its competitive status in the future.
4. Conclusions
The authors characterise approaches to the system of enterprise competitiveness management by key
References:
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On the basis of the carried out analysis, it is proposed to use an integrated approach in the formation of a system for managing the competitiveness of enterprise on the basis of marketing.
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Received on: 11th of March, 2024 Accepted on: 24th of May, 2024 Published on: 10th ofJune, 2024
