CC BY
91
Section 8. Economics and management
https://doi.org/10.29013/ESR-21-3.4-68-72
Gadzhieva Nushaba Aslan, Associate Professor of the Department of Marketing, Ph.D.
Azerbaijan Technological University, Ganja E-mail: nushaba.hajieva@mail.ru
Ismailov Vugar Agamusa, Associate Professor of the Department of Marketing, Ph.D.
Azerbaijan Technological University, Ganja E-mail: v.ismayilov@uteca.edu.az Babakishieva Sevinc Firuddin, Senior Lecturer of the Department of Marketing Azerbaijan Technological University, Ganja E-mail: sbabakishiyeva@mail.ru
Garayeva Shahla Nadir, Senior Lecturer of the Department of Marketing Azerbaijan Technological University, Ganja E-mail: sehlaqarayeva@yandex.ru Gojayeva Zeynab Bahram, Senior Lecturer of the Department of Management Azerbaijan Technological University, Ganja E-mail: z.qocayeva@uteca.edu.az
Hasanzadeh Zeynab Fizuli, Senior Lecturer of the Department of Foreign languages Azerbaijan Technological University, Ganja E-mail: z.hasanzade@uteca.edu.az
MODERN MARKETING CONCEPTS
Abstract. The article examines traditional approaches and modern marketing concepts. Special attention is paid to the concept of holistic marketing, which recognizes that everything is important in marketing and that an extended, integrated approach is often needed. At the same time, such types of marketing as guerrilla, viral, entertainment marketing, and permission marketing are considered. The main directions of improving marketing activities are considered at the end of the article. Keywords: traditional marketing concepts, holistic marketing, vertical marketing, modulation, business concept.
Modern Marketing Concept: A Holistic Approach
The company's goal is to create a consumer who is the only profit center. Marketing is aimed at solving consumer problems. Modern trends in the development of the surrounding world, the image and lifestyle of people lead to the fact that the consumer becomes different. In this regard, we can talk about the following:
Lack of time leads to an increase in the need for convenient and simple thingswhich do not require a lot of time for their purchase (for example, complex delivery of food products to home, system purchases in the "business-to-business" market).
A decrease in the perceived difference between consumer properties of products leads to a decrease in loyalty to individual brands. Due to the large selection of products and the increased "market literacy" of consumers, there is a more conscious attitude towards price and value.
The modern marketing concept assumes a holistic, integrated approach to all marketing issues of the enterprise. That is why, according to a number of domestic foreign experts, modern marketing concept is the quintessence of socio-ethical marketing, relationship marketing and some other approaches.
The concept of holistic (holistic) marketing is based on the planning, development and implementation of marketing programs, processes and activities, taking into account their breadth and interdependence. [1].
Holistic marketing recognizes that everything is important in the marketing business and that, often, an extended, integrated approach is needed.
The concept of holistic marketing is gaining more and more popularity now; proposed by F. Kotler and including planning, design and implementation of marketing programs, processes and activities, taking into account their breadth and interdependence.
Holistic marketing - first of all, a special, holistic way of thinking, and not a set of certain recipes and technologies. Its powerful and so far little
explored potential can be used by any business, but for this you need to learn to act, not trying to understand and control everything around. It's not easy, but don't be intimidated. Even the transition from classic 4P marketing to branding requires a serious rethinking: you cannot understand branding without shifting the focus of attention from your office to the head of the consumer [2].
Holistic marketing just goes one step further, suggesting to take both into account. Holistic marketing is hard to understand, but that doesn't stop you from using it successfully. In addition to advertising and sales promotion.
Companies operating effectively in the market by increasingly using other communication factors: such as the product itself, its packaging and labels, the efficiency of personnel (sales agents, sellers), public relations, etc. [3].
Thus, there is clearly an increase in the role of complex, integrated use of marketing communications, their great adaptation to the type of product and market, consumer needs and their level of awareness of the product, the stage of its life cycle.
Development of new types of marketing as a response to changing business conditions
Recently, terms such as vertical and secondary, or lateral, marketing have been used. These types of marketing are not given a specific definition rather their features and methods are described often with examples.
Vertical marketing is based on choosing new directions for using old ideas. The methods used in this type of marketing include:
Modulation. A juice manufacturer can offer juice with different content of sugar, fruit concentrate, vitamins.
Variation in size. Packets ofchips ofdifferent sizes.
Variation in packaging. A variety of candy packaging - from inexpensive paper packaging for regular stores to metal holiday boxes for for expensive stores.
Change of design. Construction of cars of different designs.
Insertion of additives. Baking with sugar, cinnamon, chocolate and etc. The same can be said about cereal producers.
Simplification of purchases ' forms of payment. Different payment channels for purchases: shops, by phone, via the Internet, etc.
It is noted that you cannot make a lot of money in these ways, as these improved products are tried and bought by the same consumers. Apparently, one can only partially agree with such an assessment, for example, a new car design may attract new buyers. In addition, in many cases, similar methods are used, if they do not increase the number of consumers in general, then they can divert existing consumers to buy a product of this particular brand.
Secondary marketing, as opposed to vertical marketing, is based on the use ofnew ideas. Secondary marketing is usually a combination oftwo ideas for creating a new one. Example, Petrol station = petrol station + the possibility of purchasing food; Internet cafes = cafes + Internet; "Kinder surprise" = sweets + toy; Barbie doll = doll + teen (a doll that looks like a teenager).
Obviously, both of the described types of marketing are needed. Secondary marketing now requires more attention, because vertical leads to hyper fragmentation of the markets. Each new concept discovered through secondary marketing will eventually be developed by vertical marketing. Often the search for novelty in marketing is carried out at the level of terminology, there is an unjustified desire to use new, unusual names. Many "new" types of marketing are essentially "old" types of marketing in which clarifying emphasis are made on the use of its individual tools and methods. Moreover, the principles of marketing, its tools in general, the content of marketing management (marketing research, individual stages of segmentation, positioning, the structure of the marketing plan and the sequence of its development, etc.) do not undergo any changes. In some cases, these types of marketing can be called pseudo-new types. In our opinion, the considerations presented here are relevant to the material below.
Guerrilla marketing. Its novelty lies only in the use of new methods of product promotion. For example, representatives of the company "Nokia" hire people who on the streets of Rome ask passers-by to take a picture of them with a mobile phone (it has a built-in camera), causing them surprise. In this way, new possible contacts with consumers are created without the cost of advertising (although instead there is a payment for hired people).
Viral marketing. In this case, consumers share information about the product with each other in person or via the Internet. (But this is a well-known method "word-of-mouth" promotion.)
Entertainment marketing. It consists in inviting key customers to restaurants, sports events and etc. in order to provide them with emotional impressions, create a sense of belonging to the lifestyle of rich (great) people. This also includes the provision of unusual services to passengers on the plane: massage, manicure, casino, giving new impressions.
Permissions Marketing. Its essence is to reduce consumers' feelings of anxiety, to prevent them from having a negative attitude towards the company which focusing primarily on CRM technologies, creates and actively uses the customer base. The client is concerned about the possibility of using information about him in an unacceptable direction. Due to the fact that marketing is increasingly invading people's privacy, marketers are increasingly faced with the task of conducting marketing activities within certain ethnic norms. This does not mean the abuse of advertising, telemarketing, especially carried out by poorly trained personnel, or using computerized calls. The consumer sometimes begins to experience discomfort from intrusion into his/her privacy, because, having complete personal information, some companies are too intrusive to remind of themselves [4].
As part of this type of marketing, they try to dispel this sense of concern. The consumer is asked for permission to receive and use information related to him. (But this is simply the compliance with certain
norms of ethics in marketing, which is what ethical marketing is based on).
Directions for improving marketing activities
The level of effectiveness of marketing activities is not necessarily determined only by the results of current activities. High efficiency is primarily determined by the fact that the company is competently pursuing a marketing policy on a strategic scale.
Hence the need to pay more attention to the problems of business growth. There is no such conception as a "mature business". We must strive to find all the new directions of application of some product - nylon, for example, it was used to make parachutes, then stockings, clothing, tires, canvas. In addition, it is necessary to search for new users, for example, in China. Growth is possible due to a reduction in the number of brands. The money saved can be used for business development.
Not every growth is justified. It is necessary that it brings good results to be balanced. The balance should be in the growth of the company's market value, the availability of free money and the acceptable risk of doing this business. Balanced growth is the key to prosperity in the XXI century. Growth is a corporate mentality created by the company's management. In today's market conditions, growing is less risky than not growing. The following specific business growth strategies can be distinguished: capture a larger share of the existing market; transition to new regions; transition to new consumer segments- for example, creating computer games (golf, cards) for pensioners; the creation of new markets; development of new products and services (for example, milk trade at gas stations); creation or use of new sales channels.
The following tasks can be identified to strengthen the role of consumer relation marketing (CRM technologies): [6].
The first task is to create, maintain and use a rich customer database based on information gathered from all channels and points of contact with customers. Information technologies are those that allow
analyzing the movement of the product from the company to the end user in real time, as well as quickly responding to any consumer requests make modern marketing flexible and ready for rapid changes.
Second task-use of functional cost analysis (Activity based Costing - ABC) and analysis of Consumers' Lifetime Values (Customer Lifetime Value - CLV-Analysis), in order to find out who is a profitable consumer.
Third task - formulate a consumer-oriented offer which are transmitted in a personalized manner.
The fourth task - activate the interaction between consumers and the company by creating a contact center and a website in the company, wider use of telemarketing. The contact center should become the "nerve center" of the company for sales and customer service. Its activities should be aimed at analyzing all customer orders in the interconnection at promptly responding to complaints and at quickly eliminating their causes.
It is necessary to prove to the potential consumer the benefits of purchasing the product in numbers.
In modern conditions, the focus in the activities of companies is shifting from the production and sale of products to the choice of values, their creation and transfer to consumers and as a result, a shift to consumer-driven marketing.
In product-driven marketing, a product is usually created for a large group of consumers, and mass marketing is often practiced. The types of manufactured products are considered as the principle of building the organizational structure of the company. The "profile" department is engaged in marketing. There is a focus of marketing activities on the acquisition of new customers rather than retaining existing ones.
In consumer-driven marketing, the importance of analyzing the customer value of the products sold is increasing. Consumer value is understood as the consumer's benefit minus the cost of purchasing and using a specific product. The additional value must exceed the additional costs. These purposes are served by cost-value analysis (CVA), aimed at correlating value
and all costs. For example, you can buy a more expensive truck that breaks down less often [5].
Consumers expect a manufacturer to continuously improve product quality, increase productivity, innovate continuously, and reduce prices over time. This gives them the opportunity to lower their prices.
It is necessary to strive to create additional value for the consumer, to aim to improve his business. From this point of view, manufacturers (sellers) are consultants for their consumers. It is necessary to share with the consumer not only the profit, but also the risks.
The development of holistic marketing is fundamentally changing the role ofthe marketing department. Marketing is too important to be handled by this department alone. The task of the marketing department is to coordinate marketing activities. The company itself is a large marketing department. Mar-
keting should be holistic, and not confined within one (specialized) department. Marketers must achieve greater influence in the company if they want to be the main architects of the business strategy. In fact, we are talking about raising marketing to the corporate level.
Conclusion
Modernmarketing - it is a new entrepreneurial philosophy based on socio-ethical and moral norms of business communication, international codes and rules of fair commercial activity, the interests of consumers and society as a whole.
This new approach collided with the old traditional business concept, namely, the desire to maximize profits through mass production and the intensification of efforts to market the products produced. In the new concept, the object of the enterprise's efforts are target market segments, that is, groups of consumers with their needs, interests and preferences.
References:
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