What is marketing in simple words: types and functions, goals and objectives, strategies and plan. Marketing - what is it in simple words

Ministry of Education and Science of the Russian Federation

MOSCOW FINANCIAL AND LAW ACADEMY
KALININGRAD BRANCH

Essay

on the topic

“The history of marketing.
Domestic and foreign
founders of marketing"

By
discipline
"Marketing"

2010
Content

Introduction…………………………………………………………...... ....... 3
Chapter 1. Marketing abroad ……………....…...................... .............. ...... 4
1.1. What is marketing and its founders…………………………….. 4
1.2. Basic ideas and objectives of marketing…………………………………….
1.3. The current stage of development of marketing abroad………………..
Chapter 2. Marketing in Russia…………………………………………….
2.1. Development of marketing in Russia …………………………………………
2.2. Main features of marketing in Russia at the present stage
development.................................................. ………………………………………………………
2.3. The future of marketing in Russia…………………………………………….
Conclusion ………………………………………………………………….
List of sources used……………………………………...…. .

Introduction

The term “marketing” was introduced into everyday life relatively recently. It is based on the English word “market” - market, and the ending “ing” is difficult to translate literally into Russian, since it denotes movement, a change in something. Therefore, the term “marketing” is often identified with the concept of “market activity”.
Marketing is one of the main categories of the market economy, which is increasingly becoming decisive in our lives. Therefore, managers and specialists of the national economy are forced not only to recognize this term, but also to study its essence, main aspects and concepts, to know the organization of marketing well, to use the methods and techniques of this activity if we want to survive and succeed in a market economy, which is relatively it is tougher and sometimes even merciless towards careless, incompetent employees. The market has both positive and negative sides (more on this below). Therefore, managers and specialists of the national economy must be able to use with maximum efficiency all the positive things that the market provides, and neutralize and smooth out its negative aspects. Without knowledge of the basics of marketing, it is very difficult or even impossible to do this.

When Adam Smith said in 1776 that consumption is the only ultimate goal of production, he was actually talking about what later came to be called marketing.

Chapter 1. Marketing abroad

1.1. What is marketing and its founders

An analysis of various marketing concepts throughout the almost century-long history of their formation in theory and practice allows us to identify the main stages in the evolution of marketing management:
- “pre-scientific”, intuitive, stage of formation of marketing tools;
- stage of formation and development of marketing management concepts of the subject;
- stage of formation and development of concepts of marketing management of the subject.
The “pre-scientific”, intuitive, stage of the formation of marketing tools ended by the beginning of the twentieth century, when marketing had already acquired the “status” of an applied theory and an independent academic discipline. However, in the period preceding this, the practice of commercial activity and, in particular, trade was actively searching for and generating original methods of influencing consumers, motivating their behavior, purchasing activity and, in this regard, increasing the profit of the entrepreneur. Apparently, even their unsystematic, intuitive use turned out to be so effective that they gradually took the form of rules for successful trade and “secrets” of entrepreneurial activity of artisans and merchants. These were unique historical “prototypes” of such marketing tools as advertising, personal communications, labeling, corporate identity, pricing techniques, direct sales and other forms of distribution channels.
Already in the first half of the 17th century, books began to appear in which attempts were made to describe them. Such techniques, which arose from the practice of trading business and entrepreneurship, born from the intuition of artisans and merchants, were “prototypes” of future marketing tools that effectively impact the consumer, and the main result of the “pre-scientific” stage in the evolution of marketing management.
The initial impetus for the development of marketing as an applied science and management concept was given during the industrial revolution in the United States. It was there that, ultimately, the historical transformation of entrepreneurial intuition and experience into a business philosophy, into an academic discipline, into a management concept and, ultimately, into applied science took place: the first lectures on marketing were held at the University of Illinois and Michigan at the beginning of the century, which gave rise to the development of a new academic subject, which has since become an integral part of economic education; in the country's largest companies in 1911, the first marketing and advertising departments were created, which was, in fact, a corresponding reaction of practical management to the increased role of marketing; in the 20s, there, in the USA, a national association of teachers of marketing and advertising was organized, which, in turn, became an important event in the scientific and methodological development of marketing. In addition, most scientific and practical publications from then to this day belong to American authors; professional marketing terminology arose in English, as a result of which domestic marketing publications contain many English-language borrowings that cannot be translated literally and sometimes do not need it. Therefore, the role of English-language terminology in marketing, which was formed at different times in the USA and boldly “entered” without translation into the marketing lexicon of scientists and practitioners in Russia (and before that - in other countries), can be compared, in our opinion, only with a similar situation in medical terms used by specialists around the world to this day in the language of classical Latin.
The diverse management concepts of marketing can be divided into two types: the concept of marketing management and the concept of marketing management of the subject. The main feature of such a classification of management marketing concepts is the “scale” of marketing management, according to which:
1. Marketing management concepts are implemented in practice on the “scale” of the management function and the corresponding department in the subject’s management structure.
2. The concepts of marketing management of a subject are implemented on the “scale” of the entire management system of the subject.
These two types of concepts correspond to similar stages in the evolution of marketing management.
The stage of formation and development of the subject’s marketing management concepts lasted from the beginning to the middle of the twentieth century, when the historical “prototypes” of marketing tools, having become widespread in almost all countries of the world where market relations took place, were transformed into various management marketing concepts. To these we include the concepts of improving production, improving goods, and intensifying commercial efforts that arose in the first half of the twentieth century. What was and remains characteristic of them is that marketing in this case is considered by practitioners as:
- a management concept on the “scale” of the marketing department, and not the entire organization of the subject;
- functional infrastructure subordinated to the interests of production and marketing of the product, and not to the needs of the target market.
The concept of manufacturing improvement is based on the assumption that consumers will prefer products that are widely available and affordable; Marketing management should be aimed at improving production, forms and methods of sales.
The concept of product improvement is based on the assertion that the consumer will give preference to products whose quality and properties are constantly improving; therefore, marketing management should be aimed at improving product quality.
The concept of intensifying commercial efforts is based on the assertion that the consumer will not actively purchase a product unless special measures are taken to promote the product and sell it on a large scale.
Marketing Management Concepts - A philosophy of marketing management that assumes that a company's achievement of its goals is the result of identifying the needs and demands of target markets and satisfying consumers more effectively than competing companies.
The concept is based on four critical pillars: target market, customer needs, integrated marketing and profitability.
Integrated marketing is a two-way system: external marketing is marketing aimed at coordinating all marketing functions from the client's point of view. Internal marketing requires coordination of the work of all departments of the company from the point of view of employees. Internal marketing should precede external marketing.
Enlightened Marketing Concept - The marketing philosophy that a company's marketing should support the optimal performance of its distribution system over the long term, with its five principles: customer-focused marketing, innovative marketing, value-based marketing, mission-driven marketing, socially ethical (responsible) marketing. The latter involves satisfying consumers in a more efficient way than competitors, while maintaining the well-being of the consumer and society as a whole.
Concept of Marketing Management - Marketing management occurs when at least one of the parties to a potential exchange develops and uses means to achieve the desired response of the other parties.
“Marketing management is the process of planning and implementing policies for pricing, promoting and distributing ideas, products and services aimed at achieving exchanges that satisfy both individuals and organizations” (definition by the American Marketing Association).
The concept of strategic marketing is based on the distinction between the concepts of strategic and operational marketing. Strategic marketing is a constant and systematic analysis of market needs, leading to the development of effective products intended for specific groups of buyers and having special properties that distinguish them from competitors' products and thus create a sustainable competitive advantage for the manufacturer; includes needs analysis, macro- and micro-segmentation, analysis of competitiveness, product market portfolio, choice of development strategy. Operational marketing is a tool for implementing the chosen marketing strategy; implies a marketing plan that includes the entire complex.
The concept of relationship marketing is based on the fact that marketing management should be aimed at the process of creating and expanding strong mutually beneficial relationships with consumers or other stakeholders (suppliers, contact audiences, intermediaries, etc.), which increases the likelihood of future transactions with the same the same consumers. The opposite concept - deal marketing (transactional marketing) - aims marketing management at increasing the number of one-time transactions with new consumers.
The concept of maximarketing - Marketing management aims to maximize trade turnover and profits through selective distribution and involvement of clearly defined potential consumers and clients in the process; involves two stages - maximum synergy (two-shift advertising) and maximum distribution (adding new distribution channels).
The concept of competitive rationality - the main goal of a corporation is to generate profit for the company, its employees and shareholders through the production of goods that satisfy the needs of customers, competitiveness acts as the main driving force of the marketing concept. The process of making marketing decisions in a competitive market is called competitive rationality. The word "rational" implies that the company strives to be consistent in organizing exchanges with consumers in an ever-evolving market.
Megamarketing concept - Coordination of economic, psychological and social influences aimed at establishing cooperation with politicians (political parties) to enter a specific market and (or) work on it.
A management concept that has system tools (as a rule, this includes product, price, promotion, distribution channels) that influences consumers and increases their purchasing activity.
All this has an impact on the “scope” and nature of marketing planning, which remains tactical rather than market-oriented and strategic; on the status in the organization of the marketing plan, marketing department, marketing control, the size of the marketing budget, etc.
The stage of formation and development of the concepts of marketing management of the subject, which began in the 50s of the twentieth century, continues to this day, demonstrating modern concepts of marketing management. The concepts of this stage include the concepts of marketing itself (P. Drucker), enlightened marketing (F. Kotler), which received impetus in their development already in the 50-70s of the twentieth century, as well as the concept of marketing management (F. Kotler), competitive rationality (P. Dixon), strategic marketing (J.-J. Lambin), maximarketing (Rapp and Collins), relationship marketing (D. Pepper and M. Rogers), megamarketing (F. Kotler), which arose already in the 70s 90 years of the twentieth century.
A holistic idea of ​​marketing management, combining the advantages of various modern scientific concepts and relevant practice, proceeds from the fact that the management of a subject’s activities in the market is built, firstly, on the principles of strategic planning; secondly, on the principles of investment portfolio management, in which each area of ​​activity of the subject, or its business unit, has its own profit-making potential, taken as the basis for the distribution of the subject’s resources; and, thirdly, on the principles of marketing itself, which allows one to assess the prospects for the implementation of decisions made on the basis of the first two principles, and directly plan, organize and control their implementation, using systemic marketing tools.
Therefore, in the concepts of marketing management, the marketing process itself, including: analysis of marketing opportunities; development of marketing strategies; planning marketing programs (development of system tools); organization of execution and control of marketing work - is closely interconnected with strategic corporate planning (defining a corporate mission, defining strategic business units, distributing resources between them, planning new activities) and planning at the level of a strategic business unit (defining the mission of a strategic business unit). units, identification of opportunities and threats, strategic analysis, formulation of goals, strategies, business unit programs and control of their implementation).
The change in the “scale” of marketing management, characteristic of all concepts of marketing management, affected not only the structure of the subject’s management, the “scale” of marketing planning, control and budget, but also the system tools of marketing management.
Characteristic of the concepts of marketing management is that the choice of its system tools, the determination of “proportions” in their relationship with each other is a consequence of strategic corporate planning, strategic planning at the level of a business unit, and not just the marketing process. Therefore, the problem of the priority of one or another marketing tool, although it arises and is solved in the concepts of this stage, is still not the main one that predetermines the development of marketing management concepts.
Consequently, the most complex analytical, planning, organizational work at all available levels of the subject (corporation, business unit, structural division) in the process of marketing management is ultimately subordinated to the formation and management of systemic marketing tools that directly create value and the acquired good (or benefit) ) not only for the consumer and the subject achieving their goals in the market, but also for all participants in the exchange (for example, society, government institutions, the subject’s personnel, its shareholders, etc.).
From the point of view of marketing development, it seems interesting to get acquainted with those people whose names are still known throughout the world. They all used different elements of marketing to varying degrees. One of them: Levi Strauss (1829 - 1902).
When Levi Strauss started a company to sell jeans around the world, he used the alchemy of marketing to turn denim into gold. Having received a ban on conducting commercial activities and cultivating the land, the Jewish Strauss family was able to find work in the city government: registering births, deaths, and marriages. The position of registrar was assigned to their family. However, she turned out to be too unworthy for Levi. Like his brothers Jonas and Louis, Levy decided to flee to America. On his first night in America, he began to study English, first learning phrases that could be useful in trading. Mastering the American monetary system became his second priority. Within a week he had become a "Yankee Street Vendor," selling needles, thimbles, thread, and other sewing supplies supplied by his brothers. Three months later, Levi was able to convince the brothers to move to San Francisco, where, as he heard, there was a lot of gold. A year earlier, in 1849, the gold rush began. In addition to the various goods that he traded, Levi also took with him canvas, from which gold miners could make awnings. Even on the ship, he sold all his goods, this indicated that there was a huge demand from the residents of San Francisco, since everything they bought had to be imported. Strauss decided to act wisely with the canvas. Almost immediately, he ran to the miners, who explained that they did not need awnings, but they needed trousers that could withstand the harsh conditions of gold mining. Levi immediately took the miner to a tailor, who immediately sewed canvas trousers. Soon after the miner returned to his camp, the remaining orders did not take long to arrive...
Strauss's manufacturing business began as a completely family affair. Levi never married, thereby directing all his energy and enthusiasm to the interests of the cause. He insisted on creating high-quality products, which allowed him to seek out the best factory in the world to produce his trousers. He found it in Nimes in France. The French expression de Nimes comes from Names, the American word for "jeans". Strauss' desire to satisfy his customers' needs led to innovations such as fastening pockets and connecting seams with copper rivets, which would help miners' clothing last longer. This innovation was proposed to Strauss in 1872 by Jacob Davis, a merchant from Nevada, who himself repaired holes in Levi's trousers in this way.
Despite the popularity of blue jeans, which became known as Levi's, after World War II, only one-fourth of Levi Strauss & Company's total production was engaged in the production of clothing, while the majority of the company was engaged in the wholesale distribution of goods from other enterprises. In 1948, Walter Haas, the grandson of one of Levi Strauss's nephews, decided to abandon wholesale sales and concentrate all his attention on the production of clothing.
Levi Strauss and Company is still expanding. The whole world became her target market. In 1979, domestic sales reached $1.339 million. Sales outside the country of jeans and other goods reached more than $2 billion. Levi Strauss eventually received his gold, but it did not come to him from the earth.
Ferdinand Porsche. (1875 - 1952). Economically, nothing happens until someone decides to sell, but also, no one can make a sale without having a product to sell. There are only a few product designers who have achieved worldwide fame for their contributions to the formation of the first 4 Pis in marketing. But the genius of Ferdinand Porsche has established itself in many places.
Porsche was born in Austria in 1875. His interest in electronics began at the age of 15 when he saw the benefits of electric lighting that had just been introduced at a local carpet factory. In two years, he laid electrical wires throughout his father's house, thereby making their house the only "electric residence" for many miles around.
Working as a tinsmith from an early age, and later becoming a senior worker, Ferdinand realized that this did not interest him. After much debate with his father, he finally decided to work for the United Electric Company. After 4 years, he was put in charge of the experimental workshop. The electric car absorbed his interest and Ferdinand spent a lot of time trying to correct its shortcomings.
By the age of 20, he was already working for Lohner, a carriage re-enactor from Venice. At the age of 30, he became the general manager of Austro-Damler, and Porsche also provided several cars for Prince Henry's trip in 1909. His inventions were received with pleasure and earned him a silver disc.
The Volkswagen concept, Porsche's most common model, appeared in 1920. Although Porsche worked for Austro-Damler, he still came out with the idea of ​​creating a car that anyone could afford.
No matter how hard Porsche tried, the actual production of a car for everyone was delayed for decades, since Austro-Damler, like most German automakers, was interested in assembling the best cars for respectable customers. Porsche then developed the prototype of the modern Volkswagen for the motorcycle manufacturer Sundapp, but Sundapp still continued to use all its capabilities to produce two and three wheeled vehicles.
NSU, ​​another motorcycle company, approached Porsche to develop a small car for them. Three prototypes were constructed; but the NSO abandoned this idea due to the need to make large investments. Subsequently, in 1937, the government forced the automakers trade association to enter into a contract with Porsche to develop a car for everyone that would cost about $360. The government controlled production through the Volkswagen Development Corporation. Then they produced a car very similar to the Beatle we know.
The goal of creating a car for everyone was achieved, and Porsche turned its all-encompassing genius to other areas. During World War II there was a significant shortage of coal and oil, then Porsche reconstructed windmills, turning them into the most efficient means of generating and storing electricity. He also created tractors with hydraulic mounts; the Tigor tank, the most fearsome weapon in ground warfare; and the best aero fuel of that time.
Ferdinand Porsche died at the age of 75, having in his collection more than 360 created models of the automotive world and left a memory in history as the most versatile designer in the whole world.
Daniel Starch (born 1883)
Daniel Starch, one of the first researchers in the field of marketing, was born in Viscosin, one of the states considered a pioneer in the development of marketing education. Starch himself was directly involved in bringing marketing to the level of an academic discipline. In 1909, he opened a second course in advertising in his city at the city university.
Strach received his early education in a one-room schoolhouse on his father's farm. With a bachelor's degree in psychology from Iowa College, he continued his studies at the University of Iowa, where he received his master's and doctorate degrees in 1906. Starch began his career teaching psychology. Beginning at Iowa State University, his academic career unexpectedly included a 6-year professorship at Harvard. So, while at Harvard, he opened the marketing research firm Daniel Starch and Staff in 1923.
During his early years as a consultant, Starch showed a penchant for invention and exploration that would shape his future career. In 1921, he developed and began to use a recognition method to determine whether printed materials could be read. After 5 years, he demonstrated the principle of stabilization when calculating the size of research data.
Starch was also the first to conduct a comprehensive study of radio audience size. The data obtained during the national census in 1930 differed from his estimate by 4%. Two years later he opened the Starch Readership Service, which provided advertisers with more relevant information about how readers were responding to their ads. This company still operates to this day.
The main task of this company is to produce the "Starch Advertising Rating Report", which in most cases forms the basis for calculating the effectiveness of print advertising. This report evaluates responses to more than 30,000 advertising messages placed in 1,000 different business, consumer and agricultural magazines and newspapers over the course of a year. About 240,000 people representing various groups of people took part in the study, which aimed to identify the number of readers who responded to place an advertisement in a particular issue were able to recall what they had read about the product and the advertiser, and how many of them had read half or more of the printed material in the advertisement.
Daniel Starch has been awarded several times for his contributions to market research. In 1951, he was elected to the American Marketing Association's Marketing Hall of Fame. That same year, Starch was nominated for the Paul D. Conversi Award for his contributions to marketing education.

1.2. Basic ideas and objectives of marketing

There are different interpretations of marketing. The reason for the great diversity in the definition of marketing is in the specificity and scale of the problems solved in the process of production, sales, advertising, technical service, etc. Experts attach a double meaning to the term “marketing”: it is both one of the management functions and an integral management concept (business philosophy) in market conditions.
As a management function, marketing is no more and no less important than any other activity related to finance, production, scientific research, development work, logistics, etc., i.e. all companies perform the function marketing, even if it only consists of choosing an intermediary to sell your products. But this does not mean that they are guided by a marketing philosophy.
As a business philosophy, marketing requires a company to view consumption as a democratic process in which consumers have the right to “vote” for the product they want with their money. This determines the success of the company that sets itself the task of studying the nature of the needs and satisfying them as fully as possible. Ensuring maximum production volume while reducing production costs by excluding non-standard products from the production program, but needed by the consumer, is contrary to marketing as a business philosophy.
The interpretation of marketing as a management function is currently inferior to its interpretation as an integral concept of management (business philosophy).
Marketing is more than just pushing products or services into markets. This is the task of sales - to force the buyer to buy what the company can offer him. And with the help of marketing, they force the company to do what the buyer wants. Marketing is a two-way process: the company receives information about the needs of the buyer so that the company can develop and offer him the necessary goods and services.
Marketing is based on the union between consumer and company.
Thus, marketing is the process of planning and managing the development of products and services, pricing policies, promotion of goods to customers and sales, so that the resulting variety of benefits leads to the satisfaction of the needs of both individuals and organizations.
The following basic principles of marketing can be distinguished:
1. Careful consideration of the needs, state and dynamics of demand and market conditions when making business decisions. Consumers often don't know what exactly they want. They only want to solve their problems as best as possible. Therefore, one of the main tasks of marketing is to understand what consumers want.
2. Creating conditions for maximum adaptation of production to market requirements, to the structure of demand, based not on immediate benefits, but on a long-term perspective.
The modern task of marketing is to ensure that all activities of an enterprise (scientific and technical, production, in the field of capital investments, sales, maintenance, etc.) are based on knowledge of consumer demand and its changes in the future. Moreover, one of the tasks of marketing is to identify unsatisfied customer requests in order to orient production to satisfy these requests. Marketing means developing, producing and marketing something for which there is actual consumer demand.
The marketing system makes the production of goods functionally dependent on requests and requires the production of goods in the range and volume required by the consumer. When implementing the marketing concept, the center of business decision-making is shifted from the production units of enterprises to the units that feel the pulse of the market. The Marketing Service is a think tank, a source of information and recommendations not only for market, but also for production, scientific, technical and financial policies of enterprises. Here, on the basis of a thorough analysis of the state and dynamics of demand and business conditions, the question of the necessity, prospects, and profitability of the production of a particular product is resolved.
3. Influence on the market, on the buyer using all available means, primarily advertising.
Thus, we can say that marketing is a management organization in which the basis for making business decisions is not production capabilities, but market requirements, existing and potential consumer demands.
The general concept of marketing can be characterized as follows: there is a flow of benefits from the producer to the consumer. And from the consumer to the enterprise there is a flow of money necessary for the normal functioning of the enterprise and in order to satisfy future needs even more efficiently than at the present moment. And the task of marketing is precisely to ensure that the manufacturer and consumer, during a meeting on the market, most fully realize their goals and needs.
Thus, the task of marketing is to coordinate the company's capabilities and consumer demands. The result of this process is the provision of goods to consumers that satisfy their needs, and the company obtaining the profit necessary for its existence and better meeting the needs of consumers in the future.

1.3. The current stage of development of marketing abroad

It is impossible to count on a correct and reliable forecast of marketing development paths without taking into account the direction in the changing business environment. Below I will point out the specific challenges facing modern marketing practice.
1. Internationalization of enterprises. Garda (1988) and Leiser (1993) identify globalization as the main challenge. Buyers and suppliers of goods and services are becoming more global in their approach to business. The concept of separate national markets is no longer adequate. The only exceptions are those cases where the tastes and cultural preferences of consumers differ greatly and, as a result, competition between suppliers increases. The deregulation of industry and the emergence of the European Single Market (which brought with it common standards in safety and technical requirements, as well as an end to government discrimination against businesses) served to accelerate and intensify this trend. At the same time, the marketing challenge lies in restructuring local marketing activities in order to successfully compete internationally in disproportionately larger markets. Thus, globalization complicates all the components of the traditional “four Ps” of the marketing mix.
2. Complication and strengthening of consumer competence. Consumers are becoming more and more demanding of the quality, reliability and durability of products. This is partly due to improvements in the information base, greatly influenced by advances in communication and information processing systems, and sometimes to the concentration of purchasing activities in many industries. These changes are accompanied by the emergence of groups, networks and unions of buyers. It has become a new phenomenon that has taken control of the market from producers in many industries. They responded to this challenge by moving to multi-channel sales, including not only existing direct trading opportunities (postal or telephone), but also new ones (TV shopping channels and warehouse sales). The problem facing marketing is twofold: firstly, ways to get closer to consumers; second, develop ways to simplify the use of multiple market channels.
3. Lack of market growth. Many market sectors have already reached their maturity, which is characterized by saturation and decline in business activity. Profits are declining, requiring improved operational efficiency and “value for money.” In such conditions, the emphasis is on both retaining existing customers and finding new ones. A new problem arises for marketing: how to create and stimulate demand for the market, and not be content with just competition based on the principle of dividing the market. McKenna (1991) warns that the latter simply "reduces marketing to fighting for crumbs rather than trying to get the whole pie."
Dynamic thinking. A direct result of technological breakthroughs in the field of information processing and communications was the transition from a single-product business to systems thinking. From selling finished goods to trading on the basis of reputation and tailoring production to the specific wishes of the consumer, according to the principle of “what is required” - this is the fundamental challenge facing modern enterprises. Its solution requires creating long-term relationships with consumers and completely complying with their requests.
Time competition. Time frames are becoming increasingly compressed and the pace of change is constantly accelerating. The development of flexible production and control systems has inspired companies to compete using the factor of time - that is, the speed with which they can offer their products to the market. This is accompanied by ever-accelerating changes in consumer preferences. Time has become an important component of competitive advantage, and businesses need to ensure that they are always closer to the needs of their consumers and the wider market. The need for early entry into the market and rapid return on investment is clear. In this context, the price setting process becomes vital.
These difficulties are forcing businesses to restructure and rethink the application of marketing principles from a functional perspective, as well as to look for ways to apply marketing as a business philosophy.
Garda (1988) suggested that as a result of changing business environments, marketing not only becomes more complex functionally, but also transforms into an analytical science using logic, systems information analysis and sophisticated market research. According to him, this is already a far cry from the art form that marketing took on in the 50s and 60s, developing creatively, intuitively and inspiredly. If marketing as a discipline cannot offer solutions to the problems mentioned above, then marketing as a function will most likely be displaced. Signs of this are already there: “Business process change, rather than marketing, has taken on a major role in the recent restructuring of American corporations as a means for companies to become more customer-oriented.” (Hammer, 1990; Pallister et al., 1993).
Changing Marketing Thinking
How is marketing evolving under the influence of changing business environments? Only a small number of works have been written on this topic. However, some recent empirical studies have contributed by identifying common indicators for those companies that have succeeded in marketing activities over the past decade (Doyle, 1992; Liu and Wensley, 1991; Lynch et al., 1990; Whitington and Whipp, 1992, and also Leiser, 1993; McKenna, 1991; Hansen et al., 1990). However, there is a gap in describing the actions of exemplary companies for recommendations to other firms. It is difficult to evaluate the effectiveness of activities in any way other than retrospectively. Therefore, any conclusions drawn from an analysis of the work of example companies may be misleading. As Doyle (1992) observed, many of the leading companies cannot maintain their high position for long. Perhaps one of the reasons for this fact lies in the fact that the company leading the market has a legitimate desire to maintain the status quo, and it can become a brake on moving forward, and will immediately be surpassed by competitors. Therefore, we relied more on comments from leading scientists and consultants made during interviews rather than on a review of the literature. Currently, marketing specialists from business schools are in an advantageous position to monitor daily changes in enterprises, having close contacts with them.
It is also useful to distinguish functional marketing changes occurring in companies from changes in the philosophical and strategic role of marketing.
Strategic changes
Structure. Leading companies are moving away from formal, vertical-hierarchical structures. Although it is bureaucratic, it is efficient in terms of administrative costs and does not encourage risky decisions. After all, each employee is directly responsible for his actions. In the past, this structure has served companies well, but is now criticized as hindering the creation of innovative solutions. It also hinders rapid response to emerging market opportunities. In turn, a more flexible, open structure is being introduced and adapted, in which traditional positions and responsibilities are replaced.
Focus. As companies' vision for the future becomes more global, the effectiveness of centralized control over marketing activities is increasingly being questioned. Many firms are dismantling their central departments, creating multiple cross-functional and customer-focused teams. Potentially, decentralization can weaken the coordination of marketing strategy. Companies address this problem in different ways: some use task forces or task forces (Unilever calls them category management teams) made up of representatives from different departments to drive strategy; others, like Procter & Gamble, select "leads" who are assigned a major role in projects and then the information is distributed to other parts of the firm. This allows companies to focus their search for competitive advantage. Increasingly, companies are entering into strategic alliances and turning to other types of cooperation, including informal connections, to expand their opportunities for business growth.
Future-oriented. Until now, companies have taken a reactive approach to doing business. There are now signs of a more proactive approach to the future towards a managed market. McKenna (1991) describes this process as moving from "tell me what color you want" marketing to "let's figure out together how color will affect your primary goal" marketing. This is a manifestation of genuine interest in the consumer, and where necessary, in the consumer’s customers. This implies a “from the perspective of the future - inside the market” approach. Successful companies appear to grow with, or ahead of, the market.
Operational and functional changes.
Accompanying changes in strategy and philosophy is the need to implement changes at the functional level.
Professionalism. A review of the literature and conversations with experts indicate increasing professionalism of leading companies in marketing activities. The role of training and qualifications of marketing specialists, market research and marketing planning is increasing, along with increased investment in the analysis of both market intermediaries and internal problems.
Market and performance assessment. It has become obvious that leading companies are gradually moving away from the discrete principle of monitoring a weekly, monthly or annual period in favor of continuous monitoring and analysis, which makes it possible to quickly respond to changes in the market situation. Therefore, Leiser (1993) noted that marketing becomes a process of “aspiration, not achievement.” In today's fast-paced marketplace, the traditional process of developing new products—from ideation through prototype development and market testing to launch—is judged to be “slow, unresponsive, and risky” (McKenna, 1991). The alternative should be a process of constant incubation of innovations based on ongoing monitoring of market needs and the activities of competitors.
In conclusion, marketing success requires not only doing the right things, but also doing the things Right.

Chapter 2. Marketing in Russia.

2.1. Marketing development in Russia

Marketing involves achieving consensus and uniting the interests of producers and consumers within the framework of promising benefits to nature and society.
Russia has also contributed to the treasury of world marketing theory and practice. Possessing centuries of experience in the development of trade and the establishment of trading houses, she introduced her national identity and her own mentality into these types of activities, which is what makes Russian business still incomprehensible to “foreign sages.” Over several centuries, Russia has gone through the stages of market formation and market relations.
The genetic memory of the people stores the experience and results of economic behavior, role functions, which are now awakened to life by the current socio-political situation and the needs of economic reform. The economic history of Russian entrepreneurship is not only interesting, but also instructive. It allows Russian entrepreneurs and marketing managers to understand a lot in their actions and behavior, to use in modern conditions the methods once found and tested by our ancestors and, if possible, not to repeat their mistakes.
M. Tugan-Baranovsky in his work “The Russian Factory in the Past and Present” wrote that Russian artisans “do not accept anything to order, but make everything for sale - shoes, slippers, boots, caftans and other items of clothing, fur coats, bedding, blankets, tables, chairs - in short, all kinds of objects.” Craftsmen supplied all these things to merchants for a certain fee, and they sold them in their stores. With a sparse population and an insignificant number of cities in Muscovite Rus', the merchant was a necessary intermediary between producer and consumer.
Therefore, as M. Tugan-Baranovsky concludes, “the merchant could not help but be a major figure in the social and economic life of old times.”
Indeed, back in the 15th-16th centuries, Russian merchants occupied a high position in Russia. They were even instructed to collect “yasak” or yasak tax on behalf of the king, which went to the treasury. After the population census, they began to take a poll tax from every resident of the country, and in the middle of the 19th century it was replaced by an income tax.
A state monopoly was established on the trade of bread, hemp, caviar, potash, rhubarb, vodka, salt and other goods, the profits from the trade of which went directly to the state treasury. This led to an increase in the price of these types of goods, and salt became so expensive that people died from its lack in the body. There was strict accounting of all retail outlets that sold “monopoly” types of goods. The trading place - "torzhok" - gradually, with the expansion of the trade range, was transformed into benches, counters, and chests. Then they began to build log shops, and a counter window was installed in one of the walls. According to foreign guests visiting Moscow, the size of Russian shops was so small that one Venetian store contained more goods than a whole series of Moscow shops.
Russian merchants were initially divided into three categories - “guest”, “living room hundred” and “cloth hundred”, depending on the level of wealth and trading culture.
The “guest” category, for example, had the right to check others and even control the quality of the goods they sold. With the accumulation of the number of shops and counters, when it became difficult for buyers to navigate the abundance of goods offered to them, special trading rows were established by royal decree - hardware, Kalashnikov, meat, etc. The bottleneck of Russian trade has always been culture. And already in 1626, by royal decree, it was ordered that trade should be carried out in those places and with the goods as and where indicated: “do not walk in the rows with white fish,... do not walk with herrings,... do not walk with rolls.” . However, until the end of the 19th century, terrible unsanitary conditions were recorded in Moscow and provincial shopping arcades.
Large stores in Moscow, St. Petersburg and other provincial cities arose from the desire to circumvent strict government regulations prohibiting home trading, which was even punishable by... the death penalty. Foreigners were the first in Moscow on Kuznetsky Most to open shops in their residential buildings with large display windows, huge trading floors, warehouses that were located next to the living quarters, so that you could not immediately determine where the housing ended and the store began. Basically, the first stores in the house were music, jewelry and mirrors. In the Russian provinces, merchants built themselves this way: at the top of the mansion there are the master's chambers, at the bottom there is a store. To this day, such houses still exist in some places.
Trade accounting was very strict. Various taxes were constantly levied on merchants, because the state relied on them. The Brockhaus and Efron dictionary says that “taxes constitute the main source of state income. The existence of a harmonious tax system is a sign of a high level of development of the state.” In 1653, the Customs Charter was introduced in Russia, which abolished all types of old duties and introduced a single duty on the sale price of goods in the amount of five percent of turnover.
At the end of the 19th century, there was a rapid development of trade in Russia. According to academician S. G. Strumilin, the rate of return on capital was: for tent and stall trade - 261%, for shop trade - 108%, for store trade - 45.5%. This happened because in tent-stall and especially in mobile trade, almost no material investments were required and it was possible to get by with minimal capital. The tent owners considered investing an extra ruble in the development of commercial equipment as a direct loss. That is why the tents and stalls were extremely primitive and completely unfurnished. This is how they were revived a century later, when free trade was allowed in the country. However, the real scourge for merchants - shopkeepers, and for shopkeepers, and for the state were peddlers, or peddlers - which was their old historical name. They intercepted the buyer because they were very mobile. All kinds of small goods were peddled - pencils, pens, paper, ribbons, threads, needles, pins, scarves, hats, toys, tobacco, food products. The peddlers did not incur any distribution costs; they managed to hide their turnover. If in 1885 more than 170 thousand people traded peddling and peddling and were not subject to taxes, then in 1913 their number increased to 346 thousand. This forced the government to introduce bib numbers, or “plaques,” for peddlers, by which they registered and paid their taxes to the government. However, the breastplates did not help either: the peddlers hid their income so cleverly that their size still remains a historical secret.The development of trade in Russia was especially encouraged by Peter 1. In his decrees, he persistently proclaimed that engaging in trade and craft could not be a shameful or dishonest thing for anyone. It was recommended for cadets who were not recruited into the army or officers dismissed from it to start organizing a trade business. That is why trade was carried on right up to the revolution not only by merchants, but also by people of noble origin, former officials and officers.
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