Marketing distributive and sales policy: research of essence, role and importance

Authors:
О.А. Bilovodska1
1. Sumy State University (Sumy, Ukraine)
Section:
Innovations in Marketing
Pages:
85 - 97
Language:
Ukrainian
DOI:
10.21272/mmi.2017.2-08


Annotation

In current conditions the industrial product’s market characterizes by a significant increase in competition. It requires all its subjects not only react quick to changes in the environment, but also apply appropriate management tools for more flexible response. Problems of good’s distribution (or sales) require increased attention, because they are very effective solution to retain existing and attract new customers.

The aim of this article. The aim of this article is to deepen the theoretical foundations of marketing industrial policy based on the approach to systematize and clarify the economic essence of marketing distribution and sales policies, to research the functional content and to prove the role and importance of marketing distribution policies for different functional levels of management.

Research results. The article systematizes the definitions of marketing distribution policy. In this case, the existing interpretation of the author’s concept divides into groups.

The first is the sale approach. The main objective is to meet the needs of the consumers in the distribution, including the physical distribution, that direct moving goods from producer to buyer, and marketing component, which ensures the achievement of sales targets.

The second is the distribution approach. The main task of marketing distribution policy is to develop a set of measures and the operations that involve planning, organization, management and control of the products’ movement to consumers.

The third is the logistics approach. The main characteristic is the physical movement of goods, in accordance with the logistical requirements for product, place, time, conditions and price movements. Also it aims to meet the requirements for economies of scale logistics activities through the harmonization of transaction units packaging, storage, cargo handling and transportation of products.

The author proposes own definition, which is formed on the association of isolated approaches. Thus, marketing distribution policy is a set of measures and the operations aimed at the effective planning, organization, management and control of products delivery and services to customers to meet their needs and receive profits according to logistic regulations.

The tasks of marketing distribution policy were defined. Among the logistical tasks the author creates an integrated system of regulation and control of trade and traffic flows that accompany it (financial, information, etc.). it would ensure the timeliness, quality and delivery of the required number of products to customers; formation of procurement of raw materials, etc; determine the physical movement of goods technology, coordination and organization of goods movement (order processing, packaging, equipment, canning, storage, creation of necessary inventory and their maintenance, receipt and shipment of goods, transportation products); developing ways to manage the goods movement; organization of pre-sale and after-sales services; acceptance of orders with the highest quality and in a short time and others. Within the distributional tasks author allocates the research, development, justification and effective channels of distribution and goods movement; establish a balance between the needs and possibilities of procurement and production; choice of methods, channels and distribution structure, formation of goods movement; analysis of the forms and methods of intermediaries in the channels; selection and distribution of policy in a competitive environment; determining strategies movement of goods; planning process and other product sales. In group of sales tasks author identifies the organization of channels; policy coordination selling goods to final consumers with the policy of their production; organization of work with final consumers and so on.

It was established that the concept of marketing distribution policy is closely connected with the sale policy of the company. And it was selected three groups that characterize the existing definitions: 1) concepts identification; 2) prioritization of objectives of the enterprise in products sales; 3) customer orientation.

According to the results of the study author singles out the functional meaning of «marketing distribution policies» and «sales policy» and founds that the marketing distribution policy is a broader concept than market policy. Therefore author formulates the own definition of marketing policy of the enterprises that provides a set of marketing strategies (positioning, market coverage, others) and a set of measures, decisions and actions products aimed at the final consumers.

It was proved that marketing distribution policy is foundation of business and core of any business projects, it plans future schemes of marketing. In this regard, author develops the scheme, which represents the marketing distribution policy as integrator of production and the market. It was shown that the main impetus to the interaction of its elements are management decisions and work with internal and external information. And also it was proposed to divide the marketing distribution policy into three levels (national, regional and entrepreneurial) which has to balance all the problems of their relationship, and provide further improve interaction through the use of innovative technologies in politics distributive companies, regions, industries and the state as a whole.

The role and importance of marketing distribution policy according to the various levels of management:

1) the business (enterprise) level:

-       provides feedback from the market, the company provides information on the dynamics and structure of demand, changes in the needs and customers’ preferences;

-       an integral part of the marketing company;

-       the basis for the development of production and engineering, procurement, innovation and financial policies;

-       determine the final result of all company efforts aimed at the development and production to maximize profits directly affects the economic impact of industrial activity, limiting the increase in the cost production, the timing of orders;

-       adapt marketing channels (sales network) according to the consumers demands, providing increased competitiveness on the market;

-       continue manufacturing processes, making preparation of goods for sale;

-       identifies and examines consumers tastes and preferences;

2) regional level:

-       completes the distribution of goods by moving goods to local saturation of commodity markets, providing the need for a particular product;

-       has an active influence on the participants’ channels and producers by providing them with raw materials and resources, performance of brokerage for the implementation of manufactured products, combining many channels goods movement, forms of sales;

-       creates indirect impact by the wholesale and retail trade in consumer goods through participation in shaping range, its completeness and stability. This wholesale carries a large amount of auxiliary manufacturing operations in the transformation of the product range in retail, preparation of inventories to final implementation to customers. It helps to improve the entire process of goods movement, raise the level of commercial service;

-       provides channels of distribution aimed at ensuring the availability of goods and services that meet the demand of customers for the range, quality, price and high service;

-       improves marketing communications (both internal and external), provides enterprise managers with the authority to create information-management system of market regulation to reduce the value chain between producer and consumer to save resources as an individual, and the region as a whole;

3) national (inter-regional) level:

-       members of the distribution system are the basis for goods moving to meet the needs of domestic and foreign manufacturers by suppling them raw and finished products. The main priority is to promote production and sales of domestic products in domestic and foreign markets;

-       rational organization of the final phase of each social production’s cycle, ensuring of products’ fast and stable movement to the consumers, implementation of mobile money’s circulation.

In addition, the author shows that the marketing distribution policy has social value. Today it is not limited only by reducing the time, effort and money required to purchase goods and services. Distribution, together with the associated infrastructure is essential resource to reduce unemployment, especially youth employment, it is the source of entrepreneurs and employees income.

Conclusions and directions of further researches. The obtained results develop marketing theory in the formation of preconditions of goods distribution strategies management. Further research should focus on the development and scientific substantiation of appropriate methodological tools.


Keywords
marketing distribution policy, marketing policy, sale, distribution, logistics, industrial enterprise


Links
  1. Dejan, A., Bukerel, F., Lankar, R., & et al. (1993). Akademiia rynka: marketing [Academy of the market: marketing]. Moscow, Ekonomika [in Russian].
  2. Balabanyts, A.V. (2000). Zbutova diialnist torgovelnyh pidpryiemstv v umovah marketynhovoi oriientatscii [Goods sale activity of enterprises in marketing conditions]. Extended abstract of candidate’s thesis. Donetsk, DonDUET [in Ukrainian]. 
  3. Balabanova, L.V., & Mytrohina, Yu. P. (2011). Upravlinnia zbutovoiu politykoiu [Management marketing policy]. Kyiv: Tsentr uchbovoi literatury [in Ukrainian].
  4. Balabanova, L.V., & Balabanits, A.V. (2003). Marketinhovyi audit sistemy sbyta [Marketing audit of the sales system]. Donetsk, DonGUET [in Russian].
  5. Bolt, G. Dzh. (2001). Prakticheskoe rukovodstvo po upravleniiu sbytom [Practical guide to sales management]. Moscow, MT-Press [in Russian].
  6. Burtsev, V.V. (2002). Sovershenstvovanie sistemy upravleniia sbytom produktsii [Improving the system of sales management]. Marketing v Rossii i za rubezhom – Marketing in Russia and Abroad, 6. Retrieved from http://www.mavriz.ru/articles/2002/6/128.html [in Russian].
  7. Voronina, O.M. (2008). Upravlinnia zbutovoiu politykoiu farmatsevtychnyh pidpryiemstv-vyrobnykiv [Management of the pharmaceutical enterprises-producers a sale policy]. Extended abstract of candidate’s thesis. Kharkiv, KhNEU [in Ukrainian]. 
  8. Gamalii, V.F., Romanchuk, S.A., & Fabryka, І.V. (2012). Suchasnі problemy zbutovoi polіtyky ukrainskih pіdpryiemstv [Modern problems of marketing policy of Ukrainian enterprises]. Naukovі pratsі Kіrovohradskoho natsіonalnoho tehnіchnoho unіversytetu. Ekonomіchnі nauki – The Collection of Scientific Works of Kirovograd National University. Economic Sciences, 22(2), 10-13. Retrieved from http://www.kntu.kr.ua/doc/zb_22(2)_ekon/stat_20_1/02.pdf [in Ukrainian]. 
  9. Gogol, G.P., Kolodiychuk, A.V., & Yaremko A.Yu. (2010). Sutnіst zbutovoi dіialnostі mashinobudіvnyh pіdpryiemstv [Essence of sale activity of machine-building enterprises]. Naukovyi visnyk NLTU Ukrainy – Scientific Bulletin of Ukrainian National Forestry University, 20.7, 148-153. Retrieved from http://nltu.edu.ua/nv/Archive/2010/20_7/148_Gogol_20_7.pdf [in Ukrainian].
  10. Godin, A.M. (2006). Marketynh [Marketing]. Moscow, Dashkov i K [in Russian].
  11. Grechukha, A.O. (2016). Skladovi suchasnoi marketynhovoi polityky rozpodilu produktsii pidpryiemstva [The components of modern marketing distribution policy]. Ekonomika i suspilstvo – Economy and Society, 4, 132-137. Retrieved from http://www.economyandsociety.in.ua/journal/4_ukr/20.pdf [in Ukrainian].
  12. Ishchenko, N.V. (2005). Zbutova diialnist promyslovoho pidpryiemstva: problema ta pidkhody do vyznachennia zmistu [Sales activity of industrial enterprises: problems and approaches to determining the content]. Ekonomika: problemy teorii ta praktyky – Economy: problems of theory and practice, 208 (Vols. 2), 298 [in Ukrainian].
  13. Kalchenko, A.G. (2003). Lohistyka [Logistics]. Kyiv, KNEU [in Ukrainian].
  14. Kamilova, S.R., & Jatsun, Yu.Yu. (2011). Upravlinnia zbutovoiu diialnistiu [Management of sales activity]. Problemy pidvyshchennia efektyvnosti infrastruktury – Improving the Efficiency of Infrastructure Problems, 31, 15 [in Ukrainian].
  15. Kliuchnyk, A.V. (2015). Zbutova polityka ta ii znachennia u rozvytku zovnishnioekonomichnoi diialnosti pidpryiemstva [Sales policy and its importance in the development of international business activity]. Globalni ta natsionalni problemy ekonomiky – Global and National Problems of Economy, 4, 414-418. Retrieved from http://global-national.in.ua/archive/4-2015/87.pdf [in Ukrainian].
  16. Kovalchuk, S.V. (Eds.). (2011). Marketynh [Marketing]. Lviv, Novyi Svit-2000 [in Ukrainian].
  17. Kryveshko, O.V. (2006). Upravlinnia zbutovoiu diialnistiu pidpryiemstv v umovakh rynkovoi transformatsii ekonomiky Ukrainy [Managing of distribution activity of enterprises in transformation economics]. Extended abstract of candidate’s thesis. Lviv, LNU [in Ukrainian].
  18. Krykavskyy, Ye.V., Kosar, N.S., & Chubala, A. (2009). Marketyngova polityka rozpodilu [Marketing distributive policy]. Lviv : Lvivska politekhnika [in Ukrainian].
  19. Krylova, G.D., & Sokolova, M.I. (1999). Marketing. Teoriia i 86 situatsii [Marketing. Theory and 86 situations]. Moscow, JuNITI-DANA [in Russian].
  20. Kukura, S.P., & Trushnikova, I.O. (2008). Marketing: praktikum po kursu [Marketing: practice on the course]. G.L. Bagiev (Eds.). Saint Petersburg: SpbGUEF [in Russian].
  21. Illiashenko, S.M. (Eds.). (2009). Marketynh: bakalavrskyi kurs [Marketing: bachelor course]. Sumy: VTD «Universytetska knyha» [in Ukrainian]. 
  22. Maslova, T.D., Bozhuk, S.G., & Kovalik, L.N. (2002). Marketing [Marketing]. Saint Petersburg: Piter [in Russian].
  23. Nadtoka, T.B., & Zhygulina, A.Yu. (2009). Udoskonalennia zbutovoi polityky pidpryiemstva koksokhimichnoi promyslovosti v umovakh vstupu do SOT na osnovi sotsialnoho pidkhodu [Improving the sales policy of the coke industry’s company in terms of WTO accession on the basis of social approach]. Visnyk Khmelnytskogo natsionalnoho universytetu – Herald of Khmelnytskyi national university, 5 (Vols. 3), 98-102 [in Ukrainian].
  24. Naumov, V.N. (1999). Marketing sbyta [Sales marketing]. G.L. Bagiev (Ed.). Saint Petersburg: SpbGUEF. Retrieved from http://marketing-digital.ru/library/7.pdf [in Russian].
  25. Odarchenko, A.M., & Odarchenko, M.S. (2015). Analiz zbutovoi polityky pidpryiemstva ta rekomendatsii shchodo ii udoskonalennia [Analysis of enterprise sales policy and recommendations for its improvement]. Scientific Journal «ScienceRise», 2/3(7), 70-73. Retrieved from http://nbuv.gov.ua/UJRN/texc_2015_2%283%29__14 [in Ukrainian].
  26. Oklander, T.O. (2012). Metody doslidzhen zbutovykh ryzykiv promyslovykh pidpryiemstv [Research methods of sales industrial risks]. Naukovi pratsi Donetckoho natsionalnoho tekhnichnoho universytetu. Seriia: ekonomichna  – Scientific works of Donetsk National Technical University. Series: economic, 41, 44-48. Retrieved from http://ea.donntu.org:8080/jspui/bitstream/123456789/27891/1/44.pdf [in Ukrainian].
  27. Osnach, O.F., Pylypchuk, V.P., & Kovalenko, L.P. (2011). Promyslovyi marketynh [Industrial marketing]. Kyiv, Tsentr uchbovoi literatury [in Ukrainian].
  28. Pavlenko, A.F., & Voichak, A.V. (2003). Marketynh [Marketing]. Kyiv, KNEU [in Ukrainian].
  29. Perebyynis, V.I. (2016). Marketyngove upravlinnia tovarnymy potokamy v konteksti rozvytku marketynhu, menedzhmentu ta lohistyky [Marketing management of product flow in the context of marketing, management and logistics]. Marketynhova diialnist pidpryiemstv: suchasnyi zmist – Marketing activity of the company: modern sense. N.V. Karpenko (Ed.). Kyiv, Tsentr uchbovoi literatury [in Ukrainian].
  30. Petropavlovska, S.Ye., Komandrovska, V.Ye., & Khmelnytska, O.V. (2008). Marketynhova polityka rozpodilu [Marketing distributive policy]. Kyiv, NAU. Retrieved from http://www.lib.nau.edu.ua/booksfornau/2008/petropavlovska.pdf [in Ukrainian].
  31. Petrunja, Yu.?Ye. (2007). Marketynh [Marketing]. Kyiv: Znannia [in Ukrainian].
  32. Prymak, T.O. (2004). Marketynh [Marketing]. Kyiv: MAUP [in Ukrainian].
  33. Rozhko, V.I. (2006). Obgruntuvannia obsiahiv zbutu ta polityky rozpodilu spozhyvchykh tovariv [The substantion of volume market and basings of consumers’ article policy]. Extended abstract of candidate’s thesis. Kharkiv: KhNEU [in Ukrainian].
  34. Syvanenko, G.P., Korolchuk, O.P. & Toropkov, V.M. (n.d.). Formuvannia kanaliv rozpodilu v systemi marketynhu torgovelnyh pidpryiemstv [Formation of distribution channels in the marketing system of trading companies]. www.kpi.kharkov.ua. Retrieved from http://www.kpi.kharkov.ua/archive/Наукова_періодика/vestnik/Технічний%20прогрес%20та%20ефективність %20виробництва/2010/62/2_10.pdf [in Ukrainian].
  35. Sygyda, L.O. (2014). Vybir marketynhovykh kanaliv dlia rozpodilu innovatsiinoi produktsii promyslovykh pidpryiemstv [Selection of marketing channels for the distribution of industrial enterprises’ innovative products]. Marketynh i menedzhment innovatsii – Marketing and Management of Innovations, 1, 192-20 [in Ukrainian].
  36. Uollas, T., & Stal, R. (2010). Planirovaniie prodazh i operatsii [Planning of sales and operations]. Saint Petersburg: Piter [in Russian].
  37. Sharapa, O.M. (2015). Orhanizatsiino-ekonomichni zasady formuvannia zbutovoi polityky silskohospodarskyh pidpryiemstv [Organizational-economic bases of marketing policy formation of agricultural enterprises]. Candidate’s thesis. Kyiv, Natsionalnyi Naukovyi Tsentr «Instytut Agranoi ekonomiky». Retrieved from http://www.btsau.kiev.ua/ sites/default/files/news/pdf/dis_sharapa.pdf [in Ukrainian].
  38. McKinnon, C. Alan (1989). Physical Distribution Systems. Routledge, London. Retrieved from http://books.google.ru/books?id=tMcOAAAAQAAJ&printsec=frontcover&dq=distribution+mckinnon&hl=ru&sa=X&ei=7qvyT_3RAeSM4gTu9py6CQ&ved=0CDAQ6AEwAA#v=onepage&q=distribution%20mckinnon&f=false.