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Managing Economic Effectiveness Of Marketing In Transnational Companies

Author

Listed:
  • Oksana Bulkot

    (Department of International Economics and Marketing, Taras Shevchenko National University of Kyiv, Ukraine)

  • Lidia Pashchuk

    (Department of International Economics and Marketing, Taras Shevchenko National University of Kyiv, Ukraine)

Abstract

The purpose. The purpose of the study is a generalization of international experience with regard to marketing efficiency control and development of qualitative and quantitative methods to be implemented in the estimation of marketing activity of TNCs. Methodology. The survey is based on research, conducted for 60 companies in the spring of 2015 (32% of which were Ukrainian and 68% - offices and affiliates of international companies), namely Bayer, Coca-Cola, Pepsi Co, Mondelez, Mars, Mintel, Cargill, and many others. The practical results of monitoring the effectiveness of annual plans of named companies done by authors through implementing original author' methodology based on presenting key performance indicators (KPI). Results. The theoretical approaches to the estimation of marketing efficiency are analysed. The conditions, under which the organization is working by analysing external environment and internal company's potential, are determined. It is substantiated by the authors that direct development of marketing plans should be based on marketing objectives, developed as a result of the situational analysis. It is proved that monitoring the effectiveness of annual plans may be done by implementing key performance indicators that enable to develop quantitative evaluation system of the organization's strategy, based on control of its goals. The results of the research allowed authors to distinguish two major groups of effectiveness indicators for TNCs, which are financial and marketing indicators. In this standpoint, financial indicators are divided into costs', productivity and profitability indicators and to the marketing effectiveness indicators belong market indexes, competitiveness indexes, and client's indicators. Practical implications. The proposed methodology can be implemented for the qualitative and quantitative estimation of marketing effectiveness not only in TNCs but in small and medium business companies as well. Value/originality. The authors proved that marketing effectiveness indicators provide a weighty addition to traditional indicators of financial stability estimation of TNCs.

Suggested Citation

  • Oksana Bulkot & Lidia Pashchuk, 2017. "Managing Economic Effectiveness Of Marketing In Transnational Companies," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 3(2).
    • Handle: RePEc:bal:journl:2256-0742:2017:3:2:3
    DOI: 10.30525/2256-0742/2017-3-2-18-24
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    References listed on IDEAS

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    1. Yuxin Chen & James D. Hess & Ronald T. Wilcox & Z. John Zhang, 1999. "Accounting Profits Versus Marketing Profits: A Relevant Metric for Category Management," Marketing Science, INFORMS, vol. 18(3), pages 208-229.
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    More about this item

    Keywords

    management of company's effectiveness; economical effectiveness; transnational company; marketing management;
    All these keywords.

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • M19 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Other

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