Management of the organization process of the company strategic partnership: marketing aspect

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Management of the organization process of the company strategic partnership: marketing aspect

Tetiana Chunikhina

PhD in Economics, Associate Professor, State University of Trade and Economics

Viktoriia Datsenko

PhD in Economics, Associate Professor, University of customs and finance

Iryna Kyrchata

PhD in Economics, Associate Professor, Kharkiv National Automobile and Highway University

Larysa Harmider

Doctor of Economics, Professor, Ukrainian State University of Chemical Technology

Introduction. The process of marketing formation of partnerships between the subjects of economic activity entering into the interaction is investigated and the methodical approach to numerical evaluation of this process is justified taking into account aspects of their production activity. As the environment becomes more complex, increasingly competitive and less predictable, a company, if it wants to survive, must operate at the higher level and involve a wide range of capabilities. Development of multiple capabilities and achieving benefits across a range of activity indicators puts managerial dilemmas at the company which cannot be solved as a simple compromise. The company must be effective today and at the same time adapt to the future; it must produce low- value goods and innovations; she needs to use the vast resources of the large corporation and demonstrate entrepreneurial talent; they must achieve high levels of reliability and consistency and be flexible adapting to changes.

The purpose of the paper is to substantiate theoretical and methodological foundations and develop practical recommendations for the formation of marketing strategy of the industrial company on the basis ofpartnerships.

Results. A methodological approach to the formation and development of the network marketing structure based on partnerships in the supply and sales channels of industrial products has been developed. The model of the organization process management of the strategic partnership of the company was substantiated, which involves highlighting of the company-integrator, which has the greatest degree of influence on the participants of the supply and sales channel on the principles offlexible partnership marketing.

Conclusion. Thus, the starting point for building partnerships is to determine the specific demand, supply and other factors of the internal and external environment of the companies involved in this channel. It is expediently to determine the general approach of creating such a channel on the example of specific companies. But in order to solve the tasks of a particular company, it is necessary to develop a methodology to justify the choice of a particular form or its combinations, which provides the most rational marketing strategy for each enterprise from a number ofpartners in a particular industry.

Keywords: strategic partnership, company-integrator, network organization, process management, marketing

УПРАВЛІННЯ ПРОЦЕСОМ ОРГАНІЗАЦІЇ СТРАТЕГІЧНОГО ПАРТНЕРСТВА КОМПАНІЇ: МАРКЕТИНГОВИЙ АСПЕКТ

Тетяна Сергіївна ЧУНІХІНА

к.е.н., доцент, Державний торговельно-економічний університет

Вікторія Володимирівна ДАЦЕНКО

к.е.н., доцент, Університет митної справи та фінансів

Ірина Миколаївна КИРЧАТА

к.е.н., доцент, Харківський національний автомобільно-дорожній університет

Лариса Дмитрівна ГАРМІДЕР

д.е.н., професор, Український державний хіміко-технологічний університет

Вступ. Досліджено процес маркетингового формування партнерських відносин між суб'єктами господарської діяльності, що вступають у взаємодію, та обґрунтовано методичний підхід до чисельного оцінювання цього процесу з урахуванням аспектів їх виробничої діяльності. Оскільки середовище стає все більш складним, все більш конкурентним і менш передбачуваним, компанія, якщо вона хоче вижити, повинна працювати на вищому рівні та залучати широкий спектр можливостей. Розвиток різноманітних можливостей і досягнення переваг за низкою показників діяльності ставить перед компанією управлінські дилеми, які неможливо вирішити простим компромісом. Компанія повинна бути ефективною сьогодні і водночас адаптуватися до майбутнього; він повинен виробляти маловартісні товари та інновації; їй необхідно використовувати величезні ресурси великої корпорації та демонструвати підприємницький талант; вони повинні досягти високого рівня надійності та послідовності та бути гнучкими, адаптуючись до змін.

Мета роботи - обґрунтування теоретико-методологічних засад та розроблення практичних рекомендацій з формування маркетингової стратегії промислового підприємства на засадах партнерства.

Результати. Розроблено методичний підхід до формування та розвитку структури мережевого маркетингу на основі партнерства в каналах постачання та збуту промислової продукції. Обґрунтовано модель управління процесом організації стратегічного партнерства компанії, яка передбачає виділення компанії-інтегратора, яка має найбільший ступінь впливу на учасників каналу постачання та збуту на принципах маркетингу гнучкого партнерства. management company strategic partnership

Висновок. Отже, відправною точкою для побудови партнерства є визначення конкретного попиту, пропозиції та інших факторів внутрішнього і зовнішнього середовища компаній, задіяних у цьому каналі. Загальний підхід до створення такого каналу доцільно визначити на прикладі конкретних компаній. Але для вирішення завдань конкретного підприємства необхідно розробити методологію обґрунтування вибору тієї чи іншої форми або її комбінацій, яка забезпечує найбільш раціональну маркетингову стратегію для кожного підприємства з числа партнерів певної галузі.

Ключові слова: стратегічне партнерство, компанія-інтегратор, мережева організація, управління процесом, маркетинг

INTRODUCTION

During the process of interaction strategies development, such marketing structures of partnership which to a certain extent indirectly control the resources owned by other companies. Emergence of these partner structures is a result of the shift in the views of leading marketers on the role of supplier relationships, which in turn has changed these relationships.

Companies use mainly two forms of interaction for obtaining competitive advantages between their variety. They are: absorption and merge to create large corporations.

As practice shows, such forms of business organization do not give a tangible economic effect, which raises the question of the need to develop new approaches to the formation of marketing strategies for the interaction of industrial companies. These approaches should be focused on building and maintaining long-term relationships with business partners.

Industrial companies have already used temporary partnerships as means of risk sharing between companies in the fifties. In this regard, scientists and marketing experts realized the need for a detailed and comprehensive study of the rationality of the company interaction forms [1].

Over the last thirty years, as a result of the transformation and globalization of market processes, the issues of cooperation and forms of interaction between the company and entities of external environment have become relevant [2].

A lot of research is devoted to the features of using cooperation strategies [3].

The overwhelming majority of scientists considered this problem in terms of gaining competitive advantage, which is primarily about minimizing the cost of interaction [4]. Only recently the focus has shifted to the use of partnerships to form company development strategies.

Awareness of the partnership importance has become a particularly topical issue in many fields of activity due to the dynamic and rapid nature of the environment [5].

It requires companies to focus on main competencies interacting with external potential partners on the basis of long-term relationships [6].

Cooperation between partners exists at all stages of the relationship. The problem of relationships is the degree of their interaction closeness, and the transition from one form to another one depends on the effectiveness of the use of specific interaction strategies and factors having a subjective and objective character [7].

Interaction strategy refers to the orientation of the marketing activities of the company towards the achievement of marketing goals through the organization of interaction with partners in a certain form [8]. In this regard, ensuring the involvement of partners in the creation of common value requires the development of relationships gradually and taking into account the peculiarities of the company's activities.

Although relationships are considered in the context of business organizations, for example through intermediaries, end-users, and competitors, today research focuses on "supplier-to-consumer" relationships and it is considered as a general model of relationships between companies in the supply and sales channels [9].

The various branches creating the link itself are recognizable elements of interaction which can be analyzed within the framework of the relationship between the supplier and consumer. It allows easy applying marketing concepts and encourages the understanding and application of strategic tools related to relationship justification [10].

The process of interaction of subjects in the supply and sales channels implies that there is a certain individual specific interdependence for a certain time between them [11].

Management of such process requires the mechanisms development for their coordination in order to achieve the ultimate goals of each interaction subject and to reduce uncertainty in terms of purchasing raw materials for their own production, as well as the sale of final products.

According to the current management theories [12], today there are two main approaches to substantiate the relationships of entities in the supply and sales channels: one of them is based on the analysis of transaction costs, other one - on partner relationships.

According to the first approach, a company operating in a network of contracts bears the costs of both contracting these agreements and control for compliance with conditions having been agreed by default. Numerous researchers involved in the formation of transaction cost theory. It has led to many interpretations of transaction costs and ways to minimize them.

Scientists of this theoretical school have proved that coordination and management of the resulting structures is characterized by an increase of production costs due to rise in the size of the structure, which will exceed the transaction costs of market interaction at some point [13].

I. e. there is a certain objective boundary for the expansion of entrepreneurial coordination of the relationships between the entities and extension of the "contracts network" [14].

Coordination of relationships between entities from a single center requires considerable cost to coordinate the functioning of production. These costs of bureaucratic control are increased in direct proportion to the rise of the organization. At the same time, this form also does not provide adaptation to the transience of the external environment.

Thus, integration, on the one hand, leads to reduce of transaction costs and, on the other hand, to increase of production costs and decrease of adaptability [15].

It should also be noted that creation of additional bureaucratic structures reduces opportunities to quickly interact with companies left outside the relevant integration process [16].

The PURPOSE of the study is to substantiate theoretical and methodological foundations and develop practical recommendations for the formation of marketing strategy of the industrial company on the basis of partnerships.

METHODS

The following methods were used in the research: logic-analytical and generalizations - in the analysis of the basic theoretical approaches to the formation of the companies interaction strategy and stages of formation of the theory of partnerships marketing; standard methods of qualitative and quantitative marketing research - in the analysis of the peculiarities of the formation of the interaction strategy of industrial enterprises with partners and models of interaction management in industrial partnerships with the allocation of company-integrator.

RESULTS

Long-term supplier-consumer partnerships need constant monitoring and consistent marketing policies to ensure their sustainable nature. Thus, even the simplest case of deepening partnerships between two companies requires the identification of the company-integrator.

The company-integrator is a company-participant of the channel having the highest degree of influence on other participants, performs the functions of conducting research of external environment and coordination the actions of all channel members in order to obtain additional claims. At the same time, it is able to evaluate effectiveness of each participant in the supply and sales channel on the basis of partnerships marketing. The mechanism for ensuring the implementation of these functions is conducted through providing guidance to each participant.

Such interaction takes place in different marketing forms - from one-time transactions to close cooperation. In this case, the pairwise coordination does not provide an immediate response to changes in circumstances in the interaction of individual channel branches of the product supply and sales. In such circumstances, it's necessary to be determined with a single coordinator of all units providing the production and consumption of the relevant end product, i.e. with the company-integrator.

The level of dependence, as the main indicator of the integrator revealing, is a complex indicator, calculated by assigning points to its determinants by the method of expert evaluation, taking into account the quantitative values of the actual indicators.

The main determinants of the degree of dependence on the previous element are the differentiation and volumes of raw materials purchased for production; availability of substitute resources; the cost of possible changes to the supplier; the level of concentration of suppliers; value of orders for suppliers; cost of purchase in relation to the total costs; the impact of the cost of the resource on the value of the product.

The main determinants of the degree of dependence on the following element are the buyer's concentration compared to the concentration of competing companies; volume of purchases by buyers; cost of buyers to change supplier; requirements for the level of product standardization; awareness of the buyer; availability of goods - substitutes; value for money and total volume of purchases; expected consumer benefits. Each determinant of the dependence degree on both the supplier and the consumer is calculated on the 6-point scale (from 0 - no impact to 5 - very high), as shown in Tables 1-2.

Table 1 - Indicators of the dependence degree on the previous entity in supply and sales channel based on partnerships marketing (author's study)

Table 2 - Indicators of the dependence degree on the next entity in supply and sales channel based on partnerships marketing (author's study)

Determining the dependence degree of partners, the experts used quantitative values of such actual indicators as "costs of possible changes of the supplier", "number of alternative suppliers", "weight of orders for suppliers in the structure of its revenue", "number of other industries needed in supplier's products", "purchase cost in relation to the total cost of the company", "volume of purchases by buyers", "buyers' cost to change the supplier", "elasticity of demand (price ratio and the total volume of procurement)" and then normalized by five-point scale.

The general index of the dependence degree of one company on another is calculated as the arithmetic mean of all its determinants. This dependence degree completely determines the degree of influence of one company on another.

Since the dependence degree completely determines the degree of influence, the company, which according to the results of the analysis has the highest total score (standardized to 100 points) of the degree of influence on the participants of the partnership, is selected by the company-integrator.

If the total degree of influence of the individual company approaches 100, then it is typical for the formation of the system with rigid vertical integration of the type of the corporation. If the indicator approaches 0, the relationships are competitive, which makes it impossible to establish in-depth partnerships, so it's difficult to implement partnership.

As a result, the dependence degree of partners on servicing companies producing consumables and components is high. In order to ensure a guaranteed supply of products and coordinate production programs, partners have to comply with their requirements. Therefore, the formation of vertical partnerships based on the allocation of the service company producing consumables by the company-integrator is the most rational.

CONCLUSION

Formation of the model of partnerships management on the basis of highlighting the company-integrator allowed to establish the following:

- relationships between companies which are potential participants in the partnership can be described by the basic graph of direct and inverse dependencies, whose vertices are companies, and oriented edges describe the relationships (direct and inverse) between them. The weight of each edge is determined by the determinants of dependence.

- it is advisable for the company-integrator to choose the enterprise which has the greatest value of the weight of all (direct and indirect) relationships calculated on the basis of the basic graph of direct dependencies according to the methodical approach developed.

Thus, the process of forming a strategy of industrial company's interaction on the basis of partnership marketing is complicated by a number of factors, namely:

- strategy must take into account the characteristics of industrial companies, because each type of manufactured goods has its own specification, which determines the principles of the strategy formation;

- strategy must coordinate the impact and interconnections of participants of the supply and distribution channel, taking into account the factors of the internal and external environment of each entity;

- the strategy must take into account the interests and goals of all actors involved;

- key criteria should be identified to evaluate the effectiveness of strategy implementation;

- strategy must be adaptive, the mechanism of its adjustment should be implemented in accordance with changes in the marketing environment;

- it's necessary to determine which participants of the distribution and supply channel formulate an interaction strategy and what key parameters is necessary to know to form it.

References

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2. Aghakhani H., Carvalho S.W., Cunningham P.H. When partners divorce: understanding consumers' reactions to partnership

termination in cause-related marketing programs. International Journal of Advertising. 2019. pp. 1-23. URL:

https://www.tandfonline.com/doi/abs/10.1080/02650487.2019.1648139

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4. Alvarez-Gonzalez L.I., Garcia-Rodriguez N., Rey-Garda M., Sanzo-Perez M.J. Business-nonprofit partnerships as a driver of internal marketing in nonprofit organizations. Consequences for nonprofit performance and moderators. BRQ Business Research Quarterly. 2017. № 20(2). pp. 112-123. URL: https://www.sciencedirect.com/science/article/pii/S2340943617300014

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service. International Journal of Integrated Supply Management. 2017. № 11(2-3). pp. 217-235. URL:

https://www.inderscienceonline.com/doi/abs/10.1504/IJISM.2017.086213

6. Srivastava P., Iyer K.N., Rawwas M.Y. Performance impact of supply chain partnership strategy-environment co-alignment.

International Journal of Operations & Production Management. 2017. № 37(7). pp. 927-949. URL:

https://www.emerald.com/insight/content/doi/10.1108/IJ0PM-09-2015-0586/full/html

7. Morgan N.A., Whitler K.A., Feng H., Chari S. Research in marketing strategy. Journal of the Academy of Marketing Science. 2019. № 47(1). pp. 4-29. URL: https://link.springer.com/article/10.1007/s11747-018-0598-1

8. Nazli F., Romano R., Ismayani I. The Livestock Partnership Development Strategy between Companies and Farmers in Greater Aceh Regency. International Journal of Multicultural and Multireligious Understanding. 2019. № 6(4). pp. 166-174. URL: https://ijmmu.com/index.php/ijmmu/article/view/959

9. Umar A., Sasongko A.H., Aguzman G. Business model canvas as a solution for competing strategy of small business in Indonesia. International Journal of Entrepreneurship. 2018. № 22 (1). URL: https://www.abacademies.org/articles/business-model- canvas-as-a-solution-for-competing-strategy-of-small-business-in-indonesia-7024.html

10. Felix R., Rauschnabel P.A., Hinsch C. Elements of strategic social media marketing: A holistic framework. Journal of Business Research. 2017. № 70. pp. 118-126. URL: https://www.sciencedirect.com/science/article/abs/pii/S0148296316302843

11. Sheth J. Revitalizing relationship marketing. Journal of Services Marketing. 2017. № 31(1). pp. 6-10. URL: https://www.emerald.com/insight/content/doi/10.1108/JSM-11-2016-0397/full/html

12. Pomering A. Marketing for sustainability: Extending the conceptualisation of the marketing mix to drive value for individuals

and society at large. Australasian Marketing Journal. 2017. № 25(2). pp. 157-165. URL:

https://www.sciencedirect.com/science/article/abs/pii/S1441358217300137

13. Setiyaningrum W., Peranginangin J. Convergent strategy towards competitive and sustainability competitive advantages in online media competition. International Journal of Civil Engineering and Technology. 2018. № 9(1). pp. 499-507. URL: http://d.researchbib.com/f/0nq3q3YzyuMJ1yYzAioF9ALKA0MKW0MT1cov9IpTkiLJETo2kxMKViFHcQFHIHKmN5KmNkKm N1ZP9WF xAWEIEsZQy sZQSsZQHjYaOxMt.pdf

14. Sudrajat J., Meiryani M. Online marketing partnership application using the concept of business model canvas. ICCD. 2018. № 1(1). pp. 496-500. URL: https://www.iccd.asia/ojs/index.php/iccd/article/view/73

15. Haque A., Ahmed F., Al-Sarwar A.M., Shafiq A. Measuring the impact of marketing capability and market control beliefs on marketing strategy intention: a study on travel and tour agents in Malaysia. International Journal of Islamic Marketing and Branding. 2017. № 2(2). pp. 134-155. URL: https://expert.taylors.edu.my/file/rems/publication/107458_2542_1.pdf

16. Lieb R., Szymanski J. Content-the atomic particle of marketing: the definitive guide to content marketing strategy. Kogan

Page Publishers. 2017. URL:

https://books.google.com.ua/books?hl=uk&lr=&id=zfskDwAAQBAJ&oi=fnd&pg=PP1&dq=partnership+marketing+strategy&ots=5 vGFAbTfwV&sig=bXP_XiZLVYbnaKwHGf6_boDt8EY&redir_esc=y#v=onepage&q=partnership%20marketing%20strategy&f=false

Список використаних джерел

1. Ratnawati R. Partnership strategy and competitive advantage to improve the performance of msmes in the creative industry. JurnalAplikasiManajemen. 2019. № 17(4). URL: https://jurnaljam.ub.ac.id/index.php/jam/article/view/1584

2. Aghakhani H., Carvalho S.W., Cunningham P.H. When partners divorce: understanding consumers' reactions to partnership termination in cause-related marketing programs. International Journal of Advertising. 2019. pp. 1-23. URL:

https://www.tandfonline.com/doi/abs/10.1080/02650487.2019.1648139

3. Waskowski Z. Strategy of Coopetition. Value-Creating Networks of Partnership Relations-The Case of a Sports Market.

Management International Conferenc. (Venice, Italy. 24-27, May 2017). Venice, 2017. pp. 13-21. URL:

http://www.hippocampus.si/ISBN/978-961-7023-71-8/1.pdf

4. Alvarez-Gonzalez L.I., Garcia-Rodriguez N., Rey-Garda M., Sanzo-Perez M.J. Business-nonprofit partnerships as a driver of internal marketing in nonprofit organizations. Consequences for nonprofit performance and moderators. BRQ Business Research Quarterly. 2017. № 20(2). pp. 112-123. URL: https://www.sciencedirect.com/science/article/pii/S2340943617300014

5. Tai Y.M., Ku Y.C. From value generating to partnership creating: highlighting the business-to-business information sharing

service. International Journal of Integrated Supply Management. 2017. № 11(2-3). pp. 217-235. URL:

https://www.inderscienceonline.com/doi/abs/10.1504/IJ[SM.2017.086213

6. Srivastava P., Iyer K.N., Rawwas M.Y. Performance impact of supply chain partnership strategy-environment co-alignment.

International Journal of Operations & Production Management. 2017. № 37(7). pp. 927-949. URL:

https://www.emerald.com/insight/content/doi/10.1108/IJ0PM-09-2015-0586/full/html

7. Morgan N.A., Whitler K.A., Feng H., Chari S. Research in marketing strategy. Journal of the Academy of Marketing Science. 2019. № 47(1). pp. 4-29. URL: https://link.springer.com/article/10.1007/s11747-018-0598-1

8. Nazli F., Romano R., Ismayani I. The Livestock Partnership Development Strategy between Companies and Farmers in Greater Aceh Regency. International Journal of Multicultural and Multireligious Understanding. 2019. № 6(4). pp. 166-174. URL: https://ijmmu.com/index.php/ijmmu/article/view/959

9. Umar A., Sasongko A.H., Aguzman G. Business model canvas as a solution for competing strategy of small business in Indonesia. International Journal of Entrepreneurship. 2018. № 22 (1). URL: https://www.abacademies.org/articles/business-model- canvas-as-a-solution-for-competing-strategy-of-small-business-in-indonesia-7024.html

10. Felix R., Rauschnabel P.A., Hinsch C. Elements of strategic social media marketing: A holistic framework. Journal of Business Research. 2017. № 70. pp. 118-126. URL: https://www.sciencedirect.com/science/article/abs/pii/S0148296316302843

11. Sheth J. Revitalizing relationship marketing. Journal of Services Marketing. 2017. № 31(1). pp. 6-10. URL: https://www.emerald.com/insight/content/doi/10.n08/JSM-n-2016-0397/fuU/html

12. Pomering A. Marketing for sustainability: Extending the conceptualisation of the marketing mix to drive value for individuals

and society at large. Australasian Marketing Journal. 2017. № 25(2). pp. 157-165. URL: https://www.sciencedirect.com/science/article/abs/pii/S1441358217300137

13. Setiyaningrum W., Peranginangin J. Convergent strategy towards competitive and sustainability competitive advantages in online media competition. International Journal of Civil Engineering and Technology. 2018. № 9(1). pp. 499-507. URL: http://d.researchbib.com/f/0nq3q3YzyuMJ1yYzAioF9ALKA0MKWOMT1cov9IpTkiLJETo2kxMKViFHcQFHIHKmN5KmNkKm N1ZP9WFxAWEIEsZQysZQSsZQHjYaOxMt.pdf

14. Sudrajat J., Meiryani M. Online marketing partnership application using the concept of business model canvas. ICCD. 2018. № 1(1). pp. 496-500. URL: https://www.iccd.asia/ojs/index.php/iccd/article/view/73

15. Haque A., Ahmed F., Al-Sarwar A.M., Shafiq A. Measuring the impact of marketing capability and market control beliefs on marketing strategy intention: a study on travel and tour agents in Malaysia. International Journal of Islamic Marketing and Branding. 2017. № 2(2). pp. 134-155. URL: https://expert.taylors.edu.my/file/rems/publication/107458_2542_1.pdf

16. Lieb R., Szymanski J. Content-the atomic particle of marketing: the definitive guide to content marketing strategy. Kogan

Page Publishers. 2017. URL:

https://books.google.com.ua/books?hl=uk&lr=&id=zfskDwAAQBAJ&oi=fnd&pg=PP1&dq=partnership+marketing+strategy&ots=5 VGFAbTfwV&sig=bXP_XiZrVYbnaKwHGf6_boDt8EY&redir_esc=y#v=onepage&q=partnership%20marketing%20strategy&f=false

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