Development of marketing in Azerbaijan

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Development of marketing in Azerbaijan

Subhi Ilqar oglu Maharramli

Baku State University

The main goal of the article is to study activities aimed at marketing development in Azerbaijan. It is noted that benefiting from the synthesis of the national characteristics of the economy (including the experience of the Soviet era) and the world experience is one of the urgent requirements of the modern era.

1. Unsuccessful image campaigns are organized that do not produce any desired intangible effect;

2. Sales of newly launched products are falling;

3. Preference is given to advertising campaigns mainly aimed at financial impact;

4. Absurd models of brand perception emerge as a result of lack of study of brand perception after marketing activities;

5. Low level of service and, as a result, customer satisfaction.

Субхі Ільгар оглу МАГЕРРАМЛІ

Державного університет Баку

РОЗВИТОК МАРКЕТИНГУ В АЗЕРБАЙДЖАНІ

Основною метою статті є вивчення заходів, спрямованих на розвиток маркетингу в Азербайджані. Зазначається, що використання синтезу національних особливостей економіки (зокрема досвіду радянської доби) та світового досвіду є однією з актуальних вимог сучасності.

1. Організовуються невдалі іміджеві кампанії, які не дають бажаного нематеріального ефекту;

2. Продажі нових продуктів падають;

3. Перевага надається рекламним кампаніям, спрямованим переважно на фінансовий вплив;

4. Абсурдні моделі сприйняття бренду виникають внаслідок невивчення сприйняття бренду після проведення маркетингових заходів;

5. Низький рівень обслуговування і, як наслідок, задоволеність клієнтів.

World trends in the development of management theory and practice have created the need to form a marketing system in Azerbaijan. Western marketing experience, which is closely related to the development trends of the society and the external environment of the time, created some obstacles for their application in the national economy of the transitional period, and the local experience of marketing development caused unusual problems for the developed countries of the West. All these problems led to the formation of a new system unique to our country, taking into account the problems of the transition economy in Azerbaijan. In industrialized countries, marketing problems occupy an important place and their solution is given a lot of space. In Azerbaijan, the solution of these problems is not considered comprehensively, only the study of individual aspects of marketing is followed.

Solving marketing problems is one of the important indicators that form the basis of the enterprise and contribute to the efficient functioning of the activity. Despite the fact that the marketing system is present in almost all operating enterprises, its role in the organization of management, its level of development and its effectiveness can be very different. If the marketing activity of a large and medium-sized enterprise is managed by specially allocated divisions or departments, in a small business it is carried out by one person, especially the head of the enterprise. The creation and sale of products and services for various purposes is managed through the marketing mix. In a developed economy, the inefficient functioning of the marketing system leads to the loss of significant revenues and can also lead to huge losses. Competition, the unstable position of the external economic environment, misinformation in market relations contribute to a deeper information analysis of both the general environment and specific markets[17,p. 18].

1. Increasing the efficiency of marketing activities in enterprises and companies. Many enterprises and companies of Azerbaijan are not particularly successful in development. Small growth rates are felt in many enterprises, especially in the last 2 years, both domestically and abroad (in cases where local companies are represented abroad). There are as many Azerbaijani enterprises that export their products as can be counted on the fingers. They also have low sales efficiency and investment quality. A comparison of the quality of the marketing campaigns carried out by our companies and the companies of the neighboring countries in the local markets and the quality of the products in many cases reveals the main shortcomings both in the quality of the products and in the marketing campaigns aimed at increasing sales. Experts believe that the most accurate way to measure the efficiency of the enterprise is to measure the income levels after deducting the expenses. However, some Azerbaijani companies and enterprises with high profits were able to make excess profits due to the following reasons:

1. Lack of main competitors

2. Using methods to increase sales through administrative pressure [1,p.44-45].

The inefficiency of the marketing actions of enterprises and companies is explained by the low efficiency of marketing departments and the low rate of return on short-term investments. The question arises: how to increase the effectiveness of marketing actions? If during the marketing movement, whether it is the release of a new product, a campaign, or an action, the quality of the stages of the marketing movement is poor in the example of Azerbaijan, while marketing research is often incomplete, the problem lies in the absence or low effectiveness of marketing research. Marketing research should not be confused with current data collection and analysis. The main feature of marketing research is the focus on solving a specific marketing problem [4,p.31].

The quantity and quality of research conducted in successful overseas ventures is so high that it is common for the opposite problem--companies to engage in complex market analysis in pursuit of short-term profits. This forces the management of companies to move away from an intuitive approach to doing business. In 90% of cases in Azerbaijan, company management thinks that marketing research is not necessary. The decision to take marketing actions is not based on the analysis of research data, and studies on the effectiveness of marketing projects are generally not conducted. Business leaders rely too much on their intuition and spend a lot of budget marketing funds relying only on their own experience and unsystematized information that reaches them over a period of time. What is the result?

1. Unsuccessful image campaigns that did not produce the desired intangible effect;

2. Low sales of new products;

3. Low indicators of advertising campaigns aimed mainly at material effect;

4. Absurd models of brand perception due to the fact that brand perception is not generally studied after the marketing step and is not taken into account during promotion and campaigns;

5. Low level of service and consequently low customer satisfaction [17,p.19].

At best, research leads refer to a marketer's to-do list. Or as they say in Azerbaijan, "Marketing managers". In principle, there is nothing surprising in a market where the duties of "marketing managers" often include direct sales. Some progressive companies include staff in the marketing department who specialize in conducting such research, which reduces their overall marketing research costs by conducting desk-based analysis and research, which costs the enterprise significantly less. But that doesn't mean cheaper is better. However, the practicality of most desk research is questionable. First, one of the most important conditions for data collection and analysis - objectivity - is completely absent. The marketing department itself, which conducts marketing research, often adapts its results to its own goals and ambitions of managers. However, if the marketing department is properly organized for an important and high-investment marketing step (for example, the launch of a new product), the most effective way is to combine desk research and research with involvement. The analysis of the data transmitted to client companies by marketing research should not include the problems of "advice", "ways to improve" as a result of the research, but only the analytical part of the processing of the collected data. In this case, if the company itself cannot cope with the effective processing of the obtained analytical results, the best scheme for planning the marketing step should be as follows: "Brand company - Research - Marketing - Consulting agency - Marketing department of the client's company" [11, p.112-113].

It is generally accepted that the first companies appeared in the market of marketing research in Azerbaijan in the first half of the 90s. Today, the leading research companies in Azerbaijan are mostly "old-timers" of the business. But even when comparing and equating the turnover of the leaders in this field, such as Era, Siar, Business Insight and others, it is clear that they are incomparable to the companies of Kazakhstan, Georgia, Russia or Turkey markets [3,p.85].

The problems of not conducting marketing research in many companies in Azerbaijan are related to the general inefficiency of the management of these enterprises and lack of clear understanding of development directions and plans to achieve any goal. This "vice" creates another "brainchild" of inefficient management. The lack of control over marketing actions by top management is caused by the lack of a clear framework for key performance indicators. By 2015, a significant part of the enterprises in the financial sector, production and sales sector, as well as other service areas in Azerbaijan received significant income. No one really cared about the efficiency of the funds spent. As a result, top management control over the spent budget was minimal. Now, compared to the period before 2015, due to the unfavorable economic situation in the country, a significant part of the enterprises is experiencing a period of declining revenues, marketing budgets have weakened and there is a need for austerity regime and fundamental control. Everyone understands this, but few know what methods to apply in this situation. In this case, reasonable managers and heads of marketing departments understand that the marketing budget should be kept at least the same amount. The shrinking of the market means that the pressure of certain marketing tools needs to be increased. However, what is needed now is a precise understanding and measurement of the audience targeted by the marketing campaign, and then the measurement of key performance indicators that will lead to immediate cost effectiveness. What is the first tool that companies need in this transition phase? The following points are aimed at finding the answer to this question.

1. Understanding the general positioning in the market today, whatever it may be. Unfortunately, many company managers in Azerbaijan live with illusions about their customers' attitude towards the company. Azerbaijani customer's commitment to enterprises is low. The management is guilty of this. Brand perception and evaluation research is needed to understand the realities of how a company's customers and non-customers perceive it and currently perceive it, and if the budget allows, it is best to outsource this research to a specialized market. If the scale of the company is not large, it is a must if it is possible to conduct a desk analysis based on the "connections" of the customer base and obtain minimal information from the customers of competitors.

2. Clear establishment of the marketing strategy based on the overall development strategy. This stage is considered the most important and difficult to correct the situation in the company. Large companies are still advised to seek serious, outside consulting help with their experience and to entrust them with the work on the analytical data obtained at the first stage, the stage of understanding the current situation. If the scale of the company is small, this stage falls entirely on the shoulders of the marketers of the enterprise. Here, it is important to clearly understand and compare the adequacy of the planned strategy in relation to the market, the overall picture of which was obtained on the basis of desk research, not the establishment of transcendental goals of the market.

3. Conducting research of the target market, target group and characteristics of goods with the main marketing steps. It should be clearly understood that conducting a simple desk research or involving an outside company will save the enterprise tens of thousands of manats that are "wasted" on ineffective promotions, campaigns, products, rebranding and other marketing steps. In the future, there is a need for systematic studies of competitors, prices, product policy, consumer behavior studies, etc.

4. For companies operating in the service sector, it is important to measure the services provided by conducting "qualitative" investigations such as "Mystery Shopper", as well as by examining the effectiveness of sales channels and methods for companies engaged in production and services. Seeing what the customer experiences while using the services is key to improving aspects of the service. Even small companies can carry out these studies. First, such research costs much less than "quantitative" marketing research, and secondly, with some flexibility of the marketing department, you can do this research yourself. It should be remembered that "Mystery Shopper" or monitoring of objects and sales channels will not have the desired effect if it is implemented once. Conducting this type of research in 4 waves (4 times a year) is the minimum condition necessary for a clear description of the effectiveness of the steps taken to improve the service.

5. The last item in the basket of general mandatory studies is the measurement of the level of advertising effectiveness. To date, there is no clear understanding of performance evaluation, in general, there are up to 10 methods for evaluating the effectiveness of advertising campaigns. Effectiveness measurement includes at least the measurement of communicative effectiveness. Measuring advertising effectiveness is much more difficult than communicative effectiveness [8,p.117].

Measuring advertising effectiveness is a very complex and in-depth process with extensive methodology and is best left to professional research companies. Considering the situation in the enterprise where people work or manage, it can be concluded that marketing research is the best tool to improve the efficiency of marketing steps. The understanding of this will come to the management of Azerbaijani companies sooner or later. Today, it must be clearly understood that reducing marketing costs for advertising and promotion of products is not the way out. The way out is to change the conjuncture of marketing budgets, where costs will be distributed in a balanced way between marketing research and subsequent effective advertising costs [6].

3. Expanding the scope. In the process of improving the marketing mix, expanding the scope is one of the main driving factors [9, p.61]. As experience shows, most enterprises that need marketing changes distribute information only on one of the platforms. The information on such platforms changes over several months, which delays the distribution of information. The improvement of the general marketing system is closely related not only to the improvement of the internal situation of the enterprise, but also to external factors. It is competition that often has a strong influence on the activity of firms, either motivating for further development or overtaking other firms. All commercial enterprises carry out competitor analysis, but experience shows that in most cases it does not go beyond the usual quality control and general analysis from a distance of the products and services offered. To gain a deeper understanding of a competitive firm's position, marketers must establish close personal relationships with consumers, learn exactly what they like about competing products, and what that company lacks in order to increase sales [12, p.1300]. This step will not only help to identify the shortcomings of production, but will also have a psychological effect on consumers, will appreciate the attention and consideration of buyers.

Scientific research in the field of marketing shows that most customers are dissatisfied with the lack of attention paid to their opinion. In the process of improving marketing, companies that focus on creating a complex, close relationship with customers create special content, implement projects that take into account the opinions of consumers, their suggestions, and thereby provide support. Establishing close contacts with customers and their communication with each other helps to expand the reach of products [9, p.132-133].

As you know, due to the collapse of the USSR, the former republics, including the Republic of Azerbaijan, began to make efforts for the rapid development of their national economies, and for this purpose, it was necessary to form their own national economic model. After all, after gaining independence, these countries had to master many elements of market relations in the conditions of globalization and develop their immunity, thereby creating stable sectors of the economy and increasing the competitiveness of the entire country's economy.

The Republic of Azerbaijan is rich in natural resources and has strong potential in extractive industries (especially oil and gas), non-oil sectors, including competitive industries [2]. The country has abundant mineral resources and raw materials. Azerbaijan was most famous for its oil and fuel-energy resources, which were intensively produced for more than 100 years. After gaining independence, the implementation of the national oil strategy began, which gave a strong impetus to the development of an accelerated model of the country's economic development, especially the development of industries [5, p.78]. In the last 10 years, oil production in Azerbaijan has increased approximately 5 times. It should be noted that confirmed reserves of hydrocarbons in the country amount to 4 billion tons of oil equivalent. In the last 5 years, the country's economy has increased 2.6 times, and budget expenses have increased more than 10 times. Socio-economic problems in the country are successfully solved, the level of poverty and unemployment has sharply decreased due to the creation of 766,000 jobs. Azerbaijan is the initiator and active financial donor of all major regional projects in the field of energy and transport. The country's economy is rapidly strengthening, industrialization of the real sectors of the economy is carried out using the highest possibilities [14]. Despite the global financial crisis, according to the forecasts of the International Monetary Fund (IMF), the GDP growth in Azerbaijan in 2009 was 2.5% [2]. It should be emphasized that Azerbaijan has great potential for development. However, in modern conditions, the fuel and energy and raw materials sectors of Azerbaijan are considered more competitive than the processing industry sectors.

The main reason for the lack of competitiveness of processing areas, which are mainly industrial areas, is their backwardness and slow modernization. Thus, the use of modern technologies, innovations and innovative marketing concepts is largely absent in these industries. There are no effective elements of innovation, modern management structures and the formation of innovative marketing departments in industrial fields (ferrous metallurgy, oil and gas engineering, device manufacturing, etc.). Should accelerate the creation of highly profitable industrial products, which will lead to the realization of the policy of accelerating the diversification of the country's entire economy, ensuring its competitiveness among the countries of the world, and reducing dependence on the economy. For this purpose, in the conditions of global competition, strengthening the role of innovation and marketing in the development of the country's industry is considered one of the priority directions of the development of the country's economy. The innovative development of marketing is still in its infancy, in other words, we can talk about its individual elements.

If we consider the combination of innovative and marketing in a single complex, then based on the results of the research, it can be assumed that if the use of innovative marketing is intensified in certain industrial sectors of the country, the general activity of local and regional industrial subjects can be stimulated, the competition of individual large enterprises and sectors of the economy can be stimulated. Participation of Azerbaijani brands in world commodity markets, international spaces, etc. In the conditions of successful application of innovative marketing in various fields of Azerbaijani industry, accelerated and continuous development of these fields is predicted with the formation of necessary protective immunity in the world financial crisis and global competition environment. The fact is that thanks to the rich natural resources and the development of industrialization, not only oil and gas are produced in Azerbaijan, but also the petrochemical and chemical industry, heavy industry, ferrous and non-ferrous metallurgy, machine building, electrical engineering, light and food industry, construction industry have been developed. There are other important factors for the successful development of transport infrastructure and priority areas, thereby allowing to strengthen the role of the non-oil sector in the economy. Unfortunately, the potential of the country's industries is not being used enough. For example, if the chemical complex has strong infrastructural capabilities, the activity of production enterprises is minimal, and currently only 20-25% of their processing capacity is used [14]. In chemical enterprises and ferrous metallurgical enterprises, the renewal of fixed assets and the modernization of production capacities are not ensured, the existing capacities of oil-gas and petrochemical engineering enterprises are used inefficiently and ineffectively. In general, other industries also need complete renovation and reconstruction. In addition, it is necessary to improve the management structure using innovative marketing, which will help accelerate the development of fundamental marketing concepts for the sustainable development of these sectors in modern conditions in all areas of the country's industry. Thanks to the skillful organization of marketing concepts, a number of Azerbaijani companies began to integrate their brands into the world commodity markets [16]. In addition, the Center for Scientific Innovations operates in Azerbaijan and about 340 research and development projects have been registered [10, p.142]. The Center for Scientific Innovations analyzes technologies and innovative potential, studies the requirements for innovative technologies, organizes expert opinions and a number of other measures in order to strengthen innovative marketing processes in various sectors of the country's economy, mainly in industrial sectors. In general, the national innovation system, innovation process management structure and innovative marketing concepts are being formed [15].

Since the establishment of sovereignty, the economy of Azerbaijan has been going through difficult stages of systemic changes, which defines the national economy as a transition economy. This type of economy completely changes the conditions, directions and structure of economic activity, forms completely new systems and methods of managing subjects, enterprises and companies. In this process, the main control element - marketing comes to the fore.

There are concrete steps to develop a company through marketing services. They can promote their products or services. The company organizes free classes, free seminars or trainings related to the product or service. These events are held both in the company's office, as well as in specially rented places and consumer homes, various educational institutions, etc. can be implemented. For example, to sell Kirby vacuum cleaners, the company's employees visit the homes of potential buyers and provide training on advertising techniques and product knowledge [13, p.230].

Another effective way to improve the system is to connect the company to different business organizations. The concept of a business organization in Azerbaijan began to take shape only in the last few years, which makes this step relevant today. Such enterprises in the domestic market are Mybrand's, Beat group, Sintecs Group, Baku Electronics, etc. operates. After the brand joins these organizations, companies begin to familiarize themselves with goods and services, recommend them to others, and even make certain recommendations. There are also great opportunities for joint creation of local organizations. No matter how banal and mundane the idea of creating or participating in charity events may seem, philanthropy has always been and continues to be an invaluable tool in promoting goods. By improving their experience in charity projects, companies can create new relationships that will help them increase sales in the future. Also, a company involved in charity creates trust in people purely psychologically. The "Cold hands, warm heart" charity fair, which has been held in Baku for several years now, is an ideal example of this method. This festival, which brings together many well-known companies in one place, helps to contribute to charity and is a source of attraction of new customers for companies [2].

Blogging has been at the forefront of marketing worldwide for several years now. Unfortunately, this trend has not yet reached Azerbaijan. Any so far the company that will take this step will gain not only profit, but also popularity among all sections of the population. To implement this method of improving the marketing strategy, the company creates its own blog on any platform. However. a platform with a large number of users (it can be YouTube, Facebook, Instagram for Azerbaijan) becomes more popular. Next, you need to gather the target audience interested in the product or service. The final stage is the placement of news, information on topics related to the company's activities, as well as making videos about goods or services. Promotion of goods on social networks, Internet marketing, especially social media marketing is the main focus. Although Twitter is the most popular platform in the world, it is not so popular in our country. Along with this social network, along with product promotion and sales, it seeks and gathers like-minded people together. Let's take an example based on a specific enterprise. Skywalk budget airline aims to become a leader in the domestic passenger air transportation market. The first step for the development of the company is that the management opens a vacancy for the position of marketing manager of the new company. The opening of the marketing department will lead to the formation of specific goals and will focus all the activities of the airline on their achievement.

First of all, the marketing department conducts research, and during the research, the problems to be solved are determined. Measures that contribute to the further development of the company include increasing the range of services provided. Development of a system of discounts for regular passengers, expansion of the general customer base, as well as expansion of the airline's activities in foreign countries become the main field of activity. The development measures taken may not be sufficient to prevent emerging threats, so the department should develop a plan to compensate for the losses, such as giving additional or compensatory discounts, implementing a no -price policy. But in order for this not to be necessary, the main goal of the company should be to find new customers and attract them to the airline. In order to increase the efficiency of employees, the company creates a personnel motivation system, develops clear rules for the duties of each employee, conducts training among employees, and in case of staff shortage, they are sent to retraining courses or change the direction of activity. The airline develops a new discount scheme to increase the company's profits by attracting new customers, disseminates information about the services through advertising, and provides detailed information about the services to everyone. Considering the current market situation as well as the financial and economic crisis, the discount system provided by Skywalk is necessary [5,p.81].

Conclusion

marketing azerbaijan promotion

The article emphasizes that marketing promotion is a step that serves to make companies popular among the population. These steps are one of the necessary steps to be carried out and updated both thoroughly and systematically.

It is noted that 90% of managers of companies operating in Azerbaijan think that there is no need for marketing research. Thus, the decision to implement marketing measures is not based on the analysis of research data, and this, in turn, does not justify the effectiveness of marketing projects. Businessmen rely too much on their intuition and make unreasonable expenses based only on their own experience and unsystematized information that reaches them over a period of time. As a result:

1. Unsuccessful image campaigns are organized that do not produce any desired intangible effect;

2. Sales of newly launched products are falling;

3. Preference is given to advertising campaigns mainly aimed at financial impact;

4. Absurd models of brand perception emerge as a result of lack of study of brand perception after marketing activities;

5. Low level of service and, as a result, customer satisfaction.

At best, marketers refer to a company's to-do list.

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