Petrichenko A., Ryeznik M., Sokol P.
Dnipropetrovsk National University named after Oles’
Gonchar
FACTORS HINDERING
EFFECTIVE FUNCTIONING OF MARKETING DEPARTMENTS
In the current conditions of the increasing
competition among manufacturers there is the need to create services,
departments or units of marketing, which should help to increase sales, market
share and profit gained by enterprises.
However,
inefficient work of the marketing department of any company leads to the
decrease in its competitiveness and, ultimately, to its liquidation. The
main factors that hinder the effective functioning of marketing departments in
companies can be divided into external and internal.
External
factors are those which arise outside the enterprise and can not be regulated.
Among external factors are the following:
·
Imperfect legislative regulation of activity
of an enterprise: at the current stage of the development of the legislative basis of
Ukraine business entities often succeed due to violation of laws, tax evasion, etc.,
rather than by good management, including the use of marketing;
·
Lack of objective information about the
market situation: companies can not work effectively without information about
their market segment, its characteristics and dynamics. The enterprise can
receive this information by conducting marketing research;
·
Unpredictability of competitor’s economic
activity:
Internal
factors are those that take place within the enterprise and are usually connected
with errors, omissions and neglect of management and staff, i.e. the ones that
can be eliminated within the enterprise. Internal factors include:
·
Lack of funds to create a marketing
department at the enterprise: a lot of enterprises lack the funds to support their
day-to-day operation, not to mention the creation and development of a marketing
department, investment and charity activity. Marketing department is a very
expensive treat, therefore companies are not able to
pay money for its activity. Application of marketing measures at domestic
enterprises is usually of one-time nature.
·
Managers do not understand the importance
of marketing for the company: directors do not fully understand all the
possibilities of a marketing department and try to delegate just a small number
of marketing functions to other divisions. Recognizing benefits of systematic
marketing, its complexity is an important step towards the development of
marketing at the enterprise. It is important that all managers and employees of
organizations have the same understanding of marketing.
·
Absence of structured functions of a marketing
department and absence of clear job descriptions: this factor causes repetition
of the same functions by different sections of the company.
·
Shortage of professional staff and modern
knowledge: the marketing departments are often composed of the existing
employees who do not have the appropriate degree or who have finished
short-term courses on the fundamentals of marketing. Practice and experience
are virtually the only source of marketing skills of a marketing service.
·
Absence of a motivation mechanism: in a
lot of companies marketers receive a fixed rate of
wages, but there must be an interconnection between the size of earnings of
marketing department's workers and financial performance of the enterprise.
Material incentives play the main role in motivating employees.
Thus,
we can conclude that there are many negative factors affecting the efficiency
of a marketing department as a constituent of the organizational structure of an
enterprise. However, we can enumerate some factors that help improve marketing
activities in