Academic journal article Journal of Business Economics and Management

Quantitative Evaluation of Enterprise Marketing Activities

Academic journal article Journal of Business Economics and Management

Quantitative Evaluation of Enterprise Marketing Activities

Article excerpt

1. Introduction

The increasing globalization causes the increase of the competition among enterprises, which should pay more attention to the needs of the markets and the clients. From the perspective of enterprise performance it means the increase of the role of enterprise marketing strategies.

Despite the fact that an enterprise is a basic economic unit of a country, the problems of enterprise marketing are not given due attention both from theoretical and practical perspectives (Banyte et al. 2010). Therefore, the main principles of establishing marketing departments and services as well as their functions and areas of operation have not been clearly defined yet. The distribution of the functions among the staff members of these departments and services and the systems of their payment are also far from being perfect, etc. The main drawback is, however, the lack of analysis of the effect of the described issues on enterprise performance. Therefore, a theoretical and practical problem, associated with the need for comprehensive analysis of the conditions of successful operation of marketing departments, aimed at increasing their effectiveness, arises (Banyte et al. 2011; Ginevicius, R., Ginevicius, A. 2008; Ginevicius et al. 2008; Markovic et al. 2011; Cater et al. 2011; Rutkauskas et al. 2008; Nadiri, Tumer 2010). One of the major aspects of this problem solution is quantitative evaluation of enterprise marketing system's performance. This could help to determine the effectiveness of marketing expenses, to improve marketing strategies, etc. (Ginevicius, A. 2007; Rutkauskas, Ginevicius, A. 2011; Ginevicius et al. 2011).

Enterprise marketing is a complex multi-faceted phenomenon. To evaluate its performance quantitatively, various aspects should be formalized, which means that the criteria should be developed and integrated into one generalized quantity. This is not a trivial task because the criteria may be multidimensional and oppositely directed, which implies that the increasing values of some criteria may indicate that the situation is getting better, while the increase of the values of other criteria shows that the situation is worsening. To solve these problems, multicriteria evaluation methods, widely used in recent years, may be applied (Figueira et al. 2005; Ginevicius et al. 2012b; Zavadskas, Turskis 2011; Brauers et al. 2010; Brauers, Zavadskas 2012a, 2012b; Zavadskas et al. 2011; Kanapeckiene et al. 2011; Podvezko et al. 2010; Podvezko, Podviezko 2010).

A major stage of multicriteria evaluation of a complex phenomenon is the development of a set of criteria. If their number is small, a single-level set of criteria may be used because the experts can determine their weights sufficiently accurately. However, some problems arise, when the number of the criteria is large. To reduce this number, a hierarchical criteria system is developed, and the evaluation is made at each hierarchical level, beginning with the lowest level and finishing with the level of the considered phenomenon. In this case, the weights of the elements found at each level should be determined. The question arises about the effect produced on the calculation results by transforming a single-level set of criteria into a hierarchical multilevel set of criteria (Ginevicius, Podvezko 2007). All these problems are considered in the present article.

2. Theoretical aspects of quantitative evaluation of enterprise marketing performance effectiveness

Enterprise marketing may be analysed as a complex system because all enterprise departments are involved in its functioning. The analysis of such systems is aimed at determining the opportunities for purposeful changing of their performance, i.e. for ensuring their effective management (Ginevicius 2009). This can be achieved only if the performance of a system is quantitatively evaluated. So far, the efforts for its qualitative evaluation have been made. …

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