Key factors for improving competitiveness

The article examines the concept of firm competitiveness, identifies ways to improve competitiveness and effectively use Internet marketing for this purpose.

Keywords : level of competition, enterprise, competitiveness, factors, principles, internet marketing, marketing tools on the market.

The competitiveness of a country in a modern economy is a category that includes both the ability to create, produce, and sell goods or services that are in demand in international trade, and the ability to achieve consistently high rates of real income growth in the long term. Modern competitiveness is directly related to the level of labor productivity. [1]

The British telecommunications company saved $ 2.5 million by launching 600,000 contracts through social media. Thanks to this, the company not only saved a lot of money, but also improved the quality of customer service, thereby increasing the level of competitiveness. The fact is that most people now prefer to communicate through social networks. It is more convenient and faster than all other communication links. The use of social media for business purposes is called Internet marketing. The emergence of this tool dates back to the Amazon companies in 1994, when the company first opened its online store and provided online payment services. Internet marketing is a marketing strategy that is implemented through online resources such as email, social media, websites, and landing pages. Now Internet marketing is something more than selling information products, it has become one of the most innovative discoveries in the business world. This not only improved the quality of services and products provided by companies, but also helped to reach a new level of competitiveness. This essay begins with a discussion of the company's results in the course of using Internet marketing. It then describes the history of this type of marketing. Subsequently, he considers Internet marketing as an effective way to increase the effectiveness of the competitiveness of companies.

Trade competition is the method of companies and people competing within the same industry or field. This sort of competition applies to for all intents and purposes all businesses and representatives.

In this article, we consider the essence of assessing competitiveness. And referring to the sources, we divided the competitiveness into 3 types. The first type is normal competitiveness. This is a kind of competition, when the results of actions meet expectations. The second type of competition is when the results do not match the results, and this is called less than usual. And the third type is more than normal competitiveness. This happens when the results are higher than expected.

Based on the first criterion, the article defines two 2 types of competitiveness: factorial and effective. Such facts as quick response to market changes, skillful use of your own resources or others, allow you to create effective factor competition. The main idea is to determine the most effective type of competitiveness and compare them with each other. [2]

Table 1

The competitiveness of an enterprise is the advantage of an enterprise in relation to other enterprises in the same industry, both at home and abroad.

Fig. 1. Certain evaluation methods

Matrix methods. This approach is based on a marketing assessment of the economic activity of the manufacturer and its product. The essence of the method is to analyze the competitiveness of the enterprise, taking into account the product life cycle.

Methods based on the assessment of the competitiveness of products. This group of methods is based on the fact that the competitiveness of the product and the enterprise have a directly proportional relationship. To determine the competitiveness of a product, qualimetric and marketing methods are used, most of which consist in finding the price-quality ratio.

Methods based on the theory of effective competition. The point of this approach is to score the company's ability to ensure competitiveness. All the opportunities formulated during the analysis aimed at achieving competitive advantages are evaluated by experts in terms of available resources and factors.

Complex methods. In such methods, the assessment is based on the determination of potential and current competitiveness. As a rule, current competitiveness is determined on the basis of evaluating the competitiveness of its products, and potential competitiveness is determined on the basis of methods based on the theory of effective competition.

Improving competitiveness

There are several ways to improve the competitiveness of an enterprise. One of the ways to increase competitiveness is to increase the volume of sales of a product (service or work). It should be borne in mind that an increase in sales volumes will not bring the desired results in itself, since such important indicators as the amount of expenses of the enterprise, its profit, etc. are not taken into account. When organizing the production process and planning volumes in accordance with this method, it is necessary to solve a number of problems, one of the most important of which is to determine the volume of sales of products that will ensure the break-even of production activities. Improving the quality of manufactured products, which will have an impact on: accelerating the NTP, developing new markets, increasing exports and prosperity. Solving the problem of product quality will increase the company's image among customers, will be the key to entering the foreign market, and will also become the basis for maximizing profits. Another direction is the use of Internet marketing as a tool to increase competitiveness. [3]

Now the Internet marketing is one of the most important tools in improving the effectiveness of the company's competitiveness. The online advertising market in Kazakhstan is currently developing rapidly. The struggle for the attention of customers sets the task for market players to increase the effectiveness of the Internet marketing tools, forces the company to move to a new qualitative level of advertising activities, to take into account all the nuances of enterprises and their services and products. Against this background, the increasingly active development of Internet marketing contributes to the prompt receipt of information about goods and services by consumers.

Internet marketing is a marketing tool that uses online channels to achieve the company's market goals and is currently one of the most effective ways to promote products and services, as well as a personal brand. Internet marketing is becoming more and more important every year. For example, in 2019 Kazakhstan's online advertising market grew by 51 %. Among them, the leaders are contextual search advertising (36.8 %), social media advertising (32.7 %) and video advertising (30.48), including in-stream and out-stream. This suggests that businesses choose the most effective Internet communications. The expansion of the scope of marketing is accompanied by the development and change of the concept, methods and tools. [4]

Internet marketing includes such elements of the system as: display advertising, contextual advertising, search engine marketing, in general, and SEO in particular, promotion in social networks: SMO and SMM, Direct marketing using email, Viral marketing, Internet Branding, Email Marketing, Content Marketing, and Programmatic (RTB). [5]

Fig. 2. Internet marketing tools

Kotler, in his book, defined digital marketing or Internet marketing is a form of communication and interaction between organizations and their customers through digital channels and technologies such as the Internet, mail, etc. (Kotler et al. 2009). [6]

Summing up the article, we can draw the following conclusions: it is necessary to consider the best options for other types of businesses in order to switch to online, and fully implement Internet marketing. Internet marketing is attractive because it is accessible, has a lot of tools in communicating the meanings of companies that allow you to find common ground with consumers, Based on data and statistics, you can see that all business models are gradually moving online, and the lack of online is already considered a threat in the realities of today. Currently, Internet marketing has become one of the levers of competitiveness support. Various tools make it easier to promote your business. According to Serpstat data for 2019, Internet marketing accounts for a quarter of revenue. This means that most consumers are online, and the best communication option is internet marketing. According to Statista data for 2020, the current percentage of retail sales in e-commerce is about 15 %, this number is growing every year. Based on these facts, we can say that Internet marketing has become an integral part of business in the 21st century. [7]

References:

1. Thomas L. Friedman / The world is flat.. — 2 — New York: Straus and Giroux, 2005
2. Digital marketing / Barone. — Текст: электронный // investopedia: [сайт]. — URL: https://www.investopedia.com/terms/d/digital-marketing
3. Building business competitiveness. — https://www.tradeforum.org/Building-Business-Competitiveness/
4. Digital marketing. / Chaffey, D., &. Ellis-Chadwick, F.. — 2. — New york: Harlow Pearson, 2020. — c. — Текст: непосредственный.
5. Gary, Vaynerchuck Jab, jab, jab Right Hook: how to tell your story in a noisy social world / Vaynerchuck Gary. — 2. — New york: GV, 2013. — c. — Текст: непосредственный.
6. Kingsnorth Digital marketing strategy: An integrated approach to online marketing / Kingsnorth, S.. — 2. — New york: Kogan page, 2019. — c. — Текст: непосредственный.
7. Pulizzi Epic content marketing: How to tell a different story, break through the clutter, and win more customers by marketing less. / Pulizzi, J.. — 1. — New york: McGraw-Hill Education, 2014. — c. — Текст: непосредственный.