The aim of the article. The purpose of the article is to justify the use of ABC analysis for optimizing costs and revenues from foreign trade activities and develop proposals on the formation of the process of marketing management for the export-led enterprise. It should be based on the integration of marketing strategies of commodity groups selected by results of ABC analysis. The results of the analysis. The article proves that ABC-analysis is an effective tool of management of foreign economic activities. Its application will identify groups of products that improve the efficiency of export supplies. Thus, they provide the greatest revenue and profit and contribute to the optimization of the range of product groups with little earning power ratio. This will objectively evaluate the effectiveness of business processes and identify reserves for minimizing costs of resources. ABC analysis will identify priority and basic commodity groups which the main focus of the executive staff should be directed to in the development of promising development strategy of foreign trade activities. Scientific novelty of the research is to systematize benefits and limitations of ABC analysis as a tool for improving the effectiveness of management system of enterprises. The benefits are ease of use, visibility and clarity, universality, automation, objectivity, identification of costs, formalization of business processes, rationalization of pricing and budgeting, analysis of the value-adding chain and optimization of management. The limitations of this analysis are need for thorough economic analysis, one-dimension of the method, complexity of taking into account quality characteristics, need to expand the number of groups of the analysis, reducing the reliability of results over time, complexity of the development of working tools, strengthening requirements for an enterprise personnel, need for strategic and constructive management thinking. The article suggests ways to minimize the negative impact of limitations of ABC analysis. Developed author’s model of the process of marketing management should include the following stages: specification of the mission of the export-led enterprise and its priority objectives; strategic analysis of the internal and external environment based on ABC analysis; development of the corporate marketing business strategy based on the integration of strategies of business groups and functional strategies; implementation of the corporate strategy based on the specification of strategic objectives of marketing policies and the program of strategic decision making; strategic control to compare achieved results with the objectives and correction of deviations. The results of ABC analysis should be seamlessly integrated with the system of marketing management of the enterprise. The practical significance of the developed author’s approach is to improve the efficiency of the marketing management of export-led enterprises. In fact, it is aimed at optimization of the management system based on the objective formation of product strategy and business processes. Conclusions and directions of further researches. The author’s model of the process of marketing management for the export-led enterprise is proposed. It involves the development and implementation of the corporate marketing business strategy on the basis of the integration of strategies of commodity groups selected by the results of ABC analysis. Further studies should be aimed at substantiation of scientific and methodological approaches to the development of a prospective corporate strategy of the enterprise based on the specification of tools of marketing management for each group of export-led goods.
Keywords: ABC analysis, management system, marketing management, foreign trade activities, export-led enterprise
JEL Classification: L10, M11, M31, M41, O19.
Cite as: Pitel N. & Alioshkina, L. (2016). ABC analysis as a tool of optimization of marketing management of export-led enterprises. Marketing and Management of Innovations, 3, 87-94. https://doi.org/10.21272/mmi.2016.3-07