KOREASCHOLAR

This paper broadly addresses the development of optimal marketing budget allocating among firms in the Russian market and applies methodologies produced by the contemporary marketing practices (CMP) project (New Zealand, the university of Auckland). From that project, it would seem that there are two separate paradigms that distinguish modern firms, namely a transactional approach and a relational approach. In a transactional type, the marketing campaign depends entirely upon closing the sale, based on a marketing miх or 4P conception. Relational marketing is based, rather, on a long term relationships with the customer, and it is generally typical of B2B markets where a limited number of companies try to develop customer’s loyalty due to the strong competition.
Using marketing practices according to these two paradigms in Russia as an emerging market, however, reveals a difficulty in determining how to apply the CMP method to businesses: how is firm efficiency in these markets associated with one paradigm or the other? Is the situation in Russia typical for transition or emerging markets, or is it closer to that of advanced market economies, and which patterns in marketing practices do companies from different financial level prefer? Finally, how can firms use this approach to optimize marketing resources allocation? These questions were not resolved by the CMP project, yet they are critical for understanding the evolution of firms in transition countries such as Russia.
The theoretical understanding in the literature shows a general cross-country relationship between marketing practices and firm efficiency. It is generally admitted that marketing creates value for a company, e.g. by analyzing customer database, selecting profitable clients segments, activities of the company, choosing an appropriate business model and strategic direction of the company. These are some of the most prominent reasons why marketing and company’s revenues are closely connected (Doyle, 2000; Rust et.al. 2004).
The literature on marketing practices additionally identifies several regularities for developed and emerging markets:
1. Increased effectiveness can be achieved primarily by using database technology: switch marketing attention from markets to customers (individuals) and analyze clients flow. (Sheth and Sisodia, 2002; Rust and Chung, 2006)
2. Markets should be aimed not only at the customer acquisition but also at the customer retention. (Sheth and Sisodia, 2002)
3. Marketing is mostly characterized by delayed effect in time, implying companies should relate marketing activities with longer term effects (Dekimpe, Hanssens, 1995).
4. The consumer-company interrelation influence on the cumulative level of the marketing assets of the company. (Reinartz and Kumar, 2002)

• A.Grigoriev(Maastricht University, Netherlands)
• Darya Lagutaeva(National research university Higher school of economics, Russia)
• Olga Tretyak(National research university Higher school of economics, Russia)