Page 58 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.76, # 2, 2019, pp. 56 -73

2. ROLE OF MARKETING IN SOLVING THE PROBLEMS OF ENSURING
THE COMPETITIVENESS OF A CONSTRUCTION ENTERPRISE
UNDER MARKET CONDITIONS

Competitiveness as a basis of market economy is the strongest impetus for economic
growth, contributing also to effectiveness of company’s management. Competitiveness
of a company is a range of qualities and characteristics of its business-processes,
allowing and ensuring effectiveness of functioning of the company on the market of
commodities, capital and labor with changing external and internal circumstances.

An enterprise and its competitors is one of the main models of marketing. Considering
enterprise and its strategy, one resolves issues including choice of market’s segment,
which its product is aimed at, and identification of marketing instruments. Marketing
plan is one of the principal tasks of a company’s activity. Such plan should precisely
depict company’s status in the market. No construction enterprise is capable of
surviving in a competitive environment without having accurate guidelines of its
development. Coordination of marketing and all other functional divisions create an
opportunity for realistic identification of directions of the required changes, which
would contribute, to getting competitive advantages, and is necessary in order to
escape unreal expectations and further mistaken decisions during research (Akimov
V.V., Makarova T.N., Merzlyakov V.F., Ogay K.A. , 2009).

Marketing means protection of an enterprise from competitors. Marketing is not
only orientation towards consumers but also a long-term protection of an enterprise
from competitors by means of permanent system of information about their
behavior. Control over competitors allows for the satisfaction of specific requests of
consumers. Knowing strengths and weaknesses of competitors contributes to
accurate orientation of its plans for ensuring concentration of its strength against
competitors’ weaknesses. Control over competitors’ activity is one of the important
instruments of marketing. Competitiveness can be called a “spirit of market” and
main “environment” for marketing (Chernyak V.Z., 2009).

For the purpose of correct choice of competitiveness, the strategy of any
construction organization should have a method of evaluating its competitiveness as
well as take into account different properties of construction services market and
competitive relations in the framework of the latter. These are, first of all, the
following: construction services have something to do with the development of
projects and construction itself, and to construction management. A construction
company can build its competitiveness strategy upon specialization and
concentration as well as upon diversification of its activity (market of construction

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