Effective decision making by managers in marketing activities of the organization in recreational services (ORS) is one of the most important conditions for successful development and survival in the competitive struggle, successful adaptation to changes in the external environment.
The use of non-standard creative ideas and solutions in marketing activities and management of ORS driven by a sharp increase in the intensity of competition, i.e. the changing of key parameters of competitiveness of ORS. So, RS is increasingly providing new services, i.e. there is a reduction in the life cycle of recreational services (RS) and therefore, it is necessary to stimulate more rapid availability of new services to remain competitiveness.
First of all, it is necessary to assess the current status and prospects of certain types of activities (e.g., therapeutic recreation and recreation and entertainment services) on the levels of ORS in general and with specific types of services within businesses. In other words, it is necessary to analyze economic and product portfolios, to evaluate the potential of the individual strategic business units (SBU) and services. In the following the results of this assessment are used for decision-making about which lines of business (individual RS) should maintain or maximize on a limited amount of time (seasonality), or to eliminate.
Research organization– defining in terms of cost optimization and increasing reliability of estimates of the stage (block). There are three fundamental requirements for marketing research, which is extremely important for project management :
1) Interaction system of the project and the market needs to be «transparent» for the leadership of ORS;
2) Should be identified the existing market limitations and problems;
3) To represent clearly a field of potentially possible variants of realization of the project.
The range and depth of marketing research are determined by the complexity or novelty of the project challenges, as well as the importance of these issues for the project is.
The definition of adequate methods and tools in making managerial decisions about marketing research must meet set goals and existing constraints.
The important point in research is to assess the necessary and sufficient amount of information. As information gathering, as it were, in the modern economy has a high cost, this process requires adequate management. Some methods of managing the information collection are described in the literature .
The concept of marketing – tactical section of the entire marketing activity, which defines the medium-term, an important (but not universally valid for the whole project) areas, target reference points, selected methods of implementation of the strategy defined previously .
The framework for the formation of the project marketing concept in ORS is shown in figure 1.
Figure 1 – Structure of activities of the ORS on the formation of the marketing project concept.
At different phases of the life cycle various marketing activities are carried out, with marketing tactic also changes significantly depending on RS life. The fundamental structure of marketing decisions in the different phases of the life cycle of RS is shown in figure 2.
On the basis of decisions on the life cycle of RS, tactics of competitiveness are formed. A strategy of competitiveness based on the competition analysis, the target positions of the project and its products (RS), and the selected basic strategy. Tactics includes the basic principles of the relationship with ORS — competitors and measures to neutralize the negative and positive aspects of competition.
Decision-making in ORS should be the following:
1) Conscious and purposeful activity;
2) Behavior, based on facts and values;
3) Process of interaction between members of ORS;
4) Selection of alternatives within the state of institutional environment;
5) Part of the overall management process and daily work of the manager.
Figure 2 – Phases of the life cycle of RS
Figure 3 shows the main (important) characteristics of managerial ORS decisions.
Figure 3 – Characteristics of managerial decisions of ORS
The objectives of ensuring the competitiveness of provided recreational services include acceptance of administrative solutions in the following areas:
- Finding the measure of competitiveness:
— the reduction of partial evaluation indicators of competitiveness and integration;
— determination of the timeliness of providing RS to recreate (consumers);
— determine the level of RS novelty;
— measurement of cost of recreant at all stages of RS lifecycle;
— measurement of cost of recreant for the purchase of RS;
— measurement of the level of consumer properties of RS.
- Assessment of the level of competitiveness (for private RS and ORS provided by competitors):
— quality analysis of the functions execution;
— cost analysis for RS;
— determination of the stage of RS life cycle;
— analysis of competitors RS;
— a comprehensive analysis of their own services;
— analysis of demand for RS;
— analysis of the range of RS provided.
- Determination of the necessary competitiveness level:
— development of models and algorithms comparison of RS with foreign counterparts;
— define leading competitor and characteristics of their RS;
— the choice of leading consumer properties of RS, define the level of competitiveness;
- Bringing the existing features of RS to the required level of competitiveness:
— increasing the level of qualification of employees of ORS;
— optimizing quality and costs;
— improving the quality of functions performance;
— reduce the cost of functions provided by RS;
— expansion of functional opportunities of RS.
- Forecasting the level of competitiveness of RS:
— the forecast of social and political change;
— forecast of markets development of RS;
— forecasting the pace of scientific and technological progress.
It is important to understand that in the course of decision-making input components are not only organizational goals but also personal goals of DM. In addition, many of the decisions are connected not only with the number of DM involved in the development of new types of RS, but also with the number of subordinates engaged in performing specific tasks. In other words, in ORS there is a hierarchy of decision-making processes. It is important to distinguish three levels of hierarchy:
1) divisions of ORS – group of health and entertainment staff;
2) Designers – the key team members, experts;
3) Management of ORS (top management) set requirements for projects and allocate resources.
These three levels interact with each other: the decisions taken at lower levels can affect higher levels and vice versa. Particularly strong on developments in the design and development of new RS can influence the lower levels. In this regard, the strategy is not only adopted at the level of senior executives of ORS, but also arises during activities associated with the development.
Figure 4 depicts the requirements for administrative decisions, which ensure their high quality. They are closely interrelated, and because contravention of any of them leads to a sharp decrease in solution quality, serious difficulties in achieving this goal. Therefore, when making management decisions under the implementation of the marketing project it is necessary to understand the implementation of previously planned actions, monitoring their results, to implement corrective and preventive nature events .
Figure 4 – Requirements for quality of RS
The most important control mechanisms used in the implementation of project marketing in ORS are the following:
— collecting information about the results of marketing activities;
— assessment of the marketing effectiveness;
— comparison with planned indicators;
— comparison with the results of recent market research;
— corrective actions, including adjustment of strategy and tactics of the marketing project;
— preventive actions.
The implementation of marketing is directly linked to the temporary aspect of the project and therefore may serve as an item, which is transitional to the consideration of marketing in its horizontal (time) dimension.
Unfortunately, foresight and precaution are manifested by the leaders of ORS not always. Decisions can be delayed and accepted in the conditions of ongoing events, which do not leave time for thinking and preparation of implementation. Therefore, the necessary and a priority governance principle should be the rule to act proactively on the basis of forecasting the development of the situation and ongoing planning actions, avoiding exacerbation of existing problems.
The high quality of the solution is determined by the accuracy of its contents, when target is precisely defined, for efficient use funds are available and structured sequence of actions to achieve is made up. In management of ORS the most complete expression of the solution acts is the target program, which is well directs the performers in the upcoming activities. Programming management decisions focuses on the mechanism of achieving the common end result, a program objective of ensuring a high quality of life.
A characteristic of many taken in the management practices of the organization of recreational services is the fragmentation of planned actions. a systematic approach is needed, considering the decision as a system, i.e. a set of interrelated elements forming a unified whole. In any system develop close ties between its constituent elements, which generate additional system-wide properties.
Consistency of content solutions gives rise to such properties, which greatly increase its reliability, but also timely and effective implementation of the target. Comprehensive maintenance of solutions is not just a variety of divergent activities, but a solid unity and their interaction with selection and ranking of leading others .
In the framework of the internal analysis the first step is the analysis of project participants and their resources. At this stage, information about potential strengths and weaknesses of the project is collected and processed.
Advanced technologies are important factors of success in the modern economy. Analysis of available technologies is aimed at the assessment of the technology market, the definition of requirements for application of the technology (capital investment, the level of knowledge and skills, control system, etc.).
Product analysis (RS) of the project is to compare the projected RS with the existing and (or) the «ideal», i.e., represented by recreants. In this case the analytical tools of positioning are applied. These same tools, as well as the results of services can be used for target positioning. Such tools include:
— positioning based on the similarity of RS;
— multidimensional positioning, including dynamic;
— hierarchical cluster analysis;
— cluster positioning;
— positioning in relation to the «ideal» RS;
— positioning by market segments;
— positioning of useful properties.
A detailed description of these tools can be found in .
The results of marketing research required primarily for the development of the marketing strategy of the project.
A justification of the decision involves determining and specifying that it is based on true knowledge of the urgent needs, based on necessary and sufficient funds, takes into account prevailing conditions on the situation and their dynamics, involves the use of the best options, has the necessary reserves. The validity of the decisions involves consideration of risks when the outcome is not guaranteed .
The consistency of the solution’s content involves its internal and external coherence, consistency with previous decisions for vertical and horizontal control.
Thus, the efficiency of making managerial decisions in the marketing activities of ORS focused on design approach which means such a course of action that leads to reliable, timely and complete achievement of the planned result at a lower cost or obtainment of the maximum result at a specific cost. The requirement of efficiency of the decision directs the performers on the ability to count, to compare the result obtained with all types of costs. Planned needs of recreants should be more fully and with less expenditure of effort, time and money.