REGIONAL COOPERATION AND ECONOMIC INTEGRATION

CEFTA-2006 AND ANHANCING COMPETITIVENESS OF THE REGION - SOME SECTORAL ASPECTS
Jelena Filipovic,
Faculty of Economics,
Belgrade, Serbia
Aleksandar Djordjevic,
Faculty of Economics,
Belgrade, Serbia
Comparison of marketing activities between MNCs
and domestic companies in Serbia
Abstract
The aim of this study was to examine differences in marketing orientation and marketing
activities between MNCs’ subsidiaries and local companies in the Serbian market. In order
to investigate it, research addressed three issues: a) whether companies find marketing
orientation as an important part of their business strategy; b) what kind of marketing
activities they perform; and c) how many employees work in marketing department.
Previous studies undertaken on this matter, primarily focused on marketing activities in
transnational companies, therefore there is very scarce number of studies that investigated
this topic in developing countries. It could be noticed that the implications of this study are
numerous, referring to exchange of marketing capabilities between MNCs’ affiliates and
local companies. Research evidence suggest that transnationals have larger marketing units
and conduct larger variety of marketing activities than domestic companies. Furthermore,
MNCs are more aware of the importance of incorporation of marketing orientation in the
total business system, while local firms tend to underestimate strategic role of marketing –
planning and control are highly disregarded in Serbian firms.
Key words: marketing activities, MNCs’ subsidiaries, Serbian companies, organization of
marketing unit
INTRODUCTION
The process of transition, which took place in 1990s in Eastern Europe (and in Serbia is still
actual), primarily meant the change from centrally oriented economies to market oriented
ones (Enew, Wright and Kirnag, 1996). The main difference has occurred in the approach
to customers – marketing gained on importance. Marketing is not only much broader than
selling, it is not specialized activity at all. It encompasses the entire business. It is the whole
business seen from the point of view of the final result, that is, from the customer’s point of
view (Drucker, 1993). Keeping in mind such complexity of marketing, it is very difficult
to establish valid parameters: a) to determine whether organization has adopted marketing
concept and b) to review all marketing activities in some company.
1. Literature review
However, some generalizations can be made. Literature review indicates that there are
three streams of studies conducted on this matter. First, the structural role of marketing has
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