Implementation of the non-profitable marketing principles in electronic auctions for public procurement

Kremer K.I. and Sabetova T.V.
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Kremer K.I.: Military Training and Scientific Center for Air Force «Air Force Academy named after Professor N.E. Zhukovskiy and Y.A. Gagarin»
Sabetova T.V.: Voronezh State Agricultural University named after Peter the Great

Russian Journal of Agricultural and Socio-Economic Sciences, 2016, vol. 56, issue 8, 152-162

Abstract: The article presents the importance of marketing technologies in the activities of state and municipal authorities, in particular in the procurement of goods and services for public use. We consider some aspects of the marketing specifics in public administration. The problems of economic and social efficiency of public procurement are studied. The analysis of the use of the electronic auction by the state as one of the leading methods of transactions to ensure the public's needs is presented. As a result, statistical data analysis revealed a significant proportion of public procurement contracts made by means of the auctions, both in quantity and in value terms, as well as a wide range of goods and services purchased in this way. The procedure of organization and participation of electronic auctions is recognized quite simple and convenient. The convenience of documentation circulation for participants that is fully organized in an electronic form for the electronic auctions was emphasized. While considering the public procurement process through the prism of relationship marketing, one of the most pressing is the question of trust between the parties. The article states that electronic auctions from this point of view have both advantages and disadvantages. On the one hand, this method has high anti-corruption security, provides wide access to information, and contributes to trust building between the parties. On the other hand, the contract making through electronic auctions is defined by seasonal fluctuations, same as in public procurement as a whole. Agreements concluded in this way, are most often aned or declared invalid. Finally, companies acting as operators of electronic platforms, received their status in a non-competitive way. In the end, the authors suggest ways to improve the public procurement market and the implementation of basic marketing principles of the work in it.

Keywords: PUBLIC PROCUREMENT; FEDERAL LAW N44-FZ; METHODS; COMPETITIVE TENDERING; AUCTION; PURCHASE FROM THE ONLY SUPPLIER (search for similar items in EconPapers)
Date: 2016
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