Model approach to pricing as an instrument of marketing strategy in social entrepreneurship

Petrenko E.S.1, Pritvorova T.P.2, Dzhazykbaeva B.K.3
1 Южно-Уральский государственный университет, Russia
2 НИИ регионального развития, Kazakhstan
3 Карагандинский экономический университет Казпотребсоюза

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Journal paper

Russian Journal of Entrepreneurship *
Volume 18, Number 7 (April 2017)
* Этот журнал не выпускается в Первом экономическом издательстве

Citation:

Petrenko, E. S., Pritvorova, T. P., & Dzhazykbaeva, B. K. (2017). Model approach to pricing as an instrument of marketing strategy in social entrepreneurship. Russian Journal of Entrepreneurship, 18(7), 1233-1244. https://doi.org/10.18334/rp.18.7.37760

Abstract:
The article examines the development issues of strategic management in social service organizations. Considering the features of social services as a form of a social entrepreneurship, the authors stress the priority of creating social value in these companies and the ways to make profit at the same time. Pricing for company’s services plays a crucial role in creating economic value not at the expense of a social value. The authors carried out a sociological research, aimed at assessing the company's business development strategies and methodological support for all stages of business process in organizations. We revealed that organizations that provide special social services for people with disabilities and seniors, having poor work experience on mixed competitive markets, have difficulties in determining and implementing their competitive advantages. We propose a methodical approach to price modeling based on options for indirect costing for services’ price of different units. We also suggest a maximum individualization of prices as the basis for organization's marketing strategy.

Keywords: strategic management, business process, pricing, marketing strategy, model approach, special social services

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