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Types of product promotion in marketing. Promotion policy. Public relations

Brand building tools are the means of marketing communications by which a company intends to inform, persuade and remind customers - directly or indirectly - about its products and brands. In a sense, they act as the "voice" of the brand and provide a platform for dialogue and relationship building with consumers. A marketing communications program includes the same basic types of communications:

Personal selling (direct marketing)

Sales promotion

Form style .

Let us characterize the tools of marketing communications in more detail.

Personal selling is a face-to-face interaction with one or more prospects in order to obtain orders. Direct customer service is more common in business markets than in consumer markets. Such sales involve individualized communications that are tailored and adapted to the specific needs of the buyer. At the same time, they are the main driving force in the formation of effective long-term business relationships based on close personal interaction and deep knowledge of the product and the market on the part of sales representatives. This is the most expensive communication method.

Direct marketing means use direct mail, telephone marketing, facsimile, e-mail, brochures, catalogs, the Internet, etc. to communicate directly with current and potential customers. Direct marketing is a tool that allows marketers to reduce the number of inappropriate communications with non-target buyers or groups of buyers. Recently, such a tool of direct marketing as electronic purchases has experienced a significant rise. Benefits of direct marketing tools include special opportunities for customization and personalization of the messages conveyed. They contribute to the establishment of long-term relationships with customers.

Public relations (PR) provides media coverage that reaches different stakeholder groups. They involve the use of many programs designed to promote or protect the brand's image. PR activities can reach potential buyers who tend to avoid contact with sales agents and advertising. Effective PR tools should be carefully managed by constantly monitoring the attitudes of buyers and other groups that may have an actual or potential interest in the company. The reason why PR events are so effective is that they inspire confidence. With limited resources, PR delivers the most value for every dollar invested while building a high level of credibility. PR builds brands by generating positive, compelling word of mouth. Public relations tools also include participation in international exhibitions, various awards, publication of press releases, appeals to media representatives, work with the audience at conferences, discussion lists, mailing lists, holding online lotteries, lotteries, competitions, sponsorship.

Sales promotion - this tool has a large set of promotion tools in its arsenal. This includes sales and discounts, contests and gifts, coupons and bonuses, and much more. Each of these tools has its own characteristics, but all of them are designed to attract the attention of consumers and encourage them to make a purchase. These are a kind of bait for buyers, promising mandatory benefits, personal savings, gifts. Promotions are usually limited in time, calling for purchases right now, temporarily increasing sales. The price of a product usually decreases, but the level of profit is offset by an increase in sales.

Advertising is open in nature, besides the consumer in most cases its most legitimate means of promotion. This is the most common and effective promotion tool that can increase the company's sales and profits with the right approach to it and a sufficient level of funding. Regarding the nature of the contact of advertising with the target audience, there are two types of it - ATL and BTL. BTL advertising includes: promotions, presentations, advertising games, drawings, sampling, tastings, events, etc. ATL advertising: television, radio, print, outdoor, Internet.

A corporate identity is a set of color, graphic, verbal, typographic, design permanent elements (constants) that ensure the visual and semantic unity of goods (services), all information coming from the company, its internal and external design.

Among the main features of corporate identity:

Identification. Corporate identity allows the consumer to easily recognize the desired product (company, service) by some external features.

Confidence. If the consumer is once convinced of the quality of products (services), then this trust will largely extend to all other products of the company. In addition, the presence of a corporate identity in itself inspires confidence.

The purpose of the corporate identity is to fix positive emotions in the minds of customers associated with the assessment of product quality, its impeccability, high level of service and to provide the company's products and the company itself with special recognition. Thus, the presence of an indirect corporate identity guarantees the high quality of goods and services, as it indicates the confidence of its owner in the positive impression that it makes on the consumer.

With a consistently high level of other elements of the marketing mix, corporate identity brings the following advantages to its owner:

Helps the consumer navigate the flow of information and find the product of a company that has already won his preference;

Allows the firm to bring its new products to market at a lower cost;

Reduces the cost of forming communications, both as a result of increasing the effectiveness of advertising, and due to the versatility of its components;

It helps to achieve the necessary unity not only of advertising, but also of other means of marketing communications of the company (for example, public relations: holding press conferences, issuing prestigious prospectuses, etc.);

Helps to increase the corporate spirit, unites employees, develops a sense of belonging to a common cause;

It has a positive effect on the aesthetic level and visual environment of the company.

If we sum up all the advantages that the use of corporate identity gives, then we can call it one of the main means of forming a favorable image of the company.

The corporate style system includes the following main elements:

Trademark;

Corporate type inscription (logo);

Corporate block;

Corporate slogan (slogan);

Corporate color(s);

Corporate set of fonts;

Corporate hero;

Permanent communicator (face of the company);

Other proprietary constants .

The market success of a commercial organization largely depends on the recognition of the significance, usefulness and popularity of its product in the broad sections of the consumer society. In marketing, such a popular and sought-after product is called a brand. But not every product created and sold on the market becomes a brand! Only an economically successful and sustainable product, from the point of view of consumer preferences, is the brand that any producer of goods or services strives for.

The consumer always has a question-dilemma: "What to buy: a promoted brand or an unknown faceless trademark?" The answer is tantamount to opposing the following categories: "quality assurance - quality uncertainty" and "high price - budget goods".

In the conditions of a developed consumer market, in most cases, the behavior of buyers is determined in favor of the first, that is, a branded product. Of the many equivalent products, it is the brand that attracts the eyes of buyers; they “vote with a ruble” for a branded product.

Therefore, in a developed market, the following recommendation for manufacturers of goods and services is relevant: "Do you want your product to be popular in the market and highly profitable? Create a brand and manage it competently!"

Thus, for a modern company to successfully create a brand, it is necessary to engage in brand building, brand management or branding.

Branding (branding)- a targeted marketing process of creating, maintaining and promoting a brand on the market, effective brand management in the internal and external environment. It is a complex process of brand formation and development. In the modern economy, branding is becoming more and more widespread as a new branch of knowledge, and in practice - as an activity aimed at obtaining the best trading result. In the long term, successful branding is able to provide a reliable and stable added value to a product or service, that is, the commercial success of the company.

It can be said that the real and psycho-emotional embodiment of an idea is the image of a product and/or service. Image as an emotional and psychological element of the brand is important in the formation of the brand of any organization, including a trade enterprise.

The image of a trading company is a relatively stable, artificially created or real idea of ​​a trading company that has been formed in the minds of customers, partners and store employees.

Skillful formation and consistent introduction into the minds of customers of a positive image of the store, backed by product quality and a high level of service, allows the trading company to take a leading position in the market.

Having an attractive image helps the buyer to perceive the store as something different from others, to see in it the advantages that competitors do not have, and to choose it as a permanent place to make a purchase.

tangible image (the first impression of the store);

intangible image (the response of the buyer to the service and the attitude of the store employees towards it);

internal image (the atmosphere inside the store, the attitude of employees to management policy);

external image (impact of the first three elements plus public opinion about the trade organization).

There is a point of view that the image of a store consists of two intersecting components - from the general functional advantages of the type of trade enterprise (specialized, universal, warehouse store, etc.) and the specifics of a particular store belonging to one or another type. This means that shoppers choose where to shop based on two sets of factors: their own preferences and specific store characteristics. In each market segment, buyers form the image of the store for themselves, guided by indicators that seem to them the most significant.

There is a comparison of the perceived characteristics of the store (its image) with certain evaluation criteria. Research shows that shoppers can quickly recall a particular store (retrieve its name from long-term memory) when asked which store comes to mind first when referenced to indicators such as "lowest price level", "most convenient", etc. Moreover, the answers completely coincide with the names of the most famous and popular stores in the target segment. Thus, the closer the match between consumers' perceptions of what a store should be like and the actual picture, the stronger the psychological agreement to make a purchase in that store.

The modern consumer market is developing in many directions. One of the most demanded and cost-effective is the industry of holidays and special events, which includes retail and wholesale trade in fresh flowers. The Russian flower market is actively developing and becoming highly competitive. Therefore, for flower shops, the issue of image formation as an element of successful branding becomes relevant.

Marketing involves the solution of an active task of forming and stimulating demand for goods in order to increase sales, increase their efficiency and profitability of entrepreneurial activity. It is this goal that is primarily intended to meet promotion policy or, as it is called in modern terms, communication policy. It is part of a complex of marketing measures to influence the market - the "marketing mix".

Communications are considered as a process of information exchange, its semantic meaning between two or more people. This is the transfer of knowledge, feelings and moods from one person or group of people to others.

Communication policy (policy of product promotion to the market) must solve active tasks to form and stimulate demand for goods in order to increase sales, improve their efficiency and the overall profitability of entrepreneurial activity.

The significance of communications in the activities of the enterprise is due to the fact that they are:

  • o source and carrier of information;
  • o means of conscious impact on the market;
  • o a tool to improve the effectiveness of marketing activities.

At present, communication is becoming the main object of marketing research, since the results of entrepreneurial activity are increasingly dependent on the level of knowledge of communication processes.

Enterprise Communication Policy includes advertising, sales promotions, public relations system ("public relations" - "public relations" PR), direct marketing.

Advertising and marketing are two concepts that are inseparable from each other, although advertising arose long before marketing. Marketing includes promotional activities, which should be guided by the strategic goals of marketing planning. The relationship of all links of marketing is the basis of a single strategy and tactics of advertising activities in its system. Therefore, when developing and implementing an advertising campaign plan, it is necessary first of all to coordinate its goals and principles with the overall marketing plan of the enterprise.

Advertising is a persuasive means of information about a product or enterprise, commercial propaganda of the consumer properties of the product and the merits of the enterprise, preparing an active and potential buyer for purchase.

There is a wide variety of types of advertising. The main ones are commodity and prestigious advertising. the main task commodity advertising - formation and stimulation of demand for goods. By promoting a particular product, advertising helps to sell it. Product advertising informs the consumer about the properties and advantages of the product, arouses interest in it, the consumer seeks to establish contacts with the seller, and from a passive, potential turns into an active, interested buyer.

Prestigious or branded advertising is an advertisement of the advantages of the company, which distinguishes it from competitors. Its goal is to create an attractive image among the public, primarily active and potential buyers, a winning image of the enterprise, which would inspire confidence in the company itself and its products.

Prestigious advertising forms a favorable public opinion about the enterprise and is associated with significant social activities. It is designed to provide a positive attitude for the perception of a favorable image of the enterprise, its product advertising, to reduce the time to convince the buyer to make a purchase decision. Such advertising covers a wider audience and is not aggressive: it does not impose ready-made solutions and opinions, giving the buyer the right to independently give preference to one or another enterprise.

There are also direct and indirect advertising. direct advertising is carried out on commercial terms and points to the advertiser, directly performing an advertising function in relation to a particular product or a particular company.

Indirect advertising performs the advertising function not so straightforwardly, but in a veiled form, without using direct distribution channels of advertising media and without indicating a direct advertiser. For example, a magazine advertisement for a new drug that is being offered for sale by a pharmaceutical company is direct advertising. And an article published in this journal, which considers the method of treating a certain disease and points to this drug as a more effective medical remedy, is indirect advertising.

Distinguish advertising informational And aggressive depending on the nature and characteristics of the promotional material and the stages of the product life cycle. For example, at the first stage of the life cycle, when the product is new and it is not yet produced by competing firms, informational advertising is preferable, emphasizing the distinctive advantages of this original product in terms of its qualities and performance characteristics. This advertisement informs buyers about the product. However, at the third stage of the product life cycle, the stage of a saturated market, aggressive advertising is carried out, demonstrating the advantages of the product of this particular enterprise (for example, quality, service, delivery time, safety, environmental friendliness, etc.), since during this period the enterprise needs compete with competitors who produce similar products. Recently, in the marketing activities of enterprises, more and more attention is paid to information and explanatory advertising.

Depending on the chosen marketing strategy in different markets, advertising is homogeneous and heterogeneous. Homogeneous advertising in different markets, including in different countries, is the same, it saves on the cost of an advertising campaign. However, the implementation of such advertising is associated with significant difficulties and is fraught with failures if it is not developed professionally enough, since in different markets the characteristics of consumer requests, their perception of the verbal and musical accompaniment of commercials, etc. should not contradict a single concept of advertising.

In the practice of enterprises, it is used preventive advertising, when more funds are used for advertising than is optimally determined. Such advertising is carried out, as a rule, in order to undermine the position of competitors who are not able to spend large amounts on advertising purposes.

There are also introductory, protective or corporate advertising. This type represents the entrepreneurial, including export, activities of the enterprise as assistance in the implementation of government programs for the socio-economic development of the state. This creates an idea of ​​the enterprise as a patriotic organization working for the benefit of the country, as a reliable and solid partner. The advertisement emphasizes that government and business circles highly appreciate the work of the enterprise and provide it with preferences and benefits for licenses, loans, insurance, etc.

When advertising, a slight exaggeration of the positive properties of the product, silence about its negative characteristics is allowed. However, direct deception of the buyer and consumer is not allowed, which is punishable by the law of the respective countries and falls under the classification of unfair advertising. Advertising that causes material damage or damage to the prestige of competing firms is also considered unfair. For example, it is not recommended to emphasize the shortcomings of competitors' goods and services in an advertisement. Unfair advertising is classified as the use of unauthorized techniques and methods for disseminating advertising information (for example, an ultra-frequent frame recorded by a person's subconscious, etc.).

  • o advertising in the press - placing advertisements in newspapers and general purpose magazines, special industry magazines, company newsletters, directories;
  • o printed advertising - brochures, catalogs, booklets, posters, leaflets, postcards, calendars;
  • o audiovisual (screen) - cinema advertising, slide projection, video advertising, split screen;
  • o television - advertising but television, including widespread "TV Marketing" when a list of goods offered for sale is advertised on a home TV channel, and the buyer can order the goods of interest to him by phone with home delivery, etc.;
  • o radio advertising - advertising broadcast on radio;
  • o outdoor advertising - street advertising, large-sized posters, multi-vision posters, electrified panels with fixed or running inscriptions, outdoor advertising using computer programs, spatial structures. It occupies a special place advertising on transport advertising inscriptions on the outer surfaces of vehicles, printed advertisements in the interiors of vehicles, showcases with goods at stations, etc.;
  • o advertising at the point of sale of goods (merchandising) - shop windows, signs in trading floors, packaging;
  • o souvenir advertising - inexpensive gifts distributed free of charge with the trademark and name (logo) of the enterprise applied to them. As a rule, they differ in attractive consumer properties.

At planning promotional events but a particular product should take into account the stage of the life cycle that this product is going through in the market; consumer requirements; market segmentation and product positioning. Mistakes can lead to the failure not only of promotional activities, but of the entire marketing activity of the enterprise.

  • o the objects of advertising (product or enterprise) and the content of information that must be communicated to active and potential buyers about the product are determined;
  • o the target audience of advertising is determined - its subject or addressee, i.e. a group of consumers and buyers or persons influencing the decision to purchase, which is addressed with advertisements;
  • o the advertising motive is determined - what is emphasized in the advertisement in order to attract the attention of buyers to the product;
  • o types of advertising media are selected and their optimal set and ratio are determined (advertising distribution channels);
  • o an advertising message is compiled - a heading is formulated, a text is compiled, illustrations are determined, characters, advertising media and musical accompaniment are selected;
  • o a schedule of advertising performances is drawn up - promotional events are coordinated in time (by months, weeks, days, hours, minutes and seconds), by types of advertising and means of its distribution;
  • o an estimate of expenses for promotional activities is compiled - the total amount of expenses and expenses are broken down by individual items (special methods and formulas are used);
  • o advertising effectiveness is preliminarily determined - the sales benefits obtained through the proposed advertising campaign are calculated in quantitative terms.

The determination of the types and means of advertising distribution and their optimal combination is carried out in accordance with the objectives of advertising as a whole, as well as with the characteristics of the product, the characteristics of the addressee of the advertisement and the main motives of the advertising message.

The development of a plan for the means used in an advertising campaign and their optimal combination, interconnection, complementarity and mutual reinforcement is the most important task for employees of marketing and advertising services. For example, for advertising industrial goods (machines, equipment, units), the most suitable advertising media is radio, special newspapers, magazines, and not television.

It is necessary to determine the sequence, degree of importance and priorities of various promotional activities, as well as the timing of their implementation.

Drawing up an estimate of the cost of advertising activities and a preliminary determination of advertising effectiveness is the last stage in planning an advertising campaign. When developing an advertising budget, factors that affect its size are taken into account: the volume and size of the intended sales market, the role of advertising in the overall range of marketing activities and the stages of the product life cycle, its differentiation, the estimated sales volume and profit margins, the costs of competitors for similar advertising, their own financial opportunities, etc.

Advertising is an important means of stimulating the sale of goods. From the position of modern ideas, advertising has a multi-purpose character and is used to form a long-term image of an enterprise and its products.

Product promotion is an integral part of marketing and is the activity of planning, implementing and controlling the physical movement of materials and finished products from their places of production to places of consumption in order to meet the needs of consumers and benefit themselves.

Product promotion includes:

Formation of a policy in the field of sales promotion

Product promotion;

Selection, planning and management of sales promotion tools (pre-order sales, advertising and information activities, the art of marketing, packaging);

Coordination of activities of sales agents;

Establishing contacts with the media, advertising agencies;

Development of samples, exhibition materials;

Establishing company relationships with individuals, public organizations, information exchange, etc.;

Advertising of products and activities of the enterprise is the most important part of the complex of marketing activities, its connection with consumers. When properly organized, advertising is very effective and contributes to the rapid uninterrupted sale of products. Advertising is a way of forming a certain idea about the consumer properties of goods and types of services in order to sell them and create demand, a type of communication between the producer and the consumer.

Advertisers include manufacturers and suppliers of goods and services, government agencies, clubs and societies, and individuals - in other words, anyone who wants to communicate something and pay media owners for it. Marketing deals with advertising, the purpose of which is the sale of goods and services, but these principles are equally applicable to government agencies wishing to advertise any public services.

While advertisers may deal directly with media owners, they generally work through advertising agencies. The chart shows different types of agencies, from those who simply charge a commission for providing space or time to the media, to those who offer a full range of marketing, market research, and other advertising services. Depending on the services offered, the agencies have a staff of appropriate specialists (typists, artists, cameramen, printers, etc.). Communication between the agency and its client is carried out through the person responsible for the implementation of the advertiser's goals.

The media are divided into different types: print, audiovisual and street media. Each type differs in its ability to perform a specific advertising task (a specialized magazine gives more detailed information than television, but television will attract the attention of a much larger audience). The choice of the media is made in such a way that it is the most suitable for achieving the purpose of advertising, but at the lowest cost.

Finally, the market itself and its constituent potential buyers must be part of the advertising system. Understanding the buyer, his needs, position and knowledge of what media he prefers, is an essential prerequisite for planning advertisements that will most effectively reach the target consumer.

The tasks of planning advertising campaigns include determining the goals of advertising, probable consumers, product properties, characterizing the media, creative strategy, selecting and evaluating media costs (media planning), ensuring the preparation of advertisements, launching the campaign, analyzing its results.

These goals are closely related to the buyer behavior model.

This model assumes that consumers go through various stages, from “awareness” (of a need), “knowledge” (of a product that will satisfy a need), “liking” and “preference” (for certain brands) to “conviction” (that this particular product is better) and “purchases”. Subsequently, they experience “satisfaction”, which the advertiser seeks to “reinforce”, or “dissatisfaction”, which the advertiser seeks to overcome.

Thus, the advertiser must determine what state his target consumers have reached (through market research, of which the product life cycle concept is a part), and set advertising goals accordingly, that is, in the case of a new product, “awareness” and “knowledge” should be maximized. what it can do, and in the case of an established product, it is necessary to reinforce the “preference” of the brand and “remind” regular consumers of it.

Advertising objectives should be quantified. For example, if an advertiser establishes through market research that 30% of the market is aware of his product and 10% are trying to purchase it, he can define the following advertising objectives: after three months of the campaign, 50% of the market should be aware of the product and 15% should want to her. The success of the campaign will thus be determined by how these goals are actually implemented.

The next step is to identify potential consumers. Having established the objectives of advertising, it is necessary to determine the likely consumers, taking into account their attitude towards alternative media.

The “consumer image” should contain the following data: age, gender, social position (class), income, geographic location, family size, attitude towards the product, company, advertising, etc., reading newspapers and magazines, watching TV shows.

Industrial buyers are divided into three groups: those who influence the purchase, those who think about buying, and those who make the purchase.

For example, technical information about the new machine will be brought to the attention of engineers through specialized magazines, financial information about the machine for financial managers through the business press.

The third stage is the definition of those characteristic properties of the product, which should be reported. These properties may be physical or technical, or (in the case of many consumer products) expressiveness or image. Universal properties (USP - Unique Selling Points) are the basis on which the designer makes illustrations, etc.

An important point in promoting a product for retail consumers is the way in which the product is presented for sale (including packaging, display cases, etc.). For example, own window blocks installed in a store can be a good advertisement.

Sponsorship is becoming more and more popular as a way to promote a product. It involves the participation of the company in the costs of holding a mass event (concert or sports competition). Often the sponsor provides large cash prizes to the winners. Sometimes a sponsor funds teams or individual players.

The goals of sponsorship are:

Good awareness of the product or service;

Associating the image of a sport with products;

Providing awareness not otherwise possible (eg Embusy sponsors a snooker event, achieving wide television coverage even though tobacco advertising is prohibited on television).

For wholesale customers, it would be advisable to use branded souvenirs, mailing promotional and informational letters, holding presentations and press conferences. On the eve of the New Year, we will conduct a mailing of congratulations, which will include:

Postcard in corporate style;

Booklet format A 4, 2 folds, where the company logo, photos of production and products, prices, address plan and other information will be placed.

We entrust the design and printing of products to the printing house Platina LLC, the minimum printed lot is 1000 copies, the prices for these types of work are given in table 11.

Table 11

Prices for printed products

We will make gifts for the heads of construction companies in Krasnoyarsk - pens with company symbols, the minimum circulation is 50 copies. The price of 1 pen is 700 rubles, the application of the corporate logo is 100 rubles, the cost of the batch will be 40,000 rubles.

The total expenses for congratulations for the New Year to corporate clients will amount to 64,000.00 rubles.

During the year, we will provide for the cost of presentations for corporate clients. We will hold 3 presentations a year. The cost of 1 presentation is 87,000.00. It includes the distribution of booklets, souvenirs, a banquet for 20 participants. During the presentation, the leaders of construction companies will get acquainted with the production, learn about the capabilities of the products. The annual budget for the presentation is 261,000.00 rubles.

It is also necessary to participate in industry fairs once a year. The cost of participation in the fair is 120,000.00 rubles.

"Any whim of wood!"

“Wood is GUT, plastic is KAPUT!!!”

"Thick Russian windows"

Under the promotion of goods on the market understand the use of various methods by which the seller can convince the buyer to buy this product. The methods of promotion of goods are:

  • informing consumers about the product (where you can buy the product, what is its price and other information about the characteristics of the product);
  • belief in the merits of the product, motivation to buy this product;
  • product reminder needed to stimulate additional demand.

The following means of promoting products to the market are distinguished:

  1. Personal (personal) sale. It is a regular contact between the seller and the consumer. The seller, when serving the client, must provide him with all the necessary information about the product, about how to use it correctly.
  2. Advertising. It is paid messages about products that are distributed through the media. Advertisements are aimed at calling for the purchase of a particular product. An advertisement consists of two main parts: a text part, and an artistic, graphic part of the advertisement. Advertising must convey the right information, be transmitted a sufficient number of times, promote the sale of products, generate income that covers the costs of its creation.
  3. Public Relations. Good public relations contribute to the success of most firms. That is, it is necessary to maintain good relations with the local population, sponsors, government agencies, and the media. Most consumers prefer firms with a good reputation that have managed to create a favorable image of a respected firm.
  4. Sales promotion. This tool increases the effectiveness of advertising and personal (personal) selling. Sales promotion includes the following activities:
    • rewarding sellers for good work;
    • application of special discounts to the price in case of poor sale of goods;
    • distribution of free samples of new products;
    • free attachment of a small souvenir to the product;
    • organization of exhibitions;
    • issuance of coupons that make it possible to purchase goods at a discount;
    • holding contests and lotteries.
  5. Service. Customer satisfaction, quality customer service can guarantee new orders in the future. Service builds trust in the firm. An example is the establishment of a warranty period for goods, the possibility of returning or exchanging goods, and eliminating a malfunction.
  6. Creating a positive public opinion. This method is a free message about the company or its products through the media. For example, a speech by a company representative on television or radio, a press conference.

Advertising

The manufacturer in a market economy, through advertising and other methods of sales promotion, tries to gain an advantage over competitors. The success of a business is determined not only by the size of the initial capital, but also by the quality of business communications. Types of business communications are very different. This includes: conferences, exhibitions, seminars, presentations, press conferences, interviews, round tables, business lunches, negotiations. But the most basic form of communication is advertising.

Purpose of advertising- increase the market share of the manufacturer of goods and strengthen consumer loyalty to the product. This means that the firm hopes to shift the demand curve to the right and at the same time reduce its price elasticity.

Advertising is any appeal by the manufacturer of the seller or their representatives to a potential consumer-buyer. In the mid-1990s, the advertising market in the United States was estimated at $250 billion a year (it has tripled in the last 10 years); in France at 30; billion dollars (tripling occurred in 7 years); in Russia at $1 billion, but the tripling happened in two years. The turnover of the Russian advertising market in 1996 increased by 10% compared to 1995 and amounted to 1.1 - 1.5 billion dollars. At the same time, the turnover on television reached 344 million dollars, the press accounted for about 700 million dollars, for outdoor advertising about 80 million dollars ("Advertising" Utkin E.A.). In the 2000s and 2010s, these values ​​increased many times over.

There are different types of advertising messages: informational, reminiscent, image. It is also possible to single out social advertising referring to universal human values ​​(preservation of the environment, health, etc.). Informational advertising brings to the attention of the consumer information about the manufacturer, the product and its qualities, how to purchase the product or obtain additional information. The ultimate goal of information advertising is to create or increase sales of products.

  • daily newspapers, which, in turn, can be divided into business, entertainment, central and local; weekly publications are also divided into business, socio-political and thematic;
  • illustrated monthly publications primarily of a popular science or entertainment nature;
  • technical and professional publications;
  • advertising and information publications can be free, have a symbolic or very real price.

The main factors influencing the choice of a publication are the circulation and sales volume, the audience, the image of the publication and its life cycle (for daily newspapers - two days, for weekly publications - 10 days, for monthly - about 50 days), circulation ratio (average number of readers of one copy).

An important place is occupied by advertising on television. The disadvantages of television advertising are that information is poorly remembered, and the abundance of advertising blocks irritates consumers, and this reduces the effectiveness of television advertising. Significantly behind television and radio.

In the last 10-15 years advertising on the Internet has been rapidly developing. Even traditional business like funeral agencies began to be actively promoted in service aggregators. For example, many funeral agencies use the catalog of funeral agencies, some order other types of online advertising. Now on the Internet you can find almost any commercial offer, and in terms of audience coverage, the largest Internet sites are comparable to targeted channels.

Outdoor advertising plays a big role: posters, stands, billboards, scoreboards, as well as direct-mail (direct distribution of promotional materials).

Intermediate between advertising in the media and sales promotion is advertising at the point of sale (PPO), which accounts for an average of 5% of the firm's marketing budget. It covers: the informational activities of the store itself (posters, posters, panels, video cassettes, radio announcements), the methods used by the manufacturer (racks, stands, video systems, carts, smells), joint activities of manufacturers and sellers (staff uniforms, exposition, containers, packages and other packaging materials).

When forming the advertising budget, it includes the costs of creating advertising materials and their placement in the media, as well as the administrative costs associated with this (wages of employees of the advertising department or consultants' fees). In accordance with another approach, a single marketing budget is formed, which includes expenditures on research (about 15% of total expenses on average), sales promotion (about 50% on average), advertising (about 30%) and public relations ( around 5%).

1 - research costs;
2 - the cost of sales promotion;
3 - advertising costs;
4 - public relations expenses.

Distribution channel (sales) - a set of ways to promote goods from the manufacturer to the consumer. Types of distribution channels for goods:
  1. Producer -> consumer. This channel is a direct, direct sale of goods by the manufacturer to the final consumer. For example, a private bakery sells its bread in its own shop.
  2. Manufacturer -> retailer -> consumer. In this case, manufacturers first sell their product to retailers, who then resell the product to the final consumer. Most often, such a channel is used to sell clothes.
  3. Manufacturer -> wholesaler -> retailer -> consumer. Such a distribution channel is suitable for the sale of household appliances.
  4. Producer -> sales agent (broker) -> wholesaler -> retailer -> consumer. This distribution channel is used in those industries in which the sale of goods is carried out by specialists.
The choice of distribution channel depends on the following factors: the number of points of sale of goods, distribution costs, the degree of control over the movement of goods through channels. Distribution channels for goods:

Transport

The distribution of goods includes the following costs: transportation costs, storage costs, administrative costs, other distribution costs.

The cost of transporting products is a significant part of the total cost of distribution. When choosing a mode of transport, the company is guided by the following task - to achieve the most efficient method of distribution as a whole at minimal cost. Transportation can have a significant impact on the sales volume of goods. The faster the company delivers its goods, the greater the advantage it will have over competitors.

There are the following modes of transport:

  1. Freight, automobile. This type is the most commonly used. The advantage of this type of transportation lies in the ability to transport cargo on highways at any time, in the ability to deliver cargo "from door to door". The disadvantage is the inefficiency of transporting heavy and bulky commodities such as metal or coal.
  2. Railway transport. This type of transport is characterized by the ability to carry heavier and more diverse cargoes. But the disadvantage is that it is impossible to deliver goods exactly to the consumer by railroad tracks.
  3. Water transport. This is the cheapest form of transport. This type mainly delivers goods such as oil, coal, ore, cotton and timber. The disadvantage is that the ships are slow and the flights are not frequent. It may also be accompanied by extra costs associated with the delivery of goods to the port, with damage to the goods.
  4. Air Transport. This is the fastest mode of transport. The disadvantage is the restrictions on the size and weight of the cargo. Also, airports are located in certain places, flights depend on weather conditions.
  5. Pipelines. This type of transportation is used to deliver gasoline, natural gas, coal or wood chips in a liquid medium. But this transportation is very slow.

Transport can have a huge negative impact on the environment: the noise of aircraft and cars, the emission of gases, the destruction of forests for the construction of roads, the pollution of the oceans and seas as a result of damage to oil tankers, etc.